The Arkansas Banker December 2018

December 2018

Human Resources Issue

The

Volume CI, No. 12

ABA PROFESSIONAL DEVELOPMENT

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

JANUARY 2019 Foundations of Commercial Lending

Basics of Banking

January 23-24 | Arkansas Bankers Association Who Should Attend: Credit Analysis, Loan Review & Administration, Credit & Loan Officers

January 30 | Arkansas Bankers Association Who Should Attend: Credit Analysts, Personal Bankers, New Bankers

Compliance School January 28-31 | Arkansas Bankers Association Who Should Attend: Compliance Officers, Internal Audit Staff, All Compliance Personnel

FEBRUARY

7

IRA Advanced Update

26

Bank Security Hot Topics

28

Basic Personal & Business Tax Return Analysis

8

MAY

Call Report Prep

14-15 TRID Refresh 16 Key Ratio Analysis

7-8

MARCH

Real Estate Lending Compliance

11-12 Consumer Lending

School

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APRIL

Cash Flow Analysis

Tax Return Analysis

16-18 ABA Annual Convention

20-21 CBSM Certification

22-26 Commercial Lending

School

28

25

4

6

Real Estate Appraisal Program Updates

JUNE

Intro to Consumer Lending Advanced BSA Brush-Up

12-13 CBCM Certification

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

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December 2018

Loan Assistants & Processors Training

AUGUST

21 Opening New Accounts:

Documentation & Compliance

December 2018 COLUMNS

Volume CI, No. 12

President’s Message

4

Lorrie Trogden

Chairman’s Column

6

Cathy Owen

5 Minutes With...

Shonda Litty

7

Government Relations:

8

DEPARTMENTS

Open Comment Periods

Member News

30

THE HUMAN RESOURCES ISSUE 9

10

Golfers Hit the Links to Benefit ABA Bank PAC

Compensation and Benefits for Multiple Generations

Professional Development Live Events Webinars AmBA Training Spotlight: Basics of Banking

2 5 21 30

Banker News & Moves

31

12

6 Tips to Recognize and Reward Your Employees

by Bruce Johanson

14

16

Where Your Bank’s HR Team Should Focus in 2019

18

Communities Bank on Small Business

by Greg Northen

Leadership Conference Wrap-Up

by Michael Singleton

22 The Arkansas Banker Online

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

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

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Faces of the ABA: Meet the 2018-19 Emerging Leaders Section Council

SURVEY SAYS What do you do on your lunch break?

Random question.

Random bankers.

Interesting results.

56

%

Eat Lunch

2

Women in Banking Conference Wrap-Up

CLICK HERE

to take part in January’s Survey Says

22%

% Take a

by Donna Flynn

2%

Who has time for a lunch break?

Surf the Web

15%

Run Errands

Power Walk December 2018

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4%

Take a Power Nap

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PRESIDENT’S MESSAGE Gearing Up for 2019

ABA OFFICERS

The holidays are a time for reflecting on the past year, and our thanks and gratitude for what the year has given us. I feel extremely fortunate for the opportunity to serve this incredible organization, and I know we will accomplish great successes together. I am thankful for your membership.

I am thankful for the many volunteer hours of your time and talent given to the Association. I am thankful for your support of our professional development and leadership programs. In short, all of us at the Association are thankful for you.

Cathy Owen, Chairman

This time of year is also for formulating plans and goals for the year to come, and I have been thinking about what the new year will bring. One of the first things on my agenda is what I refer to as the Great Arkansas Road Tour of 2019. I have a blank map of Arkansas counties in my office, and I plan on having every county shaded in by the end of 2019. I’ll confess, I’ve gotten a bit of a jump-start with a visit in November and a couple scheduled for December. If you have an event scheduled or will do me the honor of hosting for a day, please invite me, I would love to attend!

My team is also gearing up for the state legislative session starting in January, along with Congressional and federal agency implementation of S2155. You will hear more on that in the January issue. In the meantime, there will be a weekly e-newsletter coming soon outlining federal rules and regulations open comment periods along with important legislative updates and Association news.

I am formulating plans for other programs and projects for 2019, but those will remain flexible while I discover your wants and needs as I travel the state visiting with you. What are your pain points the Association can help relieve? What is your vision for a vital and relevant association? I want to hear from you what is most important to your business and the industry.

Please call me, text me, email me, or stop by the office for a visit; it is important that I hear from you about the direction you envision for our Association.

2019 is shaping up to be a dynamic year, and I am so very excited about the opportunities that lay ahead for us!

Eagle Bank & Trust, Little Rock

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

Jonathan Harrell, Vice Chairman Generations Bank, Rogers

Jim Cargill, Treasurer Arvest Bank, Little Rock

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

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

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

Lorrie Trogden | President & CEO Arkansas Bankers Association

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Jason Tennant, Eureka Springs Lynn Wright, Little Rock

ABA PROFESSIONAL DEVELOPMENT

JANUARY 2019

WEBINARS

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

Thursday, January 3

Tuesday, January 15

Monday, January 28

Best-Ever Compliance Checklists for Consumer Loans 1:30 p.m. – 3:30 p.m.

Nailing Your Job of Head Teller 1:30 p.m. – 3:30 p.m.

Accounting Essentials for Banks 1:30 p.m. – 3:30 p.m.

Wednesday, January 16

Tuesday, January 29

Smart Social Media 10:00 a.m. – 12:00 p.m.

When to Coach?

When to Supervise?

10:00 a.m. – 11:30 a.m.

Friday, January 4 Establishing a Respectful Workplace 10:00 a.m. – 12:00 p.m.

Monday, January 7 How to Analyze a Start-Up Business 1:30 p.m. – 3:30 p.m.

Thursday, January 17 Compliance Rules for Commercial Loans Secured by Real Estate 10:00 a.m. – 12:00 p.m.

Tuesday, January 22 Tuesday, January 8 Train Smarter and More Effectively 10:00 a.m. – 11:30 a.m.

CRE Appraisals: Approaches to Value and Cap Rates 1:30 p.m. – 3:30 p.m.

Tuesday, January 29 Strategic Planning for Financial Institutions: It’s All About Your Strategy!

1:30 p.m. - 3:00 p.m.

Wednesday, January 30 Reviewing Residential Appraisals for Mortgage Decisions 10:00 a.m. – 12:00 p.m.

Wednesday, January 23 Wednesday, January 9 Basic Business Entities & Other Commercial Borrowers 1:30 p.m. – 3:30 p.m.

Friday, January 11 Masterful Time Management 10:00 a.m. – 12:00 p.m.

Health Savings Accounts 10:00 a.m. – 12:00 p.m.

Wednesday, January 30 Advertising Compliance 1:30 p.m. – 3:30 p.m.

Wednesday, January 23 Basics of Real Estate Loan Documentation 1:30 p.m. – 3:30 p.m.

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

December 2018

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CHAIRMAN’S COLUMN Human Resources

I believe Human Resources is an area we often take for granted, although many of us rely on Human Resources to help us on a regular basis. The more I think through everything HR does for us, the more I realize the amount of respect HR is due. HR is responsible for the recruiting, hiring, administration, and training of personnel, as well as the oversight of compensation and benefits, onboarding employees, performance management, organization culture, and advising senior management.

HR has changed and evolved greatly through the years. Human Resources used to be referred to as “Personnel” and was primarily responsible for keeping up with the personnel records, and making sure companies kept up with labor regulations and laws. Prior to this, HR was generally someone in the Accounting Department, who was given the responsibility of processing payroll. The basic HR responsibilities haven’t changed, but instead have expanded. Much of the HR responsibility expansion is the result of changes in technology, which allow HR Management the tools to do all but the most complex tasks. Today’s HR Managers often work directly with Bank Management to influence employee engagement and the company culture.

