The Arkansas Banker November 2016

Day at the Capitol Recap

Using Captives for Enterprise Risk Management

The Arkansas

Banker

Volume C, No. 11 | November 2016 November 2016 | The Arkansas Banker

1

APR IL 9 TH , 10:24 A .M .

GET TING A POSITIVE RETURN ON TRUST IN AN INS TANT,

LU CI A M A R T I N E Z ACH I E V E D T H E R E WA R D O F A R EL AT I O N S H I P B U S I N E S S

A simple handshake wasn’t enough when Lucia Martinez’s client walked in to hand-deliver her final loan payment.

Lucia’s community bank had backed the city’s only woman-run auto-body shop for more than 10 years. Supported by CNA’s deep understanding of business risk, the bank had the confidence to invest in good ideas from uncommon sources. Now Lucia was ready to hug her friend, a thriving small business owner ready to talk expansion. Great job, Lucia.

To learn more about our broad portfolio of insurance products and services for community banks visit, www.cna.com/communitybanks.

CNA is proud to be the endorsed carrier of the Arkansas Bankers Association.

Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. The examples provided in this material are for illustrative purposes only and any similarity to actual individuals, entities, or places is coincidental. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved.

2

The Arkansas Banker | November 2016

The Arkansas

Banker Volume C, No. 11 | November 2016

The Arkansas Banker is the official publication of the Arkansas Bankers Association.

CONTENTS

EDITORIAL OFFICE

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

COLUMNS

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.

8

Emerging Leaders Update

Blake Fletcher

Ava F. Roberts

Rob Nichols

19 Professional Development

DEPARTMENTS

20 Member News 21 Banker News & Moves 23 Classifieds 23 Index of Advertisements

12 Emerging Leaders

Day at the Capitol

SUBSCRIPTION

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

Legislation & Regulation

The publication of advertisement does not necessarily represent endorsement of those products or services by the Arkansas Bankers Association. The Editor reserves the right to refuse any advertisement.

MAGAZINE RATES

6

Bill Holmes

10 Washington Update

ADVERTISEMENT

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

President’s Column

EDITORIAL

The Arkansas Banker seeks to reflect the banking news of Arkansas and other news of direct interest to the Arkansas Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Arkansas Bankers Association. Articles may be reproduced with written permission only.

4

FEATURES

By Ava F. Roberts

14 Banks Using Captives for

Enterprise Risk Management

in Increasing Numbers

By Josh Miller

16 Agricultural Lending

Conference Wrap-Up 17 Trust & Wealth Management

Conference Wrap-Up 18 ABA BankPAC

Golf Tournament

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

November 2016 | The Arkansas Banker

3

PRESIDENT’S COLUMN The State of Banking in Arkansas Community banking has far-reaching effects on the world we live in. Our banks are important and valuable partners with every business aspect in Arkansas—from agriculture, to education, to manufacturing, even, to the zoo. To paraphrase a quote from a past speech of James Bullard, President of the Federal Reserve Bank in St. Louis, “Strong Banks, Strong Communities, Strong Economy.”

The Community Banking in the 21st Century Research and Policy Conference was held recently in St. Louis. One of the research reports given at the meeting clearly showed the importance of community banks in their state’s economy. It showed the obvious, that community banks play a significant role in bringing together borrowers and lenders.

Some points to ponder were: What if there is no community bank in an area?

What would happen if our banks weren’t able to lend?

Where do the funds go after they are lent out?

That topic projected how just one year of lending inactivity by community banks could result in huge costs to the state’s economy.

ABA EXECUTIVE COMMITTEE

SEAN WILLIAMS | CHAIRMAN

It pointed out that recent increases in banking regulations were fueled by the 2007-2009 financial crisis. While the intent was to avoid another crisis in the future, the reality was that the new policies and regulations have had dramatic “unexpected consequences.” The summary was any new policies or regulations aimed at curtailing the work performed by community banks, or, the number of community banks, would have long-lasting and damaging effects on our state’s economy. Our policymakers must hear the stories of what we do for our communities. It is imperative that they understand the consequences associated with taking away the services our banks perform in our communities in Arkansas, and every other state. It is imperative that we tell our customers’ stories at every opportunity we have.

A copy of the report and video of the conference are available at https://www.communitybanking. org/.

On the next page is a report displaying the changes in our state’s banks that have occurred over the past three years.

Happy Thanksgiving.

DAVE DICKSON | CHAIRMAN-ELECT

CATHERINE OWEN | VICE CHAIRMAN

First National Bank of Wynne, Wynne

Union Bank & Trust Co., Monticello

Eagle Bank, Little Rock

JUDY LAWTON | TREASURER Heartland Bank, Little Rock

The Citizens Bank, Rogers

ROBERT Y. TAYLOR | PAST CHAIRMAN

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

ABA BOARD OF DIRECTORS

PAT ANDERSON | GROUP 5

DAVID DOWD | GROUP 1

JON HARRELL | GROUP 3

JERRY MORGAN | GROUP 1

Simmons Bank, Pine Bluff

Cross County Bank, Wynne

Generations Bank, Rogers

Focus Bank, Jonesboro

PHIL BALDWIN | GROUP 2

TROY DUKE | GROUP 5

DARWIN HENDRIX | GROUP 4

RANDY SCOTT | GROUP 1

Citizens Bank, Batesville

Gateway Bank, Rison

Bank of Delight, Delight

Farmers Bank & Trust Co., Blytheville

JIM CARGILL | GROUP 2 Arvest Bank, Little Rock

DON GIBSON | GROUP 3 Legacy National Bank, Springdale

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

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

GENE CRAWFORD | GROUP 5

CHRIS GOSNELL | GROUP 4

CRAIG MOBLEY | GROUP 4

LYNN WRIGHT | GROUP 2

First National Bank of Crossett, Crossett

Farmers Bank & Trust Co., Magnolia

First Financial Bank, El Dorado

SCOTT HANCOCK | GROUP 3

WILSON MOORE | GROUP 2

Centennial Bank, Fayetteville 4

PRESIDENT & CEO BILL HOLMES

The TheArkansas ArkansasBanker Banker || November November2016 2016

Bank of America, Little Rock

Regions Bank, Little Rock

Arkansas Banking Facts 6/30/2014

6/30/2015

6/30/2016

ARKANSAS FINANCIAL INSTITUTIONS Total number of Financial Institutions (FI) in Arkansas

137

129

127

FIs headquartered out-of-state

23

21

23

FIs headquartered in Arkansas

114

108

104

$53.81 B

$56.49 B

$60.77 B

Total AR deposits for out-of-state banks

$13.01 B

$13.90 B

$13.60 B

Total AR deposits for banks headquartered in Arkansas

$40.80 B

$42.59 B

$47.17 B

1,388

1,365

1,354

5

6

6

$17.22 B

$22.28 B

$25.45 B

6

7

10

$4.67 B

$5.17 B

$7.34 B

103

95

88

Total AR deposits for these banks

$18.36 B

$15.14 B

$14.38 B

Average size of these banks

$183.6 M

$159.1 M

$163.41 M

$18.4 M

$14.1 M

$13.32 M

State

Offices

Deposits

Market Share

AR

117

$7,674,575

12.63%

Total Deposits of Arkansas

Total number of offices in Arkansas

ARKANSAS CHARTERED BANKS Number of banks over $1 billion in deposits Total AR deposits for these banks Number of banks with deposits greater than $500 million, and less than $1 billion Total AR deposits for these banks Number of banks with deposits less than $500 million

Smallest bank headquartered in Arkansas

20 LARGEST BANKS, BY DEPOSITS, IN ARKANSAS Bank 1

Arvest Bank

2

Bank of the Ozarks

AR

23

$5,417,588

8.91%

3

Bank of America

NC

23

$4,193,480

6.90%

4

Regions Bank

AL

95

$4,127,862

6.79%

5

Centennial Bank

AR

80

$3,819,469

6.28%

6

Simmons Bank

AR

85

$3,697,837

6.08%

7

First Security Bank

AR

77

$3,616,454

5.95%

8

BancorpSouth Bank

MS

46

$1,637,464

2.69%

9

Bear State Bank

AR

35

$1,226,888

2.02%

10

Iberiabank

LA

23

$1,162,085

1.91%

11

First National Bank of Fort Smith

AR

18

$976,082

1.61%

12

U.S. Bank

OH

42

$949,167

1.56%

13

Farmers Bank & Trust (Magnolia)

AR

20

$936,693

1.54%

14

First National Bank (Paragould)

AR

14

$863,680

1.42%

15

The Farmers & Merchants Bank

AR

19

$811,880

1.34%

16

First Community Bank (Batesville)

AR

13

$789,037

1.30%

17

Southern Bancorp Bank

AR

24

$763,909

1.26%

18

Wells Fargo Bank

SD

3

$615,417

1.01%

19

The Citizens Bank

AR

18

$569,168

0.94%

20

Chambers Bank

AR

18

$552,788

0.91%

Source: FDIC Summary of Deposits, June 30, 2016

November 2016 | The Arkansas Banker

5

GOVERNMENT RELATIONS

Every Major Problem You Have Boils Down to Politics The American Bankers Association recently hosted their annual State Issues Summit in Chicago; there, Bank Association members from around the nation gathered at round-tables to compare stories and strategize for a better tomorrow. These brain-storming sessions are conducted in person every year in order for us to help you, our bankers.

During one session we shared ideas regarding participation; a GR leader pointed out that every major problem facing banks today was caused, or can be solved by politics. That statement may be too simplistic for some instances; however, issues in the banking industry frequently boil down to a political vote here or an election there. Everyone recalls the passage of Dodd-Frank as an example. Another instance is the political struggle to come to terms with the Department of Labor’s Fiduciary Rule that takes effect December 1. There may be some potential reprieve during the next Congressional session. However, that boils down to the who, where, what, and when of politics.

While our elected officials are aware of our need for regulatory relief, we have to keep pushing and must remain engaged in the political process.

Our Government Relations team is currently focused on fundraising as we continue to travel the state to visit with bankers and bank boards. During those meetings, I explain our activities, what fundraising means to bankers, and what we do with contributions. No bank is too far for us to travel and no amount of face-time too short. Our presentations typically last 10 minutes, but may last longer, depending on questions.

Our Federal PAC, branded as ABA BankPAC, is associated with American Bankers’ Federal PAC. This partnership enables us to essentially double our contributions to our Federal Delegation with a proven record of bank industry assistance and advocacy.

Bankers are responding to our call. We raised over $12,000 in September. We need to raise $50,000 to remain relevant and help BankPAC for the coming years.

Another important issue we discussed with our fellow Bank Associations was political fatigue. We have great years, we have great sessions, and we—as with everyone—have defeats. We can never stop. ABA was founded in 1891 as a way for Arkansas bankers to have one voice. For over 125 years, we have pushed, pulled, prodded, and fund-raised with our bankers. Banker frustration with federal regulatory relief is warranted; I wish we could coin another phrase for over-burdensome regulation. What we cannot do is become apathetic.

We at ABA are your cheerleaders—our business is your success. The BankPAC campaign is well underway. Our website will answer a lot of your questions concerning how BankPAC works. Your issues are our issues. Nearly every problem you have boils down to politics. Give us a call; we are here to help.

6

The Arkansas Banker | November 2016

VP / DIRECTOR OF GOVERNMENT RELATIONS AVA F. ROBERTS

ABA Live Events ABA Professional Development

Live Events...

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

JANUARY 2017 10

| Loan Assistants & Processors Workshop

Crowne Plaza, Little Rock Who Should Attend: Loan Assistants and Loan Processors, Credit Administration Supervisors, and other members of the bank’s loan support staff with credit administration responsibilities

11

| Asset-Based Lending

15

| Call Report Preparation Update

9

| Basic Personal & Business Tax Return Analysis

Crowne Plaza, Little Rock Who Should Attend: CEOs, Chief Lending Officers, Commercial Lenders, Credit Administration Supervisors, Credit Analysts, and loan review staff

FEBRUARY 2017 1

| Human Resources Conference

7

| IRA Advanced Update & Review

Embassy Suites, Little Rock Who Should Attend: Human Resources Professionals & Consultants, Human Resources Compliance Officers, Training Specialists, Branch Managers, Community Bank CEOs, and Bank Legal Counsel

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

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

MARCH 2017 6 | Best Practices for Real Estate & Commercial Lending

Holiday Inn Presidential, Little Rock Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists, Branch Managers, Private Bankers, and Business Development Officers

Little Rock Who Should Attend: Commercial Lenders, Credit Analysts, Consumer Lenders, Loan Documentation Specialists, Branch Managers, Assistant Branch managers, Private Bankers, and Business Development Officers

8 | Key Ratio Analysis: Calculating the Numbers Correctly

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

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

November 2016 | The Arkansas Banker

7

EMERGING LEADERS UPDATE Advocacy Made Easy

The definition of advocacy according to Webster Dictionary is “the act or process of supporting a cause or proposal.” As there are literally thousands of great causes we can help and use our voices to support, let’s not forget about our own banking industry. I know I have talked about the Arkansas Bankers Association trips to Washington DC to visit with our congressional leaders, and how important that is for our industry…so I won’t get into that trip this time.

I have had the opportunity to work in small communities (Lonoke and Cabot) and understand how important bankers are in those communities. Most of the Kiwanis Clubs, Lyons Clubs, Chambers of Commerce, local athletic booster clubs, Rotary Clubs, etc. all have the local bankers involved in one way or another. All of these organizations (and I realize I left out countless more) serve a need in each of your communities. This is a great opportunity for us, as bankers, and advocates for the banking industry to help educate our communities about the industry. Since 2008, banking has gotten a bad rap due to very large banks/Wall Street, and again recently with the Wells Fargo issues that arose. The Arkansas Bankers Association and the American Bankers Association have made it easy for us to help communicate to our communities the truth about Arkansas community banking. They call it “Bankers Speak Up.” The American Bankers Association website (www.aba.com/Advocacy/speakup/Pages/default.aspx) offers six different avenues that allow bankers to “Speak Up,” giving us a grassroots communication method to help send our positive message about banking to our customers, the media, and our policymakers. The five areas are: Speak to a Local Group: As I mentioned above, in all sized communities’, bankers get the opportunity to speak to civic clubs, schools, and social groups. The “Bankers Speak Up” section provides presentations bankers can use on multiple subjects ranging from data breaches to the Business of Banking or the State of the Economy. It also provides sample letters bankers can use to request speaking opportunities.

