The Arkansas Banker January 2017

Graduate Schools of Banking

Round Table

Professional Development Platforms

The Arkansas

Banker

The Education Issue:

Invest in Innovation

Volume CI, No. 1 | January 2017 January 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 | January 2017

The Arkansas

Banker Volume CI, No. 1 | January 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.

SUBSCRIPTION

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

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

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

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

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COLUMNS

Bill Holmes

6 Letter to the House of Representatives 8

Washington Update

9

Professional Development

DEPARTMENTS

President’s Column

Rob Nichols

24 Member News 26 Banker News & Moves 27 Index of Advertisements

THE EDUCATION ISSUE

12 Graduate Schools

of Banking 15 GSB Scholarships 16 Professional Development Platforms 18 Professional Development

Round Table 21 Professional Development

by the Numbers 22 2017 Conferences & Schools

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

January 2017 | The Arkansas Banker

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PRESIDENT’S COLUMN Welcome 2017, and What’s Ahead for Us? An unexpected election result in November changed the landscape and our expectations for banking policies. I thought I should try to set out some of our priorities for the new Congress and the Trump administration, and set the stage for what in theory could be a very productive year in Washington.

The potential for positive change is because the landscape our regulators and legislators now face has changed. We have a Republican House, Senate and White House, and that arguably increases the chances for pro-banking legislation making it to the President’s desk. What we will have to see is what part or parts of revised laws and regs our new President will sign. We think at this time he leans in our favor. Know this however, nothing of importance will be done without some bipartisan support. For any bill to be enacted, it still needs 60 votes in the Senate.

Our industry is starting 2017 with our advocacy efforts much more clearly defined and with a much friendlier atmosphere for banking. This includes on the regulatory side, where new leadership at the agencies will provide many

significant opportunities to improve banking conditions. The Trump administration will have the task of appointing new heads of the OCC (Comptroller Curry’s term expires in March 2017), FDIC (Chairman Gruenberg’s term expires in November 2017), Federal Reserve Board (Chairman Yellen’s term as chair expires in February 2018) and the CFPB (Director Richard Cordray’s term expires in July 2018). We are looking forward to the opportunity to work with new leadership at these and other key regulatory agencies.

AmBA’s Government Relations Council leadership and ABA’s Board of Directors considered this new landscape in mid-December when they deliberated our policy priorities for the coming year, which include mortgage lending regulatory relief, elimination of arbitrary asset thresholds, simpler capital rules, charter choice, compliance rules that genuinely help us help customers and more.

Bankers also discussed the value of advocating policy solutions that are outside banks’ bottomline interest but that help the economy grow and

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

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

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

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

JESSICA SAHENE

BRENDA SCARBROUGH

MARKETING COORDINATOR 501.978.3609 | jessica.sahene@arkbankers.org

HEATHER HAILE

COMMUNICATIONS INTERN 501.978.3603 | marketing@arkbankers.org

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PRESIDENT & CEO BILL HOLMES

The TheArkansas ArkansasBanker Banker || January January2017 2017

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

our customers and communities thrive’ such as student debt relief, urban housing solutions and a stronger Small Business Administration. These big-picture issues align with our lawmaker’s concerns and will reflect the role our bankers play as community leaders and economic stewards.

As a sign of how well our industry is united when the NCUA finally published its expansive new field-of-membership rule in December the AmBA responded by immediately filing a lawsuit to stop it. The AmBA lawsuit, combined with ICBA’s challenge of NCUA’s business lending rule, signals joint banker opposition to NCUA’s aggression. The AmBA will be filing an amicus brief in ICBA’s lawsuit, and ICBA has informed us that they will do the same in ours. This collaboration is important and signals a unified industry to our regulators and legislators.

One last thought before I close; as I mentioned earlier, a GOP sweep in Congress does not equate to Dodd-Frank’s repeal. Any legislation we seek to update and change will need bipartisan support. And it will have to compete with a crowded agenda of legislative priorities identified by Trump for the start of his administration, namely repealing Obamacare, reforming taxes and strengthening borders. In addition, any legislation will need to see action in the first nine months, before the 2018 election cycle starts influencing lawmaker positions.

ABA EXECUTIVE COMMITTEE

Everyone knows we have less than 6,000 banks, the fewest number of banks since 1890, and that means we cannot count on the other banks in our community or region to handle the work of advocacy for us. It is important, and necessary, that all of our bankers help tell our stories to our directors, customers, regulators and legislators.

And we have to start that communication now.

