The Arkansas Banker May 2018

May 2018

The

Security

Issue Volume CI, No. 5

ABA PROFESSIONAL DEVELOPMENT

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

JUNE 2018 CyberSecurity Road Show

CyberSecurity Road Show

June 19, 2018 Centennial Bank, Jonesboro Who should attend: Information Security Officers, Compliance Officers, Information Technology Staff, Directors, Presidents, Vice Presidents, Auditors, and Board of Directors.

June 21, 2018 Legacy National Bank, Springdale Who should attend: Information Security Officers, Compliance Officers, Information Technology Staff, Directors, Presidents, Vice Presidents, Auditors, and Board of Directors.

CyberSecurity Road Show June 20, 2018 ABA Office, Little Rock Who should attend: Information Security Officers, Compliance Officers, Information Technology Staff, Directors, Presidents, Vice Presidents, Auditors, and Board of Directors.

JULY

16-17 Branch Management Series

AUGUST

14

Bank Security Hot Topics

13

22

Opening New Accounts

18

SEPTEMBER ELS Day at the Capitol

Loan Assistants & Processors Workshop

18-19 Supervisor Boot Camp 25-26 Mega Conference

OCTOBER

9 Advanced BSA Brush-Up

NOVEMBER

13-14 Call Report Preparation

10 Bank Directors Workshop II 16-17 IRA School For more information about ABA Live Events, log on to www.arkbankers.org or call 501.376.3741.

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Save The Date!

May 2018 COLUMNS

Volume CI, No. 5 President’s Message

4

Bill Holmes

Chairman’s Column Cathy Owen

Washington Update

8

Rob Nichols

Emerging Leaders Update

9

John Thomas Anderson

5 Minutes with Dena Wright 7

DEPARTMENTS

THE SECURIT Y ISSUE

6

Millennial Minute with Means Wilkinson

13

Member News

28

Professional Development Live Events 2 Webinars 5 Commercial Lending School Grads 26 GSB Scholarship Winner 26

Banker News & Moves

32

The Arkansas Banker Online

10

2018 Spring GR Summit: Moving in the Right Direction

16

How to Manage Your Information Security Program

12

14

Security and the Architect: Unlikely Teammates

Bank Security & Fraud Outreach

13

Tips to Prevent Crimes at ATMs

by Barry Thompson

18

19

What Is the Bank Secrecy Act, and Why Does It Exist?

by Jon Waldman

Crime Time: Bank Robbery & Burglary Statistics

by Julie Stackhouse

20 Counting Chicken House

24

Projects: They Won’t Hatch Without SBA

by Brooksher Banks

Arkansas Banks Come Together to Teach Children to Save

22 Arkansas Bank

Creates a “Mob” to Support Local Businesses

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

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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May 2018

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Wachovia, National City and other major banks. In all there were more than 500 banks that failed in the first five years and many more who were merged or acquired after that because of financial distress. In these last ten years the number of banks has declined by roughly one-third. There were 8,550 banks and 8,100 credit unions in 2007; as of today there is 5,700+ of each institution. The crisis and recession have produced a more concentrated, and stronger, banking industry. Operating efficiencies and an improving economy have returned the surviving banks to pre-crisis profitability.

PRESIDENT’S MESSAGE

10 Years Ago This Month...

According to the recently released study by the FDIC, Crisis and Response: An FDIC History, 20082013, the main causes were the housing boom and bust of the mid 2000s; and partly, the innovative products that linked U.S. homebuyers with financial firms and investors around the globe.

% Change 06/07- 06/17 150

100

50

PERCENTAGE

There is a general agreement that in June of 2008 we were confronted with what turned out to be the most severe financial crisis since “The Great Depression of ‘29.” Our financial crisis then turned in to a prolonged great recession that effected the global economy.

Arkansas National 0 Banks

Assets

Total Equity Capital

Total Deposits

# of EEs

-50

-100

Our industry has changed greatly in the last ten years. We have seen the demise of IndyMac, Wachovia, National City, and other major banks. In all, there were more than 500 banks that failed Community to be after particularly resilient. loans are at the lowest levels since in the first five years, and many more who werebankers mergedproved or acquired that because of Non-current financial 2007 and there is only about 100 banks on the FDIC Troubled Bank list.

Record earnings of $48 billion distress. were recorded and are at the highest levels since 2007. Large banks have substantially more capital and In these last ten years, the number of banks has declined by roughly one-third. There were 8,550 liquidity than pre-crisis days. Business is good and looks to be getting better. We have to remember the banks and 8,100 credit unions in 2007; as of today there are 5,700+ of each type of institution. learned just short tenbanking years ago.

We could see sustained interest rate increases, tighter The crisis and recession produced ahard morelessons concentrated, andastronger, industry.

Operating efficiencies and an improving economy have returned the surviving banks to pre-crisis profitability.

Community bankers have proven to be particularly resilient. Non-current loans are at the lowest levels since 2007 and there are only about 100 banks on the FDIC Troubled Bank list. Earnings of $48 billion were recorded and are at the highest levels since 2007. Large banks have substantially more capital and liquidity than pre-crisis days. Business is good, and looks to be getting better.

We have learned how quickly good can go to bad, and we have to always remember that. We could see sustained interest rate increases, tighter credit markets and more competition for deposits and loans; these risks along with fintech firms and cybersecurity events should keep us on our toes.

Our banks and bankers led the way in the crisis and provided a safe and sound industry that preserved and grew the nation’s economy. As bankers, keeping our communities safe and sound is our mission; remembering the hard lessons learned just ten short years ago will be the key in achieving that goal.

Bill Holmes | President & CEO Arkansas Bankers Association

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ABA PROFESSIONAL DEVELOPMENT

JUNE/JULY 2018 Monday, June 4

Using Personal Tax Returns for Global Cashflow 1:30 p.m. – 3:30 p.m.

Tuesday, June 5

Call Center Representative Training 10:00 a.m. – 12:00 p.m.

Wednesday, June 6

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

Basics of Real Estate Loan Documentation 1:30 p.m. – 3:30 p.m.

Thursday, June 7

25 Baseline Controls Banks Struggle to Implement 10:00 a.m. – 12:00 p.m.

Signature Card Danger Zones 1:30 p.m. – 3:30 p.m.

Monday, June 11

CRA- A Law or a Game 1:30 p.m. – 3:30 p.m.

Tuesday, June 12

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

WEBINARS

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

Wednesday, June 13 Excel Explained: Pivot Tables 101 1:30 p.m. – 3:30 p.m.

Thursday, June 14

Limited Liability Companies: Do’s and Don’ts 1:30 p.m. – 3:30 p.m.

Monday, June 18

Quarterly Compliance Briefing: Summer 2018 1:30 p.m. – 3:30 p.m.

Monday, June 25

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

Tuesday, June 26

Basic Cash Flow Analysis 10:00 a.m. – 12:00 p.m.

Commercial Real Estate Lending: Property Types & More 1:30 p.m. – 3:30 p.m.

Thursday, June 28 Tuesday, June 19

Notary Public 10:00 a.m. – 12:00 p.m.

RESPA – Those Pesky Section 8 Violations 1:30 p.m. – 3:30 p.m.

Wednesday, June 20

BSA Series: 10 Examination Hot Spots 1:30 p.m. – 3:30 p.m.

Thursday, June 21

10 Overdraft Privilege Hotspots Including Regulations, Lawsuits & Guidance 1:30 p.m. – 3:30 p.m.

30 Important Steps to Properly Audit Your Safe Deposit Dept.

10:00 a.m. – 12:00 p.m.

Alert! Reg CC Changes Go Into Effect in July-Are You Ready?

1:30 p.m. – 3:30 p.m.

Wednesday, July 11 Flood Insurance: Compliance Issues 10:00 a.m. – 12:00 p.m.

Thursday, July 12

Business Writing for Financial Professionals 1:30 p.m. – 3:30 p.m.

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

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CHAIRMAN’S COLUMN Building a Culture of Security

ABA OFFICERS

Today, when “security” and “bank” are mentioned in the same sentence, we often immediately think of cybersecurity. But, the term “security” encompasses a very broad gamut of items, including everything from personal and physical security, police security, military security, to Information Security.

Cathy Owen, Chairman

Proper security measures taken in banks do not happen by accident.

Bankers understand the need to perform security risk assessments, to be able to properly address the levels of protection of both the physical and technological aspects of our banks. After proper analysis, bank security programs and procedures should be reduced to writing and steps implemented for appropriate regular monitoring. Fortunately, there are many security industry experts and service providers to help banks who do not have this expertise on staff.

Security is a continual process and must take into consideration the many aspects of areas within our banks. The threats are constantly changing, which in turn require an ongoing process of reviews and updates, better known as vulnerability management. It is imperative for us to carefully listen, when a vulnerability is brought to our attention, evaluate the concern and properly address it in a timely manner.

We also need to remember that security extends beyond our buildings.

Reasonable policies should be implemented for the handling of information and documents that are en route to and from bank locations and customers. We must consider the secure storage and disposal of sensitive data. Banks must also verify third-party providers have implemented proper security measures and their on-going compliance.

It is easy to become complacent with security; however, none of us can afford to do so, as there isn’t anything more important than the safety and protection of our staff, customers, and the assets we are entrusted to protect. Building a culture of security throughout our organization is vital to our banks and our industry.

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

Bill Holmes, 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

5 MINUTES WITH

DENA WRIGHT

BSA Compliance Officer of Diamond Bank in Glenwood was estimated to reduce payment systems costs by $1.37 billion.

Diamond Bank implemented a check image solution in 1998 and I can still remember what a difficult change it was for some of our customers. They could not adjust to the idea of not receiving paper checks in their statement. Check writing continues to decrease as electronic payment trends continue to evolve. In fact, a Washington Post article noted that writing checks has become a lost art of sorts. As the number of checks written over the past ten years has declined, the number of Google searches for “how to write a check” has actually increased nearly five-fold.

Give us a little background on yourself: I was born in Camden, the seventh child of eight. I have always attributed my ability to argue a point and freely share my opinion, to being raised in a house with eight children.

I have been married to my better half, Steve, for 40 years this November and we have a wonderful daughter, Stephanie. The other member of our family is a very spoiled pit-bull named Saber Sue. I started my banking career in 1975 at Worthen Bank in Little Rock, in the CIF department and one of my responsibilities included entering new accounts into the ‘brand new’ computer. The signature cards were stored in alphabetic order in large tubs, like a rolodex. We would press a letter and it would spin around to the section for that letter. Technology has come a long way in 43 years.