Send E-Mail to Congress: Sending a clear and concise e-mail is a great way to let Members of Congress and other stakeholders know about banking issues that affect them. Though your Representative may not read every e-mail, the volume of e-mails he or she receives will speak to the gravity of the issues at hand. Use this system to send your e-mail on each of our current action alerts. Make sure to customize your introduction and closing to reflect your bank, community, and your relationship with your customers.

Meet With Your Representative: I have a group of friends not in the banking community who love to talk politics...and mostly complain. Each time this group starts this up, I make a point to ask them if they have taken the time to reach out their Representatives to talk about these issues they complain about...and 100% of the time the answer is “no”. With the “Bankers Speak Up” tool, the site gives us all multiple resources how to meet with our congressional leaders face to face, how to host your member of congress in your bank, the do’s and don’ts of the visit, a sample invitation, bank visit checklist, and how to best leverage that bank visit.

Engage the Media: People may watch the national news, but they read local news. It’s what they care about most. Engaging with local newspapers, radio and TV is an effective way to communicate your bank’s message to a larger audience, as well as play a key role in your reputation building effort. Here, you can learn how to conduct interviews and get added into breaking stories.

Leverage Social Media: The banking industry policymakers and all but a few Members of Congress are engaged on social media platforms such as Twitter and Facebook. The “Bankers Speak Up” section gives us sample tweets we can all use to talk about several subjects from Cybersecurity to Credit Unions. It also gives a tips/guidelines sheet to help you structure your social media post the best and most effective way.

So, the next time you’re in your local civic organization monthly or weekly meeting, and they ask who knows of a speaker for the next meeting you can raise your hand and feel confident you can find a subject you can talk about. And next time an important issue comes up to Congress that is important to your community and bank, you will know right where to go to send an e-mail to our lawmakers or even get a meeting with your Representative.

8

The Arkansas Banker | November 2016

ELS PRESIDENT BLAKE FLETCHER SVP / Senior Lending Officer Stone Bank, Little Rock

ABA Webinars ABA Professional Development

Webinars...

Provide the option of training as many employees as you wish for one price, all from the convenient location of your home institution!

TUESDAY, NOVEMBER 29

THURSDAY, DECEMBER 8

TUESDAY, DECEMBER 20

Teller Compliance Issues: CTRs, Reg CC and Checks 10:00 a.m. - 12:00 p.m.

Lending Compliance: 2016 Year-End Wrap Up 1:30 p.m. - 3:30 p.m.

Assessing Diversity Policies & Practices: Final Interagency Statement 1:30 p.m. - 3:30 p.m.

Regulation E Error Resolutions and Disputes 1:30 p.m. - 3:30 p.m.

FRIDAY, DECEMBER 9

Accounting Principles for Lenders 10:00 a.m. - 12:00 p.m.

WEDNESDAY, NOVEMBER 30 SSN, EIN & ITINS & IRS Deposit Reporting 1:30 p.m. - 3:30 p.m.

THURSDAY, DECEMBER 1 IRAs: Way Beyond the Basics – Beneficiaries & Distributions 10:00 a.m. - 12:00 p.m.

TUESDAY, DECEMBER 6 Understanding Commercial Loan Documentation 1:30 p.m. - 3:30 p.m.

Ten Simple Rules for Tellers To Save You Thousands 10:00 a.m. - 12:00 p.m.

WEDNESDAY, DECEMBER 7 7 Habits of Highly Successful Supervisors 1:30 p.m. - 3:30 p.m.

Excel Made Clear: Introduction To Spreadsheets 10:00 a.m. - 12:00 p.m.

IRA Audit and Compliance 10:00 a.m. - 12:00 p.m.

TUESDAY, DECEMBER 13 Core Management Skills 1:30 p.m. - 3:30 p.m.

WEDNESDAY, DECEMBER 14 IRS Information Reporting: What You Need To Know 10:00 a.m. - 12:00 p.m.

E-Sign Compliance and the Account Life Cycle 1:30 p.m. - 3:30 p.m.

THURSDAY, DECEMBER 15 Compliance Perspectives: A Monthly Update 1:00 p.m. - 2:00 p.m.

Officer Calling: Prospecting, Preparing, & Presentation 1:30 p.m. - 3:30 p.m.

Opening Deposit Accounts for Minors 10:00 a.m. - 12:00 p.m.

FRIDAY, DECEMBER 16

WEDNESDAY, DECEMBER 21 Notary Public 10:00 a.m. - 12:00 p.m.

TUESDAY, JANUARY 10 Best-Ever Compliance Checklists for Consumer Loans 1:30 p.m. - 3:30 p.m.

WEDNESDAY, JANUARY 11 CRA Nuts & Bolts: Five Steps to Pass the Exam 1:30 p.m. - 3:30 p.m.

Opening Accounts for Nonresident Aliens 10:00 a.m. - 12:00 p.m.

THURSDAY, JANUARY 12 Dealing with Subpoenas, Summonses, Garnishments, Tax Levies, Etc. 10:00 a.m. - 12:00 p.m.

Handling Loan Applications: What Can Go Wrong?

1:30 p.m. - 3:30 p.m.

BSA Year End Round Up 10:00 a.m. - 12:00 p.m.

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

November 2016 | The Arkansas Banker

9

WASHINGTON UPDATE How Banks Can Tackle the Student Debt Crisis

More than almost any other issue, student debt is driving whether and how your younger customers engage with your bank. With more than $1.26 trillion in outstanding student loans—nearly five times what it was in 2004—and seven in 10 of new college graduates having some amount of student debt, a huge share of your customer base is financially strapped. The average recent college graduate spends nearly one-fifth of her salary on repaying debt, and most expect to have student loan debt well into their 40s.

Sixty-three percent say their debt prevents them from buying a car or similarly large purchase, and 75 percent say it hinders them from saving for and buying a home. High student debt levels also limit young people’s ability to take on debt to start and grow small businesses. And given the outsize role of small businesses in creating jobs, the student debt wave could be washing away future economic growth and opportunities.

ROB NICHOLS

President & CEO American Bankers Association

How will young Americans move into the financial products that are the bread and butter of relationship banking—home loans, HELOCs, small business loans, credit cards and car loans—if they are spending so much to repay their college or grad school debt? Ultimately, many of them won’t.

Imagine the economic growth that could be unleashed if young Americans had hundreds of billions of extra dollars to invest in starting businesses, to save for their futures and to buy new homes and cars.

Banks had nothing to do with the quintupling of student debt, which took place over a period when the federal government essentially took over the student loan market. But this debt is preventing our young customers and employees from achieving their financial goals and developing deeper, lifelong relationships with their banks. We need to act.

