The Arkansas Banker August 2015

Q&A With Congressman Womack

Compliance Conference

BMS Wrap-Up

The Arkansas

Banker ARKANSAS BANKERS ASSOCIATION

ANNUAL

WASHINGTON

VISIT

SEPTEMBER 15-17, 2015

Volume XCIX, No. 8 | August 2015 August 2015 | The Arkansas Banker

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The Arkansas Banker | August 2015

The Arkansas

Banker Volume XCIX, No. 8 | August 2015

The Arkansas Banker is the official publication of the Arkansas Bankers Association.

CONTENTS

EDITORIAL OFFICE

1220 West Third Street Little Rock, AR 72201 Phone 501.376.3741 | Fax 501.376.9243 www.arkbankers.org

President’s Column

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Washington Update

8

Government Relations

COLUMNS

EDITORIAL

The Arkansas Banker seeks to reflect the banking news of Arkansas and other news of direct interest to the Arkansas Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Arkansas Bankers Association. Articles may be reproduced with written permission only.

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Bill Holmes

Gov. Frank Keating Ava Franks

24 Professional Development

DEPARTMENTS

25 Member News 26 Banker News & Moves 27 Index of Advertisements

ADVERTISEMENT

The publication of advertisement does not necessarily represent endorsement of those products or services by the Arkansas Bankers Association. The Editor reserves the right to refuse any advertisement.

SUBSCRIPTION

Subscription to The Arkansas Banker magazine, which began monthly publication in April 1917, is included in the membership fees to the Arkansas Bankers Association.

10 Get to Know

Congressman Steve Womack

FEATURES

13 ABA Compliance Conference 16 2015 Bank Management

Seminar Wrap-up 22 125 Years of the ABA:

Surviving the Great Depression

MAGAZINE RATES

Cover price is $5.95 each. Annual subscription rates are $40.00 for members and $60.00 for non-members.

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.

COVER STORY

Annual Washington Visit Let Your Voice Be Heard in Washington...

See page 14

POSTMASTER: Send address changes to Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201.

August 2015 | The Arkansas Banker

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PRESIDENT’S COLUMN Let’s Make a Presence in Washington Last month, Robert Taylor, Sean Williams, John Womack, Aaron Gamewell, and I attended the American Bankers Summer Leadership meeting in Baltimore. I think all of us left feeling more confident about banking, despite the numerous and complex challenges we face. There was a renewed sense of cautious optimism in all of our meetings.

We met the soon-to-be new head of the AmBA, Rob Nichols — he will take over for Frank Keating in November — and then we met with CEOs and leadership of the other state associations and the AmBA’s Government Relations Council, where we participated in open discussions on what our policy priorities would be for the coming year.

As you have always known, and always proven through your actions, our number one priority is still to help our bank customers succeed. We discussed all of the issues that have made this increasingly difficult to achieve since the passage of the Dodd-Frank Act. The most important regulatory priorities fall into these five categories: Cybersecurity and Data Breaches Remove Impediments to Serving Customers Protect the Payments Systems Level Playing Field and Charter Choice Regulation Appropriate to Business Models We also discussed the true progress being made toward a more tailored approach to regulation that we have seen in the last several months.

The house has passed a lot of Reg Relief Bills, the Senate has several options to pass a good number of relief bills as well. There is a belief that five years into DoddFrank it is time to correct some of the unintended consequences, and to loosen the strangle-hold on our hometown banks and their communities.

Almost every one of our speakers that week stressed that good leadership requires great communication. We have proven that the most compelling communication to our regulators, and to our legislators, is storytelling. Our bankers telling their stories about the effects excessive regulations have on our customers is driving this move to tailored regulations. Please continue to talk about the real life examples and outcomes your bank has produced as you promote the prosperity of your customers and your communities. Stories of how these unnecessarily strict regs are making your important work harder to do will help persuade and drive better policies for banks — and most importantly, for our customers.

One of our best opportunities to sit face to face with our delegation is coming up next month: the ABA’s Annual Washington Visit will be September 15-17. We make a bold statement about our banks and our commitment to our industry when we have a strong turnout in D.C. This year we want to make it a priority to have 20 bankers in attendance. We have a united, bank-friendly delegation and we have only until the end of the year to get Reg Relief bills pushed through Congress before the Presidential elections take over.

ABA Recognized for BankPac Contribution The Arkansas Bankers Association was recognized for their $25,000 contribution to the Federal BankPac at the AmBA Summer Leadership Meeting in Baltimore.

Pictured are Aaron Gamewell, ABA EVP/COO; Bill Holmes, ABA President & CEO; Rob Nichols, Incoming AmBA President & CEO; W. Wes Hoskins, BankPac Chairman; Robert Taylor, ABA Chairman; Sean Williams, ABA Chairman-Elect; John Womack, ABA Past Chairman; and John Ikard, AmBA Chairman.

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The Arkansas Banker | August 2015

ABA EXECUTIVE COMMITTEE

PRESIDENT & CEO BILL HOLMES

Our Legislators and Regulators need to hear directly from you about the effects over-regulation have had on many of your individual customers.

They can then weave these stories into their testimonies when the hearings on these bills take place. They respect you as community leaders and know the contact you have with their voting constituents.

Join us for a casual dinner with our delegation on the Wednesday evening at the historic President Lincoln’s Cottage. This will be a great way to grow your relationship with our delegation and with the other bankers attending.

Thursday morning we will get a detailed briefing on the most pressing issues from the AmBA. Following the briefing, we will visit the CFPB, CSBS, OCC and the Federal Housing Finance Agency, to share our needs and insights. The FED and FDIC are in closed sessions this week in D.C., or they would be on our list as usual.

That afternoon we will meet with Senator Boozman in his office. From there we will head to our legislative staff Cocktail Reception. This is always a great, casual meeting with the good folks who research, craft and advise our delegation on issues. It is a great chance to network with the young professionals we will be working with for years to come. It is an even better time to introduce your young professionals to the legislative staffers that they will be working with for many years to come.

Friday morning, we will have a breakfast meeting with our four Congressman, followed by roundtable discussions on our banking issues. Next we will join Senator Cotton in his offices to give him more ammunition for his fight to reduce overregulation.

I encourage you to join us this year. This will be a more enjoyable trip after almost eight years of playing non-stop defense we are on the offense, pushing our much-needed bills closer to a score.

Parkway Bank, Rogers

ROBERT Y. TAYLOR | CHAIRMAN

SEAN WILLIAMS | CHAIRMAN-ELECT First National Bank of Wynne, Wynne

DAVE DICKSON | VICE CHAIRMAN Union Bank & Trust Co., Monticello

JUDY LAWTON | TREASURER Heartland Bank, Little Rock

CHUCK MORGAN | PAST CHAIRMAN Relyance Bank, Pine Bluff

BILL HOLMES | PRESIDENT/CEO Arkansas Bankers Association, Little Rock

ABA BOARD OF DIRECTORS PHIL BALDWIN | GROUP 2 Citizens Bank, Batesville

J. MICHAEL JONES | GROUP 5 Merchants & Farmers Bank, Dumas

GREG CONNELL | GROUP 2 The Farmers & Merchants Bank, Perryville

CRAIG MOBLEY | GROUP 4 First Financial Bank of El Dorado, El Dorado

TROY DUKE | GROUP 5 Gateway Bank, Rison

WILSON MOORE | GROUP 2 Bank of America, Little Rock

Regions Bank, Hot Springs

ELIZABETH FARRIS | GROUP 4

JERRY MORGAN | GROUP 1 Focus Bank, Jonesboro

GARY GOLDEN | GROUP 4 First State Bank of DeQueen, DeQueen

Eagle Bank, Little Rock

SCOTT HANCOCK | GROUP 3 Centennial Bank, Fayetteville

RANDY SCOTT | GROUP 1 Farmers Bank & Trust Co., Blytheville

DREW HARPER | GROUP 2 Bank of the Ozarks, Little Rock

MIKE SMITH | GROUP 5 McGehee Bank, McGehee

JON HARRELL | GROUP 3

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

DARWIN HENDRIX | GROUP 4

STANHOPE WILKINSON | GROUP 3 Farmers Bank & Trust, Greenwood

CATHERINE OWEN | GROUP 2

First Bank, Rogers

Bank of Delight, Delight

CHARLES HORTON | GROUP 1 Fidelity Bank, West Memphis

ABA STAFF BILL HOLMES

AARON GAMEWELL

PRESIDENT/CEO 501.978.3602 | bill.holmes@arkbankers.org

EVP/COO 501.978.3613 | aaron.gamewell@arkbankers.org

CARLA BRINKLEY

KAMI TAYLOR COLEMAN

VP/CONTROLLER 501.978.3608 | carla.brinkley@arkbankers.org

AVA FRANKS

VP/PROFESSIONAL DEVELOPMENT 501.978.3614 | kami.coleman@arkbankers.org

VP/DIRECTOR OF GOVERNMENT RELATIONS 501.978.3606 | ava.franks@arkbankers.org

JESSICA SAHENE

TRACI LOGSDON

DIRECTOR OF COMMUNICATIONS 501.978.3603 | traci.logsdon@arkbankers.org

TERRI KELLY

MARKETING COORDINATOR 501.978.3609 | jessica.sahene@arkbankers.org

PROFESSIONAL DEVELOPMENT COORDINATOR 501.978.3607 | terri.kelly@arkbankers.org

STUART THALHEIMER

BRENDA SCARBROUGH

EXECUTIVE ASSISTANT ADMINISTRATIVE ASSISTANT 501.978.3605 | stuart.thalheimer@arkbankers.org 501.978.3600 | brenda.scarbrough@arkbankers.org August 2015 | The Arkansas Banker

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WASHINGTON UPDATE Tailoring Rules to Help Banks Succeed When we talk about advocacy, most people probably think of Congress — of lawmakers, bill introductions, committee actions and floor votes — culminating, perhaps, in a signing ceremony at the White House.