I moved to Glenwood and Diamond Bank (formerly Arkansas Diamond Bank) in 1990, as a drive thru Teller/Proof Operator. In 2010, I accepted a position as Operations Manager and in 2012, I accepted the position of BSA Compliance Officer. It is challenging at times, but I appreciate the opportunity the Bainum family has given me and enjoy working with the other Operations Department employees. It always makes your job easier to have hardworking, dedicated, loyal employees working along beside you.

What do you feel is the most overlooked security issue that banks face today?

It seems trivial, compared to the countless security risks banks face today, but I personally feel that sharing password information is a huge risk to the bank, as well as, the customer. We try to educate our employees and customers about using best security practices when selecting and storing their passwords. Unfortunately, research has proven that people use the same password for multiple accounts, which can create a huge identify theft risk, if that password is compromised.

What is the best part of being a hometown banker?

The theme song from Cheers sums it up rather well: “Sometimes you want to go where everybody knows your name, and they’re always glad you came.” I think when you walk in your bank, no matter the location or size, you should see a friendly face and someone should greet you and call you by name. That is the biggest difference of working for a hometown bank.

What habit do you have now that you wish you had started much earlier?

As we get older, I think we all become wiser, so there are many habits I have now, that I wish I would have started years earlier.

One of mine, is a daily devotional book. I read a verse each morning before starting the day and will read it again several times throughout the day. The distraction of life can take away your joy, if you let it, but this scripture reading seems to help keep me positive, focused and thankful.

My responsibilities as BSA Officer exploded after the rules and regulation changes following September 11, 2001. It is a stimulating and interesting role within the bank, and is always changing. The new Beneficial Ownership regulation has been extremely difficult to implement. It has been a struggle to make the changes, in addition to making certain our employees are carefully trained to meet all of the new requirements.

Over the course of your career, what is the biggest shift you’ve seen in banking?

The biggest shift I have seen in banking was the passing of the Check 21 Act, which allowed banks to use electronic images of checks. In a study completed by Federal Reserve in 2010, Check 21 and the associated reduction of collection and float times,

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WASHINGTON UPDATE New Tools to Tell the Story of America’s Banks One of the reasons the banking industry is seeing an improved policy environment in Washington is because bankers have spent the last few years telling their stories.

They didn’t ask for regulatory relief because they were tired of red tape (even though they undoubtedly are).

They asked for regulatory reform because rules were making it hard for their banks to make good loans to creditworthy customers and were diverting resources that could be better spent helping their communities thrive.

Those stories – of how a perhaps well-intentioned but poorly executed provision in law was harming the people it was supposed to help – have made a difference.

AmBA, too, has been telling bankers’ story. We started our reputational campaign a couple years ago with a special website — aba.com/AmericasBanks — that offered data illustrating the role banks play in their communities and the economy. In April, we took our efforts up several notches with a reimagined site that really brings that data to life.

Visit aba.com/AmericasBanks and you’ll find not only national statistics on how much banks have lent to small businesses, farms, homeowners and state and local governments, but also — for the first time — an interactive map that allows you to see banks’ economic impact by state. Data points include jobs, branch/office locations, mortgage, small business and small farm loans; customers and volunteer hours donated.

You’ll also find anecdotes, photos and videos – most submitted by banks – that show what their retail and business customers value most in them. Such customer testimonials include praise for a bank’s mobile app, the support provided following a hurricane and the guidance that helped one couple buy their first home. As one customer put it when describing his raspberry farm’s decades-long relationship with a local bank, “it’s super important to have a bank that understands the business, understands community, understands what we’re doing, our challenges and that Mother Nature plays a big role.”

Still more stories demonstrate banks’ commitment to local nonprofits and revitalizing a local neighborhood, and spotlight ways bank employees have gone above-and-beyond for their customers, including one who checked up on an elderly customer daily — including weekends and holidays — for more than 10 years.

One must-see video on the site (under “Helping Communities”) is a special eight-minute documentary ABA produced that demonstrates how three banks of very different sizes, all on one city block, collectively drive growth and renewal in downtown Denver. The focus is Denver – but it’s a story playing out in countless communities across America, providing a visual illustration of how bankers support the activities and growth of manufacturers, property developers, service businesses, nonprofits and others as those companies and organizations drive employment and opportunity in the city.

What you find on the America’s Banks site is just the beginning. We have more material we’ll be rotating in later, and we hope you’ll help us keep the content fresh by sending similar videos, photos, customer testimonials or employee stories to AmericasBanks@aba.com.

We also ask that you help us amplify the good news by sharing the site far and wide. For help in doing this, please download our social media guide at aba.com/AmericasBanksGuide.

By amplifying the story of America’s banks, you can help policymakers and the public better understand how banks deliver jobs, growth, safety and convenience.

Rob Nichols

President & CEO, American Bankers Association

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© 2018 American Bankers Association. All rights reserved. Reprinted with permission.

EMERGING LEADERS UPDATE ELS OFFICERS

Got Prime?

John Thomas Anderson, President

As most of us know, Amazon has now infiltrated our lives in numerous ways in their attempt to be everything to everyone — many of which make our lives more convenient, but for brick and mortar stores and maybe even banks it’s becoming a complicated relationship.

Malvern National Bank, Little Rock

George Purvis, Vice President

Cornerstone Bank, Eureka Springs

Evelyn Morris, Treasurer

First Financial Bank, El Dorado

ELS COUNCIL Eduardo Abril, DeQueen Natalie Bartholomew, Rogers Ralph Bradbury, Little Rock J.D. Chambliss, Rogers Robert Hargis, Monticello Camron Hurst, Rison Blake Johnson, Jonesboro David Johnson, Trumann Bryce Larry, Rogers James Lyle, McGehee Ryan Moore, Jonesboro Rachael Potter, Texarkana Sandy Starnes, Batesville

Amazon is arguably the biggest deal in the online retail world and is a huge player in the media market as well. Amazon has acquired several companies including Whole Foods, Zappos, and Goodreads in the last few years. It has been reported that Amazon achieved twelve-month net sales of $177.8 billion in 2017.

As an Amazon Prime subscriber myself, it’s hard to argue with the fact that the convenience factor is pretty amazing. When we can’t find what we need at a local retailer, and we need it fast, it’s the way to go. Amazon Prime offers movies and shows to members, and of course, an Amazon credit card with perks.

Not only does the giant offer everything under the sun for purchase and make payment options easy, apparently they are also getting into lending. The Financial Brand states, “In June 2017, Amazon said that its lending service surpassed $3 billion in loans to small businesses since it was launched in 2011. Over 20,000 small businesses in the U.S., U.K. and Japan that participate in the Amazon marketplace have received loans, and Amazon says that ‘more around half of them end up taking a second loan.’”

Amazon is clearly dabbling in providing loans to small business customers.

How could all this affect banking? Well, there has been chatter that Amazon is already in talks with some large banks about creating an Amazon checking account.

According to The Financial Brand, “In a survey of more than 133,000 banking customers in 22 countries, consumers said they trust Amazon and PayPal with their money nearly as much as their banking provider.”

The banking industry will clearly have to stay on top of remaining competitive in our modern, convenience-driven society. How serious of a threat could Amazon be to banks in the future? Only time will tell, but it is definitely something we should be primed and ready for.

What is the Emerging Leaders Section?

The Emerging Leaders Section (ELS) was organized by the Arkansas Bankers Association Board of Directors to provide information concerning educational opportunities available for its members. The ELS was established to provide leadership training for young bankers, to enhance banking careers, offer its members the opportunity to learn, network, and be productive members of the banking profession.

Call Kami at 501.978.3614 to get involved!

John Thomas Anderson | ELS President

VP/ Commercial Loans, Malvern National Bank, Little Rock

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GOVERNMENT RELATIONS

2018 Spring GR Summit: Moving in the Right Direction More than 1,300 bankers descended on Capitol Hill Tuesday, April 24, as part of American Bankers Association’s annual GR Summit. This conference is held in Washington D.C. every spring as state associations from across the nation bring member bankers to strategize with AmBA staff, gain insight from federal regulators, and sit down with their respective federal delegations.

Our message for 2018 was clear, we want S. 2155 to pass immediately.

James Ballentine, AmBA Executive Vice President of Congressional Relations and Political Affairs, explained in his opening remarks how being in Washington as a collective of bankers helps push S. 2155. The Economic Growth, Regulatory Relief, and Consumer Protection Act. S. 2155 provides relief in a variety of different ways, including language from several bills the House already passed. This bill passed the Senate and now sits in the House awaiting movement. Ballentine explained the importance of banker stories, and their impact in shaping the language of regulatory relief legislation such as S. 2155. He said not only are concrete examples of overregulation from bankers utilized in bill drafting, but they are used by senators as they testify on the floor during deliberation.

Ballentine was one of several speakers the group heard on Tuesday.

Congressman Blaine Luetkemeyer (R-MO) participated in a panel, during which Ballentine pressed for a time frame for S. 2155 to pass; “hopefully before fall” was the response, noting “we’re going to work hard to make sure [the S. 2155 regulatory reform measure] gets through.” Attendees also heard from Mick Mulvaney, the Director of the Consumer Financial Protection Bureau, who explained he is bringing the agency’s activities within its statutory boundaries, including changing the

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3 2

4

1. AmBA’s Rob Nichols and Comptroller of the Currency Joe Otting take the stage at the 2018 GR Summit.

2. Arkansas bankers meet with Congressman French Hill.

3. ABA Chairman Cathy Owen shares a laugh with Representative Bruce Westerman.

4. Barry Jackson, Bruce Maloch, Dave Dickson, Cathy Owen, Representative Bruce Westerman, Don Walker, Ava F. Roberts, and Randy Rawls.

5. Barry Jackson, Randy Rawls, Bruce Maloch, Ava F. Roberts, Don Walker, Representative Steve Womack, Cathy Owen, and Dave Dickson.

agency name to the Dodd-Frank Act mandated Bureau of Consumer Financial Protection.