To ensure our priorities are on this congress’ radar, I urge every banker to plan to engage early and often with their lawmakers. We are fortunate to have a seasoned delegation that is supportive and aware of our issues. Please plan on attending the AmBA Government Relations Summit, March 20-22 in Washington. This absolutely needs to be our biggest Summit ever.

We typically have 1,000 bankers in attendance, making this the largest industry meeting in Washington. Given all that is at stake, and the potential banks have for achieving much-needed regulatory relief, we would like to see twice that number. So, if you’ve come before, come again and bring a colleague. And if you’ve not attended the Summit, make this the year you start. We need bankers to show up in person, in force and ready to score some wins.

For a more detailed list of our banking priorities, please see the copy of AmBA President Rob Nichol’s letter on pages 6 & 7 of this issue, sent to the leadership of the House of Representatives on January 4th.

“ ” “To ensure our priorities are on this congress’ radar, I urge every banker to plan to engage early and often with their lawmakers.”

SEAN WILLIAMS | CHAIRMAN First National Bank of Wynne, Wynne

DAVE DICKSON | CHAIRMAN-ELECT Union Bank & Trust Co., Monticello

Eagle Bank, Little Rock

JUDY LAWTON | TREASURER

ROBERT Y. TAYLOR | PAST CHAIRMAN

BILL HOLMES | PRESIDENT/CEO

The Citizens Bank, Rogers

Heartland Bank, Little Rock

ABA BOARD OF DIRECTORS

PAT ANDERSON | GROUP 5

DAVID DOWD | GROUP 1

CATHERINE OWEN | VICE CHAIRMAN

Arkansas Bankers Association, Little Rock

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 Citizens Bank, Batesville

TROY DUKE | GROUP 5 Gateway Bank, Rison

Bank of Delight, Delight

DARWIN HENDRIX | GROUP 4

RANDY SCOTT | GROUP 1 Farmers Bank & Trust Co., Blytheville

JIM CARGILL | GROUP 2

DON GIBSON | GROUP 3

J. MICHAEL JONES | GROUP 5

JIM TAYLOR | GROUP 3

Arvest Bank, Little Rock

Legacy National Bank, Springdale

Merchants & Farmers Bank, Dumas

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

Regions Bank, Little Rock

Bank of America, Little Rock

January 2017 | The Arkansas Banker

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Letter to the House of Representatives January 4, 2017 The Honorable Mitch McConnell Majority Leader United States Senate Washington, D.C. 20510

The Honorable Paul Ryan Speaker of the House United States House of Representatives Washington, D.C. 20515

The Honorable Chuck Schumer Minority Leader United States Senate Washington, D.C. 20510

The Honorable Nancy Pelosi Minority Leader United States House of Representatives Washington, D.C. 20515

Dear Leader McConnell, Speaker Ryan, Minority Leader Schumer and Minority Leader Pelosi: On behalf of the members of the American Bankers Association, I am writing to congratulate, welcome and offer our assistance to you and the members of the 115th Congress as you craft policy solutions that will help our nation’s economy and communities thrive.

Together, America’s community, midsize, regional and large banks comprise a $16 trillion industry that employs more than 2 million women and men whose work helps to create jobs and generate economic growth. Our fundamental mission—like yours—is to ensure the security and prosperity of the people and communities we serve. We fulfill that mission by safeguarding $12 trillion in deposits, extending $8 trillion in loans to families and businesses and providing financial services and innovations that deliver safety, convenience, and a vibrant marketplace.

Over the last decade, the banking industry has undergone a dramatic transformation. Since 2006, more than 1,500 banks have failed, been acquired or merged. During that same period, only four new bank charters have been granted. Today, for the first time since the 1890s, there are fewer than 6,000 banks serving our nation’s cities, towns and rural communities. While banks have continued to meet the needs of their clients, customers and communities, they have done so in the face of strong headwinds posed by increased prescriptive government regulation and competition from less-regulated financial players.

There are many factors beyond the Dodd-Frank Act that have caused the closure and consolidation of banks, but the sheer weight of more than 24,000 pages of proposed and final rules of this law has become a key consideration for many institutions in determining their future. That is why ABA is calling on the Administration, Congress and bank regulatory agencies to work in a bipartisan manner to pursue legislative changes that will keep financial institutions strong and capable of fulfilling their mission.

