The Arkansas Banker April 2019

April 2019

The

Security

Issue Volume CII, No. 4

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©2019 First Tennessee Bank National Association operating as First Tennessee Bank and Capital Bank. Member FDIC.

April 2019 COLUMNS

Volume CII, No. 4 President’s Message

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Lorrie Trogden

Government Relations: Open Comment Periods

5 Minutes with Wayne Goode 8 Meet Your Lawmakers: 10 Attorney General Leslie Rutledge

DEPARTMENTS

THE SECURIT Y ISSUE

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Professional Development Live Events Webinars AmBA Training Industry News

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Member News

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Banker News & Moves

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Common Security Issues in Today’s Banking Environment

Protecting Face to Face 42% Phone Call 5% Your Financial Text 19% Identity Email 34%

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By Donna Dodge

Fax 0%

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A Guide to Performing Internal Social Engineering Testing

Arkansas Bank Face to Face 42% Phone Call 5% Text Security & Fraud 19% Email 34%

By Cole Ponto Outreach

SPOTLIGHT

Introduction to Consumer Lending

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TRID Refresh

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The Arkansas Banker Online

Join us at www.arkbankers.org to read and share statewide banking news!

The Arkansas Banker (ISSN 004-1726) is published monthly by the Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201. Phone: 501.376.3741. Periodical postage paid at Little Rock, AR. Postmaster: Send address changes to Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201. Subscription to The Arkansas Banker magazine is included in the membership fees to the Arkansas Bankers Association. Cover price is $5.95 each. Annual subscription rates are $40.00 for members and $60.00 for non-members.

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Crime Time: 1 Bank Robbery & Burglary Statistics 0

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Creating Cybersecurity Buy-In: Five Ways Face to Face 42% Phone Call 5% Text 19% Email to 34% Bolster Your Bank’s Cybersecurity Awareness

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Fax Random question.19% Phone Call5% Email CLICK HERE0% 34% to take part in Random bankers.

May’s Survey Says Interesting results.

Face-to-face Text Face to Face 42% 42% Phone Call 5% Text 19% Email 34% Fax 0%

SURVEY

SAYS

42%

34%

Face to Face

Email

What form of communication do you prefer?

Face-to-face Text Phone Call Email

5%

Fax

Phone Call

19%

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PRESIDENT’S MESSAGE In the words of Robin Williams, “Spring is nature’s way of saying Let’s Party!” The month of April is full of reasons to celebrate: New travels for the Great Arkansas Road Tour 2019, A trip to Capitol Hill, the state legislative session ends, and our Annual Convention.

Thank you to Randy Scott for arranging it and the group of Northeast Arkansas bankers that met with me in Wilson, Arkansas. What a neat town, and a great group of bankers! I’m also excited that there were bankers present for a UCA Women in Business luncheon this month.

I was honored to be asked to participate as a panel speaker. Now that the state legislation session is ending, I look forward to more road trips around the state and getting your invites.

The state legislation session continued to throw antibanking bills our way. Last month I wrote about SB390, another Senator Kim Hammer bill that would have created a state-run bank under the state Treasurer. This bill was heard in the Senate State Agencies and Government Affairs Committee, and the bill failed due to lack of a motion.

Cathy Owen, Chairman

Eagle Bank & Trust, Little Rock

Rob Robinson, IV, Chairman-Elect Simmons Bank, El Dorado

Jonathan Harrell, Vice Chairman Generations Bank, Rogers

Jim Cargill, Treasurer Arvest Bank, Little Rock

Dave Dickson, Past Chairman Union Bank & Trust Co., Monticello

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

The next bad bill to come our way was SB588, a Senator Gary Stubblefield bill, which would have repealed Act 13 – the right to waive a jury trial in contracts for lending money. This Act was passed in the 2018 special session. Jury trial waiver provisions have long been used by banks and other lenders and have proved efficient in resolving disputes over unpaid debts. They also reduce the time it takes to resolve the dispute and save money in conducting the dispute, as well as avoiding backlogs in our court system based on the inability to try cases by the judge.

As you know, when lenders are forced to litigate these issues before juries, costs go up and those costs impact borrowers. This bill ran in the Judiciary Committee and the bill failed on a voice vote. Thank you to Hunter Wilson and Johnny Adams who both testified twice on this bill.

The bill ran a second time in a committee meeting while many of us were in DC, and the bill failed again on a voice vote.

There were several other bills that we asked sponsors to make language amendments on and they were all very gracious in making the changes requested. All in all, it has been a very successful session for us, and I am very grateful for all of you that took time to contact your local legislators many times and to come to the Capitol repeatedly to testify. It is because of you that we had an impact on this session!

We also had a productive trip to DC for the Washington Summit, including visits with our congressional delegation and their financial liaison staff members. There were 11 in our group, including State Bank Department Commissioner Franks and two of her Deputy Directors.

Check out the Government Relations section of the magazine for details about the issues we spoke about. Please consider joining us for our next trip in October. This trip includes regulator/ agency visits along with our congressional delegation.

As I write this, our Annual Convention is next week. It has a great line up, and I look forward to sharing that success story with you next month. In the meantime, the many April showers we have experienced should bring us lots and lots of May flowers! I look forward to getting back on the road and I’ll see you soon!

Lorrie Trogden | President & CEO Arkansas Bankers Association

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ABA OFFICERS

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BOARD OF DIRECTORS Johnny Adams, Conway Craig Attwood, Pine Bluff Jeff Brecklein, Jonesboro Chip Blanchard, Russellville Gene Crawford, Batesville David Dowd, Wynne Don Gibson, Springdale Chris Gosnell, Magnolia David Jessup, DeWitt Lance Lanier, Van Buren Barry Ledbetter, Little Rock Wilson Moore, Little Rock Marnie Oldner, Little Rock Mark Roberts, Malvern Lori Ross, Arkadelphia Randy Scott, Blytheville Jason Tennant, Eureka Springs Lynn Wright, Little Rock

ABA PROFESSIONAL DEVELOPMENT

LIVE EVENTS Providing you with face-to-face interaction with expert instructors!

MAY 2019 Call Report Preparation: An Update and Review May 8, 2019 | Arkansas Bankers Association Who should attend: Call Report Preparers, Call Report Reviewers

Key Ratio Analysis May 16, 2019 | Arkansas Bankers Association Who should attend: Commercial Lenders, Credit Analysts, Credit Administrators

TRID Refresh May 14, 2019 | Arkansas Bankers Association Who should attend: Compliance and Loan Officers, Auditors, Loan Managers

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JUNE

JULY

Intro to Consumer Lending

11 Introduction to Universal Banking

Advanced BSA Brush-Up

22

Business Development for the Bank Officer

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Hot Topics for Bank Boards

12-13 CBCM Certification

AUGUST

21 Opening New Accounts:

Documentation & Compliance 26

Compliance School

24 Cybersecurity

SEPTEMBER

25-26 Call Report Preparation

2-3 8-9

OCTOBER IRA School

Mega Conference

NOVEMBER

13 Lending Compliance Update

22-23 Supervisor Boot Camp

For more information about ABA Live Events, log on to www.arkbankers.org or call 501.376.3741.

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GOVERNMENT RELATIONS During this year’s ABA Washington Summit, over 1,300 bankers marched to the Hill to visit congressional delegates. While a variety of issues came up organically in our conversations, below are brief summaries of the top pressing issues in the banking industry. Look for a link to the full document on our website

I. MODERNIZE ANTI-MONEY LAUNDERING/ BANK SECRECY ACT LAWS Banks play a critical role in helping law enforcement combat money laundering, terrorist financing, human trafficking, and more. Congress can help banks be even more effective in fighting money laundering and terrorist financing by updating the AML/BSA regime to make it more efficient. The basic AML/BSA compliance structure has not changed since 1970, even though banking law enforcement and technology have changed dramatically. ABA urged Congress to reform these areas: customer due diligence, currency transaction reports (CTR), and information sharing between financial institutions.

II. ESTABLISH STRONG, CONSISTENT NATIONAL DATA SECURITY AND PRIVACY STANDARDS Since data security breaches continue to put millions of consumers at risk, protecting consumer information and the privacy of personal information is a shared responsibility of all parties involved. While robust federal data security and privacy requirements for banks have been in place for over 20 years, other business sectors lack comparable requirements and have been the source of many large-scale breaches. To help consumers understand their rights and responsibilities, transparency is important and a national standard that preempts state and local data protection standards is essential.

ABA supports legislation to protect consumers that includes the following elements: a national privacy standard, strong data protection and breach notice for all entities that handle personal information, and a robust enforcement of national standard with clear preemption of state privacy and data security laws.

III. RESOLVE THE FEDERAL-STATE CONFLICT ON CANNABIS BANKING Banks are in the untenable position of either potentially violating federal law or refusing services to a significant legal sector of their local economies. But excluding the cannabis industry from the banking system has serious consequences for the communities where they operate. Cannabis businesses are handling increasingly large amounts of cash—even paying their state taxes and licensing fees in cash—creating public safety and supervisory concerns. Permitting cannabis businesses to use the banking system would improve the safety, regulation, transparency and accountability of the industry.

IV. DELAY AND STUDY CURRENT EXPECTED CREDIT LOSS (CECL) STANDARD Upfront loss recognition required by CECL will require more capital at the time of origination, fundamentally changing the economics of lending and potentially increasing the cost to consumers of longer-termed products. The required effective

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date should be delayed until a quantitative impact study can be completed to assess the impact throughout a lending cycle.

V. CONTINUE BIPARTISAN PROGRESS ON REGULATORY REFORM We urged Congress to consider targeted legislation that will provide relief and funding options to financial institutions, including measures that would: empower regulators to tailor regulatory actions so that they apply only when required by the bank’s business model and risk profile; establish an independent examination review process to ensure consistency of bank examinations; provide more flexibility for the treatment of brokered deposits.

VI. STOP THE SPECIAL TREATMENT OF CREDIT UNIONS Credit Unions are increasingly buying small banks to expand, leveraging their tax exemption to permanently remove taxpaying entities from the tax rolls. As credit unions move from church basement to conglomerate, Congress should ask if the tax exemption for the largest credit unions still makes sense.

ABA urged Congress to: remove the tax exemption for all credit unions above $1 billion in assets; require credit unions to file the same salary and compensation disclosures as any other not-forprofit; require credit unions to demonstrate they serve low- and moderate-income communities.

VII. LEVEL THE PLAYING FIELD WITH THE FARM CREDIT SYSTEM If the FCS were a bank, it would be the seventh largest in the country. But as a GSE, it does not pay taxes at the same rate as banks. ABA urged members of Congress to: support H.R. 1872, the Enhancing Credit Opportunities in Rural America (ECORA) Act, to remove the taxation on interest from agricultural real estate loans, giving rural banks the same tax status as the FCS when making farm real estate loans; help farmers and ranchers create equalization among all lenders to agriculture; provide long overdue solutions to the unfair playing field between banks and FCS.

ABA PROFESSIONAL DEVELOPMENT

MAY 2019 Controlling the Risks of Power of Attorney Documents

May 1, 2019 10:00 a.m. – 12:00 p.m.

Mortgage Origination Compliance: Part II

Train multiple employees for one price, from the convenient location of your bank!

Equipment Lease Financing

May 7, 2019 10:00 a.m. – 12:00 p.m.

New Federal Overtime Regulations – What You Need to Know

May 1, 2019 1:30 p.m. – 3:30 p.m.

May 7, 2019 1:30 p.m. – 3:30 p.m.

FFIEC Mobile Services Guidance Review

Lessons Learned: Recent Lending Compliance Enforcement Actions

May 2, 2019 10:00 a.m. – 12:00 p.m.

20 Legal Account Ownerships, Titles, Sample Signature Cards and Legal Documentation

May 2, 2019 1:30 p.m. – 3:30 p.m.

FDCIA – An Acquisition Away

May 2, 2019 2:00 p.m. – 3:00 p.m.

Loan Participations: What You Should Know May 3, 2019 10:00 a.m. – 12:00 p.m.

Negotiation Skills for the HR Professional

May 3, 2019 10:00 a.m. – 11:30 a.m.

Introduction to Consumer Lending

May 6, 2019 1:30 p.m. – 3:30 p.m.

May 8, 2019 10:00 a.m. – 12:00 p.m.

Lending 101

May 8, 2019 1:30 p.m. – 3:30 p.m.

Recipe for an Effective Sales Environment May 9, 2019 2:00 p.m. – 3:30 p.m.

Introduction to ACH: The Basics May 10, 2019 1:30 p.m. – 3:30 p.m.

Advanced Commercial Loan Documentation May 13, 2019 1:30 p.m. – 3:30 p.m.

OFAC: Can We Comply?

May 14, 2019 10:00 a.m. – 12:00 p.m.

Customer Service vs.

Customer Experience May 14, 2019 1:30 p.m. – 3:30 p.m.

WEBINARS Opening Accounts for Marijuana Related Businesses May 15, 2019 10:00 a.m. – 12:00 p.m.

Handling Loan Applications: What Can Go Wrong?

May 15, 2019 1:30 p.m. – 3:30 p.m.

Elder Financial Exploitation May 16, 2019 1:30 p.m. – 3:30 p.m.

Call Center Representative Training May 20, 2019 1:30 p.m. – 3:30 p.m.

BSA/AML for Lenders May 21, 2019 10:00 a.m. – 12:00 p.m.

Developing a Strong Enterprise-Wide Risk Assessment for your ERM Program May 21, 2019 1:30 p.m. – 3:30 p.m.

Loan Documentation for Secured Commercial Lending Transactions May 21, 2019 2:00 p.m. – 3:30 p.m.

Third Party and Fourth Party Management

May 22, 2019 10:00 a.m. – 12:00 p.m.

CRE Lending: Cash Flow Analysis & Cap Rates

May 23, 2019 1:30 p.m. – 3:30 p.m.

You’re the New Supervisor!

Fasten Your Seatbelt!

May 28, 2019 10:00 a.m. – 12:00 p.m.

For Bank Managers: Hire Your Next Banking Sales Superstar May 28, 2019 1:30 p.m. – 3:30 p.m.

Living Trust Documents May 29, 2019 10:00 a.m. – 12:00 p.m.

Audit Report Writing May 29, 2019 1:30 p.m. – 3:30 p.m.

CECL Methodology: The New Accounting Standard

May 30, 2019 10:00 a.m. – 12:00 p.m.

FDIC INTREx Work Program

May 31, 2019 10:00 a.m. – 12:00 p.m.

For more information about ABA Webinars, log on to www.arkbankers.org or call 501.376.3741.

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5 MINUTES WITH

WAYNE GOODE

Corporate Physical Security Officer of First Financial Bank in El Dorado

What is the best part of being a hometown banker?

Community involvement for me is the best part of being a hometown banker. Our marketing team does a wonderful job of reaching out to our communities and sponsoring various events throughout the year.

What would be the title of your autobiography?

Give us a little background on yourself: I have been married 29 years come this June. I have two grown kids and the smartest granddaughter in the world. I retired from the Marines in 2010 and hired on with the Union County Sheriffs Office where I spent the next seven years as a Patrol Deputy and Detective. I left the UCSO full time in February of 2017 to accept my current position as the Physical Security Officer for First Financial Bank.

What is the most interesting aspect about working in security?

I find bank security interesting mainly because there are so many different aspects to this job and it keeps expanding. I still work some of the same cases I worked as a detective but there are also bank specific cases as well. I enjoy learning so the move from law enforcement to bank physical security definitely has allowed me to learn something new.

What do you feel is the most commonly neglected security issue that banks face?