First, we are encouraging companies to help their employees tackle their debt. It can be hard to justify saving for retirement when you have tens of thousands of dollars outstanding at 8 percent. Paying down debt offers the surest return many young Americans can find in the market, and it’s a great way to attract—and retain—young talent. At the American Bankers Association, we recently launched a student debt repayment benefit, contributing up to $1,200 per year toward any employee’s student loans.

Second, AmBA, with the assistance of our Endorsed Solutions Banker Advisory Council, is evaluating companies that offer student debt repayment benefit solutions that banks can offer to their employees.

While just 4 percent of employers nationwide offer such a benefit, more than 80 percent of millennials say this kind of benefit would be a “deciding factor” or make a “considerable impact” in whether they take a job or stay with an employer.

Second, we are exploring legislation to change the way student debt repayment is taxed—with a goal of helping borrowers get out of debt sooner so they can more fully engage with you. When the new Congress convenes, we will be working with lawmakers to develop this proposal.

Third, we are training bankers and offering resources for our members’ customers to help them understand student debt and its implications—and learn what restructuring and refinancing options might be available to them.

Student debt and the cost of college are the single biggest financial worry for Americans under 40. In partnership with AmBA and your state associations, America’s banks are tackling this problem and positioning student borrowers to make the transition to adulthood a little sooner.

10

The Arkansas Banker | November 2016

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

AmBA Training ABA Professional Development

AmBA Training...

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The Banking Industry

General Accounting

CTFA Online Review Course

11/28/2016 - 12/23-2016

1/3/17 - 4/21/17

2/6/17 - 4/28/17

Bank Lines of Business

Building Customer Relationships

Analyzing Financial Statements

12/5/2016 - 1/6/2017

Building Customer Relationships

1/9/17 - 2/24/17

2/13/17 - 6/2/17

Consumer Lending

Bank Lines of Business

12/5/2016 - 1/6/2017

1/9/17 - 4/28/17

2/13/17 - 3/10/17

Consumer Lending

The Banking Industry

12/5/2016 - 3/31/2017

1/17/17 - 2/10/17

Building Customer Relationships

CRCM Online Review Course

Bank Lines of Business

12/12/2016 - 2/24/2017

1/23/17 - 2/10/17

Fundamentals of Mortgage Lending

Analyzing Bank Performance

12/12/2016 - 1/27/2017

1/30/17 - 3/17/17

2/13/17 - 3/10/17

General Accounting 2/13/17 - 6/2/17

The Banking Industry 2/21/17 - 3/17/17

The Banking Industry

Building Customer Relationships

Consumer Lending

12/19/2016 - 1/20/2017

1/30/17 - 2/24/17

2/21/17 - 6/9/17

Analyzing Financial Statements

Law and Banking: Principles

Bank Lines of Business

1/30/17 - 5/19/17

2/27/17 - 3/24/17

The Banking Industry

Managing, Funding, Liquidity, and Capital

Building Customer Relationships

1/3/2017 - 1/27/2017

1/30/17 - 3/10/17

2/27/17 - 3/24/17

Bank Lines of Business

The Banking Industry

1/3/17 - 1/27/17

2/6/17 - 3/3/17

Introduction to Agricultural Lending

1/3/2017 - 4/21/2017

Building Customer Relationships

Commercial Lending

2/27/17 - 4/21/17

2/6/17 - 4/28/17

1/3/17 - 1/27/17 For more information about AmBA Training, log on to www.arkbankers.org or call 501.376.3741

November 2016 | The Arkansas Banker

11

Emerging Leaders

Day

at the

Capitol 2016 On Thursday, October 20, about 30 Emerging Leaders met at the Arkansas State Capitol for ABA’s biennial Day at the Capitol event. The morning began with an immersive tour of the building with Capitol Historian Dr. David Weare.

Dr. Weare’s enthusiasm and extensive historical knowledge resonated with attendees.

The group then settled down in the Senators’ chairs in the Senate Insurance and Commerce committee room for panel discussions. ELS members first heard from House Leadership about what it means to be in the Arkansas House of Representatives,

Click here to see more photos from the Day at the Capitol!

Attendees of the Emerging Leaders Day at the Capitol pose with Miss America Savvy Shields and Miss Arkansas Savannah Skidmore on the staircase of the State Capitol building during their tour on Thursday, October 20.

the mechanics of bill drafting, and insight on the upcoming 2017 Regular Legislative Session. Speaker ProTempore, Jeremy Gillam, Assistant Speaker Pro-Tempore Warwick Sabin, and Revenue and Tax Chairman Joe Jett candidly answered our questions and directly engaged with Emerging Leaders in this lively discussion.

Next up, Treasurer Dennis Milligan spoke to attendees about the innerworkings of the Treasurer’s office and explained some programs available

to all Arkansans through his office.

Most of us had no prior knowledge of these programs. His engaging remarks sparked several questions and a discussion on the role of Arkansas banks and the Treasurer’s office.

The second panel of the morning consisted of President Pro-Tempore, Senator Jonathan Dismang, Assistant President Pro Tempore–1st District, Senator Eddie Joe Williams, and Chair of Senate Rules, Resolutions, and Memorials, Senator Bruce Maloch.

Revenue and Tax Chairman Joe Jett, Speaker Pro-Tempore Jeremy Gillam, and Assistant Pro-Tempore Warwick Sabin discussed what it means to be a member of the Arkansas House of Representatives.

President Pro-Tempore Jonathan Dismang, Chair of Senate Rules, Resolutions, and Memorials Bruce Maloch, and Assistant President Pro-Tempore Eddie Joe Williams discuss their roles in the state Senate.

12

The Arkansas Banker | November 2016

Attendees

Dr. David Weare gave attendees an in-depth tour of the Arkansas State Capitol, including some interesting historical facts and details.

NATALIE BARTHOLOMEW

First National Bank of NWA, Rogers

JOHN AHLEN, IV

Arkansas State Bank Department, Little Rock

RALPH BRADBURY

Arvest Bank, Little Rock

BROCK FERGUSON, RYAN MOORE Centennial Bank, Jonesboro

GREG MCCARROLL

Centennial Bank, Little Rock

LANDI MKHIZE

Emerging leaders wind down in the Senate Insurance and Commerce Committee room before hearing panel discussions from members of the House and Senate.

Chambers Bank, Springdale

GEORGE PURVIS

Cornerstone Bank, Eureka Springs

BRANDON GENTRY

Cross County Bank, Wynne

JOSH DENNIS, ADAM GILBERT, ERIC ROBERTS DD&F Consulting Group, Little Rock

BLAKE JOHNSON

Evolve Bank & Trust, Jonesboro

RACHAEL SCHWARTZ

Farmers Bank & Trust, Texarkana Each Senator discussed his role in the Senate and explained in-session procedures with participants. Attendees received first-hand knowledge of the inner-workings of the Capitol’s politics during and between sessions.

An important matter we at ABA hope resonated with each of our ELS attendees is the importance of constituent efforts.

Constituent efforts are very similar to grassroots efforts—your first-hand knowledge of the industry and your position as a voting individual makes all the difference in the mindset of our state elected representatives. Each panelist

“

EDUARDO ABRIL

offered insight to the importance they place on hearing from someone in their hometown. Become part of the action— reach out to the GR Division so we help you foster your relationship with your Senator or Representative. You can commit a small amount of time to make a huge impact on the continued success of ABA at the State Capitol.

