The Arkansas Banker February 2017

2017 Convention

Upgraded Agenda

World Class Speakers

The Arkansas

Banker

The Convention Issue

Volume CI, No. 2 | February 2017 February 2017 | The Arkansas Banker

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Bringing you more of what you want!

To see what is new and to register for the 2017 Convention, visit www.arkbankers.org/Convention.aspx

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The Arkansas Banker | February 2017

The Arkansas

Banker Volume CI, No. 2 | February 2017

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

CONTENTS

EDITORIAL OFFICE

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

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.

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.

COLUMNS

The Arkansas Banker (ISSN 004-1726) is published monthly by the Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201.

Phone: 501.376.3741. Periodical postage paid at Little Rock, AR.

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Emerging Leaders Update

Bill Holmes

Blake Fletcher

10 Government Relations

DEPARTMENTS

Ava F. Roberts

22 Member News 24 Banker News & Moves 27 Index of Advertisements

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

MAGAZINE RATES

President’s Column

SUBSCRIPTION

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

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Avoiding the Website Accessibility Shakedown Toni Cannady

12 2017 Convention

FEATURES

14 The Hero™ Effect: Being

Your Best When it Matters Most

Kevin Brown

16 When Two is One: Add

Horsepower to Your Senior Team

Randy Harrington, Ph.D.

18 Best Practices in CRE

Lending Workshop

Daniel J. Beck, J.D., LL.M.

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

February 2017 | The Arkansas Banker

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PRESIDENT’S COLUMN ADA Website Issues Late last year we issued a banker alert about an effort by a Pittsburgh, Pennsylvania, law firm to extort money from small businesses, including banks, alleging various violations of the Americans with Disabilities Act (ADA) with respect to the businesses’ and banks’ website.

The allegations are that the specific website is not accessible by hearing or visually impaired consumers. We are constantly updating our webpage with new information on this attack.

Unfortunately, we are seeing more and more of our banks on the receiving end of these demand letters.

A lawsuit has been filed in State District Court in Fort Worth, Texas in which both the Texas Bankers Association (TBA) and the Independent Bankers Association of Texas (IBAT) have joined forces to attack the ADA website compliance issue. The lawsuit seeks injunctive relief and attorney fees, not traditional monetary damages.

What’s really interesting is the TBA/IBAT petition alleges the law firm has committed a

criminal offense of “Barratry and Solicitation of Professional Employment.” Under Texas law, “barratry” means an attorney offers anything of value to a prospective client to obtain employment as counsel for that prospective client. We are researching this issue to see if this same course of action is possible in Arkansas.

Specifically, the petition alleges that the law firm and the individual defendants offered a thing of value (i.e., a release of purported ADA claims) to the Banks with the intent to obtain in return payment from the banks for the rendition of legal services. They were demanding employment as their attorney in exchange for the release of their claims.

Because this is hitting so many of our banks, we are running a copy of a recent article from the ABA Banking Journal with the latest information on a national basis. Please feel free to reach out to us with any questions you may have. We will continue to stay on top of this issue.

ABA STAFF

BILL HOLMES

PRESIDENT/CEO 501.978.3602 | bill.holmes@arkbankers.org

CARLA BRINKLEY

VP/CONTROLLER 501.978.3608 | carla.brinkley@arkbankers.org

AVA F. ROBERTS

VP/DIRECTOR OF GOVERNMENT RELATIONS 501.978.3606 | ava.roberts@arkbankers.org

JESSICA SAHENE

MARKETING COORDINATOR 501.978.3609 | jessica.sahene@arkbankers.org

HEATHER HAILE

COMMUNICATIONS INTERN 501.978.3603 | marketing@arkbankers.org

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The Arkansas Banker | December 2016 The Arkansas Banker | February 2017

PRESIDENT & CEO BILL HOLMES

BARRY JACKSON

SVP/COO 501.978.3613 | barry.jackson@arkbankers.org

KAMI T. COLEMAN

VP/PROFESSIONAL DEVELOPMENT 501.978.3614 | kami.coleman@arkbankers.org

TRACI LOGSDON

DIRECTOR OF COMMUNICATIONS 501.978.3603 | traci.logsdon@arkbankers.org

BRENDA SCARBROUGH

PROFESSIONAL DEVELOPMENT COORDINATOR 501.978.3607 | brenda.scarbrough@arkbankers.org

Avoiding the Website Accessibility Shakedown

by Toni Cannady

Website accessibility demands are on the rise, and mobile apps are next. While “a picture is worth a thousand words” to most, it is meaningless to someone who is blind. Similarly, other features provided on websites and mobile apps are useless to those with other disabilities absent builtin accessibility features.

Nearly six years ago, the Department of Justice began the rule-making process for website accessibility provided by covered entities under the Americans with Disabilities Act. Today, DOJ—the agency charged with enforcing ADA—continues to delay the issuance of Title III website accessibility regulations until 2018. But banks cannot wait until 2018. Demands for accessibility to websites are circulating now.

This comes as no surprise. For years, plaintiffs’ firms have used the ADA to obtain large sums of money from companies, including banks. This trend began with physical barriers, then moved on to ATMs. Most recently, a growing number of plaintiffs’ firms have been sending demand letters to various companies, including banks, alleging that people with disabilities are denied access to online goods and services in violation of ADA. The letters seek an out-of-court settlement, injunctive relief and attorney’s fees and costs.

Since the beginning of 2015, more than 244 federal lawsuits have been filed throughout the country against companies of all sizes, including banks.

Carlson Lynch Sweet & Kilpela LLP, a Pittsburgh-based firm, continues to lead this crusade to demand that banks and others comply with WCAG 2.0 AA. WCAG 2.0 AA is a technical standard published by the World Wide Web Consortium and one which DOJ apparently prefers—but has not yet

adopted. Many cases settle after receipt of the demand letter without suit being filed. However, in some cases where no settlement is reached, plaintiffs have proceeded to court. In such cases where the court case is proceeding, banks and other companies have typically quickly settled to avoid further litigation costs as attempts to dismiss the suit are often, if not always, denied.

These demands for ADA compliance raise many questions for covered entities— specifically about the legal requirements under Title III for websites and mobile apps.

Title III Requirements Title III of the ADA specifically requires public accommodations, including banks, to provide auxiliary aids and services to ensure effective communication absent an undue burden or fundamental alteration to the goods and services.

However, considering the resources of most financial institutions, it is unlikely that DOJ or a court would conclude that website accessibility modifications would cause undue burden to a bank.

This obligation is a top priority at DOJ. In 2010, DOJ amended the definition of auxiliary aids and services to include “accessible electronic information technology (EIT).” Thus, banks are required to provide accessible EIT to ensure effective communication with individuals with visual, hearing, motor and cognitive disabilities.

DOJ continues to affirm this analysis through its longstanding position that public accommodations have an existing duty to provide an accessible website, even in the absence of a legal standard.

With that in mind, banks should begin to carefully assess their websites and mobile apps for accessibility deficiencies.

“

“Since the beginning of 2015, more than 244 federal lawsuits have been filed throughout the country against companies of all sizes, including banks.”

”

What’s the legal standard?

There is none, at least officially. However, all signs point to WCAG 2.0 AA for websites. WCAG 2.0 AA is the website accessibility standard incorporated into DOJ’s settlement agreements, used in its enforcement actions and considered in the most recent supplemental advance notice of proposed rulemaking issued by DOJ in April 2016. The standard seeks to ensure that people with disabilities can access online information by providing coding guidelines to assist website developers in crafting accessible websites.

Unlike websites, there is no universally accepted standard for mobile applications, and no indication from DOJ as to what an accessible mobile application entails.

However, DOJ mentioned mobile apps when it intervened in the National Federation of the Blind’s lawsuit against H&R Block in 2013, noting that the tax preparation company’s mobile apps precluded individuals with disabilities from having equal access to H&R Block goods and services, an indication that mobile apps are on the agency’s enforcement radar.

February 2017 | The Arkansas Banker

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In the absence of a legal standard, courts continue to use a very practical rather than technical analysis regarding the definition of accessibility. Specifically, they look to whether disabled individuals are able to use the website and access the companies’ products, goods and services.

The ADA requirements and this analysis also apply to bank websites provided by third-party vendors. They do not, however, apply to unaffiliated websites accessed through a link on a bank’s website.

Next Steps As an initial step to mitigate legal risks and ensure website accessibility compliance, banks should assess their websites and seek expertise from website accessibility consultants to ensure their websites provide equal access to the online goods and services for those with disabilities.

In addition to conducting audits, banks should implement accessibility policies and procedures and provide these

ABA EXECUTIVE COMMITTEE

SEAN WILLIAMS | CHAIRMAN

protocols on the company’s website in addition to a portal for customers to provide feedback. With the recent surge of accessibility complaints, having a place for customers to report critical website accessibility concerns allows banks to evaluate potential risks and take steps to identify lingering website accessibility issues.

