The Arkansas Banker August 2016

Ransomware & Your Bank

BMS Wrap-Up

Annual Washington Visit

Turning Ideas

into Real Ventures

The Venture Center is Bringing FinTech to Arkansas Volume C, No. 8 | August 2016 August 2016 | The Arkansas Banker

1

ABA Live Events ABA Professional Development

Live Events...

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

SEPTEMBER 2016

7–8

| Call Report Preparation

20

| 2016 TRID Essentials (Integrated Disclosures)

Crowne Plaza, Little Rock Who Should Attend: Anyone responsible for preparing, auditing, or signing the call report Holiday Inn Presidential, Little Rock Who Should Attend: Mortgage Loan Department Managers, Compliance Officers, Loan Officers, Auditors, and others with responsibilities for preparing, delivering, or auditing new disclosures

OCTOBER 2016

2–6

| Basic Lending School

Holiday Inn Presidential, Little Rock Who Should Attend: Loan Officers, Lending Support Staff, New and Intermediate Lending staff

12–13 | 2016 Agricultural Lending Conference

Crowne Plaza, Little Rock Who Should Attend: Arkansas Ag Lenders & Ag Officers

21

| Credit Conference

28

| Regulatory Hot Buttons Conference

24

| Advanced Consumer Lending

25

| IRA School

25

| Bank Directors I Workshop

7

| Marketing Conference

20 | Loan Write-Ups & Loan Committee Presentation Techniques

Crowne Plaza, Little Rock Who Should Attend: Commercial Lenders, Relationship Managers, Credit Analysts, Private Bankers, and Business Development Officers

24

| 2016 ABA Bank PAC Golf Tournament Pleasant Valley Country Club, Little Rock

NOVEMBER 2016

2

| Trust Conference

Hot Springs Convention Center, Hot Springs Who Should Attend: Trust Officers, Wealth & Private Banking Directors, Senior Financial Advisors, Personal Bankers, Estate Planning Attorneys, Senior Level Executives, Portfolio Managers

Crowne Plaza, Little Rock Who Should Attend: CEOs, Chief Credit Officers, Senior Lenders, Commercial Loan Officers, Credit Administrators, and Credit Support Staff Crowne Plaza, Little Rock Who Should Attend: Bank Directors, CEOs, and Executive Management

Crowne Plaza, Little Rock Who Should Attend: Consumer Loan Officers, Branch Managers, Assistant Branch Managers, Personal Bankers, Management Trainees, Collection Officers Crowne Plaza, Little Rock Who Should Attend: New Accounts Representatives, CD Personnel, Savings Counselors, Investment and Trust Personnel who are newly involved in the opening, selling, marketing, or administration of IRAs, Experienced IRA Personnel who like a slower pace workshop to cover all the new changes in a comprehensive manner Crowne Plaza, Little Rock Who Should Attend: Bank Directors, Executive Management, Senior Bank Officers, Shareholders

Crowne Plaza, Little Rock Who Should Attend: Anyone responsible for marketing, public relations, and advertising

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

2

The TheArkansas ArkansasBanker Banker || August August2016 2016

The Arkansas

Banker Volume C, No. 8 | August 2016

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

EDITORIAL OFFICE

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

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.

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.

CONTENTS COLUMNS

4

President’s Column Bill Holmes

22 Member News

DEPARTMENTS

25 Banker News & Moves 27 Classifieds 27 Index of Advertisements

6

FEATURES

Annual Washington Visit

14 Ransomeware: Holding

Your Data Hostage

By Aaron Gamewell

16 2016 Bank

Management Seminar

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.

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 Turning Ideas into Real Ventures How ten FinTech start-ups took off in Arkansas this summer, and what your bank can do to take advantage of the program.

See page 8

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

August 2016 | The Arkansas Banker

3

PRESIDENT’S COLUMN Financing Growth: Impact of Financial Regulation The U.S. Chamber of Commerce’s Center for Capital Market Competitiveness released their study June 16, 2016. They were concerned that America is still stuck in the worst economic recovery since the Great Depression, and that there is little forward momentum. In order to effect a turnaround, the country will have to depend on businesses — both large and small — to create jobs and drive new economic growth.

Businesses across this country understand and appreciate this responsibility and believe that they can, and should, be doing better. However, the facts are hard to ignore: profits are down; there are fewer entrepreneurs starting small businesses; raising capital and accessing credit is more expensive and more difficult; and capital expenditures are hitting all-time lows.

For our companies to overcome these hurdles and get back on track, they need a diverse and robust financial system. They need access to capital, cash management solutions and tools to manage day-to-day business risk.

To compile this report, the Chamber talked directly to CFOs, corporate treasurers and

CEOs who were accountable for making sure their companies have the resources necessary to manage their corporate finances and to grow their companies and communities.

The overall message they heard was that companies have many different financing needs and rely on financial institutions of all sizes. Further, the financial regulatory environment is getting worse and hampering their ability to acquire the resources they need to grow.

The report’s Executive Summary hits the nail on the head: “More than three-quarters of American companies of all sizes report that the cumulative effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other financial regulatory rules adopted over the past six years is making it harder for them to access the financial services they need. This is true among small, midsized, and even large companies and is felt most acutely in a lack of access to services helping them manage day-to-day liquidity.

This matters because the financial needs of businesses are as diverse as the American

ABA STAFF

BILL HOLMES

economy. Companies work to ensure that they have affordable access to a variety of suppliers for the financial products they need. One of the unintended consequences of the regulatory efforts to reduce risk in the financial system is that many service providers have decided to walk away from providing some products and markets.

Without a robust financial services supply chain, our nation cannot finance adequate economic growth.

Takeaways: Managing cash flow and liquidity is the biggest financial concern for companies, and companies believe current and pending regulations will make those

BARRY JACKSON

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

SVP/COO 501.978.3613 | BARRY.JACKSON@ARKBANKERS.ORG

CARLA BRINKLEY

KAMI TAYLOR COLEMAN

VP/CONTROLLER 501.978.3608 | CARLA.BRINKLEY@ARKBANKERS.ORG

AVA F. ROBERTS

VP/DIRECTOR OF GOVERNMENT RELATIONS 501.978.3606 | AVA.FRANKS@ARKBANKERS.ORG

JESSICA SAHENE

MARKETING COORDINATOR 501.978.3609 | JESSICA.SAHENE@ARKBANKERS.ORG

STUART THALHEIMER

EXECUTIVE ASSISTANT 501.978.3605 | STUART.THALHEIMER@ARKBANKERS.ORG 4

PRESIDENT & CEO BILL HOLMES

The TheArkansas ArkansasBanker Banker || August August2016 2016

VP/PROFESSIONAL DEVELOPMENT 501.978.3614 | KAMI.COLEMAN@ARKBANKERS.ORG

TRACI LOGSDON

DIRECTOR OF COMMUNICATIONS 501.978.3603 | TRACI.LOGSDON@ARKBANKERS.ORG

BRENDA SCARBROUGH

PROFESSIONAL DEVELOPMENT COORDINATOR 501.978.3607 | BRENDA.SCARBROUGH@ARKBANKERS.ORG

CAROL ALLEN

ADMINISTRATIVE ASSISTANT 501.978.3600 | CAROL.ALLEN@ARKBANKERS.ORG

operations more challenging.

One in three companies is taking unanticipated steps in response to regulations and economic changes.

Companies are concerned about accessing credit, managing day-to-day currency risk, and raising short term capital. All are necessary functions to manage cash flow, liquidity, and fund future expansion and growth.

Regulatory Impact Nearly four in every five businesses say that financial industry regulation has directly affected their financing activities.

This is no longer just a corporate issue, as businesses are increasingly being forced to pass the impact of financial regulations on to customers and employees.

Increased bank capital charges are viewed as the primary source of increased costs.

One-third of companies expect the regulatory effect to worsen in the next three years.

43% of the companies surveyed said that maintaining cash flow and liquidity are their chief concern.

50% said that increased bank capital charges have increased their costs and

ABA EXECUTIVE COMMITTEE

SEAN WILLIAMS | CHAIRMAN

challenges.

79% have seen their business affected by changes in the financial services markets.

29% have increased prices for customers and consumers as a result of changes to the financial services market (double the level seen in 2013).

76% believe that the regulations on the financial services sector will not help their company’s outlook over the next two to three years.

As a result, in an era where economic growth has been stagnant, we find that existing and additional regulation of the financial services industry must strike a better balance between its impact on business and economic growth.”