First State Bank of DeQueen, DeQueen

JOHN BONAMINIO, KARRAH PARTIN Heartland Bank, Little Rock

JAMES LYLE

McGehee Bank, McGehee

PRICE BONEY

Merchants & Farmers, Dumas

We invite you to join us at Coffee and Committee where you will have another opportunity to immerse in State Capitol politics and meet your Representative or Senator. These events take place in January and February, so watch for notices.

JOHN THOMAS ANDERSON Relyance Bank, Pine Bluff

JOHN BOLLINGER

Simmons Bank, Fayetteville

ANDREW CARROLL, BURT HICKS Simmons Bank, Little Rock

BLAKE FLETCHER, KELLY WILLIAMS

As a new member of the ABA Emerging Leaders Section, I thoroughly enjoyed the opportunity to not only network with my peers across the state but also to the ability to interact one on one with our state legislators.

It is important for us as community bankers and as their constituents to voice our concerns and educate them on what issues we face day to day on the front lines.

Natalie Bartholomew First National Bank of NWA, Rogers

Stone Bank, Little Rock

ROBERT HARGIS

The Citizens Bank, Monticello

SANDY STARNES

The Citizens Bank, Batesville

ZACK PRICE

The First National Bank of Wynne, Harrisburg

HUNTER WINDLE, LAUREN MCCLARD The Malvern National Bank, Malvern

RANDY RAWLS, PATRICIA WILKINSON Union Bank & Trust Company, Warren

November 2016 | The Arkansas Banker

13

Banks Using Captives

for Enterprise Risk Management

in Increasing Numbers

ABOUT THE AUTHOR

Josh Miller works with over 200 community banks throughout the country, managing their investment subsidiary structures and captive insurance companies. After years of development, KeyState’s bank captive program is the largest and fastest growing bank captive program in the country. Josh is an active member and/or board member of the Nevada Captive Insurance Association, Delaware Captive Insurance Association, and the Self Insurance Institute of America’s Enterprise Risk Committee.

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There is no avoiding it. Cyber security and reputation protection are among today’s significant, emerging risks, thus creating exposures for banks of all sizes. At the same time, commercial insurance carriers are pushing banks to higher deductibles, so there remain significant gaps in coverage and exclusions in commercial insurance policies. This creates unfunded risks, which must be evaluated as a part of any bank’s enterprise risk management process.

It’s evident that bankers know not all enterprise risk is addressed with their commercial insurance package.

To address the concerns, banks throughout the country are forming captive insurance companies — known as captives — to cover these unfunded risks.

A captive is a legally licensed, limited purpose, property and casualty insurance company, which can write customized policies for related entities.

While larger institutions (typically $5bn in assets and larger) with specific organizational structures (i.e., lots of charters) have been utilizing these types of captives since 2006, captives really did not take hold for mid-size community banks ($250mm - $5bn) until an updated

The Arkansas Banker | November 2016

structure was designed and vetted with regulators in 2012.

“Since late 2012, we have seen the number of banks with captives explode.

The majority of our banks that are good candidates for owning a captive either

have one in place or are in process of putting one in place,” said CEO of Indiana Bankers Association, Joe Dehaven.

“We have been discussing bank captives with other state banking associations throughout the country and there’s been tremendous interest.”

It is important to recognize that the captive structure does not typically replace a bank’s primary commercial insurance program. However, it does allow a bank to more formally self-insure risks that are currently unfunded or that the bank has considered retaining (i.e., increased deductible layers). Typically, the captive augments commercial policies in the following ways: Covers the bank’s commercial deductible layers Provides “difference in conditions” coverage for existing commercial policies, which primarily relate to sublimits and exclusions on the commercial policy form Increases coverage levels on existing policies (excess layers) Identifies other currently unfunded risks to insure where commercial insurance is not available to the bank.

Along with benefits received from enhancing a bank’s risk management process, Congress approved a small business incentive for mid-size companies that form their own insurance companies to insure these currently unfunded risks.

Through the incentive, banks can form their own captive insurance companies and then make an election under Section 831(b) of the Internal Revenue Code.

This allows companies to pre-fund for potential future risks on a tax advantaged basis, provide an incentive to set money aside for future potential claims and create a mechanism for companies to formalize their current self-insurance program.

In the December 2015 Appropriation Bill, Congress moved the annual allowable premium limit from $1.2 million to $2.2 million for the tax years after 2016. Financial institutions with larger baskets of unfunded risks will be able to continue to grow their captive over time as the institution grows organically or with acquisitions and the small business incentive will also grow.

The potential savings related to this small business subsidy (Section 831b) for captives varies from bank to bank, but they can be significant. In some cases, holding companies can see an increase to earnings per share of 3-5%.

Of course, this solution is not a fit for every bank. This solution should only be implemented by banks with sufficient capital and earnings.

Holding companies that want to form a captive must be well managed and well capitalized and their affiliated bank that pays premiums into their captive must have sufficient capital and earnings to support the additional insurance expense at the bank level.

Captive insurance companies are a growing trend for high performing banks throughout the country. As banks become more aware of their unfunded risks through ongoing enterprise risk management, the captive offers a unique and customized approach to identify and fund for those risks on an annual basis. And, the significant small business incentive provided under Section 831(b) of the tax code provides further motivation to implement the structure.

Banks with an interest in exploring whether a captive insurance company is a good fit for their institution should contact Josh Miller at jmiller@key-state. com or Bill Holmes at bill.holmes@ arkbankers.org. Currently over 24 state banking associations throughout the country have endorsed bank captive programs for their members.

November 2016 | The Arkansas Banker

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2016 Fall Conferences

Agricultural Lending Conference

Dan Maternach speaks to bankers about the “financial health” of farming in Arkansas during the 2016 Agricultural Lending Conference on October 12-13.

More than 60 bankers were in Little Rock October 12-13 for the annual Agricultural Lending Conference to find out what’s on the horizon for agricultural banking in Arkansas and across the country.

Speakers included Steve Apodaca, American Bankers Association; Wayne Beaty, 4-B Financial Consulting; Thomas Blackmon, Blackmon Auctions; John Blanchfield, Agricultural Banking Advisory Services; Michael Hinze, Blackmon Auctions; Vicki Kraai, InterAction Training; Dan Maternach, Perfect Fit Presentations; Ben McMahan, Federal Reserve Bank of Kansas City; Bill Miller, Farmer Mac; and Arkansas Secretary of Agriculture Wes Ward.

The event also featured a Legislative Panel with Senator Bruce Maloch, District 12; Representative Ken Bragg, District 15; Representative Dan Douglas, District 91; and Representative DeAnn Vaught, District 4. The state lawmakers weighed in on legislation’s effect on agricultural businesses and loans, and gave some insight on the next regular session, set to begin in January 2017.

Ag lenders from across the state listen in as Arkansas Secretary of Agriculture Wes Ward opens the 2016 Agricultural Lending Conference with a brief statewide industry update.