More difficult may be third-party vendors’ cooperation. Banks should include WCAG 2.0 AA compliance in vendor contracts. Simply stating “the vendor will comply with the law,” is not enough, particularly in the website accessibility space, where at present there is neither statutory text nor regulation providing a legal definition for website accessibility.

Equally important, banks should train employees responsible for website and mobile app maintenance. WCAG 2.0 is a very technical standard requiring sound expertise. Banks should be diligent and ensure adequate training and WCAG certification for its website experts.

DAVE DICKSON | CHAIRMAN-ELECT

CATHERINE OWEN | VICE CHAIRMAN

First National Bank of Wynne, Wynne

Union Bank & Trust Co., Monticello

Eagle Bank, Little Rock

JUDY LAWTON | TREASURER Heartland Bank, Little Rock

The Citizens Bank, Rogers

ROBERT Y. TAYLOR | PAST CHAIRMAN

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

ABA BOARD OF DIRECTORS

PAT ANDERSON | GROUP 5

DAVID DOWD | GROUP 1

JON HARRELL | GROUP 3

JERRY MORGAN | GROUP 1

Simmons Bank, Pine Bluff

Cross County Bank, Wynne

Generations Bank, Rogers

Focus Bank, Jonesboro

PHIL BALDWIN | GROUP 2

TROY DUKE | GROUP 5

DARWIN HENDRIX | GROUP 4

RANDY SCOTT | GROUP 1

Citizens Bank, Batesville

Gateway Bank, Rison

Bank of Delight, Delight

Farmers Bank & Trust Co., Blytheville

JIM CARGILL | GROUP 2 Arvest Bank, Little Rock

DON GIBSON | GROUP 3 Legacy National Bank, Springdale

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

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

GENE CRAWFORD | GROUP 5

CHRIS GOSNELL | GROUP 4

CRAIG MOBLEY | GROUP 4

LYNN WRIGHT | GROUP 2

First National Bank of Crossett, Crossett

Farmers Bank & Trust Co., Magnolia

First Financial Bank, El Dorado

SCOTT HANCOCK | GROUP 3

WILSON MOORE | GROUP 2

Centennial Bank, Fayetteville 66

Finally, banks should recognize that accessibility is a continuing obligation.

Bottom line? Website accessibility requires continuous auditing, monitoring and review of websites and mobile apps to ensure accessibility.

The The Arkansas Arkansas Banker Banker || February February 2017 2017

Bank of America, Little Rock

Regions Bank, Little Rock

ABA Live Events ABA Professional Development

Live Events...

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

MARCH 2017

6 | Best Practices for Real Estate & Commercial Lending

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| Introduction to Commercial Lending

| Bank Directors Workshop II

Holiday Inn Presidential, Little Rock Who Should Attend: Commercial Lenders, Credit Officers, and Consumer Lenders

Arkansas Bankers Association, Little Rock Who Should Attend: Commercial Lenders, Consumer Lenders, Credit Officers

20-24 | CRCM Boot Camp

Tennessee Bankers Association Who Should Attend: Compliance professionals with a solid foundation of knowledge of federal banking laws and regulations who plan to sit for the CRCM exam. This event is not appropriate for those new to compliance.

APRIL 2017 4

| Loan Assistants & Processors Workshop

19

5

| Asset Based Lending

24-28 | Commercial Lending School

Crowne Plaza, Little Rock Who Should Attend: Loan Assistants & Processors, Credit Administration Supervisors, Loan Support Staff Arkansas Bankers Association, Little Rock Who Should Attend: Commercial Lenders, Credit Analysts, Loan Review Staff

Crowne Plaza, Little Rock Who should attend: Bankers with a minimum of one year of experience in commercial lending or credit administration in a bank, or five years of banking experience. Bankers who have successfully completed courses in commercial lending, analyzing financial statements, economics, or equivalent coursework

10-12 | 127th Annual Convention

Robinson Center, Little Rock Who Should Attend: Everyone

17-18 | Training the Credit Analyst

Arkansas Bankers Association, Little Rock Who Should Attend: Lenders, Loan Officers, and Credit Analysts

MAY 2017

24

| Secure Loan Documentation

Arkansas Bankers Association, Little Rock Who Should Attend: Commercial lenders, credit analysts, loan documentation specialists, relationship managers, branch managers, private bankers, and business development officers.

Arkansas Bankers Association, Little Rock Who Should Attend: Bank Directors, Executive Management, Shareholders

26-27 | Supervisor Boot Camp

Arkansas Bankers Association, Little Rock

Who should attend: Anyone in the institution with supervisory oversight would benefit from this workshop.

25

| Real Estate Loan Documentation

Arkansas Bankers Association, Little Rock Who Should Attend: Commercial lenders, credit analysts, loan documentation specialists, branch managers, private bankers, and business development officers

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

February 2017 | The Arkansas Banker

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EMERGING LEADERS UPDATE 25 Revealing Stats

As we all have seen, banking has changed dramatically over the last few years. In order for banks to evolve and change to fit customer’s needs and wants, it is key for us to understand our audience and the statistics related to it.

Trupoint Partners did a survey in October 2016 that revealed 25 statistics that every banker needs to know to succeed in 2017.

1. If their primary bank closed their local branch, 81% of consumers would NOT switch banks.

2. 38% of consumer rank “good online banking services” as the top reason they stay with their bank.

3. 43% of consumers 55 and older prefer the online channel to the branch.

4. In 2020, 66% of consumers expect to use the branch as often as or more than they do today.

5. More adults are focused on using their mobile devices to manage their finances than their fitness.

6. More than 54% of consumers use a mobile banking app.

7. More than 35% of consumers who use a mobile banking app will check it once a day (or more).

8. More than 40% of consumers said that constant access to their finances via an app reduced their stress.

9. In 2015, Millennials overtook Baby Boomers as the largest living generation, and banks need to consider how to connect with them.

10. 18% of Millennials switched their primary bank in the past year.

11. More than 50% of consumers would consider using a peer-to-peer money transfer service from their bank; of that number, 7% already are.

12. Banks will be challenged to re-frame their relationship with consumers, as 79% view their relationship with their bank as “transactional”.

13. 41% of consumers still apply for more complex products, such as mortgages and personal loans, in the branch.

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The Arkansas Banker | February 2017

14. Approximately 90% of new-to-bank checking accounts are opened in the branch.

15. More than 33% of community banks cite regulatory and legislative pressure as the largest barrier to significant growth.

16. The DOJ has received at least 119 Fair Lending referrals since 2010. To compare, they only received 30 referrals between 2001 and 2008.

17. Regulators have issued more than $40M in Redlining-related fines, settlements and enforcement actions since Q2 2015.

18. More than two-thirds of financial institutions expect to spend more on compliance next year.

19. Approximately 60% of financial institutions expect the personal responsibility of compliance officers to increase.

20. 63% of financial institutions in the U.S. expect that their compliance team budgets will increase in 2017.

21. Only 2 banks have been approved for de novo charters since 2010, more than 1,500 institutions have closed or merged.

22. Compliance costs community banks approximately $4.5 billion, or 22% of net income, annually.

23. Approximately 80% of community banks nationwide have more than one branch.

24. Less than 1% of community banks nationwide believe that they will face less competition next year.

25. The net income of community banks increased 28% in Q4 2014.

Personally, I am a stats person. I think numbers can tell us a lot about where we have been and where we are headed. Maybe we all can use these stats to help plan for our banks future to make banking in Arkansas better each day, month, and year.

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

ABA Webinars ABA Professional Development

Webinars...

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

WEDNESDAY, MARCH 1 Introduction To Consumer Lending 10:00 a.m. - 11:30 a.m.

THURSDAY, MARCH 2 FCRA Review and Update 10:00 a.m. - 12:00 p.m.

Building Your Brand on a Limited Budget 10:00 a.m. - 11:30 a.m.

Achieving Unclaimed Property Compliance Best Practices 1:30 p.m. - 3:30 p.m.

Building An Effective Marketing Plan 2:00 p.m. - 3:30 p.m.

FRIDAY, MARCH 3

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

Commercial RE Appraisals: Reviewing & Interpreting: Part III 10:30 a.m. - 12:00 p.m.

Compliance 101: Rules for Consumer & Mortgage Lenders 1:30 p.m. - 3:30 p.m.

MONDAY, MARCH 13 Advanced Tax Return Analysis for the Banker 10:00 a.m. - 12:00 p.m.

TUESDAY, MARCH 14 Critical Issues on Certificates of Deposit (CDs) 10:00 a.m. - 12:00 p.m.

Keys To Understanding Personal & Global Cash Flow: Part III 1:00 p.m. - 2:30 p.m.

Dealing With Powers of Attorney 10:00 a.m. - 11:30 a.m.