Crime Prevention Through Environmental Design (CPTED) in my opinion is the most neglected issue banks face. When we think of bank security, we all go straight to alarms and cameras. What we sometimes forget is that air conditioning unit, that beautiful 10 foot Crepe Myrtle, or that nicely manicured hedge positioned near an entrance is a great hiding spot for criminals.

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Not real sure my life would be interesting enough for an autobiography, but if I had to choose a title, it would have to reflect my 30 plus years of serving the public as a Marine and a Law Enforcement Officer.

ABA PROFESSIONAL DEVELOPMENT

AmBA TRAINING

AmBA Training includes extensive learning opportunities suited to specific job roles, in both facilitated and self-paced online formats, as well as in person. Flexible and cost-effective, AmBA’s online training opportunities are continually updated to provide a superior learning experience that can be accessed from anywhere, at any time.

UPCOMING COURSES Building Customer Relationships 4/1/2019 - 4/26/2019

Fundamentals of Mortgage Lending 6/17/2019 - 7/26/2019

Building Customer Relationships 8/5/2019 - 8/30/2019

Consumer Lending 4/8/2019 - 7/26/2019, 10/11/2019

Introduction to Trust Products & Services 6/17/2019 - 7/19/2019

Basic Administrative Duties of a Trustee 8/5/2019 - 9/6/2019

The Banking Industry 6/24/2019 - 7/19/2019

CTFA Exam Online Prep 8/5/2019 - 10/25/2019

Consumer Lending 6/24/2019 - 1/11/2019

Managing the Bank’s Investment Portfolio 8/5/2019 - 9/6/2019

Managing Interest Rate Risk 4/8/2019 - 5/31/2019 The Mortgage Lending Business 4/8/2019 - 5/17/2019 Basic Administrative Duties of a Trustee 4/15/2019 - 9/06/2019 The Banking Industry 5/6/2019 - 7/19/19 Analyzing Bank Performance 5/13/2019 - 6/28/2019 Bank Lines of Business 5/20/2019 - 8/16/2019 Building Customer Relationships 6/3/2019 - 8/30/2019 Marketing in Banking 6/3/2019 - 6/28/2019 Managing Funding, Liquidity, and Capital 6/10/2019 - 7/12/2019

Money and Banking 6/24/2019 - 10/11/2019 Intro to Agricultural Lending 7/15/2019 - 9/6/2019 Legal Foundations in Banking 7/15/2019 - 9/20/2019 Marketing Planning 7/15/2019 - 8/9/2019

CRCM Exam Online Prep 5/10/2019 8/12/2019 - 10/18/2019 Marketing Management 8/26/2019 - 9/20/2019 IRA Online Institute 9/2/2019 - 11/24/2019

Bank Lines of Business 7/22/2019 - 8/16/2019 General Accounting 7/22/2019 - 11/8/2019 Analyzing Financial Statements 7/29/2019 - 11/22/2019

For more information about AmBA Training, log on to www.arkbankers.org or call 501.376.3741.

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MEET YOUR LAWMAKERS...

ATTORNEY GENERAL LESLIE RUTLEDGE What concerns do you hear most expressed from Arkansans? (Overregulation, robocalls & PBMs) Since taking office in 2015, I have reached almost 100,000 Arkansans during roundtables, mobile offices, and other training events hosted by my office. These face-to-face meetings give me the opportunity to hear directly from Arkansans about what my office can do to better serve them.

From day one, Arkansans expressed concerns with the ability to financially take care of their families, especially those running a small business. Overlyburdensome regulations made it

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hard to keep their company running a profit, which can create problems and uncertainties for their employees.

Simply put, these hardworking Arkansans just want to make sure their business and employees are able to pay bills and put food on the table. I heard Arkansans concerns and went directly to the source, fighting back on the Consumer Financial Protection Bureau’s (CFPB) overreaching regulations, sitting down with the former director to discuss how cumbersome laws have made it hard for good tax-paying companies to stay afloat.

What qualities make Arkansas a good place to do business?

Low tax rate, military friendly, spirit I am constantly reminding Arkansans of the job creating environment we have enhanced in our great state. Not only am I proud to lead the state as the chief legal officer against federal overreach which directly harms businesses’ ability to grow and create more jobs, but I also work directly with our governor and legislators to address policies that could impact businesses to ensure we are

making prudent long-term decisions.

Arkansas is prime for economic development through innovation, technology and our agriculture base.

Recent cuts to income taxes and the implementation of tax benefits for our activity duty military and veterans has made The Natural State more competitive with states in the region to attract more of our nation’s heroes to live and work here. Arkansas is filled with hardworking, skilled laborers who love their families and communities.

By refocusing our education efforts, we are graduating more students ready to enter the workforce on day one at highly technical jobs including computer coding.

What role does the banking industry play in the overall economic success of Arkansas?

Bankers are at the very heart of economic success. As Attorney General, I have fought to ensure that bankers are allowed to bank and make investments in our communities by allowing our entrepreneurs have the opportunity to develop. Businesses in Arkansas are thriving and whether it’s financing an expanding business or managing resources and investments, banking plays a vital role in Arkansas’s economy.

Members of the ABA understand how

important is that when clients succeed it only strengthens the larger industry.

One way to contribute to keeping businesses viable has been to combat the overreaching federal government of the previous administration. During my administration, I have had to push back against the unconstitutional Consumer Financial Protection Bureau, the Department of Labor’s overtime rule, and the EPA’s overreaching Waters of the U.S. From an economic standpoint, what is the major focus of the session?

And, what can we expect to see results from this focus? Priorities?

In addition to tax cuts, another issue I hear when traveling the state is how frustrated Arkansans are with the highways and roads. The public’s safety is obviously our number one concern and infrastructure plays a critical role for productivity and economic growth.

Likewise, ensuring that we maintain low utility costs and improve broadband coverage will ensure more Arkansans are able to work and raise families in their hometowns.

What is the best way for individual bankers to let you know their views on legislation that affects your constituent’s?

Input from business leaders is vital to better understand the needs of our growing state. I ask anyone with policy concerns or questions to contact me or anyone at my office directly. When I met with the two of the former directors of the CFPD (Richard Corday and now Chief of Staff to the President Mick Mulvaney), it was the insight and expertise of many banking leaders who were able to provide me with real-world experience and the impacts of the difficult policies making it cost-prohibitive for many of our local banks to effectively operate.

What is your most proud of regarding your leadership in the state of Arkansas?

During my first term in office, we have held criminals accountable, gone after con artists, and pushed back against an overreaching federal government.

Bringing common sense and practical solutions to our state leadership is how we open doors to more businesses and broaden our workforce. During the first four years, we have also had a record number of Medicaid fraud arrests and convictions, which is another way we are protecting our tax dollars for those who truly need the assistance.

What are the last two books you’ve read? And the last two movies you’ve seen?

Unbroken (the story of Olympian and WWII hero Louis Zamperini) Scalia Speaks: Reflections on Law, Faith, and Life Well Lived Movies: The Green Book Megan Leavey

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Protecting Your Financial Identity Identity theft continues to be one of the fastest growing crimes in the United States. On average, an American falls victim to identity fraud every two seconds. Follow these tips to keep your information – and your money – safe.

Don’t share your secrets. Don’t provide your Social Security number or account information to anyone who contacts you online or over the phone. Protect your PINs and passwords and do not share them with anyone. Use a combination of letters and numbers for your passwords and change them periodically. Do not reveal sensitive or personal information on social networking sites.

Shred sensitive papers. Shred receipts, banks statements and unused credit card offers before throwing them away.

Keep an eye out for missing mail. Fraudsters look for monthly bank or credit card statements or other mail containing your financial information. Consider enrolling in online banking to reduce the likelihood of paper statements being stolen. Also, don’t mail bills from your own mailbox with the flag up.