Today, colleges offer both undergraduate degrees and post-graduate degrees in Leadership and Human Resource Development, to learn advanced skills and techniques needed to improve operational effectiveness of employees. Many also acquire HR certifications and accreditations, such as SHRM (Society of Human Resources) or PHR (Professional in Human Resources). These offer updated continual education training hours, required to maintain earned credentials.

Competition of the best workers is not only dependent upon our economic and professional success, it is also dependent upon our culture. HR is usually the first to know if our current culture is not keeping up with our evolving industry or if there are other issues with the company culture. Because of this, HR is in a position to be able to address issues and implement solutions, resulting in their ability to influence change. This allows HR the unique ability to bridge a gap between employees and Management.

As new challenges such as the “Me too Movement,” labor regulations and laws pass, competition for HR professionals is expected to grow and become more specialized. Another change in HR is the development of the use of Artificial Intelligence or AI in interviewing and digitizing HR processes. This growth of the intermingling of AI and HR will only increase the demand for the HR talent needed with these capabilities.

More and more executives have indicated their No. 1 concern is attracting and retaining talent. Sources of concern are the low unemployment, a shortage of skilled workers, and attracting talent to rural markets.

Ironically, some companies are seeing more resumes than ever, but they are also reporting a severe mismatch between skills sought in job listings and those found on the resumes received.

People are an organization’s most significant asset. It is therefore important that we not only leverage, but support, motivate, and develop our people. The one thing most employees care about more than anything, more than money and more than benefits, is career development and growth. If we don’t develop these career paths for our staff internally, they will find them elsewhere. The Arkansas Bankers Association offers many educational opportunities to help banks grow and expand staff knowledge and abilities.

Writing this article has reminded me how important Human Resources truly is for all of us. I do want to thank our HR staff and many wonderful employees at both my bank and the Arkansas Bankers Association. Thank YOU! I hope all of you have a Merry Christmas and Happy and Healthy New Year!

Cathy Owen | Chairman

Chairman of Eagle Bank & Trust, Little Rock

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December 2018

5 MINUTES WITH

SHONDA LITTY

VP of Human Resources at Integrity First Bank, Mountain Home From an HR perspective, what is the biggest issue that Arkansas banks face today?

I would say that most Arkansas bankers working in HR would say talent management. Hiring and retaining top employees is the biggest issue that Arkansas banks face today. Integrity First Bank has had several employees retire in recent years and that can be a challenge in itself. Not only are you losing a long-time valued employee, but the wealth of knowledge they take with them is not easily replaced. I take pride in the fact that Integrity First Bank does a lot of promotion from within, which allows for an easier transition period.

Give us a little background on yourself: A native of Mountain Home, I’m married to Steve Litty and we have two children, Caroline and Brad.

I graduated from the University of Arkansas, Fayetteville with a BSBA, majoring in Office Systems Management with an interdepartmental degree in Human Resources. I started my banking career in Ozark, at what was then The Bank of Ozark as a CSR and later moved into a role where I assisted the Deputy CEO. After four years in Ozark, I returned to Mountain Home in 1994, and accepted an Executive Assistant position with First National Bank and Trust Company of Mountain Home in 1995. In that role, I assisted the CEO and the SVP of Administration. I served as Secretary to the Board of Directors for nine years. In 2005, I began working in Human Resources, where I remain today as Vice President. The bank changed its name in 2012 to Integrity First Bank due to expansion in other areas of Northern Arkansas.

What is the best part of being a hometown banker?

In my opinion, the best part of being a hometown banker is the community, and therefore the people. We can wait on customers and then serve side by side with them later at community functions. You’ll often hear me say Integrity First Bank is the only locally chartered bank in Mountain Home.

We are truly a community/hometown bank and that carries over to our Pocahontas, Jonesboro and Northwest Arkansas markets as well.

What is your favorite Christmas carol? ...and which one drives you crazy?

That’s a hard one; do I have to pick just one? Besides most of the traditional Christian Christmas songs, I love “Let It Snow” and “Winter Wonderland.” “Grandma Got Run Over By a Reindeer” is definitely not my favorite! I tend towards the more traditional side.

You’ve been with Integrity First for over 20 years, what’s something you’ve learned in that time that you pass on to new recruits?

In working with the bank’s team members, one thing I try to practice is the Golden Rule — treating others as you would want to be treated, no matter what the situation. Also, very early in my career, an experienced lender told me that all mistakes could be corrected, “as long as no one was harmed.”

Those words of wisdom took a bit of the pressure off. We hire a lot of employees who are new to banking, and I stress that they will have on-the-job training and assistance is always just an ask away. Also, I was once told to dress for the job you want, not the job you have. Banking dress code policies have certainly relaxed since 1990, but it’s still worth remembering, and something I do share with new hires at times.

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GOVERNMENT RELATIONS Federal Feedback: You’re The Expert

CLICK HERE

to view current Open Comment periods

Engage in transforming what is to what should be. Your voice on federal regulation matters. There are four proposed rules and regulations changes open for comment that close in the coming month. Take a few minutes and speak up about changes in our profession! Log on to www.arkbankers.org to submit comments on these and other upcoming regulatory issues: SBA Express Loan Programs; Affiliation Standards Agency: Small Business Administration Comments Close December 18, 2018 Proposed SBA regulation amendments that impact eligibility for its business loan programs, including the SBA Express and Export Express Programs 7(a), and (504) loan programs.

Request for Information Regarding Bureau Data Collections Agency: The Bureau of Consumer Financial Protection (the Bureau) Comments Close December 27, 2018 The bureau is seeking information in five broad categories: the definition of a small business; the data points the bureau should require banks to report; the lenders to be encompassed by the data collection; the financial products offered to small businesses; and privacy and confidentiality concerns related to the data collection.

Reduced Reporting for Covered Depository Institutions Agency: OCC, Fed, FDIC Comments Close January 18, 2019 Proposed changes for non-complex institutions with less than $5 billion in assets would be permitted to file the FFIEC 051 Call Report. Banks filing the FFIEC 051 Call Report would see a reduction of the number of data items required in their first and third quarter filing.

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Join your peers at the ABA Conference for Community Bankers.

Register now at aba.com/CCB

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Golfers Hit the Links to Benefit ABA Bank PAC

Farmers Bank & Trust bankers Aaron Gillam, Reggie English, Brady Bulmanski, and Jeff Whitener were among the 35 golfers that turned out at the Maumelle Country Club for the ABA Bank PAC Golf Tournament on Monday, November 5.

Hunter Hyneman, Southern Pioneer Insurance, Jonesboro; Judy Lawton, Russellville; and Blake Fletcher, Stone Bank, Little Rock.

Ryan Moore and Brock Ferguson, both of Centennial Bank in Jonesboro.

CLICK HERE

to see more photos from the ABA PAC Golf Tournament!

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Handling Employee Compensation and Benefits for Multiple Generations

by Bruce Johanson Johanson Group

For many years, companies developed compensation and benefit plans based on a few generations at a time.

Back in the 60’s, you had mostly WW II generation employees, and the Baby Boomers were moving into the workforce starting in the mid-60’s. Both generations valued job security, comfort and known activities and environments.

Thus, employers offered pretty much the same pay and benefit packages to employees from both generations.

Gen Xers hit the work scene around the mid-80’s and they, along with the two previous generations, accepted the pay and benefit practices of the past and didn’t rock the boat as the next generations have and will continue to do so. The Gen Yers (Millennials) and the Gen Zers started their work careers in the mid-90’s and mid-2010’s, and both generations have pushed employers to rethink and redesign their total rewards package, the new term for compensation and benefits.

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The following is a description of the current generations in the workforce and what each generation is seeking as it relates to total rewards and thoughts around reshaping and reallocating compensation and benefits to meet each generation’s needs.

