The Arkansas Banker January 2016

Continuous Improvement

Gender Parity in Arkansas Banking

The Arkansas

Banker

The Education Issue: On Target for Success Volume XCX, No. 1 | January 2016 January 2016 | The Arkansas Banker

1

ABA Live Events ABA Professional Development

Live Events...

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

FEBRUARY 2016 9

| IRA Advanced Update & Review Workshop

17

| Call Report Preparation: An Update & Review

Crowne Plaza, Little Rock Who Should Attend: Personnel in New Accounts, CDs, Trust, Investments and Savings Departments who are involved in the opening, selling, and administration of IRA accounts

| Basic Personal & Business Tax Return Analysis

19

| Secured Loan Documentation

Crowne Plaza, Little Rock Who Should Attend: Anyone responsible for preparing, auditing, or signing the call report

MARCH 2016

8

18

| TRID Essentials (Integrated Disclosures) Holiday Inn Presidential, Little Rock Who Should Attend: Compliance Officers

16

The Chancellor Hotel, Fayetteville Who Should Attend: Credit Officers, Loan Officers, Credit Analysts, Loan Review Officers

30 | Writing Compliant Real Estate Evaluations Internally

Holiday Inn Presidential, Little Rock Who Should Attend: Credit Officers, Loan Officers, Credit Analysts, Loan Review Officers

| Introduction to Commercial Lending

Holiday Inn Presidential, Little Rock Who Should Attend: Commercial Lenders, Credit Officers, Branch Managers, Credit Analysts, Consumer Lenders, Loan Review Officers, Compliance Officers.

APRIL 2016

4 – 8 | Commercial Lending School

Embassy Suites, Little Rock Who Should Attend: Commercial Lenders, Credit Officers, Branch Managers, Consumer Lenders, Loan Review Officers, Compliance Officers, Bankers with a minimum of one year experience in commercial lending or credit administration in a bank, or five years of banking experience. Bankers who have successfully completed courses in commercial lending, analyzing financial statements, economics, or equivalent coursework, or demonstrated knowledge.

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

29 | Writing Compliant Real Estate Evaluations Internally

8–11 | Trust School

Crowne Plaza, Little Rock Who Should Attend: New and experienced trust department personnel

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

12–13 | Supervisor Boot Camp

Crowne Plaza, Little Rock Who Should Attend: Bank Supervisors, Branch Managers

19

| Credit Conference

Crowne Plaza, Little Rock Who Should Attend: Credit Officers, Executive and Senior Management, Commercial Loan Officers, Loan Support Personnel

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

2

The Arkansas Banker | January 2016

The Arkansas

Banker Volume XCX, No. 1 | January 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

CONTENTS COLUMNS

4

President’s Column

6

Washington Update

Bill Holmes

Rob Nichols

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.

DEPARTMENTS

FEATURES

Continuous Improvement & Your Bank

By Brooks Davis

22 Survey: Arkansas Banks Fall

Short of Gender Parity

By Richard Plotkin

23 125 Years of the ABA:

The Evolution of the ABA Logo

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

10 Graduate Schools of Banking:

Programs & Scholarships

MAGAZINE RATES

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.

27 Index of Advertisements

SUBSCRIPTION

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

25 Banker News & Moves

8

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.

24 Member News

THE EDUCATION ISSUE

14 Professional Development by

the Numbers: 2015 in Review 15 In Their Own Words: Bankers

& Educators Talk About

Professional Development 17 Professional Development Platforms 20 Calendar of Events

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

January 2016 | The Arkansas Banker

3

PRESIDENT’S COLUMN Looking Forward To 2016 The Arkansas Bankers Association is hitting the ground running for the New Year. While we are very disappointed by the failure of Congress to pass and approve meaningful reg relief, we are extremely proud of the role that our bankers played in making sure that the Arkansas Congressional delegation supported reg relief. We are also proud of the support our Congressional delegation gave to our reg relief proposals.

Industry bashers like Bernie Sanders and Senator Elizabeth Warren have succeeded in politicizing regulatory relief for the FDIC banks. Regulatory relief is not, and should not be, a partisan issue. Banks allow all customers— regardless of political party— the opportunity to realize their dreams, be it opening or growing a business, or purchasing a first home.

Now we need to move forward and re-double our efforts. During the last few years, a lot of bankers in Arkansas and elsewhere have worked hard for reg relief. We hope those bankers who sat on the sidelines, and allowed other bankers like you to do all the work, will reassess their support of and involvement in our industry. We need all hands on deck in the future if we are to be successful.

Our failure to achieve reg relief for our industry in 2015 makes one thing clear; the industry as a whole must stand together and get more bankers to participate in industry grassroots efforts to make sure Washington knows and respects us.

We need your voice to be heard.

We need to step back and rethink our industry’s political engagement strategy.

We need far more bank employees and local business customers involved in our grassroots efforts if we are to be successful.

As a member of the ABA, you have helped us walk the halls of Washington many times in the last few years. As an association we are proud of the regulatory relief campaign we have put forth thus far, and will only continue to push harder until we achieve meaningful regulatory reform. As always, thank you for being strong advocates for our industry. We could not do what we do without each of you. As a well-known and successful state association we will continue leading by example.

PRESIDENT & CEO BILL HOLMES

The strength of our association lies in our commitment to a purpose – to build for others and ourselves a prosperous and thriving community and state.

The Arkansas Bankers Association will continue to be strong because we are more than a handful of individuals and banks; we are a collection of leaders striving for a common vision.

Thank you, and, stay engaged.

Milestones in Banking to be Honored at 2016 Convention The ABA is proud of the 19,000+ men and women who serve the Arkansas banking and the connections they forge to make our hometown banks successful. We would like to recognize those individuals who are celebrating their 40-year and 50-year anniversaries of service to our banks with “Milestones in Banking” awards sponsored

by BKD, at a luncheon during the Annual Convention on Thursday, May 12, and with a feature in The Arkansas Banker magazine. This is the second year that the ABA has offered this award.

Nominations are currently being sought for “Milestone Bankers.” All nominees should be actively employed in an Arkansas bank, and are eligible to receive specific milestone awards at 40+ and 50+ years of service, as long as they have not previously been recognized for that milestone. Nomination forms can be accessed online at www.arkbankers.org: 50 Year Banker 40 Year Banker Milestone Bank

4

The Arkansas Banker | January 2016

industry

Alice Ann Simkins celebrat ed 50+ years at the 2015 Milestones in Banking Aw ards

ABA EXECUTIVE COMMITTEE Parkway Bank, Rogers

ROBERT Y. TAYLOR | CHAIRMAN

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

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

JUDY LAWTON | TREASURER Heartland Bank, Little Rock

CHUCK MORGAN | PAST CHAIRMAN Relyance Bank, Pine Bluff

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

ABA BOARD OF DIRECTORS

ABA Rings in New Year with a New Logo The ABA Board of Directors approved the transition to a new logo at its quarterly meeting, held December 2 in Little Rock. The new logo is literally centered around ABA’s key focus: bankers. The artwork also features the Arkansas state outline in the association’s signature red.

“Our Association has grown and evolved, and we felt it was time for an updated look. We have refreshed our logo to reflect who we are today, and symbolize our dynamic future,” explained ABA President & CEO Bill Holmes. “This wasn’t a decision we made lightly. We are proud of our rich 125 year history. That’s why our new logo retains our core elements and now highlights our primary mission, bankers.”

“We all take pride in our work and the service ABA provides, and I believe this new logo exemplifies our collective energy and inspiration, as we carry out our corporate values every day,” Holmes noted.

This new logo was selected from a number of options created by ABA staff with the assistance of Steven Owen of Eagle Bank and Trust.

Implementation of the new logo began on January 1, 2016; the previous logo had been in place since May 2002.