Use online banking to protect yourself. Monitor your financial accounts regularly for fraudulent transactions. Sign up for text or email alerts from your bank for certain types of transactions, such as online purchases or transactions of more than $500.

Protect your mobile device. Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. Before you donate, sell or trade your mobile device, be sure to wipe it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. Use caution when downloading apps, as they may contain malware and avoid opening links and attachments – especially for senders you don’t know.

Report any suspected fraud to your bank immediately.

What to Do if You Are a Victim Call your bank and credit card issuers immediately so they can close your accounts.

Contact the fraud unit of the three credit reporting agencies. Place a fraud alert on your credit report and consider placing a credit freeze so the criminal can’t open new accounts. The fraud unit numbers are:

Equifax: (800) 525-6285

Experian: (888) 397-3742

TransUnion: (800) 680-7289

Monitor your credit report. Order a free copy of your credit report every four months from one of the three credit reporting agencies at annualcreditreport.com.

Report the fraud to the Federal Trade Commission at 1-877-IDTHEFT (1-877-438-4338).

Protect your computer. Make sure the virus protection software on your computer is active and up to date. When conducting business online, make sure your browser’s padlock or key icon is active. Also look for an “s” after the “http” to be sure the website is secure.

Make sure to maintain a log of all the contacts you make with authorities regarding the matter. Write down names, titles and phone numbers in case you need to re-contact them or refer to them in future correspondence.

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File a police report.

How can you improve bank exams?

TRANSPARENCY. ACCOUNTABILITY. PREDICTABILITY. Tired of exam surprises?

By taking our survey you are providing anonymous feedback that will be used to hold regulators to consistent standards.

More than 2000 bankers have already participated.

Take a stand. Take the survey.

Arkansas Bankers Association a proud member of

Take the RFI survey at www.allbankers.org *

*RFI = Regulatory Feedback Initiative

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Common Security Issues in Today’s Banking Environment

By Donna Dodge Arkansas State Bank Department

As we conduct information systems examinations of our state chartered banks, we find many of our institutions are challenged by similar circumstances while developing, maintaining, and monitoring a secure technological environment. Time, money, and expertise play a significant role towards ensuring proper information and data security controls are in place. Without these elements, our institutions struggle to effectively establish, monitor, and report on controls.

Regardless of a bank’s infrastructure or approach to security, a lack of time, money, and expertise can and will eventually create security issues. Common threads we continue to see surround the establishment or maintenance of proper controls for hardware and software inventory, patch management, user access, vendor management, and wire transfer.

Let’s begin with hardware and software inventory. Having a comprehensive authorized hardware inventory allows banks to manage all devices requesting access to their network. If managed properly, institutions would know when a rogue device attempts to connect to the network and have the ability to deny this connection. Having a comprehensive authorized software inventory list gives institutions the ability to only allow authorized software to be installed and executed within the bank’s environment. Without these inventories, bank management will run into additional issues, most importantly end-of-life management and legal penalties for software licensing violations. Knowing what is in the environment is the first critical step, actively managing and tracking hardware and software is the next step.

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Another commonly identified issue is poor patch management practices. Patch management of third party applications (e.g., Java, Adobe) is still a struggle for some banks, but these applications are just as important as Microsoft Windows. A quick google search for “most vulnerable software in 2019” provides a myriad of results, the first being a list of the Top 50 products having highest number of Common vulnerabilities and Exposure (CVE) security vulnerabilities (www.cvedetails.com/top-50-products. php?year=2019). The first five on the list as of March 25, 2019, were Adobe, with 87 “distinct” vulnerabilities. Adobe isn’t the only vulnerable software; this is just an example to show third party applications require just as much attention as the operating system itself.

Next, we find ourselves in the land of user access where we can run into an abundance of issues. Some of the problematic practices are: excessive access rights (access is not role based); use of generic usernames; sharing of user accounts, both administrator and regular users; logging in with administrator credentials for everyday use; access rights for employees no longer with the institution; non-existent or inconsistent user access reviews, etc. While there are circumstances where user access exceptions are warranted, these should be risk assessed, documented, and effectively communicated and approved by the board. With so many potential areas of exposure within user access, periodic enterprise-wide user access reviews are a must and should include administrative access rights to all applications.

As we discussed earlier, time, money, and expertise are key elements to building a secure environment. Many of our institutions cannot recruit or afford to hire experienced IT

personnel, so we find them outsourcing their network security and network management to a third party. For some, this is the best option. Receiving 24/7 security monitoring from a group of knowledgeable IT professionals is priceless. However, there is a common phrase in outsourcing, “you can outsource the work, but you cannot outsource the risk.” It is common to see our banks struggle when maintaining a third party relationship. While the vendor is paid for their expertise, it is still the bank’s job to know the who, what, when, where, and how of the work being performed. An open line of communication between the bank and the vendor is the only way to stay aware of the institution’s current state of security.

Finally, the last most commonly identified issue surrounds wire transfer. Many wire transfer issues can be traced back to excessive limits, poor user access controls, or lack of formal procedures. It is very common to find excessive and sometimes even unlimited dollar limits. This happens because there’s that once per year $15 million dollar wire or the system was set up using the defaulted amount setting of $99,999,999.00 and was never changed. Outside of dollar limits, settings forcing dual control could be nonexistent, giving a single individual the ability to initiate and send wires. It is up to the institution to have a formalized policy in place with reasonable wire limits and dual control procedures that is reviewed and approved by the Board.

With all that being said, the Arkansas State Bank Department acknowledges that information security is a fluid and challenging area of risk for our institutions and each examination will likely identify new risks and areas for enhancement in a bank’s information systems and security environment. Having enough time, money, and expertise is an ongoing battle and we take that into account each time we perform an Information Systems examination. We can very proudly say that even though issues like the ones described above are commonly identified, the awareness and efforts from our bankers to build strong information security programs and deploy information technology continues to positively evolve.

Donna Dodge is a Commissioned Senior Examiner in the Information Systems examination group and has been with the Arkansas State Bank Department for over five years. Prior to becoming an examiner, she worked in community banking for seven years where she promoted business banking products and oversaw the daily activity related to online banking, ACH, wire transfer, remote deposit capture, and ATM/Debit cards.

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When you’re looking to reduce risk, stay compliant and meet shareholder goals, our constructive, capable pros can help you lay the groundwork for your next booming success.

Everyone needs a trusted advisor.

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bkd.com/fs | @BKDFS April 2019

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A Guide to Performing Internal Social Engineering Testing

By Cole Ponto

SOCIAL ENGINEERING TARGETS EMPLOYEES Social engineering can be defined as the art of exploiting the human in order to gain access to a network, system, or valuable information. Social engineering comes in many different forms: it can be performed via email, over the phone, or even in person.

The different varieties of social engineering used by scammers can make training employees effectively a difficult task.

To protect the business from these types of threats, organizations need to make sure their employees are properly trained in identifying and preventing a social engineering attack. Training is a great way to inform employees on the policy implemented by the organization and also go through some of the new and common social engineering methods that are being used every day against all types of people.

So how do we really ensure our employees are knowledgeable enough to identify and mitigate a social engineering attack?

The quick and easy answer is to test your people.

TESTING YOUR EMPLOYEES The only real way to ensure your training is working is to actually put your employees to the test. Social Engineering testing allows you to see where your employees are weakest, while simultaneously giving them the opportunity to get real-life experience with threats. The testing results will clearly show management where their greatest human weakness lies and what needs to be the focus of additional training.

The issue with Social Engineering testing is that it can get expensive to have a company perform employee testing regularly throughout the year. However, testing more than

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once a year is certainly proven to be a beneficial way to keep employees alert and hold them responsible for their actions.

Since hiring regular Social Engineering testing throughout the year is not an option for everyone, let’s go through some options for performing your own internal Social Engineering testing to bridge the gap between those annual third-party performed tests.