Baby Boomer Pay/Benefits

With life expectancy now into the mid to late 80’s, many of the baby boomers (BBs) are still working past 65 and this trend will continue for at least the next decade. BBs are looking for ways that they can continue to work to around age 70 to maximize their social security dollars, hold onto good health benefits through their employers until they retire, and take more time off with less pay to be in a semi-retired status so they can spend time with the grandchildren.

BBs can be great mentors to the Gen Xers, Gen Yers (Millennials) and the Gen Zers, the newest workforce members.

Most of the BBs are well educated, trained and started working in the mid-60s. They tend to have a balanced

December 2018

outlook on life, worked hard for many years with a few employers and can assist with filling in any non-technical skills gaps that the younger generations haven’t mastered or been exposed to up to now.

One of our public clients has experienced 17% turnover during the first eight months of 2018. The average tenure of the employees leaving this organization is almost 5.5 years, and a measurable group of these employees are retiring baby boomers.

The average pay variance between the new hires and terminated employees

for the above mentioned client is 16.7% or about $6,365 dollars per employee. With the impact of daily baby boomer retirements, we estimate that organizations will have between 10% and 25% in total compensation dollars to reallocate within their annual employee compensation budgets.

For small to large organizations, the amount of freed-up dollars associated with baby boomer terminations due to retirements can be significant and useful for taking care of high priority compensation needs. Some of these needs will include new hire replacements, funding variable pay incentive plans, addressing pay compression and pay inequity issues, bonus pay for top performers and a variety of other pay initiatives.

For organizations with remaining baby boomers that will retire in the next five to ten years, how will you plan to use their 4th quartile base pay salaries to fund the two generations behind the baby boomers highlighted in the remaining part of this article?

Millennials and Forward Generations Pay/Benefits

Randy Barrett published a thoughtprovoking article for Employee Benefit News last year titled, “Why the most innovated employers are rethinking total compensation.” Randy said that the millennials are the drivers for this change and the employers are responding. Beyond a competitive base salary, Randy mentioned that the millennials want work/life balance and a socially conscious corporate culture.

Below are two key paragraphs from his article.

“Leading innovators, including Akamai, Rackspace, Southwest Airlines and Vivint, are focusing on “quality of life”

perks and other benefits that our grandfathers wouldn’t have dreamed of — or thought possible. They include daycare assistance, adoption and fertility funding, onsite medical scans, ID-theft services and enhanced options for working remotely.”

“Benefits, or what we refer to as WorkPerks at Southwest, are a big driver when it comes to attracting, retaining and engaging [employees],” says Julie Weber, VP of people at Southwest Airlines. She adds that the company “doesn’t just focus on traditional benefits like wellness, healthcare and retirement.”

For the airline, that means a positive work culture, career development and generous travel privileges. “ Millennials and later generations are likely to jump ship if they don’t see the above perks as well as career advancement opportunities, challenging work, an open and genuine relationship with supervisor/manager, learning new skills opportunities and performancebased retention compensation.

One of the best retention compensation tools for millennials that we have seen is having a performance-based year-end non-contributory retirement supplement amount (roughly 10% to 15% of base salary) that has a vesting requirement of at least five years that causes high performers to stick around and get past the itch to move tendency.

Two Valuable Take-Aways for Total Rewards Planning in the Future

First, if you don’t have a formal Total Rewards Philosophy statement, create one. This statement addresses the organization’s philosophy and commitment as it relates to compensation and benefits and provides a road map/plan to follow and accomplish over time to ensure the attraction and retention of quality personnel. The statement is developed and approved by the Board of Directors and used as a guide to ensure the organization is working towards or upholding its promises to the employees around salaries and benefits.

Second, seek to create flexible pay, benefits and working environments for the newer generations so that each generation’s individual needs are being met, and at the same time, the organization’s expectations, requirements, growth and profitability are moving in the right direction. The organization can determine what is an appropriate salary, benefits and work environment package/figure for each company position and then allow an employee to pick and choose to meet their needs and stay within the overall budget for that position.

Bruce Johanson is a principal officer/partner of the Johanson Group, which has provided business and management consulting services to Arkansas banks for more than 45 years.

Another trend we are seeing for millennials is some employers are paying for additional college degrees and/ or professional licenses/certifications including MBAs, Project Management Professional (PMP) certification, CPA license, etc.

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6

Tips to

Successfully Recognize and Reward Employees

by Donna Flynn SkillsMastery Group

When you look at the group of employees that make up your company, it’s probably true that you are proud of the group you have helped put together. Simply put, your business would not run without them. If you read that statement again, the severity of keeping employees engaged and content becomes clearer. The individuals that make your business run from day to day want to feel valued and appreciated for the long hours and hard work that they put in. They are most likely working endlessly to achieve the goals that you have set, and they are wondering if you notice.

If you’ve done a good job of setting goals and keeping your team focused, you will have plenty of opportunity to recognize and reward progress. This is an important management skill to engage and acknowledge your team for their hard work. Implementing a recognition and rewards process also highlights the employees who are exhibiting behaviors that result in meeting company goals. Too often employees express that the only time they hear feedback is when it’s a complaint, mistake or something bad. Recognizing your team for doing things right goes a long way and often costs you nothing.

Follow these tips to make this part of your weekly management process:

1. Plan for reward and recognition.

If you wait for the opportunity to ‘present’ itself, odds are you’ll miss it. Take a moment at the beginning of the week to develop your reward and recognition plan. You should note who you would like to acknowledge, as well as how you plan to proactively look for opportunities. You can look for opportunities by casually observing, asking for feedback from employees or customers and reviewing previous results.

2. Be specific about what you’re rewarding.

Are you acknowledging behaviors that you like? Or results you are happy with? How about both? Rewarding desirable behavior helps drive more of that behavior throughout your office. Results are also worth acknowledging; however, results alone don’t teach others what they should be doing

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to reach their goals. “You did a great job” is not specific; “I was impressed by how you listened to that customers complaint and asked questions to help them feel heard in order to identify the real problem” is specific.

great; however, celebrating what we’ve learned, overcome or managed during the progress is often worth more than the actual end result. Celebrate the journey, including the ups and downs.

3. Team or individual recognition.

6. Don’t let your budget, or lack of, become an excuse.

Both go a long way. Recognizing someone in a team setting helps to acknowledge their success among their peers. By providing individual recognition in a group setting, others may be incented to want to earn similar recognition. By sharing the successes of specific employees, the rest of the room gains an opportunity to learn or share their feedback with similar scenarios. While group recognition is successful, providing one on one recognition allows for deeper conversation and coaching with an individual, helping to build trust and communication.

4. Share the recognition.

Recognition, often comes from the manager; however, you should make it a best practice to have recognition come from all levels. If you have a process of consistently recognizing employees, everyone can participate. Peers, coworkers, and other managers are all incented to join in the process and compliment others. It becomes part of your culture.

5. Progress not perfection.

Don’t wait until the result is achieved to recognize progress.

The journey is often where the most growth and learning happen – that’s what is deserving of recognition. Results are

Sometimes the best rewards are those that cost nothing: heartfelt words, a handwritten note or an opportunity to highlight someone’s accomplishments in a meeting, email or newsletter. Employees are appreciative of genuine recognition whether it’s in the form of words or actions – it just has to be sincere.

The bottom line is that recognition goes a long way in creating a culture of engaged employees who celebrate hard work and achievement. The good news is recognition and rewards are something you, as the manager or leader, can start immediately. It just takes a little planning, thought and a lot of commitment.

Donna Flynn is the founder and owner of SkillsMastery Group. She spent most of her career in the financial services industry, both as an executive coach, and also in leadership and management positions. She was the President and Market Manager for eight banks in the Chicago area. She led a staff of 50 during a tumultuous time in the banking industry, and was recognized for her leadership, results and culture change.