Read more about the evolution of the ABA logo on Page 23.

PHIL BALDWIN | GROUP 2 Citizens Bank, Batesville

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

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

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

TROY DUKE | GROUP 5 Gateway Bank, Rison

WILSON MOORE | GROUP 2 Bank of America, Little Rock

Regions Bank, Hot Springs

ELIZABETH FARRIS | GROUP 4

JERRY MORGAN | GROUP 1 Focus Bank, Jonesboro

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

Eagle Bank, Little Rock

SCOTT HANCOCK | GROUP 3 Centennial Bank, Fayetteville

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

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

MIKE SMITH | GROUP 5 McGehee Bank, McGehee

JON HARRELL | GROUP 3

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

DARWIN HENDRIX | GROUP 4

STANHOPE WILKINSON | GROUP 3 Farmers Bank & Trust, Greenwood

CATHERINE OWEN | GROUP 2

First Bank, Rogers

Bank of Delight, Delight

CHARLES HORTON | GROUP 1 Fidelity Bank, West Memphis

ABA STAFF BILL HOLMES

KAMI TAYLOR COLEMAN

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

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

CARLA BRINKLEY

TRACI LOGSDON

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

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

AVA FRANKS

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

STUART THALHEIMER

EXECUTIVE ASSISTANT 501.978.3605 | stuart.thalheimer@arkbankers.org

JESSICA SAHENE

MARKETING COORDINATOR 501.978.3609 | jessica.sahene@arkbankers.org

BRENDA SCARBROUGH

ADMINISTRATIVE ASSISTANT 501.978.3600 | brenda.scarbrough@arkbankers.org January 2016 | The Arkansas Banker

5

WASHINGTON UPDATE Time for Political Muscle-Building You know that when Congress turns our industry into a piggy bank to pay another industry’s costs and then ignores bankers’ pleas for relief from stifling, ill-fitting regulations, something is very wrong — not just with our political system, but also with our industry’s political firepower.

I’m referring, of course, to the twin insults Congress lodged in its waning days of its 2015 session. First, to cover the costs of the five-year highway spending bill, lawmakers chose not to raise the gas tax or find some other related source of funds. Instead it opted to dramatically decrease the dividend the Fed pays member banks with more than $10 billion in assets while simultaneously raiding the Fed’s capital surplus account.

Perhaps to soften the blow, they also included a handful of regulatory relief items that bankers, ABA and the state associations have been advocating, in some cases for years. But the presence of modest reg relief in the bill does not make up for the dangerous precedent it set by using banks to pay for highways and bridges.

After all, the relief provisions, such as eliminating annual privacy notices for banks that don’t change their policies, had strong bipartisan support. They could have — and should have — passed on their own, not as a quid pro quo.

But Congress is so plagued by dysfunction that it can pass little but spending bills. Which leads me to insult number two. After months — years, even — of bankers explaining how outdated and poorly tailored rules were choking credit and making things harder for bank customers, leaders in Congress had a chance to do something about it.

They could have attached meaningful regulatory relief provisions — ones that had already been vetted by both the Senate and House banking committees — to its omnibus spending bill. But they chose not to.

While the reasons are many, including the need to woo votes from staunch defenders of Dodd-Frank, one should be enough to startle all of us into a new way of thinking about political engagement: Congress saw no downside in kicking banks around.

businesses grow, consumers prosper and the economy expand. We employ nearly two million men and women who in turn lend their time, talent and leadership to countless civic and charitable causes. That means policymakers should do more than pause when they hear how laws and rules are harming our ability to do what we do. They should take action.

To get Congress to “yes,” in the future, we have no choice but to build our political muscularity.

That means re-evaluating our industry’s political engagement strategy and architecture. It means assessing the effectiveness of our tools, adding resources where needed and engaging far more bank employees in our grassroots efforts. And it means being much more deliberate in deciding which lawmakers to support with our dollars and manpower.

ROB NICHOLS

President & CEO American Bankers Association

In short, it means showing Congress that America’s hometown bankers mean business.

Make no mistake, ABA pulled out all the stops with our Pass Reg Relief Now campaign. Hundreds of bankers visited with lawmakers last fall when they were in town for state association Washington Visits and for various ABA council meetings. We ran ads inside the Beltway, in key states and on new media outlets like Pandora and SnapChat.

But unfortunately, the unprecedented numbers of ads, visits, postcards, op-eds, emails and petitions weren’t enough.

That’s why we all must commit to “building muscle” in 2016. We need to engage more banks and employees in everything from fundraising to petition-signing, from hosting bank visits to introducing candidates to local business leaders.

Let’s make the new year — an election year — a time to reset expectations, both our expectations of lawmakers and their expectations of us. We simply cannot endure another Congress that refuses to do what it takes to provide relief to America’s hometown banks, their customers and their communities.

That has to change.

Banking is a hugely consequential industry.

We fuel the economy by making loans that help

© 2016 2015 American Bankers Association. All rights reserved. Reprinted with permission.

6

The Arkansas Banker | January 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!

Military Lending Act 2/2/2016 1:30 p.m. – 3:30 p.m.

Excel Explained: Internal Control 2/3/2016 10:00 a.m. – 12:00 p.m.

UCC For Lenders 2/3/2016 1:30 p.m. – 3:30 p.m.

FFIEC Cybersecurity Assessment 2/3/2016 2:00 p.m. – 3:30 p.m.

Investigation Internal Fraud 2/4/2016 1:30 pm. – 3:30 p.m.

BSA Series: Customer Due Diligence Preparing for the Change 2/4/2016 10:00 a.m. – 12:00 p.m.

Banking the Medical, Legal, & Accounting Professional: Part I 2/8/2016 1:30 p.m. – 3:30 p.m.

Recognizing Elder Fraud for Staff 2/9/2016 1:30 p.m. – 3:30 p.m.

Right of Setoff 2/10/2016 10:00 a.m. – 12:00 p.m.

Legal Liabilities when Check Fraud Occurs 2/17/2016 10:00 a.m. – 12:00 p.m.

Names & TINs: 15 Reasons They May Not Match 2/22/2016 1:30 p.m. – 3:30 p.m.

Extra, Extra: Read All About Security Issues & IT Solutions 2/17/2016 2:00 p.m. – 3:30 p.m.

The Banker of the Future: Becoming A Universal Banker 2/23/2016 10:00 a.m. – 12:00 p.m.

Problem Loan Identification & Prevention 2/18/2016 8:30 a.m. – 9:30 a.m.

Flood Insurance: Compliance Issues 2/23/2016 1:30 p.m. – 3:30 p.m.

Onboarding Your New Hire 2/18/2016 10:00 a.m. – 12:00 p.m.

15 Steps to Profitable/Prudent Construction Lending 2/18/2016 2:00 p.m. – 3:00 p.m.

Getting Best Value / Better Results from Business Development Investments 2/18/2016 2:00 p.m. – 3:00 p.m.

Financial Toolkit Part 1: Personal Financial Statement Analysis 2/19/2016 1:30 p.m. – 3:30 p.m.

Banking the Medical, Legal, & Accounting Professional Part II 2/22/2016 1:30 p.m. – 3:30 p.m.

Beware! Signature Card Danger Zones 2/24/2016 10:00 a.m. – 12:00 p.m.

Opening Accounts for Nonresident Aliens 2/25/2016 10:00 a.m. – 12:00 p.m.

For Sales Managers: How to Hire Better Bankers Who Can Sell 2/29/2016 12:00 p.m. – 1:00 p.m.

Financial Analysis Toolkit Part II: Intro to Personal & Business Tax Returns 2/29/2016 1:30 p.m. – 3:30 p.m.

BSA Series: BSA Emerging Issues for 2016 3/3/2016 10:00 a.m. – 12:00 p.m.

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

January 2016 | The Arkansas Banker

7

Continuous Improvement

& Your Bank ABOUT THE AUTHOR

A 20-plus year veteran of the banking industry as well as a lifelong advocate of Continuous Improvement, Brooks Davis brings a service-based mission to help companies take the next step in their organizational journey.

Brooks served for 13 years as President/CEO of Simmons First Bank of Searcy, Arkansas, where he oversaw process improvements that increased the bank’s efficiency ratios by over 5%, or $200,000 annually through the utilization of Lean Six Sigma principles.

Brooks has taught Lean Six Sigma principles as an adjunct professor at Harding University and participated in quality management programs in three different banking groups, including Arvest, First Commercial, and Simmons banks.

Principal of In Step Consulting (www.InStep.Us), Brooks recently received his Lean Six Sigma Black Belt Certification from the American Society for Quality.

8

If you are like me, over the years you have become somewhat of an expert in evaluating the quality of service at local restaurants. When my family spends more than 10 minutes in a drive through line, when the waiter disappears from view when our cups hit empty, or when the order comes back incorrect, our critical thinking skills kick in. Within a few minutes, in addition to trying to remember that these annoyances are first world problems, we are formulating an improvement plan for that establishment.

Service quality in banking is also easily evaluated, but very difficult to nail down.

Sometimes we say the right things, but our body language or abruptness communicates the wrong message. Internal customer service quality is even harder to design into our operating systems.

Forward-thinking companies across the service sector are utilizing proven Lean and Six Sigma methods and tools to standardize and improve their key processes. These tools (typically identified with manufacturing) fall into a movement called Continuous Improvement, a system where the people involved are valued much more highly than the tools.

Continuous Improvement includes listening better to external and internal customers and aligning your operating plan with your strategic plan. When members of your existing team are empowered to involve themselves in breakthrough solutions for the business, everyone wins.

The Arkansas Banker | January 2016

Every organization has fires crop up which have the potential to severely damage the structure of the organization. As bankers, our fires may involve struggling with our efficiency ratio being above industry benchmarks, a sales system that is broken, or customer service that is spotty at best.

Continuous Improvement in banking involves the following key components: Clarity. To pinpoint our mission, we must ask ourselves: What are the vital few objectives in 2016 that will transform the business? What steps must we take to become world class in our product and service offerings?

Engagement. Working together, with a solution that is formulated and generated within our existing team, a sense of purpose and belonging develops. When synergy happens, it is a beautiful thing.

Alignment. We must be clear about where we are going and who we need on board.1 The future of banking depends on our diligent pursuit of better products and services to ultimately yield a happier customer. Continuous Improvement is the path we can all take to accomplish these ideals.

1. Clarity, Engagement, and Alignment are highlighted in the presentation by Tom Wujec, “How to Make Toast”. www.drawtoast.com

The Education Issue: On Target for Success

GRADUATE SCHOOLS OF BANKING

PROFESSIONAL IN THEIR DEVELOPMENT BY OWN WORDS THE NUMBERS

Get details on GSB programs & scholarships from across the country.

A review of 2015’s ABA Professional Development activities.

Page 10

Page 14

What bankers & educators are saying about ABA Professional Development.

Page 15

PROFESSIONAL DEVELOPMENT PLATFORMS

2016 EVENTS

Learn about your options for ongoing training provided through the ABA

See ABA’s schools and conferences slated for 2016.

Page 17

Page 20 January 2016 | The Arkansas Banker

9

Graduate Schools of Banking The ABA, and other state bankers associations, have teamed up with universities across the country to sponsor Graduate School of Banking programs. These programs provide career bankers with the skills needed to succeed in the ever-changing world of banking. The following regional and national banking schools provide an opportunity for advanced study and research in bank management, economics, and monetary issues.

GRADUATE SCHOOL OF BANKING AT COLORADO Location: Boulder, Colorado Website: www.gsbcolorado.org Contact: Josie Bunch, Director of Marketing josie@gsbcolorado.org 800.272.5138 Today’s banking environment requires community banks to prepare their future leaders now in order to move successfully into the future.

The Graduate School of Banking at Colorado is America’s Premier Community Banking School, which offers educational programs aimed at preparing the next generation of community bank leaders for success. Since 1950, banks have trusted in GSBC’s 25-month Annual School Session to develop their leaders. GSBC is pleased to build upon this legacy by offering the one-of-a-kind Executive Development Institute, an advanced 19-month program which combines hands-on leadership coaching and mentoring with sophisticated bank management strategies, to prepare internal candidates for future roles in executive management. For more information, visit www.GSBColorado.org.

Graduate School of Banking at Colorado 10

The Arkansas Banker | January 2016

GRADUATE SCHOOL OF BANKING AT LSU Location: Baton Rouge, Louisiana Website: www.gsblsu.org Contact: Don L. Woodland, Executive Vice President donw@gsblsu.org 255.766.8595 Completion of the GSB program at LSU has become a standard prerequisite to professional advancement in many banks. Bank officers at multi-billion dollar institutions, as well as small community bankers, find that the curriculum addresses their educational needs.

The course of study spans 25 months, with three two-week resident sessions. During these resident sessions, bankers/students receive more than 200 hours of classroom instruction. Organized evening study, written examinations and bank study projects between resident sessions are an integral part of the school’s comprehensive program.

The 2016 program dates are May 22 – June 3, 2016.

GRADUATE SCHOOL OF BANKING AT THE UNIVERSITY OF WISCONSIN Location: Madison, Wisconsin Website: www.gsb.org Contact: Kathleen Kienitz, AVP, Marketing & Banker Relations kkienitz@gsb.org 608.243.1945 Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison has been widely recognized as the most rigorous and progressive banking school in the country. Using feedback from its alumni, Banker Advisory Board and sponsoring state bankers associations, GSB continuously updates program offerings to meet current professional development needs in the financial services industry. Those who complete the 25-month Graduate School of Banking will receive a diploma in bank management as well as a Certificate of Executive Leadership from the Wisconsin School of Banking.

Graduate School of Banking at Wisconsin

Additionally, GSB offers respected specialty schools—the Human Resource Management School, Bank Technology Management School, Bank Technology Security School, Financial Managers School and the GSB Online Seminar Series. More than 20,000 alumni have benefited personally and professionally from attending one of GSB’s programs.

January 2016 | The Arkansas Banker

11

SOUTHWEST GRADUATE SCHOOL OF BANKING Location: Dallas, Texas Website: www.swgsb.org Contact: Scott MacDonald, Ph.D., President & CEO scott@swgsb.org 214.468.2991 The SW Graduate School of Banking (SWGSB) at the renowned Cox School of Business at SMU is the financial services industry’s best source for education, training and information – designed specifically for bank officers tapped for leadership roles. It is considered by many to be the nation’s top educational source for commercial and consumer lenders, loan and operations officers, bank regulators, as well as marketing and management professionals. SWGSB is an elite leadership development program: rigorous, challenging and life changing.

Southwest Graduate School of Banking

STONIER GRADUATE SCHOOL OF BANKING Location: Philadelphia, Pennsylvania Website: www.abastonier.org Contact: Perette Bonner,

Stonier Program Director pboner@aba.com 800.bankers Stonier is the nation’s original graduate banking school — the school was founded in 1935 by Dr. Harold Stonier, a renowned educator and American Bankers Association executive, who was widely respected for his innovation and leadership. Stonier attracts students from across the nation and from over 20 international countries. In partnership with the Wharton School, Stonier has an even stronger focus on preparing our industry’s future leaders, and students graduate with both a Stonier Diploma and Wharton Leadership Certificate. In 2015, Stonier is celebrating 80 years of excellence in banking education.