Why am I bringing this report to your attention? Because there is no one better to speak out about our regulatory struggles than the people being most affected by those regs: our customers.

It is our customers who, because of the regulatory overload, have been forced to pay increasing fees, live with tighter credit restrictions, fill out endless new forms, and most importantly, can no longer be treated like a long time member of the community, but must be treated like everyone else in a matrix equation.

DAVE DICKSON | CHAIRMAN-ELECT

Our customers all have stories to tell.

Whether they are stories of how their bank got them started in business, helped finance their home, or how they have struggled to grow their business under the new “consumer protection” environment.

These customers’ stories, and the Chamber’s report on how businesses are being affected, all need to be shared with our legislators and regulators. There is great strength in multiple factions working together to get something done.

Every one of our banks can gather these stories. Share them with your Congressman and Senators over the next several weeks while they are in their home districts. Share them with us at the ABA, and we will aggregate them and deliver them to our Delegation during our Washington Visit next month. There is nothing more effective in Washington than multiple constituent groups working together.

The Chamber’s full report is available at: www.uschamber.com/sites/default/ files/documents/files/financing_growth_ report_16_june_16.pdf.

CATHERINE OWEN | VICE CHAIRMAN

First National Bank of Wynne, Wynne

Union Bank & Trust Co., Monticello

Eagle Bank, Little Rock

JUDY LAWTON | TREASURER

ROBERT Y. TAYLOR | PAST CHAIRMAN

BILL HOLMES | PRESIDENT/CEO

Heartland Bank, Little Rock

The Citizens Bank, Rogers

ABA BOARD OF DIRECTORS

PAT ANDERSON | GROUP 5

DAVID DOWD | GROUP 1

Arkansas Bankers Association, Little Rock

JON HARRELL | GROUP 3

WILSON MOORE | GROUP 2

Simmons Bank, Pine Bluff

Cross County Bank, Wynne

Generations Bank, Rogers

Bank of America, Little Rock

PHIL BALDWIN | GROUP 2

TROY DUKE | GROUP 5

DARWIN HENDRIX | GROUP 4

JERRY MORGAN | GROUP 1

The Citizens Bank, Batesville

Gateway Bank, Rison

Bank of Delight, Delight

Focus Bank, Jonesboro

JIM CARGILL | GROUP 2

DON GIBSON | GROUP 3

J. MICHAEL JONES | GROUP 5

RANDY SCOTT | GROUP 1

Arvest Bank, Little Rock

Legacy National Bank, Springdale

Merchants & Farmers Bank, Dumas

Farmers Bank & Trust Co., Blytheville

GENE CRAWFORD | GROUP 5 First National Bank of Crossett, Crossett

CHRIS GOSNELL | GROUP 4 Farmers Bank & Trust Co., Magnolia

CHRIS LEHMAN | GROUP 1 First Delta Bank, Marked Tree

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

SCOTT HANCOCK | GROUP 3

CRAIG MOBLEY | GROUP 4

LYNN WRIGHT | GROUP 2

Centennial Bank, Fayetteville

First Financial Bank, El Dorado

Regions Bank, Little Rock

August 2016 | The Arkansas Banker

5

Arkansas Bankers Association

Annual Washington Visit

September 20-22, 2016

The Arkansas Bankers Association Annual Washington Visit will take place September 20-22, 2016. Each year, a group of Arkansas bankers travels to Washington to attend meetings with the American Bankers Association, regulators, and the Arkansas Congressional Delegation.

Emerging Leaders who wish to make the trip. These stipends will be assigned on a first-come, first-serve basis.

The Annual Washington Visit is one of the most valuable forums that ABA presents, and members are encouraged to take part. The group is currently scheduled to meet with representatives from the CFPB, FHFA, and OCC, in addition to scheduled Capitol Hill visits with the Arkansas delegation. The Annual Washington Visit provides bankers the opportunity to share your concerns on pending legislation, regulations, and policies, face-to-face with the people responsible for writing them.

The ABA’s Annual Washington Visit is an opportunity every banker should take advantage of, and all are encouraged to join our group this fall as we tell the stories of Arkansas banks and their customers!

In an effort to engage Emerging Leaders in the Annual Washington Visit, the ABA will provide a $500 stipend for

The group will dine together in some of D.C.’s finest restaurants, and enjoy a cocktail party with Federal legislative staffers.

Registration Details

Registration is complimentary and includes visits to the Office of the Comptroller of the Currency, 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.

More Information

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

Arkansas bankers have a round-table discussion while visiting Arkansas’s Senator John Boozman on Capitol Hill during the 2015 Annual Washington Visit.

6

The Arkansas Banker | August 2016

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!

WEDNESDAY, SEPTEMBER 7 Electronic Transactions, Overdraft Fees, & More 10:00 a.m. – 12:00 p.m.

THURSDAY, SEPTEMBER 8 Opening Deposit Accounts for LLCs: Documentation & Procedure 1:30 p.m. – 3:30 p.m.

THURSDAY, SEPTEMBER 8 Handling Delinquent and Abandoned Safe Deposit Boxes 10:00 a.m. – 12:00 p.m.

TUESDAY, SEPTEMBER 13 Analyzing Appraisals for Mortgage Decisions 1:30 p.m. – 3:30 p.m.

Creating and Protecting Your Salaried-Exempt Status 10:00 a.m. – 12:00 p.m.

WEDNESDAY, SEPTEMBER 14 BSA Red Flags for Money Laundering: Frontline Annual Training 10:00 a.m. – 12:00 p.m.

Best-Ever Compliance Checklists for Commercial Loans 1:30 p.m. – 3:30 p.m.

THURSDAY, SEPTEMBER 15 Controlling the Risks of Power Of Attorney Documents 10:00 a.m. – 12:00 p.m.

Developing a Star New Accounts Representative- Skills 1:30 p.m. – 3:30 p.m.

MONDAY, SEPTEMBER 19 7 Habits of Highly Successful Bankers 12:00 p.m. – 1:00 p.m.

TUESDAY, SEPTEMBER 20 Regulation B- Joint Intent 1:30 p.m. – 3:30 p.m.

Get Global: Understanding Global Cash Flow Analysis 10:00 a.m. – 12:00 p.m.

WEDNESDAY, SEPTEMBER 21 Living Trust Documents 10:00 a.m. – 12:00 p.m.

Mortgage Servicing Compliance 1:30p.m. – 3:30 p.m.

THURSDAY, SEPTEMBER 22 Compliance Perspectives: A Monthly Update 1:00 p.m. – 2:00 p.m.

TUESDAY, SEPTEMBER 27 Residential Construction Lending 1:30 p.m. – 3:30 p.m.

THURSDAY, SEPTEMBER 29 Legal Liabilities When Check Fraud Occurs 10:00 a.m. – 12:00 p.m.

TUESDAY, OCTOBER 4 Analyzing Tax Returns for Mortgage Decisions 10:00 a.m. – 12:00 p.m.

Lead the Way at Your Branch 1:30 p.m. – 3:30 p.m.

WEDNESDAY, OCTOBER 5 Excel Explained: Managing Large Workbooks 10:00 a.m. – 12:00 p.m.

Developments in Federal Wage and Hour Law 1:30 p.m. – 3:30 p.m.

THURSDAY, OCTOBER 6

BSA Series: Completing CTR & SAR Reports Line By Line 10:00 a.m. – 12:00 p.m.

Fair Credit Reporting Act Compliance: Ten Critical Issues 10:00 a.m. – 12:00 p.m.

FRIDAY, SEPTEMBER 23

WEDNESDAY, OCTOBER 12

Call Reports: RC-C Loan Coding and Related RC-R Reporting 10:00 a.m. – 12:00 p.m.

Adverse Action Notices 10:00 a.m. – 12:00 p.m.

Writing Business Account Procedures: New CDD Rules Impact 1:30 – 3:30 p.m.

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

August 2016 | The Arkansas Banker

7

Turning Ideas into Real Ventures The Venture Center is Bringing FinTech to Arkansas “This isn’t just about turning start-ups into strong investment opportunities, it’s about reinventing the financial industry by identifying and fast-tracking the best ideas,” said Gary Norcross, President and CEO of FIS Global. “The Accelerator and the fostering of innovation fits squarely with our strategy to deliver results that empower the financial world. It is at the heart of everything we do.”

Turning ideas into real ventures... this is the story of how one group of entrepreneurs took a disturbing statistic and turned it into a fast-track program for FinTech start-ups across the country and around the globe.

