The Arkansas Banker February 2019

February 2019

The

Convention Issue

Volume CII, No. 2

ABA

APRIL 1– 3, 2019 Washington, D.C.

HELP WASHINGTON GET IT RIGHT Now more than ever, regulators and Congress need to hear from bankers across America to keep policy moving in the right direction.

Join fellow bankers in Washington to make sure policymakers get the details right.

Registration is Free to Bankers

aba.com/Summit 2

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February 2019 COLUMNS

Volume CII, No. 2

President’s Message

4

Lorrie Trogden

Chairman’s Column Cathy Owen

Government Relations

8

Federal Comment Periods

5 Minutes with Selena Barber

DEPARTMENTS

THE CONVENTION ISSUE

6

9

Meet Your Lawmakers: Governor Asa Hutchinson

10

Member News

24

Professional Development Live Events Webinars AmBA Training

Banker News & Moves

5 7 23

25

12

18

14

Compliance 2019: What to Expect Next

The Renaissance Beginnings of Modern Banking

2019 ABA Annual Convention Preview

by Sarah Sauceda

20

19

The State of Banking: Cybersecurity, Liquidity & Local Banking

American Idol to Headline Celebration

by Candace Franks

22 The Arkansas Banker Online

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

Community Banking in Arkansas: It is the Future

by Julie Stackhouse

SURVEY SAYS

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

How many times do you check social media each day?

Random question.

Random bankers.

Interesting results.

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to take part in March’s Survey Says

73%

11%

0-10 Times

26-50 Times

16%

11-25 Times February 2019

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PRESIDENT’S MESSAGE Transformation & Shaping Legislation The Great Arkansas Road Tour 2019 continues in February, bringing new bank visits to Batesville and Van Buren as well as a bank board retreat visit. It also brings important banking industry issues here at home in the state legislature.

The first important issue is the Governor’s Transformation plan. The plan creates a Department of Commerce, which will house our State Bank Department along with Securities, Insurance, Economic Development Departments, and several smaller agencies and boards. You have received several communications from the Association about this and our involvement in assisting in shaping how the State Bank Department fits into the plan.

Although our preference and initial focus was to keep the State Bank Department autonomous, after meetings with the Governor and key legislators, it became necessary to work together with the Governor and offer bill language amendments that best protected pertinent State Bank Department operations.

The commerce bill (HB1371) has been published, and we are pleased to confirm it does contain our suggested amendments. The next step is for the bill to be discussed by the Senate State Agencies and Government Affairs Committee. However, the bill is not yet on the agenda as they are discussing all of the new department bills in filing order, and HB1371 was the last to be filed. After this, all department bills will be rolled into one large bill and will go through the normal legislation process. We will continue to monitor the bill and keep you updated via the state legislation section of the weekly eNews email sent every Tuesday. This section also includes other legislation that is of interest to our industry.

The second important issue is SB257, which would allow credit unions to take public deposits. Senator Kim Hammer ran the bill on February 8 in the Senate Insurance and Commerce Committee. Senator Joyce Elliott made the motion for due pass, but the bill failed for lack of a second. Your action in contacting committee members and the testimony from Chairman Cathy Owen and Larry Wilson helped us resoundingly defeat this bill. Procedure allows a couple of different ways for the bill to run again, and we will remain vigilant for any sign of this and will alert you should it happen.

I want to share a couple of key points about this issue; additional information can be found on our website: I. Expanding credit union powers in Arkansas will reduce the state budget. Banks paid over $500 million (2017) in state taxes, helping fund legislative budget priorities, such as education, law enforcement, hospitals, and roads.

Allowing credit unions to take these deposits would work against the state by reducing the state’s tax base which decreases allocations for vital government responsibilities.

II. The largest credit union in Arkansas, AFCU, is larger than 88% of Arkansas-headquartered banks, and pays $0 in taxes. With almost $2 billion in assets, it is escaping the obligation of paying approximately $2.3 million in taxes. If the AFCU wants to stray from its mission and act like a bank, it should be taxed like a bank.

III. Credit unions were given non-profit status with the mission of providing loans to people of modest means.

According to an American Bankers Association study of 2016 Home Mortgage Disclosure Act (HMDA) data, only 4% of mortgages originated in Arkansas went to low income borrowers, and 81% went to middle and upper income borrowers.

IV. Credit unions continue to outgrow their mission with attempts to grow commercial lending by asking Congress to raise commercial lending caps. This is not necessary as under current law credit unions can make unlimited small business loans under $50,000, with no repercussions to its statutory cap calculation – which best fits the intend non-profit mission.

Given these and other bills of industry importance, I encourage you to back the PAC, which is essential to supporting candidates who understand banker’s concerns. Visit the Advocacy page on our website to learn more about the PAC and our government relations program. As always, we will continue working on your behalf and remain involved in shaping banking law to protect the safety and soundness of the Arkansas banking system, and I hope to see you soon!

Lorrie Trogden | President & CEO Arkansas Bankers Association

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ABA PROFESSIONAL DEVELOPMENT

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

MARCH 2019 Real Estate Lending Compliance

Basics of Banking

March 7-8, 2019 | ABA Office, Little Rock Who should attend: Compliance Officers, Loan Officers, Auditors

Consumer Lending School March 11-12, 2019 | ABA Office, Little Rock Who should attend: Consumer Lenders, Loan officers

March 22, 2019 | ABA Office, Little Rock Who should attend: Credit Analysts, Personal Bankers, New Bankers

Real Estate Appraisal Program Updates March 28, 2019 | ABA Office, Little Rock Who should attend: Anyone involved with appraisal reports, Credit & Loan officers, Credit Administration Supervisors

CBSM (Certified Banking Security Manager) Certification March 20-21, 2019 | ABA Office, Little Rock Who should attend: ISO, Auditor, IT Manager, Compliance, Security Officer, Operations Officer

3 4

APRIL

MAY

Adv. Cash Flow Analysis

8

Adv. Tax Return Analysis

14-15 TRID Refresh

8-11 Compliance School

Call Report Prep

16 Key Ratio Analysis

16-18 ABA Annual Convention

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6

JUNE

Intro to Consumer Lending Advanced BSA Brush-Up

12-13 CBCM Certification

22-26 Commercial Lending

School 25

Loan Assistants & Processors Workshop For more information about ABA Live Events, log on to www.arkbankers.org or call 501.376.3741.

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CHAIRMAN’S COLUMN Coming Together at Annual Convention I hope you are able to join us for our 129th Annual Arkansas Bankers Association Convention, including Casino Night, Simmons Strawberry Breakfast, and the DD&F Celebration & Dinner, featuring American Idol winner Kris Allen. Our Annual Convention is an excellent time to network with old friends and meet new ones. The banking industry’s ongoing consolidation makes it more important than ever to continually fuel our drive for success with both motivational and informative speakers.

I am especially proud to welcome Prince Lorenzo de’ Medici of the Medici family of Italy. He is an internationally-recognized artist and businessman, who comes from a long line of family bankers.

His family bank was established in the 1300s. It is known as the oldest bank in Europe and was the most successful bank of the Renaissance. He is the Medici family historian and will speak to us on the history of banking through the ages. One of our other featured speakers is Tom Rinaldi, a renowned ESPN correspondent and reporter, contributing many features and interviews for many of ESPN’s top event productions. He has won many awards, including twelve National Sports Emmy Awards, six Edward R. Murrow Awards and a host of other honors for his work. You do not want to miss the great line-up and all of the fun with your fellow bankers and vendors. The Convention will be followed by more wonderful speakers on the Day with the Commissioner.