Arkansas bankers spent Tuesday afternoon visiting Capitol Hill to push S. 2155 and discuss other regulatory relief potential. Congressman French Hill said S. 2155 should be addressed

by August. From CRA to data security, our conversations covered subjects at

the forefront of many Arkansas bankers’ minds. Each member of our federal delegation was interested and engaged in our worries and offered thoughtful consideration for reform; we are moving in the right direction for regulatory reform that touches many aspects of banking. Discussions such as these greatly benefit the Arkansas banking industry, because they are opportunities

5

2018 GR Summit Attendees Dave Dickson

Union Bank & Trust Co., Monticello

Eric Haar

Federal Home Loan Bank of Dallas, Irving, TX

Jeff Lynch

Eagle Bank & Trust, Little Rock

Bruce Maloch

Farmers Bank & Trust Co., Magnolia

Cathy Owen

Eagle Bank & Trust, Little Rock

Christopher Pledger

Eagle Bank & Trust, Little Rock

Randy Rawls

Union Bank & Trust Co., Warren

Sandy Starnes

Citizens Bank, Batesville for our delegation to learn the intricacy of the issues and bankers to share stories of impact. There is no better way to convey necessity for change than face-to-face.

For the latest status of S. 2155 or any other government relations matters, please contact the ABA’s Government Relations Division at 501.978.3606 or ava.roberts@arkbankers.org. Opportunities to join us in Washington come twice a year. Save the date for our Fall Washington Visit, October 2 – 4, 2018.

Don Walker

Arvest Bank, Fayetteville

Sean Williams

First National Bank of Wynne, Wynne

Bill Holmes, ABA Barry Jackson, ABA Ava F. Roberts, ABA

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Arkansas Bank Security & Fraud Outreach Building a Local Network to Reduce Fraud

The Arkansas Bank Security & Fraud Outreach service is an investigative and fraud sharing information network designed to help Arkansas Bank Security Officers detect, discuss, and hopefully prevent, financial fraud. This service is a free networking opportunity for Arkansas bankers who would like to connect with colleagues within the industry in an effort to identify, prosecute and reduce fraud losses.

The Arkansas Bank Security & Fraud Outreach service is part of 3VR CrimeDex, which is used by over 2,500 members including law enforcement agencies, banks, and retailers. The service provides a platform to share information and collaborate to reduce crime and fraud in our communities and industry.

If you would like to be part of this group, please follow the instructions below: 1. Go to www.crimedex.com 2. Click the “Join Now” button 3. Complete the sign-up form: Click the radio button for “Group” Type “Arkansas” in the “Type to begin search” box Highlight “Arkansas Bank Security & Fraud Outreach” Click “Select Group,” and then click “Next” 4. After your application is approved, a confirmation will be sent to you via email. This may take a day or two as all members are individually verified.

If you are already a CrimeDex member, but not in the Arkansas Bank Security & Fraud Outreach group, send an email to matthew.gill@legacyar.com and you will be invited into the group portal.

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Consumer Resources: Tips to Prevent Crime at ATMs There are more than 400,000 ATMs in the United States and that number is growing. Arkansas banks work closely with the local police departments to prevent criminal activity around ATMs, and take preventative measures to enhance consumer safety including installation of surveillance cameras, increased lighting and withdrawal limits.

Regardless of the number of precautions banks take to ensure that customers have a safe environment, there is no substitute for good, cautious behavior on the part of the customer.

Here are eight ATM safety tips to pass along to your customers: Keep your PIN number a secret.

Never write it down or share it with anyone – not even family members.

Be aware of your surroundings, particularly at night. Make sure the ATM is free of sight obstructions.

If you observe suspicious persons or circumstances, do not use the machine.

Bring someone with you when using an ATM at night. If you can’t, use an ATM that is located in a public area like a convenience or grocery store.

Have your ATM card ready and in your hand as you approach the ATM. Use your body to “shield” the ATM keyboard as you enter your PIN. Always take your receipts or transaction records with you.

Do not count or visually display any money you received from the ATM.

Immediately put your money into your pocket or purse and count it later.

If you are using a drive-up ATM, be sure passenger windows are rolled up and all doors are locked. If you leave your car and walk to the ATM, lock your car.

MILLENNIAL MINUTE

MEANS WILKINSON

You Come from a banking family...what’s it like carrying on that legacy?

I feel blessed to have an opportunity to continue the Wilkinson family legacy in banking. W.N. Wilkinson, my great grandfather, started the bank on a shoestring in 1907. My grandparents, Means and Betty Wilkinson, firmly established the bank’s solid reputation among our customers, the communities served, and regulators. Farmers Bank’s third generation, namely Stanhope and Ed Wilkinson, used the success of their preceding generations as a springboard into the 21st century. I have enthusiastically embraced the challenges and expectations ahead of me and look forward to carrying on the family legacy.

Bank

Farmers Bank, Greenwood Position

Vice President How Long Have You Been with Farmers Bank?

7 Years Family

Parents: Stanhope

(former ABA Director)

& Debi Wilkinson Grandparents: the late Means

(former ABA Chairman)

& Elizabeth “Betty” Wilkinson (former Chairman of the Arkansas State Bank Department)

There is a lot of buzz about the impact Millennials have on the workplace...what traits does this generation offer that banks can use to their advantage?

Famers Bank’s tagline is “An Old Tradition for a New Generation.” My leadership role as a millennial in the workplace provides the advantage of keeping our efforts focused on embracing strategies that put our customers and employees first and emphasizing our social responsibility, e.g., the triple bottom line. Farmers Bank brings the best in Fintech to the market. We stress Fintech training for all our associates to help train our customers utilize banking products that will maximize their banking experience. I’m a Millennial. Although I grew up with information technology, I also expect and demand personal service. Consequently, we emphasize relationship banking to all of our customers. Relationship banking defines Farmers Bank’s past and will continue to define our future.

Which do you do more of on your phone — talking or texting?

My customers can contact me 24/7 via telecom, text, or e-mail. I, and our bank officers, make ourselves available by whatever means a customer desires.

Perhaps surprisingly, I seem to spend more time communicating via talking on the phone than I do texting. This type of dialogue is not out of style and is part of our commitment to personal relationship banking. I like to be perfectly clear on what a customer may be asking and focus on their request. Talking on the phone helps ensure that no communication problem exists. I like the personal touch. For communication that is very brief or short, obviously texting can be much more efficient.

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Security

and the

Architect

Unlikely Teammates

By Barry Thompson Thompson Consulting Group, LLC

In architecture, there is a timeless dilemma of form over function or function over form. If your building is beautiful does that make it successful?

If it achieves its purpose of serving your accountholders, but is not pleasing to the eye, is it less successful? We believe that neither form nor function matter without considering the concept of Crime Prevention Through Environmental Design (CPTED).

When designing branches, one does not want to build a security problem into them. CPTED is a science that states simple design changes or fixes

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May 2018

will discourage robberies, muggings, or other criminal activity around property or buildings. Basic items such as lighting, location, landscaping, and locks all play a role in protecting the institution. For example, a simple step like converting halogen lights to LED will make a parking lot brighter and provide cheaper utility costs.

Perhaps you didn’t design the branch, but inherited it instead. Many institutions that have purchased previously constructed branches find existing security issues that arose as part of the build. Among the most common problem areas is the “common� entryway: when the front doors from

the street and rear doors from the parking lots enter into a common hallway or reception area containing chairs or couches. Upon entering the bank, accountholders must turn right or left to enter the main lobby. Staff working in these locations are unable to see who is entering. During a review at one such location, a teller asked us not to do anything to the doors because their creaking was the only way she could tell someone had entered the branch. At another location, a pod branch, the drive-up window teller asked if something could be done to keep people from approaching her from behind. When the pods were not

provided great shelter for homeless people or criminals intending to take staff hostage when entering the branch in the morning. There are many considerations when it comes to landscaping: Trees must be trimmed to allow visibility around the base, and cannot be so big that a person can hide by climbing into the branches. At night, these locations could allow criminals to hide and easily rob customers using the night depositories or ATMs. How do you prevent “building” problems into your branches? Be sure that a CPTED-qualified individual has reviewed the plans.

To conduct the review of design plans, some institutions choose to use local law enforcement as a free solution.

Local law enforcement should know how to implement CPTED around your buildings. However, law enforcement are not experts on the interior of portion of your building if they have never worked around cash recyclers or security equipment that is found in the typical branch office. If you are going to consider this solution, inquire about the training the officers have as to banking operations. Be sure the officer was trained at the FBI school in Quantico, Virginia, otherwise you might find them wanting you to implement procedures that endanger your staff during a robbery.

staffed, she had been surprised to find accountholders standing next to her while she was waiting on cars. These people can access her cash drawer, bank checks, and money orders and could easily steal anything without her noticing.

Building entry seems like a simple thing, but it is not; neither is landscaping.

One institution really wanted to make its branches stand out as beautiful locations. They retained a well-known landscaping architect to design a parklike setting around the branches. The only problem was that the plantings selected were the wrong kind to go around a financial building. They

As a cost-saving measure, one institution chose to retain an expert to review just one branch. The entire management staff followed the expert on the review.

After questioning the expert at length, one member of the staff stated, “Good, now we can implement all of this at our other offices.” The staff really didn’t understand one basic point — depending on location, the steps one takes to protect one office may change entirely with the next location. A rural location is different from a suburban location, which is different than an inner city branch. Each location can present you with problems based on elevation, surrounding buildings, and criminal activity in the area. What will work in a rural area must be upgraded when working in an urban environment. One size doesn’t fit all when working with

© 2018 Thompson Consulting Group, LLC. All rights reserved. Printed with permission.

buildings or redesigning banking offices.

One financial institution was planning a rebuild of their main office. Since a member of senior management has attended a program where they learned about CPTED and that not all architects have CPTED designation, they researched the background of their architect and learned that this was the case. The institution decided to have someone with a background and banking experience review the plans before the architect began preliminary drawings.

All that the expert really needed to perform the review were pictures showing the four compass directions facing away from the branch. They didn’t even need to bring the consultant to the location, only to provide requested descriptions. From these few pictures, it was found that the original design had a few flaws that could cause problems. The vault area was wide open for public access. Control issues resolved with a few simple railings reduced potential internal and external fraud problems. Relocation of the pods provided better security when someone entered by an entry similar to the one previously described.

