The Arkansas Banker January 2019

January 2019

The

Education

Issue Volume CII, No. 1

INFORMATION = POWER Get in shape for your next exam!

Request a free Custom Exam Preparation Report and get prepared for your next exam.

Arkansas Bankers Association a proud member of

This report is driven by thousands of bankers who have anonymously taken our survey.

No more exam surprises!

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Request your Custom Exam Preparation Report at www.allbankers.org The Arkansas Banker January 2019 n

January 2019 COLUMNS

Volume CII, No. 1

President’s Message

4

Lorrie Trogden

Chairman’s Column Cathy Owen

Washington Update

8

Rob Nichols

12

Government Relations Open Comment Periods 10 Association Updates Group Divisions 11

Millennial Minute with Emily Burns

DEPARTMENTS

THE ED UCAT ION ISSUE

6

Commercial Loans and the FCRA

by Victoria E. Stephen

Live Events Webinars AmBA Training

5 7 9

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18

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

2019 Professional Development Events

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

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by John Jordan

SAYS

by Scott MacDonald

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Brand New: ABA Professional Development Center

Education: A Great Investment

SURVEY

Professional Development Platforms

20

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Does Your Branching Strategy Need a Tune-up?

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Professional Development

Banker News & Moves

14

National GSB Programs

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2019 GSB Scholarships

Arkansas Bank Sparks Student Savings at Stephens Elementary

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Remembering William R. Holmes

Random question.

Random bankers.

Interesting results.

16%

How is your office decorated?

9

Martha Stewart-worthy

%

I inherited the decor from my predecessor

30%

Minimalist

44%

CLICK HERE

A good mix of crayon drawings and family photos

to take part in February’s Survey Says

January 2019

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PRESIDENT’S MESSAGE Goals & Resolutions for 2019

ABA STAFF

The new year brings fresh resolutions and new goals in our personal and professional lives. The number one goal this year for the Association: provide value and remain relevant to you and your bank’s needs. As I travel the state I want to hear how the Association can best do this, and how we can help you the most. This is your association, and all of us here want to be an advocate and a meaningful resource.

Lorrie Trogden

January is also the official kickoff of the 2019 Great Arkansas Road Tour! I want to give Senator Pitsch and all of the Fort Smith and Greenwood banks I visited recently a big thank you for an outstanding day. I hope everyone saw the pictures on social media – check out our Twitter and Facebook accounts, we love to feature our members. I have several visits planned and I need more, let me know if you have an event I can attend, or are willing to host a visit.

SVP / Chief Operating Officer 501.978.3613 barry.jackson@arkbankers.org

January also brings the Arkansas 2019 General Assembly Regular Session.

The Association is your advocate at the state capitol, and we work full time to monitor legislative issues. The Association has been actively involved in shaping banking law for over 100 years. We will keep you informed on bills of interest to our industry in the weekly E-News Update. If there is a critical piece of legislation requiring urgent action, you will receive a special “call to action” email. From time to time you may also be called on for expert testimony at committee meetings or to share your bank’s story with your local legislators. The ABA has an incredible grassroots network, and I encourage you to be involved and have your voice heard.

We are also actively monitoring and advocating for you at the federal level. Our next trip to Washington will be for the AmBA Washington Summit, scheduled for April 1-3. I would love to have you join us, uniting our voice in educating regulators and Congress about the issues important to our industry. Please mark your calendar to attend, additional details will come out soon. The E-News Update email will also follow federal legislation and open comment periods. We have a knowledgeable congressional delegation and are thankful for their responsiveness about issues affecting our industry.

Lastly, I ask that you back the PAC. It is essential to support candidates who understand banker’s concerns. These candidates appreciate your needs when it comes to opposing or supporting industry-related bills. For information on how to contribute along with all the ABA’s advocacy resources, please visit the Advocacy page on our website.

I wish you good luck on all your New Year’s resolutions, and I hope to see you soon.

Lorrie Trogden | President & CEO Arkansas Bankers Association

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President & CEO 501.978.3602 lorrie.trogden@arkbankers.org

Barry Jackson

Carla Brinkley

VP / Controller 501.978.3608 carla.brinkley@arkbankers.org

Kami T. Coleman

VP / Professional Development 501.978.3614 kami.coleman@arkbankers.org

Traci Logsdon

Director of Communications 501.978.3603 traci.logsdon@arkbankers.org

Jessica Sahene

Marketing Coordinator 501.978.3609 jessica.sahene@arkbankers.org

Brenda Scarbrough

Administrative Assistant 501.978.3607 brenda.scarbrough@arkbankers.org

ABA PROFESSIONAL DEVELOPMENT

LIVE EVENTS

FEBRUARY 2019 IRA Advanced Update

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

Basic Personal & Business Tax Return Analysis

February 7, 2019 | ABA Office, Little Rock Who Should Attend: IRA Personnel in New Accounts, CDs, Trust, Investments & Savings

February 28, 2019 | ABA Office, Little Rock Who Should Attend: Commercial & Consumer Lenders, Loan Documentation Specialists, Private Bankers

2019 Bank Security Hot Topics February 26, 2019 | ABA Office, Little Rock Who Should Attend: Security Officers, Chief Information Officers, Operations Managers

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MARCH

Real Estate Lending Compliance

11-12 Consumer Lending

School

3 4

APRIL

8

Tax Return Analysis

14-15 TRID Refresh

16-18 ABA Annual Convention

20-21 CBSM Certification

22-26 Commercial Lending

School

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25

4

6

Real Estate Appraisal Program Updates

JUNE

Intro to Consumer Lending

24

MAY

Cash Flow Analysis

Call Report Prep

16 Key Ratio Analysis

Loan Assistants & Processors Workshop

JULY

Cybersecurity Seminar

Advanced BSA Brush-Up

AUGUST

21 Opening New Accounts:

Documentation & Compliance

12-13 CBCM Certification

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 Professional Development, Education, and Bill Holmes

I can’t write this column about Education and Professional Development without also writing about Bill Holmes and the impact he had on these areas for many of us. If you not are aware, Bill passed away peacefully at his home on December 17. He served our Association for fifteen years and as its president for seven years.

Many bankers credit Bill with having given them opportunities for professional development and growth within their banking careers that they may not have had the ability to experience otherwise. Some of these opportunities have been here in Arkansas, but other opportunities have extended well beyond our state’s borders.

Bill mentored and opened doors for many bankers. He was a wealth of banking knowledge and banking connections. Just as Bill did, it is our responsibility to develop and cultivate our staff and to offer to them professional opportunities that they may not otherwise have the opportunity to experience.

Bill also played a large role in the development of and offering of many educational conferences, webinars, and seminars for the Arkansas Bankers Association. In having the opportunity to travel and attend conferences with Bill, I was able to observe first-hand his conversations with other states’ Association leadership regarding new educational strategies to develop in Arkansas. He was always looking for educational programs he thought would be of the greatest benefit to our membership and he strived to continually learn and keep up with technology.

Bill realized the importance of the utilization of technology, embraced it, continually strived to gain proficiency of it, and was very proud of his ability to Tweet. Bill also demonstrated the importance of banking education through his service on the Board of Trustees at the Graduate School of Banking in Madison, Wisconsin, and the Graduate School of Banking at LSU. We too, like Bill, should always be looking for educational opportunities that would benefit our staff.

Even if you didn’t know Bill personally, I hope you had an opportunity to know him through his columns in this magazine, or through his staff at conferences. He worked tirelessly for our Association and continued to help guide us throughout his illness. He took an interest in every banker he met, even those he disagreed with on issues. Bill had a huge heart, and cared deeply for others, especially those in need. His big smile, firm handshake, quick wit and southern charm gave him the ability to make a total stranger feel like they were old friends. Bill’s wife, Rita, also assumed a large role in our Association, graciously welcoming and hosting bankers and their spouses. He and Rita developed friendships near and far. They often said, that no matter where they traveled in the United States, they always knew they had banker friends they could call if they ever needed them. They frequently referred to these friends as their banker family.

Bill gave much to banking throughout his forty plus years of service to the industry.

He also gave much to our Association and to each of us. He taught us a great deal and he will be remembered by all who knew him. And, although Bill would not want us to go on and on about him, I am sure he is proud of his legacy. I also think he is looking down on us, with his big ear to ear grin, his camera in hand, and is experiencing some new great adventure.

Bill, you will be missed…

ABA OFFICERS Cathy Owen, Chairman

Eagle Bank & Trust, Little Rock

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

Jonathan Harrell, Vice Chairman Generations Bank, Rogers

Jim Cargill, Treasurer Arvest Bank, Little Rock

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

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

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

Cathy Owen | Chairman

Chairman of Eagle Bank & Trust, Little Rock

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Jason Tennant, Eureka Springs Lynn Wright, Little Rock

ABA PROFESSIONAL DEVELOPMENT

FEBRUARY 2019 Wednesday, February 6

Introduction to Internal Audit 10:00 a.m. – 12:00 p.m.

Thursday, February 7

Preparing a New Manager for Success 10:00 a.m. – 11:30 a.m.

WEBINARS

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

Wednesday, February 13 Loan Documentation: Top 10 Mistakes and How to Avoid Them 10:00 a.m. – 12:00 p.m.

Thursday, February 14

Regulation CC – Check Holds 1:30 p.m. – 3:30 p.m.