OPTION #1 – DUMPSTER DIVING Dumpster diving is a test that takes very few resources and little time, yet can be a great way to test employee compliance to sanitation and disposal guidelines. All that needs to be done to perform your own dumpster diving test is to go around the building and gather trash at all or select locations.

Grabbing trash before it makes it to the dumpster is a good way to mark where each bag came from, giving management the opportunity to have one-on-one follow up training with non-compliant employees.

Remember, if it’s in the trash outside, anyone can get to it. That includes employees, competitors, potential attackers, or even the local news crew looking for a story (we’ve seen this happen).

Items to look for will include anything breaking sanitation requirements. Examples may include: Hand-shredded Checks Hard Drives Credentials Social Security Numbers Customer Information USB Drives Confidential Internal Information

OPTION #2 – PRETEXT PHONE CALLS Pretext phone calling is another option that can be used to test employees, specifically regarding how good your employees are about protecting information while on the phone.

Start by gathering relevant information. Since this is an internal test, you will likely have more information on hand than a typical third party performing the test, including direct phone numbers, names, and job titles. However, to add a little realism into the test, you can use the information you are able to find on the internet through some simple searching.

Gathering publicly-available information is important for the follow-up conversation you have with employees that fail the test. Showing employees how easy it was to find the information that was used can have a significant impact on how they handle future interactions with callers.

The next step is to build your story, which is the “pretext” part of a pretext phone call. You do not have to have a word-for-word conversation prepared, but you do want to have your story down ahead of time to convince the employee to give out information while ignoring the correct procedure. Make sure to note your goals before you begin the pretext. Have the information you’re are aiming to receive figured out, but if everything is going smoothly (from your end), you can always try to escalate to get more information if the target is willing. Treat the test as a bad guy would and see what information you can get.

Finally, fine tune your approach. A common method for social engineers to incorporate in their phone call is a spoofed phone number. You do not want improper area codes, phone numbers, or even your name and personal cell number popping up when impersonating a person or company.

Employing a phone number spoofing application, website, or service may be crucial to the success of your test. The good news is that spoofing services are not difficult to find.

They are littered throughout the app store for any make of smartphone, and there are also spoofing tools available for your computer. Simply search your app store of choice or do an internet search for “caller ID spoof” or “phone spoofing.”

Be sure to do a bit of research on any tool you use or app you download. Some social engineering or “hacker” tools may not be reputable or might include some unwanted features, like malware or data collection

There are inexpensive business tools made available to help you perform your own phishing tests using templated or customized emails, while also having additional training available created by experts in the field. Adding in some automation really helps you with phishing as it is incredibly beneficial for employees to see these tests regularly. Using these tools can allow you to send these out as often as you would like with very little administrative work. Not to mention the added value of additional training material, which is incredibly useful for follow up training.

THE FOLLOW-UP IS THE MOST IMPORTANT STEP It is important to remember that there will inevitably be failures when testing employees. This is why Social Engineering testing is so useful – it allows your organization to identify weaknesses and plan to make improvements. Followup discussions with employees – those that passed and those that fail - is perhaps the most important part of your testing.

The key to your follow-up is to make sure employees know what they could have done better and encourage questions.

As mentioned above, the goal is to help your employees improve your defenses, not to trick them or scare them into submission. Scaring employees into hiding failures is a way to miss actual attacks or mistakes, whether it’s a suspicious attachment that was downloaded or a suspicious link that was clicked. If employees are afraid to say something, the attachment they downloaded and opened could lead to your entire network being breached simply because it was not reported, and you did not have the opportunity to respond.

There’s a fine line between scaring employees and holding them accountable, however. Holding employees accountable is something that is absolutely necessary. You do not want to put the business and its customers at risk simply because someone does not care or could not be bothered to pay attention during training.

Make sure you focus your testing on helping employees learn and provide them with the tools to improve. Your employees can be your greatest weakness or a strong first-line-ofdefense. If you equip them properly, you will be surprised by how dedicated to the task they can actually be.

OPTION #3 – PHISHING EMAILS The third option may not be the easiest option to build out yourself, but it’s probably the most important aspect of testing. Phishing is by far the most common and successful form of social engineering, which means it’s also the most dangerous for businesses. The good news here is that because of its widespread impact, we have more options than any other type of social engineering to help us with testing.

Cole Ponto is an Information Security Consultant for SBS CyberSecurity Cole has over four years of IT Auditing, Consulting, and ISP development experience. He is the Certified Banking Business Continuity Planner (CBBCP) Instructor for the SBS Institute.

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Arkansas Bank Security & Fraud Outreach Building a Local Network to Reduce Fraud

The Arkansas Bank Security & Fraud Outreach service is an investigative and fraud sharing information network designed to help Arkansas Bank Security Officers detect, discuss, and hopefully prevent, financial fraud. This service is a free networking opportunity for Arkansas bankers who would like to connect with colleagues within the industry in an effort to identify, prosecute and reduce fraud losses.

The Arkansas Bank Security & Fraud Outreach service is part of 3VR CrimeDex, which is used by over 2,500 members including law enforcement agencies, banks, and retailers. The service provides a platform to share information and collaborate to reduce crime and fraud in our communities and industry.

If you would like to be part of this group, please follow the instructions below: 1. Go to www.crimedex.com 2. Click the “Join Now” button 3. Complete the sign-up form: Click the radio button for “Group” Type “Arkansas” in the “Type to begin search” box Highlight “Arkansas Bank Security & Fraud Outreach” Click “Select Group,” and then click “Next” 4. After your application is approved, a confirmation will be sent to you via email. This may take a day or two as all members are individually verified.

If you are already a CrimeDex member, but not in the Arkansas Bank Security & Fraud Outreach group, send an email to matthew.gill@legacyar.com and you will be invited into the group portal.

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Crime Time

Bank Robbery & Burglary Statistics

*

3,937

20%

total number of annual bank robberies, burglaries, and larcenies

1,266

California tops the list, reporting

incidents in the Southern Region

of the nation’s bank robberies, burglaries, and larcenies

incidents reported in Arkansas

10%

of incidents took place on a Friday 784

741

688

675

662

21

330

57

27%

Mon

Tues

Wed

6:00­p.m.–6:00 a.m. 6:00­–9:00 a.m.

90 292

of identified assailants were previously convicted of bank robbery, burglary, or larceny

36

%

3:00­–6:00 p.m.

1,010

were determined to be users of narcotics

9:00­–11:00 a.m.

903

Thu

Fri

Sat

Sun

26%

of incidents took place between 3:00-6:00 p.m.

11:00 a.m.­–1:00 p.m.

852 1:00­–3:00 p.m.

787

Security Devices Used During Crimes

3,888

1,556

510

83

surveillance cameras activated

incidents in which bait money was taken

currency dye/gas packs taken

access-controlled entryway

alarm systems activated

incidents when guards were on duty

electronic tracking devices activated

man traps activated

3,688

235

586

49

* Statistics from the Federal Bureau of Investigation 2017 Bank Crime Statistics Report.

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Creating Cybersecurity Buy-In: Five Ways to Bolster Your Bank’s Cybersecurity Awareness

By Emily Larkin

For many financial institutions, information security awareness programs are a regulatory requirement.

However, requirement does not equal enjoyment by any means: They represent a significant pain point for most and are frequently seen as an annual obligation. Their value is often difficult to quantify; thus they get little funding or attention. Once implemented, these programs mount an invaluable defense against internal and external cyber attacks.

Options abound to pay for security awareness materials or consultants to deliver them—but that only covers part of the challenge. How do you embed information security into your culture? How do you get buy-in across departments and leadership? Getting started is often the hardest part for financial institutions. Below are five proven ways to kick up buy-in and acceptance:

1

START AT THE TOP

Board and executive buy-in as part of a successful information security awareness program are a given. However, this can pose challenges in some financial institutions. Find what drives your leadership team—which is revenue in most cases. Then, get the board’s sign off by outlining the potential economic impact of a cybersecurity breach. This is not a scare tactic but a reality check and an education for those focused on growth and financials. Many assume information security lives with the IT team and that strong firewalls will protect the company. A focused 15-minute presentation on risks and vulnerabilities at the employee level will quickly inform executive and board perceptions. This presentation could outline: regulatory requirements for an information security program the average cost of a breach the reputational risk, and examples of the current vulnerabilities within your institution.