These types of problems are even found in modular branches designed by reputable companies that have been reviewed for security. Always ask who reviewed the plans, question their credentials, and check that the person has a banking operations background with training in CPTED. If not, you just might find yourself with a problem that could have been avoided.

Barry Thompson is the Managing Principal of Thompson Consulting Group, LLC, a firm specializing in physical security and risk assessments for the financial services industry. A former banker, Barry has 40 years of industry experience and has trained more than 45,000 financial professionals.

Hear more from Barry Thompson at the Bank Security Hot Topics seminar on August 14!

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15

How to Truly

Manage

Your

Information Security Program

Your Information Security Program = More Than Checking the Box

by Jon Waldman SBS CyberSecurity, LLC

In today’s busy world, the easiest thing to do when it comes to your Information Security Program (ISP) is to focus solely on compliance. Ok, well, it might not be that easy to put together an Information Security Program that meets the bare minimum standards for your industry, but only meeting the ISP basics sure feels much easier than spending your time building an ISP that truly demonstrates how your organization manages information and cybersecurity.

But it doesn’t have to be that way. In fact, if you want to meet regulatory compliance AND create an ISP that helps you make better decisions, you must start with the basics.

An Information Security Program is intended to show examiners, auditors,

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and senior management how you are truly managing information and cyber security at your organization.

Simply putting together documentation based on regulatory guidance or best-practices doesn’t mean you’re actively managing information and cybersecurity at your organization; you’re simply checking the box. To break through the checkbox mentality, your ISP should follow these three critical components, in order: 1. Start with your IT Risk Assessment.

The IT Risk Assessment must help you truly understand the risk around your IT systems and assets, then help you make decisions.

2. You must then document the decisions you made in your IT Risk Assessment in your Information Security Program to demonstrate

how you’re protecting customer information and mitigating risk.

3. Finally, you must then test your decisions through various audits.

A standard IT Audit should test your ISP (governance). Test your technology via Penetration Testing and Vulnerability Assessments. Then be sure to test your people – which we all know is security’s weakest link – through Social Engineering Assessments, such as phishing testing or physical impersonation.

Those three components are the foundation to a strong ISP that helps you to actually manage information and cybersecurity. However, to truly make your ISP work for you and help you make better decisions, we need to go one step

further: documenting not only the risks you’re mitigating but also those you are accepting.

There is no such thing as 100% risk mitigation in the world of information security. Even if you were to achieve 100% risk mitigation by some standard, the risk is only mitigated until the next threat, technology, or vulnerability hits the market. Point of reference: nearly 15,000 vulnerabilities received a CVSS score in 2017 alone. That’s over 40 vulnerabilities disclosed per day.

Knowing that you can’t mitigate 100% of all risks means that you must be willing to accept some level of risk to operate your business, unless you prefer to get rid of technology and the internet altogether.

One of the biggest issues that organizations suffer today is a lack of known acceptable risks. Where does one even begin when identifying risks they have not mitigated? The good news is that if your organization is examined or regulated in any capacity, or if you simply believe in protecting your customer information in the first place, you should have plenty of opportunities to identify risk that you have not yet mitigated thanks to regular audits and testing.

Most organizations perform or contract for the performance of an IT Audit (testing your policy and governance), a Penetration Test and Vulnerability Assessment (testing your technology), and a Social Engineering Assessment (testing your people) at least annually.

Those four assessments should identify numerous ways to improve your ISP, particularly if the entity responsible for the testing is looking to provide you with findings and recommendations that focus on the true risks to your organization.

If there are risks that you have identified that you know are unresolved or unmitigated, document those risks or ISP gaps, determine whether you will accept those risks (again, you can’t mitigate 100% of the risk) or put together a plan to address the risk in the future. Not

everything must be or can be resolved immediately. Document a formal work-plan to address all risks you plan to mitigate in the future, then assign responsibilities, completion dates, dollars, or other resources as necessary.

Next, share these accepted risks and risks to-be-mitigated with Senior Management and the Board regularly, as well as progress on your work-plans to address these risks.

Here’s the kicker: your known acceptable risks should be the first thing you share with auditors and regulators when they walk in the door.

You are probably thinking to yourself, “That’s crazy! Share my greatest weaknesses and dirty laundry with my examiners right away? That’s a formula for disaster!” But let me ask you this: what’s the worst-case scenario? You get written-up for risks that you (and the top level of your organization, if you’re doing it right) are already aware of and have either accepted or plan to address in the future?

More likely, your auditor or regulator will see that you are actively managing your Information Security Program and risk. While you still may have findings or recommendations around those items, you will likely not be found significantly deficient in any reports, since you are working to address known issues.

is too much information, guidance, and intelligencesharing going on to attempt the head-in-the-sand excuse. Sure, you may get away with sweeping a few things under the rug, depending on the auditor or examiner that shows up and their knowledge and experience. But in that case, you’re really just crossing your fingers and hoping that no one finds out there are things that can be improved to better protect your customer information and the organization as a whole. That’s not the way we as security professionals should be managing our Information Security Programs.

Truly managing your risk means that you know yourself, your organization, and your risk. Make sure there’s a plan in place to address the known issues and risks, then present your known acceptable risks – and the plans you have to address these risks - to senior management, auditors, and examiners.

Being honest with the risk is the best way to truly manage your Information Security Program.

Jon Waldman is a co-founder and Senior Information Security Consultant for SBS CyberSecurity, a premier cybersecurity consulting and audit firm dedicated to making a positive impact on the banking and financial services industry.

The bottom line is this: it’s 2018; you cannot claim ignorance of risk. There

Join us at the Cybersecurity Road Show in a town near you!

Join SBS and the ABA in June for the Cybersecurity Road Show. These interactive seminars will take place in Jonesboro (June 19), Little Rock (June 20), and Springdale (June 21). They are designed to provide education on evolving cybersecurity threats and what your bank should do to prevent, detect, and respond to these threats. We will identify components of a comprehensive information security program that passes regulatory scrutiny and minimizes your risk of a security incident. This seminar will walk you through the various FFIEC resources that has been published recently, specifically the Cybersecurity Assessment guidance, and discuss ways banks are addressing it. Cybersecurity Assessment updates and changes will be reviewed, highlight next steps beyond the assessment, and identify the 10 common cybersecurity controls missing in most financial institutions.

Visit https://www.arkbankers.org/ for more information.

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What Is the Bank Secrecy Act,

and Why Does It Exist?

by Julie Stackhouse Federal Reserve Bank of St. Louis

Almost 50 years ago, concerns about large amounts of cash coming into the country from the drug trade led Congress to pass what’s become known as the Bank Secrecy Act (BSA).1 The BSA was designed to help identify the source, volume and movement of currency and other monetary instruments transported or transmitted into or out of the U.S.

A system of internal controls to ensure ongoing compliance Independent testing of BSA compliance A specifically designated person or persons responsible for managing BSA compliance Training for appropriate personnel The sophistication of compliance programs varies significantly across the spectrum of banks because of their differing risk profiles.

with FinCEN and implement a BSA compliance program. They are subject to regulatory review by FinCEN in the same manner as banks.

To meet the law’s objectives, the BSA assigned requirements for record keeping and reporting by private individuals, banks and other institutions involved in the money transfer business.

These records provide evidence used by law enforcement agencies in prosecuting money laundering and other financial crimes.

For example, larger banks with diverse customer bases and higher risk operations are expected to devote considerably more resources and managerial attention to money laundering. Automated monitoring systems are typically used, and any suspicious behavior is closely investigated.

Yes. Although the requirements can be onerous and generally require significant financial and staffing resources to comply, BSA programs and the information they generate have proven valuable in combating a variety of financial crimes.

The BSA has been modified several times through various pieces of legislation, including the USA PATRIOT Act.2 The USA PATRIOT Act, passed in response to the Sept. 11 terrorist attacks, criminalized the financing of terrorism and strengthened the existing BSA framework.

Smaller institutions, on the other hand, use simpler tools that often consist of a few automated reports and manual tracking systems. The simpler approach is warranted by their often local and well-known customer bases.

BSA BASICS

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, is the delegated administrator of the BSA. FinCEN, in turn, entrusts the federal banking agencies with reviewing BSA compliance as part of their regular examination processes.

WHAT DOES THE BSA MEAN FOR BANKING ORGANIZATIONS?

Every bank must maintain a written BSA compliance program commensurate with its respective risk profile. The program must include:

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BSA AND CRYPTOCURRENCIES

Bank regulators are frequently asked how anti-money laundering standards apply to cryptocurrencies, such as bitcoin. Cryptocurrencies offer the promise of payments efficiencies, but they have also been at the center of several well-documented cases of criminal activity.

FinCEN addressed this issue in 2014 when it issued guidance that designated an administrator or exchanger of cryptocurrencies as a “money transmitter,” and thus a “money services business” (MSB) under the regulations.

These MSBs are required to register

DO BSA PROGRAMS WORK?

The reports that banks are required to submit to FinCEN have prompted numerous criminal investigations, connected ongoing investigations and helped fill in the pieces on others. In addition, the records that banks are required to maintain have proven to be an important tool for law enforcement.

REFERENCES

The legislation’s formal name is “The Financial Record Keeping and Reporting of Currency and Foreign Transactions Act of 1970.”

1

The formal name of the legislation is the “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.”

2

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

Crime Time

Bank Robbery & Burglary Statistics

*

4,251

22%

total number of annual bank robberies, burglaries, and larcenies

California tops the list, reporting

11%

of the nation’s bank robberies, burglaries, and larcenies

of incidents took place on a Friday

1,031

913 728

incidents in the Southern Region

741

758

699

27

361

incidents reported in Arkansas 51 Mon

27%

Tues

Wed

6:00­p.m.–6:00 a.m. 6:00­–9:00 a.m.

99 455

of identified assailants were previously convicted of bank robbery, burglary, or larceny

3:00­–6:00 p.m.

923

40%

9:00­–11:00 a.m.

1,004

Thu

Fri

Sat

Sun

24%

of incidents took place between 9:00-11:00 a.m.

11:00 a.m.­–1:00 p.m.

961 1:00­–3:00 p.m.

800

were determined to be users of narcotics

Security Devices Used During Crimes

4,057

900

240

24

surveillance cameras activated

incidents in which bait money was taken

currency dye/gas packs taken

access-controlled entryway

alarm systems activated

incidents when guards were on duty

electronic tracking devices activated

man traps activated

3,669

177

12

292

* Statistics from the Federal Bureau of Investigation 2016 Bank Crime Statistics Report.