Strategies on How To Measure & Reserve for Credit Risk 2:00 p.m. - 3:40 p.m.

Fundamentals of Interest Rate Swaps and Caps: Part I 1:30 p.m. - 3:00 p.m.

WEDNESDAY, MARCH 8

Commercial Real Estate Cash Flow/ Global Cash Flow: Part IV 8:30 a.m. - 10:00 a.m.

UCC Rules: How To Comply 10:00 a.m. - 12:00 p.m.

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

MONDAY, MARCH 6

Vital Check and Deposit Issues 10:00 a.m. - 12:00 p.m.

Commercial Construction Lending 1:30 p.m. - 3:30 p.m.

THURSDAY, MARCH 9

Commercial RE Appraisals: Reviewing & Interpreting: Part IV 10:30 a.m. - 12:00 p.m.

Regulation E Final Changes on Prepaid Cards 1:30 p.m. - 3:30 p.m.

Keys To Understanding Personal & Global Cash Flow; Part IV 1:00 p.m. - 2:30 p.m.

TUESDAY, MARCH 7 Commercial Real Estate Cash Flow/ Global Cash Flow: Part III 8:30 a.m. - 10:00 a.m.

Problem Loan Identification and Prevention 9:30 a.m. - 11:00 a.m.

Getting in the Door With Prospects: Leverage Your Network 10:00 a.m. - 11:00 a.m.

Legal Liabilities When Check Fraud Occurs 10:00 a.m. - 12:00 p.m.

FRIDAY, MARCH 10 BSA Emerging Issues 2017 10:00 a.m. - 12:00 p.m.

How To Craft An Effective Commercial Loan Write-Up 10:00 a.m. - 11:30 a.m.

WEDNESDAY, MARCH 15 Analyzing Appraisals for Mortgage Decisions 1:30 p.m. - 3:30 p.m.

15 Steps To Profitable/Prudent Construction Lending 10:00 a.m. -11:30 a.m.

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

February 2017 | The Arkansas Banker

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GOVERNMENT RELATIONS Grassroots Endeavors of ABA: A Team Effort The 2017 Arkansas Legislative Session is in full swing and we want to take this opportunity to thank you for your support and commitment to Government Relations and the impact we make together for Arkansas Banking. This January and February, bankers took advantage of opportunities to participate in Coffee and Committee, a program that began in 2015, as a way for our members to get a refresher in the legislative process and attend a committee hearing at the House or Senate. Attendees gather at the Arkansas Bankers Association offices for coffee to discuss the day’s committee hearing agenda and bills that might be heard that morning before moving to the Arkansas Capitol.

During these meetings, bankers are able to observe the discussion amongst the Representatives and see the impact witness testimony may have on the legislators and the decisions they make. Being familiar and comfortable with the process is an important component to develop the relationships between bankers and Representatives. An open dialogue with the political leaders of our state allow us to be a united voice for our industry.

The Coffee and Committee meeting held Wednesday, February 8, coincidentally coincided with the possibility of the running of HB 1448, a bill that would allow Credit Unions to take public

funds deposits. That morning in the Capital building, bankers were frequently approached by both lobbyists and Representatives to discuss this bill and witnessed Representatives’ voice their intended vote. Ultimately, however, HB 1448 did not run that day.

Earlier in the week, bankers were alerted to HB 1448 and several hundred emails flooded state representatives, outlining the discrepancies that arise when allowing institutions that do not pay state and federal income taxes the unfair advantage of accepting public funds deposits.

Whether electronically or in person, bankers’ grassroots opposition to HB 1448 cannot be ignored. Either through participation in ABA GR events, such as Coffee and Committee, forwarding a talking points e-mail to your state representative, or fostering that relationship with your elected official, ABA’s Government Relations success depends on your efforts.

VP / DIRECTOR OF GOVERNMENT RELATIONS AVA F. ROBERTS

Although the official Coffee and Committee events are over for the 2017 session, we encourage you to reach out to ABA should you want to visit the Capitol or be connected with your Representative or Senator. You are more than welcome to come to the Capitol to participate in the process. Become a part of the team of banker voices that unite our industry and lead to success at the state Capitol.

ABA EMERGING LEADERS SECTION COUNCIL Stone Bank, Little Rock

BLAKE FLETCHER | PRESIDENT

JOHN ANDERSON | VICE PRESIDENT Malvern National Bank, Little Rock

GEORGE PURVIS | SEC./TREAS. Cornerstone Bank, Eureka Springs

EDUARDO ABRIL | GROUP 4 First State Bank of DeQueen, DeQueen

BURT HICKS | GROUP 5 Simmons Bank, Pine Bluff

BEN RIDINGS | GROUP 2 Bank of the Ozarks, Little Rock

NATALIE BARTHOLOMEW | GROUP 3 First National Bank of NWA, Rogers

BLAKE JOHNSON | GROUP 1 Evolve Bank, Jonesboro

RACHEL SCHWARTZ | GROUP 4 Farmers Bank & Trust, Texarkana

JOHN BOLLINGER | GROUP 3 Simmons Bank, Fayetteville

JAMES LYLE | GROUP 5 McGehee Bank, McGehee

SANDY STARNES | GROUP 2 The Citizens Bank, Batesville

BRANDON GENTRY | GROUP 1 Cross County Bank, Wynne

RYAN MOORE | GROUP 1 Centennial Bank, Jonesboro

HUNTER WINDLE | GROUP 4 Malvern National Bank, Malvern

ROBERT HARGIS | GROUP 5 The Citizens Bank, Monticello

HUNTER NORTON | GROUP 3 First Security Bank, Fayetteville

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The TheArkansas ArkansasBanker Banker || February February2017 2017

AmBA Training ABA Professional Development

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Managing Interest Rate Risk

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3/3/17 - 5/19/17

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5/1/17 - 5/26/17

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Fundamentals of Mortgage Lending

Bank Lines of Business

3/6/17 - 3/31/17

Bank Lines of Business 3/6/17 - 3/31/17

4/3/17 - 5/12/17

Consumer Lending 4/10/17 - 7/28/17

Building Customer Relationships

CRCM Online Review

3/13/17 - 4/7/17

4/10/17 - 7/28/17

The Banking Industry

General Accounting

3/20/17 - 4/14/17

4/10/17 - 7/28/17

Building Customer Relationships

The Banking Industry

3/27/17 - 4/21/17

Managing the Bank’s Investment Portfolio 3/27/17 - 4/28/17

Analyzing Financial Statements 4/3/17 - 7/21/17

The Banking Industry 4/3/17 - 4/28/17

Bank Lines of Business 4/3/17 - 4/28/17

Building Customer Relationships

4/17/17 - 5/12/17

5/1/17 - 5/26/17

General Accounting 5/1/17 - 8/18/17

Commercial Lending 5/5/17 - 8/4/17

Consumer Lending 5/8/17 - 8/25/17

Law and Banking: Principles 5/8/17 - 8/25/17

Bank Lines of Business

Building Customer Relationships

4/17/17 - 5/12/17

5/30/17 - 6/23/17

Building Customer Relationships

The Mortgage Lending Business

4/17/17 - 5/12/17

5/30/17 - 7/7/17

Basic Administrative Duties of a Trustee

Bank Lines of Business

4/17/17 - 5/19/17

Marketing Financial Services 4/17/17 - 8/4/17

Law and Banking: Applications

6/5/17 - 6/30/17

CTFA Online Review Course 6/5/17 - 8/25/17

General Accounting 6/5/17 - 9/22/17

4/24/17 - 8/11/17

4/3/17 - 4/28/17 For more information about AmBA Training, log on to www.arkbankers.org or call 501.376.3741

February 2017 | The Arkansas Banker

11

Welcome To the 127th Annual ABA Convention Click here register for the 2017 ABA Convention!

You’re invited to the 127th Annual ABA Convention!

Explore the Newly Renovated Robinson Center

Recently the ABA board of directors and membership asked for our Annual Convention to be overhauled and enhanced. The challenge was accepted and, after months of intense planning by the ABA staff and board, we are pleased to unveil the all new Arkansas Bankers Association Annual Convention.

The 2017 convention has been revamped to bring you more of what you want: More peer networking: Bring your family, be a part of our Game Night featuring Pop-A-Shot basketball, skee ball, air hockey, foosball, putt putt golf and Baggo.

Energized agenda: A more leadership-focused agenda with uplifting ideas to take home to your bank.

Upgraded speakers: Three first-class speakers, including Colonel Mark Tillman, the Air Force One Commander and pilot on 9/11.

Golf returns to the Annual Convention: Join your fellow bankers and guests for 18 holes of beautiful terrain and natural surroundings.

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We are excited to host the ABA Annual Convention in the newly renovated Robinson Center in downtown Little Rock!