The Annual Convention is also the time we recognize fellow banks and bankers for their years of service to our industry at the 2019 BKD Milestones in Banking luncheon. We will recognize men and women on their 40th and 50th year anniversaries who are actively employed in the banking industry.

At this time, we will also recognize financial institutions that are celebrating their 25th, 50th, 100th, 125th, or 150th year anniversary. If you have not already submitted the completed application forms for these, please contact the Association office or the forms can be found online at www.arkbankers.org.

Convention is a time to both remember and celebrate. None of us realized, or could have imagined, what the year had in store for us. The year was full of challenges, changes, and successes. We said a tearful goodbye to our Association president, and we celebrated a new president. We will remember Bill Holmes and recognize him for his service to our Association, as well as celebrate our new president, Lorrie Trogden.

Our continued success would not have been possible without the support and help of our wonderful Association staff and a number of active bankers and even a retired banker, who stepped up to serve on several task forces we formed this year. I want to especially thank our Association staff of Carla Brinkley, Kami Coleman, Traci Logsdon, Jessica Sahene, and Brenda Scarbrough. Please let them know how much you appreciate them. Although this has been a very tough year for them, they continued to work hard through both tears and celebrations to keep everything moving forward and making sure our Association never skipped a beat. Our new president, Lorrie Trogden, immediately hit the ground running and certainly hasn’t let any grass grow under her feet. I want to thank Larry Wilson, Reynie Rutledge, John Womack, Sean Williams, Chuck Morgan, Rob Robinson, Dave Dickson, Jim Cargill, Jon Harrell, and Jim Taylor, who either served on a special Task Force, our Executive Committee, or went over and beyond to help us in any way this year. I also want to thank Jeff Lynch and all of my staff at Eagle Bank, along with my family, who have been very supportive and patient. And lastly, I want to thank all of those bankers who took the time to show their support and appreciation to our staff via phone calls, emails and handwritten notes.

You will never know how much this meant to them.

Make your reservations today for the 2019 Annual Convention!

Remember, effective leaders never stop learning…

Thank you!

Cathy Owen | Chairman

Chairman of Eagle Bank & Trust, Little Rock

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ABA PROFESSIONAL DEVELOPMENT

MARCH 2019 Friday, March 1

Letters of Credit 10:00 a.m. – 12:00 p.m.

Tuesday, March 5

Commercial Real Estate Cash Flow: Part III 8:30 a.m. – 10:00 a.m.

ACH Origination and Same Day Entries 10:00 a.m. – 12:00 p.m.

Commercial Real Estate Appraisals: Part III 10:30 a.m. – 12:00 p.m.

Developing Personal and Global Cash Flow: Part III 1:00 p.m. – 2:30 p.m.

Cash Management: Generate More Fee Income 1:30 p.m. – 3:30 p.m.

WEBINARS

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

Consumer Real Estate Loans 1:30 p.m. – 3:30 p.m.

Friday, March 8

Business Plans That Get Results 10:00 a.m. – 12:00 p.m.

Tuesday, March 12

Commercial Real Estate Cash Flow: Part IV 8:30 a.m. – 10:00 a.m.

Commercial Real Estate Appraisals: Part IV 10:30 a.m. – 12:00 p.m.

Developing Personal and Global Cash Flow: Part IV 1:00p.m. – 2:30 p.m.

Basic Underwriting 1:30 p.m. – 3:30 p.m.

Wednesday, March 13 Wednesday, March 6

Quarterly Compliance Briefing: Spring 2019 10:00 a.m. – 12:00 p.m.

Commercial Construction Lending 1:30 p.m. – 3:30 p.m.

Using Personal Tax Returns for Global Cashflow 10:00 a.m. – 12:00 p.m.

Friday, March 15

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

Monday, March 18

Handling Deceased Deposit Accounts 1:30 p.m. – 3:30 p.m.

Tuesday, March 19 Right of Setoff 10:00 a.m. – 12:00 p.m.

Wednesday, March 20 Auditing HMDA 10:00 a.m. – 12:00 p.m.

RESPA-Those Pesky Section 8 Violations 10:00 a.m. – 12:00 p.m.

For Banking RMs: How Top Producing Bankers Prospect 1:30 p.m. – 2:30 p.m.

E-Sign for Lending and Critical E-Sign Implementation Issues 1:30 p.m. – 3:30 p.m.

Thursday, March 21

Thursday, March 14 Thursday, March 7

Annual Deposit Regulation Training for Frontline 1:30 p.m. – 3:30 p.m.

FFIEC Information Security Handbook Review 10:00 a.m. – 12:00 p.m.

Legal Liabilities when Check Fraud Occurs 10:00 a.m. – 12:00 p.m.

Managing a Successful Call Center 1:30 p.m. – 3:30 p.m.

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

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GOVERNMENT RELATIONS Federal Feedback: You’re The Expert Engage in transforming what is to what should be. Your voice on federal regulation matters. There are two proposed rules and regulations changes open for comment that close in the coming month. Take a few minutes and speak up about changes in our profession!

Log on to www.arkbankers.org to submit comments on these and other upcoming regulatory issues: Proposed Rule on New Requirements for Validating, Approving Credit Score Models Agency: FHFA Comments Close March 21, 2019 Federal Housing Finance Agency issued a proposed rule to establish new requirements for the validation and approval of credit score models by Fannie Mae and Freddie Mac. Proposed Rule to Increase the Assets Threshold under the Depository Institution Management Interlocks Act Agency: OCC, Fed, FDIC Comments Close April 1, 2019 Will increase the major assets prohibition threshold under the Depository Institution Management Interlocks Act (DIMIA) to $10 billion to account for changes in the United States banking market. The current threshold, set in 1996, prohibits management officials from depository institutions with total assets above $2.5 billion (or any affiliate of such an organization) from serving at the same time as a management official of an unaffiliated depository organization with total assets exceeding $1.5 billion (or any affiliate of such an organization).

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5 MINUTES WITH

SELENA BARBER

Sr. Business Development Officer of Centennial Bank, Jonesboro much at all about United Way. But through the support of the bank, I have been able to serve in multiple capacities for the organization. In addition, my experience as a CASA volunteer has really enlightened me to the plight of children in foster care in our area.

What trait does the modern banker – or business leader – need to be successful?

The ability to adapt to changing work environments and new technologies coupled with a positive, forward thinking attitude can go a long way in creating success in today’s workplace. The desire to increase knowledge and continue learning throughout a lifetime is so important.

Give us a little background on yourself: I am a native of Harrisburg and earned a communications degree at Arkansas State University. After being a stay-athome mom for several years, I began my banking career in 2001 at The Bank of Jonesboro as a marketing assistant and eventually became marketing director at Liberty Bank of Arkansas. I now serve as a senior vice president of business development at Centennial Bank.

My mentor and supervisor, the late Ed Way, had much to do with my love of the banking industry. He taught me about customer service, putting in the extra effort and his “come early, stay late” philosophy that helped make him a success.

His approach to banking and life is something I try to emulate daily.

What is the best part of being a hometown banker?

The knowledge that many of us in the business and banking community are working toward a common goal of making Jonesboro a better place to live, work and raise a family.

Connections made throughout the community often make doing business a pleasure.

What is something you simply cannot resist?

A volunteer opportunity helping a well-organized committee or board with an important mission is often hard for me to decline. I also really love outdoor activities on sunny days and homemade chocolate cookies.