Yet, there’s another type of advocacy that’s equally important to our industry: regulatory advocacy.

As you well know, how an implementing regulation is drafted, proposed and applied can have a significant impact on your customers and community, and your institution.

That’s why AmBA puts significant effort and resources into shaping the rules that shape your business. We leverage the expertise we have on staff and the knowledge of our member bankers and the state associations to craft detailed and meaningful comment letters on proposals. We supplement our letters with personal meetings with regulatory staff, and when necessary, we get Congress involved.

These efforts have produced results — successes that can be found in subtle yet important provisions of final and proposed rules.

For example, the CFPB — responding to our views — proposed lifting the small originator QM threshold and expanding the definition of rural and underserved areas. It also finalized helpful fixes to the TILA-RESPA mortgage disclosures.

Our advocacy on Basel III allowed most banks to opt out of running unrecognized gains and losses through their Basel capital calculations. We also secured a two-year extension of the Volcker Rule’s phase-in on funds investments, and the exclusion of bank custodial operations from the Labor Department’s proposed “fiduciary” rule.

And in response to an AmBA/state association recommendation, regulators are now considering proposing regulations that would exempt highly capitalized banks from much of Basel III implementation.

We will continue to work to reduce other unnecessary burdens associated with arbitrary statutory and regulatory thresholds affecting mid-sized to smaller institutions, as well as to combat “trickle-down” regulation harming thousands of banks. And we will remain on guard as the CFPB turns its attention to new areas, including overdraft protection.

Sometimes, however, our collective efforts with the agencies are not enough to right-size regulation. The political environment can make regulators skittish about providing relief that, while appropriate, could be second-guessed by Congress.

GOV. FRANK KEATING President & CEO American Bankers Association

To help persuade them to take action, AmBA and the state associations conceived of legislation — introduced by Rep. Scott Tipton (R-Colo.) in June as the TAILOR Act (H.R. 2896) — that would require regulators to tailor rules to a bank’s business model and risk profile. Simply put, it frees regulators to use common sense, applying rules only where appropriate while cutting back on those that come with high costs and add little to safety and soundness.

Such an approach to regulation is long overdue.

ABA’s 2015 Survey of Bank Compliance Officers found that growing regulatory compliance burdens have led nearly half of all banks to reduce their offerings for loan accounts, deposit accounts, or other services. And 46 percent said their banks had decided not to launch a product, open a new channel or enter a new market due to compliance concerns.

These findings are clear, objective proof that change is needed in order for banks to effectively and successfully serve their customers and communities. Please help us create that change by urging your representatives to cosponsor H.R. 2896.

Our regulatory outreach efforts go beyond the financial regulators, too. Thanks to our regulatory advocacy, the Federal Communications Commission approved a proposal to exempt mobile fraud alerts from Telephone Consumer Protection Act limitations.

© 2015 American Bankers Association. All rights reserved. Reprinted with permission.

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The Arkansas Banker | August 2015

ABA Live Events ABA Professional Development

Live Events...

Provide you with face-to-face interaction with an expert instructor!

SEPTEMBER 2015 3–4

| Training the Bank Trainer

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| Call Report Preparation: An Update

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Holiday Inn Presidential, Little Rock Who Should Attend: Bank Supervisors, Branch Managers, Trainers, and those responsible for the bank’s training efforts Holiday Inn Presidential, Little Rock Who Should Attend: Anyone responsible for preparing, auditing, or signing the call report will find the program valuable. New and experienced preparers and reviewers interested in new requirements should be trained.

| Fraud Prevention Workshop

Crowne Plaza, Little Rock Who Should Attend: Security Officers, Cash Management Officers, Bank Legal Counsel, Operations Managers, Chief Information Officers, and Branch Managers

22-23 | Compliance Conference

Crowne Plaza, Little Rock Who Should Attend: Security Officers, Cash Management Officers, Bank Legal Counsel, Operations Managers, Chief Information Officers, Branch Managers

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| BSA/AML Compliance Management

Crowne Plaza, Little Rock Who Should Attend: Personnel who have responsibility for maintaining or auditing BSA compliance efforts.

27 – 1 | Basic Lending School

Holiday Inn Presidential, Little Rock Who Should Attend: Loan Officers and lending support staff. New and intermediate lending staff who may benefit from this professional development opportunity include: Credit Analysts, Loan Secretaries, Loan Administration Personnel, Loan Review Officers, Branch Managers, and Collections Personnel.

OCTOBER 2015 14-15 | CCBSP (Certified Community Banking Security Professional)

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Crowne Plaza, Little Rock Who Should Attend: ISO, Auditor, IT Manager, Compliance Officers, Security Officers, Operations Officers

| Safety & Soundness

Crowne Plaza, Little Rock Who Should Attend: Bank Directors, Executive Management, Senior Bank Officers, Shareholders, Chief Risk Officers, Senior Bank Officers

20–21 | Trust Conference

Crowne Plaza, Little Rock Who Should Attend: Trust Officers, Wealth & Private Banking Directors, Senior Financial Advisors, Personal Bankers, Estate Planning Attorneys, Senior Level Executives, Portfolio Managers

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| Bank Directors I Workshop

Crowne Plaza, Little Rock Who Should Attend: Bank Directors, Executive Management, Senior Bank Officers, Shareholders

27–28 | IRA School

Crowne Plaza, Little Rock Who Should Attend: Trust Officers, Wealth & Private Banking Directors, Senior Financial Advisors, Personal Bankers, Estate Planning Attorneys, Senior Level Executives, Portfolio Managers, Any officer or manager who oversees the IRA department and may be responsible for answering IRA account holders questions or concerns but does not actually open IRA accounts, Experienced IRA Personnel who like a slower pace workshop to cover all the new changes in a comprehensive manner

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

August 2015 | The Arkansas Banker

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GOVERNMENT RELATIONS FUNDRAISING

WASHINGTON VISIT

The ABA PAC campaign is well underway for 2015 and is working to meet annual fundraising goals, especially for federal election funds.

Be sure to sign up for our Annual Washington Visit!

This is a fantastic opportunity to sit down with your lawmaker and to hear from federal regulators.

Did you realize that Senator Boozman and all four of our Congressmen are up for reelection in 2016?

These men worked hard to get into office and, for the most part, have worked diligently on the banking industry’s behalf. Important strides have been made in the push toward federal regulatory relief and we cannot let up now. Utilizing ABA’s Government Relations Division, especially through ABA PAC, is a certain way to ensure your contributions go toward bank-friendly candidates.

Join us for dinner with some of our Congressman at President Lincoln’s Cottage Tuesday night and then whisk through the Federal Regulators’ offices Wednesday to culminate at a cocktail party with Federal Staffers. This trip is one that should be taken at least once by every Arkansas banker.

ABA PAC directs fundraising efforts to member bank CEOs and does not directly solicit individual bank officers or employees without CEOs’ permission. If requested, ABA will be happy to assist CEOs with internal ABA PAC fundraising by providing materials or meeting with bank officers or employees.

ABA PAC maintains two separate funds. The state fund supports state legislative and constitutional officer candidates. The federal fund focuses on candidates for U.S. House and Senate.

Our banking industry needs your support now more than ever, and it is vital that we are active players in the upcoming elections on behalf of the banking industry; utilize ABA’s Government Relations Division for this. You can trust ABA to work diligently on behalf of the Arkansas banking industry. Supporting ABA PAC is a way for us to gather as a unified front, work to retain those candidates who assist our industry, and elect those candidates that will.

See Page 14 in this magazine or our website for details! ELS stipends were still available at press time.

VP / DIRECTOR OF GOVERNMENT RELATIONS AVA FRANKS

TAKE YOUR LAWMAKER TO WORK WEEK

ABA is working with American Bankers to employ Take Your Lawmaker to Work Week this September.