12

The Arkansas Banker | January 2016

Get a Head Start with a GSB Scholarship Human Resource Management School Scholarship

GSBC Future Leaders Scholarship

Graduate School of Banking at Wisconsin - Madison, Wisconsin 2016 Session to be held April 10-15 Deadline: January 29, 2016 Amount: $925

Graduate School of Banking at Colorado - Boulder, CO 2016 Session to be held July 17-29 Deadline: March 1, 2016 Amount: $1,325 per year, for three consecutive years Eligibility: Must be a first year student

American Bankers Association & Arkansas Bankers Association Scholarship

Graduate School of Banking at Louisiana State University Scholarship

Stonier Graduate School of Banking - Philadelphia, Pennsylvania 2016 Session to be held June 2-9 Deadline: February 29, 2016 Amount: $1,265 (member) per year, for three years

or $1,598 (non-member) per year, for three years Eligibility: Must be a first year student

SWGSB Millennium Scholarship

SW Graduate School of Banking Foundation Southern Methodist University - Dallas, TX 2016 Session to be held May 30 - June 10 Deadline: February 29, 2016 Amount: $1,500 per year, for up to three years Eligibility: Must be a first year student

Graduate School of Banking at LSU - Baton Rouge, LA 2016 Session to be held May 22 - June 3 Deadline: April 1, 2016 Amount: $3,995, first year only Eligibility: Must be a first year student

Prochnow Educational Foundation & Arkansas Bankers Association Scholarship

Graduate School of Banking at Wisconsin - Madison, Wisconsin 2016 Session to be held July 31 - August 12 Deadline: April 15, 2016 Amount: $1,300 per year for three years Tw Eligibility: Must be a first year student Ava o

ilable!

a great experience Attending the Graduate School of Banking at Colorado was obtain a graduate and I highly recommend that program for everyone seeking to issues from banking degree. GSBC allowed me to analyze operations and management’s viewpoint.

In working with Bank Simulation, I was able to see firsthand how decisions impacted the bank as a whole.

I now have a better appreciation of the decisions that senior management must make on a daily, weekly, and monthly basis, specifically as the decisions relate to interest margin, efficiency ratio, earnings, staffing, etc. The program is very well organized, with a variety of learning opportunities, as well as time for leisure activities with fellow students in the beautiful Boulder, Colorado area.

Lance Nutt Certified Senior Examiner Arkansas State Bank Department, Little Rock

2015 Arkansas Graduate s of GSB-Colorado

January 2016 | The Arkansas Banker

13

2015 Professional Development by the Numbers

492

29

Webinars

Seminars

Most-attended Seminars:

Cybersecurity Road Show with 58 in attendance

Bank Directors Workshop with 47 in attendance

8

Conferences

78

Speakers

BSA/AML Compliance Workshop with 40 in attendance

Most-attended Conferences:

Leadership Conference

155 Graduates from 5 ABA Schools

with 96 in attendance

Compliance Conference with 121 in attendance

Trust Conference with 69 in attendance

Our bank finds the training that our people receive when attending an Arkansas Bankers Association seminar or education al event to be of tremendous valu e in staff development and our bank’s long term success . The type of education they receive from these events is viewed by our ownership and ma nagement as an investment in the futu re well-being of our institution. Subsequently, the results have been a healthier org anization and a more productive and capable banker.

Quite frankly, the return on said investment has been one that has never failed to pay dividends and provide enhanced franchise value to our company.

In my opinion, our utilization of ABA educational opp ortunities has afforded us continu al growth, both corporately and professionally wit h our great team of professional bankers.

I highly recommend taking full adv antage of the ABA’s tremendous educational tools right here at home.

Charlie Cross President/CEO Cornerstone Bank, Eureka Spring s 14

The Arkansas Banker | January 2016

In Their Own Words: Bankers Talk Professional Development

Eagle Bank enjoys a great relationship with Arkansas

Bankers Association and actively participates in many

of the ABA events and seminars. They strive to offer many different types of educational classes to choose from, and in this ever changing regulatory environment, it is of utmost importance that we receive expert training. I would highly recommend Arkansas Bankers Association for your banking education needs; they are first and foremost for us!

Cathey Cox EVP/Chief Lending Officer, Northern Region Eagle Bank & Trust, Heber Springs

Arkansas Bankers Association hosts great events that focus

on all the departments at our bank. By having live

seminars in both Little Rock and NWA, we are able to keep all our branches up to date and educated; and if a department needs additional training, the online courses are exceptional! Personally, I have made several friends and have many contacts I have met, both presenters and peers, that I utilize throughout the year. With most attendees and presenters being local, you get a small town feel at the seminars with BIG benefits. We have used ABA for many years and will continue to do so.

Nikki Skinner, SHRM-CP, PHR AVP/Human Resources Farmers & Merchants Bank, Stuttgart

I have attended every Leadership Conference since 2008

due to the topics being discussed from experts all across

the country. I share this information with management and other associates to help us perform better. It also provides young bankers an opportunity to network with other bankers from across the state and hear how they are dealing with our ever-changing profession.

2016

Human Resource Management School Linking Human Resources to the Bottom Line

April 10-15, 2016 Graduate School of Banking at the University of Wisconsin – Madison | Madison, WI The human resource function has a direct impact on a financial institution’s productivity and bottom-line results. That’s why HR professionals in the financial services industry require a working knowledge of the business of banking as well as strong talent management and leadership skills.

This one-week school is designed specifically for financial services HR professionals to help tie together these two important areas. Here, you will expand your knowledge of banking, human resource management and employee performance. Plus, you will establish a network of colleagues with whom to interact and exchange ideas for years to come.

Other GSB Programs: Graduate School of Banking Bank Technology Management School Bank Technology Security School Financial Managers School Advanced Management Forum Bank Management Forums Online Seminar Series

Scholarships available!

See gsb.org for details

Daniel Robinson Community President of Northeast Arkansas Simmons Bank, Jonesboro Educating Professionals, Creating Leaders 800-755-6440 |

gsb.org

January 2016 | The Arkansas Banker

15

In Their Own Words: Educators Endorse Professional Development

Smarter, faster, better. These three words will drive the accomplishments of bankers in

the next five years as they face increasing competitive and regulatory challenges. Today’s

banking leaders must recognize that continuing education and competency not only matter but will make the difference between enterprise success and mere survival in the demanding years ahead.

John Cochran Cochran Associates, LLC Cochran at the 2015 l Commercial Lending Schoo

A bank’s rationale for providing the best possible training to its personnel is the simple

acknowledgment that things change. They hire new employees. They offer new products.

Customer needs and perceptions change. Even the law changes. The bedrock for any banking career is what is learned on the job, but it is simply not enough to assure that today’s employee is actually proficient in adapting to changed circumstances.

Ken Golliher Pegasus Educational Services, LLC

Education and Training both provide benefits to the individual and organization that make

the cost and time a worthwhile investment. Banking specific Education coupled with bank

specific Training has proven to advance employee performance, increase consistency and provide greater employee satisfaction while simultaneously strengthening its own bottom line.

Ron Rushing, President Rushing Consulting Group, LLC Rushing at the 2015 Consumer Lending Schoo l

Education is the cornerstone of professional development for any banker. Through

seminars, webinars, and conferences, the banker is able to brush-up on their existing

“tools,” learn new technical and management skills, and enhance their careers by interacting with their colleagues. Whether the banker is a commercial lender, branch manager, business development officer or part of senior management, education should be emphasized and on-going.

David L. Osburn, MBA, CCRA Osburn & Associates, LLC

16

The Arkansas Banker | January 2016

Professional Development Platforms:

Learning “Live” ...What to Expect at an ABA Live Event

ABA Live Events offer face-to-face interaction with an expert instructor, giving attendees the chance to ask questions and share ideas. ABA offers a variety of educational programs throughout the year, including seminars, schools, and conferences. We are committed to offering relevant and timely topics so that our members can have the most current information to implement in their institutions.