I’m married to Brett Hall Barber, a real estate agent and radio personality in Jonesboro. We own Local Culture, a frozen yogurt store and have two adult children, Evan and Andrew Barber and a daughter-in-law, Sarah.

From the Jonesboro Regional Chamber of Commerce to the United Way, you are heavily involved in the community...which of your civic roles has had the greatest impact on you?

My current role as the board chair of the Chamber of Commerce is certainly the most all-encompassing. The opportunities for networking and business building with others in the community can’t be surpassed.

I’ve also really enjoyed supporting United Way and its programs. Before I began working in banking, I didn’t know February 2019

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MEET YOUR LAWMAKERS...

GOVERNOR ASA HUTCHINSON

Asa Hutchinson is the 46th governor of the State of Arkansas. In 2018, he was re-elected with 65% of the vote, having received more votes than any other candidate for governor in the state’s history.

Under his economic development policies, 70,000 more people are working in Arkansas than when he took office, and he has signed incentive agreements with nearly 400 companies that were expanding or opening in the state. For nearly two years, the state’s unemployment rate has stayed at or below the national rate.

What concerns do you hear most expressed from Arkansans?

I don’t hear “concerns” so much as I hear ideas and expressions of hope for the future. Arkansans are not complainers.

We are optimistic. We have overcome tough times in our history, and over the past several decades, we have done much to polish our reputation nationally as we succeed in business, financial services, and other areas.

We are addressing many areas that many would consider “issues of concern.”

We have cut the income tax by the most ever in the state’s history, and we will cut it some more. We have reduced our

unemployment rate to historic lows.

We were the first state to require high schools to teach computer science.

This adds up to a state on the move.

We have an economic wind at our back. In 2018, AEDC completed 216 business recruitment, retention and expansion projects. That translates to more than 4,300 new jobs, with a capital investment of $1.6 billion.

All told, we have signed more than 400 economic development deals, which produced more than 17,000 jobs, and more than $8 billion in capital investment. Our total job growth since January 2015 is 80,300.

What qualities make Arkansas a good place to do business?

Our emphasis on computer science and STEM education, and our new push to provide post-secondary training for a variety of trades, is strengthening the already strong, savvy workforce that has put us on the map.

Our leaders are rooted in the solid business traditions of the past, and those traditions inform and energize their vision for our future. Our leadership in computer science education has caught the attention of the rest of the country. Our innovation centers and accelerator programs are attracting entrepreneurs from other places as well as helping us retain our homegrown talent.

Other qualities that make Arkansas a good place to do business are the same qualities that make Arkansas a wonderful place to live. We enjoy natural beauty from the Delta to the Ozarks, which attracts many who are scouting for a place to expand their companies.

But our natural resources are more than simply pretty places to enjoy.

We have excellent river access, which is integral to our intermodal system. We are improving our roads and highways, which are vital to moving products to market.

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Commissioner has a reputation for her open door to concerns of industry and consumer alike.

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

We are now leading the nation in a comprehensive computer science education program.

But our people are the most important reason. Arkansans work hard. Arkansans are kind and generous, quick to pitch in whatever the need and wherever the need takes them. That generosity of spirit is an intangible quality, but it is the foundation of everything else we do as a state.

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

Banking is a particularly bright spot in our strong economy. Arkansas banks employ about 20,000 people and serve almost 5 million customers nationally.

Eighty percent of the deposits in the state are in banks with headquarters in Arkansas. With about $30 billion in existing small business and small farm loans, these banks help to drive our economy.

seriously consider moving to Arkansas.

In addition, we are working to increase teacher pay and provide new funding for highways.

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

Arkansas Bankers Association is always an effective advocate, and the

What are the last two books you’ve read?

Doris Kearns Goodwin’s book, “Leadership in Turbulent Times,” examines the life and leadership of Abraham Lincoln, Theodore Roosevelt, Franklin D. Roosevelt, and Lyndon B. Johnson.

“Grant,” Ron Chernow’s biography of Ulysses S. Grant. ...and the last two movies you’ve seen?

True Detective series.

VICE – regretfully.

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

My 5.9 Tax Cut Plan is my major focus for the session, and my plan to transform government is close behind it. I want to cut taxes so that Arkansans can keep more of their paychecks. I want to lower the tax rate so that CEOs will February 2019

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2019

What to Expect Next

by Sarah Sauceda Compliance Alliance

2018 was a rather exciting year for banking compliance. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) provided immense relief to community banks and also proved that acronyms don’t really have to be that short.

Updates to the TILA/RESPA Integrated Disclosures (TRID) and the Home Mortgage Disclosure Act (HMDA) have kept everyone on their toes trying to guess what those pesky grey areas mean. Bank officers learned the true meaning of who a “beneficial owner” really is. And not unlike like a Peach from Super Mario, those ever present flood regulations have been saved once again from lapse.

With those show-stoppers, I think I can speak for all of us when I say that 2019 has a lot to live up to. Though, it does look as though the new year will not disappoint! Major twenty-nineteen provisions set to take effect in the 2019 include: expansion of the Same-Day

National Automated Clearing House Association (NACHA) rules; adjustments to the Truth In Lending (TIL) annual thresholds; the Prepaid Account Rule Amendments; and Amendments to Regulations CC (Reg. CC).

First up on this star-studded agenda are the NACHA expansions. In a nutshell, this expansion to the Same-Day rules was implemented to enable faster funds availability for ACH transactions, elongate Same-Day ACH processing hours, and increase per-transaction dollar limitations. After the initial adoption of the Same-Day rules, the NACHA voting membership approved the aforementioned new set of rules which take effect in three separate phases. Each separate phase has a separate effective date.

The first phase of the expanded rules provides enhanced access to same-day ACH transactions. It allows Same-Day ACH transactions to be submitted for an additional two hours each and every business day. This phase becomes effective on September 20, 2019. The

second phase of the expanded rules ups the per-transaction dollar limit from $25,000 to $100,000. This means that a single Same-Day ACH transaction will be limited to not being over $100,000. Any ACH transactions over that $100,000 limit won’t be rejected, though. They will just be processed for next-day settlement rather than SameDay processing. This phase becomes effective on March 20, 2020. The third and final phase increases the speed of funds availability for certain, specific Same-Day ACH transactions and certain next-day ACH credits. This phase becomes effective on September 18, 2020.

Next on the agenda is the set of TIL threshold adjustments. Now, for seasoned compliance professionals, you know a TIL adjustment is not all that novel. However, they are important and worth mentioning. These adjustments affect open-end consumer credit plans under the CARD Act in that the adjusted dollar amount for the safe harbor in respect to a first violation penalty fee

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before verification. The Amendments, for digital wallets, provide an exclusion for business relationships between prepaid account issuers and issuers of traditional credit cards from the definition of “business partner.” This would, in turn, exempt the arrangements from the hybrid prepaid credit card rules. Lastly, the Amendments make edits to both Regulation E and Regulation Z to correct typos, provide for more consistency between the rule and the regulations, and to correct other minor oversights.

Again – the effective date for these change is April 1, 2019.

will increase to $28 – up $1 from $27.

Under that same CARD Act umbrella, the safe harbor for a subsequent violation penalty fee will also increase $1 to $39.