8 Steps to Improve Cross-Selling 1:30 p.m. – 3:30 p.m.

Friday, February 8

Wednesday, February 20

Call Report for Banks-Recent Changes, Highlight, and Pitfalls 10:00 a.m. – 12:00 p.m.

Top 25 Safe Deposit Compliance Issues 10:00 a.m. – 12:00 p.m.

Monday, February 11

Wednesday, February 20

CRE Appraisals: Regulations and the Review Process 1:30 p.m. – 3:30 p.m.

BSA Emerging Issues 2019 1:30 p.m. – 3:30 p.m.

Thursday, February 21 Tuesday, February 12

What to Do When a Customer Dies 10:00 a.m. – 12:00 p.m.

CRA Nuts & Bolts- Five Steps to Pass the Exam 1:30 p.m. – 3:30 p.m.

Legal Issues of Checks 1:30 p.m. – 3:30 p.m.

Friday, February 22

Monday, February 25

Excel Explained: Minimize Spreadsheet Errors 1:30 p.m. – 3:30 p.m.

Tuesday, February 26 Opening Minor Accounts 10:00 a.m. – 12:00 p.m.

Onboarding Your New Hire 1:30 p.m. – 3:00 p.m.

Wednesday, February 27 TRID for Beginners 10:00 a.m. – 12:00 p.m.

W-9, W-8BEN and W-8BEN-E Forms and Information 1:30 p.m. – 3:30 p.m.

Thursday, February 28

Federal Benefit Payments Garnishment Requirements 10:00 a.m. – 12:00 p.m.

Alert! Prepaid Accounts Final Rule Effective April 1, 2019 1:30 p.m. – 3:30 p.m.

ACH Rule Changes: What’s New in 2019 10:00 a.m. – 12:00 p.m.

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

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WASHINGTON UPDATE 2019: Different Approach, Same Agenda Significant progress at the regulatory agencies as well as the passage and implementation of long-sought bipartisan regulatory reform made 2018 a breakthrough year in many ways. The new year brings fresh challenges, including how to maintain momentum for policy improvements in the face of a newly divided Congress.

with the House Financial Services Committee, and for the introduction of bills that address banks’ challenges. While AmBA is not weighing in on the societal, cultural or moral aspects of this issue, we do want legal protections for banks providing services in states where cannabis is legal.

But as I have said on many occasions, the fundamental business of banking — from the deployment of credit to the building of communities — does not belong to one party.

Banking issues can and should be bipartisan. So while our tactics might change with the new dynamic in Washington, our agenda hasn’t, and won’t.

Understanding the impact that the Financial Accounting Standards Board’s Current Expected Credit Loss accounting standard will have when fully implemented is a significant challenge. But we know that the standard’s upfront loss recognition changes the economics of lending and could force hundreds of banks to raise capital or limit their product offerings. For this reason, ABA is advocating that a thorough quantitative impact study be conducted before allowing the standard take effect.

AmBA will actively advocate on a range of policy issues in 2019, including additional regulatory reforms that didn’t make it into S. 2155, such as exam-fairness provisions that would establish deadlines for banking agencies to issue exam reports and create an independent examination review and appeal process. Other topics we think are ripe for bipartisan action include:

Bank Secrecy Act Reform

There is growing consensus that now is the time to update the compliance structure surrounding the nation’s antimoney laundering rules, which has not changed since 1970.

We will be working to build bipartisan support for BSA/ AML reform, including updated Suspicious Activity Report and Currency Transaction Report thresholds, further modifications to customer due-diligence rules and better communication between banks and law enforcement.

Cannabis Banking

As cannabis is now legal in some form in 33 states, the growth in dispensaries as well as numerous fast-growing offshoot businesses is putting our industry in an untenable position. A bank might choose not to serve a marijuana grower or dispensary since cannabis remains illegal under federal law, yet still face significant legal, operational and regulatory risk if it offers services to a customer with a tangential connection to cannabis. We’ve heard many stories, like the bank that was told by its regulator not to lend any more to a local mall owner after it leased space to a cannabis dispensary.

This conflict between federal and state law is reaching a tipping point, and we believe Congress and regulators must provide greater legal clarity. Watch for hearings, likely to begin

CECL Accounting Standard

The standard is scheduled to take effect in 2020 for Securities Exchange Commission registrants, 2021 for nonregistrant banks with outside equity/debt holders, and 2022 for privately held and mutual banks.

Community Reinvestment Act Modernization

Regulations implementing the Community Reinvestment Act have not kept pace with changes in banking and technology, and the Office of the Comptroller of the Currency has taken the lead in modernizing them. The comment period following OCC’s issue of an Advance Notice of Proposed Rulemaking closed in November 2018, with some 300 banks weighing in. That kind of engagement will be needed again in 2019, when we expect the banking agencies to jointly issue a proposed rule. This is a oncein-a-generation opportunity to move CRA into the future, but it will face substantial headwinds from those who fear (wrongly) that modernization will reduce banks’ commitment to their communities. We will be working to allay those fears and make the case for commonsense improvements. *** Fortunately or unfortunately, banking always has a full pipeline of issues demanding attention. So while those above seem ripe for action in the coming months, AmBA will be advocating on a host of other, equally important issues, from data security and housing finance reform to flood insurance and student debt concerns.

Your continued engagement will be the key to advancing any of these issues, and creating smarter, more effective bank regulation.

Rob Nichols

President & CEO, American Bankers Association © 2019 American Bankers Association. All rights reserved. Reprinted with permission.

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ABA PROFESSIONAL DEVELOPMENT

AmBA TRAINING

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

UPCOMING COURSES

Analyzing Bank Performance 1/28/2019 - 3/15/2019

General Accounting 3/18/2019 - 7/5/2019

Marketing in Banking 6/3/2019 - 6/28/2019

Managing Funding, Liquidity, and Capital 1/28/2019 - 3/1/2019

Legal Foundations in Banking 3/25/2019 - 5/31/2019

Managing Funding, Liquidity, and Capital 6/10/2019 - 7/12/2019

Building Customer Relationships 2/4/2019 - 3/1/2019

Managing the Bank’s Investment Portfolio 3/25/2019 - 4/26/2019

Commercial Lending 2/4/2019 - 4/26/2019

Marketing Management 3/25/2019 - 4/19/2019

Money and Banking 2/4/2019 - 5/24/2019

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

Analyzing Financial Statements 2/11/2019 - 5/31/2019

Managing Interest Rate Risk 4/8/2019 - 5/31/2019

Marketing Planning 2/19/2019 - 3/15/2019

The Mortgage Lending Business 4/8/2019 - 5/17/2019

Intro to Agricultural Lending 2/25/2019 - 4/19/2019

Basic Administrative Duties of a Trustee 4/15/2019 - 5/17/2019

Introduction to Trust Products & Services 2/25/2019 - 3/29/2019

Fundamentals of Mortgage Lending 6/17/2019 - 7/26/2019 Introduction to Trust Products & Services 6/17/2019 - 7/19/2019 The Banking Industry 6/24/2019 - 7/19/2019 Consumer Lending 6/24/2019 - 10/11/2019 Money and Banking 6/24/2019 - 10/11/2019 Intro to Agricultural Lending 7/15/2019 - 9/6/2019

The Banking Industry 5/6/2019 - 5/31/2019

Legal Foundations in Banking 7/15/2019 - 9/20/2019

IRA Online Institute 2/25/2019 - 5/19/2019

Analyzing Bank Performance 5/13/2019 - 6/28/2019

Marketing Planning 7/15/2019 - 8/9/2019

The Banking Industry 3/4/2019 - 3/29/2019

Bank Lines of Business 5/20/2019 - 6/14/2019

Bank Lines of Business 7/22/2019 - 8/16/2019

Bank Lines of Business 3/18/2019 - 4/12/2019

Building Customer Relationships 6/3/2019 - 6/28/2019

General Accounting 7/22/2019 - 11/8/2019

For more information about AmBA Training, 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: Reduced Reporting for Covered Depository Institutions Agency: OCC, Fed, FDIC Comments Close January 18, 2019 Will permit non-complex institutions with less than $5 billion in assets to file the FFIEC 051 Call Report. Banks filing the Report will see a reduction in the number of data items required in first and third quarter filing.

Request for Information on Small-Dollar Lending Agency: FDIC Comments Close January 22, 2019 The FDIC is seeking information about consumer demand for small-dollar credit products, features and characteristics of these products, and the benefits and risks to banks offering them. They are also interested in the challenges that stand in the way of banks’ ability to offer small-dollar credit products.

Please note that, due to the ongoing government shutdown, there is no certainty as to whether the comment period deadlines will be adhered to or extended.

2019

GSB Online Seminar Series ONGOING THROUGHOUT THE YEAR

About the GSB Online Seminar Series Offering a convenient and costeffective way to participate in educational opportunities, these programs are designed specifically for financial professionals and delivered by some of today’s top industry experts. The use of state-of-the-art audio and video technology ensures a quality, interactive learning experience.

Relevant, bank-specific topics provide a solid educational value for you and your staff.

Educating Professionals, Creating Leaders

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Registration includes: • One connection into the online seminar presentation—invite others to participate through the same connection at no additional cost • Handouts and other resource material • Unlimited access to the recording of live, online seminar presentations for 90 days after the conclusion of the program • Access to industry experts and nationally known speakers from the convenience of your office

GSB. org

Association Updates Group Divisions At the September 25, 2018 Arkansas Bankers Association Board Meeting, the Board approved revisions to the Association’s group structure and the process for nominating ABA Board Members and Leadership. Three directors will continue to be elected from each of the three geographic groups that will replace the five geographic groups currently in place.