This program focuses on federal lawmakers and asks bankers to invite your Senator or Congressman into your bank for a day, half day, or even an hour, to demonstrate the daily activities that make up the inner workings of a bank. Whether your lawmaker has visited a bank before, you already have an existing relationship with him, or have yet to meet your Representative, this opportunity is one not to be missed. Being able to hear first person accounts of the regulatory burden, meet customerconstituents, or simply sit in on a board meeting is an opportunity that will prove invaluable when it comes time to argue facts for a bill concerning regulatory relief.

Guides are available to help you plan your Congressional visit and ABA’s Government Relations Division is always here to assist.

Seize this opportunity for banking industry issues to be the sole focus of your elected official.

ABA EMERGING LEADERS SECTION COUNCIL

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KEVIN THOMPSON | PRESIDENT Centennial Bank, Fayetteville

Arvest Bank, Little Rock

Relyance Bank, Pine Bluff

EDUARDO ABRIL | GROUP 4 First State Bank of DeQueen, DeQueen

ROBERT HARGIS | GROUP 5 Parkway Bank, Monticello

GREG MCCARROLL | GROUP 2 Centennial Bank, Little Rock

JOHN BOLLINGER | GROUP 3 The Bank of Fayetteville, Fayetteville

BURT HICKS | GROUP 5 Simmons Bank, Pine Bluff

HUNTER NORTON | GROUP 3 First Security Bank, Fayetteville

JACOB BOX | GROUP 5 Simmons Bank, Dumas

ANDY HORTON | GROUP 1 Fidelity National Bank, Marion

GEORGE PURVIS | GROUP 3 Cornerstone Bank, Eureka Springs

TYLER DAVIS | GROUP 4 Diamond Bank, Ashdown

BLAKE JOHNSON | GROUP 1 Evolve Bank, Jonesboro

BEN RIDINGS | GROUP 2 Bank of the Ozarks, Little Rock

BRANDON GENTRY | GROUP 1 Cross County Bank, Wynne

MATT LAFORCE | GROUP 2 First Security Bank, Searcy

HUNTER WINDLE | GROUP 4 The Malvern National Bank, Malvern

The Arkansas Banker | August 2014 2015

BLAKE FLETCHER | VICE PRESIDENT

JOHN ANDERSON | SEC./TREAS.

ABA Webinars ABA Professional Development

Webinars...

Provide the option of training as many employees as you wish for one price, all from the convenient location of your home institution!

Appraisal Review for Residential Mortgage Decisions 8/27/2015 1:30 p.m. - 3:30 p.m.

Are You Diversifying Your Loan Portfolio Appropriately?

8/28/2015 1:30 p.m. - 3:30 p.m.

New Proposed Overtime Rules: Implications for Community Banks 8/31/2015 1:30 p.m. - 3:30 p.m.

BSA Staff Training 9/2/2015 1:30 p.m. - 3:30 p.m.

Flood Insurance: Recent Revisions 9/2/2015 10:30 a.m. - 12:30 p.m.

RC-C Loan Coding and Related RC-R Reporting 9/3/2015 1:30 p.m. - 3:30 p.m.

Lending Essentials: Business Entities 9/3/2015 1:30 p.m. - 3:30 p.m.

The FDCPA, the CFPB & You 9/8/2015 1:30 p.m. - 3:30 p.m.

The Top Fifty Most Important Safe Deposit Box Procedures 9/9/2015 10:00 a.m. - 12:00 p.m.

Opening Deposit Accounts Online 9/10/2015 1:30 p.m. - 3:30 p.m.

Controlling the Risks of Power of Attorney Documents 9/10/2015 10:00 a.m. - 12:00 p.m.

BSA Series: Completing CTR and SAR Reports Line By Line 9/11/2015 10:00 a.m. - 12:00 p.m.

Negotiation Skill Building for Bankers 9/14/2015 1:30 p.m. - 3:30 p.m.

For Salespeople: Avoid the Big Mistakes & Get Commitment 9/14/2015 12:00 p.m. - 1:00 p.m.

Do’s and Don’ts of Checks: How To Avoid Loss 9/15/2015 10:00 a.m. - 12:00 p.m.

Best-Ever Compliance Checklists for Commercial Loans 9/16/2015 1:30 p.m. - 3:30 p.m.

Living Trust Documents 9/17/2015 10:00 a.m. - 12:00 p.m.

Health Savings Accounts 9/18/2015 10:00 a.m. - 12:00 p.m.

Interest Rate Risk Basics: Managing Earnings & Value At Risk 9/22/2015 2:00 p.m. - 3:40 p.m.

Get Global: Understanding Global Cash Flow Analysis 9/22/2015 10:00 a.m. - 12:00 p.m.

Turning the 5 Cs of Credit Into Objective Risk Scoring 9/23/2015 10:00 a.m. - 11:00 a.m.

Legal Liabilities When Check Fraud Occurs 9/24/2015 10:00 a.m. - 12:00 p.m.

15 Common Mistakes on LLCs 09/29/2015 1:30 p.m. - 3:30 p.m.

Call Report- Recent Changes, Highlights and Pitfalls 9/29/2015 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

August 2015 | The Arkansas Banker

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Get to know Arkansas Congressman

Steve Womack Hometown:

Born in Russellville Resides in Rogers

Alma Mater:

Arkansas Tech University, Class of 1979

Elected to Office: November 2, 2010

Committee Assignments House Appropriations Committee

Click here to learn more about Congressman Steve Womack.

Defense Subcommittee Financial Services & General Government Subcommittee Vice Chairman of the Labor, Health and Human Services, Education, and Related Agencies Subcommittee House Budget Committee

Contact Congressman Womack Congressman Steve Womack 1119 Longworth HOB Washington, D.C. 20515 Phone: 202.225.4301 Web: www.womack.house.gov

Contacts: Chief of Staff Beau Walker Legislative Director Adrielle Churchill Financial Services Legislative Assistant Ben Cantrell District Director Bootsie Ackerman

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The Arkansas Banker | August April 2015 2015

From an economic standpoint, what is the major focus of the session? And what can we expect to see result from this focus?

Simply put – jobs. That’s easy for a Congressman to spout, but the numbers tell the story: this stagnant economy has produced fewer new jobs and a smaller increase in economic growth compared to any of our country’s major recoveries of years past. And that’s without even factoring those who are under-employed or have dropped out of the workforce altogether.

Why is that, you may ask? I’ve heard resoundingly from businesses across the Third District and all over the country that it’s because they are being strangled by endless regulations. Instead of growing their companies — and our economy — they have to use their resources to comply with never-ending government mandates.

For the banking industry, Dodd-Frank is this most notorious culprit. To help you fight back, this Congress, we have focused on getting the boot off the neck of the job creator by peeling back regulatory layers. From pushing back on the Administration’s harmful energy intrusions, to combating the implicit tax increases of the health care law, to walking step-by-step through the intrusive and arbitrary numbers, requirements, and safety nets in your biggest challenge — Dodd-Frank — we are taking overregulation to task.

Give us a progress report regarding ongoing measures for regulatory relief for Arkansas’s hometown banks.

Since my election to Congress, I have served as a member of the House Appropriations Committee, which is tasked with overseeing federal discretionary spending. This Congress, I’ve expanded that oversight to include mandatory spending as a member of the House Budget Committee.

From the top down, we started this session with a Budget Resolution that suggested the repeal of Dodd-Frank in

its entirety — a fresh start. Through the appropriations process, we’ve been able to take a deeper dive and address much-needed reforms, like subjecting the Consumer Financial Protection Bureau (CFPB) to the discretionary funding originated by our Committee and reassessing spending for agencies that perform above or below the standards that Congress has entrusted in them.

As a whole, the House continues to chip away at burdensome regulations with Chairman Jeb Hensarling and the Financial Services Committee leading the charge.

Together, we have shepherded dozens of bills to the House Floor for passage to help community banks and local lenders, including legislation I introduced — the Holding Company Registration Threshold Equalization Act of 2015 (H.R. 1334), which passed on July 14, 2015.

Please list three goals you have to alleviate the regulatory burden of hometown banks.

I’ve mentioned Dodd-Frank, and for good reason… in the five years since its passage, its 2,300 pages and 400 regulations have forced 1,500 community banks to shut their doors. It truly is the largest threat to our small financial institutions, and all of my goals to get them some relief start there.

Aside from H.R. 1334, I’ve cosponsored bills that I’d ultimately like to see through, which I believe will help end the suffering that worsens each day with the continued writing and implementation of new Dodd-Frank rules — specifically the Community Lending Enhancement and Regulatory Relief (CLEARR) Act, the Systemic Risk Designation Improvement Act, and the Federal Reserve Transparency Act. Passing these critical bills would bring tremendous certainty and relief to the local banks that have been hit so hard postrecession, and I am committed to doing everything I can to see that they are signed into law.

Congressman Steve Womack at a “Coffee with the Congressman” event in Bella Vista.

August April 2015 | The Arkansas Banker

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Will you be sponsoring legislation?