For HOEPA loans, the adjusted total loan threshold will be $21,459, and the adjusted points-and-fees dollar trigger will be $1,077. Finally, the threshold adjustments for qualified mortgages are as follows: “the maximum thresholds for total points and fees in 2019 will be 3 percent of the total loan amount for a loan greater than or equal to $107,747; $3,232 for a loan amount greater than or equal to $64,648 but less than $107,747; 5 percent of the total loan amount for a loan greater than or equal to $21,549 but less than $64,648; $1,077 for a loan amount greater than or equal to $13,468 but less than $21,549; and 8 percent of the total loan amount for a loan amount less than $13,468.”

Notably, however, the threshold that triggers the disclosure requirement

for minimum interest charges remains unchanged. It will keep steady at $1.00 in 2019. These threshold adjustments become effective on January 1, 2019.

Now onto the Prepaid Accounts Rule Amendments (Amendments) – arguably one of the more major regulations to hit in 2019. The Amendments touch upon four areas: (1) the final effective date of the rule’s provisions; (2) error resolution and limited liability under Reg. E; (3) digital wallets; and (4) minor clarifications and adjustments.

The final effective dates set out by the Amendments place the entirety of the rule becoming effective on April 1, 2019.

In regards to error resolution and limited liability, the Amendments provide that banks are not required to follow the liability nor error resolution provisions on unverified prepaid accounts other than on payroll card accounts or governmental benefit accounts. Further, for later-verified prepaid accounts, financial institutions are not required to follow those same provisions on disputed transactions that occurred

Finally, the Reg. CC amendments add a presumption and clarify the scope in disputes involving substitute/electronic checks and alterations/unauthorized signatures. The presumption addition may be summarized as follows: when an original (paper-based) check is not available for inspection, it shall be presumed that a substitute or electronic check was altered in certain situations.

It should be noted, however, that the breadth of the presumption is fairly limited.

In conclusion, 2019 will pack quite a punch. Compliance Alliance can help you keep track of these changes, though. One tool I highly recommend is the Regulatory Change Management Tracker: https://www. compliancealliance.com/find-a-tool/ tool/regulatory-change-managementtracker . It is updated regularly and lists out major provisions that banks should be aware of. If you have any questions, our experts are here to help you! You may reach us at either hotline@compliancealliance.com or (888) 353-3933.

February 2019

Sarah Sauceda serves as Associate General Counsel for Compliance Alliance.

She is a graduate of Lamar University and Baylor Law School. Before coming to Compliance Alliance, she worked at Frost Bank within their Credit Administration Department.

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ARKANSAS BANKERS ASSOCIATION

ANNUAL CONVENTION expanding horizons

April 16-18, 2019 Little Rock Marriott

Register now for the 129th Arkansas Bankers Association Annual Convention, slated for April 16-18 at the Little Rock Marriott in downtown Little Rock.

Registration and details are available online at www.arkbankers.org/Convention.aspx Expand your network. Convention is a great place to connect — you’ll be surrounded by like-minded peers from across the state, all with their own experiences and expertise to share. Our bankers often say the spontaneous conversations they have with other attendees during these casual events yield some of the greatest take-aways.

Energize your mindset. Nothing is as energizing as a great meeting! This year’s Convention program includes banking industry pros, Arkansas elected officials, a nationally-recognized storyteller, a prince, and two amazing panel discussions. Come with an open mind, and be ready to leave with a new outlook!

Enjoy yourself. Convention isn’t all work and no play...there are plenty of opportunities to let loose: Spark some friendly competition in the 2019 Golf Tournament and Casino Night Opening Reception! Or grab a table with some old — or new — friends during the Celebration & Dinner; DD&F has booked another entertaining evening with former American Idol, Arkansas’s own Kris Allen!

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ACCOMMODATIONS

Little Rock Marriott | 501.906.4000 Group Rate: $170 per night (single or double room rate), plus applicable room tax Group Rate Deadline: Thursday, March 22, 2019 Reference “Arkansas Bankers Association” to receive the group rate. All cancellations must be made 48 hours prior to the scheduled arrival date.

Convention Preview

ENERGIZE WITH KEYNOTE SPEAKERS TOM RINALDI

PRINCE LORENZO DE’MEDICI

As an ESPN correspondent, Tom Rinaldi has had the privilege of interviewing some of the biggest athletes of our time including Magic Johnson, Derek Jeter, Jack Nicklaus, and Andrew Luck. His skill as a storyteller have allowed him to share tales of hope, courage, comebacks, and gamechangers through his profiles on SportsCenter, Outside the Lines, College GameDay and NFL Countdown.

From banking to fine art, the Medici dynasty has influenced so many staples of today’s culture. Artist, author, and descendant Prince Lorenzo de’Medici will discuss his family’s rise to power in the 1500s, their origination of modern banking, and the impact they have left throughout Europe and globally.

Tom is the recipient of three Regional Emmy Awards, three Associated Press Awards, as well as the USA Today Featureof-the-Year award.

GET A FRESH PERSPECTIVE ARKANSAS GOVERNOR ASA HUTCHINSON

ATTORNEY GENERAL LESLIE RUTLEDGE

MANAGEMENT & MILLENNIALS PANEL

As our state’s 46th Governor, Asa Hutchinson has brought a new point of view to Arkansas. With a strong focus on new business and technology, he has vowed to “make Arkansas a great place to live, work, and raise a family.”

Elected in 2015, Attorney General Leslie Rutledge believes that face-to-face conversations lead to real solutions. She brings a heart of service to the office, and made consumer protection, internet safety, and supporting military families among her top priorities.

As management ages and Millennials begin to climb the corporate ladder, companies are suffering through tension and dissonance between Millennials and Boomers. Finding productive ways to work across the generation gap is essential, and the organizations that do this well will have significant strategic advantages over those that don’t. A moderator will guide this discussion amongst seemingly opposite groups. Are their views really that different, or is it their approach?

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CONNECT WITH REGULATORS & LAWMAKERS Wednesday will feature the 23rd annual “Day with the Commissioner” hosted by the Arkansas State Bank Department. Each year, Commissioner Candace Franks schedules an information-packed speaker line-up to update bankers on current topics facing the industry’s changing environment.

KRISTIE ELMQUIST As Regional Director of FDIC’s Dallas Region, Kristie Elmquist directs the supervision of more than 1,200 insured depository institutions. Elmquist has 30 years of FDIC service. Prior to her current appointment, she served as Deputy Regional Director (Risk Management) in the Dallas Region. Other management positions that Elmquist has held include Acting Associate Director, Assistant Regional Director, Field Supervisor, Supervisory Examiner, and Senior Bank Examiner.

Elmquist holds bank examiner commissions in both Risk Management and Consumer Protection and has worked in three regions (Dallas, Kansas City, and New York) as well as the FDIC’s Washington Office.

JULIE STACKHOUSE Julie Stackhouse is executive vice president and managing officer of Supervision, Credit, Community Development and Learning Innovation for the Federal Reserve Bank of St. Louis. Prior to joining the St. Louis Fed in September 2002, Stackhouse served as Vice President and Managing Officer of the Risk Management Department of the Federal Reserve Bank of Minneapolis. In addition, she was formerly an officer with the Federal Reserve Bank of Kansas City.

In 2010, Stackhouse was named a St. Louis Business Journal “Most Influential Business Women” recipient, and in 2016, was awarded the Delta Sigma Pi Lifetime Achievement Award.

CHRIS LOW Chris Low has more than 30 years experience tracking U.S. and global economies, financial markets, central banks, and fiscal policy, as well as six years’ experience as a money manager, giving him a unique ability to distill economic events into information useful to investors.