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19

Counting Chicken House Projects:

They Won’t Hatch Without SBA

by Brooksher Banks Bank Solutions Principal

Importance of poultry and SBA in Arkansas Mitigating perceived issues with the new SOP’s Business as usual for PLP – emphasize other loans beside poultry Which comes first, the chicken-house contract or the financing?

Inquiring bankers want to know.

The Small Business Administration recently raised a warning flag (and some worried eyebrows) when its Inspector General issued an audit in March questioning the eligibility of $1.8 billion in 7(a) loans to poultry farmers.

Within days, the SBA eased the anxiety by reaffirming—emphatically—that all guarantees of poultry loans previously approved would be honored.

For Arkansas bankers and chicken farmers alike, that’s a big sigh of relief.

It’s hard to overestimate the importance of poultry to the Arkansas ag economy.

Only Georgia produces more broiler hens than we do here, and one in ten poultry-related jobs in the U.S. is held

by an Arkansan. The poultry industry contributes more than $900 million to the state and local tax rolls, and pays another $1.8 billion in federal taxes.

Likewise, it’s hard to imagine future poultry growth in Arkansas without SBA guaranteed lending. More than half of the SBA loans in Arkansas are tied to poultry, and even well-heeled growers struggle to get chicken-house loans without a guaranty. The cost of construction for a decently-equipped 8-house poultry farm can approach $2.5 million, which well exceeds the USDA Farm Service Agency loan limit. Without the SBA, the word in statewide banking circles is that entrepreneur types need not apply.

SOLUTION STRATEGIES

The sky isn’t falling, however, on big poultry or Chicken Little. There are ways to mitigate the SBA’s heartburn arising from the over-concentration of poultry loans.

For starters, here are the three most important factors for your bank if you have SBA poultry loans: diversify, diversify, diversify. For every poultry borrower there are many other small businesses looking to grow or expand. It

Modern chicken houses that now include computerized air pressure, air flow and temperature controls are technological marvels compared to the poultry houses that started in Arkansas in the 1890s.

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bodes well for any bank to have a better balance among industries in its SBA portfolio.

The good news? Arkansas small businesses don’t get anywhere near their share of available SBA funds. So growing your SBA non-poultry loans not only helps you with poultry down the road, but also can provide bank noninterest income right now.

In addition, banks offering SBA loans that have not yet achieved Preferred Lender status are operating at a disadvantage. PLP status is more than mere prestige; it’s a classification for banks that empowers them with greater authority in approving SBA loans. And the SBA has all but said out loud that for PLP lenders, poultry loans are “business as usual.”

JUNK SCIENCE RESEARCH

The SBA Inspector General’s report was flawed in a number of ways, not least of which was its sample size. Eleven loans out of 1,535 made during the defined time period (FY 2012 - 2016) is hardly enough to constitute a sample in even the broadest methodological sense of the word.

On top of errant sampling/projected conclusions, the SBA OIG report also seemed to start out with a conclusion that lead to evidence rather than the other way around. Trying to fit integrators into an “affiliate” definition in order to claim that big business was the true beneficiary of SBA loans is more than just a stretch—it’s an outright mischaracterization.

Adding to the unconvincing nature of the SBA’s conclusions is the obvious lack of homework done. Poultry growers are small businesses, period.

They operate just like any other SMB, with investments in real estate and machinery and labor. And while it’s

Poultry Numbers At A Glance

35%

The average length of a commercial chicken house is 450 to 650 feet long.

of SBA loans made in Arkansas funded poultry projects

Poultry loan charge-offs are only

0.37%

(less than half the total SBA charge-off rate) The average flock capacity is 25,000 chicks per house and produces three to four flocks per year.

true that their business is contractually based, that’s as much a strength as a weakness. Lack of revenues is often the prime reason for SMB fails.

GROWTH OPPORTUNITIES

As with all businesses, intangibles play a major role in successful poultry farms and also in quality underwriting. If anything, what the evidence gathered suggests is that a very few large banks abused the system and were abetted by clueless processing center underwriters, some of whom are on record as referring to poultry houses as “chicken coops.”

The answer to that problem isn’t cracking down on community banks that serve agricultural areas wellsuited to poultry farming. The real opportunity arising out of all this is a potential growth opportunity for a great many local banks, who can give the SBA assurance that local loan officers have some familiarity with the poultry business and oftentimes with the farmers themselves.

Shenanigans like the poultry farmer loans report, and other overreaching and reactionary SOPs, are what have

Average poultry house construction is approximately contributed in part to the SBA’s less than sterling reputation among Arkansas bankers. The SBA’s mission is to assist small businesses, and as a small business state, Arkansas banks need to find more ways to maximize SBA guaranteed lending to create local jobs and enterprises.

Pendulums always swing out, and then swing back. The corrections the SBA is considering will subside, but in the meantime, an assertive and proactive posture about balanced SBA lending is the best way to keep local poultry farming expanding—and our ag economy growing.

Brooksher Banks is a Certified Public Accountant with 40 years experience in strategic business finance and consulting specializing in small and medium size businesses, and is a managing member of Bank Solutions, an SBA Lender Service Provider based in Arkansas specializing in innovative bank growth strategies.

$300k

per house (excluding land)

Poultry is the leading agricultural industry in Arkansas, providing over

136,000 58%

jobs

and of the total cash receipts.

Arkansas broilers are the largest segment of the poultry industry with broilers being produced in

53

of the 75 counties in Arkansas.

Poultry of some type are produced on more than

6,000

farms in Arkansas.

May 2018

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21

Arkansas Bank Creates a

MOB

to Support

Local Businesses You’ve probably heard the term “Flash Mob” – a group of people randomly showing up at a designated time and place and creating a scene with an unexpected act of dancing.

One Arkansas bank is taking this concept to a different level, creating “Cash Mob” scenes all over the town of Russellville.

First State Bank began their Cash Mob campaign in February 2017. Created to support both local businesses and the entire community, the FSB Cash Mob brings bankers and community members together at local businesses at a scheduled date and time for an “immediate economic stimulus.”

“We introduced the idea to our employees at our 2017 annual meeting,” explained Brooke Taylor, Assistant Vice President of First State Bank. “We wanted to come up with a signature event that helped our local small business customers while engaging the community and our employees. Cash Mob allows us to recognize and support local small businesses, draw the community in…to help support those business, and involve all of our employees.”

“The business not only receives a really good financial injection that day, but also lots of recognition through social media and our advertising. We hope to impact the community by recognizing those businesses that serve as the backbone of our community and encouraging others to support them,” said Ragena Moore, SVP/COO of First State Bank. “Its message is simply to remember to support our local businesses.”

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Cash Mobs have taken place at businesses ranging from hardware stores to restaurants. Like a “Flash Mob” the events are quick and full of high energy.

“First State Bank is a small business. We know how hard it can be to compete with huge megabanks and the small businesses in our community deal with that same issue on a daily basis. Cash Mob is a vehicle for us to bring attention to those small businesses in a big way on a particular day,” Moore said.

Once the location is chosen, both FSB and the business promote the upcoming Cash Mob event. The rules are simple... join FSB at the business, be courteous to the business owner and staff, spend money, take pictures, and have fun. FSB gives each of their employees “Cash Mob Bucks” to spend at the business during Cash Mob. They can spend it or pay it forward to a customer.

“Our employees love Cash Mob,” Moore said. “They are getting a little freebie with the Cash Mob bucks, but they know that they are playing a big part in supporting our local businesses too! Recently, we held a Cash Mob at Daylight Donuts. Almost every single employee used their bucks to buy donuts to deliver to some of their favorite customers. It’s a win-win!”

“The reaction from employees has been great,” Taylor agreed.

“They enjoy getting out of the bank and shopping or grabbing a bite to eat together. Some are introduced to businesses they may have never stepped foot in and then become regular customers. It’s a lot of fun to see and hear what everyone chooses to purchase.”

The Russellville community loves the Cash Mob as well – of course, there is the food and prizes, but it also gives them incentive to check out local businesses that they may have previously overlooked, and customers are eager to take part in events that are backing local businesses.

“The reaction from the community has been phenomenal,” Moore said. “They love the excitement around Cash Mob. We have a lot of people that make every single Cash Mob – Cash Mob groupies! People realize that we are putting our money where our mouth is- right back into the community.”

For Moore and other members of the FSB family, events like the Cash Mob are all part of being a hometown banker. “The best part of being a hometown banker is twofold for meworking for an amazing company that values its employees and its customers in a very personal way, and the fact that I have everything I need to take care of my customers!”

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Arkansas Banks Come Together to

Teach Children to Save More than 30 Arkansas banks and branches were among the 12,500+ bankers across the country that partnered with local schools to celebrate Teach Children to Save Day in April. As part of the program, Arkansas youths explored a number of financial subjects, including the difference between needs and wants, how to identify expenses, and ways to cut spending.

1

Established by the American Bankers Association in 1997, Teach Children to Save and related financial education initiatives have reached approximately 10.3 million children through nearly 313,000 banker presentations.

“One of the most fundamental components to creating jobs, economic growth and prosperity is a labor force that understands economics and personal finance,” said Rob Nichols, ABA president and CEO. “Our nation’s banks are dedicated to building that foundation for hundreds of thousands of young people, and I appreciate their continued support of Teach Children to Save.”

2 3

In a Teach Children to Save classroom lesson, bankers teach students the fundamentals of financial literacy through age-specific activities and interactive scenarios. The lessons cover the basics of saving, as well as how to create a budget and distinguish needs from wants. Arkansas bankers used a variety of programs from playing financial games, to learning how to write checks and the importance of maintaining good credit.

See more photos and a list of participating banks on Page 26!

1. Farmers Bank & Trust presented a program at Columbia Christian Day Care & Preschool in Magnolia.

6. Farmers Bank & Trust presents a program at McNeil Head Start Center.

2. First National Bank of Wynne employees Jacob Hess and Amanda Morgan with Wynne Primary School second graders.

7. Bank of Salem Human Resources Officer Cory Tyler speaks to second graders at Salem Elementary.

3. Armor Bank spent the afternoon speaking to more than 350 students at Central Elementary in Forrest City.

8. First State Bank employee Toni Laws with second grade students from Sequoyah Elementary in Russellville, and their new FSB piggy banks.