Absolutely. And I have. The Holding Company Registration Threshold Equalization Act of 2015 (H.R. 1334), which I briefly mentioned earlier, has already successfully — and unanimously — passed the House. If taken up and passed by the Senate and signed into law, this bill would extend some much-needed Jumpstart Our Business Startups (JOBS) Act relief to savings and loan holding companies (SLHCs) by correcting an oversight and setting the same shareholder registration thresholds that the JOBS Act established for banks and bank holding companies. The legislation previously passed the House as H.R. 801 on January 14, 2014, and as H.R. 37 — Title III on January 14, 2015. I am hopeful that the third time is the charm and that the Senate will quickly pass this legislation, allowing SLHCs across the country to focus on serving the lending needs of their communities rather than unintended overregulation from Washington.

Building on that success, I was able to generate support for the passage of the Womack Amendment, by voicevote, to the Financial Services and General Government (FSGG) Appropriations bill. This amendment requires the CFPB to conduct a new, transparent, peer-reviewed study to replace the procedurally and substantially flawed Arbitration Study that was required by Dodd-Frank and released by the Bureau in March — prior to any CFPB rulemaking. The study done lacked transparency, equality, and comprehensiveness, and ignored requests from stakeholders and experts to help develop its metrics. The greater concern is that this flawed study will form the basis for a wide-ranging prohibition on arbitration that will impact checking accounts, credit cards, and cell phone contracts — opening the door for more frivolous class action lawsuits. My amendment seeks to halt this and take a closer look at the factors at play by directing the CFPB toward a new study that is full, fair, and credible — and perhaps most importantly, transparent. The Womack Amendment was successfully added to this year’s FSGG bill.

And I’m positive my contributions to regulatory relief for our local lenders and other job creators will not stop there.

Congressman Womack speaks with Arkansas bankers Jamie Waller, Sean Williams, Chuck Morgan, and David Bartlett during an ABA visit to Washington, D.C. in 2014.

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

I’ve been blessed with a long career of Arkansas public service that has included 30 years of service in the Arkansas Army National Guard, two terms on the Rogers City Council, 12 years as Mayor of Rogers, and now, five years as the Third District’s U.S. Representative.

In my newest role, I’ve proudly brought the mind of a mayor to Congress. I’ve believe it has given me a unique perspective within the Arkansas Delegation – and even in Congress in its entirety – and the ability to understand how legislation and relationships can help build, strengthen, and bring long-term prosperity to Arkansas’s communities.

What do you do on the weekends?

When I’m not in Washington or traveling throughout the Third District, on weekends I enjoy hunting and fishing with my sons; playing putt-putt with my eight year-old grandson, Liam, or catching one of his soccer games; taking my two year-old grandson, Kaden, to the park; and just relaxing with my wife, Terri, and our dog, Cooper.

What are the last two books you’ve read?

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

The Bible

The best way for individual bankers to get a hold of me to let me know their thoughts on a bill or simply the thoughts that happen to be on their minds is through the contact form on my website: www.womack.house.gov/contact.

...and the last two movies you’ve seen?

The Arkansas Banker | August April 2015 2015

Ally by former Israeli Ambassador Michael B. Oren

American Sniper Jurassic Park with my grandson, Kaden

Compliance Conference

Register Now!

Join the ABA and Bankers Assurance for the 2015 ABA Compliance Conference, September 22-23. Hot topics and upcoming changes in consumer compliance will be on the agenda, to ensure that Arkansas financial institutions are ahead of the curve. There will be an array of knowledgeable speakers, as well as representatives from each regulatory agency.

The 2015 Compliance Conference includes two topic modules: Lending Compliance, scheduled for September 22 and the morning of September 23; and Deposit Compliance, to be held the afternoon of September 23. Attendees may choose to register for either or both modules, according to the needs of their individual institutions.

MODULE 1: LENDING COMPLIANCE Commercial Lending Compliance Flood TRID CRA

Regulatory Panel Compliance Training Program Fair Lending

Who Shoul d Attend?

BSA

Offic Comp ers liance Offi cers Intern al Audito rs Senior Manage ment

MODULE 2: DEPOSIT COMPLIANCE Regulatory Panel Amended Rules

Garnishments Prepaid Card Compliance

FOR MORE INFORMATION

For details and registration information, please log on to www.arkbankers.org, or contact the ABA Professional Development Department at 501.376.3741

Tuesday, September 22

Wednesday, September 23

8:00 a.m.

Registration & Continental Breakfast

8:00 a.m.

Continental Breakfast

9:00 a.m.

My Head has Been Spinning since January 2014…Have We Missed Anything?

Shaun Harms, Bankers Assurance, LLC

8:45 a.m.

Keys to a Successful and Effective Compliance Training Program Patsy Parkin, Butler | Snow

10:00 a.m. Compliance in Commercial Lending?

Don’t Let This Catch You!

Heather Vaughan, Bankers Assurance, LLC

9:45 a.m.

CRA, Hot Topics and Tripwires to Avoid Joe Detchemendy, Federal Reserve

10:45 a.m. Coffee Break

11:00 a.m. Flood

Patsy Parkin, Butler | Snow

11:00 a.m. Fair Lending

Everett Fields, FDIC 12:00 p.m. Lunch 1:00 p.m. Last Chance for TRID: Are We Ready?

Shaun Harms, Bankers Assurance, LLC 2:00 p.m. E-Sign the Effect of TRID

Bryan Reaves, Superior Consulting, LLC 3:00 p.m. Refreshment Break 3:15 p.m.

TRID Panel: Common Concerns and Answering Questions Shaun Harms, Bankers Assurance, LLC Bryan Reaves, Superior Consulting, LLC Patsy Parkin, Butler | Snow

4:30 p.m. Adjourn

10:45 a.m. Coffee Break

12:00 p.m. Lunch 1:00 p.m.

Regulatory Panel Polly Radford, FDIC Joe Detchemendy, Federal Reserve Michelle Mitchell, OCC

2:00 p.m. Privacy: Are Our Procedures

Adequate for the Amended Rules?

Shaun Harms, Bankers Assurance, LLC 2:30 p.m. Refreshment Break 2:45 p.m. Garnishments

Polly Radford, FDIC 3:15 p.m. Prepaid Card Compliance TBD 4:15 p.m. Adjourn

August April July 2015 | The Arkansas Banker

13

Let Your Voice Be Heard in Washington Arkansas Bankers Association Annual Washington Visit September 15-17, 2015

Register Now!

The Arkansas Bankers Association Annual Washington Visit will take place September 15-17, 2015. Each year, a group of Arkansas bankers travels to Washington to attend meetings with the American Bankers Association, regulators, and the Arkansas Congressional Delegation.

Arkansas Congressional Delegation

The Annual Washington Visit is one of the most valuable forums that ABA presents, and members are encouraged to take part.

It provides bankers the opportunity to share your concerns on pending legislation, regulations, and policies, face-to-face with the people responsible for writing them.

In addition to scheduled Capitol Hill Visits, this year the group will have a unique opportunity to converse with delegates over dinner at President Lincoln’s Cottage on Tuesday evening. There will also be a chance to connect with Legislative staff members during a cocktail reception on Wednesday evening.

SENATOR

SENATOR

REPRESENTATIVE

John Boozman

Tom Cotton

Rick Crawford

REPRESENTATIVE

REPRESENTATIVE

REPRESENTATIVE

Fort Smith (R)

Dardanelle (R)

In an effort to engage Emerging Leaders in the Annual Washington Visit, the ABA will provide a $750 stipend for up to six Emerging Leaders who wish to make the trip. These stipends will be assigned on a first-come, first-serve basis.

1st District Jonesboro (R)

A Historic Evening with Members of the Arkansas Delegation...

Join us for an evening at President Lincoln’s Cottage with members of the Arkansas Congressional Delegation. This event will allow Arkansas bankers the opportunity to spend one-on-one time with their delegates with a stunning historic backdrop on Tuesday, September 15. The evening’s events include: • Cocktail Reception on the Verandah of the Home • In-depth Tour of President Lincoln’s Cottage • Dinner on the Cottage Lawn

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The Arkansas Banker | August 2015

French Hill 2nd District Little Rock (R)

Steve Womack Bruce Westerman 3rd District Rogers (R)

4th District Hot Springs (R)

2015 Washington Visit Agenda Tuesday, September 15, 2015 3:00 p.m.

Check-in at Mayflower Renaissance Hotel

5:45 p.m.

Depart the Mayflower Hotel for Dinner

6:30 p.m.

Reception, Tour, & Dinner President Lincoln’s Cottage Cocktails at 6:30 p.m. | Tour at 7:00 p.m. | Dinner at 7:45 p.m.

Wednesday, September 16, 2015 8:30 a.m.