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Looking into 2019:

Where Your Bank’s HR Team Should Focus

by Greg Northen Cross, Gunter, Witherspoon & Galchus, P.C.

Admittedly, the Human Resources world was a bit odd in 2018. HR professionals did not see as many regulatory changes as were anticipated after the Trump Administration settled into its first term stride. Issues relating to tax cuts, international trade, border security and immigration policy, and the mid-term elections seemingly dominated the year. That said, there were certainly many adjustments to enforcement standards which were relaxed under various administrative agencies, such as the EEOC, NLRB, DOL, and OSHA, among others. Some of my clients inquired into various employment-related topics thought the past year, and many times the answer was “I’m really not sure!”

The reason being that few rules have substantively changed yet the approach to applying them has certainly adjusted under the Trump administration.

With that background, there are several HR topics that we anticipate deserving your bank’s focus in 2019. Prudent banks should position themselves for

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these changes in advance to avoid the compliance pitfalls that are always looming behind the day-to-day business operations of your company. A quick overview of these topics include:

Minimum Wage Increase Arkansans voted overwhelmingly to increase our state minimum wage rate in the November election. Effective January 1, 2019, the Arkansas minimum wage increases from $8.50 to $9.25. It will again increase beginning January 1, 2020, rising to $10.00. Then, on January 1, 2021, our minimum wage will be set at $11.00 per hour. Arkansas surprised many political experts with this progressive initiative, and Arkansas is being viewed by many as a test case for other states to see how our economy handles this significant increase in wages. Regardless, the Arkansas DOL will be ready to audit any businesses who fail to update their payroll practices for this fundamental change.

Medical Marijuana While this topic has been exhaustively discussed since 2016, we are approaching the roll-out of high times (yes, I did) of medical marijuana usage in Arkansas. The rules are in place, the cultivators have been selected and growing operations are underway, and dispensary licenses will be issued any day now. The Department of Health has already issued 6,583 medical marijuana cards for Arkansas citizens (as of Dec. 7, 2018), and we anticipate this number going up after the “buzz” wears off on presence of medical marijuana in our communities.

December 2018

The Arkansas Constitution now provides a right for citizens to lawfully consume marijuana for certain medical conditions. To be clear, it will still be illegal for any employees to perform work while under the influence of marijuana or possess marijuana at work or in public. However, the detection of marijuana’s “influence” will be very challenging for workers who lawfully consume medical marijuana at night and on weekends because of the nature of THC detection in the human body.

Because of the anti-discrimination provision contained in the Constitutional amendment, workers will have a claim of workplace discrimination based on medical marijuana cardholder status if they are terminated or not hired by a bank. Thus, your hiring practices and drug testing policy should be reviewed and updated to prepare for situations where an employee tests positive for marijuana, including safety sensitive positions that may limit an employee’s right to consume marijuana – even lawfully – depending upon the job position and related job duties.

Overtime Exemption Rules Anyone who analyzes compensation plans for your bank knows about the proposed overtime rule changes issued in 2015. The proposed rule was set to increase the minimum annual salary from $23,660 to $47,476, which would have affected several mid-level salaried jobs. While those rules hit an enforcement roadblock in 2016, the Trump Administration had issued a request for comments earlier this year, and analysts anticipate a Final Rule

sometime in 2019 (it was supposed to be out by end of 2018, but nothing has been announced as of yet). Many predict a salary increase will be established by regulation for exempt job classifications, though it will not likely be as high as the mid- to upper-$40,000 range. This issue has been sidelined, but it could have another shakeup for HR professionals next year.

Diversity and Inclusion This was an area that saw enforcement standards altered in 2018. Obama-era guidance regarding sexual orientation and gender identity protections have been rolled back, and these classifications may or may not have protected status under Title VII. Even so, HR professionals should be aware of the growing trend of diversity and inclusion hiring practices for employee recruitment and retention purposes.

Regional preferences may vary, but overall companies are trending toward implementing hiring plans and initiatives to include a diverse workforce based on gender, age, veteran status, disability, national origin, and other individual characteristics. Indeed, many federal contractors may be subject to

these requirements based on federal funding obligations and, even if not, these practices are viewed as positive workplace focuses for recruitment and retention.

Remote Workers/ Telecommuting While this topic is nothing new, the increase of a millennial-centered workforce will continue increasing in 2019, and the new generation of professionals are hyper-attuned to flexible workplace practices. A 20172018 survey by AfterCollege, a career network by college students and recent graduates, found that almost 54 percent of surveyed individuals consider “flexible work arrangement” as a top priority in choosing a career and nearly 78 percent of the same group considered the “ability to work at home one day a week” to be a policy to lure candidates to accept a job. There are undoubtedly pros and cons to permitting remote work, and some HR issues arise in these situations. Still, recruiting the new crop of professionals at your bank may be significantly impacted if you have not taken steps to prepare for this increasing demand of workplace benefits.

These are but a few issues to keep apprised of heading into 2019. The workplace is an ever-evolving landscape that requires constant attention and effort to remain in front of changes to relevant laws, initiatives, and best practices. Focusing on these issues will likely help your bank remain compliant and competitive in the Arkansas banking industry.

Greg Northen is an attorney at Cross Gunter Witherspoon & Galchus, P.C. in Little Rock. His experience includes practicing before federal and state courts in Arkansas, the Eighth Circuit Court of Appeals, and various federal and state agencies.

Greg also assists clients with drafting and implementing up-to-date forms, policies, procedures, and training for various labor and employment issues.

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Communities Bank On Small Businesses

By Michael Singleton Arkansas Small Business and Technology Development Center

My grandfather was born and raised in Oden, a small community in Montgomery County. He would eagerly tell anyone about the area’s claim to fame as the origin of radio personalities Lum and Abner and the Jot ‘em Down Store.

Like many rural areas, Oden has seen its population, economic activity, and investment dwindle. One of the few buildings left in the town’s commercial district is a single-story rock-clad structure, now abandoned, with a sign that simply says “BANK.” It is easy to imagine Oden in its heyday, with that bank playing an important role in commerce and community.

How many other places in Arkansas have Main Streets or neighborhoods lined with empty storefronts that once were small businesses? Odds are, mingled with the former cafes, barber shops, and hardware stores will be vacant buildings that once housed banks.

Banks and small businesses are institutions that create and support community. Their fortunes are linked, and their presence shapes a community’s identity.

While many places set their sights on luring a large employer to town, new and young companies are the primary source of job creation in the American economy. According to the U.S. Small Business Administration, small businesses accounted for 63 percent of net new jobs over the past six years.

Arkansas continues to benefit from enterprises that started small, grew into large companies, and stayed in the communities where they began.

Companies like Tyson Foods and Dillard’s are often hailed as home-grown successes. What community in our state will produce the next giant?

Like Don Tyson and William T. Dillard, entrepreneurs tend to have roots in the community where they launch their business. And unlike larger firms that may have only transactional relationships with a local bank, small businesses typically patronize local institutions for their depository and lending needs.

The dream to start or expand a business can hinge on obtaining a loan.

“The relevant market for many small business loans remains local,” states a September 2017 report from the Federal Reserve to Congress on the availability of credit to small businesses.

Results of FDIC’s national 2018 Small Business Lending Survey show that banks of all sizes are using “high-touch, staff-intensive practices to maintain and generate small business lending relationships.”

Because small businesses are primarily owned and operated by individuals who also live in the community, relationships and “soft” information are important components in a bank’s decision to lend.

A community-focused small bank often has a fuller picture of the small business, the local economic climate, and the people behind the numbers and plans.

This type of “relationship” lending gives community-focused institutions a competitive edge when it comes to identifying and servicing small businesses.