As the House Financial Services Committee and the Senate Banking Committee work together to produce such legislation, we encourage them and lawmakers on both sides of the aisle to incorporate the following priorities: Tailored regulation and arbitrary thresholds. Tailor regulation to correspond to a bank’s business model and risk, eliminate artificial and arbitrary regulatory asset thresholds, and pursue a more balanced supervisory process that eliminates drag on bankers’ ability to employ capital to support economic growth.

Mortgage rules. Reform mortgage regulations that have raised costs and prevented banks from flexibly serving their customers without enhancing consumer protections or safety and soundness. Most crucially, deeming loans held in portfolio as Qualified Mortgages will expand safe and responsible access to credit.

Housing finance reform. Constrain the role of the federal government—and potential taxpayer liability—in housing finance to a well-defined, explicit and fully priced guarantee of loans made by private lenders. Ensure equitable access to such programs by lenders of all sizes and from all communities.

Flood insurance. Help homeowners protect themselves by providing more incentives to participate in the National Flood Insurance Program and encouraging development of a strong private flood insurance market.

Level playing fields. Reduce economic distortions by providing more charter flexibility and capital options for thrift institutions, including mutual banks, and protecting S-Corp banks from arbitrary disadvantages due to the Basel III capital and other rules.

Small business growth. Fuel lending to job-creating businesses through both increased funding for key SBA loan programs and eliminate regulations that artificially dictate business lending decisions.

Tax reform. Reduce rates to drive growth while simplifying the complex tax code—plus eliminating poorly targeted subsidies to massive credit unions and Farm Credit lenders that no longer pursue their missions.

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The Arkansas Banker | January 2017

Student debt. Change the tax treatment of student debt repayments to help unburden those who have invested in their own potential.

Fintech and nonbank competitors. Facilitate partnerships of banks and technology firms, ensure customers are protected through consistent and effective oversight of all providers and encourage innovations by providing a regulatory “greenhouse” for testing new products before roll-out.

Data breaches. Ensure that all parties share accountability for protecting customer information and notifying the public after a breach, with the responsible party bearing the costs of their failure to protect customers.

Cybersecurity. Expand collaborative public-private efforts to fight cyber threats through information-sharing and self-reporting of cyber risks without fear of regulatory sanctions or reputation risk.

Rural growth. Pursue pro-growth policies to help farmers manage debt burdens and pricing challenges, fight deposit flight through encouraging access to longer-term stable funding sources, and address the shortage of qualified appraisers in rural areas that hinders real estate transactions.

Interchange. Restore market pricing on debit interchange fees so that consumers can once again enjoy more flexibility in the products and services that banks offer.

AML/BSA. Limit the burdens of Bank Secrecy Act compliance and reporting—especially new requirements that place undue burdens on customers—and eliminate potential sanctions for banking legal businesses.

Small-dollar credit. Preserve banks’ ability to serve customers with small-dollar loans and overdraft protection.

Sensible regulation. Oversee finance in a way that promotes growth and innovation, while avoiding arbitrary and capricious penalties and providing robust exam review and appeal channels. Update rules to reflect changes in technology. Restore balance to the regulatory process, including Consumer Financial Protection Bureau reform and a focus on promoting both economic growth and safety and soundness.

Several legislative proposals were introduced in the last Congress that address these priorities, and ABA was pleased to lend our support for these measures. We look forward to working with you to enact pro-growth banking policy solutions such as these so that, together, we can help America’s communities and economy thrive.

Sincerely,

Rob Nichols

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

HUNTER NORTON | GROUP 3 First Security Bank, Fayetteville

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

BLAKE JOHNSON | GROUP 1 Evolve Bank, Jonesboro

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

JOHN BOLLINGER | GROUP 3 Simmons Bank, Fayetteville

MATT LAFORCE | GROUP 2 First Security Bank, Searcy

RACHEL SCHWARTZ | GROUP 4 Farmers Bank & Trust, Texarkana

BRANDON GENTRY | GROUP 1 Cross County Bank, Wynne

JAMES LYLE | GROUP 5 McGehee Bank, McGehee

SANDY STARNES | GROUP 2 The Citizens Bank, Batesville

ROBERT HARGIS | GROUP 5 The Citizens Bank, Monticello

RYAN MOORE | GROUP 1 Centennial Bank, Jonesboro

HUNTER WINDLE | GROUP 4 The Malvern National Bank, Malvern

WHAT IS THE EMERGING LEADERS SECTION? The Emerging Leaders Section (ELS) was organized by the Arkansas Bankers Association Board of Directors to provide information concerning educational opportunities available for its members. The ELS was established to provide leadership training for young bankers, to enhance banking careers, offer its members the opportunity to learn, network, and be productive members of the banking profession.