4. Bank of England employees presented financial curriculum at England Elementary School.

5. Second graders at Alma Spikes Elementary in Pocahontas show off their new Integrity First Bank piggy banks. IFB gave each student a start by putting a dollar in their piggy banks!

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9. First National Bank of Wynne employee Morgan Bell with Cross County Elementary second graders.

7

4 5

8 6

9

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1. First National Bank of Wynne employees Mandy Barnes and Zac Price with Harrisburg Elementary second graders.

2. Integrity First Bank employees in Pocahontas with students from Williams Baptist College Teacher Education program, gearing up to teach 175+ students at Alma Spikes Elementary.

3. First National Bank of Wynne employee Amanda Morgan assists students with giant coins provided to purchase items from the school store.

1 2

3

Thank You to these Arkansas Banks for Teaching Children to Save!

Batesville

Harrisburg

Mountain Home

Bradford

Hazen

Pocahontas

Cave City

Hot springs

Southern Bank

First National Bank of Wynne

Southern Bank

BancorpSouth Bank

Bank of Cave City

BancorpSouth Bank Diamond Bank

Cherry Valley

First National Bank of Wynne

Huntsville

Today’s Bank

Conway

Bear State Bank

Jonesboro

First Security Bank

First Security Bank Southern Bank

Cotter

Integrity First Bank, NA

Little Rock

England

Eagle Bank and Trust

Fayetteville

One Bank & Trust NA

Bank of England

IberiaBank

Farmers & Merchants Bank

Relyance Bank, NA

Forrest City

Magnolia

Armor Bank, NA

Farmers Bank & Trust

First National Bank of Wynne

McCrory

First National Bank of Wynne

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Integrity First Bank, NA BancorpSouth Bank Integrity First Bank, NA

Russellville

First Security Bank First State Bank

Salem

Bank of Salem

Searcy

Southern Bank

Statewide

First Arkansas Bank and Trust U.S. Bank National Association

Van Buren

Chambers Bank

Wynne

First National Bank of Wynne

PROFESSIONAL DEVELOPMENT

21 Graduate from Commercial Lending School Twenty-one bankers, representing 16 financial institutions from across the state, came together to strengthen their banks’ lending departments.

The five-day event, led by instructors John Cochran and Ron Rushing, gave bankers a strong general foundation for commercial lending, drilling down on credit analysis and how to deal with problem loans.

Here’s what students were saying about the 2018 Commercial Lending School: “I thought that this was a very well run and informative event! Would recommend to other lenders to attend.” - Ashley Reed, Citizens Bank & Trust Company “I learned some valuable analysis tools that will be very useful.” -Lori Case Melton, First Service Bank

Commercial Lending School graduates Keith Cook, First Arkansas Bank & Trust, Sherwood; Charlotte Gibson, Simmons Bank, Ozark; Blake Downen, Simmons Bank, Dumas; Melissa Dorminy, Centennial Bank, Russellville; Cody Andrew Davis, Signature Bank of Arkansas, Fayetteville; Ashley Reed, Citizens Bank & Trust Co., Van Buren; Dustin Trammell, Eagle Bank & Trust Co., Heber Springs; Julie Chambers, First Service Bank, Greenbrier; Jennifer Young Harding, Centennial Bank, Jonesboro; Dalton Smith, Generations Bank, Rogers; Melina Sawyer, Union Bank of Mena, Mena; John Michael Davis, Southern Bancorp, Fayetteville; Josh Austin, Southern Bancorp, Fayetteville; Lori Case Melton, First Service Bank, Conway; James Lyle, McGehee Bank, McGehee; Leslie Carroll, Simmons Bank, El Dorado; Dillon Richard, First Security Bank, Conway; Samuel Carlton, Generations Mortgage, Fayetteville; James Wells, First State Bank of Warren, Warren; Joe Zanco, Home Bank, Lafayette, LA; and Josh Gambrell, One Bank & Trust, Little Rock.

Spencer Davis Awarded 2018 SWGSB Millennium Scholarship Spencer Davis, Loan Officer at Riverside Bank in Little Rock, has been awarded the 2018 SWGSB Millennium Scholarship. Davis has been in banking for nine years and is currently responsible for commercial and consumer loan origination, credit and collateral analysis, and management of loan processors.

He holds a degree in Financial Economics from Southern Methodist University and is also a graduate of

SMU’s Commercial Lending School.

“I will be the first SWGSB graduate from Riverside Bank,” Davis said. “My dad is the CEO and is investing in our bank’s future by investing in me. I’m eager to continue to improve my banking skills every day, just like my father and his father before him.”

Each year, the SW Graduate School of Banking Foundation offers a $1,500

scholarship to a member of the Arkansas Bankers Association. The scholarship is applied toward the first year tuition for the school, and may be awarded in the second and third year, as long as the recipient remains in the top 10% of the class.

“It is our way of giving back to the banking community that has so generously supported the SWGSB Foundation for five decades,” said S. Scott MacDonald, president and CEO of the SWGSB Foundation.

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MEMBER NEWS

First Community Bank Launches Piggy Bank Initiative in Jonesboro In an effort to teach children the importance of saving, First Community Bank has partnered with Andson Inc., a non-profit educational organization, and Nettleton Public Schools for the academic year.

Bank employees will work closely with fourth grade teachers at Fox Meadow and University Heights intermediate schools in Jonesboro to facilitate in-class financial literacy lessons once a week for the school year. The objective of the Piggy Bank program is to enable children to make financial choices and guide them in managing their money effectively. The lessons center on differentiating needs and wants, setting attainable long and short-term goals, and how to make a functional budget.

First Community Bank is the first institution in the state of Arkansas to sponsor the Piggy Bank program. The curriculum they are implementing is generated by Andson Inc. and is based on common core standards in English, Language Arts, Math, and Social Studies/ Economics.

According to Andson, having a college savings account containing even $1 will increase the likelihood a child will attend college from 45% to 71%. The curriculum also includes interactive lessons and in class discussions to keep the subject fresh and engaging to students.

Bank employees volunteer their time and services to go to the schools, and the students are then introduced to the banking experience. Employees take in the students’ deposits, teach them how to fill out their deposit slips, and show them how to keep track of how much money they are saving in their deposit booklet. There is also an interactive app where students and their parents can monitor their progress towards their goals electronically.

According to Gabe Roberts, Assistant Vice President/Lending and Piggy Bank volunteer, “It isn’t about the dollar amount, but about getting children in the right mindset. The sooner they begin envisioning their future, be it college or purchasing a first home or first vehicle, the sooner they will realize

the importance of setting budgets and a game plan to help them achieve their goals.”

As stated by Brian Emison, Vice President of Retail Banking, “We wanted to do something different that would forever impact a child’s life. Anyone can write a check and move on to the next sponsorship. It’s when we interact with a 4th grader every week and hear how they’re saving money for college or to help their parents with bills, that we know this partnership is affecting lives and making our community better.”

“As bankers in the Jonesboro area, it is both our obligation and our privilege to teach useful saving techniques to future generations so that they may grow and thrive in the years to come,” said Allen Williams, Jonesboro’s Community President.

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May 2018

Legacy Bancshares to Acquire Bank of Gravett Pending Shareholder and Regulatory Approvals Legacy BancShares, Inc., parent company of Legacy National Bank, headquartered in Springdale, Arkansas and Gravett Bancshares, Inc., in Gravette, Arkansas announced that they have entered into a Merger Agreement for Legacy BancShares, Inc. to acquire the outstanding stock of Gravett Bancshares, Inc. and its subsidiary Bank of Gravett. The purchase is subject to approval of the shareholders of Gravett Bancshares, Inc. and receipt of regulatory approvals. The anticipated close of the transaction is mid-summer.

Once the transaction closes, the Bank of Gravett will become a subsidiary bank of Legacy BancShares, Inc. and will continue to operate as Bank of Gravett.

our customers and our communities expect.”

Rick Pollreis, Chairman and CFO of Bank of Gravett stated, “I look forward to working with the Legacy National Bank team to make this a positive experience for our customers and employees. This will be a good fit for both banks.” Pollreis will remain at the Bank of Gravett in the position of Executive Vice President and City Executive of Gravette.

Customers of Bank of Gravett and Legacy National Bank should continue to conduct banking as usual at their existing branch locations, and continue to use their same checks, debit cards, and online banking services. There are no plans to make any changes to customer accounts at this time. If customers have questions they should contact their local branch office.

Commenting on the acquisition Patrick Swope, President and CEO of Legacy National Bank stated, “We have great respect for Bank of Gravett and its long history of service to the communities they serve. Like them, we too, are a local, hometown community bank with local directors, many of which have years of experience as community bank leaders in Northwest Arkansas. With the addition of the Bank of Gravett our organization will become stronger both in terms of size and presence in Benton County, adding to the existing Legacy Northwest Arkansas locations in Bentonville and Rogers, and four Washington County locations.” He continued, “It is without question that with our similar values and cultures we will continue the tradition of service that

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May 2018

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MEMBER NEWS

Southern Bancorp Raises $17.75MM in First Close of Capital Campaign A diverse group of investors, representing global institutional investors, regional financial institutions, foundations and family offices comprise the first closing of Southern Bancorp’s capital campaign with a combined investment commitment of $17.75 million.

Southern Bancorp, a certified Community Development Financial Institution (CDFI), is providing a unique value proposition to which the capital markets have reacted positively: that a mission-driven financial institution serving underserved and economically distressed communities can provide both a financial and social return on investment. Enclude Capital Advisory assisted in the transaction.

“The make-up of our initial round of investors illustrates the broad range of investment interest in strengthening the role of well-performing community banks,” said Darrin Williams, Southern Bancorp’s Chief Executive Officer.

“From global funds looking to support distressed American communities, to regional financial institutions seeking to share in our CRA benefits, to families looking for opportunities to support the communities they hold dear, these investors have all joined in our mission to create economic opportunity where it’s needed most in a way that provides both a return of and on capital.”

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First round capital campaign investors include: Simmons First National Corporation, BancorpSouth Bank, Prudential Impact Investments Private Equity LLC, Sustainability Finance for Real Economies (SFRE) investment fund, Founding Southern board member and former chief of staff to President Clinton, Mack McLarty, Co-Founder and Vice-Chair of McLarty Capital Partners, Franklin McLarty, Wittington Portland Murdoch Limited Partnership, and 100% of the directors and executive officers of Southern Bancorp.