When attending an ABA Live Event, you can expect: Relaxed environment. Don’t be intimidated! ABA Live Events are structured to make sure that you feel comfortable asking questions, meeting peers, and gaining professional skills.

Group interaction. While class sizes vary, most Live Events give opportunities to share among smaller groups.

Take-home materials. Whether online or hard copy, we will provide you with materials to help implement what you’ve learned at your home institution.

2015 Marketing Conference

This was my first Arkansas Bankers Association event. I was more

than impressed; the organization and professionalism

of the Association employees; the quality and expertise of the speakers; the same is said for the vendors.

2015 Train the Trainer

Tracey Dennis, 2015 Trust Conference Attendee AVP / Trust Officer Relyance Bank, Pine Bluff

BE WATCHING FOR THESE NEW LIVE EVENTS! FDIC Directors College Spring 2016 TRID Essentials March 8, 2016 Credit Conference April 19, 2016 Bank Lending for the Retail Manager May 20, 2016 Banking the Legal, Medical and Accounting Professional August 25, 2016 Regulatory Hot Buttons Conference September 28, 2016 How to Craft an Effective Commercial Loan Write-Up /Loan Committee Presentation Skill Building Techniques October 20, 2016 January 2016 | The Arkansas Banker

17

Professional Development Platforms:

ABA Webinars

We live in a digital age, so why not engage in online learning opportunities? Webinars are a cost-effective professional development option that allows you to receive top-notch training without travel time and expense. With nearly 500 webinars to choose from throughout the year, you are sure to find a topic to meet your training needs. The ABA works with third-party webinar providers to ensure that the most timely topics are being addressed by experts from across the country.

This delivery format combines two methods of communication: your phone and your computer. You may have an unlimited amount of listeners on one connection via speakerphone. The online presentation can be viewed on your office or home computer, or on your computer connected to an A/V projector in a conference room setting for multiple participants. Webinars are interactive—not just recorded instruction videos—so you can ask the educator questions to customize the experience.

When attending an ABA Webinar, you can expect: Presentation materials to help you follow along and implement ideas in your bank.

A recording of the webinar for future reference.

A lot of great information...so be ready to take notes!

View Page 7 for a list of upcoming ABA Webinars!

New Webinars to our calendaare added check www.ark r weekly... to see updatebankers.org d listings!

First. Best. Next.

Experience the Extraordinary As the nation’s original graduate banking school, Stonier has been preparing today’s banking leaders for tomorrow’s opportunities for more than 80 years. With a prestigious faculty and its partnership with the Wharton School, Stonier lives up to its reputation as an unparalleled executive education program.

Come explore Stonier and prepare to experience the extraordinary.

ABA Stonier Graduate School of Banking University of Pennsylvania | June 2-9, 2016 Apply today: abastonier.com 1-800-BANKERS

18

The Arkansas Banker | January 2016

Professional Development Platforms:

AmBA Training

AmBA Training is a comprehensive source for training and education available through the American Bankers Association (AmBA), previously through the American Institute of Banking (AIB). All AmBA courses, certificates, diplomas and more are brought to you through the Arkansas Bankers Association, your Local AmBA Training Provider.

Many courses meet the requirements of the Institute of Certified Bankers (ICB) for exams or continuing education credits.

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

For more information regarding AmBA Training programs, please contact Kami Taylor Coleman at kami.coleman@arkbankers.org.

AmBA TRAINING OPTIONS Facilitated Online Training Courses These courses are available in a virtual classroom environment, complete with fellow students, instructor guidance and feedback.

Self-Paced Online Training Courses These courses offer the greatest flexibility in skillbuilding and practical application as they are independent study and include real-life practice scenarios.

Diplomas & Certificates For more than 100 years, bankers have taken advantage of AmBA diploma and certificate programs. The programs are continually reevaluated and refined to reflect the current needs of bankers in their jobs today and changes in the industry.

Textbooks & Reference Materials AmBA has developed textbooks, workbooks & reference materials to support the AmBA training curriculum.

These tools for self study and in-bank training support the curriculum and cover a variety of subjects in banking and financial services.

UPCOMING AmBA TRAINING OPPORTUNITIES

Course

Course

Length

Start Date

Analyzing Bank Performance 7 weeks 2/01/2016 6/20/2016

IRA Online Institute

12 weeks

2/22/2016

Analyzing Financial Statements 16 weeks 2/16/2016 4/4/2016

Law & Banking: Applications

16 weeks

4/25/2016

Law & Banking: Principles 16 weeks 2/01/2016 5/09/2016

Basic Administrative Duties of a Trustee

Length

5 weeks

Start Date

4/18/2016

Commercial Lending 12 weeks 2/8/2016 5/16/2016 Consumer Lending 16 weeks 2/22/2016 4/11/2016 CRCM Online Review Course

10 weeks

3/14/2016

CTFA Online Review Course

12 weeks

2/8/2016

Economics for Bankers 16 weeks 3/14/2016 5/9/2016 General Accounting 16 weeks 2/16/2016 4/11/2016 Introduction to Agricultural Lending

8 weeks

2/29/2016

Introduction to Mortgage Lending

16 weeks

2/29/2016

Introduction to Trust Products & Services 5 weeks

2/29/2016

Managing, Funding, Liquidity and Capital 6 weeks

2/01/2016

Managing Interest Rate Risk

8 weeks

04/04/2016

Managing the Bank’s Investment Portfolio

5 weeks

03/28/2016

Marketing Financial Services 16 weeks 2/08/2016 4/18/2016 Money and Banking 16 weeks 2/8/2016 4/25/2016 Principles of Banking (Accelerated)

10 weeks

2/08/2016

Principles of Banking 16 weeks 2/1/2016 2/29/2016 3/14/2016 3/28/2016 Supervisor Certificate 16 weeks 2/08/2016 4/25/2016 7/18/2016 January 2016 | The Arkansas Banker

19

2016 Conferences & Schools March 2016

CONVENTION & TRADE SHOW

May 11–13, 2016 | Little Rock

SECURITY WORKSHOP

TRUST SCHOOL

March 8–11, 2016 | Little Rock

The ABA Trust School is recommended for all trust department personnel seeking to expand their knowledge. This program will provide a solid foundation of skills and topics.

April 2016

April 28–29, 2016 | Little Rock

Bank security officers are challenged each day to be aware of the perils affecting their banks, while also modifying the policies, procedures and practices to prevent losses. The Security Workshop provides topics to address the security issues and concerns you face, the environment in which you operate, and the regulatory world in which we all live.

The ABA’s annual Convention provides bankers from across the state with the opportunity to visit with peers, forge new connections, and open a dialogue on the current issues of banking. The event also features a top-notch Trade Show with vendors from across the country.

June 2016

May 2016

LEADERSHIP CONFERENCE

June 16–17, 2016 | Fayetteville

COMMERCIAL LENDING SCHOOL

April 4–8, 2016 | Little Rock

The ABA Commercial Lending School is a comprehensive learning opportunity for both novice and experienced lenders.

COMPLIANCE SCHOOL

May 9–12, 2016 | Little Rock

Compliance is one of the most crucial and consuming issues in the financial industry today.

The Compliance School will provide the latest knowledge and preparation needed to handle compliance issues. Participants will have the opportunity to interact with nationally-known compliance experts, as well as their peers.

The Leadership Conference provides bankers with a chance to further their leadership skills, listen to motivating speakers, and network with colleagues from across the state. The ABA Emerging Leaders Council assists with the planning of this event.

August 2016

CREDIT CONFERENCE

April 19, 2016 | Little Rock

In today’s environment, it is critical for bankers to be able to recognize opportunities among both new and existing customers. This conference will help community bankers regain the competitive advantage and begin to thrive.