All directors currently serving may serve out their term.

Starting with the 2019-2020 election cycle, Association members will be able to submit nominations for the association board of directors, vicechairman, and treasurer, as well as for the group vice chairman, and Emerging Leaders Council. A nomination form will be emailed to the Association’s primary contact at each member bank.

The nomination form will also be made available on the Association’s website at www.arkbankers.org. Responses should be returned to the Association and will then be distributed to either the State Nomination Committee or the Group Nomination Committee for recommendation for election at the Annual Convention.

These revisions are a result of the shrinking number of Arkansas banks, combined with a disparity that developed in the number of banks, within the groups. This was studied by your Association leadership, who also reviewed the steps other state associations took to resolve similar issues. The new group structure results in approximately the same number of banks within each group and the new nomination process broadens the pool of candidates available for Association leadership, while also allowing each member bank to be involved.

Click here to access the 2019 nomination form.

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Group 1

Group 2

Group 3

Baxter Clay Cleburne Craighead Crittenden Cross Independence Izard Fulton Greene Jackson Lawrence Lonoke Mississippi Poinsett Prairie Pulaski Randolph St. Francis Saline Sharp Stone White Woodruff

Benton Boone Carroll Conway Crawford Faulkner Franklin Johnson Logan Madison Marion Newton Perry Pope Scott Searcy Sebastian Van Buren Washington Yell

Arkansas Ashley Bradley Calhoun Chicot Clark Cleveland Columbia Dallas Desha Drew Garland Grant Hempstead Hot Springs Howard Jefferson Lafayette Lee Lincoln Little River Miller Monroe Montgomery January 2019

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Nevada Ouachita Phillips Pike Polk Sevier Union

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Commercial Loans and the FCRA

by Victoria E. Stephen Compliance Alliance

The Fair Credit Reporting Act, or FCRA for short, basically regulates the furnishing and collecting of credit information and imposes certain disclosure requirements in connection with accessing credit reports. The FCRA itself is a statute and only a few parts of the statute have implementing regulations, so it can be particularly tricky to interpret at times.

One of the most common questions we get on the Compliance Alliance Hotline is whether the FCRA applies to commercial loans. Unfortunately, there’s not a straightforward answer to this like there is for Regulations X or Z. Although the FCRA is generally limited to consumer purpose transactions, it also applies in some cases to commercial purpose transactions involving a consumer.

You might be asking, if there is a “consumer,” how can this possibly be a commercial loan? Well, the answer is that the statute defines “consumer” very simply—just as an “individual”: § 603. Definitions; rules of construction [15 U.S.C. § 1681a] … (c) The term “consumer” means an individual.

As you can see, there’s no requirement that the individual be obtaining a product or service specifically for a consumer purpose. Likewise, the term “consumer report” includes other purposes besides just personal, family, or household purposes:

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(d) Consumer Report (1) In general. The term “consumer report” means any written, oral, or other communication… used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (A) credit or insurance to be used primarily for personal, family, or household purposes; (B) employment purposes; or (C) any other purpose authorized under section 604 [§ 1681b].

Does this mean that the bank has to have a permissible purpose before pulling a credit report on an individual guarantor for a loan to a business entity?

The answer to this is conclusively ‘yes’— there always has to be some permissible purpose before pulling any consumer report on any individual. The question is whether the application itself is enough of a permissible purpose, since the individual is just a guarantor. For this, we turn to the Federal Trade Commission’s (FTC) “Tatelbaum Opinion” which ultimately concludes that if an individual has any kind of personal liability on a business loan, including just a guarantee, there would be permissible purpose under the FCRA by means of the application for credit.

What about during the term of the loan though? Many banks regularly pull consumer reports on individuals throughout the term of the loan, and there’s a question as to whether the need to review itself constitutes a permissible purpose. In the “Gowen Opinion,” the FTC concludes that in order to have valid permissible purpose, the bank would need to have some authority to change the terms of the loan as a result of the review; for example, if the bank had the authority to terminate or freeze the loan if the report contained certain negative information. On the other hand, if the bank is just “reviewing” the report so as to potentially offer the borrower different terms, then it would generally not be allowed, “unless the contract expressly provides for such action.”

January 2019

As a caveat, however, these opinions are only informal guidance that are not binding on the FTC, and further, interpretive authority for the FCRA technically transferred to the Consumer Financial Protection Bureau (CFPB) pursuant to the Dodd-Frank Act. While plenty of banks do rely on them, we would still recommend getting written authorization from the individual to pull credit. In fact, we’d recommend this in every case, for any consumer report pulled. This way, the bank can rely on that written authorization as valid permissible purpose to pull the consumer report, rather than having to justify that one of the other permissible purposes apply. Said another way, the bank always has a permissible purpose to obtain a consumer report if the individual authorizes this in writing.

(For reference, the full list of permissible purposes can be found in § 604(a) of the FCRA).

Besides permissible purpose questions, the other common question we get on the Hotline is whether an adverse action notice has to be provided in a commercial context. The general rule in the FCRA is that if the bank obtains a consumer report and takes adverse action based (in whole or in part) on any information in the report, it must give the consumer an adverse action notice.

The catch here is how the FCRA defines an “adverse action.” The definition is based on Regulation B’s (12 CFR § 1002) definition of “adverse action,” which does not include guarantors: …Under section 701(d)(6) of the ECOA and § [1002.2(c)] of Regulation B, only an applicant can experience adverse action. Further, a guarantor or co-signer is not deemed an applicant under § [1002.2(e)]. …

Luckily, the FTC clarifies this in the “Stinneford Opinion.” If the consumer is only a guarantor (or acting in a similar capacity in which she or he is only secondarily liable on the businesspurpose loan), then an adverse action notice would not be required to be provided to the guarantor. This is true even if the application is being

adverse action notice only to the primary applicant, if there is one, but it also does not prohibit the bank from providing a notice to each applicant if it chooses.

denied based on information from the consumer report of the guarantor. On the other hand, if the individual is a coborrower (or acting in a similar capacity in which she or he is primarily liable on the loan), then a FCRA adverse action notice would be required.

adverse action notices, each individual should receive a separate adverse action notice with the credit score disclosures associated with just her or his own report. In other words, the individual should never receive the credit score information of another co-applicant.

If trying to figure out the difference between the two sounds like way too much work, the bank is welcome to provide an adverse action notice in both cases. Note, however, that any time the bank provides multiple FCRA

Although the focus of this article is the FCRA, we always get a follow-up question regarding whether a Reg. B adverse action notice is required, even if a FCRA adverse action is not. According to Reg. B, the bank may provide the

As always, Compliance Alliance and ABA members are welcome to contact us with any other questions by email at hotline@compliancealliance.com, or by calling 888-353-3933, or chatting in on the website.

Victoria E. Stephen, CRCM, serves as Associate General Counsel for Compliance Alliance. Victoria has worked in corporate tax law, mergers and acquisitions, and performed legal research on a range of regulatory issues. She heads Compliance Alliance’s team of hotline attorneys who assist members with the spectrum of regulatory compliance questions on a daily basis, and serves as Editor of Compliance Alliance’s monthly Access Magazine.

MILLENNIAL MINUTE

EMILY BURNS

You have a degree in Ag Business, and are working in a predominantly ag area...what inspired that passion?

My inspiration for agriculture comes from my family’s background. If you know me, you know I am a huge family person. I grew up on the farm and saw firsthand what hard work looks like. I’ve seen a long day on the farm working dust to dawn. I recall stories about my grandfather spending all day on the farm and then sleeping on a bale of cotton because he had to help run the family gin that night.

They probably don’t realize it, but seeing how hard my family works inspires my work ethic more than anything. I knew when I started in my Ag Business degree, that agriculture was something I wanted to be around forever.

Bank

First National Bank of Eastern Arkansas, Wynne Position

Management Trainee How Long Have You Been with First National Bank?

2 1/2 Years

What technology innovation has made the most impact on your life?

As stereotypical as this sounds, my cell phone has the most impact on my life. Millennials get a lot of heat for always being on their phone, but it really is my life line. Besides the importance of having it to answer emails and calls, I love the social connection that my iPhone brings. Life gets so busy and I love being able to keep up with friends through Instagram or to be able to FaceTime my family and friends at any time.

If you could host a talk show, who would be your first guest?

My initial talk show guest would be Samantha Ponder. Samantha is a sports broadcaster who is currently a host of Sunday NFL Countdown.

Although I have never even watched NFL Countdown, I am constantly inspired by Samantha and her values outside of her broadcasting position. I never miss a podcast that she is a guest on. Samantha loves to talk about her family, faith and how even though she has been very successful, she always tries to keep a simplistic life style.

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Does Your Bank’s

Branching Strategy Need a Tune-up?

by Scott MacDonald SW Graduate School of Banking Foundation

Do you recall, several years ago, when you went to the airport and stood in line to see an agent to check in for your flight?

I do, and I also remember when the kiosks appeared and I avoided them. Later, customer service agents began to “encourage” us to use the kiosks. I still avoided them until circumstances finally forced me to succumb to the automated check-in. To my delight, it was actually an improvement. The ensuing reduction in gate agents and greater reliance on automated check-ins have been going on in other industries for about ten years. I suggest the financial services industry would have likely followed suit if we had not been preoccupied, recovering from the 2008 financial crisis. Teaching our customers to self-serve, as the airline industry did, will save our industry billions of dollars in the long run.