“Small banks are typically located within the communities they serve, which therefore lowers the transaction costs of engaging with and monitoring the firm or of gathering knowledge of the local market,” says the FDIC survey report.

Wait time for a credit decision was the biggest source of dissatisfaction for applicants seeking a small business loan, according to the Federal Reserve’s 2017 Small Business Credit Survey.

At the Arkansas Small Business and Technology Development Center, we frequently explain the loan process to clients, who are often surprised by how different the documentation and decision-making are for a business loan than the home or car loan with which they are more familiar.

Some are choosing online financing options.

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MEET THE

Arkansas Small Business and Technology Development Center “As the community banking market erodes, small businesses are being squeezed – businesses that can’t meet conventional lending requirements from big institutions are having to turn to fintech lenders, which often charge higher interest rates on shorter terms compared to what a community bank could offer,” concluded the Business News Daily article, “When Community Banks Die: How Small Businesses Are Affected” (Oct. 19, 2018).

Healthy communities have thriving small businesses. Local businesses return more dollars to the local economy, and small business owners often participate in community and civic life. To see more small business activity, communities need to provide potential entrepreneurs with the environment and resources to start and grow small businesses, so those businesses can create jobs and add to the tax base and quality of life.

ASBTDC helps prospective business owners prepare and plan, then works with them through every stage of business development and growth. The detailed market research we provide strengthens their loan proposals and allows them to make informed, data-driven decisions.

At our seven centers across the state, we see an uptick in business startup interest every January.

How can banks and communities nurture small businesses and entrepreneurship in the new year?

Build up your entrepreneurial base – Create opportunities for potential entrepreneurs and business owners to come

together, such as a monthly coffee.

Offer small business incentives – City, county, and state economic development incentive programs often disproportionately favor big companies. Instead of dangling dollars in front of large businesses only, can your community redirect some of these resources to foster local businesses?

Tell one story – Each community has something that makes it unique. What feature or asset can your community capitalize on?

Know your story, embrace your story, and tell your story.

Celebrate Small Business Saturday next November – Plan activities that encourage your community to “Shop Small” and support local businesses.

Keep the human touch – According to the FDIC survey, 96.5 percent of banks cited the ability for customers to talk to someone as the most important factor in generating new and maintaining existing small business relationships.

Invite ASBTDC to your area – We want to help. Call on us.

When banks and communities support small businesses, everyone wins.

Michael Singleton is the associate state director for the Arkansas Small Business and Technology Development Center, part of the University of Arkansas at Little Rock College of Business.

Each year, the Arkansas Small Business and Technology Development Center helps more than 5,000 Arkansans start and grow small businesses.

The statewide, university-based economic development program is funded through a cooperative agreement between the U.S. Small Business Administration and the University of Arkansas at Little Rock in partnership with six other institutions of higher education.

Any Arkansas-based, for-profit venture classified as small according to SBA size standards can utilize ASBTDC services, available through a network of seven offices around the state. The centers work with individuals who are Starting new businesses Buying established businesses Looking to expand or sustain their existing businesses or Commercializing their research or new technology.

ASBTDC provides guidance, information, and tools to build successful businesses, helping clients develop sound plans and processes for every aspect of business operation. Lenders can refer current and prospective business owners to the center for help with business plans, financial projections, loan packages, and market research. One-on-one assistance is available at no charge. ASBTDC also offers a full slate of affordable and no-fee educational events.

In 2017, ASBTDC assisted small business clients with obtaining loans and other capital investment totaling $85,601,802, a record for the program.

ASBTDC is an accredited member of America’s SBDC, the nationwide network of Small Business Development Centers.

For more info, log on to asbtdc.org.

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Emerging Banking Leaders Gather at Annual Conference Networking and leadership topics were the key at the 2018 ABA Leadership Conference, November 5-6 in downtown Little Rock. This annual event was back after a yearlong hiatus, having been rolled into the Mega Conference in 2017. The ABA Emerging Leaders Section Council is instrumental in the execution of this event, providing insight on speakers and programming, and providing extra hands on deck throughout the day.

The event kicked off on Monday evening with a networking reception for all bankers, which also included a meet-and-greet opportunity with new ABA President & CEO Lorrie Trogden.

Event highlights included Arkansas-based speakers Elise Mitchell, who delved into the science behind high-performance including the impact of insight and how to utilize empowering questions; Clint O’Neal of the Arkansas Economic Development Commission, who shared stats on Arkansas’s marketability to new business, and discussed how banks and communities can bolster the state’s economic growth; and former Caterpillar exec Jon Harrison, who encouraged bankers to take a values-based approach to managing employees. Attendees also had the option of receiving free headshots, with a portrait photographer on hand throughout the day.

Here’s what bankers are saying about the Leadership Conference: I enjoyed the leadership content very much. I think personal growth and the ability to lead is crucial for the banking industry.

- Derek E. The knowledge that the presenters gave us will help improve the way that we communicate with our co-workers and employees. - Will D. To be an empowering leader instead of a commanding leader. Involve staff more in decision making. We should all measure our self from time to time.

- Tanya F.

(Above) Don Musso, President & CEO of FinPro, discussed his tactical approach to leadership at the 2018 Emerging Leaders Section Leadership Conference on November 6 in Little Rock.

Hiring people with passion, training them well, getting feedback from my team on my performance, being accountable and holding others accountable. Lead by example, ALL of the time. - Leslie J. Enjoyed the selection and variety!

-Rachael S.

The overall value of the speakers and there content was great.

-Jacob B.

Congratulations TO OUR winners

Price Boney, Merchants & Farmers Bank, Dumas, was the grand prize winner of a Big Green Egg donated by First National Bankers Bank and Congo Patio & Fireplace. FNBB’s Jay Wisener presented the (and helped load) the prize.

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Alexander Baney, Malvern National Bank, Conway; and Duncan Bellingrath, Simmons Bank, Pine Bluff, each won a set of tickets to see the Razorbacks play the LSU Tigers in Fayetteville on November 10.

(Right) Eduardo Abril, First State Bank of DeQueen, DeQueen; and Ralph Bradbury, Arvest Bank, Little Rock.

Attendees took part in a #BankersGiveBack donation drive, collecting supplies for Ronald McDonald House Charities of Arkansas and a total of 71 holiday meals for the Arkansas Food Bank.

Snapshots CLICK HERE

to see more photos from the ABA Leadership Conference!

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Snapshots (Above) Brandon Scallion, Integrity First Bank, Mountain Home; and John Thomas Anderson, Malvern National Bank, Little Rock.

(Right) Ryan Moore, Centennial Bank, Jonesboro; David Johnson, Southern Bancorp Bank, Trumann; Brock Ferguson, Centennial Bank, Jonesboro, and Grant Belyea, Farmers & Merchants Bank, Fayetteville.

(Far Right) ABA President & CEO Lorrie Trogden; and Randy Scott, Farmers Bank & Trust, Blytheville.

Thank You TO OUR sponsors Courthouse Concepts Mobile App Banner Ad Equias Alliance Mobile App Banner Ad First National Bankers Bank & Congo Fireplace & Patio Grand Prize Giveaway Quattlebaum, Grooms & Tull PLLC Candy Basket Southern Pioneer Insurance Companies Opening Reception The Payroll Company Lanyards

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(Left) Brent Atkins, Simmons Bank, Hot Springs; Krystal Moore, First Arkansas Bank & Trust, Jacksonville; Tanya Fust, First Security Bank, Mountain Home; Patrick Hum, Stone Bank, Little Rock; Ben Hargrave, Stone Bank, Little Rock; and Chris Oldner, Stone Bank, Little Rock.

(Below) George Purvis, Cornerstone Bank, Eureka Springs; and Camille Turner, Southern Pioneer Insurance, Jonesboro.