AmBA Breakfast Briefing Alexander Boardroom, 7th Floor 1120 Connecticut Ave., NW

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10:30 a.m. CFPB Briefing

Alexander Boardroom, 7th Floor

1120 Connecticut Ave., NW 12:00 p.m. CSBS Briefing & Lunch

1129 20th Street, NW, 9th Floor 1:30 p.m.

FHFA Briefing 400 7th Street, SW

3:00 p.m.

OCC Briefing 400 7th Street, SW

4:30 p.m.

Capitol Hill Visit: Senator John Boozman

6:00 p.m.

Legislative Staff Cocktail Reception Johnny’s Half Shell on the Terrace 400 N. Capitol Street, NW

Thursday, September 17, 2015 8:00 a.m.

Breakfast Congressional Panel Capitol Conference Room B-369 Rayburn

10:30 a.m. Capitol Hill Visit: Senator Tom Cotton

Registration Details

Registration is complimentary and includes visits to the Office of the Comptroller of the Currency, Conference of State Bank Supervisors, Consumer Financial Protection Bureau, Federal Housing Finance Agency, and American Bankers Association briefing, visits to the offices of the U.S. Senators and Representatives from Arkansas, dinner at President Lincoln’s Cottage, and a reception at Johnny’s Half Shell.

More Information

If you would like additional information about the Washington Visit, please contact Stuart Thalheimer at 501.978.3605.

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August 2015 | The Arkansas Banker

15

(Far Left) ABA Chairman Robert Taylor, Parkway Bank, Rogers, welcomes attendees to the 2015 Bank Management Seminar.

ARKANSAS BANKERS ASSOCIATION

BANK

(Left) ABA President & CEO Bill Homes encourages bankers to attend the Annual Washington Visit.

MANAGEMENT

SEMINAR

(Far Left) ABA ChairmanElect Sean Williams, First National Bank of Wynne, introduces the Saturday morning speakers.

AUGUST 6-8, 2015 The 78th Annual Arkansas Bankers Association Bank Management Seminar was held in Rogers, August 6-8, with more than 200 bankers and guests in attendance.

Topics at this year’s events ranged from tailoring your bank to suit the evolving needs of your customer, to tailoring regulation. Speakers included Dr. Kevin Streff, Secure Banking Solutions; Eric Cook, WSI Digital Marketing; Larry Seyfried, American Bankers Association; and Lt. Colonel Robert Darling.

(Left) ABA VP / Director of Government Relations Ava Franks discussed the importance of grassroots during election season.

Fly-Away for Two Winner

The 2016 Bank Management Seminar has been scheduled for August 3-5, 2016 at the Hilton Sandestin Beach Golf Resort & Spa in Destin, Florida.

Click here to see more photos from the 2015 Bank Management Seminar!

16

The Arkansas Banker | August 2015

Gary Edwards, BKD, Little Rock; Ken Rossi, BKD, Little Rock; and Aaron Gamewell, ABA, Little Rock; presented Stanhope Wilkinson, Farmers Bank, Greenwood, with the grand prize Fly-Away for Two.

Bank Management Seminar

Danny Williams & Gary Ch ild of Integrity First Bank, an ers Phil Baldwin of Citizens d Bank

(Above) Jeb Mills, Arvest Bank, Fayetteville; Bill Holmes, ABA, Little Rock; Mary Beth Brooks, The Bank of Fayetteville, Fayetteville; and Tim Brooks.

(Upper Left) John Freeman, Evolve Bank & Trust, Jonesboro; Fred Vining, Farmers Bank & Trust, Magnolia; and Terri Vining.

(Left) Cathy Owen, Eagle Bank and Trust, Little Rock; Steve Owen; Shannon Duke; and Troy Duke, Gateway Bank, Rison.

Representing Southern Pioneer Insurance Companies at the reception were Bryan Pinnell, Anthony Grant, Laura Pinnell, Ben Hyneman, Camille Turner, Janet Hyneman, Sarah Hergert Franke, Mary Jo Bradberry, and Jim Bradberry.

Representing First National Bankers Bank at the reception were Liberty Lee, Cara Lank, Grant Gordy, Rene’ Julian, Charlene Julian, Jay Wisener, Lindy Franks, Jim Franks, Sheila Tibbetts, and Craig Tibbetts.

Economics Arkansas Report

Sue Owens, Executive Director of Economics Arkansas, reported that, in total, Arkansas banks provided $52,150 in support to the to the financial education program over the past year.

ve Bo Mattingly ga the annual port Razorback Re

(Right) Dustin Seaton, Gifted & Talented Coordinator for Prairie Grove School District and AP Government and Politics Teacher, was among the 1,700 teachers who utilized Economics Arkansas for training and curriculum over the past year. Seaton introduced his students to economics through the “Economics of Sports.”

August 2015 | The Arkansas Banker

17

Eric Cook

Eric Cook discussed the digital marketplace, how rapidly technology has evolved, and what banks need to do to keep up.

He honed in on the different forms of social media, and how to effectively communicate with customers through each.

Dr. Kevin Streff

Cook is a Digital Strategist at WSI Digital Marketing.

Dr. Kevin Streff stressed that banks need to “manage the gap” — to find out where their individual bank falls in terms cyber security, identify the gaps, and fix them accordingly. He also reminded bankers that the cyber security assessment isn’t a “one-and-done” kind of thing, it needs to be a continual process.

Troy Duke, Gateway Bank, Rison; and Judy Lawton, Heartland Bank, Little Rock, take part in a mobile poll during Cook’s presentation.

Dr. Streff is the founder and managing partner of Secure Banking Solutions, and the Director of the Center for Information Assurance at Dakota State.

Razorback Ticket Winners

The annual Razorback Ticket drawing was changed up this year... one set of four tickets was given away for each Fayetteville home game. Aaron Gamewell, ABA, and Trey Deupree, Equias Alliance, presented the prizes.

Chris Lehman, First Delta Bank, Marked Tree, won tickets to see the Razorbacks play UTEP on September 5.

Charlie Cross, Cornerstone Bank, Eureka Springs, won tickets to see the Razorbacks play Texas Tech on September 19.

Larry Wilson, First Arkansas Bank & Trust, Jacksonville won tickets to see the Razorbacks play Auburn on October 24.

David Hardke, Farmers & Merchants Bank, Stuttgart, won tickets to see the Razorbacks play UT Martin on October 31.

Mike Cross, Farmers Bank & Trust, Magnolia, won tickets to see the Razorbacks play Mississippi State on November 21.

Mark Roberts, Malvern National Bank, Malvern, won tickets to see the Razorbacks play the Missouri Tiegers on November 27.

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The Arkansas Banker | August 2015

Lt. Colonel Robert Darling

Bank Management Seminar

Lt. Colonel Robert Darling gave a firsthand account of what it was like to be in the President’s bunker during the 9-11 terrorists attacks — from the initial shock of what was taking place, to the tactical decisions that were made throughout the course of that day.

Larry Seyfried

Larry Seyfried gave an overview of the political climate in Washington, D.C. He noted that Arkansas has a “fantastic delegation...they’re all in a great position to help not only your state and their districts out, but also our industry.” Seyfried also commented that the Arkansas delegates are all well informed on the issues.

He ended his presentation with a look at the upcoming presidential race, and gave bankers a rundown of the political front-runners, as well as the lesser-known candidates who may be making a solid presidential run.

Rodney Shepard, Arvest Bank, Fort Smith, chats with Lt. Colonel Darling following his presentation.

Seyfried is the Senior Vice President of Congressional Relations at the American Bankers Association.

Group Cycling Event

Southeastern Melody Vollman,nce & Jay Wisener, Commercial Fina nkers Bank First National Ba

Taking part in this year’s group cycling event were TJ Anderson, Arkansas State Bank Department, Jonesboro; Aaron Gamewell, ABA, Little Rock; Jim Cargill, Arvest Bank, Little Rock; Amy Pierce, Capital Bank, Little Rock; Melody Vollman, Southeastern Commercial Finance, Memphis, Tenn.; Federico Suarez, Security BankCard Center, Norman, Okla.; Jay Wisener, First National Bankers Bank, Little Rock; and John Householder, Arkansas State Bank Department, Jonesboro.

Aaron Gamewell, ABA, Little Rock; and John Householder, Arkansas State Bank Department, Jonesboro, pedal along Pinnacle Parkway in Rogers.

Jim Cargill, Arvest Bank, Little Rock, gears up for the group cycling event along the Razorback Regional Greenway trail.

August 2015 | The Arkansas Banker

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Golf Tournament at Dogwood Hills Golf Course Golfers braved the heat for the annual BMS Golf Classic on Friday, August 7, at Dogwood Hills Golf Course in Bella Vista.

Despite the high temps, the crew managed to get in a good round of golf in Northwest Arkansas.

SBS and Jeff Spann of on of Monty Harringt & Trust Farmers Bank

Fiserv sponsored lunch at Dogwood Hills Golf Course.

Representatives David Link, Hoover, Ala., and Brett Scholder, Plymoth, Minn., were on hand to chat with the golfers.