The total number of commercial bank offices peeked at 90,133 in 2008, while the peek in commercial bank branches was 83,130 in 2009. The use of automation in banking will not eliminate the need for banks, or branches, or lose the personal touch with customers. On the contrary, automation in banking will enhance the level of service, reduce costs and allow the bank to perform at a higher level, not only in profits but also in customer service. The greater availability of technology and the heavy cost of a branch compels bank management to continuously re-evaluate their branching footprint.

There are several strategies we should consider when evaluating our branching footprint. First, branches can be critical in driving organic growth. Second, branches can be a prominent means of promoting the bank’s brand and their commitment to the community. Third, branches are a great customer service tool. Finally, branches can be a means to expand outside of the bank’s core market.

Organic growth is critical when considering opening a new branch. Branches, however, are expensive and new technology can make existing branches more efficient or reduce the need for additional or existing branches. Hence, we should always consider branch closures alongside expansions. Jon Voorhees with Peak Performance Consulting Group suggests that the best sites for a branch are those that can be easily seen, have good easy access, and are generally a free-standing building at hard corners. Many banks did not build the branch at the ideal site owing to its cost, only to find that the second choice was not as productive as they had hoped. Often, they would build another branch, again, not on the best site, only to find they now have two less productive offices— when what they needed was to be on the right site.

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must be profitable. We cannot keep a branch open or open a new branch at near break even or less just to ensure we don’t lose a handful of customers. Believe It or not, when we finally stopped returning the checks, those customers neither got upset nor left the bank as we thought they would. They frequently found the new technology useful, just as I did with the airline kiosks.

According to the FDIC Quarterly, those banks which decreased their number of offices by more than 25 percent, improved their efficiency ratios by 7.14 percent. Lesson learned: when we consider branch expansion, always consider consolidating existing branches.

A physical branch is a prominent means of promoting the bank. Before the financial crisis, community and regional banks were rewarded by how big their footprint was. The strategy was to use the branch to expand their footprint as large as possible. What we are discovering today is: as we create more branches to expand our footprint, we dilute the impact the branch has as a branding tool and commitment to the community. One or two branches in a large city might not be noticed, while one or two additional branches in our core market will often have a much greater impact. Post financial crisis, the strategy is to maximize the quality of our footprint, not its mere size. It is important to focus on dominating the core market before expanding into new markets. This keeps costs down, has a great brand impact, and does not risk dilution and pose execution risks outside the organization’s primary area of expertise.

A branch as a customer service tool is an argument I often hear against closing a branch and less so, the motive behind opening a branch. An old story I tell is about the early stages of the Internet. Back then banks returned customers’ physical paper checks (non-truncated accounts). Today I bet the majority of bankers don’t even know what a non-truncated checking account is! We moved to not returning the physical checks. We had a few older customers who just could not adjust; and we continued to return checks to these handful of customers, at a cost that would embarrass us today! Bottom line is, branches can be a great customer service tool but they

Most banks will find mining their existing core markets more fruitful until they have saturated their existing core market.

It bears repeating: today’s strategy is about dominating a market rather than stretching resources too thin. A single branch in a new market often has less branding power and rarely adds to the customer service experience of the existing customer base. On the other hand, expanding into a new market with a branch is a great strategy when the bank has saturated its existing market or there is little growth opportunity there. When expanding into a new market it is critical to evaluate the trade area, the density of its population, its business and economic conditions, and the existing competition and growth opportunity in the area. Expanding in a new market can provide that needed growth, but it will be associated with high startup costs and execution risk if we don’t have the right people or locate in an already saturated market.

As one of our New Year’s resolutions, we should all tune-up our existing branching strategies. If we built our branches as we did many years ago, they could be larger than we need today; in the wrong location; or replaced or supplemented by new technology in the form of automated tellers and cash recycling. Not only can new technology reduce the cost of operating a branch, it can improve the efficiency of branch personnel and the customer experience. Look no further than our experience with the airline kiosks!

S. Scott MacDonald is the President & CEO of the SW Graduate School of Banking Foundation at Southern Methodist University in Dallas, Texas. He also serves as the Director of the Assemblies for Bank Directors.

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PROFESSIONAL DEVELOPMENT PLATFORMS The Arkansas Bankers Association is dedicated to contributing to the professional development growth and needs of Arkansas bankers and their careers. We are proud to offer a variety of educational programs in several learning formats for our members, and aim to make training as convenient, timely, and cost effective as possible. Banks can make no greater investment than in the continuing education of their employees. We encourage you to explore all the training options available to you.

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.

How to register for an ABA Live Event: Registration for our Live Events is easy...simply find an event that interests you, and fill out the online registration, or call the ABA Professional Development Department at 501.376.3741.

Patrice Konarik leads a group discussion during the annual IRA Advanced seminar in the Arkansas Bankers Association Board Room.

Training Online with 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!

How to register for a webinar: Simply click on the online event that you are interested in and follow the webinar provider links to check out and complete your registration. Choose from an array of options including live participation, CD-ROM, OnDemand recordings and more!

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Advancing Skills Through AmBA Training AmBA Training is a comprehensive source for training and education available through the American Bankers Association (AmBA). 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.

How to register for AmBA Training programs: Visit our Professional Development calendar online at www.arkbankers.org. Select the training course you would like to pursue and follow the AmBA Training links to select course options and complete your registration. Courses are held at various times throughout the year for your convenience.

AmBA Training Options Facilitated Online Training Courses

Self-Paced Online Training Courses

Diplomas & Certificates

Textbooks & Reference Materials

These courses are available in a virtual classroom environment, complete with fellow students, instructor guidance and feedback.

AmBA diploma and certificate programs are continually reevaluated and refined to reflect the current needs of bankers in their jobs today and changes in the industry.

These courses offer the greatest flexibility in skill-building and practical application as they are independent study and include real-life practice scenarios.

AmBA has developed textbooks, workbooks & reference materials to support the training curriculum. These tools for self study and in-bank training cover a variety of subjects in banking and financial services.

2018 PROFESSIONAL DEVELOPMENT SNAPSHOTS

Commercial Lending School

Mega Conference

Women in Banking Conference

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2019 PROFESSIONAL DEVELOPMENT EVENTS

CONSUMER LENDING SCHOOL

ABA ANNUAL CONVENTION

March 11-12, 2019 | Little Rock

April 16-18, 2019 | 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.

More than 350 C-suite bankers, representing banks from across the state converge at the ABA Annual Convention for the opportunity to visit with peers, forge new connections, and re-energize. This landmark event includes high-energy networking events and dynamic speakers.

Who Attends: Beginning bankers, and bankers looking for a better understanding of the consumer loan process

COMPLIANCE SCHOOL

April 8-11, 2019 | 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.

Who Attends: Compliance Officers, and any banker involved in the compliance monitoring, audit, review, or training process in their institution

COMMERCIAL LENDING SCHOOL

April 22-26, 2019 | Little Rock

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

Who Attends: Bankers with a minimum of one year of experience in commercial lending or credit administration

IRA SCHOOL

October 2-3, 2019 | Little Rock

ANNUAL GOLF TOURNAMENT

April 16, 2019 | Little Rock

Get on the course with your fellow bankers at the annual ABA golf event. This event is open to all bankers and their guests, and provides a relaxed networking outing, mixed in with some friendly competition. The 2019 event will add a twist, bringing our non-golfer bankers a chance to join in the fun!

Who Attends: Bankers at all levels, including C-suite and Emerging Leaders

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This two-day IRA School is an intensive program that covers all aspects of IRAs. Always popular, this event is attended by 35+ bankers from across the state.

Who Attends: Investment and Trust personnel, new and experienced IRA personnel, New Accounts Reps and Savings Counselors

October 8-9, 2019 | Little Rock

Mega Conference brings together nearly 300 bankers from different vocations and locations over a three-day extravaganza. You’ll see bankers from across the state, taking part in one of these Mega Conference tracks: Agricultural Lending Bank Executives Marketing Security

Technology Trust Compliance Lending

WOMEN IN BANKING CONFERENCE

Fall 2019 | Little Rock

Engaging, empowering, and energizing ­— all words used to describe the Women in Banking Conference. Designed to empower and inspire women at all levels of the Arkansas banking industry, this conference provides the opportunity to network, compare notes with those who have similar challenges and successes, and learn about management, leadership, industry issues and personal development. In its fourth year, this event has grown to nearly 150 attendees.

Who Attends: Women in banking on all levels, who want to increase their effectiveness and success on the job

2018 PROFESSIONAL DEVELOPMENT SNAPSHOTS

ABA MEGA CONFERENCE

Supervisor Bootcamp

FDIC Banker Outreach

Bank Security Hot Topics

LEADERSHIP CONFERENCE

TBD 2019 | Little Rock

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.

Who Attends: Bankers looking to expand their leadership skills and peer network

New Account Documentation

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ALL NEW: PROFESSIONAL DEVELOPMENT CENTER A big change has been building — literally — for ABA Professional Development events over the past year: new event space has been created in the lower level of the Arkansas Bankers Association office at 1220 West Third. This space will be the primary home for training events in 2019 and beyond.

The ABA has been housed in the building on the corner of Third and Pulaski Streets near the Arkansas State Capitol since 1993; the building had previously served as the Bill Clinton for President National Headquarters and underwent extensive renovations to include office space, a board room, and library.