20

The Arkansas Banker | January 2016

BANK MANAGEMENT SEMINAR

August 3–5, 2016 | Destin, Florida

With a line-up of timely banking topics, the Bank Management Seminar provides upper-level banking personnel the opportunity to solidify strategies for building a strong future for their respective banks while connecting with peers.

November 2016

Events to Watch For...

CONSUMER LENDING SCHOOL

August 2016 | Little Rock

The purpose of Consumer Lending School is to provide bankers interested in the field of consumer lending with the fundamental information needed to provide effective service to consumers and perform their job responsibilities professionally.

October 2016

AGRI LENDING CONFERENCE

October 12-13, 2016 | Little Rock

Agriculture plays a large role in the Arkansas economy, and it is undeniable that the ag industry comes with a unique set of challenges. The Agri Lending Conference provides high-quality, timely, and practical financial tools and economic information to both lenders and producers.

IRA SCHOOL

October 25–26, 2016 | Little Rock

Whether you’re looking to gain basic knowledge of IRAs, raise your comfort level, or sharpen your skills with the most up-to-date rules and regulations, the IRA School is for you.

TRUST CONFERENCE

BASIC LENDING SCHOOL

November 2-3, 2015 | Hot Springs

TBD 2016 | Little Rock

TECHNOLOGY CONFERENCE

Fall 2016 | Little Rock

The role of a hometown bank’s trust department is a unique one — from assisting with estate and retirement planning to staying current on very specific legal and ethical responsibilities. The Trust Conference brings together professionals from across the state to discuss the tools and strategies needed to best serve your customers.

November 2016 | Little Rock

What technologies need to be implemented to help your bank compete in the digital age?

The Technology Conference is structured to give Arkansas bankers an understanding of the products available today, and how to use them to both benefit customers and safeguard data.

Basic Lending School is designed to provide a solid foundation and overview of lending skills and topics. This five-day event provides classroom instruction, as well as the opportunity for students to put their knowledge to work with hands-on case studies.

WOMEN IN BANKING CONFERENCE

The Women in Banking Conference is designed to empower and inspire women at all levels of the Arkansas banking industry, giving them the opportunity to network, compare notes with those who have similar challenges and successes, and learn about management, leadership, industry issues and personal development.

MARKETING CONFERENCE

TBD 2016 | Little Rock

Get your gears turning at this conference centered on your bank’s marketing strategies. Featuring speakers on a range of topics, this event will help bank marketers stay ahead of current trends while connecting with other professionals in the field.

January 2016 | The Arkansas Banker

21

INDUSTRY NEWS Survey: Arkansas Banks Fall Short of Gender Parity

By Richard S. Plotkin Editor, The Banker’s Advocate Arkansas State Bank Department

Three of every four employees at commercial banks with main offices in Arkansas are women, while one out of every eight directors of these banks is female, according to a survey conducted by the Bank Department. Less than half of all officer positions at the vice president level or above in these financial institutions are occupied by women, the survey also found.

The findings of the survey were released in Bank Commissioner Candace A. Franks’ opening remarks at the 2015 Women in Banking Conference, presented by the Arkansas Bankers Association on November 17, 2015.

“I believe the executive and senior officers attending this conference here today are the key to increasing the number of female employees in your banks,” Franks said. “You can do this by creating programs targeted toward the professional development and advancement of new and current female employees.”

The survey is dated October 12, 2015, and was mailed to the 105 commercial banks whose main offices are located in Arkansas.

The survey consists of six questions asked to determine the percentage of: All employees in these banks that are women.

Officer positions at the vice president level or above that are occupied by women.

Bank directors of these institutions who are women.

A total of 88 banks responded to the survey, but two of the responses were omitted from tabulation due to inconsistent or incomplete information submitted. The resulting total of 86 completed surveys represents a response rate of 81.90 percent.

The survey found that: 6,426 of the respondents’ 8,456 employees, or 75.99 percent, are women.

852 of the respondents’ 1,925 positions at the vice president level or above, or 44.26 percent, are held by women.

22

Commissioner Candace Franks speaks at the 2015 ABA Women in Banking Conference.

91 of the respondents’ 725 directors, or 12.55 percent, are women.

“Women have made huge strides in earning executive- and senior-level positions in an industry that in the not-too-distant past was considered a man’s domain. Banking was one of many professions that when the word was mentioned – ‘banker’ – one automatically pictured a man,” Franks told conference attendees. “But women still have a long way to go to achieve professional parity in banking.”

Nationally, according to an Equal Employment Opportunity Commission report, for private employers with 100 or more workers, women represented 57.59 percent of all employees in commercial banking in 2013. In contrast, women occupied only 30.89 percent of executiveand senior-level positions at these banks, the Commission found.

During her remarks, Franks cited two studies about the degree and estimated cost of gender inequality in the corporate world.

According to one study, conducted by McKinsey & Company and LeanIn.org, women are moving ahead so slowly in corporate America, it will take more than a century for them to reach parity with men in the very top positions.

Actually, the authors calculated it would take 25 years for women to reach gender parity at the senior-VP level and more than 100 years to achieve gender equality

The Arkansas Banker | January 2016

in the corporate suite, based on the rate of progress in the past three years.

This trend is costing companies hundreds of billions of dollars, according to another study.

This second study, conducted by Grant Thornton, compared the return on assets for publicly traded companies in three countries with and without women on their executive boards.

Companies with at least one woman on their board outperformed companies with all-male teams by: 1.9 percent in the United States 0.85 percent in India 0.53 percent in the United Kingdom The cost of lost return on assets to the nondiverse companies totaled $655 billion, according to the study.

“If you do not have a management training program, establish one for all interested and qualified employees,” Franks urged the conference audience. “If you do not actively recruit prospective officers out of college or from other industries, increase your recruitment efforts, being on the lookout for qualified women, in particular.

“Talk and listen to your female tellers and back-office employees. Tell them that if they are interested, professional advancement opportunities are available.

You can empower your female employees just by letting them know of such opportunities and that officer positions are within their reach.”

125 Years of the Arkansas Bankers Association

The Evolution of the ABA Logo For 125 years, the Arkansas Bankers Association has represented Arkansas’s hometown bankers, but what has represented the ABA?

Through the years, the ABA logo has undergone several transformations. While the artwork has evolved with the times, logo elements have always pulled from the state the association represents and the bankers it serves.

The first ABA logo can be seen in this artwork on the cover of the 1896 ABA Convention proceedings.

Referencing one of Arkansas’s early nicknames, “The Bear State,” ABA adopted this seal as early as 1917.

Revamping the logo was among the undertakings of ABA past-chairman Bob Burns of Farmers Bank & Trust Co. in Magnolia in 2002. Upon approval of the new logo, Burns noted “I think it is fresher than the one we’ve had for many years. It is more reflective of the state of Arkansas, and more reflective of the trade industry.”

This logo dates as far back as October 1944, when it first appeared in an issue of The Arkansas Banker... the use of the image became more prevalent in the early 1980s.

The most recent ABA logo was approved by the Board of Directors in December, and became effective January 1, 2016.

January 2016 | The Arkansas Banker

23

MEMBER NEWS St. Louis Fed Little Rock Branch Announces Changes to Board of Directors The Federal Reserve Bank of St. Louis has announced the following changes to its Little Rock Branch board of directors, effective January 1, 2016:

Robert Martinez, owner of Rancho La Esperanza in De Queen, Ark., has been reappointed to a three-year term on the board of directors of the Little Rock Branch of the Federal Reserve Bank of St. Louis.

Charles Morgan Jr., president and CEO of Relyance Bank N.A. in Pine Bluff, Ark., has been appointed to a threeyear term on the board of directors of the Little Rock Branch of the Federal Reserve Bank of St. Louis.