Let’s rewind to 2013: Arkansas had been ranked in the bottom third of the country in terms of both innovation and entrepreneurship by progressive media group Fast Company, and a group of local

8

business leaders took it upon themselves to create a program to kick start the growth of technology-based start-up companies and bring the technical talent in central Arkansas to a new level. Their idea, The Venture Center, was launched in May of 2014.

As part of this program, the Venture Center keyed in on FinTech. In collaboration with FIS Global, the organization developed the VC FinTech Accelerator Powered by FIS. Modeled after similar programs in Silicon Valley, New York, and London, the Accelerator puts FinTech start-ups through a 12-week boot camp of sorts, with intense curriculum, mentorship, and capital investment.

Companies were chosen for the program through a vetting process that included a measuring revenue, the amount of money already raised, maturity of the business,

product/market fit, and various other factors. A committee of FinTech experts, Venture Center personnel and FIS executives further evaluated the finalists before issuing invitations to join the program.

For its initial cohort, the program accepted ten emerging FinTech companies in 2016: Akouba, Bleu, Dream Forward, Flutterwave, Fundseeder, LumoXchange, Hexanika, Monotto, Mortgage Peer

Akouba

Bleu

Founders: Chris Rentner (CEO), Nick McMillan (CTO), Evan Hareras (COO), all headquartered in Chicago.

Founders: Sesie K Bonsi, Founder & CEO, Brett Howell, Co-founder & VP Business Development

Background: The company executives have 30+ years of enterprise sales in and out of the financial services industry, 25+ years of building and scaling technology companies in regulated and highly security dependent industries and over 25 years in banking.

Background: Bonsi is an attorney with knowledge in the areas of mobile technology, global telecommunications regulations, mobile payment systems, and financial regulations. Howell has 10+ years of experience in multiple business environments including a multinational corporation.

What we do: Akouba provides an online, end to end commercial loan platform that enables banks, credit unions and other financial institutions to lend money to small businesses simply, efficiently and profitably through an omni channel experience.

What we do: Bleu is pioneering a Whitelabel Point of Sale system and universal payment gateway, powered by Bluetooth beacons, enabling all forms of payment including EMV, and a mobile platform for customer loyalty and engagement.

Why it’s important: Akouba believes we can be the leader in the Digital Transformation at community and regional banks to ensure they keep their trusted brands and customer relationships they have built over the last few decades relevant for the next few decades.

Why it is important: The current payment system is broken because merchants are operating blind. Every card swipe is a wasted opportunity to learn more about the customer.

Regardless of if the merchant is using a fancy tablet, or an old out-of-date legacy POS, every card swipe is not a customer, it is a just a transaction ID. We aim to change that.

The Arkansas Banker | August 2016

Maf Sonko presents LumoXchange to Governor Asa Hutchinson.

Network, and PFTIR. Each company received a $50,000 capital investment.

As these start-ups develop, the Accelerator’s goal is to enable them to gain a sound foothold in the financial services ecosystem so they can deliver new solutions to financial institutions, payment firms, and other segments of the industry.

With founders that hailed from around the globe (there was one native Arkansan

in the mix), the companies took up residence in Little Rock in May. For some, it was a change of pace...for others, a culture shock. One commonality ran through the group — these teams were here to learn, work, and grow their companies. The program’s curriculum is intense, and focuses on strategic relationships and rapid customer acquisition. Throughout the course, the companies also spent time with local mentors — including FIS executives and other financial services industry leaders “A key success factor of the VC FinTech Accelerator is the support of our mentorship network and our strategic collaborations. Central Arkansas is uniquely positioned in this regard because of the history of FinTech innovation dating back to the 1960s and the development of companies like Systematics,” said Gary Dowdy, Managing Director of the Venture Center. “Little Rock is not only a less expensive market but is also a more agile community in many ways. A startup founder launching a

FinTech endeavor in Chicago or New York could easily be lost in the shuffle. The same founder has unprecedented access, mentorship and support to top industry leaders and influencers right here in Central Arkansas. The reality is that you don’t have to be in Chicago, New York or San Francisco to successfully innovate in FinTech.”

The group spent a great deal of time connecting with local business people, community leaders, and bankers. The entrepreneurs worked directly with the ABA on two occasions to define their products for Arkansas bankers: at a mixer on June 22, and again at the FDIC Banker Outreach Seminar the following week.

Several of the start-ups went on to forge connections with Arkansas banks. Bear State Bank in particular began working with LumoXchange and Monotto.

“When FIS and The Venture Center announced the Accelerator, we were very interested to see the companies chosen and see how they each represented

Dream Forward Financial

Flutterwave

Founder: Grant Easterbrook, CEO

Founder: Iyinoluwa Aboyeji, Co-founder

Background: Easterbrook was the first “robo” advisor analyst covering this space from 2011-2015.

Background: Aboyeji is also the co-founder of Andela (recently backed by Mark Zuckerberg

What we do: Dream Forward sells businesses a 401(k) plan. The Dream Forward 401(k) offers low costs, no conflicts of interest, and new technology to boost the savings rate among middleand lower- income employees.

What we do: Flutterwave partners with African and U.S. banks to build technology and infrastructure for U.S. merchants doing business in Africa to instantly pay and get paid across Africa via our secure API (application programming interface).

Why It is important: Right now, America faces a retirement crisis as the “average Joe” isn’t saving enough for retirement.

Our Emotional Advisor technology targets the most vulnerable employees and intervenes to keeps people on track if employees try to do something that’s not in their long-term interest.

Why it’s important: Americans and American companies send $5 billion in investments and P2P payments every year to Africa, but most of this money is trapped with no reliable way to get the money out. Several U.S. businesses like United Airlines have closed their operations in Nigeria denying jobs to American and Nigerians who badly need them. Fixing this problem will enable commerce between the US and Africa to flow smoothly creating wealth and jobs for Americans and creating opportunities for Africans.

August 2016 | The Arkansas Banker

9

where the real transformation will start.

We loved the opportunity to participate in this program and it will be great for our industry and local economy that it is going to continue for a few more years,” she said.

Arvest Bank also took a strong interest in the program, meeting multiple times with Venture Center staff and the start-up teams. They were able to act as a sounding board, listening first to what each start-up had to offer, and later giving insight into banking industry issues.

Jim Cargill and Yogesh Pandit at the ABA Venture Center mixer.

a solution to different pain points within the banking space,” said Shelly Loftin, Chief Marketing Officer of Bear State Bank. “All ten companies have phenomenal products, services and resources and really focused on specific areas to improve in the banking space.

We were incredibly impressed and wanted to take a few that fit with some of our immediate priorities and look at enhancing our services with their help.

By the end of the 12-week program, we had finalized partnerships with two of them and continue to work on refining those services to further enhance the Bear State Bank brand and service suite.”

Loftin noted that bringing FinTech into the mix is a must for financial institutions to keep up with the rate of change in both technology and customer expectations regarding their service experience.

“For Arkansas and the Venture Center to step up, create, and host this program in partnership with FIS is a huge step forward in finding the balance between FinTech and traditional financial institutions. There are advantages to both business models, and striking that balance where you can innovate and be adaptable while remaining compliant and taking advantage of economies of scale is

“At Arvest, our mission statement is ‘people helping people find financial solutions for life.’ Arvest is helping the FinTech Accelerator locally with our expertise in banking and technology and, in turn, they are helping provide potential solutions to make the customer experience with Arvest even better than it is today,” said Kyle Proctor, VP, Marketing Manager for Arvest Central Arkansas. “Arvest has a long history of supporting initiatives that will benefit the communities we serve and we feel this is simply another way of doing that here in central Arkansas.”

Proctor noted that Arvest was able to speak to the start-ups from multiple angles, as Arvest ranks among the largest 100 banks in the U.S., and is the second largest bank in the state.

Fundseeder

LumoXchange

Founders: Emanuel Balarie, James Bibbings, Jack Schwager, all of Westport, Connecticut

Founders: Maf Sonko CEO & Co-founder, Atlanta, Georgia Mamour Dioum, CTO & Co-founder, Lausanne, Switzerland, both formerly of West Africa

Background: Fundseeder brings together a team of experts in the markets & trading industry.

What we do: FundSeeder offers a solution, whereby any trader in the world can link their brokerage account to the website, establish a verified track record, and gain access to numerous trading tools, such as a chart of their equity curve. In the future, the investment arm of FundSeeder, FundSeeder Investments will identify the top performing traders and look to allocate to them directly.