Southern Bancorp has a proven record of delivering consistent profitability in rural and minority communities characterized by persistent poverty and a lack of financial access. Since 1988, they have originated over $4 billion in loans through 46 branches and loan production offices in Arkansas and Mississippi, offering a combination of products and services designed to support pathways to prosperity.

“We will use this growth capital to expand our impact into new markets. There is considerable need throughout the American Mid-South for our unique brand of financial development and access,” said Williams. “As we continue growing, we look forward to engagement from a growing base of investors interested in pursuing strategies that put capital to work for themselves and disinvested communities.”

Arkansas Bank Department

Applications & Approvals Branch Bank Application An application filed by The Citizens Bank, Batesville, Arkansas, to establish a branch banking facility at 3971 W. Wedington, Fayetteville, Arkansas, has been approved. March 21, 2018.

An application filed by First Arkansas Bank & Trust, Jacksonville, Pulaski County, Arkansas, to establish a branch banking facility at 804 Hogan Lane, Conway, Faulkner County, Arkansas, has been approved. March 28, 2018.

An application filed by First Security Bank, Searcy, White County, Arkansas, to establish a branch banking facility at the Southeast corner of the intersection of Brockington Road and Indian Bay Drive, Sherwood, Pulaski County, Arkansas, has been approved.

April 13, 2018.

An application filed by the Bank of Cave City, Cave City, Sharp County, Arkansas, to establish a branch banking facility at 1141 East Main Street, Suite 100, Batesville, Independence County, Arkansas, has been approved. April 13, 2018.

An application filed by The Citizens Bank, Batesville, Independence County, Arkansas, to establish a branch banking facility at 1698 Hidgon Ferry Road, Hot Springs, Garland County, Arkansas, has been approved. April 16, 2018.

Purchase and Assumption Application An application by First Financial Bank, El Dorado, Arkansas, to purchase or assume less than a majority of assets and/or liabilities of Bear State Bank, Little Rock, Arkansas, with the acquisition of the branch office located at 600 Highway 71 South, Mena, Arkansas, has been approved. May 4, 2018.

Merger Application An application to merge Bank SNB, Stillwater, Oklahoma, with and into Simmons Bank, Pine Bluff, Arkansas, has been approved. May 3, 2018

First National Bank Announces Clarksville Opening

Arvest Foundation Donates $25,000 to MetRock Now

Jarrod Yarnell, President of First National Bank at Paris has announced that the bank’s Clarksville branch opened Monday, May 7th. First National Bank at Clarksville is located at 1320 West Main Street in Clarksville.

Business hours will be 8:30 a.m. - 5 p.m. Monday through Friday.

The branch will offer all banking services and will initially employ five people, including Steven Sosebee, Senior Vice President Lending, Isabel Lira, Branch Manager, Kristi Williams, Loan Assistant / Processor, Velda Bean, Teller and Brandy Ashbury, Teller.

In addition to its lobby, the bank will have three drive through teller lanes and an ATM. According to Sosebee, “We are very excited and proud to be opening our Clarksville branch. First National Bank at Paris has a strong history of giving back to the communities they serve, and we intend to carry on that tradition here in Johnson County.

Clarksville and Johnson County are home for us. Our team members live here and have over 70 years combined experience providing banking services to the residents of Johnson County. We are truly local people, making local decisions.”

The Arvest Foundation has made a gift of $25,000 to the Little Rock Regional Chamber’s MetRock Now economic development campaign. The gift was announced by the Little Rock Regional Chamber, along with the announcement of MetRock 2020, the chamber’s strategic plan to guide the campaign’s efforts over the next three years and beyond.

The funds will be used in the infrastructure and product area of the campaign, which focuses on helping position central Arkansas as a choice destination for new and innovative businesses. The chamber has identified six focus areas for the MetRock Now campaign: Business Vitality/Policy, Infrastructure/Product, Marketing/ Communications, Workforce/Talent,

Entrepreneurship/Innovation, and Community Vitality.

President and CEO of Arvest Central Arkansas Jim Cargill was on hand to present the check. “MetRock Now provides us with a strategic, comprehensive and aggressive approach to position Little Rock as a place where businesses want to launch and grow,” said Cargill. “As a communityfocused bank Arvest is proud to be a part of this campaign.”

Cathy Tuggle, chamber board chairman, added, “the chamber and its partners are ready to implement this work, but as business leaders we must continue to invest in this important work to make sure that Little Rock is a place where people and businesses come to thrive, grow, and succeed.”

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BANKER NEWS & MOVES Arvest Adds Rockefeller, Murphy, to Board of Directors Arvest Bank is pleased to announce Dr. Bruce Murphy and Winthrop (Win) Rockefeller, Jr. have joined its local board of directors in central Arkansas.

Dr. Bruce Murphy is the CEO of Arkansas Heart Hospital.

In addition to training cardiologists from across the United States and the world on advanced interventional techniques, Murphy is a regular speaker on a variety of topics at both national and international conferences. He lives in Little Rock.

Win Rockefeller is the principle at Theseus Holdings LLC. He and his wife, Natalie, have two sons and live in Little Rock. Among other civic endeavors, Rockefeller is a board member for the Humane Society of Pulaski County, Easter Seals, and the Winthrop P. Rockefeller Cancer Institute.

has been in banking for 16 years. He is the President of the Bentonville Connectors Chapter of BNI Mid-America.

Charles T. Cross, Chief Executive Officer, Cornerstone Bank, is pleased to announce the appointment of Bob Rawson to the growing bank’s Advisory Board of Directors for Madison County. Mr. Rawson currently serves as Market President for the bank’s Huntsville operation, having joined the bank in 2015.

Heather Wagner has been with Grand Savings Bank for 13 years and was most recently a Loan Assistant Supervisor at the Gravette location.

Cross stated, “Bob has been a great addition to our bank family here at Cornerstone and is a big reason we have grown so quickly in the Madison County area.

Our team of professional bankers, a commitment to true community banking and local leadership such as Bob’s has served our institution well since our entry into the market in 2015. This appointment for Bob is welldeserved and we feel blessed to have his association with our company.”n

Grand Savings Bank Promotes Gabriele, Wagner

“We are thrilled to add Bruce and Win to our board,” said Jim Cargill, president and CEO of Arvest Bank in central Arkansas. “Both men have expertise that will be invaluable to us at Arvest. More importantly, they are active members and contributors to our community here in central Arkansas. There is no doubt they will be strong parts of our team.” n

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Rawson Appointed to Cornerstone Advisory Board

Grand Savings Bank is pleased to announce the promotion of Jared Gabriele to Vice President and Heather Wagner to Loan Officer.

Jared Gabriele was an Assistant Vice President with Grand Savings Bank in its Rogers-Hudson location and n

May 2018

“Grand Savings Bank is fortunate to have such talented bankers like Jared and Heather delivering the best financial experience to our customers. These promotions are well deserved” said Guy Cable, Grand Savings Bank CEO. n

Grand Savings Bank Promotes John Williams Grand Savings Bank is pleased to announce the promotion of John Williams to Chief Credit Officer.

Williams has been with Grand Savings Bank for five years serving as Credit Review Officer and he’s been in banking for 13 years.

He is a graduate of Jay, OK high school and has a Bachelor’s degree in Business Administration from Rogers State University.

Williams volunteers with the Grand Lake Family YMCA and Boy Scouts of America.

“The board is pleased to promote John Williams to Chief Credit Officer due to his strength in Asset Quality Risk Management and commitment to the bank

over the past number of years. John’s work ethic and professionalism is a shining example of what sets Grand Savings Bank apart from other financial institutions,” said Guy Cable, Grand Savings Bank CEO. n

Farmers Bank & Trust Promotes Josh Caldwell The Farmers Bank & Trust Board of Directors recently announced the promotion of Josh Caldwell to Assistant Vice President, Commercial Loan Officer. Caldwell’s office is located in Malvern, AR at the bank’s main branch and in the Benton/Bryant, AR Loan Production Office to serve clients in the Central Arkansas area.

Caldwell has over 15 years of banking experience and joined the Farmers team in 2016 as a Commercial Loan Officer. Caldwell is a graduate of the University of Central Arkansas where he received his Bachelor’s Degree in Business Management. In 2015, he completed the Commercial Loan Academy at the Barret School of Banking.

Caldwell resides in Benton with his wife, Stephanie, and two children. He and his family are involved at Indian Springs Baptist Church in Benton. Caldwell is also a volunteer baseball coach.

Malvern Market President, Scott White, stated, “Josh Caldwell is a valuable member of the Central AR lending team. Caldwell’s topnotch service and banking experience make him the

perfect financial expert for our customers. I look forward to future growth for him with Farmers Bank & Trust.” n

First National Bank at Ozark Announces Staff Additions Jarrod Yarnell, President, First National Bank at Paris has announced two additions to the staff of First National Bank at Ozark.

Amy Connelly has been hired as Head Teller.

Connelly has 19 years banking experience with area banks.

Samantha Stoneking has been hired as Teller.

Stoneking was previously employed as a teller with an area bank.

Mike Gibbons, Senior Vice President of Lending leads the First National Bank at Ozark team. According to Gibbons, “We are very pleased to welcome our newest team members, and are excited to add the experience they bring to us.”

Citizens Bank Promotes Wood, Shelby to Retail Branch Manager Citizens Bank has promoted Melissa Marie Wood and Scott W. Shelby to the positions of Retail Branch Manager, according to Phil Baldwin, Chief Executive Officer. Wood now manages the bank’s Eagle Mountain

branch, while Shelby leads the Citizens Bank location at Imboden.

“Melissa and Scott embody what we call a new generation of banking leadership that we are developing at Citizens Bank,” Baldwin said. “Both are committed to banking excellence, are expert at customer service, and are very deserving of these promotions.”

Melissa Wood most recently served as an Assistant Branch Manager at the Eagle Branch location and has been with Citizens Bank since 2015. She joined the bank after many years of customer service and management experience.

She and her husband, Casey Wood, have five children: Quincey, Kayla, Tanner, Layton, and Griffin – and one grandchild, Farrah.

Wood attended the University of Mississippi and later graduated from the University of Arkansas Community College at Batesville. The family attends Union Grove Missionary Baptist Church in Pleasant Plains.

