The Arkansas Banker April 2017

2017 Group Meetings

Milestones in Banking

Annual GR Summit

The Arkansas

Banker

CECL:

Your Step-by-Step

Guide to Compliance by 2020-21

Volume CI, No. 4 | April 2017 April 2017 | The Arkansas Banker

1

ABA Live Events ABA Professional Development

Live Events...

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

MAY 2017 4

| Appraisal Compliance Review

25

| Real Estate Loan Documentation

24

| Secured Loan Documentation

7 | Key Ratio Analysis: Calculating the Numbers Correctly!

13

| CyberSecurity Road Show

8

| Basic Personal & Business Tax Return Analysis

27

| Human Resources Conference

15

| Cyber Security Road Show

14

| Cyber Security Road Show

Arkansas Bankers Association Who Should Attend: Appraisal Department, Credit & Loan Officers, Loan Review Officers

Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists

Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists

JUNE 2017

Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists

The Chancellor Hotel, Fayetteville Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors.

Embassy Suites, Little Rock Who Should Attend: Human Resources Professionals & Consultants, Training Specialists, Human Resources Compliance Officers, Bank Personnel Directors, and Branch Managers

Hilton Garden Inn, Jonesboro Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors Hampton Inn & Suites, Little Rock Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors

JULY 2017 25

| Implementing the Revised HDMA Rules

Crowne Plaza, Little Rock Who Should Attend: Loan Officers, Compliance Officers, Loan Processors and Clerks, and Auditors

26-27 | Real Estate Lending Compliance

Crowne Plaza, Little Rock Who Should Attend: Compliance Officers, Loan Officers, Loan Processors, and Auditors

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

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The Arkansas Banker | April 2017

The Arkansas

Banker Volume CI, No. 4 | April 2017

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

EDITORIAL OFFICE

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

CONTENTS COLUMNS

DEPARTMENTS

ADVERTISEMENT

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

FEATURES

SUBSCRIPTION

Sean Williams Ava F. Roberts

20 Member News 22 Banker News & Moves 31 Index of Advertisements 5

2017 ABA Group Meetings

6

Milestone Bankers Honored

12 A Critical Time to Engage

with Washington:

Government Relations Summit

By Ava F. Roberts

16 Has Your Website

Become a Liability?

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

Chairman’s Column

13 Legislation & Regulation

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.

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By Hugh Patterson

18 Holding Your Data Ransom

By Jon Waldman

MAGAZINE RATES

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

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.

COVER STORY

CECL: Your Step-by-Step Guide to Compliance by 2020-21 The accounting process for loan loss reserves is soon to change dramatically. Keith Monson provides a framework for getting your bank ready.

See page 14

April 2017 | The Arkansas Banker

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CHAIRMAN’S COLUMN It’s Been an Honor and a Privilege

It’s been an honor to serve as your Chairman for the past year and a pleasure to work closely with the outstanding Arkansas Bankers Association team on behalf of our industry. The ABA team is extremely talented and passionate about serving, educating and advocating on behalf of our industry. I very much appreciate them and want to personally thank each of them for their consistent efforts and unwavering commitment to strengthening and building our industry. The past couple years have also granted me the privilege and opportunity to work closely with many of you across our state and also to develop relationships with bankers across our great nation. That opportunity has been an amazing blessing for which I am most appreciative. Banking is still built one relationship at a time, and in our state we live that every single day.

I want to take this opportunity to remind you of something you already know, that is: Our industry is one that is incredibly impactful and consequential. The challenges we face don’t just impact you and I, and our bottom lines. Our work greatly affects the viability of our communities and, therefore, our great state and all of America. Bankers, and the decisions we make, are impactful to families, friends, co-workers, customers, and even strangers. That level of impact matters, and it’s why our time to grow and build strength in advocacy is now. The winds of politics have created an opportunity, and the time to engage and to be involved is now. For the benefit of your family, your bank and your community, I encourage you to tell your story to our state and federal legislators and to others. I encourage you to share your daily challenges and success stories!

You might also make calls, write letters, or send emails so that others understand the triumphs of our industry as well as the road blocks that inhibit our economies from growing to their full potential. Your experiences matter, and there are many ways to be involved and to advocate for our industry. Ava Roberts, or other members of the ABA team, can help you get started if you’ve not already done so. We recently had a strong group of bankers in D.C. for the American Bankers Association Government Relations Summit. While visiting with our federal delegation, Jim Taylor appropriately referred to our opportunity today as a “generational opportunity.” He is absolutely correct because we now have a significant opportunity for meaningful regulatory relief. While it is difficult to precisely define that window of opportunity, there is no question that your involvement in that process is vital for a stronger and more impactful influence on lawmakers and, ultimately, the communities we serve. Rob Nichols, President & CEO of the American Bankers Association, often says, “We are stronger together”. And, it’s so true. In Arkansas, we’re certainly not all exactly the same. Our banks are various sizes, with differing goals, complexities and a wide array of personalities. But, there are many things we all share as Arkansas bankers. We’re all community bankers. Every single one of us is a community banker. We all serve our communities. We honor and keep our commitments. We stay steady in our principles and values because, in our state, our industry is built on values. And, we really are “stronger together.”

CHAIRMAN SEAN WILLIAMS President & CEO First National Bank of Wynne

Again, it has truly been my privilege to serve as your chairman the past year. Leslie and I thank you for your confidence, support and, most of all, for your friendship. Arkansas bankers are a remarkable group of people. It’s a group I’m proud to be a part of, and I enthusiastically look forward to working with Dave Dickson, Cathy Owen, Rob Robinson, Judy Lawton, and each of you on behalf of our industry for years to come.

A Legacy of Leadership 2017-18 ABA Executive Committee: Treasurer Judy Lawton, Heartland Bank, Little Rock; Past Chairman Sean Williams, First National Bank of Wynne, Wynne; Chairman Dave Dickson, Union Bank and Trust, Monticello; Chairman-Elect Cathy Owen, Eagle Bank, Little Rock; Vice Chairman Rob Robinson, Simmons Bank, El Dorado.

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The Arkansas Banker | April 2017

2017 ABA Group Meetings Held in March The Arkansas Bankers Association Group Meetings were held across the state in March, bringing together bankers for networking, and updates on the association, and to elect new representatives from each group:

GROUP 1

Jonesboro | March 17, 2017 Group Chairman

Andy Horton, Fidelity National Bank, Marion

Group Vice Chairman

Christie Patterson, Southern Bancorp, Blytheville

ABA Board Member

Jeff Brecklein, Integrity First Bank, Jonesboro

Emerging Leaders David Johnson, Section Council Member Southern Bancorp, Trumann

SCHOLARSHIPS Group 1 Lilly Niedermeier Lafe, Arkansas Attending Arkansas State University Group 3