Why it’s important: The current investment environment overlooks a tremendous scope of other traders who have talent and can outperform larger asset managers, but do not have access to capital. The mission of Fundseeder is to “democratize and globalize the asset management world,” and could potentially find the next generation of talented traders.

10

The Arkansas Banker | August 2016

Background: Sonko is a business strategist with 8+ years of experience working for large corporations, most recently PepsiCo. He holds a degree in Industrial Engineering and an MBA. Dioum is an entrepreneur and technologist with 30+ years of building and growing technology companies in Europe and Africa.

What we do: LumoXchange is creating the world’s first localized money transfer marketplace to compare exchange rates in countries across the world. Its platform enables individuals to send money abroad using local rates at a lower cost.

Why it’s important: $436 billion out of the $610 billion that is sent abroad goes to developing counties to help over 750 million families across the world. Reducing the cost of sending money abroad can have a significant impact on the financial well-being of families across the world.

“Connecting the portfolio companies to the banking community of Arkansas is paramount to the success of the program,” Dowdy said. “Integrating these companies into the business culture of Arkansas provides them access to key knowledge as well as valuable resources. It also positions the banks of Arkansas with a front row seat and early access to cutting edge FinTech innovation.”

At the culmination of the program, the Venture Center hosted a “Demo Day” on August 3 to showcase the start-ups and their innovations. Nearly 300 venture capitalists, bankers, technology professionals and local community leaders were present at this event, held at the Clinton Presidential Library. Live streaming of the event was sponsored by Arvest “to make sure all the participating teams’ ideas could be seen from Little Rock to Silicon Valley,” Proctor noted.

Demo Day came with big news for the program: Governor Asa Hutchinson took the stage to announce the first phase of a High Tech Accelerator Initiative for the State of Arkansas. FIS, a global leader in financial services technology and a Fortune 500 company, will partner with the state to extend the VC FinTech Accelerator program through 2018.

“I am thrilled that we were able to partner with FIS to keep Arkansas’s FinTech Accelerator going until 2018. This program has brought some of the world’s most exciting financial services startups and promising tech talent to Arkansas and we are excited to see that relationship continue. It is great to see companies like FIS investing in innovation in Arkansas and we are excited to partner with them to increase the tech footprint in our state,” Governor Hutchinson said.

Venture Center Mentorship Opportunities If you’re ready and willing to share your banking expertise and business knowledge with a developing company, the Venture Center wants you!

Mentorship is the cornerstone of all Venture Center entrepreneurial programs, giving start-up founders the opportunity to strengthen skills through managed connections to experienced leaders. Mentors take part in a half day training program, followed by 8 shadow sessions with a trained mentor. Once completed, the mentor agrees to provide at least four hours of mentorship per month, which involves conducting initial Huddle Hours and Mentor Sessions related to your area of expertise.

The Venture Center Mentor program focuses on four main types of mentors.

Executive Leader– The seasoned and successful business leader, whether a CEO, growing startup founder or small business owner, all bring valuable leadership experiences to the entrepreneur.

Domain Leader – Skilled professionals who provide guidance regarding a specific subject matter. They provide valuable expertise in areas like: intellectual property development, financial and operational strategy, technology development and sales and presentation skill development.

Industry Leader – Recognized industry leaders provide assistance navigating the complexities and connections within areas such as advertising, technology, communications, financial services, government, healthcare and retail.

Capital Leader – Raising capital or selling a company is as much an art form as a science. The ability to successfully fund a business is a vital skill for any entrepreneur. Our capital experts provide guidance during this critical period of a company’s development.

The Venture Center Mentor Network is comprised of business executives and professionals with specific domain expertise. This is your chance to make and impact. To be a part of something big. You can help us further our mission of creating an engine for economic development in Little Rock and all of Central Arkansas through the establishment of a strong startup community.

For more information on mentorship opportunities through the Venture Center, contact Ashley Jones at ashley@venturecenter.co.

Hexanika

Monotto

Founders: Yogesh Pandit, NY; Huma Usmani, NY; Rahul Bhide, NY; Mak Gadre, CA

Founders: Christian Ruppe, Hank Stocker, & Jared Kopelman, all of Charleston, South Carolina

Background: Regulatory Compliance

Background: The co-founders met at the College of Charleston.

Hank graduated with a degree in Computer Science, Jared graduated with a degree in Political Science, and Christian is six credits away from degrees in Finance and Accounting.

What we do: Hexanika is a FinTech big data software company, which has developed an end-to-end solution for financial institutions to address data sourcing and reporting challenges for regulatory compliance.

Why it’s important: Audit trail of transaction level data and meeting dynamic business and regulatory requirements are challenges that banks face as the legacy system architecture does not cope well. We aim to address these challenges using our innovative end-to-end solution.

What we do: Our company uses smart algorithms to completely automate the process of saving and investing. The goal is to take a user from struggling financially to financially stable without any additional work.

Why it’s important: This is important because young Americans are awful with finances. It is sad but very true, and we know it is true because the millennial saving rate is negative 2% meaning they spend more than they make every year.

August 2016 | The Arkansas Banker

11

“Arkansas is developing a national reputation for technology both as a result of the major technology companies in Arkansas and because of Arkansas leading the nation in computer science education,” he continued. “Our new High Tech Accelerator initiative is an innovative way for the state to attract new technology companies and to support our existing industry. I was elated to hear that several of the startups that participated in the program are interested in exploring Arkansas as a home for their operations. We are optimistic that some of the startups will take advantage of the tremendous benefits of locating their companies in this state.”

This initial phase of the High Tech Accelerator Initiative will be followed by a more comprehensive accelerator plan.

The future plan will include program requirements to measure job creation and technology benefits to the state.

There will undoubtedly be a variety of benefits to the state of Arkansas. Over the past two years, the Venture Center has supported the creation of 153 new jobs in Arkansas, and member companies have raised nearly $7 million in the past two years. A handful of the companies that participated in the 2016 Accelerator are considering moving to Little Rock, or plan to have a presence in the state. One company, LumoXchange, has confirmed

VC FinTech founders with Governor Asa Hutchinson.

that it will be permanently relocated to Little Rock from Atlanta.

“The Venture Center’s vision is to create an engine for economic growth in Central Arkansas. The impact of the VC FinTech Accelerator can’t be overstated in this regard,” said Lee Watson, President & CEO of the Venture Center. “An industry-specific business accelerator program like the VC FinTech Accelerator essentially creates a systematic funnel of talent, ideas, and innovative companies pouring into the State. We are thrilled with the Governor’s announcement to help fund this program. This commitment showcases Arkansas as a center of tech innovation.”

The technology benefits hit close to home for the ABA, as banks push forward to serve a new generation of customers.

“The ABA is proud that Arkansas is serving as a host for this group of FinTech start-ups. We are fortunate to have the services provided by the Accelerator participants available to our state’s banks and bankers. We look forward to the impact these technologies will make, both for our industry and our communities,” said Bill Holmes, ABA President & CEO. The next round of the VC FinTech Accelerator will launch in early 2017.

Applications for this stage of the program will be accepted in the late summer/early fall of 2016. Applicants can learn more or apply at VCFinTech.co.

The Venture Center is housed at 107 E. Markham Street in downtown Little Rock.

You can also find them on Twitter at @VentureCenter and on Facebook at @TheVentureCenter.

Mortgage Peer Network

PFITR

Founders: Greg Ellis and Dave Demster

Founder: Jim Koetting, St. Louis, Missouri

Background: Greg Spent 10 years managing capital markets for two large mortgage banking firms before founding PRMS in 1999. He has extensive experience and knowledge in business management, technology and development processes. Dave Has over 25 years of experience in the mortgage and banking technology space, including all facets of mortgage origination, secondary marketing, servicing, default management and analytics. Prior to joining MPN, Dave served as president of several leading technology firms as well as EVP of Business Development and SVP of Sales and Marketing.

Background: Jim Koetting is a nationally-known author and speaker that has trained hundreds of CFOs, Treasurers, and Industry professional on managing bond portfolios.

What we do: We serve the mortgage origination industry.

Why it’s important: We allow lenders to compare operational and customer satisfaction to peer lenders on the network. We integrate with the consumer’s social networks to create new referrals for the lender.