The Robinson Center is a landmark facility, featuring an all new conference center and world-class performance theater. Its $70 million renovation and expansion project was recently completed, and we are thrilled to entertain you in this beautiful setting complete with sweeping views of the Arkansas River and beyond.

Take in the sights of the new Broadway Bridge design, view the ballpark lights of Dickey-Stephens Park, home of the Arkansas Travelers, and enjoy the springtime air on the newly opened terrace.

The Robinson Center is conveniently located downtown, only a short walk away from the Old State House Museum and many of the top restaurants in Central Arkansas for you to enjoy. Other local sites are just a trolley ride or a short drive away.

The The Arkansas Arkansas Banker Banker || February February 2017 2017

Golf Maumelle Country Club

The annual Convention Golf Tournament is back and better than ever. Join bankers from across the state on Monday, April 10 as we take on the Maumelle Country Club for a 4-man scramble. Everyone is invited to participate in this tournament, so recruit your co-workers or customers to join the fun!

Sundaes on a Monday

Not a golfer? Join the ABA poolside at the DoubleTree Hotel for an ice cream social on Monday, April 10 from 2:00–4:00 p.m. There will be food, music and good company. Be sure to bring the family!

Game Night

Celebrate Arkansas’ Schedule of Events Banking Industry Veterans Monday, April 10 Golf Tournament

Sundaes on a Monday Game Night

Tuesday, April 11 ABA Business Session

Join us on Monday, April 10 from 6:00-8:00pm and bring your competitive side to kick off our all new Game Night! Watch current and historic sporting events on the big screens while challenging fellow bankers to games of Pop-A-Shot basketball, skee ball, air hockey, foosball, putt putt golf, shuffleboard, bowling, and Baggo. There will be something for everyone at this action-packed event and it is sure to be the new favorite networking tradition for bankers and their families.

Annual Banquet

Featured Speakers Kevin Brown & Dr. Randy Harrington Meet and greet some of Arkansas’ banking industry veterans as they are honored for their service during the third annual BKD Milestones in Banking Awards on Tuesday, April 11. Representing banks from across the state, these individuals will be honored for reaching their 40 and 50-year benchmarks in the industry.

Annual Day with the Commissioner

Milestones in Banking Awards Keynote Speaker Colonel Mark Tillman CNA Chairman’s Reception DD&F Legacy of Leadership ABA Annual Banquet & Officer Installation

Wednesday, April 12

Simmons Strawberry Breakfast Day with the Commissioner

Join us for the ABA Annual Convention We look forward to seeing you in Little Rock April 10-12!

Tuesday, April 11 evening’s events will include the CNA Chairman’s Reception and DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation. Both events will feature the ABA BankPAC silent auction.

Wednesday, April 12 will feature the 21st annual “Day with the Commissioner” hosted by the Arkansas State Bank Department. Each year, Commissioner Candace Franks schedules an information-packed speaker line-up to update bankers on current topics facing the industry’s changing environment.

Registration is easy, just log on to www.arkbankers.org/Convention.aspx to register online.

Any questions may be directed to Kami Coleman at 501.978.3614 or kami.coleman@arkbankers.org.

February 2017 | The Arkansas Banker

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The HERO Effect™

Being Your Best When It Matters the Most The world needs heroes.

ABOUT THE AUTHOR

Kevin Brown is a marketing professional for SERVPRO who grew up in Muskegon, Michigan where his blue collar roots taught him the value of hard work and determination.

With a street-wise aptitude and a never quit attitude, he worked his way from the front lines to the executive boardroom of a company that is ranked in the top ten of all franchisers and #1 in their industry.

For the past seventeen years, he has been part of an extraordinary team that has grown a little known brand into an industry giant with annual revenues exceeding one billion dollars.

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From the time I was a little boy I have been fascinated with heroes. I never imagined that one day I would grow up and be called to share a message with the world about what it means to be a hero in everyday life. To help people discover the best version of themselves and use their own inner hero to serve others well.

clients look like heroes to their customers.

They said “we want a speech that honors our franchisees and reminds them of why they do what they do. We want them to know that what they do matters and to stay on top they have to continue to serve others at a high level.”

The one word that jumped off the page was HERO.

It started by accident. In 2008 I was asked to speak for a group of franchisees. Two thousand people would sit in a ballroom to hear a message from me. I met with the leadership team three months before the event and asked a simple question.

What would you like me to talk about? I assumed they would request the typical speaker topics.

From that day until now I have not stopped researching, studying and learning about what heroes look like in everyday life. It started as a question and it quickly became my passion. And today that passion has become my great obsession; To help people recognize the heroes around them and develop the one within them.

Leadership.

What does a hero look like? How do they act? How do they serve? How do they see people? How do they see themselves?

Vision.

Communication.

Customer Service.

As it turned out, they didn’t want a typical speech. They wanted something different.

They explained to me that this group of franchisees were the best in their class.

Number one in their industry. They were successful, been there done that kind of people who know exactly what it means to be the best. They shared with me that the research showed that they helped their

The The Arkansas Arkansas Banker Banker || February February 2017 2017

I began looking at the heroes in our world. The ones we pull out of the pile of humanity and proclaim them to be unordinary. Unique and gifted. So much so that we stop and admire them. We emulate them. We adore them. We pay a premium to be entertained by and do business with them.

I started with our military men and women. The gold standard in the business of being a hero. I thought about the world

“ ” “The HERO is driven to serve others and understands that the greatest rewards in life are determined by how well we take care of the people we live and do business with.”

changers. The people who stood up when the world needed a leader. They shaped our collective thinking. I looked at our sports heroes, great entertainers and the great innovators. What do they do that separates them from everybody else?

How do they defy the odds, overcome circumstance and soar above the crowd over and over again?

I decided to look closer to home. What was it about great teachers and parents and small business owners? Why were some bosses born to lead and others wouldn’t even follow themselves? Why do some employees show up everyday and knock it out of the park? Why do some people own the moments that matter and know instinctively that ever moment matters??

I began to notice four things that were apparent in how heroes operate. Four things that they do differently, more consistently and at a higher level than everyone else.

1. Heroes Help People...with NO STRINGS ATTACHED! They go “all in” every time they take the field. They understand that in business and in life it’s always personal and never perfect.

Heroes create strong connections and reach beyond the borders of transactional

thinking to create transformational moments!

2. Heroes Create an Exceptional Experience: The HERO’s calling card is pure excellence. It’s about using their talents, gifts and abilities to their fullest potential and highest purpose. The HERO uses the best of who they are to serve more people, more often, in bigger and better ways. The HERO is committed to personal development and shows up better today than they were yesterday.

Heroes build trust by serving others with an authentic passion that turns everyday moments into superhuman experiences.

The HERO is driven to serve others and understands that the greatest rewards in life are determined by how well we take care of the people we live and do business with.

3. Heroes Take Responsibility: HEROES own the moments that matter! They are actively present and engaged and do not believe in random acts of kindness…the HERO is motivated instead by intentional acts of difference making. They live by a simple code; “bring your best stuff to the present moment and pour it into the lives of others.” They understand that before you can lead anyone else, you must first be able to lead yourself. The HERO owns their attitude, their actions and their results. They are committed to the best possible outcome in every situation regardless of circumstances or events beyond their control. The HERO leads by example and knows that true success is found in the power of simple choices.

and they will, optimism is what helps the HERO turn life’s messes into a masterpiece.

I want to challenge you and encourage you to be a hero at work and in life. To live and work on a different plane. To tune into a different frequency. To be the extraordinary person you were born to be and show up everyday and choose NOT to be ordinary. To achieve greater results by eliminating “ordinary" thinking and mastering the habit of excellence in all that you do. It’s time to own the moments that matter and create meaningful relationships with every customer at work and at home.

The world needs heroes. More specifically, the world needs your hero.

Hear more from Kevin Brown at the 2017 Convention!

4. Heroes Live and Work with Optimism: HEROES see the world differently. For them, it’s not about positive thinking, it’s about perspective. Looking through the lens of optimism gives the HERO supernatural vision. They see what others cannot. They see opportunities instead of obstacles – possibilities instead of problems. When things go wrong…

February 2017 | The Arkansas Banker

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When Two is One: Add Horsepower to Your Senior Team

ABOUT THE AUTHOR

Randy Harrington, PhD is CEO, owner of Extreme Arts & Sciences, and co-founder and owner of Strategic Arts & Sciences and Best Practices Media. He is on the University of Mississippi MBA School of Business Administration Alumni Board, and is a popular instructor and advisor for the annual Ole Miss Speaker’s Edge event, which coaches students on high-impact public speaking and the fact that communication is a vital part of the business world. With a natural gift for quickly assessing complex problems, Harrington consults with clients to find practical, high-impact solutions.

Hear more from Dr. Randy Harrington at the 2017 Convention!

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Navy SEALs are amazing. They are diverse, intelligent, ferocious, and surprisingly compassionate men who represent the point of the spear in our elite Special Warfare units. For the past 20 years, I have had the pleasure of working with several retired SEALs. Nothing adventurous mind you.

Outside of drinking shots of tequila with SEALs at McP’s Irish Pub in Coronado, California—none of the work has been the least bit dangerous. I like working with SEALs because they bring a very refined perspective to usually fuzzy issues like “leadership” and “teamwork.”

A case in point.

In researching our first book, Evolutionaries: The Missing Link in your Organizational Chart, former SEAL Commodore Steve Ahlberg described the recipe for developing a corporate teamwork culture in three sentences. “In The Teams, you always work in pairs, you always have a swim buddy, and if you can’t work with one other person there is no way you will

The The Arkansas Arkansas Banker Banker || February February 2017 2017

“

“In The Teams, you always work in pairs, you always have a swim buddy, and if you can’t work with one other person there is no way you will ever be a team member and you will never be a SEAL. ”

”

−former SEAL

Commodore Steve Ahlberg

ever be a team member and you will never be a SEAL. Then we put pairs together to make boat crews, and then we put boat crews together. Building team culture is simple, (and then he added) but it’s not easy.” Ahlberg’s comment is captured in the SEAL maxim, “Two is one and one is none.” This refers to redundancy in gear (two parachutes, two radios etc.) and it refers to the essential element of any high performing team—two people working together.

In the last few years the term “Leadership Team” has become a popular way to describe a bank’s “Chiefs” or SVP’s.

Never mind that these groups rarely act as a real team. And if you do push the idea of actually working as a team—the

experience can be exasperating. It will mean lots of meetings, often wondering, “Do I really need to be here for this?”

At the senior level, teamwork seems like a good idea, but it often bogs down processes. Just like Ahlberg said, simple, but not easy.

In my presentation, When Two is One: Essential Points of Collaboration for your Senior Team, I argue that the digital world demands key points of interdependence among senior team members. Don’t think as much about a “senior team” per se, instead think about “senior swim buddies.” I call them “High Performance Dyads.” (It’s academic I know, but that’s how I roll.) Social media, risk management, growth, mergers, and customer experience are all strategic issues well served with select pairs of executives. The tricky part is in the way these efforts are commissioned and

evaluated. In my presentation, we will discuss how to increase decision speed and quality—while avoiding pitfalls.

The cool thing about high performance dyads is that they give you the advantages of teamwork while allowing your executives to cover a lot more strategic ground more quickly. And, as you go along, you will naturally be establishing a powerful team culture that can permeate your entire organizational culture.

The bottom line is that banking is more complex than ever and the tempo is getting faster all the time. The net effect of the digital world is that speed is king for every phase of banking; market knowledge, response time, decision cycles, data review, service delivery, and on and on. The SEALs say, “The only easy day was yesterday.” Maybe bankers need to be saying that too. The old days of annual

planning cycles and quarterly reviews are gone. Now it is an hour by hour effort, and your office follows you wherever you go with your smart-device. You need help, but you don’t need a committee. That is what this presentation is all about.

Oh, and check out our new book Slammed: Succeeding in a World of Too Busy, it just might help.

February 2017 | The Arkansas Banker

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Best Practices in CRE Lending Workshop Monday, March 6, 2017

Even though commercial real estate (“CRE”) lending is less regulated than consumer mortgage lending, CRE lending can be much more complex and face significant legal challenges. Lenders need to have a strong understanding of the regulatory requirements and other legal risks associated with CRE lending. To promote strong CRE lending practices for its members, the Arkansas Bankers Association is hosting a Best Practices in CRE Lending Workshop on Monday, March 6, 2017, which will cover many

ABOUT THE AUTHOR

Daniel J. Beck, J.D., LL.M. is an associate specializing in banking law, commercial lending, finance, compliance, and real estate.

Hear more from Daniel Beck, Tim Grooms, and more at the Best Practices in CRE Lending Workshop!

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of the legal risks associated with CRE lending. The Workshop will be presented by myself and other attorneys of Quattlebaum, Grooms & Tull PLLC. Commercial Credit Applications While the phrase “commercial credit application” seems foreign, financial institutions may be using written commercial credit applications in the near future to comply with the Equal Credit Opportunity Act (“ECOA”) and new data collection rules. Even if financial institutions do not develop written commercial credit applications, their lenders need to know how the ECOA applies in commercial lending situations, what disclosures are currently required, and what information lenders will need to collect from commercial borrowers in the near future. The Workshop will cover these issues, as well as other regulatory requirements in the early stages of a CRE lending transaction, including when it is appropriate to use an evaluation versus an appraisal and how lenders can avoid the High Volatility Commercial Real Estate (or HVCRE) lending capital requirements.

CRE Loan Documents and Other Due Diligence Lenders should a solid understanding of the loan documents that they will be signing and the due diligence that is necessary to secure their financial institution’s money and collateral. The Workshop will provide a thorough checklist of the items lenders should require from their borrowers and why

The Arkansas Banker | February 2017

they are important. The Workshop will also discuss best practices for filing Uniform Commercial Code financing statements, obtaining proper corporate authority from a business entity, what title insurance actually insures and what endorsements are important, and the importance of surveys and survey certificates.

Environmental Liability and Bankruptcy Finally, there is always the risk that borrowers will have an environmental incident or fail to repay the loan. The Workshop will discuss why and when environmental site assessments are needed and the risks CRE lenders and their borrowers face if an environmental incident occurs. The Workshop will also cover what CRE lenders should know if a default occurs and the property is foreclosed upon and placed in receivership or if the borrower files bankruptcy.

Please join the Arkansas Bankers Association and members of Quattlebaum, Grooms & Tull PLLC for this half day Best Practices in CRE Lending Workshop. Even if you’ve been practicing CRE lending for years, a better understanding of the legal pitfalls associated with CRE lending will allow you to identify legal risks in the future and provide you greater strength when negotiating with borrowers to ensure your financial institution is protected from legal risks.

ABA

March 20 –24, 2017 | Nashville, Tennessee

BOOT CAMP

Prepare with Confidence

Make Your Mark. Become a CRCM. Looking to advance your career by acquiring the Certified Regulatory Compliance Manager (CRCM) credential? The ABA CRCM Boot Camp was developed for you. This program is offered

by ABA in partnership with six state bankers associations: Arkansas, Kentucky, Mississippi, North Carolina, Tennessee and Virginia.

Program benefits include: • An intensive four-day program that prepares you for the CRCM Exam • In-class review of representative exam questions • Expert faculty provide real-time feedback and interaction • The eBook edition of the ABA Guide to Regulatory Compliance included in your registration fee.

• Earn valuable CRCM credits to help you meet CRCM eligibility requirements • Option to sit for the exam on March 24, 2017

Register Today!

Contact Kami Taylor Coleman at kami.coleman@arkbankers.org or call 501-978-3614.

February 2017 | The Arkansas Banker

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IRA Advanced Update & Review Seminar Twenty-four bankers were in attendance at the IRA Advanced Update & Review seminar held at the Crowne Plaza in Little Rock on Tuesday, February 7th. The seminar focused on separating fact from fiction for the more technical areas of IRAs, warning against following the advice of “experts” that post things on the Internet that appear to be vague or many times fabricated regarding retirement account rules and regulations. Instructor Patrice M. Konarik discussed the lack of training and misuse of the terminology “rollover” vs. “transfer,” and the problems that have occurred due to this oversight, and warned about enacting policies that go against IRS regulations.

This program also focused on recent changes in IRS regulations. Each participant received the complete 275-page Sunwest Training IRA Training and Reference Manual—the “Red Book”, which is constantly updated to reflect the new regulations.

You can find the form to order this manual on the following page.

Patrice M. Konarik, president of Sunwest Training Corporation, speaks to bankers about changing IRS regulations and how to keep up.

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The Arkansas Banker | February 2017

Bankers from across the state listen as Patrice M. Konarik, president of Sunwest Training Corp, speaks about changing IRS regulations.

Arkansas Bankers Association | Professional Development Department 1220 West Third Street | Little Rock, Arkansas 72201 | (501) 376-3741 | www.arkbankers.org

Click here to order the Arkansas IRA Training & Reference Manual!!

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Patrice Konarik is president and founder of Sunwest Training Corp. located in the Texas Hill Country near San Antonio, Texas. With over 25 years experience in the financial industry, Patrice has focused her expertise on the retirement and new account areas and is currently providing training in 20 states. She has a BS in Management Science from New York’s Binghamton.

Patrice brings the information to life with her humorous training style, in-depth knowledge and an unlimited supply of “true life” examples. Patrice encourages interaction and questions during the training sessions.

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February 2017 | The Arkansas Banker

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MEMBER NEWS Anstaff Bank Gives $250,000 to Care Close To Home: The Campaign for Arkansas Children’s Northwest This corporate gift will provide care close to home for 200,000 children in the region Anstaff Bank, a locally owned and operated bank in Green Forest, is making a $250,000 commitment to support the construction of Arkansas Children’s Northwest.

“Anstaff Bank is thrilled to partner with Arkansas Children’s to transform health for the kids in our communities,” said Steve Stafford, Anstaff Bank’s Chairman and CEO. “Anstaff Bank has worked with individuals and businesses in Northwest Arkansas for 85 years to ensure their success and, today, we are proud to help bring a local children’s hospital to the region.”

When it opens in January 2018, Arkansas Children’s Northwest will be the region’s first and only comprehensive pediatric healthcare center and will include: 24 inpatient beds to care for children requiring overnight stays 24-hour pediatric Emergency Department Pediatric surgery unit with 5 operating rooms An outpatient clinic with 30 exam rooms supporting more than 20 sub-specialty areas and a general pediatric clinic A full range of ancillary and diagnostic services, child-life and pastoral care Outdoor gardens, nature trails, and interactive features designed for children

“We deeply appreciate Anstaff Bank’s commitment to championing children in Northwest Arkansas,” said Fred Scarborough, chief development officer for Arkansas Children’s.

“Generous support from corporate leaders like Anstaff Bank will allow more than 200,000 children to receive care close to home and give them the promise of a healthier tomorrow.”

In August 2016, Arkansas Children’s announced a public campaign to raise funds for Arkansas Children’s Northwest. To date, the campaign has celebrated publicly $57,250,000 million in pledges. Arkansas Children’s Northwest is being built on 37 acres of land donated by Robin and Gary George, Cathy and David Evans and their families—a gift valued at $7.5 million. The campus is centrally located on I-49 between Don Tyson Parkway and Highway 412, across from Arvest Ballpark. The project is expected to cost $427.7 million in construction, technology, equipment, and operating expenses over the next five years, and will create 250 new jobs.

Arkansas Children’s Northwest is being designed by Polk Stanley Wilcox Architects of Fayetteville and Little Rock, Ark., and FKP Architects of Houston, Texas. Nabholz Construction is overseeing construction. The campus is an integral part of Arkansas Children’s Hospital’s plan to transform the health of children in Arkansas by expanding access to pediatric services across the region.

A helipad and refueling station supporting Angel One, one of the nation’s leading pediatric intensive care transport services with more than 2,000 transports annually.

Simmons Bank Hosts Simmons Agri Summit 2017 Simmons Bank recently hosted its second annual Simmons Agri Summit. More than 250 farmers, producers and farm-related business owners gathered at the Pine Bluff Convention Center in Pine Bluff, Ark. to network and participate in sessions focused on the current economic landscape, the future of commodity pricing and scientific developments impacting the agriculture industry.

“Simmons has deep roots in the Delta. We understand the impact agriculture has on our local and regional economies, and we’ve been supporting farmers for more than 100 years,” said Freddie Black, Arkansas regional chairman for Simmons Bank.

“Our farmers have had some difficult growing seasons these past few years, so now more than ever, we want to be able to support them—not only with our financial expertise, but also by bringing in industry experts to help them best prepare for a successful year.”

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The Arkansas Banker | February 2017

The free conference included featured speakers Richard Brock, owner and president of Brock Associates; Jay Mahaffey, manager of Monsanto’s Scott Learning Center and Bryan Bomar, southern integration manager of Archer Daniels Midland Company. The program also included a financial panel. Agricultural financial consultant Wayne Beaty of 4B Company, CPA Mary Ellen Greenway of McQueen & Company Ltd and associates from Simmons Bank took questions from the crowd ranging from “How often should I have my equipment appraised?” to “Are there certain retirement plans farmers should be using?” and more.

“We hope farmers find our conference helpful, and judging from the returning faces from last year’s event, we take that as a good sign,” said Black. “Our associates are here for this important population not just today but every day. We always welcome a call and the chance to share financial counsel.”

MEMBER NEWS Fidelity National Bank Celebrates 50 Years Fidelity National Bank of West Memphis recently celebrated its 50th anniversary with an open house for all of its customers.

Founded in 1966, Fidelity has kept the same name for all these years, and even has a founding director, William Carlson, who has been with Fidelity for all of the 50 years.

To honor his service to the Bank, Mr. Carlson was presented a brass plaque that is now hung in the lobby. The Fidelity staff was dressed in red for their celebration, which 500 people attended.

Mr. William Carlson was presented with a brass plaque to honor his 50 years of service with Fidelity National Bank.

Simmons First National Corporation Announces Agreement To Acquire First Texas BHC, Inc. Simmons First National Corporation has announced that it has entered into a definitive agreement and plan of merger with First Texas BHC, Inc.. According to the terms of the agreement, Simmons will acquire all of the outstanding common stock of First Texas in a transaction valued at approximately $462 million (based on the Company’s common stock closing price as of January 20, 2017). First Texas is headquartered in Fort Worth, Texas, and is the parent company of Southwest Bank.

“We at First Texas are excited about the strategic partnership with Simmons,” said Vernon Bryant, First Texas’s Chairman and CEO. “Simmons is a top-notch, fast-growing regional bank.

With that comes additional products and services, as well as a larger balance sheet, that can only result in substantial benefits for our customers. Since First Texas began, our focus has always been on the customer, and I know that as part of the Simmons team we will continue that legacy.”

“We are thrilled to welcome the customers and associates of Southwest Bank to the Simmons family,” said George A. Makris, Jr., Simmons’ Chairman and CEO. “Late last year, Simmons announced its introduction into the Texas markets with our proposed acquisition of Bank SNB. We now have the opportunity to substantially grow our presence in the Fort Worth metropolitan area by joining with one of the best run, most respected financial organizations in Texas. Vernon Bryant and his leadership team are exemplary bankers who understand the industry and get the importance of excellent customer service. Their success, both for their customers and for their organization, makes me confident that we have teamed with another great banking partner. The Southwest Bank brand itself is very well known and respected, and represents a legacy of quality banking service. Because of that legacy, we will retain the Southwest Bank brand.”

Under the terms of the Agreement, First Texas’s shareholders and other equity rights holders will receive, in the aggregate, 6,500,000 shares of the Company’s common stock and $70 million in cash, all subject to certain conditions and potential adjustments. Completion of the transaction is expected during the third quarter of 2017 and is subject to certain closing conditions, including approval by the shareholders of both First Texas and the Company, as well as customary regulatory approvals. After closing, Southwest is expected to continue operations as a separate bank subsidiary of Simmons for an interim period until it is merged into Simmons Bank.

First Texas’s Financial Highlights (as of September 30, 2016): Assets: Loans: Deposits: Branches:

Stephens Inc. served as financial advisor to First Texas, and Fenimore, Kay, Harrison & Ford, LLP served as First Texas’s legal advisor. Mercer Capital Management, Inc. served as financial advisor to Simmons, and Covington & Burling LLP served as Simmons’ legal advisor.

$2.0 billion $1.8 billion $1.5 billion 16 February 2017 | The Arkansas Banker

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BANKER NEWS & MOVES FIRST NATIONAL BANK PROMOTIONS AND ADDITIONS Gene Crawford, President and CFO of the First National Bank of Crossett announced the promotion of Joyce Cummins to Assistant Vice President Credit Administration Officer and Christy Martin to Retail Lending Officer following the January board meeting.

“Joyce and Christy represent the tenacity and work ethic that has made this institution great, and we are very excited about their promotion and their continued contribution to the Bank. They represent a new generation of bankers at FNBC—strong customer service skills and efficient application of technology in a community bank,” said Crawford.

Joyce Cummins has been promoted to Assistant Vice President - Credit Administration Officer. Mrs. Cummins began her career with First National Bank in August 1991, when she and her family relocated to Arkansas. She was hired as a Mortgage Loan Processor in our Mortgage Loan Department. In January 1996, she obtained the position of Mortgage Loan Officer, until her family relocated to Atlanta, Georgia where she worked for NationsBank (Bank of America) in their Mortgage Loan Processing Center. In 1997 Joyce and her family returned to Crossett where she worked in the community in Accounting and Finance. In January 2014, Joyce Cummins was asked to rejoin First National Bank as a Mortgage Loan Processor in the Mortgage Loan Department. In September 2014 she was promoted to Credit Administrator.

Mrs. Cummins is a 1980 graduate of Mt. Pleasant High School and attended South Central

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Career College in Little Rock, where she studied Accounting.

Joyce has also completed several Arkansas Institute of Banking certifications, as well as FHA/HUD certifications.

She has been a part of various civic organizations including Beta Sigma Phi, Chamber of Commerce Committee for ACE (Arkansas Community of Excellence), board member of the Crossett Education Alliance, and is also a volunteer for many of the Bank’s community activities. She is a member of Crossett First Baptist Church.

Mrs. Cummins is married to Charlie Cummins and they have 2 daughters, Brittany and Casey and a granddaughter, Chloe.

Christy Martin has been promoted to Retail Lending Officer. Mrs. Martin began her career with First National Bank of Crossett in July 2015 as a Hamburg Assistant Branch Manager and was quickly promoted to Branch Manager in October 2015.

Christy, a Crossett native, is a graduate of Crossett High School. Mrs. Martin is a 2016 graduate of the Arkansas Bankers Association Consumer Lending School. Christy was the 2016 Employee of the Year at First National Bank. She is an active member of Grace Christian Fellowship in Crossett, AR. She currently serves on the board of the Hamburg Chamber of Commerce. Christy is very active in bank and community activities. Mrs. Martin and her husband, Brian, reside in Hamburg.

Johnathan Canley has also joined the bank as Retail Lending Officer.

Mr. Canley brings with him 10 years of experience in the financial services industry. Johnathan

The Arkansas Banker | February 2017

comes to First National Bank from Timberline Federal Credit Union where he served as Consumer Loan Officer.

Johnathan is a 2002 graduate of Crossett High School. He attended Cisco Junior College and the University of Arkansas at Monticello. He and his wife, Kelsey reside in Crossett with their son, Jade. Johnathan and Kelsey are expecting another baby boy in May, 2017.

Deborah “Dee Dee” Smith has joined First National Bank of Crossett as Assistant Vice President, Deposit Services Manager, according to an announcement from Gene Crawford, President and CEO. Crawford stated, “We are excited about Dee Dee joining our bank family. Our community will benefit from her banking experience and skills, which we feel will be a great asset to FNBC.” Dee Dee came to First National Bank from City Hall in Hamburg where she was Administrative Assistant to the Mayor and City Clerk/Treasurer. Her banking background includes working for First National Bank in Ashdown, Arkansas. She began her banking career as a teller/loan teller, then worked as the President’s secretary, and was then promoted to Operations Officer over four branches.

Smith has served on numerous committees including: Board of Trustees, Treasurer/Assistant Treasurer, Children’s Church Director, Board of Christian Education, and Prime Timer’s Coordinator, all for the First Church of God of Crossett. She has also assisted with two of Hamburg High School’s Project Graduation events, as well as many baseball and prom functions. She and her husband, Eric, reside in Crossett. They have a son, Hunter, and daughter-inlaw, Brianna who live in Crossett.

They also have a son, Lance, who lives in Monticello while attending college at UAM.

CARA LANK PROMOTED TO SR. VP AND CREDIT OFFICER AT STONE BANK Cara Lank has been promoted to senior vice president and credit officer at Stone Bank according to Nick Roach, president and chief lending officer. “Cara will provide invaluable leadership to the bank’s Risk Management team. We are fortunate to have someone with her extensive training and experience as a bank examiner.”

Lank, a native of Newport, has a BS in Public Administration from Harding University and completed the Graduate School of Banking at the University of Colorado.

She has served the Arkansas State Bank Department as a Certified Senior Bank Examiner and Financial Analyst and was a vice president and credit officer for First National Bankers Bank of Little Rock.

As part of her training as a bank examiner, Lank attended schools on Financial Institution Analysis, Loan Analysis, real estate lending, cash flow analysis and management skills.

FIRST NATIONAL BANK OF NORTH AR PROMOTES DOUG CARR Doug Carr, Executive Vice President and Chief Credit Officer, has been named President of First National Bank of North Arkansas (formally First National Bank of Berryville). Mr. Carr becomes the 9th President of the 128-year-old bank. His banking career began at the bank in 1983. He has attended the Arkansas Bankers Association Basic and Intermediate Lending

BANKER NEWS & MOVES Schools, the American Bankers Association National Commercial Lending School and the Southwest Graduate School of Banking at Southern Methodist University.

“Doug’s dedication to the bank and its customers has been a driving force in our continued success. Under his leadership the bank is well positioned to continue its 128-year run,” said Chief Executive Officer Bill Hudspeth.

FARMERS BANK & TRUST ANNOUNCES EXECUTIVE MANAGEMENT CHANGE The Farmers Bank & Trust Board of Directors are pleased to announce that, at its regularly scheduled meeting January 16, 2017, the Board of Directors voted to name Chris Gosnell President and Chief Executive Officer. Chris has been with Farmers Bank & Trust for over 6 years, and brought with him 6 years of banking experience from Northwest Arkansas when he joined the Bank in 2010. His new responsibilities as CEO are effective immediately. Chris previously served as President and Chief Banking Officer for the Bank.

Chris Gosnell received his Bachelor of Arts in Administrative Management from the University of Arkansas in 2003, as well as his Master of Science in Operations Management in 2005. He graduated from the Graduate School of Banking at Colorado and serves on the Arkansas Bankers Association Board of Directors. In addition, Gosnell was named in Arkansas Business’s 40 Under 40 list for 2015.

CITIZENS BANK PROMOTES KAREN SHAW AND PAMELA JONES Phil Baldwin, President and CEO of Citizens Bank is pleased to announce the promotion of Karen E. Shaw to the position of Executive Vice President and Chief Financial Officer.

“Karen is a thoughtful and dedicated leader with a deep understanding of banking and finance,” Mr. Baldwin said. “Karen has been instrumental in the bank’s statewide expansion and in Citizens Bank becoming the 14th largest bank in Arkansas.”

Karen Shaw is responsible for all aspects of financial management at Citizens Bank – overseeing the bank’s Investment Committee, Policy Committee, as well as its financial planning and budgeting processes.

Prior to joining Citizens Bank in 2003, Ms. Shaw spent eight years with the public accounting firm of Ernst & Young, managing a diverse range of clients including both public and nonpublic banking institutions. Ms. Shaw is a member of the Board of Directors of the American Red Cross serving Greater Arkansas where she also serves on the Arkansas Heroes Planning and Philanthropy Committees. She is an active member of the American Institute of Certified Public Accountants, the Arkansas State Society of CPAs, and the North Heights Church of Christ.

She is a previous board member, vice president, and treasurer of Big Brothers Big Sisters of North Central Arkansas and a board member of Big Brothers Big Sisters of Central Arkansas.

Ms. Shaw began her service to the organization as a “big sister” volunteering her time as a community mentor. Ms. Shaw and her husband, Edward Shaw, have two children, Kayla and Collin.

She is a Certified Public Accountant and a graduate of the University of Central Arkansas, where she earned a Bachelor’s of Business Administration Degree with Highest Honors in Accounting.

Phil Baldwin is also pleased to announce the promotion of Pamela J. Jones to the position of Executive Vice President and Senior Loan Operations Officer. Mr. Baldwin said, “Pam is a unique talent – a skilled manager and highly professional banker with strong technical abilities and a sincere interest in people.”

Pamela Jones is responsible for all aspects of Citizens Bank’s state-of-the-art loan operations center, serving the bank’s statewide banking system. She serves on the Citizens Bank Policy Committee, Information Technologies Steering Committee and manages the regulatory compliance functions.

Prior to joining Citizens Bank, Ms. Jones served as Senior Vice President and Senior Loan Operations Officer at Southern Bancorp, a $1.2 billion banking organization and the nation’s largest rural development bank.

She began her distinguished 28-year banking career at Community Bank of Mississippi.

In 2016, Ms. Jones was selected by the Arkansas State Chamber of Commerce to represent North Central Arkansas in the Leadership Arkansas Program. She is a member of the Board of Directors of the United Way of North Central Arkansas and has served in numerous leadership positions with the Business Women’s Professional Association, 4-H and Farm Bureau. She and her husband, Mike Jones, have four children: Amber, Grayson, Gretchen and Sean, as well as six grandchildren: Aidyn, Avery, Jacob, Mary Addison, Mackenzie and Spencer.

FORREST CITY FINANCIAL CORPORATION AND FORREST CITY BANK, N.A. ACQUIRED BY BIG CREEK BANCSHARES, INC. It has been announced that Big Creek Bancshares, Inc. acquired Forrest City Financial Corporation, the parent company of Forrest City Bank, N.A. (the “Bank”). The transaction became effective as of the close of business on December 31, 2016, and the Bank is now an indirect wholly-owned subsidiary of Big Creek Bancshares, Inc. In connection with the acquisition, the Office of the Comptroller of the Currency approved new owners, Mark Waldrip, to serve as Chairman and CEO of the Bank, and Nathan Waldrip, to serve as a Director of the Bank. Dwight Rutland will maintain his current position at the Bank as President and serve as a Director. Other directors for the bank include Brad Beavers, Steve Edwards, and Drew Higginbothom.

Subsequent to the acquisition, Big Creek will change the name of the Bank from “Forrest City Bank, N.A.” to “Armor Bank, N.A.” The Bank will officially rebrand to Armor Bank, N.A. in mid to late February.

Customers of the Bank should continue to conduct business as usual and can expect that no changes will be made to their banking accounts, checks, debit cards, and online banking services at this time. Deposits will continue to be insured up to the maximum allowed by law by the FDIC. If customers have questions, they should contact the Bank.

“We are very pleased to be a part of this community,” stated Mark Waldrip, Chairman of Big Creek Bancshares, Inc. “The future holds great potential for the Bank and East Arkansas. I look forward to working with the Board, the Officers and employees, and the community to make sure we take advantage of opportunities as they arise.

February 2017 | The Arkansas Banker

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BANKER NEWS & MOVES RELYANCE BANK PROMOTES EIGHT Chuck Morgan, President and CEO of Relyance Bank, N.A., is pleased to announce the following promotions: Carol Cook, Senior Vice President; Katherine Polczynski, Vice President; Dana Arledge, Assistant Vice President; Carrie Hall, Assistant Vice President; Karen Hall, Assistant Vice President; Alicia Nixon, Assistant Vice President; Jamie Jones, Audit Officer; and Michelle Ponder, Assistant Compliance Officer.

Carol Cook, promoted to Senior Vice President has been a career banker for nearly 30 years. Eleven of those years, she has been a part of the Relyance Bank family.

Mrs. Cook serves as Director of the Hot Springs Chamber of Commerce Board, Hot Springs Village Chamber of Commerce Ambassador and the Cedar Mountain Boys and Girls Club Advisory Board. She is also highly dedicated to volunteering to various local community organizations.

Katherine Polczynski, promoted to Vice President of Mortgage Lending in Hot Springs, graduated from Arkadelphia High School and attended Ouachita Baptist University. Her banking career started in 1996 and since then has completed Mortgage Lending School and Intermediate Real Estate Lending training. Mrs. Polczynski also devotes her time as a Hot Springs Chamber of Commerce Ambassador and serves as a member of the Hot Springs Board of Realtor Image Committee.

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Dana Arledge, promoted to Assistant Vice President serves as the Branch Manager of the Oak Park Branch in Pine Bluff, Arkansas. Mrs. Arledge, with 34 years of banking experience, has been a part of the Relyance Bank family for 16 years. During her tenure, she has completed several bank related courses. She is a member of the Humphrey United Methodist Church and a current member of the 2017 Pine Bluff Leadership Class.

Carrie Hall, promoted to Assistant Vice President of Loan Production, is a Rison High School graduate. With over 20 years of banking experience, Mrs. Hall has a strong background in the lending production and operation areas. During her tenure with Relyance Bank, she has completed several courses and extensive training in regards to loan platform and documentation management.

Her community service includes involvement in the Rison Lions Club where she has served as Secretary and Treasurer. She also volunteers in local youth sports programs and is active in her church, Hebron Methodist.

Karen Hall, promoted to Assistant Vice President of Operations, started her banking career over 12 years ago as a teller with Relyance Bank. Mrs. Hall, a Watson Chapel graduate, attended the Southeast Arkansas College in Pine Bluff. She is a volunteer with the Pine Bluff Festival Association, CASA Half Marathon, Neighbor-toNeighbor as well as other local organizations.

The Arkansas Banker | February 2017

Alicia Nixon, promoted to Assistant Vice President of Marketing and Business Development, is a Woodlawn High School graduate. Ms. Nixon attended Henderson State University and the American Bankers Association School of Bank Marketing and Management. She has 12 years of banking experience and currently serves on the Pine Bluff Area Community Foundation Board, Pine Bluff Festival Association Board, Pine Bluff Rotary Board and the Pine Bluff Positive Youth Development Board. A Leadership Pine Bluff graduate, Ms. Nixon is also a member of the Jefferson County Young Professionals and the Rison United Methodist Church.

Jamie Jones, a University of Arkansas at Pine Bluff graduate, has been with Relyance Bank since 2011 and promoted to Audit Officer. During her tenure with Relyance Bank, Mrs. Jones furthered her education by receiving a Certificate in Accounting, Master of Human Resource Management with Distinction and Master of Financial Management with a specialization in CPA, all with the Keller Graduate School of Management.

She is a current member of the Sigma Beta DeltaInternational Honor Society for Business, Management and Administration, the National Association of Professional Women and Jefferson County Young Professionals.

Michelle Ponder, promoted to Assistant Compliance Officer, is a White Hall

native. Ms. Ponder has been with Relyance Bank for 11 years. She is also a graduate of the American Bankers Association Bank Compliance School and received her Certified Community Bank Compliance Officer designation from the ICBA Compliance Institute. She is currently pursuing a Finance degree with the Southeast Arkansas College.

Ms. Ponder is an active volunteer at the White Hall School District and a member of the Jefferson County Young Professionals.

GENERATIONS BANK PROMOTES JESSICA ODOM IN VAN BUREN MARKET Jon Harrell, Chairman of Generations Bank, has announced that Jessica Odom has been promoted to the position of Branch Manager for Generations Bank in Van Buren. In this position, Odom oversees the administration and daily operation of the full-service branch, as well as the coordination of staff and resources.

Jessica Odom has most recently served as Customer Service Representative.

She has over twenty years of banking experience and has been an employee of Generations Bank since 2003.

“Jessica has been an important part of our market’s success for many years,” stated Terry Carson, Van Buren Market President.

“Her commitment to serve in a professional and personal manner has earned her great trust and respect among her customers. We are very proud of Jessica and her recent promotion.”

BANKER NEWS & MOVES

INDEX OF ADVERTISEMENTS ABA Annual Convention

SIMMONS BANK PROMOTES REGGIE ROSE TO VP 2

www.arkbankers.org/convention.aspx

GSB at LSU

17

ABA CRCM Boot Camp

19

2017 IRA Training and Reference Manual

21

www.gsblsu.org

Milestones In Banking 13, 27 www.arkbankers.org

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

The Arkansas

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

ARKANSAS BANK DEPARTMENT

Reggie Rose has been named vice president of community banking for Simmons Bank in Conway. Rose has been the general manager of Centennial Country Club at Conway since the club was established in 1998. In that role, he structured programs and implemented numerous capital improvements. Rose worked closely with club committees and property owner associations on various issues. He developed strong relationships with hundreds of people in the Conway area.

Rose, who graduated with a degree in business administration from the University of Arkansas, has been active in civic activities in Conway. He’s the current chairman of the Conway Advertising and Promotions Commission and the co-chairman of the Community Impact Committee for the United Way of Central Arkansas.

“Reggie’s long track record in this city should help us as we continue to build relationships with new and existing Simmons customers,” said Jason Culpepper, the bank’s north central Arkansas community president.

APPLICATIONS & APPROVALS

Branch Bank Application An application filed by Centennial Bank, Conway, Faulkner County Arkansas, to establish a branch banking facility at 26417 US Highway 91N, Clearwater, Pinellas County Florida, has been approved.

An application filed by Diamond Bank, Murfreesboro, Pike County, Arkansas, to establish a branch banking facility at 1710 South Constitution Avenue, Ashdown, Little River County, Arkansas, has been approved.

Merger Application An application to merge Bank of Commerce, Sarasota, Florida, with and into Centennial Bank, Conway, Arkansas, has been approved.

An application to merge Twin Lakes Community Bank, Flippin, Arkansas with and into Anstaff Bank, Green Forest, Arkansas, has been approved.

2017 Milestones in Banking Awards

The Arkansas Bankers Association is proud of the 20,000+ men and women who serve the Arkansas banking industry. We know that our dedicated employees are responsible for forging the relationships that make our hometown banks and communities successful. We would like to recognize those individuals who are celebrating their 40-year and 50-year anniversaries of service in our banks by honoring them with “Milestones in Banking” awards, sponsored by BKD. The honorees will receive their awards at a luncheon during the Annual Convention on Tuesday, April 11, and will be further recognized in a feature in The Arkansas Banker magazine.

at 40+ and 50+ years of service, as long as they have not previously been recognized for that milestone.

Nomination forms can be accessed online at www.arkbankers.org or by contacting Traci Logsdon at traci.logsdon@arkbankers.org or 501.978.3603. Nomination forms must be received by Friday, March 4, 2017.

Nominations are currently being sought for “Milestone Bankers.” All nominees should be actively employed in an Arkansas bank, and be eligible to receive specific milestone awards February 2017 | The Arkansas Banker

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It’s a pivotal year for Washington—and soon a new presidential administration, and a new Congress, will take office. These changes are an opportunity to ensure incoming lawmakers know the value of a strong banking industry.

Join us as we come together to tell Congress how America’s Banks deliver jobs and growth to communities across the country.

March 20 –22 | Washington, DC

OTHER EVENTS TAKING PLACE:

Mutual Community Bank Forum, March 19 – 20 Emerging Leaders Forum, March 20 Women’s Leadership Forum, March 19

Register today

aba.com/Summit 28

The Arkansas Banker | February 2017