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FACES OF THE ABA: EMERGING LEADERS

George Purvis Named ELS Council President George Purvis was appointed as the 2018-19 Emerging Leaders Section Council President at the Arkansas Bankers Association Leadership Conference on Tuesday, November 6, 2018.

Though he spent the first 16 years of his life in Eureka Springs, Purvis graduated from high school at Watson Chapel in Pine Bluff. He received a Bachelor of Science in Biology from Arkansas State University in 2006. Following college, Purvis accepted a job with Cornerstone Bank and returned home to Eureka Springs, where he is currently Vice President – Facilities Director and Special Assets/Appraisal Coordinator.

Purvis is a 2014 graduate of the Graduate School of Banking at Colorado.

A community advocate, he has served on the Carroll County Community Foundation Board, Eureka Springs Chamber of Commerce Board, and ECHO.

Q&Awith George Purvis How long have you been in the banking industry, and with Cornerstone Bank?

I have been in the banking industry for about 12 ½ years which is the same time that I started at Cornerstone Bank.

How long have you been involved with the Emerging Leaders Section of the Arkansas Bankers Association?

I believe I attended my first Leadership Conference in 2007 or 2008.

What are some of your favorite experiences from being involved with the Emerging Leaders Section?

One of my favorite experiences from ELS would be the fall trip to Washington, D.C. with the ABA and bankers from

across Arkansas to help fight for legislative reform. Despite Barry taking me to one of the worst meals I have ever had, getting to work with some amazing bankers for the common good of community banks across Arkansas was an awesome experience. Another great experience I had through ELS was getting to hear Tommy May talk about leadership at the ELS Leadership Conference several years ago. Mr. May has impressed me since I first met him long before banking was in the picture for me. Knowing that he made time in his busy schedule to travel across the state to try and inspire a room full of young bankers for an hour or so only to turn around and travel right back across the state constantly reminds me to make time for what/who I believe in.

What advice do you have for someone just getting started in the banking industry, or who has worked in the industry for a short time?

Communicate with your supervisors regularly. Keep them informed of your desires for advancement in the company and make a plan together how you can reach the goals you set. Be open to work through all departments in your institution. While all jobs may not interest you, it will make your communication and leadership later in your career much easier if the challenges other areas of the bank face make sense to you from firsthand experience.

Purvis joined a group of Arkansas bankers for the Association’s annual fall visit to Washington.

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Evelyn Morris Named ELS Vice President Evelyn Morris has been named 201819 ELS Council Vice President.

Morris is a 1999 graduate of Arkadelphia High School and earned her degree in Business Administration with an emphasis in Finance – Banking from the University of Arkansas in 2003. She completed the American Bankers Association Compliance School in 2012, and received her Graduate Degree in Banking from the Barret School of Banking at Christian Brothers University in 2013.

She is currently the Vice President of Loan Operations with First Financial Bank in El Dorado, Arkansas.

(clockwise, from left) Purvis with his son Miles; with his wife Danielle and Miles; and following a successful hunting trip.

To you, what is the most enjoyable aspect of being a banker?

The most enjoyable aspect of being a banker for me is the people. Being a banker in a retirement area, I have had the privilege of working with people from all walks of life and society. From Senior Managers of Fortune 500 Companies, doctors, farmers, retirees, teachers, factory workers and everything in between, it helps to keep the job fresh and interesting when you never know who is going to walk through your door next and what they are going to need.

As the ELS Council President, are there any specific goals you would like to achieve?

I hope that working with the ABA staff, Evelyn, Brandon, and the ELS Council we can rejuvenate interest in the ELS and get up and coming bankers across our great state involved with the ABA.

Are you involved in any other organizations or extracurricular activities?

I have previously served on several local nonprofit boards; however, I have spent the last year learning to be a dad to my one-year-old son, Miles, along with my beautiful wife, Danielle, and our chocolate lab, Chaco.

Tell us something your fellow bankers might be surprised to know about you...

I have a degree in Biology and had originally planned to pursue dental school.

Is there anything else you would like to share with our Arkansas Bankers?

I am looking forward to working with you all and getting to know you better over the coming year.

A community advocate, Morris is treasurer and board member of the United Way of Union County, a volunteer coach for the Boys and Girls Club of El Dorado, President of the El Dorado Chi Omega Alumni Association and attends Immanuel Baptist Church. She is also the Past President of the United Way of Columbia County.

Brandon Gentry Named ELS Secretary/Treasurer Brandon Gentry has been named 2018-19 ELS Council Secretary/ Treasurer.

Gentry is a 1997 graduate of Wynne High School, and received his Bachelor of Science in Finance with an emphasis in Banking from Arkansas State University in 2004. He also earned a graduate degree from the Graduate School of Banking at LSU in 2014. He is currently Vice President Lending with Cross County Bank in Wynne.

A community advocate, Gentry serves on the Cross County Chamber of Commerce Board of Directors and the Technology Center For the Delta Board of Directors.

He also serves as the Vice Chairman of the Arkansas Bankers Association Group 1 for Northeast Arkansas.

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FACES OF THE ABA: EMERGING LEADERS Brent Atkins

Derek Eckelhoff

What do you see as the biggest issue facing community bankers in Arkansas?

As Simmons has enjoyed unprecedented success in recent years, we’ve recognized a shared challenge that all growing banks experience: increased regulation.

While this is a necessary growing pain, the danger is that bankers can lose sight of customer service when faced with new regulatory hurdles. It’s essential for us to remember that banking is first and foremost about relationships. Even as we strive for regulatory excellence, we never want that goal to supersede our customer focus.

What leadership trait have you seen in a boss that you hope to emulate?

The greatest leaders that I’ve been around exemplify the servant leadership mentality.

They focus on teaching, encouraging, empowering, and are approachable to their subordinates. Servant leaders take the time to ask questions and genuinely get to know their subordinates. A servant leader works to help his/her subordinates succeed and does not seek recognition – transferring the recognition to his/her subordinates. A servant leader asks: “What tools do you need to get the job done?” and “How can I help you get the job done?” Essentially, they are always thinking: “How can I be of service?” This is the type of leader that I want to emulate.

Simmons Bank, Hot Springs Group 4

First Security Bank, Rogers Group 3

Ralph Bradbury Arvest Bank, Little Rock Group 2

What has been your biggest professional “aha” moment?

The “aha” that really stands out in my mind isn’t necessarily a moment per se, but information garnered during professional development training I recently completed within Arvest Bank. The training is geared toward understanding how individuals from each generation in our current workforce receive & process information and communication, and how we can cohesively work together.

For me, this was an “aha” that provided more clarity in understanding how to better serve all of our bank customers, and how to be more efficient in providing them with financial solutions.

Shawn Dunham United Bank, Rogers Group 3

What do you see as the biggest issue facing community bankers in Arkansas?

Increased competition from both “big banks” and “non-bank” financial technology companies. If you’re going to stay relevant you must offer products and services that match the expectations of the community that you serve.

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Brock Ferguson

Centennial Bank, Jonesboro Group 1 What will be the biggest challenge for the generation of bankers coming up behind you?

I think the biggest challenge for the generation of bankers behind us is not necessarily a challenge posed to the future bankers themselves, but to the industry itself.

As I look over our professional landscape, it seems as if there are gaps of several years where younger professionals, that are highly capable of making successful bankers, choose to do other things with their talents.

We, as current banking professionals, need to continue to advocate for our field and always be on high alert for talented individuals that would be tremendous assets to our sector of the financial industry.

Banking has and always will be a vital part of all communities, and the more young people that we can get interested in banking, the stronger our communities will be in the future.

Brandon Gentry Cross County Bank, Wynne Group 1 ELS Secretary/Treasurer

What made you decide to become a banker?

My mother works at First National Bank of Wynne and has been with the bank since I was in grade school. I grew up attending events the bank either sponsored or participated in, and always enjoyed myself; it seemed like every event was just a big family outing. Throughout my years before graduating high school I always enjoyed math classes, so business was my direction of interest entering into college. After finishing my basics and having taken several business-related courses, my interest focused in on finance and more specifically banking.

Banking just seemed to be a good fit for me based on my past experiences growing up and due to my interest in finance.

I have to say I made the right decision because I enjoy my job and the ability that I have to help people – when there is a need and the freedom it gives me to be involved in the local community where I live. Banking was definitely the right career path and has given me a lot of opportunities over the years.

David Johnson

Southern Bancorp, Trumann Group 1 What leadership trait have you seen in a boss that you hope to emulate?

Before I got started in banking, I worked for my uncle on my family’s rice farm. One thing I observed over the years was his willingness to do any task he asked of his employees. I was able to witness firsthand how this played into overall morale.

Through the years, I have come to realize how this can apply to any type of organization. Any boss can assign tasks and set expectations, but a true leader never asks anything of an employee they wouldn’t do themselves if they were in the employee’s position.

Bryce Larry

Legacy National Bank, Rogers Group 3 What has been your biggest professional “aha” moment?

The biggest “aha” moment in my professional career was closing my first loan. It helped me see that what I was doing truly benefited people and that my job was not just transaction based.

Evelyn Morris

First Financial Bank, El Dorado Group 4 ELS Vice President What has been your biggest professional “aha” moment?

Early on in my career I asked my grandfather, who was a banker, about the biggest “deal” in which he was involved. Of course, I was thinking multi-million-dollar projects. His response was not what I expected. He told me a story about a man recognizing him in an elevator 30 years after he had granted him and his wife a $4,000 loan to help pay tuition for them to graduate college to become teachers.

The gentleman thanked my grandfather with tear-filled eyes, because his decision to loan them the money paved the pathway for their lives. If he had denied the loan, the man would have left the bank and not finished college. My grandfather said, “you see, it’s the small deals that have the greatest impact; those are the big deals. As bankers we truly change lives and help people. The small deals are just as important as the big deals.”

Aha!!! In that moment I realized listening and learning from our mentors is invaluable. Those conversations and lessons learned stay with you forever.

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FACES OF THE ABA: EMERGING LEADERS Lance Nutt

FBT Bank & Mortgage, Fordyce Group 5 What made you decide to become a banker?

My grandfather influenced my decision to become a banker at a very early age. He was a director of a bank and he always told me that I would be a banker one day. My grandfather was a third generation logger and my father is a fourth generation logger. Growing up, I worked in the log woods and quickly realized that it was not a profession I wanted to pursue. I obtained a Bachelor of Science in Finance from Louisiana Tech University and was hired by the Arkansas State Bank Department after graduating college. The nine and a half years at the bank department gave me great insight to the banking industry and exposed me to many great bankers all over the state. The influence my grandfather had on me coupled with my wonderful experience at the State Bank Department is the reason I decided to become a banker.

Chris Pledger Eagle Bank, Little Rock Group 2

What made you decide to become a banker?

Banking is a gratifying career choice because we, as bankers, get to work/help the public, small businesses and other business ventures succeed. I believe as a banker we play a critical role in society by protecting, investing and helping people make the proper decisions to help them grow as a person and a business. Many of us play a direct role in helping clients make some of the most important decisions of their lives, such as saving for college, purchasing homes, building a dream home and planning for growth for their business. As a banker, it’s very rewarding to help people make these decisions and their dreams come true.

Bankers get to meet all people across the spectrum such as builders, entrepreneurs, business owners and consumers, and it’s a great privilege to work with such wonderful people in my career. Banking isn’t such a career for me, it’s a lifelong journey of developing long-lasting relationships and making friends along the way.

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George Purvis

Cornerstone Bank, Eureka Springs Group 3 ELS President What leadership trait have you seen in a boss that you hope to emulate?

One of the leadership traits that I hope to emulate in my career is the ability to foster creativity & productivity in those around me through my own imagination and hard work.

Kyle Schlenker First National Bank, Cherry Valley Group 1

What do you see as the biggest issue facing community bankers in Arkansas?

In my area, I feel that the decline in Agriculture from low commodity prices and the current tariffs is a major problem. Hopefully the United States can come to an agreement with China and get some resolution soon. I also feel that the interest rate risk is a problem for small community banks in rural areas.

Sandy Starnes Citizens Bank, Batesville Group 2

What leadership trait have you seen in a boss that you hope to emulate?

Intuition. Some say it is a voice, others a “gut” reaction. However you define it, it is a wisdom inside of you. This is certainly a hard quality to learn and emulate.

Fortunately, I have been blessed to work with incredibly intuitive leaders. Beyond possessing the power of intuition, I strive to follow these leaders in having the courage to trust and act upon it.

How can you improve bank exams?

TRANSPARENCY. ACCOUNTABILITY. PREDICTABILITY. Tired of exam surprises?

By taking our survey you are providing anonymous feedback that will be used to hold regulators to consistent standards.

More than 2000 bankers have already participated.

Take a stand. Take the survey.

Arkansas Bankers Association a proud member of

Take the RFI survey at www.allbankers.org *

*RFI = Regulatory Feedback Initiative

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Women in Banking Conference Draws Record Attendance With nearly 150 financial services professionals in attendance, the 2018 ABA Women in Banking Conference doubled in size from the previous year’s event. With an overarching theme of building a support system, conference topics included “strength spotting” to build up other women in the workplace; challenging and changing limiting beliefs; mentoring; and HR concepts for the everyday banker.

Additional pieces of the event included a “Sip & Shop” reception on Wednesday evening, where attendees mingled with other bankers from across the state, won door prizes, and finished their holiday shopping; and a “Bankers Give Back” donation station benefiting Our House and the Little Rock Fire Department toy drive for foster children.

(Above) Farmers Bank & Trust bankers Karrah Magness, Texarkana; Alissa Flanagan, Texarkana; Kelly Harvin, Texarkana; Brooke Haynes, Texarkana; Adell King, Texarkana; Jackie Tarlton, Magnolia; and Rachael Potter, Texarkana.

(Right) Farmers & Merchants Bank bankers Ann Pond, Elizabeth Johnson, Gabrielle Holiday, Lori Ann Orsburn, Melanie Watson, and Tabatha Rodgers, all of Stuttgart.

Here’s what bankers are saying about the Women in Banking Conference: The conference as a whole was very informative, and the attendance clearly indicated the need for this event.

- Cathy O. I will recommend that women in our institution attend this event annually.

- Betty M. I want to continue to participate and nurture my professional development and growth.

- Vicky M. I’m thankful for the opportunity to attend and would highly recommend this conference.

- Kristen P.

#BankersGiveBack

Attendees took part in a #BankersGiveBack donation drive, collecting supplies for Our House Shelter, and toys for the Little Rock Fire Department holiday toy drive. Pictured are Paige Krueger and Maureen Martin of Our House, Kami Coleman of the ABA, and Captain Jarrod Gray and Melissa Peabody of the Little Rock Fire Department.

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Evelyn Morris, First Financial Bank, El Dorado; Tammy Bullock, Cornerstone Bank, Eureka Springs; Cindy Inman, Cornerstone Bank, Eureka Springs; and Autumn Hudgins, Cornerstone Bank, Huntsville.

Natalie Bartholomew, Grand Savings Bank, Bentonville; Shelly Loftin, American Bankers Association, Little Rock; Molly Carpenter, FNBC Bank, Bentonville; and Mary Beth Brooks, Arkansas Small Business & Technology Development Center, Fayetteville.

Snapshots Arvest bankers Madeline Moore, Little Rock; Heather Polk, Fort Smith; Cheryl Taylor, North Little Rock; Dawn Cotter, Yellville; Kristen Carroll, Fort Smith; Lori Winesburg, Siloam Springs; and Julie Shook, Springdale.