Low writes daily economic and market updates, weekly economic commentaries, and regular economic forecasts. He is a member of SIFMA’s Economic Committee and the American Bankers Association’s Economic Advisory Committee to the Federal Reserve Board of Governors, where he has served as Chairman.

Low has been quoted in Business Week, The Wall Street Journal, The New York Times, and many other publications; he is a regular on Bloomberg TV, CNBC, and Fox Business Channel. Chris has been recognized multiple times by Bloomberg as the most accurate forecaster of Treasury note yields.

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CONNECT WITH NETWORKING EVENTS ANNUAL GOLF TOURNAMENT

Convention Preview SCHEDULE OF EVENTS

TUESDAY, APRIL 16

The annual Convention Golf Tournament is back! Join bankers from across the state at the Maumelle Country Club for a 4-man scramble.

Everyone is invited to participate in this tournament, so recruit your co-workers or customers to join in the fun!

Golf Tournament

Registration & Social Casino Night

WEDNESDAY, APRIL 17

Networking Breakfast

ABA Business Session & Officer Installation

CASINO NIGHT

2019 will see a new twist on the popular Game Night Opening Reception: Bankers and guests can try their luck at poker, blackjack, roulette, or craps on Tuesday evening from 5:00 to 7:00. There will be food, music, and prize give-aways throughout the evening.

Featured Speakers Tom Rinaldi, Prince Lorenzo de’Medici, Arkansas Governor Asa Hutchinson (invited), and Arkansas Attorney General Leslie Rutledge (invited) Milestones in Banking Awards M&Ms: Management and Millennials Panel Discussion Chairman’s Reception DD&F Celebration & Dinner Featuring American Idol Winner Kris Allen

THURSDAY, APRIL 18

Simmons Strawberry Breakfast

DINNER & A SHOW

Day with the Commissioner

Recognize outgoing Chairman Cathy Owen, and incoming Chairman Rob Robinson at the annual DD&F Dinner and Celebration on Wednesday evening. Headlining the event will be 2009 American Idol winner and Conway native Kris Allen.

Guest Speakers Kristie Elmquist (FDIC), Julie Stackhouse (Federal Reserve Bank of St. Louis), and Chris Low (FTN Financial) Dialogue with State Bankers Panel

THANK YOU TO THESE CONVENTION SPONSORS American Bankers Association Arkansas Bankers Life Insurance Co. Bankers Healthcare Group BKD, LLP Card Assets DD&F Consulting Group NFP | Equias Alliance, an NFP Company

Federal Home Loan Bank of Dallas Finastra First National Bankers Bank Foundation Life Insurance Co. of Arkansas Jack Henry & Associates The Johanson Group / DB Squared Promontory Interfinancial Network

Quattlebaum, Grooms & Tull, PLLC SBS CyberSecurity Simmons Bank Southeastern Commercial Finance Telecomp Travelers Works24

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17

The Renaissance Beginnings of Modern Banking The Renaissance was a period of “rebirth” – in art, architecture, politics, science and finance – and at the middle of it all was a family now renowned as one of the most influential in world history: the Medicis.

Prince Lorenzo Maria Raimondo de’Medici in Campitelli di Calabria of the Princes of Viterbo is a descendant of the legendary Medici dynasty of Florence.

An acclaimed artist, successful businessman, and a connoisseur of Italian cuisine, Prince Lorenzo now splits time between his palace in Rome and a life in the U.S. He will join Arkansas bankers at the 2019 Annual Convention in Little Rock to discuss the Renaissance beginnings of modern banking.

Among his many talents, Prince Lorenzo is a family historian, who colors the past with tales from his family and the impact his ancestors have had on modern society. From patrons of the arts to popes, the influence of the Medicis can be found everywhere.

Tracing their origins to the trade of oranges and silk, the Italian Medici family bank was established in the 1300s, making it the oldest known bank in Europe.

The organization was successful during the Renaissance era, serving as the chief bank for the Roman Catholic curia, and branching into the major cities of Italy, as well as in London, Lyon, Geneva, Bruges, and Avignon.

Knowing that innovation was a key element to success in the banking industry, the Medici are credited with the invention of modern banking through the creation of “promise of payment” checks, branch banking, and the general ledger system. These innovations, which are now taken for granted, allowed for the safe transfer of money without a physical transaction. There was even a time when the currency issued by the Medicis, the florin, was accepted and used throughout Europe as the preferred currency to conduct business, commerce, and trade.

The success of their bank, investments, and financial management helped the Medici family to rise to political power in Florence until they eventually became monarchs in the 16th century.

While their business acumen propelled them to royalty, the Medicis are perhaps more well-known for their philanthropic efforts and contributions to the world of art. The family sponsored the work of Leonardo da Vinci, Michelangelo, Botticelli, and countless other artists of the time.

It makes sense then that paralleling his interest in history, Prince Lorenzo has an unwavering passion for the arts. He has merged the two into a career of creating unique portraits of his ancestors to continue their vast cultural legacy in a style that is referred to as Renaissance Pop. His artwork begins with the collection of portraits and engravings of his ancestors that he knew from childhood, and adds a layer of color and three dimensional elements to help tell the backstory of each of the portrayed characters. The prince uses this style to honor the tradition of culture and philanthropy established by his family, but with a modern twist to reach current generations.

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He will bring this modern Renaissance and global view to the ABA Convention on Wednesday, April 17. In addition to speaking during the general session, attendees are invited to attend a private

Convention Preview

American Idol to Headline Convention Celebration & Dinner American Idol, humanitarian, and Arkansan Kris Allen will grace the stage at the 2019 Arkansas Bankers Association Annual Convention. Allen and his band will perform during the DD&F Celebration & Dinner on Wednesday, April 17.

Allen is a singer and songwriter who rose to fame through the Fox hit television show, American Idol. After stiff competition from fellow contestants Adam Lambert and Danny Gokey, he was named Season 8 American Idol on May 20, 2009.

Since his time on American Idol, Kris has put out five albums with hits including “Live Like We’re Dying” and “No Boundaries.”

Even after finding fame, he continues to give back to organizations across the country, including the Music Empowers Foundations, Little Kids Rock, Heifer International, and Direct Relief. Last year, he was named Nashville’s Leukemia and Lymphoma Society’s Man of the Year, raising over $90,000 for the organization.

reception with Prince Lorenzo de’Medici as a PAC fundraiser.

For details and to register for this event, call (501) 376-3741.

Allen was born in Jacksonville and later moved to Conway. Prior to appearing on American Idol, Allen participated in missionary work in several countries around the world through the University of Central Arkansas Chi Alpha campus ministry, including Burma, Thailand, Mozambique, Morocco, Spain, and South Africa.

Admission to the DD&F Celebration & Dinner is included for Convention registrants.

There is also a partial registration option for guests, or bankers wishing to attend only the evening’s festivities. Please log on to www.arkbankers.org/convention.aspx for details.

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The State of Banking

Cybersecurity, Liquidity & Local Banking

by Candace Franks Arkansas State Bank Department Commissioner

I am happy to report that 2018 was another successful year for the banking industry in Arkansas. As we head into 2019, once again, I expect the year will be filled with potential opportunities for our industry and certainly a continued amount of known and unknown challenges. I am comforted with the knowledge and experience that our Arkansas banks will rise to the occasion and meet each day with purpose and determination to provide the best products and services to all consumers.

As a state regulator, I want consumers in Arkansas to have access to multiple sources of credit and banking services, but I would like to know that their main source of credit is local.