The Arkansas | January 2017 January 2017 Banker | The Arkansas Banker

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WASHINGTON UPDATE A Winning Game Plan for 2017 The agenda in Washington will be very crowded, and we’ll need to work together to make sure our policy priorities get—and stay—on Congress’ radar. It helps that our priorities are geared toward helping our customers, clients and communities thrive, a goal that clearly aligns with lawmaker concerns.

In fact, when ABA’s Government Relations Council leadership and Board of Directors met in December, the bankers discussed the value of advocating not just much-needed changes like mortgage lending regulatory relief and simpler capital rules, but also policy solutions that are less parochial in nature and help the economy grow. These include ways to help those with heavy student debt, urban housing solutions and a stronger Small Business Administration. The council and board members agreed that it made sense to embrace such big-picture issues given the role bankers play as community leaders and economic stewards.

It’s even more important that the policy positions we advocate are positive and forward-looking, and tell the story of what banks are for, not what we are against. We are for economic growth. We are for job creation. We are for prosperity for our communities. Such optimism drives our industry,

and it’s what should drive our advocacy, too. It’s far more compelling than an anti-this, anti-that platform.

So how can we best take advantage of the more favorable legislative and regulatory climate to ensure our “Blueprint for Growth,” as we are referring to our policy priorities, is advanced?

The single most important way is for you and bankers like you to actively engage at the grassroots level. That means working closely with your state bankers association to ensure your state’s lawmakers—whether they are newly elected freshmen or seasoned politicos—are hearing from you and your colleagues early and often.

It also means showing up in force at this year’s ABA Government Relations Summit, March 20-22 in Washington. This event is the largest industry meeting in our nation’s capital, with around 1,000 bankers with a range of titles and responsibilities attending each year. Given all that is at stake this year, I hope we will double that number. This simply must be our largest and best attended Summit ever. To that end, if you’ve attended the Summit before, please come again and bring a colleague. And if you’ve never attended the Summit before, make this your year

ROB NICHOLS

President & CEO American Bankers Association

to start. (Find out more at aba.com/Summit.)

The 2016 election was a game-changer in many ways, but there’s one thing that remains the same: it will take the help of bankers from the C-suite to the tellers on the front lines to move the ball down the field and score meaningful legislative victories.

© 2017 American Bankers Association. All rights reserved. Reprinted with permission.

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

HUNTER NORTON | GROUP 3 First Security Bank, Fayetteville

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

BLAKE JOHNSON | GROUP 1 Evolve Bank, Jonesboro

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

JOHN BOLLINGER | GROUP 3 Simmons Bank, Fayetteville

MATT LAFORCE | GROUP 2 First Security Bank, Searcy

RACHEL SCHWARTZ | GROUP 4 Farmers Bank & Trust, Texarkana

BRANDON GENTRY | GROUP 1 Cross County Bank, Wynne

JAMES LYLE | GROUP 5 McGehee Bank, McGehee

SANDY STARNES | GROUP 2 The Citizens Bank, Batesville

ROBERT HARGIS | GROUP 5 The Citizens Bank, Monticello

RYAN MOORE | GROUP 1 Centennial Bank, Jonesboro

HUNTER WINDLE | GROUP 4 The Malvern National Bank, Malvern

WHAT IS THE EMERGING LEADERS SECTION? The Emerging Leaders Section (ELS) was organized by the Arkansas Bankers Association Board of Directors to provide information concerning educational opportunities available for its members. The ELS was established to provide leadership training for young bankers, to enhance banking careers, offer its members the opportunity to learn, network, and be productive members of the banking profession.

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The Arkansas Banker | January 2017 2017

ABA Live Events ABA Professional Development

Live Events...

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

FEBRUARY 2017 7

| IRA Advanced Update & Review

15

| Call Report Preparation Update

6 | Best Practices for Real Estate & Commercial Lending

9

| Basic Personal & Business Tax Return Analysis

8 | Key Ratio Analysis: Calculating the Numbers Correctly

28

| Introduction to Commercial Lending

| Bank Directors Workshop II

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

MARCH 2017

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

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

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

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

APRIL 2017 4

| Loan Assistants & Processors Workshop

19

5

| Asset Based Lending

24 | 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

10-12 | 127th Annual Convention

Robinson Center, Little Rock Who Should Attend: CEOs, Presidents, Chairmen, Board of Directors, Senior Executives and Management

17-18 | Training the Credit Analyst

Arkansas Bankers Association, Little Rock Who Should Attend: Credit Analysts & Administrators, Lenders & Loan Review Officers, Branch Managers & Management Trainees

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

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

26 | Supervisor Boot Camp

Arkansas Bankers Association, Little Rock

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

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

January 2017 | The Arkansas Banker

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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, FEBRUARY 1

WEDNESDAY, FEBRUARY 8

THURSDAY, FEBRUARY 16

Accounting Basics / Refresher for Bankers 10:00 a.m. - 11:30 a.m.