12

The Arkansas Banker | August 2016

What we do: The Bond Price Validation tool (BPV™) brings needed bond market transparency and has the ability to provide strong internal controls that regulators love, keeping CFOs and Treasurers out of hot water. Most portfolios are not ready for an uptick in market interest rates and with the ten year treasury hitting an all time low, there is more pressure for rates to rise.

PFITR’s BPV™ product is focused on providing good, unbiased data to improve decision making.

Why it’s important: It has never been more imperative to have a solution that identifies, measures, and helps CFO’s mitigate risk.

AG BANKING AT THEBANKING CROSSROADS: AG AT THE CROSSROADS: STRATEGIES FOR

STRATEGIES FOR THE ROAD AHEAD THE AHEAD 2016 ABAROAD NATIONAL AGRICULTURAL

BANKERS CONFERENCE 2016 ABA NATIONAL AGRICULTURAL NOVEMBER 2016 | INDIANAPOLIS, INDIANA BANKERS13-16, CONFERENCE NOVEMBER 13-16, 2016 | INDIANAPOLIS, INDIANA Register today! aba.com/AgConference

August 2016 | The Arkansas Banker

13

Liam Neeson’s character, in the hit movie “Taken,” gets a frantic call from his daughter as she is being hunted by kidnappers. When they find and capture her, one of the bad guys takes her cell phone and holds it up to his ear. The kidnapper is breathing heavily but says nothing. Suddenly Liam’s character says, “I don’t know who you are. I don’t know what you want. If you are looking for ransom, I can tell you I don’t have money. But what I do have is a very particular set of skills. Skills that I have acquired over a very long career. Skills that make me a nightmare for people like you. If you let my daughter go now, that’ll be the end of it. I will not look for you; I will not pursue you. But if you don’t, I will look for you, I will find you, and I will kill you.” Silence falls over the phone again until the kidnapper says, “good luck” and ends the call. If you don’t know the rest of the story, Liam’s character goes through some high action fight scenes, tracks down and kills a bunch of bad guys and finally saves his daughter.

Ransomware is equivalent to a gang of bad guys kidnapping your loved ones and demanding money in exchange for returning your loved ones safely into your arms. Even if you had a “very particular set of skills,” bad guys that use ransomware are nearly impossible to find because of the ability to hide behind a labyrinth of IP addresses and never-ending cyber networks.

ABOUT THE AUTHOR

Aaron Gamewell is President/COO and Partner at Secure Banking Solutions (SBS).

Aaron spent 21 years in banking and served as EVP and COO at the Arkansas Bankers Association prior to joining SBS. SBS is an ABA Endorsed Vendor.

14

Ransomware is a trending type of malicious software (malware) that encrypts files and information on your personal or business computers and requires the user to pay a ransom for the encryption key. The ransom is usually paid by bitcoin, an untraceable form of currency. Just like most cyberattacks, a ransomware attack normally starts with social engineering tactics such as “Spear Phishing”. The attacker will engage the recipient by sending an email with an enticing link, pop-up, or attachment. Once the user clicks or opens an attachment, the attacker takes control of the user’s computer and looks to infiltrate the network further.

The Arkansas Banker | August 2016

Ultimately, the attacker is looking to lockdown and encrypt all of your data.

Everything from customer information to bank records and confidential documents.

All the files that you need to continue operating as a business are now inaccessible and your business has come to a screeching halt. The next message that you see on your computer screen or in the documents file folder is a demand for ransom. If you want access to your data, pay the ransom or else.

In some cases, the hackers will attempt to embarrass you by displaying pornographic or lewd photos on your screen.

Do you pay the ransom? How can you trust that the attacker will actually release the information back? There have been instances where the ransom was paid and the hackers did not or could not return the data or restore the systems.

What if you don’t pay the ransom? How long can you go without vital operational records? CBC.CA reported on February

26, that a Hollywood hospital paid a $17,000 ransom to obtain the decryption key when they were locked out of their systems by hackers. The hospital was without vital operational records and devices for two weeks.

Experts agree that you should not pay the ransom. Instead, protect yourself and your organization by having proper security protocols, firewalls and daily backups.

Basic controls such as firewalls can help prevent intrusion and consistent backups will ensure that data can be restored quickly and efficiently. Invest in penetration testing and vulnerability assessments from a trusted cyber security firm to validate the effectiveness of your technology controls.

In the movie “Taken” Liam’s character was a highly trained professional who protected people for a living. However, because Liam could not control the decisions that his daughter was making that put her in a bad situation, he could not stop the kidnapping. This is much like the employees of your organization. You can have all the bells and whistles for IT security, but if one of your employees makes it easy for bad guys, they bypass all the expense and security controls. It is highly recommended that organizations heavily invest in security awareness education and testing for their employees. These education programs should focus on how and why social engineering inherently works and include a repeatable testing

process to verify that the training is effective.

A ransomware attack does not have to have the drama and excitement of an action movie if you make a commitment to invest in good security risk management practices and protect your business.

Real Property, Personal Property & Tax Records, Anywhere, Anytime THE WAIT IS OVER! Discover a new kind of Pro now!

For more information, visit

August 2016 | The Arkansas Banker

15

6 1 0 2 r a in em S t en em g a n a Bank M The 79th Annual Bank Management Seminar was held August 3-5 in beautiful Destin, Florida. The white sand beaches and summer weather provided the perfect relaxed getaway for bankers and guests.

The three-day event kicked off Wednesday evening with a reception hosted by Southern Pioneer Insurance Companies and First National Bankers Bank to welcome attendees to this year’s destination location. Fresh shrimp and frozen drinks were among the many treats offered to everyone to get them in a “beach” state of mind.

Thursday’s speakers were American Bankers Association President & CEO Rob Nichols and Chad Knutson of Secure Banking Solutions.

Friday rounded out the conference with futurist Robert Tucker, who challenged bankers to adapt their businesses through innovation.

Prize drawings were held throughout the conference, and some lucky bankers took home tickets to this season’s Razorback football games as well as a fly-away trip for two.

My family and I enjoyed the destination location as it changed the feel of the event and allowed us to do some business while also making memories!

– Sean Williams First National Bank of Wynne

16

The Arkansas Banker | August 2016

(Above) Sean Williams, First National Bank of Wynne, Wynne; and Jeff Lynch, Eagle Bank, Heber Springs.

(Right) Mark Wilson, First Arkansas Bank & Trust, Jacksonville; and Gary Redd, First Arkansas Bank & Trust, Jacksonville.

#BMS2016

(Left) Steve Otto, Federal Home Loan Bank, Irving, Texas; Jeff Sabin, Federal Home Loan Bank, Irving, Texas; and Bill Holmes, ABA. (Above Left) Chris Gosnell, Farmers Bank & Trust, Magnolia; and David Link, Fiserv, Hoover, Alabama.

(Above Right) Jeff White, Farmers Bank & Trust, Magnolia; Ryan Underwood, BKD, Little Rock; and Joe Pieratt, Farmers Bank & Trust, Magnolia.

(Below Left) The ABA’s Ava Roberts and Jessica Sahene greet Jim Cargill, Arvest, Little Rock, and his wife Kathleen.

(Below Center) Sue and David Maddox, Union Bankshares, Mena, sample the cocktail reception, sponsored by Southern Pioneer Insurance and First National Bankers Bank.

(Below Right) Trey Deupree, Equias Alliance, Plano, Texas; and John Garrison, Relyance Bank, Pine Bluff.

August 2016 | The Arkansas Banker

17

Bank Management Seminar

American Bankers Association President & CEO Rob Nichols joined the ABA for BMS 2016. ABA Chairman Sean Williams welcomed him on stage for a conversation about the banking and political climate across the country.

One topic of conversation was the new “America’s Banks” campaign from the American Bankers Association, which serves as a tool for both the ABA and Arkansas banks to “get out and show people what we are doing in our communities.” Resources can be found at aba.com/americasbanks.

“Data is money.” That was the message from Chad Knutson of Secure Banking Solutions. Knutson focused on the growing presence of ransomware, phishing, and other means that hackers use to rob banks and other business of client data.

Knutson introduced the group to a few services to help train staff on the importance of verifying links, noting that it just takes one employee clicking one tainted link to bring down an entire system.

Nathan Gairhan, United Bank, Springdale, won a set of tickets to the Razorbacks vs.

Ole Miss game on October 15.

18

The Arkansas Banker | August 2016

Stanhope Wilkinson, Farmers Bank, Greenwood, won a set of tickets to the Razorbacks vs. Texas State game on September 17.