GROUP 2

Little Rock | March 14, 2017 Group Chairman

Chip Blanchard, First State Bank, Russellville

Group Vice Chairman

Jay Wisener, First National Bankers Bank, Little Rock

ABA Board Member

Johnny Adams, First Security Bank, Conway

Calvin Campbell Fayetteville, Arkansas Attending the University of Arkansas

Emerging Leaders Ralph Bradbury, Section Council Member Arvest Bank, Little Rock

GROUP 3

Fayetteville | March 8, 2017 Group Chairman

Lance Lanier, Citizens Bank & Trust, Van Buren

Group Vice Chairman

Nathan Gairhan, United Bank, Springdale

ABA Board Member

Jason Tennant, Cornerstone Bank, Eureka Springs

Emerging Leaders Bryce Larry Section Council Member Legacy National Bank, Rogers

GROUP 4

Hot Springs | March 3, 2017 Group Chairman

Franklin Bass, Simmons Bank, Hot Springs

Group Vice Chairman

Barry Owens, Diamond Bank, Hot Springs

ABA Board Member

Lori Ross, Citizens Bank, Arkadelphia

Emerging Leaders Evelyn Wade, Section Council Member First Financial Bank, El Dorado

GROUP 5

McGehee | March 15, 2017 Group Chairman

Jim Hulse, FBT Bank, Fordyce

Group Vice Chairman

Jim Daniels, First NaturalState Bank, McGehee

ABA Board Member

David Jessup, DeWitt Bank & Trust, DeWitt

Emerging Leaders Cameron Hurst, Section Council Member Gateway Bank, Rison April 2017 | The Arkansas Banker

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Arkansas Milestone Bankers Honored Thirty longtime Arkansas bankers were honored with the BKD Milestones in Banking Awards at the 127th Annual Arkansas Bankers Association Convention on Tuesday, April 11, 2017 at the Robinson Center in downtown Little Rock, Arkansas. Awards were presented

by Gary Edwards and Michael Neathery of BKD, LLP. These bankers have a combined 1,220 years of service to their communities and the Arkansas banking industry.

This marks the third year for the Milestones in Banking Awards, sponsored

by BKD, LLP. To be eligible for the awards, bankers must have served 40+ or 50+ years in banking, and be actively employed by an Arkansas bank Hanna and Gary Canada, Bank of England, were honored for their 50 years of service to the Arkansas banking industry during the 2017 Milestones in Banking Awards ceremony. Presenting the awards were Gary Edwards (far left) and Michael Neathery (far right) of BKD, LLP.

President of the all female bank.

Ceci is a charter member of the Lockesburg Lions Club, a member of the Single Parent Scholarship Committee, and is President elect of the DeQueen Rotary Club. She formerly served on the Lockesburg City Council, the Southwest Arkansas Domestic Violence Center Board and the DeQueen Sevier County Chamber of Commerce Board.

GARY CANADA

President Bank of England

Mr. Gary Canada started his banking career as a Bookkeeper in 1967 at the Bank of England. He has since held various positions and is currently serving as the President of the Bank of England.

HANNA CANADA

Executive Vice President Bank of England

Ms. Hanna Canada started her banking career as a Bookkeeper in 1967 at the Bank of England. After a 50 year career, she currently serves as the Executive Vice President.

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The Arkansas Banker | April 2017

PHYLLIS “CECI” BETTELL

Branch President Arkansas County Bank, Lockesburg

Phyllis “Ceci” Bettell began her banking career in 1973 as a File Clerk and Proof Operator at Bank of Lockesburg, which was later purchased by Arkansas County Bank. Over the years she worked as a Teller, a Loan Documentation Specialist, and a Loan Officer for commercial, consumer, and real estate loans.

Ceci served as Vice President from 1984 to 1994, Senior VP from 1994 to 2000, and in 2000 was promoted to President of Bank of Lockesburg. In 2002, Bank of Lockesburg became a branch of Arkansas County Bank with Ceci serving as Branch

RHONDA BOEN

SVP / Branch Operations First Security Bank, Searcy

Rhonda Boen began her banking career as a bookkeeper at Farmers National Bank of Clarksville in 1977. She has since held a variety of positions ranging from Comptroller to Cashier. She has held her current position as Senior Vice President at First Security Bank since 2014.

Rhonda and her husband Rodger have one daughter and two grandchildren.

CAROYLN BOONE

New Accounts & Teller Bank of Fayetteville, West Fork

Carolyn Boone began her banking career as a teller at Bank of America in 1976. She currently serves customers in New Accounts and on the teller line at the Bank of Fayetteville, West Fork branch.

BECKY BURROUGHS

Vice President/Loan Officer Eagle Bank & Trust, Heber Springs

Becky Burroughs began her banking career in the Bookkeeping Department at Arkansas National Bank in 1976. Her first jobs included filing checks and running the proof machine. Becky later became a part-time teller along with her proofing duties, and then a full time teller before transferring to the Loan Department in the 1980s. She transferred to the bank’s Greers Ferry branch and worked as a Loan Officer and Teller for that area. When the bank opened a branch in Quitman in 1994, Becky was promoted to Regional Manager and Loan Officer for the Greers Ferry, Fairfield Bay, and Quitman. She currently serves as Vice President and Loan Officer for the Quitman and Rose Bud Branch.

GARY CLARK

Executive Vice President Fidelity National Bank, West Memphis

Gary Clark began his banking career in February of 1977 as a Loan Officer at First Tennessee Bank in Memphis, Tenn.

After banking stents in both Arkansas and Missouri, he returned to Fidelity National Bank in 1988 as Executive Vice President in the Loan Department.

Gary holds a degree in Public Administration and a Masters of Business Administration from the University of Arkansas. He has also completed numerous banking courses and schools.

He has always been an active member of the community, serving in various capacities including Chairman of the Board of Trustees of Crittenden Regional Hospital, president of the Crittenden Arts Council, president of

Phyllis “Ceci” Bettell, Arkansas County Bank, Lockesburg, was honored for 40 years of service to the Arkansas banking industry.

Gary Clark, Fidelity National Bank, West Memphis, was honored for 40 years of service to the Arkansas banking industry.

Ducks Unlimited, and longtime board member of the Crittenden County Home Builders Association. Gary also served on the national board of the Arkansas Alumni Association for six years. He is an avid duck hunter and outdoorsman.

Gary and his wife Patty enjoy spending time with their two daughters and four grandchildren, and as much time as possible at their cabin on Maddox Bay.

working as a Teller. While Valerie has worked at the same bank over the years, she notes that there have been a few name and branch location changes — The Bank of Pea Ridge charter moved to Springdale in 1989 and later became a branch of First National Bank of Rogers, which eventually became Arvest Bank-Benton County.

VALERIE COOK

Executive Vice President / Chief Loan Officer Eagle Bank & Trust, Heber Springs

Branch Administrator Arvest Bank, Benton County

Valerie Cook began her banking career at the Bank of Pea Ridge in 1977,

CATHEY COX

Cathey Cox started her banking career on December 20, 1976, at what was then Arkansas National Bank in Heber Springs (it later became Heber Springs State April 2017 | The Arkansas Banker

7

Bank and is now Eagle Bank & Trust).

She has since worked in most areas of the bank, holding positions including Bookkeeping, Teller, Customer Service, and Loan Officer. Cathey currently serves as Executive Vice President & Chief Loan Officer for the Norther Region, and Manager of Loan and Credit Administration.

She is a graduate of Southern Methodist University with a graduate degree in Banking; attended the University of Oklahoma Commercial Lending School and Arkansas State University Consumer Lending School. Cathey is a board member and vice president of the Heber Springs Area Chamber of Commerce, board member of the Heber Sp[rings Rotary, board member and past president of the United Way of Cleburne County.

Eagle Bank employees honored for 40 years of service to the Arkansas banking industry were George Penick, Cathey Cox, Becky Burroughs, and Gynelle Linder.

MARY COX

Executive Assitant Arvest Bank, Siloam Springs

Mary Cox began her banking career in the bookkeeping department at First National Bank in Siloam Springs in February of 1976...she was still in high school at the time. Her first duties included looking at signatures on checks, filing, and making statements.

After a 40+ year career, she now serves as the Executive Assistant at Arvest Bank.

BETH DILDINE

SVP/ Chief Financial Officer Cross County Bank, Wynne

Beth Dildine joined the staff of the Cross County Bank in September of 1976, starting as a teller at the bank’s North Wynne Branch. She soon moved to the bank’s main office in downtown Wynne, where she served as a New Accounts Representative and Loan Processor. In 1988, she became the Cashier, overseeing the Customer Service, Teller, and Bookkeeping Departments. In 2010, she was promoted to Senior Vice President/ Chief Financial Officer.

“Beth has worked from the ground up on every new product we have introduced, and brings a world of knowledge to our organization,” said David Dowd, Cross

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The Arkansas Banker | April 2017

Beth Dildine, Cross County Bank, Wynne, was honored for 40 years of service to the Arkansas banking industry.

County Bank President. “As our longestserving employee, we are grateful for all she does to make sure the bank runs smoothly. She is a dedicated employee and respected colleague, and we are fortunate to have her leadership.”

Her 40-year career has seen many changes and innovations in the banking industry.

“When I started, we worked from huge ledger books and paper trail balances, not computers. Technology has certainly changed the way we do banking, but we have always made the customer our priority. During my time at Cross County Bank, the customers are what make the work most fulfilling. I love my job and am grateful for the opportunity I’ve had over the years to be a part of a great organization and serve so many clients,” Beth said.

“In addition to that, I am thankful to the many mentors who believed in me and gave me so many opportunities along the way. I learned many valuable lessons from Winifred Sigman, Administrative Vice President & Cashier. Upon her retirement in 1988, President Ken McClanahan recommended me to replace her and had faith in me that I could do the job. He served as a mentor until his retirment.

And finally, Presiden/CEO David Dowd’s recommendation that I be appointed to Senir Vice President/CFO is an honor and privilege.”

Beth is a graduate from the Mid-South School of Banking.

ALAN DUNSWORTH

VICKY HANSEN

Customer Service Bank of Fayetteville

Loan Officer Bank of Fayetteville, Prairie Grove

CAROLYN ECKMAN

Assistant Vice President Fidelity National Bank, West Memphis

Alan Dunsworth began his banking career at the First National Bank of Fayetteville as an Installment Loan Teller.

He currently serves the Bank of Fayetteville in the Customer Service Department.

Branch Sales Manager Arvest Bank, North Central Arkansas

Carolyn Eckman began her banking career on October 12, 1972, at the Bank of Yellville in bookkeeping. After a 40+ year career, she currently serves as Branch Sales Manager for Arvest Bank in North Central Arkansas.

JOHN GARRISON

Chairman of the Board Relyance Bank, Pine Bluff

John Garrison began his banking career at the National Bank of Commerce in 1969; he had previously served in the U.S. Marines, and worked at Universal CIT Credit Company and Atlas Finance Company. In 1979, he was hired as President and CEO of Pine Bluff National Bank, where he served until 2006. He then became Chairman of the Board of Jefferson Bancshares. John has taken an active role in both the banking industry and his community. He served on the Arkansas Bankers Association Board of Directors from 2002-2006; is a past chairman and board member of the Jefferson County Public Facilities Board, Jefferson County Economic Alliance, and Jefferson Regional Medical Center. He is a past treasurer and board member of the United Way of Southeast Arkansas and past board member of the Pine Bluff Parks & Recreation Commission; and a Past president of the Pine Bluff Kiwanis Club.

John’s career showcases a commitment to his community and the banking industry, while successfully leading Pine Bluff National Bank through a difficult banking era.

Vicky Hansen began her banking career at the Bank of Lincoln in 1973 in the Bookkeeping Department.

After 40+ years, she now serves as a Loan Officer at the Bank of Fayetteville.

MARTHA HUNT

Martha Hunt began her banking career as an the Executive Secretary at First National Bank in West Memphis on October 11, 1976. She now serves as Assistant Vice President of Fidelity National Bank.

CINDY JUHL

Purchasing Officer Farmers & Merchants Bank, Stuttgart

Cindy Juhl began her banking career in Customer Service at Farmers & Merchants Bank in August of 1976. She now serves as Purchasing Officer at the bank.

BOB KING

Community Bank President Bank of Fayetteville, Fayetteville

Bob King began his banking career as a parttime teller at Capitol Hill State Bank in June of 1974.

After a 40+ year career, he now serves as Community Bank President at the Bank of Fayetteville.

KATHY KINION

Senior Vice President / Property Manager Arvest Bank, Fayetteville

Kathy Kinion began her banking career on April 10, 1972 in the Bookkeeping Department at McIlroy Bank. The bank was purchased by Arvest in 1986, where Kathy now serves as Senior Vice President / Property Manager.

LEE ANN KRISELL

Vice President, COD/IRA/New Accounts/EBanking Farmers & Merchants Bank, Stuttgart

Lee Ann Krisell began her banking career as a swtichboard operator on January 10, 1977. Forty years later, she is serving Farmers & Merchants Bank as Vice President of COD, IRA, New Accounts and E-Banking.

John Garrison, Relyance Bank, Pine Bluff, was honored for 40 years of service to the Arkansas banking industry.

April 2017 | The Arkansas Banker

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GYNELLE LINDER

Senior Vice President / Loan Officer Eagle Bank & Trust, Heber Springs

Gynelle Linder began her banking career in the Bookkeeping Department at Arkansas National Bank on September 26, 1976; she also served as a part-time teller.

She became a full-time teller in 1978 and later transferred to the Loan Department as a Loan Assistant. In the early 1990s, she was promoted to Assistant Vice President and became a Mortgage Loan Officer for secondary market loans, then Mortgage Manager from 1993-2013. She also maintained a loan portfolio on other types of loans with the bank. She currently serves as Senior Vice President and Loan Officer in Commercial and Consumer Lending.

Joe Miles, Integrity First Bank, Mountain Home, was honored for 40 years of service to the Arkansas banking industry.

Gynelle has completed various banking courses, training and seminars on Secondary market Lending, FHA, VA, and Mortgage Banking. She is a past board member for Individual Development Account Program and is a current board member for the Single Parent Scholarship Fund in Cleburne County.

JILL MCCLINTON

Executive Vice President and Chief Operating Officer Peoples Bank, Magnolia

Jill McClinton began her banking career in the summer of 1976 at Peoples Bank in Magnolia. Her duties at the bank include Deposit Compliance Officer and BSA/OFAC Officer. She is on the bank’s ALCO committee, IT Steering Committee, and a member of the PB2020 Management Group. Jill is also a stockholder and serves on the Board of Directors of Peoples Bank and Golden Oaks Bancshares, Inc. She is the board’s former secretary and serves on the Directors Loan Committee.

As a career banker, Jill is active in the community. She has participated in Relay for Life, Manolia Blossom Festival, Magnolia Jaycettes, and the former Pilot Club. Jill and her husband Charlie have three children, four grandchildren, and one great-grandson.

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The Arkansas Banker | April 2017

Lola Roberts, Arvest Bank, Russellville, was honored for 40 years of service to the Arkansas banking industry.

I. JOE MILES

President & CLO Integrity First Bank, Mountain Home

Joe Miles began his 40 year banking career in February 1977 as an examiner with the Arkansas State Bank Department in Little Rock. Subsequently, he has held executive officer positions with community banks in Newport, Arkadelphia, Russellville, and Mountain Home and is currently the President & CLO of Integrity First Bank, N.A., Mountain Home.

Joe is a graduate of the Southwestern Graduate School of Banking at SMU, the National School of Retail Banking, and the ABA-Kellogg CEO Management program at Northwestern University.

Presently, he is a member and former

chairman of the Board of Regents at the Barret School of Banking. He served as Chairman of the Arkansas Bankers Association in 2008-2009.

GEORGE PENICK

Senior Vice President / Lending Eagle Bank & Trust, Heber Springs

George Penick began his banking career as a part-time teller at Worthen Bank & Trust in 1968. In 1970, he went to work as an examiner for the Arkansas State Bank Department, and in 1972 went to the First National Bank in Mena as a cashier; he was later promoted to Vice President, Senior Vice President, and then Executive Vice President. In 1984, George went

back to work for Worthen Bank & Trust as Vice President, and then Senior Vice President of Lending. He held positions at Metropolitan National Bank and First Security Bank before joining Eagle Bank & Trust as Senior Vice President of Lending in 2006.

George holds a degree in banking and finance from the University of Arkansas; he has attended the Southwest Graduate School of Banking at Southern Methodist University, and the Graduate School of Credit and Financial Management at Stanford University. He is a past president of the Mena Chamber of Commerce, past president of the Mena Lions Club, Treasurer of the Old State House Association in Little Rock, member of the Rotary Club of Little Rock, member of the Little Rock Lions Club, and board member of the Boys & Girls Club of Central Arkansas.

ERNIE PENN

Senior Vice President, Commercial Banker Arvest Bank, Prairie Grove

Ernie Penn began his banking career at the First National Bank of Fayetteville on February 1, 1976, as a Teller. After a 40 year banking career, he currently serves as Senior Vice President, Commercial Banker for Arvest Bank in Prairie Grove.

DIANA RHOADS

Assistant Branch Manager Arvest Bank, North Central Arkansas

First Security Bank employees honored for their 40 years of service to the banking industry were Rhonda Boen and Janice Townsend.

LOLA ROBERTS

Teller Arvest Bank, Russelville

Lola Roberts began her banking career on February 25, 1977 at Peoples Bank in Russellville as a Teller. She continues to serve customers on the teller line at Arvest Bank in Russelville.

DOLORES SNIDER

Customer Service / Electronic Banking Bank of Fayetteville

Dolores Snider began her career in banking at the United Missouri Bank as a Switchboard Operator in June of 1976. She now serves as an E-Banking Customer Service representative at the Bank of Fayetteville.

JANICE TOWNSEND

Gold Club Director, Northwest Arkansas First Security Bank, Searcy

Janice Townsend began her career in the Credit Department of First National Bank of Springdale in 1977. She now serves First Security Bank as the Gold Club Director for NWA.

SHARON WILSON

Vice President / Comptroller River Town Bank, Dardanelle

Sharon Wilson began her banking career at River Town Bank in Dardanelle in May of 1977, where she continues to serve.

She currently holds the position of Vice President / Comptroller.

Diana Rhoads began her banking career at the First National Bank of West Plains in July of 1975, as a Teller. She currently serves as Assistant Branch Manager for Arvest Bank of North Central Arkansas.

April 2017 | The Arkansas Banker

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GOVERNMENT RELATIONS A Critical Time to Engage with Washington:

Government Relations Summit 2017 With nearly 1,500 attendees, the largest ever, the 2017 Government Relations Summit hosted bankers from institutions of all sizes, charters, and business models come together to educate members of Congress and all federal regulators on critical banking issues. Eighteen Arkansas bankers joined Barry Jackson and me in Washington for regulatory reform rallying and meeting with our federal delegation.

We heard from Congressional leaders including Senator Mike Crapo (R-Idaho), who sites on the Senate Banking, Housing, and Urban Affairs Committee; Chris Wallace of Fox News Sunday; and regulators from the FDIC, OCC, and Federal Reserve. The momentum for federal relief was felt by all attendees and bankers from across the nation joined in the optimism and excitement.

Arkansas bankers meeting with Representative French Hill during the 2017 Government Relations Summit were Ryan Moore, Barry Jackson, Frank Scott, Jeff Lynch, Hunter Windle, Sarah Lynch, Zachary Price, Jim Cargill, Sean Williams, Representative French Hill, Jim Taylor, Cathy Owen, Dave Dickson, Commissioner Candace Franks, Susannah Marshall, Don Walker, Sandy Starnes, Chris Gosnell, and Ava Franks.

Before our trip, attendees received a pamphlet, Five Advocacy Topics to Consider as You Head to the GR Summit, which detailed five points for discussion with our federal delegation.

This pamphlet gave our attendees the opportunity to review and, most importantly, write out customer impact stories that result from these five federal regulatory matters. The ABA works diligently to gather stories of how federal overregulation impacts bankers’ ability to serve customers and sends them to our representatives in Washington. A review of this document prior to sitting down with our Congressmen and Senators prepared bankers for thorough discussion, antidotes, and examples that our delegation can take to the table for negotiations when drafting bills.

Four Emerging Leaders members joined us this trip: Ryan Moore, Centennial Bank; Zachary Price, First National Bank of Wynne; Sandra Starnes, Citizens Bank, and Hunter Windle, Malvern National Bank. Each offered a different perspective and several shared stories and concerns about federal regulation with

12

The Arkansas Banker | April 2017

Representative Rick Crawford and bankers discuss stories of how customers are impacted by federal overregulation.

our delegation. Sarah Lynch, daughter of Jeff Lynch of Eagle Bank, joined us as well. Sarah graduates college this spring and hopes to launch her banking career shortly thereafter. This trip gave her firsthand knowledge of the inner workings of Washington politics and boosted her banking network in Arkansas. Being able

to visit the Capitol with official business, getting a crash course in effective advocacy through the Emerging Leaders Forum, and networking with bankers from across Arkansas is invaluable to our young bankers’ career.

This year brings big changes to

2017 Attendees Russell Altom

Relyance Bank, Pine Bluff

Jim Cargill

Arvest Bank, Little Rock

Dave Dickson

Union Bank & Trust Co., Monticello

Commissioner Candace Franks Arkansas State Bank Dept., Little Rock

Chris Gosnell

Farmers Bank & Trust Co., Magnolia

Barry Jackson

Arkansas Bankers Association, Little Rock Representative Steve Womack discusses the current political environment with Arkansas bankers Jeff Lynch, Sean Williams and Dave Dickson.

Senator Tom Cotton explains the negotiations that go into the passage of a bill in Washington.

Jeff Lynch

Eagle Bank & Trust Co., Heber Springs

Sarah Lynch

Eagle Bank & Trust Co., Heber Springs

Susannah Marshall

Arkansas State Bank Dept., Little Rock

Ryan Moore

Centennial Bank, Jonesboro

Cathy Owen

Eagle Bank & Trust Co., Little Rock Jim Taylor, Senator John Boozman, and Jeff Lynch sit down during a meeting to discuss the impact of federal regulation on Arkansas banks and bank customers.

Washington—and if ever there was a time that the banking industry needs to get energized for change, the time is now.

We gathered in Washington for critical dialogue and our bankers returned to their banks with strategies to help engage elected officials year-round. Please send us your stories and engage with your

federal representative at any opportunity.

We must keep this momentum going.

Zachary Price

First National Bank of Wynne, Harrisburg

Ava F. Roberts

Arkansas Bankers Association, Little Rock

Frank Scott, Jr.

First Security Bank, Little Rock

Sandy Starnes

Citizens Bank, Batesville

Jim Taylor

First Security Bancorp, Little Rock

Don Walker

Arvest Bank, Fayetteville

Sean Williams

First National Bank of Wynne, Wynne

Hunter Windle

Malvern National Bank, Malvern

April 2017 | The Arkansas Banker

13

CECL:

Your Step-by-Step

Guide to Compliance by 2020-21

Very soon, CECL will fundamentally change how the financial industry accounts for loan loss reserves.

Currently, institutions can’t record expected losses until deemed “probable.” Because of this limitation, they were inadequately reserved before the 2008 financial crisis.

To avoid a disastrous repeat, the Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) approach to the Allowance for Loan and Lease Losses (ALLL) goes into effect between 2020 and 2021. Experts advise immediate action toward minimizing CECL’s impact on institutions’ capital and human resources.

ABOUT THE AUTHOR

Keith Monson serves as CSI’s chief risk officer. In this role, Monson maintains an enterprisewide compliance framework for risk assessment and reporting, as well as other key components of CSI’s corporate compliance program. With nearly 25 years of banking experience, he has a wide range of expertise in the compliance arena, having served as chief compliance officer for both large and small financial institutions.

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The Arkansas Banker | April 2017

The following guide takes your institution through implementation, one step at a time.

STEP 1: INITIATE EDUCATION AND PLANNING

According to the American Bankers Association (ABA), regulators consider CECL “the biggest change ever to bank accounting.” You can help control the pain, if you haven’t already done so, by educating staff and planning now: 1. Assign a team leader and assemble a team. Identify a strong candidate with experience in such areas as credit risk or accounting. Familiarity with project management also is ideal. The CECL leader should build a team representing key affected areas, including senior management, loans, credit underwriting, risk management, accounting and internal audit.

2. Educate the team and board. Review CECL and explain its possible implications to your board and key stakeholders. Start by reviewing these interagency documents about CECL: Joint Agencies Statement and Frequently Asked Questions.

3. Create a project plan. Your detailed project plan should manage system and policy changes, provide training and communication, and account for contingencies.

4. Communicate with your core provider. CECL relies on historical data on life of loan or life of portfolio loss rates, key portions of which reside within your core system. So, contact your provider to make adjustments to the current closedfile destruction schedule. This ensures your access to CECL information.

STEP 2: ADDRESS KEY DECISION POINTS

The CECL project team must consider these points to determine your institution’s best course of action.

1. Data identification. Institutions must anticipate collecting the following data—at a minimum—for individual loans, and assess the need for more granular detail: risk rating, loan duration, origination date, maturity date, loan balance, key charge-off or recovery information, and loan segmentation.

2. Data gathering. Gather individual loan data for existing loans to build the historical picture and vintage disclosures CECL requires, including data from: Core system: determine the data available, and plan for retaining and accessing it.

Loan accounting and servicing systems: determine how to retrieve additional data points captured within these systems.

Loan files and credit memos: certain data points may only be available within the loan file or credit memo.

Other databases: search other resources, like customer relationship management systems, to complete customer profiles.

3. Process adjustment. The project team must adjust existing loan processes and systems to capture the CECL data more cost effectively. This includes creating consistent codes for data fields, eliminating duplicate fields, ensuring data can be accessed and transitioning to digital-collection methods.

4. Data analysis. Decide where to store the data, be it in an Excel spreadsheet or a complex, secure database. Your institution also must determine a cost-effective way to analyze that data.

5. Portfolio Segmentation. The Federal Reserve advises to “identify the portfolio segmentation needed to implement the proposed CECL model, such as grouping assets with similar risk characteristics.” These segments should consist of the same product or collateral type, interest rate, or other shared risk characteristic. The agency adds that loan portfolios should be accounted for at the most granular level, since granular segmentation equals better loss estimates.

Additionally, institutions may apply different estimation methods to different groups of financial assets.”

Methodologies include: Average charge-off method Vintage analysis Static pool analysis Roll-rate method or migration analysis Probability of default Regression analysis Discounted cash-flow analysis

STEP 3: VALIDATE AND TEST YOUR DECISIONS

Follow the change management best practice of Plan, Do, Check, Act. 3. Validate chosen methodology. Ensure your methodology meets all CECL requirements and provides the most accurate reserve estimates. The former will indicate your institution’s compliance readiness; the latter helps minimize the financial impact from CECL. If issues arise, adjust and retest.

3. Run parallel ALLLs. Calculate both the current ALLL model and the newly devised CECL version through the transition period, to help with budget decisions in preparation for CECL’s effective date.

3. Estimate capital impact. The Federal Reserve suggests institutions “be proactive in estimating the potential impact to their regulatory capital ratios to assess whether they will have sufficient capital at the time that the CECL model goes into effect.”

STEP 4: TRANSITION TO CECL BY 2020-21

Institutions that follow this multi-step plan, making use of the extended time frame and system-driven resources, will reap many benefits, including balancing CECL-related tasks with other responsibilities, streamlining data analysis and ensuring their CECL rollout meets regulatory expectations.

Using this background information and our four-step plan, you have the tools to determine how to implement CECL based on your institution’s size, loan complexity and budget.

6. Economic Variables. Institutions also must include national and local economic data when calculating CECL. Those that are readily available, including unemployment rates, housing prices and commercial real estate prices, will prove the most helpful.

7. CECL Methodology. FASB doesn’t require that a specific methodology be used to calculate the ALLL under CECL. The interagency joint statement explains “allowances for credit losses may be determined using various methods.

April 2017 | The Arkansas Banker

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Has Your Website Become a Liability?

ABOUT THE AUTHOR

Hugh Patterson provides guidance to DD&F Consulting Group clients in the areas of strategic technology planning, project management, vendor management, technology solution selection, implementation and utilization. As a seasoned banking operations and technology professional, he draws from his 37 years in community banking and technology vendor sales and service to ensure effective implementation of solutions to support sales growth, increase revenue and mitigate operational and compliance risk exposure.

Contact Hugh at hpatterson@ddfconsulting.com.

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The Arkansas Banker | April 2017

If you think that your bank can’t afford to ensure that your website and mobile app are ADA compliant, think again. The Department of Justice (DOJ) fines start at $75,000 and civil settlements could amount to much more. Law firms are doing mass mailings to banks with the intent of initiating legal action or to solicit an ADA compliance engagement. They are targeting banks of all sizes across the U.S. and your bank could be next on the list.

Title III of the Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability in places of public accommodation. While this language has been traditionally thought of in terms of physical locations that has changed. DOJ, which enforces the ADA, has made it clear that it interprets the ADA as applicable to bank websites. In 2010, the DOJ issued an Advanced Notice of Proposed Rulemaking stating it would amend the language of the ADA to specifically ensure accessibility to websites for individuals with disabilities.

The DOJ’s proposed ADA website accessibility guidelines are set to be released in 2018 but enforcement and legal actions are taking place now.

While the official guidelines have not yet been released, the consensus is that the World Wide Web Consortium (W3C) – Web Content Accessibility Guidelines (WCAG 2.0 AA) will eventually be endorsed by the DOJ.

ABA Sponsored Legislation:

Relief from ADA Litigation The Arkansas Bankers Association has filed legislation that may ease the pressure from the demand letters many banks across Arkansas received over the past several months. Most of you are aware these letters allege noncompliance ADA website guidelines.

A quick review of these guidelines might cause many bankers to ponder a return to the simpler branch banking concept. As if the news needs to get any worse, mobile apps have now also been included as being subject to ADA compliance.

Any website or mobile app could be a target for a non-compliance complaint regardless of functionality, services provided or content. If your bank has a website, even if it contains basic information, that website or mobile app must be ADA compliant.

As with any compliance related issue, the earlier that you can show an intent to comply with the regulation, the better you will look should a complaint be filed.

Our bill, HB 1983, requests aggrieved parties provide notice of 120 days before filing a civil action or petition for injunctive relief based on website ADA compliance. If an entity corrects the website within 120 days of receipt of the written notice, the entity may use that fact as affirmative defense to a civil action or petition for injunctive relief. The Governor signed this bill on April 3 and it is now Act 784.

While this legislation is hardly a cure-all for the troubling demand letters, it may offer some relief to banks who receive these correspondences. The ABA’s goal with this legislation was to assist our bankers to the best of our ability; we certainly hope this new law will effectively slow down future lawsuits of this nature.

Here are some suggestions to get a head start on compliance: Limit graphics, photos and videos Add text to images and audio descriptions Don’t use PDFs as they are not readable by screen readers Allow for adjustments to font size, color and contrast Ensure that the website can be navigated by keyboard Create a link to videos rather than embedding them on your website Add a link to a disability accessible page where a plug-in can be downloaded

VP / DIRECTOR OF GOVERNMENT RELATIONS AVA F. ROBERTS

Going forward ensure that web design, Internet and mobile banking contracts include ADA compliance requirements

April 2017 | The Arkansas Banker

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The Arkansas Banker | April 2017

Holding Your Data Ransom WHAT IS RANSOMWARE?

It’s a day that starts just like every other day. You walk into the office, grab some coffee, and power up your computer. Only instead of being able to access your data, you see an image demanding you to pay $10,000 in the next 48 hours for the return of your data, or the price goes up. Today, it seems, won’t be just like every other day; you’ve been victimized by ransomware.

Ransomware is a type of malware that will encrypt files and information on your organization’s network, rendering your information (including customer records) inaccessible and denying access to other networked devices. Ransomware gains control of your organization’s network through phishing emails, unpatched software, unsupported servers, and other vulnerabilities.

Once ransomware has essentially rendered your network and information unusable, the attacker will demand payment in exchange for the encryption key and the promise of being able to decrypt your data once the organization has paid the ransom.

WHO DOES RANSOMWARE AFFECT? As cybercrime has evolved into a business, attackers are now deploying ransomware as a new way of funding themselves. Cryptolocker, one of the first known versions of modern ransomware reported back in late 2013, infected thousands of computers before antivirus companies were able to update malware definitions to stop the attacks. In 2015, the number of ransomware attacks grew by roughly 165%.

In some cases, attackers do not provide the encryption keys or were unable to decrypt the data, leaving victims without their data and or the ransom paid. However, in many cases, attackers follow through on their promise to restore the data. Additionally, attackers frequently utilize “help desks” to assist with the ransom payment, often asked for via digital currency like Bitcoin, and even to help with the decryption of data. Since hacking has become a business, leaving victims without information and money does not ut help proliferate abo Learn more

Ransomware & other cybersecurity hot topics at the Cyber Security Road Show in June!

the scam; instead, attackers want you to regain access to your information, helping spread the word that paying the ransom is the best course of action.

According to KnowBe4, 93% of all phishing emails now contain a ransomware payload. 60% of victims are forced to pay the ransom, as they have no way or recovering from the attack. 20% of all ransomware payments now exceed $10,000. Attackers have realized that ransomware is the most effective way to make easy money, and it can affect anyone.

TOP 3 WAYS TO PREVENT RANSOMWARE ATTACKS

Since ransomware is so widespread and dangerous, how to you prevent it from happening to you? Here are the top 3 ways to mitigate your risk.

1. Know Your Risk – There are two types of organizations: those that back up their data regularly, and those that wish they had backed up their data. Employing a constant backup process and keepings backed-up information off the network dramatically reduces the risk of ransomware affecting your business operations.

2. Patch, Patch, Patch – Another way to mitigate risk is to patch and update all software on the network. Maintain a patch management program that regularly checks for updates for your systems and software. It is also good practice to delete any software not required for business functions.

3. Train and Test – Lastly, Social Engineering training and testing should be performed for all employees to teach them the dangers that exist in negligent computer use. Even the best antivirus software and firewall can’t always help you once that employee has clicked that malicious link.

ABOUT THE AUTHOR

Jon Waldman is a partner and co-founder of SBS CyberSecurity, LLC. SBS is a premier cybersecurity audit and consulting firm dedicated to making a positive impact on the banking and financial services industry.

Contact Jon at jon.waldman@sbscyber.com

April 2017 | The Arkansas Banker

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MEMBER NEWS Arvest Kicks Off Seventh Year of Fighting Hunger

Spring Time Frame Means More Food, Funds in Summer Months Arvest Bank’s 1 Million Meals initiative challenges bank associates, customers and community members to participate in fundraising efforts and nonperishable food drives to fight hunger in the more than 120 communities the bank serves.

The initiative is needed, as the United States Department of Agriculture reports more than 12 percent of American households surveyed in 2015 were food insecure, meaning they lacked access to enough food for an active, healthy lifestyle for all household members.

Arvest is conducting its annual initiative in the spring for the second consecutive year due to the fact food banks report an increased need for food items in the summer, when many children do not have the benefit of eating meals at the schools they attend. In July 2015, for example, less than 9,500 students in Arkansas who participated in the National School Lunch Program participated in the summer program. According to the Food Research and Action Center, that’s compared to the more than 244,000 students who received a free or reduced-price lunch – on average – during the 2014-2015 school year.

Donations to food banks also tend to be lower in the spring and summer than at other times of the year.

Arvest Bank kicked off the two-month, bank-wide effort on April 3 to provide at least one million meals to local, hungry families today, and it will continue through June 3. The initiative will conclude later that month, when

IT’S sO

Arvest employees work at a food bank during the organization’s 1 Million Meals campaign in 2016??

donations are presented to 72 local organizations that feed the hungry in their communities.

Arvest Bank in central Arkansas has partnered with the Arkansas Food Bank for the duration of the initiative. All donations received will go to the food bank to provide meals to local, hungry families. Central Arkansas residents can participate in 1 Million Meals by dropping off nonperishable food items or making monetary donations at any of the Arvest branches in central Arkansas or calling (866) 952-9523. Every dollar raised through 1 Million Meals provides the equivalent of five meals for those in need.