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2

MAKE INFORMATION SECURITY PART OF EVERY EMPLOYEE’S ONBOARDING

A formal introduction to an information security team member and handson training will go far. This gives new employees a face and person to link with the information security program.

Make sure information security awareness permeates company culture.

Encourage new employees to report any suspicious activity and review the protocol for reporting potential incidents. Explain and reinforce that no question or incident is too minor to report. Lastly, take employees by the information security office—and introduce them to the team. Demystify information security and make it part of the welcome package. Employees will appreciate meeting new people and better understand information security’s importance at your institution.

3

PUT INFORMATION SECURITY ON THE AGENDA AT STAFF AND TEAM MEETINGS

Speaking to and sharing news with a captive audience creates positive energy around cybersecurity awareness and encourages participation. Topics can include: recent vulnerabilities; projects in process; new controls in place; thanking users for their input and vigilance.

We’ve found that our users respond to statistics and data. Just recently, we presented the number of threats and phishing attempts our systems blocked in a month. Employees like to know they are part of a company committed to protecting the overall business.

4

EXERCISE YOUR INFORMATION SECURITY PROGRAM

Involving users represents a very effective way to raise cyber awareness.

Phishing tests are a great example.

Many available tools will allow you to send a phishing email and track who opens it, who clicks on the links or who opens the attachment and provides credentials. Pick an influential figure in your organization and send an email from some variations of their email.

Some may argue this sets up employees for failure—but this is precisely how attackers infiltrate institutions.

Employees then benefit from seeing how easy it is to gain confidence with a short email from the “right” sender.

Most organizations post their leadership teams on their public website. This information is all a potential attacker

needs to launch an effective phishing campaign.

Once you collect data from the exercise, share it with the employees: Again, users love data and stats. Stress that you will not shame people by name and make this clear in advance. That said, show the percentage of users who “bit on the phish” and how they could’ve spotted it. This benefits everyone. We’ve seen a dramatic drop in the number of employees willing to open suspicious emails once we started sharing this information at staff meetings. Phishing tests also allow you to exercise incident response plans and better understand your employees’ comfort level in reporting suspicious activity. You can then take test data, tailor training for teams that fall below the company average, and improve your means for reporting outages.

5

REQUIRE ANNUAL ACKNOWLEDGMENT OF YOUR INFORMATION SECURITY AWARENESS PROGRAM

While it is a regulatory requirement for many companies, this also serves as a best practice. The response should include all employees—including executives and board members. For efficiency’s sake, make it part of your annual information security policy and program approval process. This way you promote buy-in at the top and receive required approvals—two vital components of a successful program.

Countless ways exist to deliver and track awareness training; online delivery that interacts with the user lets you reach remote employees in a uniquely effective, efficient way. You can accomplish this via the company intranet or learning management

system that provides short post-training quizzes; this also ensures accountability and easy tracking. Partial participation is not an option. So how do you make it happen? Set expectations up front with the initial delivery of annual training, then reach out to noncompliers with a friendly nudge or reminder when they miss the deadline. This typically motivates most employees. Approach the inevitable stragglers in person and ask when they will complete the tasks.

As a last resort, suspend the employee’s email or chat account until they finish annual training. This may sound harsh, but it works. Rest assured that employees will participate promptly going forward.

You can attain improved employee awareness—and the good news is that it can happen quickly. The right strategies, along with consistent and timely delivery, get users on board to build your greatest defense. They will appreciate your efforts, understand the importance of protecting the institution and its assets, and recognize it as part of everyone’s job. Remember: Information security begins with making sure your workforce has all the right information.

Emily Larkin is the Chief Information Security Officer at Abrigo. She has over 20 years of experience in information technology and security, all within financial services. She brings an extensive background in enterprise security, data center management, disaster recovery/business continuity, IT regulatory compliance and examinations for financial institutions (FFIEC), and risk management to Abrigo.

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PROFESSIONAL DEVELOPMENT Check out these upcoming lending events:

SPOTLIGHT

TRID Refresh Daily TRID management continues to challenge many banks and lenders; this comprehensive program provides a thorough review of the TRID rules. Whether you are new to TRID or have been involved since its inception, this review of the rules and the 2017 amendments provides the information you need in order to assure a successful TRID compliance program.

This two-day program reviews all of the TRID rules, with particular emphasis on the amendments that were effective in 2018.

Participants receive a detailed manual that serves as a handbook long after the program is completed.

On the Agenda

The general rules contained in §1026.19; The content rules and the detailed instructions for completing the loan estimate from §1026.37; and The content rules and the detailed instructions for completing the closing disclosure from §1026.38.

For more information, or to register for the TRID Refresh Seminar, log on to www.arkbankers.org or call (501) 376-3741.

Who Should Attend:

Compliance & Loan Officers Auditors Loan Managers

When:

Tuesday-Wednesday, May 14-15, 2019

Where:

Arkansas Bankers Association 1220 West Third Street, Little Rock

Intro to Consumer Lending The seminar will cover the basics of consumer lending including the consumer loan function, marketing consumer loans, and making consumer lending decisions based on the five (5) C’s of credit- capacity, capital, collateral, conditions, and character.

You will also be exposed to loan structure, loan support, and documentation issues and how they are an intricate part of the consumer lending process. An auto loan, RV loan, and home equity line of credit (HELOC) will be utilized as examples throughout the session.

Additionally, the basics of consumer loan compliance will be provided including Reg B, Reg Z, TRID, BSA, and Fair Credit Reporting.

On the Agenda

Learn about the basics of consumer lending Explore marketing consumer loans Gain an understanding of how banks make consumer lending decisions based on the five (5) C’s of credit Apply consumer lending through case studies For more information, or to register for the Introduction to Consumer Lending Seminar, log on to www.arkbankers.org or call (501) 376-3741.

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Who Should Attend: Consumer Lenders Loan Documentation Specialists Branch Managers

When:

Tuesday, June 4, 2019 9:00 a.m. – 4:30 p.m.

Where:

Arkansas Bankers Association 1220 West Third Street, Little Rock

MEMBER NEWS First State Bank Announces Innovative Changes First bank in the River Valley to provide ITMs for customers To provide its customers with the latest technology in drivethrough banking and friendly, face-to-face service, starting next month First State Bank will begin the process of replacing its ATMs with interactive teller machines (ITMs) at all its branch locations in Russellville and Ola.

Drive-through customers who use the ITM will have access to a teller with the push of a button. The teller, who will be located at the ITM Center, aka “The Hub,” at the bank’s downtown branch in Russellville, will appear on a screen and assist customers throughout the entire banking transaction.

ITMs allow for face-to-face banking with tellers at drive-through lanes, as well as extended banking hours from 7 a.m. to 7 p.m. during weekdays. Also, customers will be able to carry out more traditional banking transactions — like cashing checks, making loan payments, getting questions answered and more — all from the convenience of their car.

“Like all our employees, our ITM tellers will continue to provide the friendly service we pride ourselves on and our customers enjoy,” Blanchard said.

Charles Blanchard, First State Bank CEO and chairman, said the upcoming changes will make banking more convenient for customers.

After ITMs are installed at the University (2002 N. Arkansas Ave.) and Downtown (501 W. Main St.) branches in Russellville, ITM tellers will be available 7 a.m. - 7 p.m. Monday through Friday, and 8:30 a.m. - 12:30 p.m. Saturday. Then, ITMs will be installed at the West (3005 W. Main St., Russellville), Ola (325 W. Pennington, Ola) and East (3103 E. Main St., Russellville) branches.