Futurist Robert Tucker was Friday morning’s speaker, encouraging bankers to “lead ahead of the curve.”

Among Tucker’s topics was the meaning of innovation within the bank, adapting your business to the Millennial marketplace, and misguided assumptions that keep banks from moving their business forward.

Tucker got the crowd involved by asking them to list innovative companies, and testing the group’s knowledge on Millennials.

Chris Gosnell, Farmers Bank & Trust Co., Magnolia, won a set of tickets to the Razorbacks vs. Louisiana Tech game on September 3.

“” (Top) Maureen Drozd and Melissa Seiwert were on hand to represent CNA at the annual CNA Breakfast on Thursday morning.

I think it is great that the ABA leadership chose to move the meeting location to such a nice venue that allowed the bankers to get away from their hectic schedules to enjoy their networking opportunities and families.

– Jeff Lynch Eagle Bank, Heber Springs

Craig Mobley, First Financial Bank, El Dorado, won a set of tickets to the Razorbacks vs. Louisiana State University game on November 12.

August 2016 | The Arkansas Banker

19

Bank Management Seminar

Gary Edwards, BKD, Little Rock; presents Stanhope Wilkinson, Farmers Bank, Greenwood; with the annual grand prize Fly Away for Two, sponsored by BKD, LLP. (Above) ABA Chairman-Elect Dave Dickson, Union Bank & Trust, Monticello, served as MC for Friday’s program.

(Right) Troy Duke, Gateway Bank, Rison; and Grant Gordy, First National Bankers Bank, Little Rock; chat before Friday’s business session begins.

(Far Right) Arkansas State Bank Commissioner Candace Franks; Dale Cole, First Community Bank, Batesville; and Boris Dover, First Community Bank, Batesville; talk after Friday’s breakfast, sponsored by The Johanson Group / DB Squared.

Mark Ferguson, First Security Bancorp, Little Rock, won a set of tickets to the Razorbacks vs.

Alabama game on October 8.

20

The Arkansas Banker | August 2016

Jeff White, Farmers Bank & Trust Co., Magnolia, won a set of tickets to the Razorbacks vs. Florida game on November 5.

BMS Classic

Thank You to our Sponsors American Bankers Association Thursday Networking Break

BKD, LLP

Fly Away for Two

Celerit

Lanyards

CNA Insurance

Thursday Breakfast

DD&F Consulting Group Mobile App Banner Ad

Equias Alliance

Mobile App Banner Ad Razorback Tickets

First National Bankers Bank Eight teams of golfers played 18 holes at Destin’s Raven Golf Course during the Bank Management Seminar at the annual BMS Classic Golf Tournament.

Finishing in first place was the team of Judy Lawton, Heartland Bank, Little Rock; Robert Taylor, The Citizens Bank, Rogers; David Coleman (not pictured), Simmons Bank, Little Rock; and Nathan Austin (not pictured).

Finishing in second place was the team of Trey Deupree, Equias Alliance, Plano, Texas; Barry Jackson, ABA, Little Rock; Randy Sims (not pictured), Centennial Bank, Conway; and Ben Hyneman (not pictured), Southern Pioneer, Jonesboro.

Finishing in third place was the team of Nathan Gairhan, United Bank, Springdale; Robert Hopkins, Federal Reserve Bank of St. Louis, Little Rock; Brian Hyneman (not pictured), Southern Pioneer, Jonesboro; and Mark Ferguson (not pictured), Earl R. Whaley & Company, Lonoke.

Reception Co-Sponsor

Foundation Life Insurance Co. Charging Station

The Johanson Group /DB Squared Friday Breakfast

Secure Banking Solutions Mobile App

Southeastern Commercial Finance Mobile App Banner Ad

Southern Pioneer Insurance Co. Reception Co-Sponsor

Travelers Insurance

Golf / Hole Sponsorship

Click here to see more photos from Bank Management Seminar!

August 2016 | The Arkansas Banker

21

MEMBER NEWS

Four Arkansas Banks Offer Scholarships, Internships Through Fleischer Scholars Program Thirty-three high school juniors and seniors participated in the Fleischer Scholars summer camp program July 10-15 to learn about entrepreneurship at the Sam M. Walton College of Business.

The camp is hosted by the Office of Diversity and Inclusion and introduces first generation, low income and underrepresented students to college life, business classes and entrepreneurship.

Program sponsor Mort Fleischer, the co-founder and chair of STORE Capital Corp., has a long reaching vision for the program. His goal is to assist economically disadvantaged students graduate from college and encourage them to invest their time and talent back into to their hometown communities upon graduation.

Fleischer calls this the “multiplier effect” and hopes that these future leaders will serve as role models for their community.

“Walton College is proud to partner with Mort Fleischer on this life-changing program for Arkansas students,” Barbara Lofton, director, Office of Diversity and Inclusion for Walton College. “We want to give these students the ongoing support they need to stay in college, get jobs and serve their communities. There is no limit on what these young people can do.”

Four Arkansas banks - Signature Bank, Bank of England, The Citizens Bank and First Arkansas Bank and Trust - have committed to fund $50,000 scholarships to pay for the summer camp program and four years base tuition. The banks will also provide local internships once students become juniors and seniors at the University of Arkansas.

“Our commitment to the Fleischer Scholars program is an investment in the future of our state and in the betterment of the communities that we serve,” said Gary Head, President, Chairman & CEO of Signature Bank of Arkansas. “My hope is that the Fleischer Scholars, supported

by Signature Bank of Arkansas, will stimulate community revitalization and

22

Photo by Ryan C. Versey

A group of 33 Arkansas high school students participated in the Fleischer Scholars summer camp program to learn about entrepreneurship, business, and college life at Walton College at the University of Arkansas. Four banks — Signature Bank, Bank of England, The Citizens Bank, and First Arkansas Bank and Trust — are funding scholarships for the program, and will later offer internships to participants.

economic growth and that each student will return to their communities as role models, creating what Mr. Fleischer calls the human multiplier effect.”

To qualify for the college scholarship, students must be admitted to the University of Arkansas, enroll full time, demonstrate leadership and commit to back to their local community through service. To quality for the summer camp program, students must be the first in their family to attend college, be economically disadvantaged, hold high college entrance test scores, are able to overcome challenges and have the drive to complete college.

For information about this program, contact Barbara Lofton, director, Office of Diversity and Inclusion at the Sam M. Walton College of Business at 479-5754557 or BLofton@uark.edu.

The Arkansas Banker | August 2016

The University of Arkansas provides an internationally competitive education for undergraduate and graduate students in more than 200 academic programs. The university contributes new knowledge, economic development, basic and applied research, and creative activity while also providing service to academic and professional disciplines.

The Carnegie Foundation classifies the University of Arkansas among only 2 percent of universities in America that have the highest level of research activity.

U.S. News & World Report ranks the University of Arkansas among its top American public research universities.

Founded in 1871, the University of Arkansas comprises 10 colleges and schools and maintains a low studentto-faculty ratio that promotes personal attention and close mentoring.

MEMBER NEWS Bank’s Commitment Helps Restore Historic Theater Earlier this year, the Citizens Bank announced a comprehensive plan to revitalize Historic Downtown Batesville.

Phil Baldwin, Citizens Bank President and CEO indicated that, “Citizens Bank will support the Impact Independence Strategic Plan with the formation of a $10 million redevelopment fund comprised of low interest rate loans and grants.” Mr. Baldwin indicated that this is a promise from Citizens Bank to the Independence County community. “Historic Downtown Batesville will be redeveloped.”

Batesville’s Main Street district is seeing a tremendous amount of activity since that announcement was made. Among those spearheading this movement is the Historic Melba Theater. Anchored on the end of Main Street, the Theater’s restoration project has generated quite the excitement over the last year. “We’ve been blessed with tremendous community support,” says co-owner Joe Shell. “The low-interest financing secured with Citizens Bank gave us the confidence that we needed to move forward with purchase and restoration.” Joe Shell and his wife Janelle, along with Adam & Mandi Curtwright purchased the theater in March of 2016, which was closed at that time. Thousands of hours have been spent recreating a Batesville icon as they prepare to once again show movies, as well as offer concerts, training sessions and more.

The Citizens Bank awards a $5,000 grant to owners of the Melba Theater. Pictured are Jerrod Sandefur of Citizens Bank, Phil Baldwin Citizens Bank President and CEO, Micah Beard Market President, Owners, Joe Shell, Janelle Shell, Adam Curtwright and Mandi Curtwright.