TeleComp sponsored drink carts at the golf course. The crew kept golfers refreshed, and handed out goodies on the course.

Golf Tournament Winners

First Place winners were Chris Gosnell, Farmers Bank & Trust Co., Magnolia; Greg Connell, Farmers & Merchants Bank, Stuttgart; Gary Edwards, BKD, Little Rock; and Wes Samson, BOSC, Inc., Overland Park, Kan. (not pictured). Presenting the golf awards was Bruce Johanson of The Johanson Group.

20

Bennie Westphal, Foundation Life Insurance, Fort Smith; and Mark Roberts, Malvern National Bank, Malvern, get ready to hit the course.

Second Place winners were Rene’ Julian, First National Bankers Bank, Little Rock; Mike Willard, Arvest Bank, Prairie Grove; and Dale Cole, First Community Bank, Batesville (not pictured). Presenting the golf awards was Bruce Johanson of The Johanson Group.

The Arkansas Banker | August 2015

Third Place winners were Grant Gordy, First National Bankers Bank, Little Rock; John Womack, Arvest Bank, Little Rock; Brad Chambless, Farmers & Merchants Bank, Stuttgart; and Michael Neathery, BKD, Little Rock (not pictured). Presenting the golf awards was Bruce Johanson of The Johanson Group.

Bank Management Seminar Thank You Spouse & Guest Event at Crystal Bridges to our Sponsors BKD, LLP

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CELERIT

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Friday Breakfast Sponsor

DD&F CONSULTING

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Attending the Spouse & Guest Event at Crystal Bridges Museum of American Art were Kathleen Cargill, Sue Owens, Connie Hudson, Becky Womack, Becky Roberts, Lindy Franks, Charlene Julian, Pam Holt, Ja Chambless, Joann West, Judy Taylor, Janet Harrington, Rita Holmes, Cappi Morgan, Karen Love, Holdyn Brown, Allison Brown, Shaun Lampkin, Leslie Williams, Kelby Williams, and Terri Vining. Not Pictured: Lois Freeman, Sheila Harrell, Susie Scott, and Glenda Smith.

Mobile App Banner Ad Tote Bags Razorback Tickets

FIRST NATIONAL BANKERS BANK

Shaun Lampkin, Terri Vining, Karen Love, Lois Freeman, Susie Scott, Becky Roberts, and Glenda Smith.

Reception Co-Sponsor

FISERV

Golf Lunch

JOHANSON GROUP

Saturday Breakfast Golf Prizes

SECURE BANKING SOLUTIONS Mobile App Sponsor

Leslie Williams, Spouse Event Hostess, & Guest and her daught er Kelby

SOUTHERN PIONEER PROPERTY & CASUALTY INSURANCE COMPANY

Reception Co-Sponsor

TELECOMP

Drink Carts

Rita Holmes, Judy Taylor, Charlene Julian, Glenda Smith, Terri Vining, Lindy Franks, Janet Harrington, and Sheila Harrell.

The group enjoyed a guided tour, as well as time on their own to explore the Crystal Bridges Museum of American Art.

rt

& Melissa Seiwe Maureen Drozd surance of CNA In

August 2015 | The Arkansas Banker

21

125 Years of the Arkansas Bankers Association:

Surviving the Great Depression

The following is an excerpt of the ABA President’s Annual Address from May 9, 1935, by Jo Nichol, President of Simmons National Bank in Pine Bluff, and ABA President from 1934-1935.

The members of the Arkansas Bankers Association have seldom been in better spirits, and with better reason, than today.

In these past eighteen months, Arkansas, like the rest of the country, has experience a remarkable improvement in business conditions, and one which I believe is likely to continue. Under the circumstances, I think it will be worth our while to consider certain of the factors which have contributed to these gains and appraise the prospects of the future. It would seem logical to develop the discussion with due regard to the chronology.

The Bank Holiday As every banker remembers vividly, almost the first of President Roosevelt’s official acts was to declare a bank holiday.

Inasmuch as that bold and drastic action has exerted so profound an influence upon the nation’s business, we may well begin with it.

The business expansion which culminated in 1928 and 1929 had been followed by a collapse as complete as that of 1873 or 1893. Industry was at a standstill and so was trade. Agriculture, which had not recovered from the effects of the 1920 disaster, was flat on its back. Widespread unemployment had created a Relief Problem with which the states and their political sub-division could not cope. A frightened public was besieging the banks to demand money and banks everywhere were closing their doors.

Because banks must finance business, the new Administration had a mandate to bring business back, and he undertook to do so in the only possibly way. He closed the banks for examination and then reopened them only as they were certified sound. He then put through Congress the Banking Act of 1933, which not only provided for much more effective

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The Arkansas Banker | August 2015

government regulation and supervision, but which also created the system of Federal Deposit Insurance, which became operative in January, a year ago. At the same time the Government-owned Reconstruction Finance Corporation, which had been loaning largely to banks on slow assets, was authorized to invest its funds in their preferred stock and thus largely increase the capital assets upon which loaning power is to some extent conditioned. This combination of measures went far to restore the public’s confidence in banks, a confidence which as been reflected in substantial deposit gains the country over; gains which have been particularly marked in the past year.

Helpful Federal Legislation But even before the Banking Act of 1933 went to the White House for the President’s signature, the Congress had passed laws designed to encourage agriculture and to bring order out of business chaos.

The agricultural legislation provided for processing taxes on farm products, the proceeds of which were made available for farm relief. Moreover, the Department of Agriculture was given control over farming operations designed to prevent the disastrous production of surpluses which had forced prices down so far as to impoverish millions of farmers. The result was a sharp gain in farm income in 1933, and a still more marked increase last year, even in the face of a drought of unprecedented severity.

Surpluses have been brought under control. Grain is far above the five-year average, and so is cotton. Of course, the damage of the past decade has not been repaired, but it is obvious that the nations farmers are on their feet again, and that they can look forward once more to the prosperity which we used to think was the normal thing in this country.

While the agricultural Adjustment Administration has been busy with the farmers’ problems the National Recovery Administration, set up under the Industrial Recovery Act of 1933, has been bringing order to businesses. Codes of fair practice have been adopted in every

Jo Nichol branch of industry and trade. Of course, not everything has worked out smoothly and there are still any number of details to be worked out and worked over, but we may judge of the basic soundness of the program by the fact that 1934 was a better year than 1933 and far above 1932.

The Banking Act of 1933 has now been in operation for practically two years. It has been tried, fairly tested, and in my opinion, has not been found wanting, though slight modifications might be made for the better without impairing its soundness and successful operation as a permanent act. I am not unmindful of the fact that the Act does not meet with the full approval of the bankers of the country. But it is now the law and we should support it to the letter and thank the New Deal for the numerous good features embodied therein, as well as the benefits that have accrued, by lending our every effort to make it a thorough success and do our part toward ending the depression.

My high appreciation and gratitude to its authors and my most profound thanks to that great and worthy leader who saw fit to approve it, our President!

The bankers of the country have, during the past few years, been subjected to

criticism, and in some instances insulted and threatened. I have never reconciled myself to the belief that these criticisms were just or warranted or that the bankers of the country were unworthy of the confidence and respect they had always maintained prior to 1933.

We should forget the criticisms and remember that we have a duty to perform; namely, that of faithfully guarding the trust imposed upon us as men of integrity, ability, and leaders in our respective communities.

As I now see it, the confidence of the public has very largely been restored. The public itself realizes its responsibility to the community and has since realized that the bank and banker are public benefactors and without them they cannot go forward in the world’s work as their predecessors have done, and as their forefathers would have had them do. We should not falter in our efforts to maintain this confidence and to so conduct ourselves as to warrant the faith and esteem of the public, having in mind at all times that honesty is the best policy, and that we must base our every action on a principle of right and never reckon the cost.

The Federal Reserve System The Federal Reserve System has been, is now, and ever will be a success if permitted to operate as the law now prescribes and not as the 1935 Act now provides. I am, therefore, of the opinion that Title 2 of the Banking Act of 1935 should be amended or eliminated entirely and for several reasons.

First, because there are at this time no existing conditions or contingencies that would warrant a change in the policy of a system that has function so admirably and successfully.

Second, that any changes in the law affecting the Board of Management at this time would be very detrimental to the system.

everything in its power to preserve the dual system of State and National Banks and the integrity of the so-called country bank unit.

You have your own opinions regarding this much talked of subject, and I deem it best at this time not to add fuel to the flame of debate.

Capital Structure of Banks Considerable thought and attention and study have been given to capital structure and its ratio to deposits. The argument, I believe, is logical and sound, and I have faith in the belief that should it become part of the Banking Act of 1935, it would have quite a stimulating effect and would meet with much favor in the mind of the public.

Repeal or Modify Postal Savings Since the Federal Deposit Insurance Corporation has now fixed the rate of interest that we may pay on deposits and inasmuch as deposits are now insured in all members of the FDIC up to $5,000, I see no reason why the Postal Savings System Act should not be repealed.