FFIEC Information Security Handbook Review 10:00 a.m. - 12:00 p.m.

Excel Explained: Dealing With Duplicate Data 1:30 p.m. - 3:30 p.m.

THURSDAY, FEBRUARY 2

The Future of Small Town Banking: 3 Steps To Renewed Success 10:00 a.m. - 11:30 a.m.

Onboarding Your New Hire 1:30 p.m. - 3:30 p.m.

Escrow Rules: 2017 Review and Update 10:00 a.m. - 12:00 p.m.

Using Personal Tax Returns for Global Cashflow 1:30 p.m. - 3:30 p.m.

THURSDAY, FEBRUARY 9 FRIDAY, FEBRUARY 3 Basic Cash Flow Analysis 10:00 a.m. - 12:00 p.m.

MONDAY, FEBRUARY 6 Open-Ended Lines Of Credit Compliance Issues 1:30 p.m. - 3:30 p.m.

TUESDAY, FEBRUARY 7 Leading the Prospecting Effort 10:00 a.m. - 11:00 a.m.

Compliance Rules for Commercial Loans Secured By Real Estate 1:30 p.m. - 3:30 p.m.

What Is Covered By D&O Insurance What Is Not? 10:00 a.m. - 12:00 p.m.

Strategies for Family Banks 10:00 a.m. - 11:00 a.m.

Loan Underwriting Mistakes 9:30 a.m. - 11:00 a.m.

TUESDAY, FEBRUARY 21 Accounts Receivable and Inventory Financing 1:30 p.m. - 3:30 p.m.

WEDNESDAY, FEBRUARY 22 New BSA Officer Training 10:00 a.m. - 12:00 p.m.

THURSDAY, FEBRUARY 23 Business Account Mapping: New CDD Rules 10:00 a.m. - 12:00 p.m.

THURSDAY, FEBRUARY 23 Compliance Perspectives: A Monthly Update 1:00 p.m. - 2:00 p.m.

TUESDAY, FEBRUARY 14

Basic Estate Planning and Estate Settlement 10:00 a.m. - 11:30 a.m.

It’s Time for a TRID Check Up 1:30 p.m. - 3:30 p.m.

Trump Administration: New Employment Compliance Priorities 1:30 p.m. - 3:30 p.m.

WEDNESDAY, FEBRUARY 15

FRIDAY, FEBRUARY 24 Ransomware and Cyber Extortion 10:00 a.m. - 12:00 p.m.

Federal Benefit Payments Garnishment Requirements 10:00 a.m. - 12:00 p.m.

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

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The Arkansas Banker | January 2017

AmBA Training ABA Professional Development

AmBA Training...

Provides valuable curriculum in a virtual classroom setting, with the leadership of industry professionals. All assignments and exams are completed online.

Analyzing Financial Statements 1/3/17 - 3/17/17

Supervisor Certificate 2/6/17 - 5/26/17

Bank Lines of Business 1/3/17 - 1/27/17

The Banking Industry 2/6/17 - 3/3/17

General Accounting 1/3/17 - 4/21/17

Bank Lines of Business 2/13/17 - 3/10/17

Marketing Financial Services 1/3/17 - 4/21/17

Building Customer Relationships 2/13/17 - 3/10/17

Building Customer Relationships 1/9/17 - 2/3/17

Consumer Lending 2/21/17 - 6/9/17

The Banking Industry 1/17/17 - 2/10/17

The Mortgage Lending Business 2/21/17 - 3/31/17

Analyzing Bank Performance 1/30/17 - 3/17/17 Law and Banking: Principles 1/30/17 - 5/19/17 Managing Funding, Liquidity, and Capital 1/30/17 - 3/10/17 Commercial Lending 2/6/17 - 4/28/17 CTFA Online Review Couse 2/6/17 - 4/28/17 Money and Banking 2/6/17- 5/26/17