Grand Opening Events are scheduled for Friday, August 12th as owners promise a Red Carpet, Hollywood style affair.

Citizens Bank’s commitment has gone far beyond the low interest loan. “We know the Melba Theater’s Grand Opening will be a historic event,” quotes Baldwin, “we’ve even offered to supply the giant spotlights to shine in the sky on that evening. We want everyone in the county

Co-owners Mandi Curtwright, Janelle Shell, and Joe Shell in the projector room of the Historic Melba Theater.

to be aware and take note that amazing things are happening on Main Street.”

Citizens Bank also awarded The Melba Theater with the first of many Impact grants in the amount of $5,000. This money was used to help fund the cost of the new digital projector which was a $65,000 expense. Citizens Bank has awarded other grant recipients as well, one of which include The Pinto, a new restaurant slated to open within the next few months that is located adjacent to the theater.

Mr. Baldwin shared, “I am excited that Historic Downtown Batesville will now have the ability to combine the vibrancy of a college community and the ambiance of a small southern town. My hope is for Historic Downtown Batesville to come alive again and provide family friendly entertainment with diverse and eclectic shopping, dining, arts, cinema, music and pubs; to become residential again, with loft apartments above and shops below; to be a place for all generations to gather, walk, bike or talk – a people gathering place for all of Independence County.”

August 2016 | The Arkansas Banker

23

MEMBER NEWS FHLB Dallas, Congressman Hill Team up with Banks, Habitat for Humanity

ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Charter Conversion Application An application filed by Bear State Bank, Little Rock, Arkansas, a national bank, for conversion to a state-chartered bank to be known as Bear State Bank, Little Rock, Arkansas, has been approved. June 28, 2016.

An application filed by Anstaff Bank, Green Forest, Arkansas, a national bank, for conversion to a state-chartered bank to be known as Anstaff Bank, Green Forest, Arkansas, has been approved. June 28, 2016.

U.S. Representative French Hill joined representatives from the Federal Home Loan Bank of Dallas and Habitat for Humanity of Central Arkansas for a “wall-raising” event and check presentation on Friday, August 12, in Little Rock.

Shalaniece Floyd, a 30-year-old single mother of two, will purchase the Habitat home with a zero percent interest loan when construction is complete. Working alongside donors and volunteers, Ms. Floyd will invest 300 sweat equity hours into her home.

“I’ve long been a supporter of Habitat for Humanity and all it does to promote affordable housing in Arkansas,” said Congressman Hill, who is also a member of the House Committee on Financial Services. “It is an honor to participate in today’s wall-raising activity and to help build a home for a deserving Little Rock family.”

Over the past seven years, FHLB Dallas has partnered with Bank of the Ozarks to provide $347,000 in Affordable Housing Program (AHP) grants. Of those funds, $70,000 will benefit 10 homes, including Ms. Floyd’s home.

AHP grants are available annually through FHLB Dallas member institutions such as Bank of the Ozarks to assist in the development of affordable owner-occupied and rental housing for very low- to moderate-income households located across FHLB Dallas’ five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. This year, FHLB Dallas awarded $7.8 million in AHP grants to 27 projects that will result in 1,499 new or renovated housing units.

24

The Arkansas Banker | August 2016

Branch Bank Application An application filed by Citizens Bank & Trust Company, Van Buren, Crawford County, Arkansas, to establish a branch banking facility at 8828 Highway 59 North, Cedarville, Crawford County, Arkansas, has been approved. June 27, 2016.

An application filed by Simmons Bank, Pine Bluff, Jefferson County, Arkansas, to establish a branch banking facility at 2025 Crossover Road, Fayetteville, Washington County, Arkansas, has been approved. July 14, 2016.

An application filed by First Security Bank, Searcy, White County, Arkansas, to establish a branch banking facility at 1801 East Centerton Avenue, Centerton, Benton County, Arkansas, has been approved. July 18, 2016.

An application filed by Farmers Bank and Trust Company, Magnolia, Columbia County, Arkansas, to establish a branch banking facility at 1061 North Coleman Street, Suite #135, Prosper, Collin County, Texas, has been approved. July 21, 2016.

BANKER NEWS & MOVES ARNOLD NAMED VP/ MARKET SPECIALIST AT GENERATIONS BANK Cherri Arnold has been named to the position of Vice President/ Market Specialist/ Secretary to the Board in Generations Bank’s Camden market.

In this position, Arnold oversees the organization of the Camden market and the coordination of staff and resources, as well as serves as consumer lending officer.

Most recently, Arnold served as Assistant Vice President/ Secretary to the Board.

Arnold has been employed by Generations Bank for the past twenty years. She attended Lending School at the Arkansas Bankers Association.

“Cherri has been an instrumental part of our bank’s success for many years,” stated Jon Harrell, Chairman of Generations Bank.

“We’re very proud of her, her accomplishments, and her new position in the Camden market.”

GARCIA, FERGUSON PROMOTED AT GENERATIONS BANK Generations Bank recently promoted Camden loan officers Jennifer Garcia and Dana Ferguson.

Jennifer Garcia has been named to the position of Vice President/ Mortgage Loan Officer. As Vice President/ Mortgage Loan Officer, Garcia will underwrite, process, and close one-to-four family real estate loans.

Most recently, Garcia served as Assistant Vice President/ Mortgage Loan Officer for

Generations Bank in Camden.

She joined Generations Bank in 1997. She attended Southern Arkansas University in Magnolia and earned a Bachelor of Arts in Psychology.

Dana Ferguson has been named to the position of Assistant Vice President/Loan Officer. In this position, she will underwrite, process, and close consumer loans.

Most recently, Ferguson served as Loan Officer. She joined Generations Bank in 2005 as a Loan Clerk. She then became Credit Analyst before being named to the position of Loan Officer. Ferguson attended Louisiana Tech and earned her Bachelor of Science in Business in 1983. She has been a member of the Camden Noon Lions Club since 2015 and was recently named One Year Board Member by the club.

“Jennifer and Dana are a vital part of our team and the bank’s success,” stated Jon Harrell, Chairman of Generations Bank.

“We’re very proud of them and the hard work they’ve demonstrated to earn their respected promotions.”

PIERSON PROMOTED TO VP/LOAN OFFICER AT GENERATIONS BANK Peggy Pierson has been promoted to the position of Vice President/ Loan Officer for Generations Bank’s Van Buren market.

In this position, Pierson serves as the primary consumer lender.

She originates consumer loans, as well as real estate loans, such as second mortgages, personal residence loans, and rental properties.

Most recently, Pierson served as Assistant Vice President/ Loan Officer. She previously worked at Mercantile Bank before joining Generations Bank in 2000. She attended the University of Arkansas in Fayetteville earning her Bachelor of Arts & Sciences from the J. William Fulbright College of Arts and Sciences. In 2004, Peggy attended Basic Lending School and completed Real Estate Documentation courses. She also completed Intermediate Lending Compliance School, and most recently attended the Arkansas Bankers Association for analyzing personal and corporate tax returns and financials. Pierson is a 2015-2016 graduate of Leadership Crawford County.

Phillips Community College of the University of Arkansas.

“We’re very proud of Peggy and her hard work and dedication to the bank that’s earned her this promotion,” stated Jon Harrell, Chairman of Generations Bank.

“She plays an important role on our team, as well as to the success of our bank.”

ROSWELL JOINS CENTENNIAL BANK

FARMERS AND MERCHANTS BANK HIRES LYNDSAY CARTER AS NEW VICE PRESIDENT EXECUTIVE ASSISTANT Attorney Lyndsay Carter has joined Farmers and Merchants Bank as VicePresident and Executive Assistant. Her primary responsibilities are to serve as a liaison between management and the Board of Directors, as well as perform certain legal duties for the bank, according to President and CEO Gary Hudson.

Carter worked as an attorney with the Rogers and Carter Law Firm in Stuttgart, AR, from 2011 until recently joining the bank. She has also been an adjunct professor for Legal Environment of Business at

She achieved her Juris Doctor in 2011 from the William H. Bowen School of Law in Little Rock, AR. Carter also holds a B.A. in Political Science from the University of Arkansas in Fayetteville.

In addition to these accomplishments, she is a member of the Stuttgart Chamber of Commerce Board of Directors, Phillips Community College Stuttgart Foundation Council, Stuttgart Junior Women’s Club, and Arkansas Bar Association.