Certainly, if it is not deemed advisable to repeal the Act at this time, the rate of interest should be reduced to below that now being paid by member banks.

A rate of 1 percent has been suggested.

I believe the suggestion well timed and do not think the rate is out of line. Surely the Government is not going to continue competition with the banks of America who are so nobly responding to the cause of the NRA and doing their level best to end the depression

I am not unmindful of the fact that there are eminent bankers who will disagree with me on this subject, but I am of the opinion that this ratio should be that of 1 to 10.

Where the capital structure of a bank is below this ratio the additional capital should be subscribed for and owned locally. That is, in the bank’s own community. If it is not convenient or possible for this additional capital to be obtained in that manner, then the facilities of the RFC should be resorted to and the capital stock increased either by the sale of preferred stock or the sale of capital notes, the latter being the most preferable of the two.

Opposed to Branch Banking I am now and have always been opposed to branch banking. A progressive community cannot deal with foreign capital and foreign representatives with that degree of satisfaction and certainty that they could were they advising or conferring with men thoroughly familiar with conditions or affairs in their respective localities.

Banks Highly Liquid The bankers of Arkansas have many things for which to be thankful, and it is highly pleasing and gratifying to me, and I am sure it is to you, to realize that never before in the history of Arkansas have bankers been more cooperative and loyal to a fair code of competition than they are today. The liquidity, too, is far above that of a great many of the other agricultural states and their soundness is now almost beyond question. ...We are not out of the woods yet, but we can see the light through the trees again, and we advance toward it with a surer footing and a reasoned confidence. Of the future, I am not afraid!

Cotton workers migrating through Crittenden County circa 1936.

Third, that the member banks — the stockholders — are well pleased with the service rendered as well as the return on their investment.

I am a firm believer in the American system of banking as now constituted and believe this Association should do

August 2015 | The Arkansas Banker

23

PROFESSIONAL DEVELOPMENT ABA Compliance School

The 2015 ABA Compliance School was held July 27-30 at the Crowne Plaza in Little Rock with a total of 38 bankers in attendance.

Taught by Denny Deischer and Chuck Lewis, both of the Missouri Bankers Association, the four-day workshop was broken into “modules” that focused on credit compliance, operations, and hot topics.

(Upper Right) Crickett Broomas, One Bank & Trust, Little Rock; Glenda Barton, First State Bank of DeQueen, DeQueen; Kim Morris, Horatio State Bank, Horatio; Charla Conatser, Horatio State Bank, Horatio; Bonnie Pruitt, Bank of Prescott, Prescott; and Julie Coe, Bear State Bank, Jonesboro.

(Lower Right) Traci White, Security Bank, Stephens; Robert Loe, Farmers Bank & Trust, Texarkana; Beth Smith, ool instructor Compliance Sch Heartland Bank, Little Rock; Chuck Lewis Ashley Roach, Stone Bank, Mountain View; Renee Korkis, Stone Bank, Mountain View; and Barbara Barnes, Smiley Technologies, Little Rock.

SW Graduate School of Banking Announces 2015 Grads The SW Graduate School of Banking, Southern Methodist University, held its 2015 commencement on June 5 for the Class 56, the 56th class to fulfill the requirements of this graduate program renowned for its dynamic faculty, challenging curriculum, and exceptional student body from throughout the world. Marci Armstrong, Ph.D., Associate Dean of the Cox School of Business at SMU, gave the commencement address; Richard Bowen, whistleblower and speaker on accountable leadership, was this year’s keynote speaker. The top graduates received more than $20,000 in merit-based scholarships during their three years at SWGSB/SMU. Among the graduates were: Jonathan Paul Lowe, First Federal Bank of Little Rock; Robert McDonald, Centennial Bank of Jacksonville; and Charles Wilkinson, Farmers Bank of Greenwood.

The 2015 graduates represent more than 51 financial institutions in 10 states. They each have at least five years of banking experience, either in a financial institution or a federal or state regulatory agency. Most hold a senior level post in their organization, or are on a fast track within their management ranks. They have a fundamental knowledge—through education or experience—of bank operations, credit administration, accounting, financial statement analysis, and economics. These

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The Arkansas Banker | August 2015

The 2015 graduates of SWGSB at Southern Methodist University.

banking professionals also come to SWGSB with many past accomplishments and enthusiastic recommendations from their institutions’ leadership.

The graduate school’s sponsoring partners include the Arkansas, New Mexico, Oklahoma and Texas bankers associations, the Independent Bankers Association of Texas, and SMU.

MEMBER NEWS ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Branch Bank Application An application filed by Bank of the Ozarks, Little Rock, Pulaski County, Arkansas, to establish a branch banking facility at the southeast corner of Joyce Boulevard and Vantage Road, Fayetteville, Washington County, Arkansas, has been approved. July 13, 2015.

An application filed by Bank of the Ozarks, Little Rock, Pulaski County, Arkansas, to establish a branch banking facility at Lot 4, Ravenwood Development, Phase 3, Siloam Springs, Benton County, Arkansas, has been approved.

July 13, 2015.

An application filed by Bank of the Ozarks, Little Rock, Pulaski County, Arkansas, to establish a branch banking facility at the southeast corner of SH 412 and Gutensohn, Springdale, Washington County, Arkansas, has been approved.

July 13, 2015.

An application filed by First Community Bank, Batesville, Independence County, Arkansas, to establish a branch banking facility at 306 Elder Street, Bay, Craighead County, Arkansas, has been approved.

July 13, 2015.

Charter Conversion Application An application filed by Ozark Heritage Bank, N.A., Mountain View, Arkansas, to convert from a national bank to a state-chartered bank, to be known as Stone Bank, Mountain View, Arkansas, has been approved. August 4, 2015.

Merger Application An application to merge Bank of the Carolinas, Mocksville, North Carolina, with and into Bank of the Ozarks, Little Rock, Arkansas, has been approved. August 4, 2015.

Arkansas Bankers Nominated to Serve on 2016 AmBA Committees Congratulations to the following Arkansas bankers, who have been nominated to serve on national committees through the American Bankers Association: Dave Dickson, President of Union Bank & Trust Company in Monticello, will serve on the AmBA Membership Council.

Jeff Lynch, President and CEO of Eagle Bank and Trust Company in Heber Springs, will serve on the AmBA Banker Advocacy and Grassroots Committee.

Joe Miles, President of Integrity First Bank in Mountain Home, will serve on the Community Bankers Council.

Karla Payne, Executive Vice President and CFO of Arvest Bank Group in Fayetteville, will serve on the Accounting Administrative Committee.

William Roehrenbeck, Senior Vice President of PNC Bank in Little Rock, will serve on the Mortgage Markets and Lending Technology Administrative Committee.

Frank Scott, Vice President of First Security Bank in Little Rock, will serve on the Government Relations Council Administrative Committee.

Rodney Shepherd, President and CEO of Arvest Bank in Fort Smith, will serve on the Community Bankers Council.

Farmers and Merchants Bankshares Signs Definitive Agreement to Acquire Bankshares of Fayetteville The Farmers and Merchants Bankshares, Inc. and Bankshares of Fayetteville, Inc. have announced a definitive agreement in which The Farmers and Merchants Bankshares, Inc. will acquire Bankshares of Fayetteville, Inc. Under the terms of the agreement, Bankshares of Fayetteville’s shareholders will receive all cash for their shares.

Completion of the transaction is subject to certain closing conditions, including regulatory and shareholder approval. Following the successful completion of these steps, it is anticipated the transaction will close during the fourth quarter of 2015. The Bank of Fayetteville will retain its name and will continue to operate in all existing branch locations.

The announcement was made by Farmers and Merchants Bank President and Chief Executive Officer Gary Hudson and The Bank of Fayetteville President and Chief Executive Officer Mary Beth Brooks.

“This is an important event for our bank,” said Brooks. “It will ensure that our customers continue to enjoy their relationship with their community bank and will allow them access to a broader choice of products and services and improved technology. This transaction will also provide growth opportunities for our employees, maximize value for our shareholders, and ensure a continued investment in our community.

These are two like-minded, community-focused institutions joining together to make a greater

impact not only on our local communities but also in the level of service and technology that we can offer our customers.”

“We are very pleased with the opportunity to add The Bank of Fayetteville to the Farmers and Merchants Bank family,“ said Hudson. “We share similar values and business philosophies of community involvement and commitment.

We have full faith that combining the financial strength of our organizations will serve the customers of both institutions well,” he added.

Farmers and Merchants Bank, with approximately $701 million in total assets, currently operates in seven Arkansas communities: Stuttgart, DeWitt, Marianna, Hazen, Des Arc, Perryville and Morrilton.

The Bank of Fayetteville, with assets of approximately $343 million, has five branches in Fayetteville as well as branches in Farmington, Prairie Grove and West Fork.