Introduction to Agricultural Lending 2/27/17 - 4/21/17

Managing the Bank’s Investment Portfolio 3/27/17 - 4/28/17 Analyzing Financial Statements 4/3/17 - 7/21/17 Building Customer Relationships 4/3/17- 4/28/17 Fundamentals of Mortgage Lending 4/3/17 - 5/12/17 Managing Interest Rate Risk 4/3/17- 5/26/17 Consumer Lending 4/10/17 - 7/28/17 CRCM Online Review Course 4/10/17- 6/16/17

Introduction to Trust Products & Services 2/27/17- 3/31/17

General Accounting 4/10/17 - 7/28/17

IRA Online Institute 2/27/17- 5/19/17

Bank Lines of Business 4/17/17 - 5/12/17

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

Basic Administrative Duties of a Trustee 4/17/17 - 5/19/17

Building Customer Relationships 3/13/17 - 4/7/17

The Banking Industry 4/17/17 - 5/12/17

The Banking Industry 3/20/17 - 4/14/17

For more information about AmBA Training, log on to www.arkbankers.org or call 501.376.3741

January 2017 | The Arkansas Banker

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Graduate Schools of Banking The ABA, and other state bankers associations, have teamed up with universities across the country to sponsor Graduate School of Banking programs. These programs provide career bankers with the skills needed to succeed in the ever-changing world of banking. The following regional and national banking schools provide an opportunity for advanced study and research in bank management, economics, and monetary issues.

Graduate School of Banking at Colorado Location: Boulder, Colorado Website: www.gsbcolorado.org Contact: Josie Bunch, Director of Marketing

Graduate School of Banking at Colorado Josie@GSBColorado.org 800.272.5138

Today’s banking environment requires community banks to prepare their future leaders now in order to move successfully into the future. The Graduate School of Banking at Colorado is America’s Premier Community Banking School, which offers educational programs aimed at preparing the next generation of community bank leaders for success. Since 1950, banks have trusted in GSBC’s 25-month Annual School Session to develop their leaders. GSBC is pleased to build upon this legacy by offering the one-of-a-kind Executive Development Institute, an advanced 19-month program which combines hands-on leadership coaching and mentoring with sophisticated bank management strategies, to prepare internal candidates for future roles in executive management. GSBC is also proud to partner with the Arkansas Bankers Association annually to offer the Future Leaders Scholarship to candidates of the Annual School Session. For more information, visit www.GSBColorado.org.

What’s New? The 67th Annual School Session will showcase a newly expanded technology curriculum, including an enhanced career track on General Management & Technology.

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The Arkansas Banker | January 2017

Why Attend GSBC?

Focus on Community Banking Current & Relevant Curriculum Direct Takeaways to Enhance Bank Performance Leadership Development Networking Opportunities Expert Faculty Scenic Boulder, Colorado location

Graduate School of Banking at the University of Wisconsin-Madison Location: Madison, Wisconsin Website: www.gsb.org Contact: Kathleen Kienitz

Asst. Vice President, Marketing and Banker Relations kkienitz@gsb.org

800-755-6440

Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison has been educating professionals and creating leaders in the banking industry. GSB offers one of the nation’s most robust and respected graduate banking schools-more than 20,000 GSB alumni hold key leadership positions in their banks and communities. GSB also holds popular week-long specialty schools for human resources, technology management, IT security, and financial management, plus more than 100 online seminars on a variety of bank management topics.

What’s New? Upon completion of GSB’s rigorous 25-month curriculum graduates receive a diploma from the Graduate School of Banking as well as a Certificate of Executive Leadership from the Wisconsin School of Business. This is the most prestigious certificate offered by one of the nation’s top business schools-a $12,000 investment if pursued independently through UW, it is conferred on new GSB grads at no additional tuition as recognition of GSB’s exceptional leadership curriculum!

Why Attend GSB-Madison?

Curriculum: GSB’s in-depth courses and learning environment is designed to help you understand and address complex challenges in the financial services.

Faculty: GSB instructors are widely recognized experts and teachers.

Many are bankers, former bankers, economists, and industry consultants who bring real-world business savvy and practical, illustrative examples to the classroom.

Active Learning: GSB students are actively involved in the learning process through bank simulations, computer labs, intersession projects, case studies, and unparalleled networking with peers.

Staff: GSB staff have decades of experience in financial services and professional education. You’ll be working with professionals who understand the needs of adult learners and who are committed to ensuring an exceptional learning experience for every student.

Campus: Our affiliation with the University of Wisconsin-Madison, home to one of the top 15 business schools in the country, gives students access to world-class facilities and a vibrant campus community.

Scholarships: More than $225,000 in annual scholarships are available through the Hebert V. Prochnow Educational Foundation.