“We work hard to build an innovative, forward-thinking bank with our customers’ best interests in mind, and to be the most convenient bank in the area – all with the outstanding local service and decision-making our customers have come to expect,” he said.

Headquartered in Russellville, First State Bank has four branches in Russellville and one in Ola, as well as a Northwest Arkansas Loan Production Office in Fayetteville.

During the installment process, which will take place branch by branch April through July, the drive-through lanes will be widened for easier navigation.

Customers also have the option to use the ITM as a traditional ATM 24-hours a day.

To learn more about ITMs and stay updated about the installation process, visit fsbitm.com.

First Community Bank Opens Second Little Rock Location First Community Bank announced the expansion of its West Little Rock Saddle Creek location into a full-service banking center as of Tuesday, March 11. The branch is located at 8201 Ranch Blvd., Suite B4. Previously operating solely as a mortgage lending center, customers will now have access to all of First Community Bank’s offerings including checking and savings accounts, CDs, as well as mortgage, personal and commercial lending. In addition, access to the bank’s trust, investment and insurance services make this a convenient one-stop financial center.

“Our team is excited to now offer our full range of services to customers in west Little Rock. This is the beginning of what we see as a successful expansion into the Little Rock market,” said René Julian, market president for Little Rock.

This marks the second full-service Little Rock location since opening their branch in The Heights on Kavanaugh Blvd. in September 2017. First Community Bank also has locations in Independence, White, Sharp, Baxter, Craighead, and Poinsett counties, as well as Newton and McDonald counties in Southwest Missouri.

“Our presence in Little Rock speaks to the amount of growth we’ve seen in recent years,” said Dale Cole, chairman and CEO

Left to right: Frances Austin, Cameron Reesor, Brittany Hudgens, René Julian, Miguel Lopez of First Community Bank. “We feel our personal style of banking and high level of customer service will appeal to a lot of people in the area. We’re already seeing a lot of positive results.”

Lobby hours for the new location will be Monday thru Friday from 8:00 am to 5:00 pm. Staffing includes Frances Austin in new accounts, Julie Mathews and Cameron Reesor in secondary mortgage lending, Miguel Lopez as Hispanic Liaison Officer, and Brittany Hudgens in insurance.

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MEMBER NEWS Cornerstone Bank To Open New Banking Center April 1st Charlie Cross, Chief Executive Officer, Cornerstone Bank, is pleased to announce the bank’s new Harrison facility, located at 1426 Hwy 65 North, will open its doors for business on Monday, April 1st. The 9,100 square foot banking center is a full service location, providing clients a comfortable, welcoming environment to bank within. The center will offer traditional banking services as well as representatives from Cornerstone Home Mortgage and Cornerstone Investment Services, both divisions of Cornerstone Bank. Cross stated, “After some frustrating weather related construction delays, we are excited to continue our growth in Boone County from our new home. We are most appreciative of the confidence that has been placed in us by our existing client base, as well as the opportunities afforded us during the time we have

spent in our temporary location while under construction. It is certainly our pleasure to provide the citizens of Boone County with this state-of-the-art facility to conduct their banking within for years to come. We believe it matters where you bank and our capable staff is looking forward to introducing our brand of true community banking for Boone County’s consideration.”

Cornerstone Bank is a locally owned, 300 million dollar community bank with 6 locations throughout the Northwest Arkansas Region. The bank, founded in 1912, is one of the fastest growing financial institutions in the State of Arkansas and has been on a steady growth path in Boone County since its opening in March, 2017.

United Bank Receives Smart Corporate Giving Award volunteer work that the United Bank employees had been doing at House of Hope during 2018.

Three winners were named after judging the nominations and applications. United Bank won, along with Wright Lindsey Jennings of Little Rock and Kinco Constructors of Little Rock.

United Bank was presented with the Arkansas Community Foundation’s Smart Corporate Giving Award at the Arkansas Business of the Year Awards in Little Rock on Wednesday, March 6, 2019.

“On behalf of the employees of United Bank, we are very honored and humbled to receive the Smart Corporate Giving Award from the Arkansas Community Foundation. Giving back and supporting the well-being of our local communities is an integral part of who we are as an organization. This recognition celebrates our generous and dedicated staff, who give their time and talent to the causes that matter most to them and their communities,” said Nathan Gairhan, President & CEO of United Bank.

The award is presented to for-profit businesses in Arkansas that show a commitment to community service in Arkansas through corporate giving, community leadership, and/or employee volunteerism. United Bank was nominated by Erin West, the director of House of Hope in Springdale, for the

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For over 40 years, United Bank has been a locally owned community bank with a geographic focus on Northwest Arkansas. With a dedication to excellence in customer service, the Bank offers a wide array of banking products and services, including FDIC-insured deposit accounts, home loans, personal loans, business loans, cash management services, online banking, and much more. United Bank currently operates four branches; two locations in Springdale, one in Fayetteville, and one in Rogers. As a locally owned and operated financial institution, helping the people of Northwest Arkansas with their financial needs is United Bank’s priority and purpose.

BANKER NEWS & MOVES Farmers and Merchants Bank Announces Promotions Farmers and Merchants Bank President and CEO Gary Hudson recently announced several promotions within the organization. The announcements were made at the bank’s annual stockholder luncheon.

Alex Maynard has been named Stuttgart Market President.

Maynard, a Stuttgart native and graduate of Stuttgart High School, graduated college from The University of Arkansas at Little Rock. He began his career with Farmers and Merchants in 2012 as Vice President and Commercial Loan Officer. He and his wife Natalie have three children.

In his spare time, he enjoys playing golf, watching his children’s sports activities, going to the horse races, and spending time on the lake with family and friends.

Robin Troy of DeValls Bluff, AR was promoted to Loan Operations Officer. A native of Brinkley, she moved to DeValls Bluff in 1993 after graduating high school. She attended college at Phillips Community College of the University of Arkansas, Stuttgart campus. Her career with the bank began in 2012 in the Customer Service

Department and transitioned to the loan department in 2015. Robin enjoys running and spending quality time with family and friends.

Sandy Kee was promoted to Assistant Vice President and Loan Officer in the bank’s Hazen branch. Originally from Stuttgart, she graduated from Stuttgart High School in 1984 and obtained a Bachelor’s Degree in Business from Arkansas State University.

She has lived in Hazen for 30 years and went to work for the bank in 1996 as Loan Assistant, Teller, and New Accounts Representative.

She enjoys shopping and spending time with family and friends.

Shonda Jones, of West Fork, AR was promoted to VicePresident and Trust Officer, located at The Bank of Fayetteville. Jones is a University of Arkansas graduate and started working for The Bank of Fayetteville in 1993. In her new position, she continues working with existing and new clients in the areas of trust administration and investment management.

She enjoys travel and spending time outdoors with family.

Jill Trader was promoted to Assistant VicePresident and Audit Director at The Bank of Fayetteville.

Trader, originally from Troy, Ohio, started working with the bank in May 2018 as Internal Auditor. She graduated high school from Miami East High School in Casstown, Ohio and then graduated college from Bluffton College in Bluffton, Ohio with degrees in accounting and business administration. She and her husband share three children.

She has fun going to her children’s sporting events and coaches her daughter’s soccer team.

Melissa Reid, a Fayetteville native, was promoted to Assistant Vice-President and Real Estate Loan Officer at The Bank of Fayetteville. Reid is a graduate from The University of Arkansas and started with the bank in 2005 as loan assistant. In her spare time, Melissa spends time with her family & friends, traveling, watching or attending Razorback sporting events, and enjoying the outdoors.

April 2019

Beth Tiner, from The Bank of Fayetteville, was promoted to Assistant Vice-President and Loan Operations Officer. Tiner, a Fayetteville native, graduated from Fayetteville High School and graduated college from The University of Arkansas.