The lower level has been rented out over the years to various organizations, most recently the Arkansas State Insurance Department. When the rental space became available and a new tenant was not immediately found, staff approached the Board of Directors with the idea of creating a training space, and the project was approved in early 2018.

“We offer more than 25 small to medium-size professional development events each year, so the Board’s investment in a dedicated space for those events will be a great benefit to our Association, and to individual bankers across the state,” said Kami Coleman, VP of Professional Development, who has been planning ABA events for nearly 15 years.

After a summer of jackhammers, grinders, and nail guns, (and a few staff headaches!) the renovation was complete. The Professional Development Center houses two meeting spaces: the larger room can hold up to 42 students, and the smaller space can be configured for board meetings or for smaller classes of up to 20 students. The larger room has a retractable screen, built-in projector, and audio capabilities; the smaller room is outfitted with two smaller wall-mounted screens with audio components. Both rooms feature “smart” tables with individual outlets so that bankers can charge laptops, tablets, or cell phones during professional development events, without having to leave their seats.

Pre-renovation

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In addition to training spaces, the Professional Development Center has an open lobby and reception area, restrooms, a kitchen, ample built-in storage, and buffet-style counters in the hallway for serving meals and snacks during events.

The first group to utilize the new training facility was the two-day IRA School in mid-October. The 40-person class was able to comfortably fit in the larger training space. The smaller space has been utilized for smaller groups, such as the ELS Council.

“So far, we have held three classes in the new Professional Development Center, and the response has been great,” Coleman said. “Having our own private space eliminates outside noise and distraction, gives us better options for catering, and still provides a long-term savings over renting hotel facilities for our seminars.”

Staff members are also excited to see more bankers coming into the ABA office.

“There is so much history housed here at the ABA, and it’s fun for our staff to show that off,” Coleman said. “And it’s also nice for bankers from across the state to get to meet staff members that they may not get to see otherwise.”

For out-of-town bankers that need to stay the night before or after events, the ABA has contracted with two hotels within easy driving distance to help with accommodations.

“Fittingly, the ABA Board of Directors held their final meeting of the year in the new training room in December. We were proud to host them in our new training space, and it was nice for them to see what they helped us accomplish – a stateof-the-art, comfortable meeting environment for our state’s bankers for many years to come,” Coleman said.

The ABA encourages member banks to utilize the new facilities as well. If you are hosting a regional meeting or retreat, please feel free to contact Kami at 501.978.3614 to reserve the space.

May 2018

June 2018

June 2018

July 2018

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GRADUATE SCHOOL OF BANKING PROGRAMS 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 2019 Session Dates: July 14-26, 2019 Website: www.gsbcolorado.org Contact: Josie Bunch, Director of Marketing

Graduate School of Banking at Colorado

Josie@GSBColorado.org 800.272.5138

Graduate School of Banking at LSU Location: Baton Rouge, Louisiana 2019 Session Dates: May 19-31, 2019 Website: www.gsblsu.org Contact: John Jordan, Executive Director john@gsblsu.org 255.766.8595

SW Graduate School of Banking at Southern Methodist University Location: Dallas, Texas 2019 Session Dates: May 27-June 6, 2019 Website: www.swgsb.org Contact: David Davis, Associate Director SWGSB Foundation

ddavis@mail.cox.smu.edu 214.768.2990

Stonier Graduate School of Banking Location: Philadelphia, Pennsylvania 2019 Session Dates: June 6-13, 2019 Website: www.abastonier.com Contact: Perette Bonner Stonier Program Director pbonner@aba.com

202.663.5411

Graduate School of Banking at the University of Wisconsin Location: Madison, Wisconsin 2019 Session Dates: April 17-12, 2019 (HR)

July 28-August 9, 2019 (General) Website: www.gsb.org Contact: Kathleen Berman Asst. Vice President, Marketing and Banker Relations kberman@gsb.org 800.755.6440

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Log on to www.arkbankers.org to apply for a 2019 GSB Scholarship today!

2019 GSB SCHOLARSHIPS AVAILABLE Prochnow Educational Foundation HR Management School Scholarship School: Graduate School of Banking at Wisconsin Session Dates: April 7-12, 2019 Deadline: February 28, 2019 Amount: $1,050 Details: GSB’s Human Resource Management School provides the foundation for new or veteran HR professionals to tie together important issues in HR management with an understanding of the business of banking. This is your opportunity to learn from respected industry experts about today’s key issues in HR management and how they relate to the bank’s bottom line profits.

Jeffrey & Diana Owen Scholarship for Emerging Community Bank Leaders School: Stonier Graduate School of Banking Session Dates: June 6-13, 2019 Deadline: March 1, 2019 Amount: $4,245 (member) or $5,245 (non-member)

for first year only Details: Stonier has provided executive education to more than 20,000 senior-level bankers and regulators, including some of the most respected banking executives in the U.S. The curriculum prepares today’s banking leaders for tomorrow’s opportunities by providing the nation’s premier executive education program.

GSBC Future Leaders Scholarship School: Graduate School of Banking at Colorado Session Dates: July 14-26, 2019 Deadline: March 1, 2019 Amount: $1,390 per year for up to

three consecutive years Details: The Graduate School of Banking at Colorado (GSBC) partners with the Arkansas Bankers Association each year to offer the GSBC Future Leaders Scholarship. Awarded to one banker per state, per year, recipients receive $1,360 per year for three years to attend GSBC’s Annual School Session, and must enter as a first-year student.

Graduate School of Banking at LSU Scholarship School: Graduate School of Banking at LSU Session Dates: May 19-31, 2019 Deadline: March 29, 2019 Amount: $4,145 for first year only Details: Over 15,000 executives have successfully completed the GSB program, held each spring on the LSU campus in Baton Rouge. The School’s purpose is to fill the need for graduate level study by bank officers and others meeting admission requirements leading toward a broader knowledge and understanding of major banking functions. .

SWGSB Millennium Scholarship School: SW Graduate School of Banking Session Dates: May 27-June 6, 2019 Deadline: March 30, 2019 Amount: $1,500 per year for up to

three consecutive years Details: The SW Graduate School of Banking (SWGSB) is the financial services industry’s best source for education, training and information – designed specifically for bank officers. 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.

Prochnow Educational Foundation & Arkansas Bankers Assoc. Scholarship School: Graduate School of Banking at Wisconsin Session Dates: July 28-August 9, 2019 Deadline: April 19, 2019 Amount: $1,500 per year for up to

three consecutive years Details: GSB’s Graduate School Program provides a comprehensive course of study of general banking and management subjects especially designed to meet the needs of bankers whose responsibilities and scope of activities are expanding. The school’s curriculum reflects the contemporary trends affecting the financial services industry. Core courses address broad areas of finance, marketing, management, and the environment in which banks operate.

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Continuing Education: A Great Investment

by John Jordan Graduate School of Banking at LSU

Benjamin Franklin once said, “An investment in knowledge pays the best interest.” Those of us who hold positions of leadership in the banking industry are products of the education system for bankers. Someone made an investment in our future by sending us to a state association school, an American Bankers Association school or a graduate school of banking.

Today’s young banker is asking you to make that same investment in them. Every survey about what motivates our young banking leaders has personal and professional development at or near the top of priorities. These surveys list the following priorities: Personal and professional development.

Compensation.

Flex time and PTO. Added responsibility opportunities and professional challenges.

Recognition and respect.

Enjoyable environment, co-workers and experiences.

to high school then finally to college or a graduate program.

For over sixteen years, we have been educational sponges, absorbing information from classes, lectures, and seminars on dozens of diverse topics.

We took so many classes which at the time seemed meaningless and boring. Depending on our personal interests, we were less than stimulated by English Literature, Geology, Calculus, or Economics. We believed these courses could never be applied to everyday life. Were you thrilled when you finished that last college paper? You thought, “I’ll never have to write an essay or go to school ever again!”

Of course, we were wrong. Upon entering the workforce, we realized that learning is even more important now than it was back in the dorm room days. We were in the workforce but lacked the skills to negotiate our first salary, present in front of a large crowd, or even how to budget and invest for the future.

So, we went back to the classroom. We discovered that learning something new not only helps the brain function more effectively, but improves focus, overall confidence, and self-esteem. It is also a great way to get social, meet new friends, and expand our professional network.

Because a major problem in business today is attracting and retaining talent, we must focus on all these priorities. The list is not long but it is very complicated and intensive. So, today’s article will only focus on the personal and professional development point.

Surely, this short trip down memory lane helps you to understand why personal and professional development is at or near the top of the motivators for young bankers. Now, let’s look at why continuing education helps the company as well as the individual.

First, let’s put ourselves into the shoes of the young banker.

When we hit our 20’s, it seems like we have spent our entire lives in a classroom. We slowly transitioned from grade school

The financial services industry is being shaped by many dynamic forces. These are the same forces that are affecting every industry today. Some of these are speed, technology,

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globalism, complexity, connectedness, uncertainty, risk, proximity and customization. How are we to keep up?

Let’s look at these within the context of three overriding themes-structure, reciprocity and trust. This will help us model the changes in financial services.

Structure - information delivery systems and communications tools will continue to evolve at an amazing pace. More people than ever will have access to financial services. Transactions will occur at an unimaginable speed across global distances. We will become more and more interconnected.

The importance of financial intermediaries may become diminished.

These changes bring not only new opportunities but new vulnerabilities. How do we mitigate the cyber-risks and market risks?