Chairman of the Little Rock Branch board of directors for 2016 will be Ray C. Dillon,

president and CEO of Deltic Timber Corp. in El Dorado, Ark. Also serving on the board are: Michael A. Cook, senior vice president and assistant treasurer of Wal-Mart Stores Inc. in Bentonville, Ark.; Keith Glover, president and CEO of Producers Rice Mill Inc. in Stuttgart, Ark.; Karama Neal, COO of Southern Bancorp Community Partners in Little Rock; and Mark White, president and CEO of Arkansas Blue Cross Blue Shield in Little Rock.

Members of the board of directors of the Federal Reserve Bank of St. Louis and the advisory boards of its three branches in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn., are familiar with the economic and credit conditions of their respective regions. Their observations – along with the economic data and information gathered and analyzed by St. Louis Fed staff – help ensure that conditions of Main Street America are represented in Federal Open Market Committee deliberations in Washington, D.C.

The Citizens Bank Approved to Acquire Parkway Bank Phil Baldwin, President and CEO of The Citizens Bank announced that regulatory approval has been granted for Citizens Bancshares of Batesville, Inc., parent company of The Citizens Bank headquartered in Batesville to acquire Parkway Bank of Rogers, Arkansas. The transaction closing is effective immediately; however Citizens Bank and Parkway Bank will continue to operate separately under their current names until their banking systems can be consolidated, which is scheduled for mid-summer of 2016.

Customers of both banks should continue to conduct business as usual at their existing bank locations and should continue to use their same checks, debit cards, and online banking services until further notice.

Customers can contact their local office with any questions.

“We are pleased to have regulatory approval to move forward with our merger of these two community banks,” stated Phil Baldwin, President and Chief Executive Officer

24

The Arkansas Banker | January 2016

of Citizens Bank.

“This is an excellent opportunity for Citizens to expand and enhance its existing bank franchise in Arkansas.”

“Customers will not experience any changes at this time, which includes the Parkway staff and management,” Baldwin added. In a previous release it was announced that Bob Taylor, former President and CEO of Parkway Bank will remain with The Citizens Bank in the position of Northwest Arkansas Regional CEO to assist with integration activities and customer relations in Northwest Arkansas.

After integration is complete, Taylor will become Executive Credit Officer with bank wide responsibility for lending activities and credit decisions.

With this transaction The Citizens Bank will have total assets of over $750 million and 16 branch locations in Arkansas. To learn more, visit The Citizens Bank’s website at www. thecitizensbank.net.

‘America Saves Week’ Set for February 22-27 The ABA is encouraging Arkansas banks to take part in the tenth annual “America Saves Week,” taking place February 23-28, 2016.

Coordinated by America Saves and the American Savings Education Council, “America Saves Week” is an opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.

Individuals turn to banks to keep their money safe and secure, and for information on how to better their financial wellbeing. The ABA encourages banks to take advantage of this opportunity by sharing consumer resources including savings tips and budgeting materials.

Log on to www.americasaves.org for details.

ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Branch Bank Application An application filed by Diamond Bank, Murfreesboro, Pike County, Arkansas, to establish a branch banking facility at 2215 East Parkway Drive, Russellville, Pope County, Arkansas, has been approved. December 21, 2015.

Merger Application An application to merge Parkway Bank, Rogers, Arkansas, with and into The Citizens Bank, Batesville, Arkansas, has been approved.

December 16, 2015.

BANKER NEWS & MOVES

Amanda Andrews Hired as Bank Chief Counsel Amanda J. Andrews, who has 10 years of experience as an Arkansas attorney, has been hired as Bank Chief Counsel for the Bank Department.

As Bank Chief Counsel, Andrews will be responsible for preparing case strategy, serving as an expert litigator before federal and state courts and agencies. In addition, she will be the Bank Commissioner’s chief legal adviser regarding all banking issues, including the drafting of legislation and Bank Department rules and regulations.

Andrews most recently served as Associate Counsel for the Arkansas Insurance Department, which she joined in June 2011. In that position, she was responsible for legal and compliance matters, including licensing.

Her role at the Insurance Department included investigating producer and company misconduct; conducting administrative hearings; drafting legislation, rules, bulletins, directives, legal opinions, and administrative orders and notices; and representing the Department in litigation and administrative appeals.

Andrews was granted a bar admission in 2005 to practice before the Arkansas Supreme Court, Arkansas Court of Appeals and all Arkansas trial courts.

Andrews began her legal career in December 2005 as a Research Attorney for the James Law Firm. In August 2007, she was hired as an Associate at the Laser Law Firm in Little Rock.

Andrews is a member of the Arkansas Bar Association and Pulaski County Bar Association.

Andrews received her Juris Doctor from the William H. Bowen School of Law at the University of Arkansas at Little Rock in May 2005. She received a Bachelor of Arts in Speech Communications at the University of Arkansas at Monticello in May 2002, minoring in biology and graduating cum laude.

In 2006, she was granted a bar admission to practice before the United States District Courts for the Eastern and Western districts of Arkansas.

She is a native of Arkansas.

“We are so fortunate and pleased to have Amanda join us in such a critical role,” said Bank Commissioner Candace A. Franks.

“Her years of professional legal experience will prove to be invaluable to the Bank Department and the state-chartered banks our office supervises.”

Educating Professionals, Creating Leaders

More than $225,000 in Scholarships Available Annually The Arkansas Bankers Association is pleased to offer scholarship opportunities to its member bankers through the Herbert V. Prochnow Educational Foundation, a supporting organization to the Graduate School of Banking at the University of Wisconsin – Madison. The GSB Prochnow Foundation offers nearly one quarter million dollars in scholarships every year to bankers who want to improve their careers and organizations through education.

Scholarships are distributed through the ABA for the Graduate School of Banking and the GSB Human Resource Management School.

Apply today for a scholarship to attend a program at the nation’s leading and most progressive banking school. For details, contact Kami Coleman at the Arkansas Bankers Association at kami.coleman@arkbankers.org.

Sponsored by: Arkansas Bankers Association

gsb.org GSB_ScholarshipAd_Ark_1014.indd 1

10/23/14 5:10 PM

January 2016 | The Arkansas Banker

25

BANKER NEWS & MOVES MYATT APPOINTED TO CORNERSTONE BANK ADVISORY BOARD Charles T. Cross, President and CEO, Cornerstone Bank, is pleased to announce the appointment of James Myatt, the local bank’s Berryville Market President, to the Advisory Board of Directors for Berryville and the Eastern District of Carroll County. Myatt has been with the bank since 2009 and has served as the Market President for its location in Berryville, Arkansas since 2013.

Cross stated, “James has been instrumental in our bank’s success and continued growth in the Eastern District of Carroll County. He has provided outstanding leadership to our team of bankers in that market and I know he will bring those same attributes to our bank’s advisory board of directors.”

Myatt currently serves as President of the Berryville Chamber of Commerce and was recently appointed to the board of directors of the Arkansas Rural Development Commission by Governor Asa Hutchison.

VANDER HORN NAMED AVP /COMPLIANCE OFFICER FOR CORNERSTONE BANK The appointment of Joy Vander Horn as Assistant Vice President/ Compliance Officer has been announced by Cornerstone Bank Executive Vice President and Chief Lending Officer, Jason Tennant. Vander Horn will oversee the bank’s overall compliance responsibilities.

Vander Horn, who has been with the bank since May of 2012,

26

has been Compliance Manager over the past year. Before her appointment as Compliance Manager, Vander Horn worked as a Teller and Finance Service Representative. Vander Horn will be located at the bank’s Financial Center on Highway 62 in Eureka Springs.

Tennant stated, “Joy has taken the initiative to make our bank’s compliance department seamless and very well organized. She understands the importance of compliance in today’s banking environment and is doing an excellent job.

We are very proud of Joy’s advancement and look forward to her leadership at Cornerstone for many years to come.”