Scott Shelby, who lives in Cave City, has also been serving as an Assistant Branch Manager at the Eagle Mountain branch, and has been with Citizens Bank since 2005.

His banking career began as a cash vault assistant, and has progressed to teller, bilingual Senior Customer Service Representative, to Assistant Retail Branch Manager. Prior to Citizens Bank, Shelby worked in Retail Management. He graduated from Lyon College with a Bachelor of Arts degree in Spanish. n

Townsell Named Home Bancshares Director of Investor Relations Home BancShares, Inc., and its wholly-owned subsidiary, Centennial Bank, has announced the appointment of its Senior Executive Vice President, Donna Townsell, as Director of Investor Relations for Home.

Townsell previously served as Director of Marketing for the company.

“Donna has played a major role in our company’s success and is a tremendous asset to the team,” said John W. Allison, Chairman. “She has proudly and successfully worn many hats for the company over the years, which included Director of Corporate Efficiencies that was a game changer for the company moving ratio’s from 60’s to 30’s, and we can rest assured that this role will be no different. Due to the increased regulations of growing over $10 billion, we believe it is prudent to have a dedicated Investor Relations Officer and Donna’s extensive knowledge of the company and innovative background May 2018

in marketing will help us improve our outreach and communication with current and prospective investors, research analysts and other important stakeholders.”

Additionally, the company announced Andria Russaw will succeed Townsell as the Director of Marketing of Centennial Bank. Russaw has been with the company since December 1999, when it was First State Bank. She was a Loan Assistant and then held the position of Assistant Director of Loan Operations for twelve years.

Most recently Ms. Russaw has served the bank in the capacity of a ConversionAnalyst. She is the mother of three adult children and resides in Conway.

“Andria has been with the company almost nineteen years and will be a perfect person to step in as Director of Marketing. She is loyal, dedicated and smart. I look forward to working with her directly”, said Allison. n

Million Named Credit Analyst for Stone Bank Brooke Million of Benton has been named a Credit Analyst for Stone Bank in Little Rock.

She had worked for Dassault Falcon Jet and holds an Associate Arts Degree from U of A Pulaski Tech and a BBA in accounting from UALR. She is currently a Certified Public Accountant candidate.

Stone Bank has offices in Little Rock, Mountain View, Harrison, and White Hall. n n

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BANKER NEWS & MOVES Promotions Announced for Farmers and Merchants Bank and The Bank of Fayetteville

graduate of Rice Belt Vo-Tech.

She and her husband Fred have a son, a daughter and four grandchildren.

Whitney Neal has been named Assistant Vice-President and Branch Manager of Farmers and Merchants Bank’s DeWitt location.

Neal grew up in Almyra and graduated from DeWitt High School. She attended the University of Arkansas in Fayetteville, majoring in communications. Having been hired in 2003, she has worked in both deposits and lending. Neal is the mother of two boys.

Farmers and Merchants Bank President and CEO Gary Hudson recently announced several promotions. “As our bank has grown and expanded our market areas, I am pleased to announce these promotions as both rewards for exemplary performance and a reflection of our changing organizational structure,” he said.

Laura Rodgers at The Bank of Fayetteville has been named Assistant Vice-President in Information Technology. Rodgers’ hometown is Bella Vista. She graduated from Bentonville High School and attended the University of Arkansas.

Rodgers first worked at The Bank of Fayetteville in 1998 at the famous Train branch on Dickson Street and later worked at the College Avenue location, before beginning her career in IT. She and her husband Stan have one son.

Susan Tharp of The Bank of Fayetteville is now Assistant Vice-President of Human Resources.

Having grown up in Jasper, Tharp now resides in Springdale. She has 28 years of banking experience including new accounts, loans, board reporting and trust. She has worked in Human Resources for 20 years, joining The Bank of Fayetteville in 2013. She is a member of the Society for Human Resource Management and Northwest Arkansas Human Resources Association. Tharp and her husband Jerry have two sons.

Nila Leder of Ulm was promoted to Assistant Vice-President in Information Technology at Farmers and Merchants Bank in Stuttgart. She has been with the bank since 1981. Over her tenure she has worked in various areas of the bank, primarily in data processing and IT. Leder is a

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Robin George at The Bank of Fayetteville has been promoted to VicePresident of Loan Operations. A resident of Farmington, she is n

May 2018

originally from Lincoln and Prairie Grove. George first went to work at The Bank of Fayetteville in 1992 as a loan assistant and in loan processing. She later became a stay-at-home mom, returning to The Bank of Fayetteville in 2003. She has two sons, two daughters, a daughter-in-law and a granddaughter.

Nikki Skinner has been promoted to Vice-President of Human Resources.

Skinner, of Clarendon, is based at Farmers and Merchants Bank in Stuttgart. She is a graduate of Clarendon High School, and Phillips Community College of the University of Arkansas in Stuttgart. She was hired by Farmers and Merchants in 2006 in the Customer Service department before moving into Human Resources.

Skinner has attained certification as Professional in Human Resources as well as Society of Human Resources Management. Skinner is the mother of two boys.

Cynthia Schneider is now VicePresident of Marketing and Business Development at The Bank of Fayetteville.

Originally from Baton Rouge, LA, Schneider studied Business Administration at Louisiana State University.

She began her career at The Bank of Fayetteville in 2014, first as a Customer Service Representative and then as the Executive Assistant to the CEO. She received

several awards as a business owner in Louisiana, and more recently was awarded the Leadership Fayetteville Above and Beyond Award.

She and her husband Steve make their home in Goshen.

Christy Malahy is now Vice-President of Accounting.

She was hired at Farmers and Merchants Bank in Stuttgart in 2010.

Originally from Cape Girardeau, MO she worked in Public Accounting for 8 years prior. She is a licensed CPA in Arkansas and Missouri. Malahy is a graduate of Southwestern Graduate School of Banking at Southern Methodist University in Dallas. She and her husband Russell have one child and make their home in DeWitt.

Kelly Houghton has been promoted to Senior Vice-President and Chief Operating Officer of Farmers and Merchants Bank.

Houghton, of Humphrey, AR, began her banking career at F&M in 1999, after earning a Bachelor Degree in Agriculture Business from Arkansas State University. She is also a graduate of Southwestern Graduate School of Banking at Southern Methodist University. Houghton has spent most of her banking career in the area of loan operations. She is an active member of Stuttgart’s Kiwanis Club, having served as president in 2014 and was named Kiwanian of the

Year in 2014. The Stuttgart Chamber of Commerce awarded her Volunteer of the Year in 2013. She and husband Bryan have two daughters. n

Simmons Bank Names Robinson Community President Simmons Bank has named Daniel Robinson the new community president in Pine Bluff, Arkansas.

Robinson previously served as the Community President of northeast Arkansas in Jonesboro.

“We are delighted to welcome Daniel back to Pine Bluff,” said Simmons Bank chairman and CEO Marty Casteel. “His experience and personal investment in this community will be a wonderful complement to his attentive client work. We are confident that Daniel will continue providing the best possible service for Simmons Bank customers in the area.”

A Pine Bluff native, Robinson earned a Bachelor of Science degree in business administration at the University of Arkansas. He also completed various lending and banking courses and conferences, and graduated from the Graduate School of Banking at Louisiana State University.

Robinson has been active in the Jonesboro community, serving in many diverse roles for a host of organizations, including the Jonesboro Chamber of Commerce, Jonesboro Economic

Development Corporation and many others. He recently served on the ABA Emerging Leaders Council and as a board member for the United Way of Northeast Arkansas.

He is looking forward to plugging back into the Pine Bluff community. n

MeredithCampellone Promoted at Eagle Bank Jeff Lynch, President and CEO of Eagle Bank and Trust, has announced that Michael Meredith-Campellone has been promoted to Senior Vice President of Information Technology. Michael joined Eagle Bank in December 2017 as an Information Technology Specialist. A native of North Hollywood, California, he spent his early years in the Los Angeles area, graduating early from high school on an accelerated learning program. He attended Los Angeles Valley College and California State Northridge University.

He has earned numerous technical certifications and credentials from Microsoft, Novell and others building his exceptional background and vast knowledge of the IT field.

Although Michael’s early work history is rooted in the banking industry, he worked in the technology driven aerospace industry and military IT contract work with a large information technology company in Alabama.

Michael was active in community affairs while

living in California, raising funds for Aids Project and by serving on the fund raising committee for the East Los Angeles Women’s Center.

Lynch stated, “Michael Campellone brings to Eagle Bank a vast knowledge of the technology field that will greatly assist the bank in navigating the ever changing technological advances to better serve our customer base.” n

Arvest Bank Hires Three Mortgage Lenders in Central Arkansas Arvest Bank has added three mortgage lenders to its teams serving the city of Hot Springs, and the Garland and Saline County areas.

Tammy Whitley has been hired as Vice President/ Mortgage Lending Supervisor.

Whitley will assist customers in determining which type of loan best meets their needs, and will support mortgage loan officers in Saline and Garland Counties.

Whitley has more than 28 years of experience in the mortgage industry. Prior to being hired by Arvest Bank, Whitley was Vice President/ Mortgage Market Manager for Bank of the Ozarks. She also was Vice President/ Market Manager for Regions Mortgage and Owner/ President of Union Equity Mortgage.

Realtors Association. She is a native of Benton.

Racquel Martin will serve Arvest customers as a loan originator in the city of Hot Springs and Garland County areas.

Martin is a native of Hot Springs, a member of the Hot Springs Board of Realtors and brings to her position more than 20 years of experience in the mortgage industry.

She previously was a Loan Originator at Bank of the Ozarks and Summit Bank.

Desiree Mann has been hired as a dual-purpose lender in the Saline County market where she will assist customers with construction and mortgage lending. Mann previously worked as a Mortgage Loan Officer for Bank of the Ozarks and Regions Mortgage.

She also did commercial, consumer, construction and mortgage lending at Union Bank of Benton. She has more than 25 years of experience in the mortgage industry. Mann is treasurer of the Saline Home Builders Association. n

ASBD Promotions The Arkansas State Bank Department promoted Ashish V. Patel to Bank Junior Examiner effective May 20, 2018. n

Whitley has been a member of the South Central Arkansas Realtors Association for more than 24 years and is a member of the Hot Springs May 2018

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