That is important. Community banks represent 79 percent of all U.S. banks, nearly half of small business and three-quarters of agriculture lending. Community banks are vital to both the state and local economies. My job as Bank Commissioner for the State of Arkansas does not limit itself to our borders. I work with other state regulators across the country to ensure a safe and sound banking system for consumers. Through the Conference of State Bank Supervisors (CSBS), we are addressing emerging risks, harmonizing nonbank supervision and advocating for tailored financial policy for community banks.

All banks are faced with a myriad of issues in today’s financial world. State regulators remain concerned about the liquidity and funding of community banks. Regulators have focused on banks with high loan-to-deposit ratios and reliance on

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non-core funding to make sure they are planning, stress testing and evaluating cash flow. We are concerned about the Prompt Corrective Action “cliff effect” for banks that fall below well-capitalized and rely on brokered deposits. CSBS is coordinating with examiners to develop a tool that would identify banks with increasing liquidity risk by considering, among other items, the level of unencumbered liquidity on the balance sheet, the reliance on non-core funding like brokered deposits and the deposits over the deposit insurance limits.

One of the biggest risks that we are all facing is cybersecurity.

It is not enough for a financial institution to just be compliant.

We encourage a cyber culture for all employees in all businesses and institutions. Through CSBS, state regulators are also working with Treasury and other federal agencies to help community banks coordinate with FDIC and the Federal Reserve Board of Governors on cyber exam work programs.

Additionally, I want to encourage innovation. CSBS is making tremendous progress with Vision 2020, a set of initiatives designed to modernize state regulation of nonbanks, including financial technology firms. By 2020, state regulators will adopt an integrated, 50-state licensing and supervisory system, leveraging technology and smart regulatory policy to transform the interactions of industry, regulators and consumers. I also am working with other state regulators to make sure that federal policy is tailored to fit community banks. We made progress with tailored federal policy due to last year’s expansive banking law. It included many provisions we supported, such as a new category of qualified mortgages

Convention Preview for small banks, changes to reciprocal deposits and an expansion to the Volker rule exemption. Now we are focused on how it will be implemented.

a long-standing commitment to meeting the needs of the communities they serve. Here’s to another successful year for Arkansas banks!

State regulators have also been meeting with federal regulators, as required in the law, on a variety of issues such as the new community bank leverage ratio, changes to reciprocal deposits and the appraiser shortage in rural areas.

State regulators also remain attentive to Capitol Hill. We strongly believe that the FDIC board must have at least one member who “shall have state bank supervisory experience,” as required by law. We are hopeful that the requirement is fulfilled during the nomination and confirmation process for the two open seats.

I am very excited about this year’s Day with the Commissioner.

We have an outstanding group of speakers from across the industry lined up, and I hope you will be able to join us on April 18, 2019. I look forward to seeing all of you in April!

Finally, as your Bank Commissioner, safety and soundness in the Arkansas banking system is always my priority. But, advocating for right-sized regulation that makes sense for the both consumers and state chartered banks remains very important. Tailoring regulation, supervision and enforcement for the various levels of risk and operation of our Arkansas banks is key to maintaining a safe and sound banking system. Arkansas banks have continued to exhibit strong performance, innovative practices and functions and

Candace A. Franks is the 21st Commissioner of the Arkansas State Bank Department, who began serving in this role in 2007. As Bank Commissioner, her responsibilities include the regulation, supervision and examination of Arkansas statechartered banks, bank holding companies, a trust company and Arkansas Capital Corporation.

On March 17, 2017, Governor Asa Hutchinson appointed Commissioner Franks to the Board of Trustees of the Arkansas Public Employees Retirement System, where she is currently serving as Chairman. She also serves as a trustee on the Board of Directors of the Arkansas Teachers Retirement System, and is the former Chairman of the Conference of State Bank Supervisors.

Thanks to our Preferred IOLTA Banks for helping us represent hope for Arkansas families and their communities.

Anstaff Bank Bank of Fayetteville Bank of Little Rock Bank OZK Centennial Bank Chambers Bank Farmers & Merchants Bank First National Bank - Paragould

First National Banking Company First Security Bank First State Bank - Lonoke Grand Savings Bank People’s Bank - Magnolia Simmons Bank Southern Bancorp Union Bank & Trust

To learn more about the Arkansas IOLTA Preferred Banks program, please visit arkansasjustice.org/iolta/banks

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Community Banking in Arkansas: It is the Future!

By Julie Stackhouse Federal Reserve Bank of St. Louis

The recently announced merger of BB&T and Suntrust has given rise to numerous headlines: BB&T and Suntrust - Regional Merger Creating Another Banking Giant1 BB&T and Suntrust have Plenty of Branch Fat to Trim2 The BB&T-Suntrust Deal May be a One Off3 Indeed, the transaction would result in the largest bank merger since the financial crisis, resulting in the sixth largest banking organization headquartered in the U.S. Although the size of the merger is significant, the transaction reflects a

continuing trend of consolidation in the banking industry. In 1980, the U.S. was home to more than 19,000 bank and thrift charters and just over 42,000 branches. Today, there are only 5,384 bank and thrift charters with 87,547 branches. And just 10 years ago, the number of bank branches reversed its steady increase and began to decline (figure 1).

The trend in mergers is likely to continue as banks of all sizes look for scale to remain viable in a changing banking environment. Many community banks, in particular, face challenges in absorbing the costs of regulation (figure 2), providing for management succession, and generating core deposits. The competition from online deposit and small business line operations has the potential to accelerate the challenges.

So, with these pressures, what does the future hold for community bank in Arkansas? While I worry about competition from nonbank financial services providers, it is very clear to me that well run community banks will continue to thrive. And here are the reasons:

Figure 1 Source: Summary of Deposits (FDIC); Consolidated Reports of Condition and Income

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The people - During my travels throughout the state of Arkansas, I have met smart, committed leaders of banks. These individuals are also leaders in their communities, creating strong loyalties driven by respect.

Convention Preview

Figure 2 Source: CSBS National Survey of Community Banks

The places (community banks support) - Arkansas community banks build thriving businesses.

They serve as advisors to businesses in their communities, helping them calibrate their plans to grow. And ultimately, the strength of businesses and the economy in the community is vital to the community’s success.

The things (community banks do for their communities) - Arkansas

community banks support their communities in every way. From contributions of time and money to local nonprofits to special fundraising campaigns for schools to free popcorn in the lobby, local banks have a strong sense of commitment to the community.

savvy consumers value their relationship with their local community bank.

Community banking in Arkansas — it is the future!

Julie Stackhouse is Senior Vice President and Managing Officer of Banking Supervision, Credit, Community Development and Learning Innovation for the Federal Reserve Bank of St. Louis.

These “soft” factors are crucial. Much as many of us prefer the local hardware store to the “big box” retailers, so will

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

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MEMBER NEWS

Stone Bank Makes Three-Year Commitment to #believeboonecounty Stone Bank has made a 3-year, $7,500 per year commitment to the “#believeboonecounty” campaign. The total contribution of $22,500 makes the bank one of the strategic initiative’s largest underwriters.

“Boone County began the initiative to accomplish four major goals: Develop, retain and acquire talent, advance the region’s economy, improve quality of life and tell our story,” said Dusty Middleton, Stone Bank Senior Vice President and Harrison Market Manager.

“From those initial meetings, the initiative has developed a strategic plan to accomplish those goals including new promotional materials and intensive Internet management.

Our commitment goes well beyond a monetary contribution,” said Middleton. “We are committed to having our people involved at every level.”

“After opening in temporary space in December of 2016, our Harrison location has originated more than $80 million in loans and grown to nearly $50 million in deposits,” said Middleton.

The bank opened their new financial center at 1302 Hwy. 62/65N in May of 2018. Stone Bank is a $372 million bank with additional offices in Mountain View, White Hall, Little Rock and Cave City. For more information about the campaign, visit www.believeboonecounty.com.

In back: Luke Feighert, Finance Director for the City of Harrison; Patty Methvin, former CEO of the Harrison Regional Chamber of Commerce; Gwen Hoffman, First National Bank of North Arkansas; Chonda Tapley, Harrison Housing Authority and John Sherman Pace Industries. In front: Jim Johnson, Casey Patrick, Tim Cooper, Marnie Oldner and Dusty Middleton, all of Stone Bank.

Farmers Bank & Trust and Albemarle Partner for Cpl. Clayton McWilliams Fundraiser Farmers Bank & Trust and Albemarle in Magnolia recently partnered to host a lunch plate fundraiser benefiting injured Arkansas State Police Corporal Clayton McWilliams. The event was held on January 30, 2019, and employees of both companies were able to sell and prepare 1,592 sandwich plates, 510 slider plates, and 40 rib plates. Together, the fundraiser generated a total donation of $17,523.00.

The Albemarle cooking/volunteer team prepped and cooked the meals with over 25 employees participating. Farmers Bank & Trust had six team members help along with the Columbia County Sheriff’s Department. This is one of many fundraisers the Albemarle cooking team has done over the past three years and the first for a member of the community.

The donation check was presented by Farmers Bank & Trust and Albemarle to the Arkansas State Police Foundation.

Farmers Bank & Trust Magnolia Market President, Monty Harrington, said, “The Farmers Bank & Trust team was proud to partner with Albemarle and the Columbia County Sheriff’s Department to help our local Arkansas State Police family

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In back: Chris Gosnell, Jessie Watson, Michelle Barrong, Todd Tribble, and Kimberly Jones. In front: Laurie Pinner, Emily Hamilton, Monty Harrington, Jason Bevan, Meagan Jean, and Tiffany Glass.

in need. I am blown away by the generosity of Magnolia residents for helping us make this fundraiser a success. We hope these funds can help Corporal Clayton McWilliams and his family to have a full and speedy recovery.”

BANKER NEWS & MOVES State Bank Department Promotes Two The Arkansas State Bank Department has announced two recent staff promotions.

Elliott Hartle was promoted to Bank Assistant Examiner effective December 2.

Wynne Morgan was promoted to Bank Senior Examiner effective December 30. n

Home BancShares’ Townsell Breaks the Glass Ceiling Home BancShares, Inc., and its wholly-owned subsidiary, Centennial Bank, announced in February that Donna Townsell has been elected as a member of both the Home BancShares and Centennial Bank Board of Directors, breaking the “glass ceiling” as the first female to serve on both boards simultaneously.

“This is a great strategic move for the next generation of HOMB and Centennial Bank,” said John W. Allison, Chairman of Home BancShares. “Donna, a Senior Executive Vice President, has been with the company twelve years and has served in a variety of critical roles including Vice President of Corporate Efficiencies,

Co-Chair of the Strategic Planning Committee, member of the Executive Committee, Director of Marketing, Director of Investor Relations and member of the Operations Committee, as well as being named a two-time winner of the coveted ‘Chairman’s Award’ for Centennial Bank,” continued Allison.

“Heading up Corporate Efficiencies gave her a wellrounded knowledge of the entire company. Serving as Director of Investor Relations has given her a full understanding of the performance metrics that shareholders, analysts and investors are interested in and that are required for us to continue to be the ‘Best Bank in America’ year after year. This combination makes Donna an excellent choice for a board seat as her knowledge of and commitment to the company will serve us well into the future,” Allison stated.

“In our twenty-year history one of the highest water marks for our company was the efficiency project that ultimately led our corporation to being ‘Best in Class’ of all banks in America.

Donna led this important initiative that changed the culture of our corporation,” Allison continued. “She is one of the best, (male or female), I have worked with, and I’m confident she will provide guidance, leadership and expertise to both boards for years to come,” said Allison.

“My twelve years with the bank have been the most rewarding and influential experiences of my business career and certainly a

highlight in my life,” said Townsell. “The learning process and unbelievable opportunities that have been afforded to me have helped to prepare me for the honor of serving on both the Home BancShares and Centennial Bank Board of Directors. I will do my best to properly represent the shareholders, employees, customers and investors of our company for many years to come,” Townsell continued. “I am both honored and excited for this opportunity,” said Townsell. n

Arkansas Execs Promoted at BancorpSouth BancorpSouth Bank has announced the promotions of several executives across Arkansas.

BancorpSouth Little Rock Market President Chris Locke has been promoted to president of the bank’s Central Arkansas Division, which consists of four branches in Little Rock and branches in Hot Springs and Conway. Locke has been in banking for nearly 25 years, with nine of those at BancorpSouth.

Fort Smith Market President Blair Parnell has been promoted to president of the bank’s Northwest Arkansas Division, which includes 10 branches in six communities surrounding Fort Smith. Parnell has 35 February 2019

years of banking experience, with 24 of those with BancorpSouth.

El Dorado Market President David Skinner has been named as president of the bank’s South Arkansas Division, which includes the El Dorado and Hope markets with nine branches in seven communities. Skinner served in his previous position for 14 years and has been with BancorpSouth since 1992.

Tom Nelson has been promoted to Conway community bank president.

Nelson led the bank’s entry into the Conway market in 2016, when it opened a loan production office, which was converted into a full-service location last year. He has 30 years of banking experience.

Forrest Spicher, who has 32 years of banking experience, has been promoted to Hot Springs community bank president. Spicher joined the bank in 2010 and most recently served as an executive vice president. He was responsible for leading the bank’s expansion into the Hot Springs market.

“We are always excited to find opportunities to promote from within,” said Northwest Region President Ty Warren.

“These experienced bankers have the proven leadership skills and knowledge of our customer base to help us with our efforts to grow the bank in several key markets across Arkansas.” n n

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BANKER NEWS & MOVES Southern Promotes Two to Outreach Roles

A Northwest Arkansas native, LaRay White graduated from Siloam Springs High School and received her Bachelor of Science degree from the University of Arkansas at Fayetteville.

She is also a graduate of the Mississippi School of Banking.

In 2005, she joined Southern Bancorp as a financial advisor before transitioning to a business development role.

Southern Bancorp recently announced that LaRay White of Blytheville and Brooke Beck of Arkadelphia have each been promoted to the newly created position of Community Relations Leader in their respective markets.

In the newly developed role, each will represent the Community Development Financial Institution (CDFI) in several focus areas, including financial development services, business development, community relations, and public policy within their markets and surrounding communities – all with the goal of creating a community level connection to Southern’s unique work as a mission-driven community development bank.

“We’re thrilled to welcome both LaRay and Brooke into their new roles at Southern Bancorp,” said Darrin Williams, Southern Bancorp, Inc. CEO. “The Community Relations Leader position is our latest initiative aimed at engaging our markets, not only with our financial products and services, but also with our mission and our message.

As a mission-driven financial institution, we not only seek to help individuals, families, and businesses in our communities build wealth through traditional banking services, but also through educational outreach that supports strong financial growth at all ages as well as public policy initiatives that help families living far beyond our market boundaries. Our Community Relations Leaders will play a key role in these efforts.”