Click here to see more photos from the Agricultural Lending Conference!

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The Arkansas Banker | November 2016

Trust & Wealth Management Conference The ABA held its annual Trust & Wealth Management Conference on November 2-3 in Hot Springs with 62 bankers in attendance.

The group heard presentations on a variety of topics—from nonverbal communication to new IRS regulations regarding entity valuations and a legislative update from the American Bankers Association.

Click here to see more photos from the Trust Conference!

Longtime communicator Bill Acheson spoke to attendees about the “hidden messages” in nonverbal communication. He gave insight on how to use posture, facial expressions, voice, and touch to impact face-to-face communication.

Mark Kapshandy and Rex Kyle of First Security Bank chat during a break.

Featured speakers included Bill Acheson; Chuck Bruney, Align FSC; Bryant Cranford, Rose Law Firm; Brad Davidson, Spardata; Kevin Hansen, Principal Financial Group; Cristeena Naser, American Bankers Association; Luke Ramsey, The ASA Group; John Shram, Winburn, Mano, Schrader & Shram, PLLC; Jennie Clark Stewart, Kutak Rock, LLP; and Dan Young, Rose Law Firm.

Kevin Hansen of Principal Financial Group talks to bankers about reaching investors across three generations: Baby Boomers, GenXers, and Millennials.

November 2016 | The Arkansas Banker

17

2016 ABA BankPAC

Golf Tournament

The ABA held its second annual ABA BankPAC Golf Tournament on Monday, October 24, at the Pleasant Valley Country Club in Little Rock. There were approximately 84 golfers in attendance from across the state

Taking first place honors was the team of Patrick Anderson, Simmons Bank, Pine Bluff; Andrew Carroll, Simmons Bank, Little Rock; Daniel Robinson, Simmons Bank, Jonesboro; and Robert Robinson, Simmons Bank, El Dorado.

Coming in second was the team of Bill Lynch, Chris Pledger, Eddie Ramsey and Lee Welfel, all of Eagle Bank, Heber Springs.

Rounding out the top three was the team of Scott Barrilleaux, Kyle Colwell, Scott Saffold, and Trent Scogin, representing Union Bank & Trust, Monticello.

Bankers from across the state get ready to roll at the 2016 ABA BankPAC Golf tournament held October 24 at the Pleasant Valley Country Club in Little Rock.

Brad Smith, Farmers Bank & Trust, Magnolia; Jeff Whitener, Farmers Bank & Trust, Magnolia; Scott White, Farmers Bank & Trust, Malvern; and Monty Harrington, Farmers Bank & Trust, Magnolia.

Gary Edwards, Ernie Skyrme, Hunter Coles, and Wade Luethy, all of, BKD, LLP, Little Rock.

Click here to see more photos from the 2016 ABA Golf Tournament!

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The Arkansas Banker | November 2016

Keith Collard, Mark Wilson, Mike Dietz, and Jake Short, all of First Arkansas Bank & Trust, Jacksonville.

Grant Gordy, First National Bankers Bank, Little Rock; Boris Dover, First Community Bank, Batesville; Renee Julian, First National Bankers Bank, Little Rock; and Dale Cole, First Community Bank, Batesville.

PROFESSIONAL DEVELOPMENT

12 Graduate from ABA Basic Lending School

The ABA’s annual Basic Lending School was held October 2-6 at the Holiday Inn Presidential in Little Rock with 12 bankers from across the state in attendance.

Graduates included Jason McGee, Centennial Bank, Russellville; Haley Murray, Centennial Bank, Dardanelle; Chris Meador, Cornerstone Bank, Berryville; Christy Martin, First National Bank of Crossett, Hamburg; Matthew Carter, First Service Bank, Greenbrier; Tracy Livingston, First Service Bank, Greenbrier; Tanner Hooper, Gateway Bank, Malvern; Samuel Carlton, Generations Bank, Fayetteville; Jordan Brown, One Bank & Trust, Little Rock; Charlotte Gibson, Simmons Bank, Ozark; Jessica Simmons, Simmons Bank, Charleston; and Mitch Stone, State Bank, DeKalb, Texas.

The event’s curriculum included lending compliance, collections & bankruptcy, credit risk management, financial statement & cash flow analysis, and real estate lending. Instructors were Dr. John Dominick, University of Arkansas; Shaun Harms, Bankers Assurance, LLC; John Adams, First Security Bank; Rosalind Mouser, Simmons Bank; and Joe Wessell, BancorpSouth.

November 2016 | The Arkansas Banker

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MEMBER NEWS DD&F Consulting is Awarded the Governor’s Award for Performance Excellence DD&F Consulting Group, Inc., headquartered in Little Rock, Arkansas, recently received top honors when presented with the Arkansas Governor’s Award for Performance Excellence. The award was a part of the Arkansas Quality Awards program which partners with the prestigious Malcolm Baldridge National Quality Award process. The award was presented to Randy Dennis, President of DD&F Consulting Group, by Arkansas Governor Asa Hutchison during the 22nd Annual Awards Celebration held in Little Rock in late September. Twenty-seven organizations from throughout the state participated in the program this past year.

The Arkansas Quality Awards program is open to all sizes and types of businesses, industries and government entities, and includes four award levels that require a stringent multi-year process that evaluates leadership, strategic planning, client focus, measurement analysis and knowledge

management, the workforce, operations, and results.

DD&F began the process in 2010, working through the criteria that contains core values and concepts that represent high-performing organizations.

Commenting on receiving the highest designation in the awards program, Randy Dennis stated, “When we began this process a little over five years ago, we ‘thought’ we were pretty good at what we did. Going through the Governor’s Quality Awards process quickly taught us that just thinking we were good wasn’t good enough.” He continued, “This award is something to celebrate, but it is also something we accept humbly. Our standards are higher now, as is our ability to meet them. DD&F is a better company than it was five years ago. I would encourage any organization or business that is truly committed to excellence to consider getting involved.”

DD&F Consulting Group, Inc. recently received the Arkansas Governor’s Award for Performance Excellence. Accepting the award from Arkansas Governor Asa Hutchinson was Randy Dennis, President of DD&F Consulting Group.

Top Industry Experts to Address 144th Assembly for Bank Directors in Cancun The SW Graduate School of Banking (SWGSB) Foundation will convene its 144th Assembly for Bank Directors at the Ritz-Carlton Cancun, January 26-29, 2017. Bank directors and their spouses from throughout the United States are expected to participate in a program that includes social media expert Jill Castilla, strategist Chris Nichols, economist Ed Seifried, credit risk management expert David Kemp, marketing consultant Kelly Brown, strategic planning authority Scott MacDonald, and industry insiders Chris Williston and Rogers Pope, Jr. “Director training is more critical than ever before,” SWGSB Foundation president S. Scott MacDonald, Ph.D., said. “We’ve tailored this program to the moment and entitled it ‘Powerful

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Strategies for Community Banking.’ Our faculty have crafted these presentations in answer to the many questions directors are asking about their role in this challenging environment. The 144th Assembly for Bank Directors will provide a complete overview of what lies ahead and what key steps must be taken to ensure a solid, highly profitable future.”