Student Diversity: GSB students come from around the world, from banks large and small, and with a wide variety of backgrounds and experience. What GSB students share is a passion for excellence and a desire to improve their banks and their careers through world-class education.

Graduate School of Banking at LSU Location: Baton Rouge, Louisiana Website: www.gsblsu.org Contact: Don L. Woodland

Executive Vice President donw@gsblsu.org 255.766.8595 Completion of the GSB program at LSU has become a standard prerequisite to professional advancement in many banks. Bank officers at multi-billion dollar institutions, as well as small community bankers, find that the curriculum addresses their educational needs.

The 2017 program dates are May 22 – June 3, 2017.

Why Attend GSBLSU? The course of study spans 25 months, with three two-week resident sessions. During these resident sessions, bankers/students receive more than 200 hours of classroom instruction. Organized evening study, written examinations and bank study projects between resident sessions are an integral part of the school’s comprehensive program.

January 2017 | The Arkansas Banker

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The SW Graduate School of Banking at Southern Methodist University Location: Dallas, Texas Website: www.swgsb.org Contact: David Davis

Associate Director SWGSB Foundation ddavis@mail.cox.smu.edu 214-768-2990 The SW Graduate School of Banking at Southern Methodist University delivers a dynamic, interactive experience that builds professional alliances. From the moment you arrive on campus, you are a full participant in the entire educational process. You are challenged to take an active role in your education, learning from instructors and sharing your knowledge and experiences with your peers. The result is a dynamic, graduate-level program that creates leaders and achievers. Participants call it the “SWGSB Experience.”

SWGSB is unique from its small class sizes and proprietary online bank simulation program, BankCEO, to its one-of-a-kind Living Case Study. SWGSB is leadership education at the corporate level.

What’s New? A curriculum tailored to areas of specialization through a variety of electives Educational approaches created by leaders for leaders Faculty exclusive to SWGSB Small classes with exceptional faculty, peer, and student interaction Leadership and team-building exercises that offer unsurpassed career enhancement

Merit-based scholarships providing superior return on investment Unrivaled SWGSB-SMU MBA options for further study and career advancement

Why Attend SWGSB? At SWGSB, we provide an atmosphere that fosters friendships and strategic networks. From essential core elements to the latest management strategies, SWGSB is a true collaborative style of learning. Empowering you to gain complete mastery of leadership, this sure-fire approach is transformative, hands-on executive education. And only SWGSB delivers it. Classes are held at the renowned SMU Cox School of Business, which Bloomberg Businessweek ranks among America’s finest.

ABA Stonier Graduate School of Banking Location: Philadelphia, Pennsylvania Website: www.abastonier.com Contact: Perette Bonner

Stonier Program Director 202-663-5411

Did you know Stonier is the nation’s original graduate banking school? Now celebrating over 80 years of excellence in banking education, Stonier continues to lead the way with a reputation as the industry’s preeminent graduate school. The faculty of the school includes many of the most important thinkers, practitioners, and experts in the financial services industry as well as celebrated professors from the Wharton School who teach Stonier’s critical leadership modules. Students are exposed to highly-interactive classroom settings, team interaction and a range of formal and informal forums to discuss and debate issues and solutions.

What’s New? The Stonier curriculum evolves each year to ensure the program is highly relevant to our industry’s constantly evolving market.

The 2017 program includes more emphasis on enterprise risk management, plus new electives to help students create an individualized course of study consistent with their professional goals.

Why Attend Stonier GSB? Stonier is the only graduate banking school to partner with an Ivy League university, and Stonier graduates earn both the Stonier Diploma and the Wharton Leadership Certificate. Stonier offers an

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The Arkansas Banker | January 2017

intensive one week program held in June over three years, compared to other programs that are 2 weeks in length. This family-friendly model means less time out of the office and away from home. The Stonier experience includes staying in hotels within easy reach of campus-no dorm rooms, plus the student body from across the nation and over 15 countries has a rich diversity across gender, job title and nature of institution.

Get a Head Start with a GSB Scholarship Below is a list of GSB scholarships available for the 2017 session. For more information and application instructions, log on to our website, www.arkbankers.org.