BIG

WE’RE IT

“The 1 Million Meals campaign makes a big difference in the amount of food available to local families and individuals who are facing food insecurity,” said Jim Cargill, president and CEO of Arvest Bank in Little Rock. “Arvest associates work hard to exceed our goal every year, and we hope the central Arkansas community will help us succeed in that effort in support of our friends and neighbors who are in need.”

Each of Arvest Bank’s 72 recipient organizations was selected on a local basis.

For more information about 1 Million Meals, visit arvest.com/millionmeals.

MEGA

Be watching for details on the 2017 Mega Conference, October 23-25.

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The Arkansas Banker | April 2017

Simmons Bank to Sponsor ‘Future of the Delta’ Conference Simmons Bank will sponsor a one-day conference on the future of the Arkansas Delta on Friday, May 19, at the Pine Bluff Convention Center. Gov. Asa Hutchinson will be the featured luncheon speaker.

The conference, titled “The Arkansas Delta: Why It Still Matters,” is designed to help community leaders network with each other and discuss how to deal with a declining population base.

The conference will begin at 9 a.m. and end at 3:30 p.m.

A catfish lunch will be served. There’s no registration fee, but those planning to attend are required to register in advance at www.simmonsbank.com/delta.

This is the second consecutive year for Simmons, which has called Pine Bluff home since it was founded in 1903, to sponsor the conference. All 135 members of the Arkansas Legislature, county officials and city officials have been invited to attend.

The co-chairmen for the Delta conference are Raymond Abramson of Holly Grove and Ritter Arnold of Marked Tree.

In addition to the governor, speakers will include: Dr. Laurence Alexander, chancellor of the University of Arkansas at Pine Bluff, who will discuss the importance of higher education in the Delta.

Mike Preston, the executive director of the Arkansas Economic Development Commission, who will speak on economic development strategies for the region.

Randy Zook, a Delta native who now heads the Arkansas State Chamber of Commerce.

Robert Moore Jr. of Arkansas City, a member of the Arkansas Highway Commission and a longtime Delta advocate.

Dr. Fitz Hill, the former president of Arkansas Baptist College, who will speak on the importance of mentors for Delta youth.

Dr. Shane Speights, the site dean for the College of Osteopathic Medicine at Arkansas State University in Jonesboro, who will talk about the need for more doctors in the Delta.

Kane Webb, the executive director of the Arkansas Department of Parks and Tourism, who will speak about efforts to increase Delta tourism.

Scott Simon, the director of the Nature Conservancy’s Arkansas chapter, who will discuss conservation efforts in the region.

Dr. Ruth Hawkins, the director of the Arkansas State University Heritage Sites program, who will talk about Delta heritage and how it can tie into economic development.

Home BancShares Awarded Raymond James Community Bankers Cup Home BancShares, Inc., parent company of Centennial Bank, announced they received a 2016 Raymond James Community Bankers Cup award. The Raymond James Community Bankers Cup awards recognized the top 28 community banks with assets between $500 million and $10 billion based on various profitability, operational efficiency, and balance sheet metrics. Of the 281 community banks across the United States analyzed for the awards, Home BancShares ranked eighth among the Cup winners. Home BancShares, Inc. has been awarded the Raymond James Community Bankers Cup on four occasions since it the award’s inception in 2011.

According to the analysis, Home BancShares, Inc. has shown superior stock performance in the last five years. Among the group of Community Bankers Cup winners, Home BancShares ranked fourth in five-year return at a 328.7% return, which significantly outperformed the NASDAQ BANK Index, S&P 500 Index and NASDAQ Composite Index in the five-year return category. Across the six financial measures analyzed, we ranked first in return on average tangible common equity and second in return on average assets, net interest margin and efficiency ratio as compared to the remaining Cup winners.

“We are honored Home BancShares has been included with the best of the best of community banks for the fourth year in a row bank by such a respected financial investment and services company as Raymond James,” said John Allison, Chairman. “We are proud of our recurring strong financial performance and consistency in creating exceptional shareholder value.”

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. The holding company’s wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, South Alabama and New York City.

April 2017 | The Arkansas Banker

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BANKER NEWS & MOVES CARVER NAMED FINANCIAL ANALYST FOR STONE BANK Jared Carver has been named a financial analyst for Stone Bank’s Banking Center in Little Rock.

His focus will be analysis of the bank’s financial reports and forecasting financial performance.

He was most recently a financial analyst for Frost Accounting CPA’S and with the Hendrix College business office.

He holds an undergraduate degree in economics and a master’s degree in accounting, both from Hendrix College.

DONNA HODGE JOINS CORNERSTONE BANK MANAGEMENT TEAM Charles T. Cross, President & CEO, Cornerstone Bank, is pleased to announce the hiring of Donna Hodge for the position of Vice President/Branch Manager. Donna brings 23 years of experience to the local financial institution and will manage Cornerstone’s Deposit Services personnel and serve as the Branch Manager for the bank’s Berryville market. She has most recently served for Wichita, Kansas-based Equity Bank in the Eureka Springs branch.

Cross stated, “Donna started her career with our bank 23 years ago and we are thrilled to welcome her back into the Cornerstone family. Adding a banker of her caliber to our growing institution is truly a blessing and I have every confidence she will be a

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tremendous addition to our team of professional bankers in Carroll County.”

Dodge is a native of Eureka Springs having graduated from Eureka Springs High School in 1989. She began her banking career in 1993 at Bank of Eureka Springs (now Cornerstone Bank) as a Customer Service Representative. She currently resides in Berryville with her husband Larry and niece Jaden.

Cornerstone Bank, a Carroll County-based financial institution, has six full-service locations in Eureka Springs, Holiday Island, Berryville, Huntsville and Harrison.

HUSKEY JOINS CORNERSTONE TEAM IN HARRISON Jason Tennant, EVP & CLO, Cornerstone Bank, has announced the hiring of Hasin Huskey for the bank’s entry into Harrison, Arkansas. She will be joining the Cornerstone’s deposit services and lending staff for the entire Boone County market. Huskey joins the growing Northwest Arkansas based financial institution after beginning her career at Arvest Bank and most recently with United Insurance in Harrison.

Tennant stated, “It is always exciting to bring capable bankers such as Hasin into your bank family. I know she will be a great addition to what is shaping up to be a top notch bank team to serve the Harrison and Boone County area. Her commitment to an exceptional level of personal service within a true community bank environment is welcomed by our institution and will be embraced by our client base as we establish a presence within

The Arkansas Banker | April 2017

the market.”

Huskey resides in Harrison, with her two children, Ella and Zavan.

She is a lifelong resident of the area, having graduated from Bruno Pyatt High School and earning a Business Management degree from The University of Phoenix in 2014.

Cornerstone Bank has opened its temporary facility in Harrison at the corner of Hwy 65 and Forward Drive while they construct their permanent facility at the corner of U.S. 65 and Wal-Mart Drive.

PROMOTIONS AND NEW HIRES ANNOUNCED AT FARMERS AND MERCHANTS BANK AND THE BANK OF FAYETTEVILLE Farmers and Merchants Bank President and CEO Gary Hudson recently announced several promotions and a new hire in the organization.