Reciprocity - banks enjoy certain public operating benefits.

These include deposit insurance and access to the Discount Window. Does “too big to fail” sound familiar? With these benefits come decisions and behaviors to heighten our regard for others. This is the element of reciprocity. Other industries do not have this safety net and not as much is expected from them.

Trust - keeping your word. Financial services are becoming more commoditized. Are we dealing more in products and less in relationships? Does that change the perceptions and realities of trustworthiness? How do we prevent more Wells Fargo type mistakes?

Finance is complex. It requires trust in the professionals who provide these services. We market ourselves as dealers in trust. We must meet the legitimate expectations of trustworthiness. People entrust the financial system with their hard-earned wages, their nest-eggs, and their children’s and grandchildren’s college tuition.

The future of the banking industry depends critically on keeping and restoring trust, reaffirming the reciprocal relationship of finance and society, and ensuring our structures are stable and resilient in the face of crisis. We must learn what the consumer wants not only in terms of commodities and services but also values and quality.

There are many skills needed to cope with this changing environment. At the top of my list is to have the knowledge and confidence to “spot an issue.” We need bankers who do not overlook warning signs, who have the ability to identify the risks and to speak up at the right time.

Bankers need the ability to resolve difficult situations caused by: conflicts in values, transitions in leadership, or interactions with regulators.

Ethical decision making must not be a stand-alone course but must be integrated into every course of study.

area for greater expertise. Regulatory changes create a need for learning. Compliance, capital and liquidity management and risk management are just a few areas of new emphasis.

Where can a banker find educational opportunities? As mentioned above, your state association is a wonderful firststep for the young banker. Your state banking school offers excellent basic education and gives the young banker the foundation needed to begin a great career.

The next level in the continuing education journey is a graduate school of banking. For over seventy years, the Graduate School of Banking at Louisiana State University (GSBLSU) has educated banking leaders. Over 16,000 bankers have graduated from this program and have led their banks ethically and profitably.

The curriculum at GSBLSU changes with the needs of the industry. Through consultation with faculty, students, alumni, state association leaders and many others, the school identifies the courses needed for leaders in the dynamic banking industry.

Ethical decision making has been identified as a major need.

To accommodate this, two new courses and a new case study have been added to the curriculum. The new courses and case study will both focus on ethical leadership with a specific focus on the unique aspects of the banking industry.

To further emphasize ethical leadership, the Keynote Speaker series is utilized to bring a nationally known expert in ethical leadership. This year’s keynote address will feature Tommy Spaulding, a New York Times best selling author, leadership expert, and nationally acclaimed speaker, for an inspirational discussion of how “heart-led leadership” is the key to personal and corporate success in the financial services industry.

Our faculty continue to teach courses that are foundational to the financial services industry. Some of these are capital and liquidity management, compliance and risk management.

Last year, we added a new course emphasizing the risks faced by banks due to new delivery methods. This course is Risk Management and Cybersecurity. Previously offered as an elective, the course is now a required Junior course with a required bank study project.

It is time to acknowledge the importance of the young banker to your organization. We must work to keep them engaged and informed. They deserve this attention and require it for retention in our organizations. Please consider sending them to your state association school or the Graduate School of Banking at Louisiana State University.

John Jordan is the Executive Director of the Graduate School of Banking at Louisiana State University in Baton Rouge, Louisiana.

There are many forces that create the need for continuing education. Cyber-security has already been mentioned as an January 2019

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Arkansas Bank Sparks

Student Savings at Stephens Elementary For a number of years, First Security Bank has been a partner in financial education with a number of Arkansas schools, offering $5 vouchers to help children open Kid’s Club savings accounts. In the fall of 2016, Andrea Hogan Lewis, the Community and Business Development/Marketing Officer, met an educator that would help catapult their program to a new level in one Little Rock elementary school.

Knowing that Lewis and her staff were interested in reaching out to area schools, Marsha Masters, Associate Director of Economics Arkansas, introduced her to the principal of Stephens Elementary School, Philip Carlock.

“When I saw the interest they both had in bringing financial education to these students, I knew that it could be a great partnership,” Masters said. “But I had no idea that it would grow to be all that it has turned out to be.”

Lewis refers to Stephens as a “hidden gem” in what is a poverty-stricken region of Little Rock. To give an idea of the area’s socioeconomic demographic, 100% of the students eat breakfast and lunch at no cost. In an area where children are in need of supplementary resources sits a school that has been outfitted with a barbershop, movie theater, health clinic, store, and arcade – wrap-around services provided not for extravagance, but in an effort to educate and empower youth.

According to Philip Carlock, the outside-the-box methods used at Stephens are in an effort to meet the needs of the whole student.

“I am inspired by the idea of using a backwards design approach to educating students. Our mission at Stephens is to

prepare safe, thoughtful, accountable and respectful life-long learners for college and career readiness. When I begin with the end in mind I can effectively design plans and set goals for my students,” he said.

“The community has really embraced our financial literacy program,” Carlock said. “The idea is to infuse students with financial literacy concepts at an early age. This exposure will hopefully break the cycle of poverty in many of our families and ultimately the community. Our partners understand that we are not only impacting student learning now, but we are investing in having financially sound citizens in the future.

They are excited and willing to lend support in a variety of ways.”

With that in mind, First Security and Stephens teamed up to add banking to the list of serviced offered on-site. A miniversion of the First Security teller line was constructed in the school and opened in January of 2017. Now, in tandem with First Security’s financial education programming, students have “bank day” once a month, when they can deposit any money they’ve received. The money is deposited into bank accounts that can continue to grow long after the students have left Stephens. First Security deposits the first $5 into the student’s account; students are then given incentives to continue adding to their nest eggs – such as Star Coins to be spent at one of the school’s other amenities.

Beyond the experience of saving, the program is teaching valuable customer service and math skills. The bank is staffed by fourth and fifth grade students, who go through an application process, interview, and are then trained by Lewis to handle basic transactions – from filling out deposit tickets

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and receipts, to making change and counting cash.

“The process is good for the students to see at an early age that you have to speak up, you have to be confident, you have to look a person in the eye,” Lewis said. “It’s teaching them confidence.”

Once the students are hired, they practice making deposits, and Lewis provides an outline of helpful procedures.

The program has now enrolled 54 Kid’s Club accounts at Stephens Elementary, with balances ranging from $5 to nearly $700. The school was recognized with a 2018 Bessie B. Moore Award for financial education from Economics Arkansas, and First Security has now opened a similar branch at David O. Dodd Elementary in south Little Rock.

“It has been a success; we’ve had a great response, and we’re still trying to grow,” Lewis said, noting one of the hurdles that they have come across. “We have to build confidence and trust because it’s a bank. A lot of people don’t trust putting their money in a bank. That’s a cycle that we want to break, starting with the youth. If you teach them at a young age that it’s important to save money, hopefully they will continue it through adulthood.”

If you ask their principal, the children at Stephens Elementary are off to a great start.

“I have seen students comfortable with discussing financial literacy concepts; students understand the importance of saving money. I have seen student engaged in financial planning and setting long and short term financial goals.

Students are able to perform jobs in the school that make many of the financial literacy concepts relevant,” Carlock said.

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Remembering William R. Holmes It is with a heavy heart that we mourn the loss of longtime friend to Arkansas bankers, former President & CEO William R. Holmes, who passed away Monday, December 17, at his home in Little Rock.

were predominately in the Trust and Wealth Management Divisions of the banks. From the early 1980s to 1990, Bill worked with Townes and Co., and Stephens Inc., as an investment banker working with banks and savings and loans in the Midwest.

Bill was known for his quick wit, mischievous smile, and his ability to connect with others. His knowledge of financial services and government policy was a complement to his big personality and strong work ethic. Together, Bill and his wife Rita traveled across the country serving as ambassadors for Arkansas bankers and were well-known throughout the banking community. He was an advisor, friend and confidant for many bankers and colleagues, and will be dearly missed.

Over the past few months, we have looked back over our time with Bill, to celebrate his friendship, mentorship, and dedication to the bankers of Arkansas; here are just a few of those memories:

Bill had been the president & CEO of the Arkansas Bankers Association since 2011. Prior to joining the ABA in 2004, he worked with several of central Arkansas banks including Twin City Bank, its successor, Mercantile Bank, and Metropolitan National Bank. Bill’s responsibilities

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Bill Holmes was one of those rare people who always made you feel good when you talked with him. He knew about your family and your interests. He did a marvelous job for the Association, first as our salesman, then as our CEO. He would never be offended to be called a salesman, but he was so much more.

He was an astute manager and politically knowledgeable. Most important of all, he was a

January 2019

proud and loving husband. He and Rita made a great team for the Association as we traveled. His smile will always be with me, and someday, hopefully not soon, he can show me the ropes again in a new home.

- Charles Blanchard ABA Chairman, 2011-12

Bill Holmes was a “Big Man,� not only in stature, but more importantly in heart, integrity, and his love for others. Not one to complain, even when dealing with his illness, Bill continued to be his jovial self and exhibiting his can-do attitude.

Bill loved the Arkansas Bankers Association, its staff and those he

came in contact when promoting the Association and its issues. He made sure that all positions were given a fair hearing, and had an unique gift of guiding discussions so that in the end a consensus was arrived at where everyone felt that their position prevailed.

