President’s Column

Our persistent advocacy, along with our close alliance with the American Bankers Association and the 52 other state associations, produced some tangible successes with our regulators and with Congress last year. With your efforts and assistance we were able to help our banks compete more effectively and to save money. Reg Relief was, and is, an everyday topic of conversation with both regulators and legislators. In the very last days of the 113th Congress, HR3329 was passed. This bill will help hundreds of our hometown banks by increasing the Fed’s “small bank holding company” threshold from $500 million to $1 billion. Also in that last-minute push the spending bill had a provision that will allow banks to conduct more swaps in the bank, rather than through an affiliate, enabling banks to offer family farmers a one-stop banking experience. Earlier in the year, our hard work was rewarded when the regulators finalized the risk retention rules. This rule aligned the QRM standard with CFPB’s QM standard, removing the 20 percent down payment requirement. There were other mortgage rule improvements that eased our liability risks and regulatory burdens, including rules on QM thresholds, a cure period for certain errors and the creation of a smallservicer QM exemption. Let’s not forget early last year when the AmBA sued the federal banking regulators on the Volker Rule’s treatment of CDO backed by community banks’ trust preferred securities. It produced a change to the rule that saved banks millions in write-downs. Looking forward, there are several measures to further reduce the Reg burden positioned for action in the upcoming 114th Congress. The House has passed bills to eliminate annual privacy notices for institutions that haven’t changed privacy practices, clarifies the CFPB’s points-and-fees test, exempts CLOs from the Volker Rule and one to provide a process to appeal the CFPB’s rural or underserved designation. Two other bills cleared a House committee: one Taking a Look Back at 2014...

PRESIDENT & CEO BILL HOLMES

BILL HOLMES President/CEO 501.978.3602 | bill.holmes@arkbankers.org ABA STAFF

CARLA BRINKLEY VP/Controller 501.978.3608 | carla.brinkley@arkbankers.org

AVA FRANKS VP/Director of Government Relations 501.978.3606 | ava.franks@arkbankers.org

JESSICA SAHENE Marketing Coordinator 501.978.3609 | jessica.sahene@arkbankers.org

STUART THALHEIMER Executive Assistant 501.978.3605 | stuart.thalheimer@arkbankers.org

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

KAMI TAYLOR COLEMAN VP/Professional Development 501.978.3614 | kami.coleman@arkbankers.org

TRACI LOGSDON Director of Communications 501.978.3603 | traci.logsdon@arkbankers.org

TERRI KELLY Professional Development Coordinator 501.978.3607 | terri.kelly@arkbankers.org

BRENDA SCARBROUGH Administrative Assistant 501.978.3600 | brenda.scarbrough@arkbankers.org

would provide escrow and servicing rules exemptions for small mortgage lenders and servicers, and the other says that portfolio mortgage loans are QM-qualified. Bankers were also very influential in focusing Congress’ attention on the unintended consequences of the BiggertWaters flood insurance reform law. Legislation to correct these issues, including affordable premiums and escrow reforms, was signed into law in March. Works in progress include our request to have oversight hearings and a tightened rein on the Farm Credit System, a review of the tax-exempt status of the largest credit unions and an endeavor to have a voice in the reshaping of the GSEs to ensure equitable access to the secondary market for lenders of all sizes. I have renewed optimism for the banking industry. I know that the folks in our communities, our local elected officials, and yes, even a lot of our regulators, realize that our hometown banks are the very core of what makes the economy work. They have seen again the importance of local lending decisions that spur the growth of small business and feed the economic engines of our states and country. Your support is what makes all of this advocacy work. Thanks for all of your help and efforts, and let’s keep it up. May 2015 be a prosperous year for you and yours.

Who do you know? Who do you know? A legislator? Let’s work together to give our Arkansas Legislators a direct contact in the banking industry! ABA Direct Contact Bankers are bankers who have an existing relationship with one or more members of the Legislature. If you are a personal friend of a legislator, belong to the same civic club or church, have a banking relationship with a legislator, or would simply like to get to know your legislator better, you are needed for the ABA Direct Contact Banker Program! Please sign up as a Direct Contact Banker, and then encourage other employees in your bank who have developed relationships with their state senator to sign up as well. These personal contacts supplement the opinion of our industry and provide members of the Arkansas Legislature with information about the effects of various proposals on their constituents. This program is designed to have bankers serve as contacts for each and every member of our Legislature. So, who do you know? For more information, call or email Ava Franks, VP/Director of Government Relations today! Ava Franks ava.franks@arkbankers.org 501.978.3603

CHUCK MORGAN | CHAIRMAN Relyance Bank, Pine Bluff ROBERT Y. TAYLOR | CHAIRMAN-ELECT Parkway Bank, Rogers ABA EXECUTIVE COMMITTEE

MARK FERGUSON | TREASURER First Security Bancorp, Little Rock

DAVID BARTLETT | PAST CHAIRMAN Simmons First National Corp., Little Rock

MARY BETH BROOKS | GROUP 3 The Bank of Fayetteville, Fayetteville DREW HARPER | GROUP 2 Bank of the Ozarks, Little Rock ABA BOARD OF DIRECTORS

DAVY CARTER | GROUP 1 Centennial Bank, Jonesboro

DAVE DICKSON | GROUP 5 Union Bank & Trust Co., Monticello

ELIZABETH FARRIS | GROUP 4 Regions Bank, Hot Springs

CURTIS GENTRY | GROUP 1 First National Bank of Eastern AR, Forrest City

JON HARRELL | GROUP 3 First Bank, Rogers

CHARLES HORTON | GROUP 1 Fidelity Bank, West Memphis

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

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

SEAN WILLIAMS | VICE CHAIRMAN First National Bank of Wynne, Wynne

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

CATHERINE OWEN | GROUP 2 Eagle Bank, Little Rock

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

MIKE SMITH | GROUP 5 McGehee Bank, McGehee

SUSIE SMITH | GROUP 2 Simmons Bank, Little Rock

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville