Emerging Leaders Update

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. 25 Revealing Stats

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

MONDAY, MARCH 6 Commercial Construction Lending 1:30 p.m. - 3:30 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. 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. Keys To Understanding Personal & Global Cash Flow: Part III 1:00 p.m. - 2:30 p.m. Strategies on How To Measure & Reserve for Credit Risk 2:00 p.m. - 3:40 p.m.

WEDNESDAY, MARCH 8 Best-Ever Compliance Checklists for Commercial Loans 1:30 p.m. - 3:30 p.m. Vital Check and Deposit Issues 10:00 a.m. - 12:00 p.m.

THURSDAY, MARCH 9 Regulation E Final Changes on Prepaid Cards 1:30 p.m. - 3:30 p.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.

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. Dealing With Powers of Attorney 10:00 a.m. - 11:30 a.m. Fundamentals of Interest Rate Swaps and Caps: Part I 1:30 p.m. - 3:00 p.m. Commercial Real Estate Cash Flow/ Global Cash Flow: Part IV 8:30 a.m. - 10:00 a.m. How To Craft An Effective Commercial Loan Write-Up 10:00 a.m. - 11:30 a.m. Commercial RE Appraisals: Reviewing & Interpreting: Part IV 10:30 a.m. - 12:00 p.m. Keys To Understanding Personal & Global Cash Flow; Part IV 1:00 p.m. - 2:30 p.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.