Kyle Pattillo of Fayetteville, formerly of Stuttgart, is now Vice-President and Commercial Loan Officer at The Bank of Fayetteville. The Bank of Fayetteville merged with Farmers and Merchants Bank through acquisition in December 2015. Pattillo was Senior VicePresident and Executive broker with Lindsey and Associates, Inc. for the previous 15 years.

A graduate of the University of Arkansas, Pattillo enjoys hunting, golf and involvement in youth sports. He and wife Misti are the parents of two boys.

Also at The Bank of Fayetteville, Robin George has been promoted to Assistant Vice-President

in Loan Operations. She has worked for the bank more than 15 years. George is a native of northwest Arkansas. She attended Asnuntuck Community College and the University of Arkansas with a focus in accounting. She is a mother and grandmother who enjoys knitting, crocheting, movies and baseball games.

Farmers and Merchants Bank Compliance Officer Sarah Berg of Stuttgart has been named Vice-President.

She is a Certified Regulatory Compliance Manager, a graduate of the American Bankers Association National Compliance School, and holds a Bachelor’s Degree from the University of Arkansas at Fayetteville. Berg began her banking career at F & M in 2010. Her extensive volunteer participation includes Stuttgart Junior Women’s Club services committee chairman, executive committee chair and secretary for Grand Prairie Beauty Pageant organization, and the Parent Teacher League at St. Johns School serving on the auction and services committees. She is also an active member of the Holy Rosary Catholic Church. She and her husband Justin enjoy fishing, hunting and spending time with their three children.

Internal Auditor Tori Hudson has been promoted to Vice-President, having started her banking career handling special projects in the lending department of Farmers and Merchants Bank.

She is a native of Hazen. Hudson holds a Bachelors of Arts in Mathematics, with a minor is Physics, graduating summa cum

laude from Lyon College. Her hobbies include hunting, fishing, movies and shopping. She and husband Clint have one son.

Michael Delancey of Stuttgart is now an Assistant VicePresident. He is the building supervisor.

Delancey has a lifelong connection with F & M with his parents having worked at the bank before him. He began employment as a high school student. He enjoys cars, sports, and is an avid Razorback fan. Members of Mt. Zion Church, he and his wife Thelma have five children and seven grandchildren.

Farmers and Merchants Bank’s Amanda Cress-Haffner has been promoted to Assistant VicePresident as a specialist in electronic banking products for corporate accounts.

Cress-Haffner is a native of Stuttgart who received a double Bachelor’s Degree in Marketing and Business Management from Arkansas State University. CressHaffner first worked at Farmers and Merchants Bank while still a high school student. She is an active member of the Stuttgart Rotary Club and Grand Avenue United Methodist Church, where she serves on the finance committee. She and husband Will enjoy fishing and spending time with family and friends and their dog.

Kylia Neasley is now an Assistant VicePresident in the New Accounts Department in Stuttgart.

A graduate

of Stuttgart High School, Neasley has extensive banking experience. She began her career at Farmers and Merchants in 2011. She serves as an ambassador with the Stuttgart Chamber of Commerce and is a member of the First Missionary Baptist Church. Neasley enjoys cooking, Ricebird football, and spending time with family and friends, especially her six year old daughter.

F & M’s Anti-Money Laundering Analyst Cachet Bledsaw has been promoted to Assistant Vice-President.

Bledsaw is a Stuttgart High School graduate and holds an Associate Degree in Criminology from Arkansas State University in Jonesboro. Her banking career began in 2010. She serves as chairman of a local outreach organization, Sistas with Style, is a member of Zeta Phi Beta Sorority, Inc., and serves on the board of the Grand Prairie Soccer Association. Bledsaw and husband Frank have three children.

SUTTERFIELD, MABRY JOIN STONE BANK IN CUSTOMER SERVICE Teresa Sutterfield and Carla Mabry have joined Stone Bank in Mountain View. Sutterfield will be Customer Service Manager and Mabry will serve as a Senior Customer Service Representative.

Teresa Sutterfield, who will head up the bank’s customer service team, was previously a universal banker for First Service Bank

in Mountain View and was an assistant vice president and branch manager for First Security Bank in Mountain View and a branch manager for Bank of Mountain View. She is a graduate of Mountain View High School and has completed several advanced banking courses.

Carla Mabry is a graduate of Mountain View High School and attended Southeast Oklahoma University. She has held banking positions with Bank of Mountain View and First Service Bank in Mountain View.

GRAND SAVINGS BANK PROMOTES RENFROE TO VP OPERATIONS, WESTERN BENTON COUNTY AND CONSUMER LOAN OFFICER Grand Savings Bank has promoted Meredith Renfroe to Vice President of Operations for Western Benton County and Consumer Loan Officer. Renfroe previously served as Assistant Vice President and Branch Manager of Decatur.

Renfroe has a Bachelors of Science degree in Finance with a banking emphasis from the University of Arkansas. She has 20 years of banking experience, starting her banking career as a part time teller while attending college.

She is a community advocate and has served in various capacities for the Gentry United Way, Gentry Main Street and Chamber of Commerce and the Parks and Advisory Board for the City of Gentry. Meredith

has been a team captain for the American Cancer Society Relay for Life, Big Brothers Big Sisters Bowl-A-Thon and School Supply Drive for the Decatur Primary School.

Renfroe has been recognized as an employee of the month for Grand Savings Bank and was awarded the Rising Star Award by the Gentry Main Street Chamber of Commerce.

“Meredith embodies the community spirit of Grand Savings Bank,” said Guy Cable, CEO of Grand Savings Bank. “We are fortunate to have her on our team to serve the Western Benton County market.”

ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Branch Bank Application An application filed by Cornerstone Bank, Eureka Springs, Carroll County, Arkansas, to establish a branch banking facility at 1426 Highway 65 North, Harrison, Boone County, Arkansas, with a temporary location at 1306 Hwy 62-65 North, Harrison, Boone County, Arkansas, has been approved. March 27, 2017.

Merger Application An application to merge Landmark Bank, NA, Fort Lauderdale, Broward County, Florida, with and into Centennial Bank, Conway, Faulkner County, Arkansas, has been approved.

February 16, 2017.

Give your employees the recognition they deserve!

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

April 2017 | The Arkansas Banker

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Find the Gaps in Your Bank’s Cyber Security System

2017 Cyber Security Road Show What is the Cyber Security Road Show?

Hosted by the Arkansas Bankers Association and our Endorsed Vendor, SBS Cyber Security, this interactive seminar is designed to provide education on evolving cybersecurity threats and what your institution should do to prevent, detect, and respond to these threats.

Who Should Attend?

Information Security Officers, Compliance Officers, Information Technology Staff, Directors, Presidents, Vice Presidents, Auditors, and Board of Directors.

Coming Soon to a Location Near You!

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Fayetteville

Little Rock

Jonesboro

Tuesday, June 13, 2017 9:00 a.m. – 4:30 p.m.

The Chancellor Hotel

Wednesday, June 14, 2017 9:00 a.m. – 4:30 p.m.

Hampton Inn

Thursday, June 15, 2017 9:00 a.m. – 4:30 p.m.

Hilton Garden Inn

Log on to www.arkbankers.org for details!

The Arkansas Banker | April 2017