Lyndsay and her husband, Grant, are the proud parents of one daughter and make their home in Stuttgart.

Kelly Roswell recently joined Centennial Bank’s Paragould market as a Commercial Loan Officer, according to Market President Mike Weaver.

“Kelly is an outstanding addition to our Paragould team,” said Weaver. “We’re excited to have her enthusiasm and experience onboard at Centennial Bank,” he added.

With thirteen years of experience in banking and finance, Roswell previously served as a loan officer and a branch manager.

Roswell is an alumna of Arkansas State University, where she earned a bachelor’s degree in finance and banking. She received her banking education from the Arkansas Bankers Association Consumer Lending School.

As a dedicated community leader, Roswell is past-president of the Rotary Club of Paragould Continued on page 26

August 2016 | The Arkansas Banker

25

BANKER NEWS & MOVES Continued from page 25 and a Paul Harris Fellow. She is a graduate of Leadership Paragould and a member of First United Methodist Church of Paragould, where she currently serves as board of trustees’ secretary.

She and her husband, Tim Roswell, have four children.

Roswell will be located in Centennial Bank’s 300 West Emerson banking center in Paragould.

RYAN NAMED LOAN MANAGER FOR ARVEST BANK, BENTON COUNTY Arvest Bank is pleased to announce that Mark Ryan has been named Loan Manager and Executive Vice President for Arvest Bank in Benton County. He is replacing Bob Boehmler, who retired in May. Ryan has been with Arvest Bank since 1993. His most recent positions with the bank have been as executive vice president and commercial banking manager in Benton County, loan manager in Rogers and senior vice president and lender in Fayetteville.

“If we have to replace someone who has been so important to the bank as Bob Boehmler, I am glad that we could look to Mark Ryan to take over the job,” said Craig Rivaldo, president and chief executive officer for Arvest Bank in Benton County. “Mark embodies the Arvest culture of customer service and leadership with strong lending experience.

We are excited about what he will bring to his new role with Arvest.”

Ryan is a 1978 graduate of Walnut Ridge High School and earned his Bachelor of Business Administration in finance and banking from the University of Arkansas at Fayetteville

26

in 1983. He graduated from the Southwestern Graduate School of Banking at Southern Methodist University in Dallas in 1988 and is a Certified Risk Professional.

He is a board member of the Student Loan Guaranty Foundation of Arkansas and Junior Achievement of NWA. He previously served on the board of the Rogers-Lowell Area Chamber of Commerce.

He and his wife, Jane Ryan, have four sons. The family lives in Rogers and attends Fellowship Bible Church of NWA.

CHARITTI SULLINGER JOIN CENTENNIAL’S PARAGOULD TEAM Charitti Sullinger has joined the Centennial Bank team in Paragould as a Mortgage Loan Originator, according to Mike Weaver, Centennial’s Paragould market president.

“Charitti is an excellent addition to our lineup of outstanding lenders in Paragould. We’re so pleased to add her experience and mortgage lending knowledge to our resources,” said Weaver. “Charitti will be a real asset to our customers,” he added.

Sullinger has over 18 years of banking and finance experience in mortgage lending and insurance sales.

She is an alumna of Arkansas State University and has earned her Arkansas life and health insurance license.

Sullinger serves on the board of Habitat for Humanity and chairs the organization’s family selection and family support committees. She is a Leadership Paragould graduate, member of the Paragould Regional Chamber of Commerce and an

The Arkansas Banker | August 2016

active member of Unity Baptist Church.

She has two children, Jakob, 18, and Blane, 13. Sullinger is located in Centennial Bank’s downtown Paragould banking center at 300 West Emerson.

ERIC KING NAMED SENIOR BUSINESS DEVELOPMENT OFFICER Greg Sanson, Division President for Centennial Bank and local Conway Market President has announced that VP Eric King will join his team as a Senior Business Development Officer.

King has been with Centennial Bank since 2007. During his tenure with the bank he has served as a Lending Officer, Public Relations Officer and most recently as Marketing Manager, VP. “The contacts that Eric has made in banking in the last 9 years partnered with his long standing roots in Conway & Faulkner County will be a strong foundation for his success in Business Development”, said Sanson. “I’m confident Eric’s background and leadership skills will help Centennial Bank continue to thrive and provide strong service to our Business Customers and I look forward to him joining my team.”

King is a board member of the Will McGary Foundation, the American Cancer Society ‘Celebrity waiter’ committee, the Petit Jean Razorback Foundation and is the Color Man for Wampus Cats Sports on Y107. King is also running unopposed in November, for Faulkner County Justice of the Peace – District 8.

Eric & his wife Sarah, as well as daughters Kallee, 20 and Chloe 10, are proud to call Conway home.

TOWNSELL NAMED AS CENTENNIAL BANK’S DIRECTOR OF MARKETING Home BancShares, Inc., and its wholly-owned subsidiary, Centennial Bank, has announced its Chairman, John W. Allison, has named its Senior Executive Vice President, Donna Townsell, as the Director of Marketing for Centennial Bank.

“Donna has been one of the significant stars for me and this company for many years. Her accomplishments have created national recognition for her and this company,” said Allison.

“I recognize the Company needs a strong emphasis on marketing to millennials, as well as keeping up with innovation in banking,” Allison continued.

“With a degree in marketing, almost 10 years in banking, and a proven track record of success, Donna is the one to take on this enormous challenge. As the banking environment continues to evolve, I am confident she will be successful in leading Centennial Bank’s marketing efforts well into the future.”

Townsell’s most recent focus for Centennial has been managing corporate efficiencies. She has also served as a Project Manager during her nine year tenure with the Bank.

A graduate of Conway High School, Townsell also received a Marketing Degree from the University of Central Arkansas.

She is a graduate of the Faulkner County Leadership Institute and resides in Conway along with her daughter Riley, 10.

BANKER NEWS & MOVES

INDEX OF ADVERTISEMENTS American Bankers Association

13

DataScout Pro

15

Office Depot

28

www.aba.com

www.DataScoutPro.com www.OfficeDepot.com

RIVERWIND BANK ANNOUNCES EMPLOYEE PROMOTIONS RiverWind Bank proudly announces several employee promotions in both Searcy and Augusta markets.

Among the promotions is Michelle Davis, who will now serve as Senior Vice President, Loan Officer and Marketing Officer at the Searcy Race Street location. Davis has more than 25 years of experience in banking and bank marketing with the most recent four years being at RiverWind Bank. Also in the Searcy market, Lisa Schmittou has been promoted to Assistant Cashier and Retail Branch Manager of the Searcy Beebe-Capps location, with over eight years of banking experience.

The Augusta market has made four internal promotions. Victoria Cansler, who has worked for RiverWind Bank

ADVERTISEMENTS For more information on advertising in The Arkansas Banker, please contact Traci Logsdon, Director of Communications, via email at traci.logsdon@arkbankers.org, or by phone at 501.978.3603.

since 2009, has been promoted to Vice President, Loan Officer and Loan Operations Officer. Amanda Hollingsworth will now serve as Assistant Vice President and Loan Officer with 17 years of banking experience.

Trish Prine has over 14 years of banking experience and has been promoted to Teller Supervisor. After four years with RiverWind Bank, Jessica Tidwell has been promoted to Assistant Cashier and Compliance Officer from her position as loan processor.

Additionally, Casey Cullipher has been hired as Executive Vice President & General Counsel. He will be working in Searcy and Augusta.

“Each one of these employees have demonstrated a work ethic and dedication that proves them to be valuable members of the RiverWind Bank family,” said Bill Patton, Bank President.

CLASSIFIEDS MODULAR BANK BUILDINGS – Looking to Branch? Disaster planning? Need a temporary while remodeling? Immediately available, 14’x66’ or 24’x66’ with bank equipment and drive thru. North American Buildings – 316-821-9590 – www.NorthAmericanBuildings.com.

The Arkansas

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

FOR SALE: Modular Branch Office Building. Good Condition. Equipped and furnished. Includes security cameras, money vault. Lobby, Teller area, Break Room, Three Offices, Two Restrooms. Fully carpeted. Painted drywall with library paneling wainscot. Wired for security. Ample storage.

Approximately 10 years old. In great condition. 1,863 square feet. Includes 676 square foot drive through canopy and matching front porch. $85,000.

Contact Lex or Alex at (501) 707-1154.

August 2016 | The Arkansas Banker

27

28

Office Depot is an ABA Endorsed Vendor

The Arkansas Banker | August 2016