“We are looking forward to becoming part of the great community of Fayetteville,” said Hudson.

“During our 70 year history, we have earned a reputation for community service and investment that fits well with the philosophy of The Bank of Fayetteville. Our board and officers have many decades of commitment to meeting the financial needs of our customers as well as our stockholders.”

Upon successful completion of the acquisition, total assets will exceed one billion dollars.

August 2015 | The Arkansas Banker

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BANKER NEWS & MOVES COMPTON TO JOIN SIMMONS FIRST AS EXECUTIVE VICE PRESIDENT- CHIEF PEOPLE OFFICER AND ASSISTANT GENERAL COUNSEL Jena Compton will join Simmons First National Corp. in September as Executive Vice PresidentChief People Officer and Assistant General Counsel. Compton has served since November 2012 as the Senior Vice President for Human Resources for Acxiom Corp. in Little Rock. She joined Acxiom in 2000 as a staff attorney.

Compton received her bachelor’s degree in psychology from the University of Arkansas at Fayetteville in 1995, graduating

summa cum laude. She received her law degree from the University of Arkansas Law School with high honors in 1997.

all compensation committee meetings and regularly made presentations to the Acxiom board.

At Simmons, Compton will be involved in all areas of human resources. These will include organizational effectiveness, talent acquisition, talent management, benefits, compensation, leadership development and employment compliance. She will be charged with implementing a reorganization plan for the human resources and training departments while providing advice and counsel on employment law matters.

She will play a key role in the business achieving its goals with a focus on the workforce.

“Jena brings vast experience in the areas of human resources, leadership development and organizational effectiveness to our company,” said Simmons chairman and CEO George Makris. “We look to Jena to help us transform our people practices and make us one of the best places to work in central Arkansas and all the states in which we do business. She will play a vital role in improving our culture and developing our talent as our company continues to grow.”

At Acxiom, Compton managed a multimillion-dollar benefits and human resources budget while leading almost 100 employees in six countries. She acted as the company representative in

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The Arkansas Banker | August 2015

HUDGINS NAMED AVP/LOAN OFFICER FOR CORNERSTONE BANK IN HUNTSVILLE Jason F. Tennant, Executive Vice President and Chief Lending Officer, Cornerstone Bank, has announced the appointment of Autumn Hudgins to Assistant Vice President/ Loan Officer at the bank’s new office in Huntsville. Hudgins will work with all phases of lending, with an emphasis on mortgage and consumer lending. She will also assist with public relations, product promotions, bank sponsorships and community relations for all of Madison County.

Hudgins, who has been with the bank since August 2003, has worked in various areas of the bank including Deposits, Loans and Marketing. Prior to this promotion she was the Administrative Assistant to the President & CEO. Tennant stated, “Autumn has been a tremendous ambassador for our bank during her career and it is always a joy to promote a deserving individual from

within our bank family. As our bank has continued to enjoy tremendous growth, this position will help us facilitate better communications and relations with the clients and communities we serve. She will be a great addition to an already strong team of bankers in our Huntsville Market”.

Hudgins has a degree in Advertising & Public Relations from East Central University in Ada, Oklahoma, having gotten her undergraduate degree in 2000. She is an Alumni of Carroll County Leadership and has served as Team Member, Team Leader and Publicity Chair for American Cancer Society Relay For Life in Carroll County and is a Board Member of the Single Parent Scholarship of Northwest Arkansas. She has two children; Anna-Claire, age 10, and Jackson, age 6.

THOMPSON NAMED EXECUTIVE ADMINISTRATIVE ASSISTANT FOR THE PRESIDENT/CEO Charles T. Cross, President & CEO, Cornerstone Bank has announced the promotion of Leah Thompson to Executive Administrative Assistant for the President/CEO. Ms. Thompson has been with the local bank two years and has most recently served as Branch Manager of the Berryville branch facility. Leah replaces long-time assistant Autumn Hudgins who has been appointed to Assistant Vice President/ Loan Officer for the growing bank’s soon to be completed branch in Huntsville, Arkansas.

Cross stated, “I am very pleased to have the opportunity to work with someone of Leah’s caliber as we continue to grow our bank’s client base Continued on page 27

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Continued from page 26 and geographical footprint. She has proven to be a very capable banker and feel most fortunate to have her as part of our team here at Cornerstone. She is certainly deserving of this advancement within our company.”

Thompson resides in Berryville with her husband Bracken and their two children, Ella and Eva. She is a 2006 graduate of Berryville High School and a 2011 graduate of University of Arkansas with a Bachelor’s degree in Education.

She will office at the bank’s headquarters in Eureka Springs.

FERGUSON JOINS GATEWAY BANK Gateway Bank President and CEO Troy Duke is pleased to announce that Jim Ferguson, of Malvern, has joined the bank as Market President for its Malvern location.

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Ferguson, a 41-year banking veteran, has served in several positions with banks in areas including: Malvern, Benton, Arkadelphia, and Hot Springs.

He will be overseeing the dayto-day operations of the Malvern office, along with providing senior lending responsibility for the local clientele.

Jim and his wife, Rita, live in Malvern, and Jim is happy to be back banking in the local area.

MARY GOTT APPOINTED BRANCH MANAGER OF CORNERSTONE BANK BERRYVILLE BRANCH

The Arkansas

Banker 1220 West Third Street Little Rock, AR 72201 Phone 501.376.3741 Fax 501.376.9243 www.arkbankers.org

James Myatt, Cornerstone Bank Berryville Market President, is pleased to announce the appointment of Mary Gott to Deposit Services/Branch Manager for Cornerstone Bank’s Berryville location. Gott will be responsible for the oversight of the deposit services staff and daily operations of the Berryville facility.

As the bank continues to grow its client base Gott will oversee

the continued enhancement of the local bank’s deposit based products and services.

Gott joined Cornerstone Bank in 2009, where she served has a Teller, New Accounts Representative, Loan Assistant and Consumer Lender. Myatt commented, “Mary brings integrity and respect of the staff and community along with her banking knowledge. I have total confidence in her success and ability to lead our team. This promotion is well deserved and is an exciting time for our bank family as we continue to grow and expand.”

Gott and her husband Chase reside in Berryville with their son, Christian. They are members of the Berryville Christian Fellowship Church and active in the community.

ARVEST BANK IN BENTON COUNTY PROMOTES NINE Arvest Bank is pleased to announce the promotions for nine associates: “Promotions are taken to the board on a periodic basis by the respective senior managers,” said Craig Rivaldo, President and CEO of Arvest Bank in Benton County. “These are commendable associates who have displayed leadership ability, passion for the job they do and for the community they live in, are leaders of their respective departments or divisions, and exemplify the Arvest core values.”

Kelly Carlson was named as Vice President, Commercial Banker II. Carlson has been a Commercial Banker I since joining the commercial lending team in 2012. As a Commercial Banker he has originated $57 million in commercial loans throughout Northwest Arkansas. He started working for Arvest Bank in 2008.

Amie Fielder has been named Vice President, Client Advisor.

Fielder has been a Client Advisor since 2006. She started with Arvest Bank in 1996 as a teller. She holds a Series 7, Series 66 and insurance licenses as well as a Certified Wealth Strategist designation.

Michelle Hauge has been named Vice President, Client Advisor.

Hauge has been a Private Banking Client Advisor since 2006. She joined Arvest Bank in 2005 and received her Certified Wealth Designation in 2013.

Steve Gibbs has been named Vice President, Client Advisor. He joined Arvest as a client advisor in 2003.

He earned the Certified Wealth Strategist designation in 2012.

Catherine Alexander has been named Assistant Vice President, Trust Advisor. Alexander joined Arvest Bank in 2012 as a Credit Analyst and moved to the Trust Department as a Trust Advisor sometime shortly thereafter. She focuses on the trust business development for the Bella Vista market.

Ryan Mattiza has been named Assistant Vice President, Mortgage Lending. Mattiza works from the Village on the Creeks branch and has been in the top 15 lenders for Arvest over the past three years. In 2015 he is currently ranked fourth in the company with $13 million in loan production through the end of May. He joined Arvest Bank in 2009 after relocating from the Kansas City Arvest market.

Nicole LaRocco has been named Assistant Vice President, Mortgage Lending. LaRocco works from both the Village on the Creeks and the Bentonville Financial Center locations. As a Mortgage Lender over the past three years, she averages $26 million in total production annually and has been in the top 20 lenders for Arvest Bank.

Adam Robinson has been named Assistant Vice President, Consumer Lending. Robinson is a Consumer Lending Officer at the Sugar Creek branch for the past two years. He previously was a Personal Banker in Centerton.

Beverly LaFera has been named Assistant Vice President, Consumer Lending. LaFera has been a Consumer Lending Officer for 14 months at the downtown Bentonville branch. She previously was a Residential Mortgage Loan Assistant.

August 2015 | The Arkansas Banker

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The Arkansas Banker | August 2015