Bill will be greatly missed, and Judy and I feel blessed to have had the opportunity to share many special times with he and Rita. Every time we see a colorful pair of socks or enjoy an evening of culinary excellence we will think of Bill and the special part he has played in our lives. We miss our friend Bill.

- Robert Taylor ABA Chairman, 2015-16

Bill Holmes was truly and unequivocally one of a kind. His “larger than life” personality and presence allowed you to know exactly when Bill entered the room. I can’t recall ever doubting or wondering as to his “position” on any particular matter, nor can I recall Bill

ever at loss for words. That was Bill. His quick wit was a gift unmatched by most anyone I’ve had the opportunity to encounter in nearly 50 years. Many stories and experiences come to mind when I think of Bill, but I think most relevant today is “who” he was and the “impact” of his life on others. The words above speak some as to “who” he was, as does the passion we’ve all seen that Bill shared for our industry and also, for life. That passion and his desire to succeed paid dividends for many of us, both professionally and personally. That desire to succeed was also acutely evident in his final fight of this life, and I never felt more respectful of him than during the courageous battle he waged with cancer. The enormous level of respect his peers across the country hold for him (and for Rita) today is testament to his significant impact on our industry and further evidence of his talent and passion.

Most importantly, Bill had a positive personal impact and was advisor and friend to many bankers and professionals across Arkansas and otherwise. He was one of a kind, and he is unforgettable. I am thankful for Bill Holmes. I am thankful for his leadership in our industry,

and his numerous relationships that were so impactful to many of our lives.

Mostly, I am thankful for his friendship, which I will dearly miss. We have lost a champion and leader in banking, and we have lost a friend. Nevertheless, his influence and substantial impact will live for years to come. Thank you, Bill.

- Sean Williams ABA Chairman, 2016-17

Memorie and I were fortunate to travel a good bit with Bill and Rita. Having been so many places, Bill was our personal trip advisor. He always knew the best places to eat and the sure not to miss sights! Memorie summed it up best “Bill was the perfect gentleman.”

- Dave Dickson ABA Chairman, 2017-18

Throughout the 14 years I worked with Bill, we road-tripped to banks together around the state; we Monday morning quarterbacked after each

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Razorback game (for better and worse) every season; I leaned on his expertise many times for advice for our banking events; enjoyed his always unique and delicious culinary treats and recipes, and loved the way he doted on my “Jack” as he took to calling my son after he was born. What will I miss about him? His endearing yet mischievous way of writing something quirky and always upside-down on all of our birthday cards each year; his attempts (and many successes) of scaring us girls around the office; discreetly giving money or work to any homeless person he encountered; his two-finger typing skills; gently “scolding” me (the resident office cat lady) for always feeding the stray cats around our building, yet never failing to call me over right away to look at any new kitten or cat that he saw outside of his Capitol-view office window knowing full well that I would be out there looking for them the first chance that I had. His “knock, knock, knock, knock, knock” pattern on the wall all the way down the hallway until he reached my office, “Anything fun or exciting today, ‘Kami’s’?” as he would often call me.

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home storms are coming.” He was a unique individual with his quirky sense of humor; I can truly say that I miss seeing that smile and humor each and every day.

He endured a long, tough, but courageous and stubborn battle with the devil of cancer, and we are now thankful to God for the relief of his pain and suffering. We shall continue to carry on as he would want us all to do. “Oh, horse hockeys, kiddo! Don’t worry about me, I’ll be fine,” I imagine him saying to me now.

His corny jokes, funny expressions and stories which always led to even more long-winded yet interesting stories - will always remain in my memories of Bill.

- Kami Coleman VP/Professional Development

There wasn’t a day that went by without Bill popping his head into my office wanting to know if I knew anything “fun or exciting.” If you ever visited the ABA office, he always took pride in showing you all the history the ABA stored, he call it the “10 minute tour.” I was the one in the office that was always worried when the weather was bad. Bill took great fun in whistling the tornado sound down the hall way and telling me “Carla Belle you better get

January 2019

- Carla “Belle” Brinkley VP/Controller

Bill was a truly great person with a giant personality to match. He genuinely cared about all of us at the ABA and would stop by our offices every day to see how we were doing, what we had on our plates, and to see if he could help. He made sure that we were all like family. He liked to hear updates about our kids and when my son Cooper would come by the office, Bill was sure to teach him a new prank or trick to pull.

We have a lot of fun memories of Bill so it is hard to narrow it down. One that always makes me laugh though is when he would type with his two index fingers. When he was done typing he would blow on one finger at a time pretending like they had smoke coming from them and with a big smile say ‘I’m the fastest two finger typer around these parts.’ He was always making

jokes or trying to see which one of us he could scare first thing in the morning. It was never dull for sure and he is greatly missed.

- Jessica Sahene Technology & Marketing Director

Bill was a wonderful teacher, mentor, and friend. In my time at the ABA we took several trips across Arkansas for Group Meetings or vendor promotions.

I can promise that Bill had a story about every town we drove through, many that I’ll never be able to share. He will always there for guidance, sarcastic remark, or to share a recipe. We will miss you Bill Holmes but the impact you made on our state and the ABA family will last for generations.

-Barry Jackson SVP & Chief Operating Officer

When I was asked to write a memory about Bill Holmes, I felt honored and even a little emotional. I pondered all the positive experiences I shared with him while working a few short years at Arkansas Bankers Association. I have

chosen to reflect on a time in 2015 when the snow was falling. I was working at my desk when a scraping noise was heard from behind me. I turned to see Bill Holmes, President and CEO, using a shovel and ice melting salt on the sidewalk. He was removing the snow and salting the sidewalk for the safety of this staff, aka his second family. He wanted to make sure we were safe as we entered the office. Sure, the sun would have melted this slushy mess, but Bill took pride in being the gentleman to insure our safety and well being.

do our jobs, but never let us forget what was most important. I remember one of his first lessons to me: “Your first job is to be a good mom, and a good wife.

This will always be here, but your family comes first.”

- Brenda Scarbrough Administrative Assistant

He always asked about my kids, and my girls adored him. Whenever he heard children’s voices in the office, Bill would be down the hall in a flash to say hello and offer up a piece of candy or a knickknack. I’ll never forget my daughter, a timid three-year-old at the time, seeing Bill in our lobby and running to jump into his arms and wrap him in a bear hug. The look that crossed his face was a mix of shock, joy, and pride.

Bill Holmes was ornery, he was a joker, and he was a good man. If I had to sum him up in one word, it would be “supportive.”

Bill pushed all of us to go a little farther — be a little better — professionally and personally.

He was my “work dad,” the person I could count on when I needed guidance, a pep talk, or just someone to listen. He empowered each of us to

Bill loved people. He would light up when I gave him an excuse to call a banker, or when we walked into a crowded room at Convention. Bill counted us — our staff and our bankers — among his family.

Thank you Bill, for passing that joy and pride along to all of us.

- Traci Logsdon Director of Communications

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BANKER NEWS & MOVES Stone Bank Names Veorster Internal Auditor

Gookin Earns National Trust Certification

Stone Bank has named Jacob Veorster as an internal auditor for its Little Rock office. Veorstar was formerly an associate auditor for the Arkansas Legislative Audit and has held banking positions with Arkansas Superior Federal Credit Union and the Bank of England. He is a graduate of the University of Arkansas at Monticello with degrees in accounting and business administration.

He is Certified Fraud Examiner (CFE). n

Lorre Gookin, vice president and senior trust officer at Centennial Bank, was recently awarded the Certified Trust & Financial Advisor (CTFA) professional certification from the American Bankers Association.

“Earning the CTFA certification validates Lorre’s experience and depth of education in the wealth management industry,” said Chris Thyer, Trust Department Manager.

The CTFA certification is awarded to individuals who demonstrate excellence in the field of wealth management and trust.

To qualify for the CTFA certification, individuals must have certain levels of experience and education in the trust profession, pass an exam and agree to abide by a code of ethics. The CTFA exam covers many areas including fiduciary and trust activities, financial planning, tax law and planning, investment management and ethics.

Gookin began her career in the wealth management industry as trust customer service account specialist.

She served as employee

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32 The Arkansas Banker

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January 2019

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benefits administrator and assistant trust officer before assuming the role of vice president and senior trust officer at Centennial Bank.

With nearly thirty years’ experience in all aspects of trust, Gookin currently serves as administrator for corporate trust, personal trust and investment management.

An alumna of Arkansas State University, Gookin earned a bachelor’s degree in business administration.

She ranked second in her Arkansas Bankers Association trust school class. She holds a Certified IRA Services Professional (CISP) designation as well as accident, health, sickness and life insurance licenses.

“

My decision to attend GSBLSU and commit to the three years of learning was one of the best choices I have made in my own personal and professional development.

”

Angie Lewis

Group Executive, Enterprise Risk Synovus® Bank Columbus, GA

Gookin is a member of the Jonesboro Regional Chamber of Commerce and Central Baptist Church.

Financial services professionals, working through ABA, initiated the CTFA certification and seven others in order to establish meaningful standards of knowledge in specialty areas of the financial services industry. ABA Professional Certifications formally recognize those who meet these standards and meet professional continuing education and development requirements. n

Matt Hicks Named Chief Credit Officer for Chambers Bank Matt Hicks has joined Chambers Bank as its Chief Credit Officer. Hicks has more than 14 years of experience in the financial services industry, most recently having served as a commercial lender and Fayetteville market leader at First National Bank NWA. After graduating from Arkansas State University in 2004, Hicks began his banking career at Liberty Bank in retail operations.