Tiner began her career at The Bank of Fayetteville in 2000 as a teller, and started working in the loan department in 2005. In her spare time, Beth likes hiking, fishing, and spending time with her family.

Vicky Hansen, from The Bank of Fayetteville, was recently promoted to Assistant Vice-President and Loan Officer at Prairie Grove. She is a graduate from Lincoln High School and graduated Arkansas Banking School with a degree in Consumer Lending. Hansen likes quilting, reading, movies, and watching her grandchildren play sports.

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BANKER NEWS & MOVES Arvest Bank Announces Adams Hire Arvest Bank is pleased to announce it has hired Tina Adams to fill a new position, community development mortgage lender.

Adams has seven years of experience in the financial services industry. At Arvest, she will serve as a decision-making resource for customers, providing guidance to them in an effort to find solutions tailored for their unique needs, among other responsibilities. In her specific role as a community development mortgage lender, she will focus on assisting low-to-moderate income individuals.

Adams is an Accredited Financial Counselor® and a credit specialist.

“We couldn’t be more excited about Tina filling this new role at Arvest,” said Eric Cullum, mortgage lending manager for Arvest in central, northeast and southwest Arkansas.

“She has an obvious passion for making home ownership a reality for everyone who chooses that path, but especially those with low to moderate incomes. Her expertise in creating step-bystep plans for her clients will be a tremendous benefit for Arvest and, more importantly, our customers.”

Adams earned a degree in business marketing at the University of Arkansas – Pine Bluff. She is a Pulaski County Housing Authority board member and an active member of The Valor Effect, a networking group for women.

Sarah Lane Promoted to Lead Retail Banking at Citizens Bank Sarah Lane has been promoted to Senior Vice President and Chief Retail Officer for Citizens Bank, according to Adam Mitchell, Citizens Bank President.

“In this new role, Sarah will have direct responsibility for all aspects of retail banking including staffing, retail operations, and retail training,” Mitchell said. “She will work directly with our Market Presidents and City Presidents to ensure all Citizens Bank locations are providing a consistent delivery of service for every customer.”

variety of roles, including retail, lending, treasury management, product development, sales, and branching strategy for more than 200 branch locations.

She will maintain offices both in Batesville and Little Rock.

She graduated from the University of Arkansas at Little Rock, receiving a Bachelor in Business Finance degree. She and her husband, Stephen Lane, have two daughters, Katelyn and Audrey.

Arvest Bank Announces Gray Promotion Arvest Bank is pleased to announce that Magan Gray has been promoted to the role of associate mortgage lender in Little Rock.

Gray will be based out of the Arvest branch located at 440 W. Markham in Little Rock and will work closely with the central Arkansas mortgage team on the generation, evaluation, approval, processing, closing and servicing of real estate Ms. Lane, who joined Citizens loans. Gray previously was a mortgage sales assistant with Bank last year as Senior Arvest.

Vice President for Lending, has more than 21 years of “We are thrilled to have banking experience in a Magan move into this role on our mortgage team,” said Eric Cullum, mortgage loan manager for Arvest in central, northeast and southwest

Arkansas. “Her knowledge and expertise will make our team stronger but, more importantly, she will be a tremendous asset for our customers.”

Gray and her husband, Charles, live in Cabot.

Lewis promoted at FNBC – Mountain Home Christine Lewis has been promoted to Assistant Vice President & Commercial Lending Officer at FNBC according to Regional President, Chief Lending Officer & Community President for Mountain Home Chad Hudson. In her role, she will continue focusing on her existing client relationships, seeking opportunities to help the local community with their small business needs, and maintaining and growing the loan and deposit portfolio for the Mountain Home office, located at 102 Hwy 62. East.

“Christine has been a valued member of our commercial lending team since she joined FNBC Bank three years ago,” said Hudson. “Her clients appreciate the level of knowledge and service she brings to their projects, as well as and her willingness to work harder to get their deal done faster and better.

Christine has a very bright future ahead of her at FNBC

and I look forward to working with her and watching her grow as an FNBC Community Banker.”

Lewis began her career with FNBC in early 2016 as a commercial lending assistant and was promoted to senior commercial lending specialist in October 2017.

A native of Mountain Home, she has over 16 years of commercial banking experience. She holds a Bachelor of Science in Business Administration with an emphasis in Finance from the University of Central Arkansas.

She and her husband, Aaron, live in Mountain Home and have three sons.

Arvest Bank Announces Bly Promotion in Conway

Conway.

Arvest Bank is pleased to announce it has promoted Ethan Bly to mortgage loan officer in

Bly most recently worked as a senior teller. In his new role, Bly will serve as a decision-making resource for customers, providing guidance to them in an effort to find solutions tailored for their unique needs, among other responsibilities. He will be based out of the Arvest location at 2590 Donaghey.

“This is a well-deserved promotion and we are excited to welcome Ethan to the mortgage team,”

said Skip Colvin, community bank president for Arvest in Conway. “I have no doubt Ethan will be an asset not just for the bank but, more importantly, for our customers.”

Bly earned a bachelor’s degree in public relations from the University of Central Arkansas, where he also was a member of the track team. He is a member of the Faulkner County Board of REALTORS ® and the Conway & Perry Counties REALTORS® Associations.

He and his wife, Savannah, live in Conway.

Arvest Bank Names HillChandler Diversity and Inclusion Officer Arvest Bank is pleased to announce it has hired LaTricia HillChandler as its Diversity and Inclusion Officer.

Hill-Chandler most recently served as a senior manager II for diversity and inclusion development in the Global Culture, Diversity and Inclusion Office at Walmart Stores Inc. in Bentonville.

Among other responsibilities, she was charged with creating strategy and implementing the new inclusive leadership initiative, an enterprisewide diversity and inclusion effort focused on increasing inclusion awareness through education and training for Walmart’s global leaders and associates.

In her role at Arvest, HillChandler serves as the primary subject matter expert and architect of its diversity and inclusion and cross-cultural relations plans and programs. She has served in similar positions for Cummins, Inc., Veolia North America, Indianapolis Public Schools and the Central Indiana Educational Service Center, and Indiana University.

customers meet their financial goals.”

Hill-Chandler earned bachelor’s degree in business administration at LeMoyne-Owen College and a master’s in management at Indiana Wesleyan University.

Additionally, she is a graduate of the Stanley K. Lacy Executive Leadership Series.® Among other civic endeavors, Hill-Chandler has served on the board of directors for the Indianapolis Public Schools Foundation and St. Mary’s Child Center, and was a member of the Women’s Business Enterprise National Council Certification Committee. She also was a board member for former WNBA player and Olympic gold medalist Tamika Catchings’ Catch the Stars Foundation.

“I am so pleased that Arvest was able to attract someone of LaTricia’s caliber and expertise to steer Arvest’s new initiative to become more intentional in our inclusion efforts,” Arvest Chief People Officer Laura Andress said. “Under her professional guidance, I am confident we will accomplish great things in our quest to help more

COMMUNITY EVENTS

Amanda Miller delivers birthday books to children at Wynne Primary as part of First National Bank of Wynne’s sponsorship of the Birthday Book Project where each student receives a new, wrapped book on their birthday.

First National Bank employees host a cookout for a local backpack organization, 363 Feed the Need, that sends food home with children each day throughout the year. Over 300 hot dogs were cooked and over $4,000 was raised.

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YourBank ARK @YourBankARK

Thanks to all who participated in this year’s fall clothing drive... glad to be getting the school year off on the right foot for so many local kids! #BankersGiveBack

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because #BankersGiveBack!

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Yesterday at 3:27 PM Joining with Rotary and the Boy Scouts to give Mitchell Park a facelift... can’t wait to see the finished product! #BankersGiveBack

527 likes arkansasbanker going pink to support our sisters fighting breast cancer #bankersgiveback #womeninbanking

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Email photos + stories of your bank giving back to be highlighted in The Arkansas Banker and through ABA Social Media channels to jessica.sahene@arkbankers.org.