Ms. Vander Horn has a degree in Business Administration from Mount Mercy University in Cedar Rapids, Iowa. She moved to Holiday Island in 2012 and joined Cornerstone Bank. In 2015 she achieved the designation of Certified Community Bank Compliance Officer from the Independent Community Bankers of America.

She serves on the bank’s Compliance Committee and Audit Committee in her capacity.

KING NAMED COMMUNITY BANK PRESIDENT AT THE BANK OF FAYETTEVILLE Bob King has been named Community Bank President of The Bank of Fayetteville. The announcement was made

by Gary Hudson, President and Chief Executive Officer of Farmers and Merchants Bank, the Stuttgart-based financial institution which acquired The Bank of Fayetteville November 30.

“We have full-faith and confidence in Bob, knowing he will lead our team with the same enthusiasm and focus he has

The Arkansas Banker | January 2016

exhibited during his long tenure at The Bank of Fayetteville,” said Gary Hudson.

King has been with The Bank of Fayetteville since 1999 and served as Executive VicePresident of Lending Operations since July 2004. He has more than 35 years of experience in banking.

“I am honored to be appointed Community Bank President of The Bank of Fayetteville and I’m committed to preserving the mission of our founders to be the premier community bank in Northwest Arkansas,” said King.

“Our merger with Farmers and Merchants Bank brings new opportunities and services for our customers, partners and community. I look forward to playing an active role in all areas of our bank as we continue to assist our civic and cultural organizations, as well as helping small businesses improve and expand their economic status.”

King is a graduate of the University of Oklahoma. He and his wife Mary make their home in Fayetteville.

FLETCHER JOINS STONE BANK AS SENIOR LENDING OFFICER Nick Roach, Chief Lending Officer of Stone Bank, has announced that Blake Fletcher has joined the Mountain View, Arkansas-chartered bank as a Senior Lending Officer in the bank’s new Little Rock Loan Production Office.

“We are very pleased that Blake has become a part of our team, Roach said. “He is a very talented and experienced professional banker who will provide leadership and productivity as we enter this new market.”

Blake Fletcher is a Lonoke, Arkansas native who achieved his BSBA in Finance from

the University of Arkansas at Fayetteville and a diploma from the Southwest School of Banking at Southern Methodist University in Dallas, Texas. He has also pursued additional training in construction and consumer lending and Asset/Liability Management through the Arkansas Bankers Association.

A 15-year veteran of banking in Arkansas, Fletcher is involved in a number of community activities in the Little Rock area. He is currently serving as Vice President of the Arkansas Bankers Association’s Emerging Leaders Council and on that group’s Government Relations committee.

STATE BANK DEPARTMENT PROMOTES MCCORMICK The Arkansas State Bank Department has promoted Andrew McCormick to Bank Junior Examiner. McCormick is a commercial examiner assigned to one of two groups based in Little Rock.

McCormick was hired by the Bank Department on December 30, 2013. Immediately prior to his hiring, McCormick worked as a credit analyst at River Town Bank in Dardanelle. He also has served as a “universal” banker at U.S. Bancorp in Little Rock selling bank deposit and loan products and services, referring clients to brokerage products, and originating and closing consumer loans - and as a financial services representative/ teller at Arvest Bank in Little Rock.

McCormick received a Bachelor of Business Administration, with an emphasis in personal financing planning, at the University of Central Arkansas in May 2010.

INDEX OF ADVERTISEMENTS American Bankers Association

28

www.aba.com

Graduate School 15, 25 of Banking at Wisconsin www.gsb.org

Stonier Graduate School of Banking

18

www.abastonier.com

US Market Solutions 17 www.equakeUS.com

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.

The Arkansas

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

BANKER NEWS & MOVES CARPENTER PROMOTED AT FIRST NATIONAL BANK OF CROSSETT Gene Crawford, President and CEO of the First National Bank of Crossett announced the promotion of Shann Carpenter to Senior Vice President and Chief Operating Officer following the October board meeting. “Shann is an integral part of our daily operation. Her leadership has transitioned FNBC to more efficient operations and new and improved bank products.

With this promotion, she assumes the management of our Deposit Services functions.

She will bring a strong work ethic to these new duties, and will be focused on making sure our customers experience the highest level of quality service and products,” said Crawford.

Shann Carpenter has been promoted to Senior Vice President and Chief Operations Officer. A Crossett native, Mrs. Carpenter joined the bank in 2009 as Assistant Vice President Controller and was promoted to Vice President in 2014. Prior to joining FNBC, Mrs. Carpenter worked in public accounting.

She is a 1998 graduate of Crossett High School and obtained her BBA degree in Accounting from the University of Arkansas at Monticello. She is currently enrolled in the Graduate School of Banking at LSU and is set to graduate in May, 2016. Shann serves as President of the Greater Crossett Area Food Pantry, Past President of the Kiwanis Club of Crossett, Treasurer to the Ashley County Single Parent Scholarship Foundation, and Secretary of Hamburg’s PIE association. In 2013, Mrs. Carpenter was presented with the Kiwanian of the Year award.

She and her husband Shawn reside in Fountain Hill and have two sons, Eric and Kyle.

CITIZENS BANK PROMOTES BEARD TO MARKET PRESIDENT Citizens Bank is pleased to announce the promotion of Micah Beard to the executive position of Market President – North Central Arkansas.

Phil Baldwin, President and CEO stated, “Micah is an exceptional banker and committed leader in Batesville. We are fortunate to have someone of Micah’s character, experience and capabilities lead our North Central Arkansas Region.”

“Citizens Bank is one of the fastest growing banks in Arkansas”, commented Baldwin.

“In 2015 we established new bank offices in Rogers, Fayetteville, Hot Springs, Monticello, Crossett and Portland. In 2016 we will continue our growth plans and solidify our position as a state-wide banking franchise.

Micah’s banking experience will allow us to be successful in this effort.”

Mr. Beard is a veteran Batesville banker, with 19 years of total banking experience - most recently serving as Citizens Bank’s Senior Vice President and Loan Department Manager. In 2014 Mr. Beard graduated from the prestigious Louisiana State University Graduate School of Banking.

“As we set our sights on growth and expansion, I am honored to lead the market where it all began. Citizens Bank is deeply invested in our hometown and we appreciate the support our customers have shown us over the past 62 years. It is a

privilege to serve alongside the best bankers in the area and I look forward to what the future holds,” Beard said.

A native of Monticello, Mr. Beard attended the University of Arkansas in Monticello, where he received a bachelor’s degree in business administration with a concentration in finance and accounting. He is a member of the Rotary Club of Batesville and is married to Jennifer Beard who works with Amedisys as a Physical Therapy Assistant.

Micah and Jennifer are parents of a daughter, Avri, who is three years old.

FERGUSON, HURST JOIN GATEWAY BANK Gateway Bank has announced the addition of two new employees at the bank’s Malvern branch.

Jim Ferguson joined the bank as Market President and Senior Lender. He has over 40 years of banking experience, having served in Malvern, Arkadelphia, Hot Springs, and Benton.

Ferguson is excited to be back in his hometown of Malvern.

Camron Hurst of Prattsville joins as Vice President and Commercial/Consumer Lender.

He has five plus years of experience as a lender in the Grant/Hot Spring County area.

Give your employees the recognition they deserve!

Submit Banker News & Moves to traci.logsdon@arkbankers.org.

January 2016 | The Arkansas Banker

27

ABA Government Relations Summit 2016

March 14-16, 2016

Washington, DC

Join ABA and bankers from across the U.S. for the 2016 ABA Government Relations Summit, in Washington, DC. Be a voice of influence during this critical election year, and unite with more than a thousand industry colleagues to help bring your hometown perspective to Capitol Hill.

register at

aba.com/Summit Open to ABA members and non-members.

28

The Arkansas Banker | January 2016