The Assembly will cover a number of important topics, including “Change the Story: Making Technology and Social Media Work at Your Community Bank” (Castilla); “What Directors Can Do to Prevent Their Banks from Falling Behind” (Nichols); “The Post-Election Economy: What’s Ahead Under a New President” (Seifried); “Hot Topics in Credit Risk Management” (Kemp); “Community

The Arkansas Banker | November 2016

Bank Marketing: Welcome to the New Normal” (Brown); and “Future of Community Banking” (Williston). There will be workshops on “The Director’s Economic Tool Belt” (Seifried) and “The Director’s Role in Risk Management” (MacDonald). A C-Suite panel of CEOs will address “What’s Working and What’s Not” in today’s hyper competitive financial services environment.

For Assembly registration and other information, please write, call, or e-mail: SWGSB, SMU Box 214, Dallas, Texas, 75275; (214) 768-2991; info@swgsb.org.

The SWGSB website is www.swgsb.org.

Registrations can also be made directly online at www.swgsb.org/directors.

BANKER NEWS & MOVES ARKANSAS BANK DEPT

APPLICATIONS & APPROVALS

Branch Bank Application An application filed by Stone Bank, Mountain View, Stone County, Arkansas, to establish a branch banking facility at 1302 Highway 6265, Harrison, Boone County, Arkansas, with a temporary branch location at 1309 Highway 62-65, Harrison, Boone County, Arkansas, until the permanent branch location is completed, has been approved.

October 13, 2016.

An application filed by First Security Bank, Searcy, White County, Arkansas to establish a branch banking facility at 1759 Airport Road, Hot Springs, Garland County, Arkansas has been approved.

October 10, 2016.

Merger Application An application to merge Citizens National Bank, Athens, Tennessee, with and into Simmons Bank, Pine Bluff, Arkansas, has been approved.

October 6, 2016.

EXAMINERS PROMOTED AT STATE BANK DEPT. The Arkansas State Bank Department has promoted Donna Dodge and Daniel Sims to Bank Senior Examiner, and Adam Chase, Kelly Davis, Wes Mathis and Wynne Morgan to Bank Assistant Examiner.

Dodge and Sims were hired by the Bank Department as commercial examiners in September 2013. Dodge has since transferred to the Department’s Information Systems examination group.

Sims is assigned to one of the Department’s two commercial examination groups based in Little Rock.

Donna Dodge received a Bachelor of Arts degree in journalism, with an emphasis in advertising and public relations, at the University of Arkansas in June 2003. Prior to joining the Department, Dodge served in several capacities at The Bank of Fayetteville, beginning in March 2007. In August 2012, Dodge was named Electronic Banking Manager at the bank.

In this position, she managed a four-person department responsible for the Automated Clearing House, wire transfer and on-line functions, in addition to the debit, ATM and credit card programs.

Daniel Sims received a Bachelor of Arts degree in business administration at Ouachita Baptist University, with an emphasis in finance, in August 2013. At the university, Sims served on the Fund-raising and Finance Committee of the Ouachita Student Foundation, established to raise funds for scholarships for current students.

While in college, Sims worked part time at Centennial Bank, Conway, as a teller, completing a loan internship and as an internal auditor.

Chase, Mathis and Morgan joined the Bank Department as commercial examiners in September 2015 and are assigned to the Department’s Northwest Arkansas Office.

Adam Chase received a Bachelor of Science degree in Emergency Management at Arkansas Tech University in May 2013. Prior to graduation, he worked briefly for the Washington County Department of Emergency Management. His

responsibilities at this agency included assisting the deputy director with daily tasks within the Emergency Operations Center. In May 2015, Chase received a Master of Science in Business Administration at Arkansas Tech University.

Wes Mathis received a Bachelor of Business Administration with a major in Finance at the University of Central Arkansas in May 2014.

During summers from 2007 to 2014, Mathis worked for Mathis Heating & Cooling, Inc., Conway.

Wynne Morgan received a Bachelor of Science in Agricultural Business at the Dale Bumpers College of Agricultural, Food and Life Sciences at the University of Arkansas in May 2010. During the summers of 2007 and 2008, respectively, he worked as a laboratory/field assistant at the University of Arkansas Rice Research and Extension Center in Stuttgart and as an intern at Riceland Foods, Inc., Stuttgart. From July 2010 to December 2012, Morgan was a product coordinator at Riceland Foods, Inc. In December 2014, he received a Master of Science in Agricultural Economics at the Dale Bumpers College of Agricultural, Food and Life Sciences.

Davis was hired as a Bank Examiner Trainee in the Bank Department’s Trust examination area in September 2015.

Kelly Davis received a Bachelor of Science in Finance at the University of Central Arkansas in December 2010. From March 2011 to March 2014, he worked in trust

operations at First Community Bank, Batesville, and as a financial adviser associate with SWBC Investment Services, a brokerage that at that time was a partner with the bank.

Prior to being hired at the Bank Department, Davis was a financial adviser with SWBC Investment Services, LLC.

FLORIDA INVESTMENT BANKER JOINS DD&F Randy Dennis, President of DD&F Consulting Group headquartered in Little Rock, has announced that Thomas Rudkin has joined DD&F as a Principal of the firm. In this position, Rudkin will be responsible for Mergers & Acquisitions and strategic business development for DD&F Consulting.

Thomas Rudkin has over 30 years of previous experience in M&A and investment banking and has completed transaction projects totaling over $7 billion. Most recently, Rudkin worked as an investment banker in Florida for FIG Partners, LLC of Atlanta with the responsibility of identifying investment banking opportunities for the firm. In addition Rudkin was active in the Florida Bankers Association and frequently provides commentary as an industry expert for banking resource trades including SNL Financial and American Banker.

Rudkin has a B.S. in Business from the University of Vermont in Burlington.

“We are very fortunate to have Tom join our firm,” stated Randy Dennis. “His expertise in mergers and acquisitions coupled with his network of contacts in Florida and the southeast will be great asset to DD&F. He will be an invaluable member of our team.”

November 2016 | The Arkansas Banker

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BANKER NEWS & MOVES ARKANSAS STATE BANK DEPARTMENT NEW HIRES The Arkansas State Bank Department has hired G. Barton Hammond as a commercial Bank Senior Examiner, and Joel Futrell and Daniel Park as commercial Bank Examiner Trainees.

Barton Hammond has been a Financial Institution Examiner with the Kentucky Department of Financial Institutions since April 2013. In this position, he served as examiner in charge of seven safety-and-soundness examinations and as a specialist in Bank Secrecy Act/Anti-Money Laundering. From January 2012 until his hiring at the Kentucky Department of Financial Institutions, Hammond served as a Dairy Auditor for the United States Department of Agriculture in Louisville, Kentucky. He was responsible for evaluating the regulatory compliance of milk production facilities.

Hammond received a Bachelor of Science in Accounting from the University of Kentucky in December 2011. In the summer of 2011, he attended the Vienna University of Economics and Business in Austria, where he studied international accounting standards and international business.

Hammond will be assigned to the Bank Department’s Northwest Arkansas Office.

Joel Futrell will be assigned to one of two commercial examination groups based in Little Rock, while Park will be working out of the Northwest Arkansas Office.