Relyance bankers Carol Ann Rogers, Pine Bluff; Kristi Barger, Hot Springs; Sarah Heird, Hot Springs; Katherine Polczynski, Pine Bluff; Carol Omohundro, Hot Springs; and Kate Barlow, Little Rock.

Thank You TO OUR sponsors Baldwin & Shell Construction Co. Networking Break

SBS Cybersecurity Lunch

Quattlebaum, Grooms & Tull PLLC Candy Basket

The Payroll Company Lanyards

CLICK HERE

to see more photos from the Women in Banking Conference!

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MEMBER NEWS Simmons Presents $50,000 to Junior Achievement On #GivingTuesday, Simmons Bank presented a $50,000 check to Junior Achievement USA. The bank’s donation, which will fund work-readiness and financial literacy skills for children across Simmons’ seven-state footprint, was made in honor of associates who volunteered in their local communities earlier this fall.

“Simmons accepted dozens of charity nominations from our associates for today’s gift,” said Jena Compton, Simmons Bank’s executive vice president and chief people and marketing officer.

“Junior Achievement was selected because its work aligns seamlessly with Simmons’ mission to pass on financial knowledge and education to the next generation.”

“Junior Achievement programs have been proven to increase our students’ understanding and confidence when it comes to financial concepts,” said Jack Kosakowski, president and CEO of Junior Achievement USA. “The support of Simmons Bank is essential to helping JA

reach more young people with critical programs that better prepare them for successful futures.”

In September 2018, associates across the bank’s footprint participated in “Simmons Service Month,” a companywide initiative to encourage volunteerism across its 109 communities. To further support associates’ efforts, Simmons Bank committed to make a charitable donation up to $50,000, based on hours volunteered.

Nearly 4,500 volunteer hours were donated by 1,288 Simmons Bank

associates, impacting more than 150 nonprofits.

Simmons associates who donated 15 or more volunteer hours in September also received $150 for charities of their choice. These top volunteers raised a combined $4,200 for charities across Simmons’ footprint.

“At Simmons, our vision is to positively impact the places where we live and work,” said Compton. “We are tremendously proud of our associates’ passion for their communities, and as a company we want to do everything we can to amplify their efforts to give back.”

PROFESSIONAL DEVELOPMENT Basics of Banking

SPOTLIGHT

Build a foundation for your banking career with this general seminar on the banking industry, taught by veteran banker and consultant David Osburn.

The Basics of Banking seminar will touch on most aspects of the banking industry, helping attendees develop a greater understanding of: Products and services offered by banks including depository accounts, lending, trust department, and cash management Types of loans-consumer, residential, and commercial The five “Cs” of credit: capacity, capital, collateral, conditions, and character Investment products (FDIC and non-FDIC insured) Emerging technologies including the latest trends Banking regulations and regulatory agencies Management of the bank including the ALCO, audit, and loan committees For more information, or to register for the Basics of Banking seminar, log on to www.arkbankers.org or call (501) 376-3741. n

30 The Arkansas Banker

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December 2018

Who Should Attend: Credit Analysts Personal Bankers New Bankers

When:

January 30, 2019 9:00 a.m. – 4:30 p.m.

Where:

Arkansas Bankers Association 1220 West Third Street, Little Rock

BANKER NEWS & MOVES First Service Bank expands Conway & Mortgage Team First Service Bank announced that Whitney Long has been hired as a Mortgage Loan Officer to serve the bank’s Conway market.

“We are excited to be expanding our mortgage team and feel Whitney will be a great addition and will help enhance our customer experience,” said Robin Hackett, Mortgage Department Manager.

Whitney Long made Conway her home in 2010. She was born in Greenville, SC, but grew up in the Dallas/Ft. Worth area. After moving to Conway, she started working in real estate as a top producer and acquired her broker license. In 2017, she pursued her career as a mortgage lender. Being a lender allows her to use her experience in the real estate world to better serve people in fulfilling their dream of homeownership. Long serves the Faulkner County community on local boards such as the Women’s Shelter and Deliver Hope, as well as volunteering to serve at local shelters. Long enjoys spending time with her family, church family (Church Alive in Conway) and serving in the community. She also enjoys jumper equestrian riding. Whitney is married to her husband Ryan Long and they have one son, Harrison.

“Our Conway team is proud to have Whitney join us, and we feel strongly that her

real estate background will be an asset to our Conway Team, and most importantly to our customers,” said Tom Grumbles, CEO and President of First Service Bank. n

Branch Named Operations Manager for Stone Bank in Little Rock Stone Bank has named Latrecia Branch operations manager for its Little Rock office. Branch is a 23-year banking veteran and most recently was an assistant vice president and operations specialist with One Bank and Trust in Little Rock. She is a graduate of the University of Arkansas at Little Rock with a degree in finance. n

Reynolds Hired as Branch Manager for FNBC’s Newest Location FNBC Bank has hired Debbie Reynolds to lead the retail operations of its newest office in Jonesboro, located at 1118 Windover Road. Currently operating as a Loan Production Office, FNBC has applied for and received approval from the Arkansas State Banking Department to open in Jonesboro as a fullservice bank on Jan. 2, 2019.

FNBC expanded into the booming Craighead County market in late

August following the hire of Community President Brad Snider and seasoned commercial bankers J.R. Blackburn, Brock Fletcher and Laura McCain. Combined, the entire team brings over 100 years of banking experience.

“Our team hit the ground running, and in three short months made tremendous headway in Jonesboro,” said FNBC CEO & President Marty Sellars. “We are excited to soon be able to provide deposit and treasury services for our new and existing clients. Debbie is a trusted banker in the market, and I have no doubt her retail leadership will serve our office well.”

With over 30 years of experience building commercial and personal banking client relationships, Reynolds will work alongside Snider and the lending team to grow the bank’s deposit portfolio in Craighead County.

A native of Jonesboro, she and her husband, Randy, now live in Bono and have two children. n

Arvest Bank Announces New Role for Machen Arvest Bank is pleased to announce Matt Machen has been named regional executive of enhanced banking services.

Machen joined Arvest following its acquisition of Bear State Financial, Inc., the parent company of Bear

December 2018

State Bank. At the time of the acquisition, Machen was president and CEO of the holding company and the bank.

In his new role at Arvest, Machen will manage its wealth management, treasury management, mortgage production, equipment finance, small business administration and group credit administration units, as well as WACO Title, an Arvest affiliate.

Machen began his banking career in 2003 and joined Bear State Bank (then known as First Federal) in 2011. He was named CFO in 2013 and president in 2016. Machen became president and CEO of the holding company and bank in 2017.

A graduate of the University of Arkansas with a bachelor’s degree in finance, Machen also is a graduate of the Stonier Graduate School of Banking at the University of Pennsylvania and the Executive Financial Leadership Program at the University of Virginia’s Darden School of Business.

Among other civic endeavors, Machen has been a board member of the Dean’s Alumni Advisory Council for the University of Arkansas’ Walton College of Business, the Arkansas Symphony Orchestra and the Single Parent Scholarship Fund of Northwest Arkansas. He lives in Little Rock with his wife, Cameron, and their three children. n Recognize your employees! Send Banker News & Moves to traci.logsdon@arkbankers.org. n

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The Arkansas Banker

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Thousands of Employees Hundreds of Communities

One State

We are proud of the impact the banking industry has on Arkansas communities.

From the clients you serve to the events you sponsor, every bank has a community success story to tell. The Arkansas Banker wants to share those stories!

Send your community news to be featured in The Arkansas Banker to Traci Logsdon at traci.logsdon@arkbankers. org. Each month, we will feature banking community news from across Arkansas in a new section entitled “Community Corner.�

The Arkansas

Banker