He later led the loan administration department at Liberty and served as Benton County market president for Centennial Bank. Hicks also served as commercial loan market manager for northwest Arkansas for Great Southern Bank.

“We are thrilled to add Matt to our Chambers Bank executive team,” executive

vice president J.R. Meeks said. “Matt’s breadth of experience in banking makes him uniquely qualified to lead our credit administration department.”

A native of Lawrence, Kansas, Hicks has made northwest Arkansas his home since 2006, where he gives of his time to improve the region’s quality of life. He serves on board for the Single Parent Scholarship Fund of Northwest Arkansas and was recognized as the Arkansas Single Parent Scholarship Fund Volunteer of the Month in March. He’s a past board member for the Children’s Safety Center, Students in Free Enterprise (now Enactus) at NorthWest Arkansas Community College, and Northwest Arkansas Emerging Leaders.

“Northwest Arkansas continues to be an important part of our growth strategy for Chambers Bank,” president Mike Donnell said.

“Not only does Matt possess the knowledge and skills to develop and manage our overall credit strategy to help grow the bank, his passion for helping others will help us to grow our Arkansas communities, as well.”

A graduate of Leadership Fayetteville, Hicks also holds an MBA from Harding University.

“I couldn’t be more excited to join the Chambers Bank team as chief credit officer,” Hicks said. “I have a tremendous amount of respect for the seasoned group of quality bankers leading the company and am thrilled to be a part of what promises to be a bright future.”n

Inman Named SVP/Manager Jason F. Tennant, President & Chief Lending Officer, Cornerstone Bank, has announced the appointment of Cindy Inman as Senior Vice President / Manager of the Cornerstone Home Mortgage division of the bank. Cindy joined Cornerstone Bank in July 2010 as a Vice President / Loan Officer. Cindy has over 20 years of banking experience, all in the Carroll County market.

her husband Danny. She has two children Ryan Epley of Berryville and Brenan Epley of Harrison. She is also the very proud grandmother to Sophee Epley. n

Milestones in Banking Nominations Being Accepted The Arkansas Bankers Association is proud of the 20,000+ men and women who serve the Arkansas banking industry. Those dedicated employees are responsible for forging the relationships that make our hometown banks and communities successful.

We would like to recognize those individuals who are celebrating their 40-year and 50-year anniversaries of service in our banks by honoring them with “Milestones in Banking” awards, sponsored by BKD. The honorees will receive their awards at a luncheon during the 2019 Annual Convention on Wednesday, April 17.

In 2017, the Cornerstone Home Mortgage division was formed with Cindy as the manager. Since that time, Cornerstone Home Mortgage has been a leader in home mortgage purchases in the markets that we serve.

Tennant stated, “We are very excited to have Cindy added to our executive management team. With her leadership and guidance, Cornerstone Home Mortgage will be one of the top mortgage companies in the area. This is a well-deserved promotion. Her experience and commitment to excellent client relationships is a tremendous asset for our bank. We feel blessed to have her on our bank team.”

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.

Inman is a graduate of Berryville High School and a member of the Berryville Chamber of Commerce. She has attended numerous educational conferences and classes in the mortgage industry. She attends the Grandview Baptist Church and resides in Berryville with January 2019

Nomination are online at arkbankers.org.

Nominations must be received by Friday, March 15, 2019. n

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BANKER NEWS & MOVES Arvest Bank Announces New Executive Positions Shepard, Andress Fill Roles Arvest Bank is pleased to announce Rodney Shepard and Laura Andress have been named to newly created positions that focus on the experiences of both its customers and associates.

Rodney Shepard, previously president and CEO for Arvest in Fort Smith and the River Valley, now serves as the Chief Customer Experience Officer (CXO). In his new role, Shepard will be responsible for maintaining a strong relationship between Arvest and its customers, and managing the overall day-to-day experience for customers and associates.

Specifically, he will work with management at all levels to maintain a consistent, customer-first mentality across the bank’s physical and digital channels.

Shepard has been with Arvest Bank for more than 25 years, and is being replaced as president and CEO in Fort Smith and the River Valley

by Roger Holroyd. Shepard earned an associate degree at Carl Albert Junior College, a bachelor’s degree in management at Northeastern State University, and a master’s degree in business administration from Webster University. Additionally, he is a graduate of the Graduate School of Banking at LSU and the Mid South School of Banking at Christian Brothers University.

Shepard is a member of the board of directors for Mercy Health Fort Smith Communities, the University of Arkansas – Fort Smith Foundation, the Fort Smith Boys and Girls Club, and also serves on the Community Bankers Council for the American Bankers Association. Among other civic endeavors, he is a past chairman of the board for the Fort Smith Regional Chamber of Commerce, has worked on behalf of the United Way, the Fort Smith Riverfront Blues Society, the Single Parent Scholarship Fund, and was presented the Carl Albert State College Distinguished Alumni Award in 2006.

Shepard and his wife Lisa, live in Fort Smith and have two children.

Laura Andress, currently executive director of group human resources, assumed the title of Chief People Officer (CPO). Among other duties, Andress will be responsible for developing and executing a human resource plan of action in support of Arvest’s strategic direction. Andress will work specifically in the areas of succession planning, talent management, organizational and performance

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management, training and development, benefits and compensation, and associate communication.

Andress joined Arvest in 2004 – following 13 years as an attorney and partner at a Fayetteville law firm – to become director of group human resources. She earned both a bachelor’s degree n

January 2019

in psychology and a law degree at the University of Arkansas. During her time as an attorney, Andress was licensed by the United States District Court for the Eastern District of Arkansas, the United States District Court for the Western District of Arkansas, and the United States Court of Appeals for the Eighth Circuit.

As director and executive director of human resources at Arvest, Andress has been charged with managing risk and building programs to develop talent and increase communication and associate engagement across the organizational footprint.

Andress lives in Springdale and has two children. n

Grand Savings Bank Welcomes Jackie Serrano Grand Savings Bank is pleased to announce the hiring of their new Retail Training Coordinator, Jacqueline “Jackie” Serrano.

Jackie brings a diverse history as a financial services trainer to GSB. Drawn early in her career to helping others develop skills that positively impact customers and community, she started her career as a teller but soon decided her talents would best serve others as a trainer.

As a Training Specialist and lead FSR Trainer, Jackie has coached colleagues on a variety of initiatives that included diversity and cultural education.

A long-time resident of NWA, Jackie graduated from the University of Arkansas

with a Bachelors of Arts in Communications and has earned recognition for her work as a cultural ambassador. She is a member of the Junior League of Northwest Arkansas and has most recently completed her first Financial Peace University course. Jackie, along with her husband, volunteers as a Financial Peace Coordinator to train people to navigate financial struggles in order to pay off debt and set aside money for emergencies. Jackie will begin work on her Master’s degree in Design Thinking & Innovation at JBU this spring.

“Jackie’s enthusiasm and commitment to serving the internal customer fit perfectly with Grand Savings Bank’s promise to provide the very best financial experience to our customers and community, and we are excited to have her on board” Dale Ford, Retail Operations Officer. n

Grand Savings Bank Kicks off New Year with Promotions Grand Savings Bank is pleased to announce the promotion of two members of its senior management team. Natalie Bartholomew and Dale Ford will take on new leadership roles in the coming year.

Natalie Bartholomew, who has served as GSB’s Chief Marketing Officer for the last two years, will take on the role of Chief Administrative Officer, guiding Grand Savings Bank’s Marketing,

Human Resources, and Strategic Planning Initiatives.

A proven leader across multiple domains within the banking industry for almost two decades, Bartholomew’s exceptional professional and volunteer service have earned her a number of prestigious recognitions including the NWA Business Journal’s 40 Under 40 and Women in Business lists, Harland Clarke’s Women in Banking to Watch List, and the NWA Business Women’s Conference Young Woman of the Year award. Author and owner of The Girl Banker Blog, Bartholomew has gained a national following, has been featured in numerous industry journals, and is a highly sought-after panelist and speaker across the country.

Dale Ford, an 11-year banking veteran and former Vice President, Deposit Training Coordinator, will lead GSB’s retail business as our new Retail Banking Officer.

Overseeing retail products and services designed to meet the needs of our retail customers, he will also lead the development and implementation of our new training department.

A passionate advocate for NWA business, Ford is a member of the Bentonville Chamber of Commerce Small Business Council, a longtime volunteer for Main Street Rogers, and has worked with students as Chair of a local student banking board. Ford

attended both Northwest Arkansas Community College and the University of Arkansas. n

Laci Tennant Promoted to Deposit Services Branch Manager Donna Parton, Senior Vice President / Chief Operations Officer, Cornerstone Bank, has announced the promotion of Laci Tennant to Deposit Services Manager/ Branch Manager.

She will be responsible for the oversight of the deposit services and daily operation of the Berryville facility. She will also lead the Berryville

January 2019

market’s sales efforts as it relates to growing deposits and market share.

Parton stated, “It is always exciting to announce the elevation of key people within our departments.

Laci’s commitment to an exceptional level of personal service within a true community bank environment is welcomed by our institution and as well as our client base.”

Tennant is a lifelong resident of Carroll County, having graduated from Alpena High School. She is working on her degree in Business Administration and Office Management. She currently resides in Berryville with her husband Drew and son, Owen. n

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ABA Conference FOR Community Bankers February 10-13, 2019 Hilton San Diego Bayfront

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