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White has long been active in the Blytheville community where she currently serves on the Blytheville Public School Parental Involvement Committee and often teaches financial literacy to students.

She has been named Intermediate School, Middle School and District Volunteer of the Year for Blytheville Schools. White recently completed her last term as a board director for the Greater Blytheville Area Chamber of Commerce. She is also a member of the Rotary Club and was previously named Citizen of the Year by the Lions Club. White and her husband, Dean have two sons, Garrett and Zac. Brooke Beck received her Bachelors of Business Administration

in Management from Henderson State University. She began her career at Southern in 2006 as an Internal Auditor before working with Southern’s non-profit partner, Southern Bancorp Community Partners, as a Community Development Officer. Most February 2019

recently, she has been part of Southern’s mortgage lending team.

Beck is heavily involved in the Clark County community, serving as treasurer for the Downtown Arkadelphia Network Board of Directors and as a member of the Clark County Farmers’ Market Board of Directors. She has previously served as president and fundraising chair for the Arkadelphia Chamber of Commerce Board of Directors and as board director for the Arkadelphia Regional Economic Development Alliance. In both 2016 and 2017, Beck was named Clark County Person of the Year.

She and her husband, Rusty, live in Arkadelphia and have two children, Carlie, 15, and Ramsey, 9. n

Farmers Bank & Trust Adds Two Directors Farmers Bank & Trust Co. President and CEO Randy Scott has announced the addition of local community and business leaders Brad Harrison and John Charles Rose, Jr. to the bank’s Board of Directors, effective immediately.

In making the announcement, bank President Scott commented, “As Mississippi County’s local community bank, and oldest bank, our bank is always looking for opportunities to better serve our customers and our community. A major way we do that is to make sure our bank’s Board of Directors always reflects a wide range of successful experience and age. Both Brad and John are strong

young business leaders with proven business and civic community success, and each one brings a passion for helping our community to our banks board.”

Brad Harrison is President and CEO of Mississippi County Electric Cooperative, where he has served since 2004. “Working for MCEC is a very rewarding experience for me” Brad says. As I work with our staff in many areas, I feel that what we are doing for our cooperative is also focused on doing things we can do to help our community. My wife Jennifer, and our sons Hudson and Maddox, are proud to be a part of this community, and we want to do everything we can to make it even better!”

Prior to being named as MCEC’s President and CEO in 2011, Harrison served as Chief Operating Officer from 2009 to 2010, Vice President of Engineering and Operations in 2008 and 2009, and Systems Engineer from 2004 to 2008. Reflecting on his election to the Farmers Bank Board of Directors, Harrison Commented that “I view the opportunity to serve on Farmers Bank and Trust’s Board of Directors as not just a way to help the bank, but also as another way to further help our community that I love so much.”

John Charles Rose, Jr., a 2003 graduate of Blytheville High School, graduated from the University of Arkansas in

2008, and the University of Arkansas for Medical Sciences, with a degree in Pharmacy, in 2012. Rose worked as a Pharmacist at Owens Drugs from 20122015, prior to founding Rose Pharmacy in 2016.

“John Charles”, bank president Scott commented, “Loves our community, is active in Blytheville Unlimited, and serves on our Blytheville Chamber of Commerce Board. In addition to his personal educational and career and civic accomplishments, John, as a local business owner, has a strong Entrepreneurial spirit. This gives him a special understanding for our community’s local business owners, and for the other businesses who serve our community so well every day.”

Rose commented, saying, “I feel privileged to now be even more able to serve the home town community that my wife Brittany, and our son Jack, love so much.”

“We are very excited”, Bank president Scott concluded, “with the strong, positive feelings for our community that each of these men bring to our bank’s Board of Directors.” n

McFarland Joins Stone Bank as Agri Lender in Mountain View John McFarland of Pleasant Plains has joined Stone Bank in Mountain View as an Agri Loan Officer. He was most recently a commercial

loan officer with Southern Bank in Batesville and has held positions with Farm Credit Midsouth, Farm Credit Western Arkansas and as a County Extension Agent with the University of Arkansas Division of Agriculture Cooperative Extension Service.

He is a graduate of Arkansas State University with a Bachelor of Science in agriculture business and a Master of Science degree in food and life sciences from the University of Arkansas in Fayetteville. n

Crancer Named Retail Banking Manager at Stone Bank, Little Rock Stone Bank has named Hayden Crancer retail banking manager for its Little Rock office. Crancer was formerly associated with Arkansas Federal Credit Union and Simmons Bank. He is a graduate of Arkansas State University. n

Citizens Bank Promotes Stephanie White Citizens Bank has promoted Stephanie White to the position of Vice President, Loan Processing, to oversee all loan processing duties and functions for the bank.

“Stephanie has accumulated a wealth of experience during a successful banking career

that spans nearly 18 years,” said Pam Jones, Executive Vice President, Banking Services and Compliance.

“We look forward to her leadership in this critical role that helps drive much of the progress of the bank.”

In her new position, Ms. White will manage five employees in Arkadelphia and two employees in Batesville, and will oversee the production of loan documents by bank personnel. She will continue to be based in Citizens Bank’s financial center in Arkadelphia.

She joined Citizens Bank in 2015, and most recently served as Assistant Vice President and Loan Operations Manager.

Ms. White is a native of Clark County and currently lives in Gurdon with Jim White, her husband of 19 years. The couple has a son, Austin, and a daughter, Emma Jo. Before beginning her career in the financial industry, Ms. White attended Henderson State University. n

Shane Davis Returns to FNBC – Mountain Home FNBC Regional President & Chief Lending Officer Chad Hudson recently announced Shane Davis has been hired as a Senior Vice President & Business Banking Officer at FNBC – Mountain Home, located at 102 Hwy. 62 East.

In this new position, Davis will assist in growing FNBC and the Mountain Home Market, as well as business February 2019

development in and outside of FNBC’s footprint.

“We are glad to have Shane rejoining our team at FNBC,” said Hudson. “Shane brings a wealth of banking expertise and experience with him that will serve him well as he helps us grow and shape our Business Banking division.

Our existing and future business clients will benefit from the financial, lending and deposit solutions he brings to the table.”

Davis first joined FNBC in early 2016 as part of the bank’s first team acquisition as SVP and Commercial Lender. He returns to FNBC from Batra Hospitality, based in Columbus, Ohio, where he served as Chief Operating Officer since mid-2017.

With over 20 years of banking experience, Davis has worked primarily with commercial and small business clients.

He began his banking career in Mountain Home in 1995.

He was recognized as the Twin Lakes Banker of the Year

by Baxter Bulletin readers in 2015, 2016 and 2017.

“Shane played an important role in our organization as we began to provide a sharper focus on business banking relationships,” said FNBC President & CEO Marty Sellars. “We are excited to welcome him back to our organization and to the banking industry.”

A native of Little Rock, Davis holds a Bachelor of Science in Communication with a minor in Business Administration from the University of Arkansas in Little Rock. He and his wife, Tammy, have three children: Jacob Davis, Landon Crider and Bailey Crider. n n

The Arkansas Banker

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YourBank ARK @YourBankARK

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

arkansasbanker

because #BankersGiveBack!

HometownBank AR

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

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

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Email photos + stories of your bank giving back to be highlighted at the Annual Convention and through ABA Social Media channels to traci.logsdon@arkbankers.org.