Futrell graduated in August 2016 from Central Baptist College in Conway, Arkansas, receiving a Bachelor of Business

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Administration degree with an emphasis in management.

Daniel Park received a Bachelor’s degree in Finance, with a concentration in banking, from the University of Arkansas, Fayetteville, in August 2016. From January 2015 to April 2016, he was employed by State Farm, for which he was responsible for the sale of banking and insurance products. Park was licensed as a property and casualty insurance agent and trained as a banking specialist. In June 2016, Park was hired by Simmons Bank as a retail associate, specializing in the cross-selling of bank products and customer service.

ARVEST BANK HIRES MOORE AS HUMAN RESOURCES MANAGER Arvest Bank has hired Madeline Kurrus Moore as Human Resources manager for the bank’s central Arkansas market. Moore will be responsible for all aspects of recruiting, hiring, performance management and employee relations as well as other duties.

Moore practiced law in Little Rock during the past three years and previously worked for Arvest Bank in Human Resources before attending law school.

“We are pleased to welcome Madeline back to the Arvest team where she returns with even broader experience and knowledge to support our associates and our customers,” said Jim Cargill, president and CEO of Arvest Bank in central Arkansas. “It’s always gratifying when associates want to return to your team and we are very pleased that Madeline has made this decision.”

The Arkansas Banker | November 2016

Moore is a graduate of Little Rock Central High School. She earned a Bachelor of Science in Human and Organizational Development from Vanderbilt University and a Juris Doctor from the University of Arkansas School of Law. She is a member of the Arkansas Bar Association and Henry Woods Inn of Court.

Moore sits on the advisory councils for the Arkansas Lighthouse for the Blind and Little Rock Pediatric Clinic and volunteers for Volunteers in Public Schools (VIPs) and Heart of Our House.

ARVEST PROMOTES TANYA JAMES TO VP, PRIVATE BANKING ADVISOR Arvest Bank announced today that Tanya James has been promoted to Vice President, Private Banking Advisor. In her new role, James will provide comprehensive financial solutions to private banking clients and strategically manage clients’ portfolios.

James previously was a vice president and branch sales manager for Arvest where she has worked in a number of capacities, including management positions, for 14 years.

“Tanya consistently demonstrates that she is solution-oriented for our customers and works diligently to ensure that we meet their needs and that they are satisfied,” said Jim Cargill, president and CEO of Arvest Bank in central Arkansas. “Her experience in the financial industry will be an asset to our clients and we look forward to the great work she will do for our customers in her new role.”

James has a degree in Business Management and currently is

pursuing a master’s in Business Administration from Harding University. She is a member of Saint Mark Baptist Church, the Junior League of Little Rock and Mid-town Rotary Club. James volunteers with Women and Children First and the Cystic Fibrosis Foundation.

RYAN LILLY PROMOTED AT BANCORPSOUTH Ryan Lilly has been promoted to Vice President at BancorpSouth’s Fayetteville, Arkansas branch where he serves as a commercial lender.

Lilly joined BancorpSouth in 2013 after serving as the Chief Financial Officer for a Benton County nonprofit agency. He also has extensive experience in commercial lending with other area financial service institutions.

Lilly holds a Bachelor’s Degree in Business Administration from the University of Arkansas and an Executive MBA from Tulane University. He serves as a board member of the Northwest Arkansas Appraisers Section.

“Ryan is an outstanding loan officer who does a great job serving our customers and contributing to the growth of this important BancorpSouth market,” said Jim Patridge, President of BancorpSouth’s West/South Arkansas Division.

SALUTE TO VETERANS The ABA would like to Salute the following veterans not recognized in our October issue: James Jackson, Simmons Bank Gekisha Shaw, Simmons Bank

BANKER NEWS & MOVES

INDEX OF ADVERTISEMENTS CNA Insurance Services

www.cna.com/communitybanks

2

Graduate School of Banking 19 at Louisiana State University www.gsblsu.org

ADVERTISEMENTS For more information on advertising in The Arkansas Banker, please contact Traci Logsdon, Director of Communications, via email at traci.logsdon@arkbankers.org, or by phone at 501.978.3603.

FNBC BANK ACQUIRES TEAM TO JOIN MELBOURNE OFFICE FNBC Bank CEO and President Marty Sellars announced the bank has successfully acquired a team of community bankers to join its existing Melbourne team. Ryan Howard, Senior Vice President and Commercial Lender, Matt Rush, Commercial Lender, and Candi Morgan, Commercial Lending Assistant, have already began transitioning to FNBC Bank.

According to Sellars, FNBC is actively seeking people and bank merger and acquisition opportunities.

more than 16 years. He is a 1994 graduate of the Melbourne School District, and attended Ozarka College and Arkansas State University in Jonesboro where he earned a Bachelor of Science degree in Business Finance.

He serves on the Board of Trustees of Ozarka College, and other community initiatives, including Men’s Adult Sunday School Teacher and Finance Committee Member at Belview Church, and the Melbourne Industrial Development Commission.

Howard and his wife, Vanessa, have two sons, Rayn and Reed, and reside in Melbourne.

Prior to joining FNBC Bank, all were employed with another bank in Melbourne. FNBC’s Melbourne office, located at 1069 E. Main Street, is led by Community President Kevin Wiles.

“This team of bankers are great examples of what community banking is all about,” said Sellars. “They are actively engaged at various levels throughout the community, and they understand the importance of building relationships that last with their clients. At FNBC, we truly know how important relationships are, and we are excited to have these three representing our brand and delivering on our promise to clients.”

“Ryan, Matt and Candi bring a wealth of experience and are highly regarded in their community,” said Executive Vice President and Chief Lending Officer Chad Hudson. “They are going to be a tremendous addition, not only to our strong lending team, but to our overall organization as we continue to strive to make positive impacts in our communities.”

Matt Rush, a native of Melbourne, received a Bachelor of Science in Management and a Master of Business Administration from Arkansas State University in Jonesboro.

He is a member of the Melbourne Lions Club, the Melbourne Industrial Development Committee, and the Ozarka College Foundation Board where he served on the Capital Campaign Steering Committee.

Rush and his wife, Amber, have two daughters, Annie and Emma, and reside in Melbourne.

Candi Morgan, an Izard County native, has over 10 years of banking experience.

She holds an Associate of Arts in General Education from Ozarka College in Melbourne. She and her husband, Mike, live in Melbourne with their kids, Colby, Paige and Kylea.

Ryan Howard has been a banker in the Izard County community for

The Arkansas

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

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2016-17 Arkansas Bank Directories now available. Contact Traci at traci.logsdon@arkbankers.org to place your order today!

November 2016 | The Arkansas Banker

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Order your new Arkansas Bank Directory today!

2016-2017

BDIREANK ARKANSAS BANKERS

The Arkansas Bank Directory

ASSOCIATION

CTORY

YOUR GUIDE TO THE ARKANSAS FINANCIAL SERV ICES INDUSTRY

Your Guide to the Arkansas Financial Services Industry!

2016-17 Arkansas Bank Directory Order Form

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The Arkansas Banker | November 2016

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