GSBC Future Leaders Scholarship

Graduate School of Banking at Colorado - Boulder, Colorado 2017 Session to be held July 16 - 28 Deadline: March 1, 2017 Amount: $1,360 per year, for up to three consecutive years Eligibility: Must be a first year student

Prochnow Educational Foundation Human Resource Management School Scholarship

Graduate School of Banking at Wisconsin - Madison, Wisconsin 2017 Session to be held March 26 - March 31 Deadline: January 31, 2017 Amount: $925

American Bankers Association & Arkansas Bankers Association Scholarship

Stonier Graduate School of Banking, University of Pennsylvania - Philadelphia, PA 2017 Session to be held June 1- 8 Deadline: February 28, 2017 Amount: $1,318 (member) per year, for up to three consecutive years or $1,648 (non-member) per year,

for up to three consecutive years Eligibility: Must be a first year student

Graduate School of Banking at Louisiana State University Scholarship

Graduate School of Banking at LSU - Baton Rouge, LA 2017 Session to be held May 21 - June 2 Deadline: March 31, 2017 Amount: $3,995, first year only Eligibility: Must be a first year student

Prochnow Educational Foundation & Arkansas Bankers Association Scholarship

Graduate School of Banking at Wisconsin - Madison, Wisconsin 2017 Session to be held July 30 - August 11 Deadline: April 17, 2017 Amount: $1,300 per year for three years Eligibility: Must be a first year student

vailable!** A 2 * *

SWGSB Millennium Scholarship

SW Graduate School of Banking Foundation, Southern Methodist University - Dallas, TX 2017 Session to be held May 29 - June 8 Deadline: April 1, 2017 Amount: $1,500 per year, for up to three consecutive years Eligibility: Must be a first year student

January 2017 | The Arkansas Banker

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Professional Development Platforms The Arkansas Bankers Association is dedicated to contributing to the professional development growth and needs of Arkansas bankers and their careers. We are proud to offer a variety of educational programs in several learning formats for our members, and aim to make training as convenient, timely, and cost effective as possible. Banks can make no greater investment than in the continuing education of their employees. We encourage you to explore all the training options available to you.

What to Expect at an ABA Live Event ABA Live Events offer face-to-face interaction with an expert instructor, giving attendees the chance to ask questions and share ideas. ABA offers a variety of educational programs throughout the year, including seminars, schools, and conferences. We are committed to offering relevant and timely topics so that our members can have the most current information to implement in their institutions.

When attending an ABA Live Event, you can expect: Relaxed environment. Don’t be intimidated! ABA Live Events are structured to make sure that you feel comfortable asking questions, meeting peers, and gaining professional skills.

Group interaction. While class sizes vary, most Live Events give opportunities to share among smaller groups.

View Page 9 for a list of upcoming ABA Live Events!

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The Arkansas Banker | January 2017

Veteran banker Jill Castilla shared her personal story of climbing from the bottom to the top during the ABA Women in Banking Conference in November 2016.

Training Online with ABA Webinars

We live in a digital age, so why not engage in online learning opportunities? Webinars are a cost-effective professional development option that allows you to receive top-notch training without travel time and expense. With nearly 500 webinars to choose from throughout the year, you are sure to find a topic to meet your training needs. The ABA works with third-party webinar providers to ensure that the most timely topics are being addressed by experts from across the country.

This delivery format combines two methods of communication: your phone and your computer. You may have an unlimited amount of listeners on one connection via speakerphone. The online presentation can be viewed on your office or home computer, or on your computer connected to an A/V projector in a conference room setting for multiple participants. Webinars are interactive—not just recorded instruction videos—so you can ask the educator questions to customize the experience.

When attending an ABA Webinar, you can expect: Presentation materials to help you follow along and implement ideas in your bank.

A recording of the webinar for future reference.

A lot of great information... So be ready to take notes!

View Page 10 for a list of upcoming ABA Webinars!

Advancing Skills Through AmBA Training

AmBA Training is a comprehensive source for training and education available through the American Bankers Association (AmBA), previously through the American Institute of Banking (AIB). All AmBA courses, certificates, diplomas and more are brought to you through the Arkansas Bankers Association, your Local AmBA Training Provider. Many courses meet the requirements of the Institute of Certified Bankers (ICB) for exams or continuing education credits.

AmBA Training includes extensive learning opportunities suited to specific job roles, in both facilitated and self-paced online formats, as well as in person. Flexible and cost-effective, AmBA’s online training opportunities are continually updated to provide a superior learning experience that can be accessed from anywhere, at any time.

Benefits of Online Training: Convenient Cost-Effective Create your custom learning path Certificates available For more information regarding AmBA Training programs, please contact Kami Taylor Coleman at kami.coleman@arkbankers.org.

View Page 11 for a list of upcoming AmBA Training Courses!

AmBA Training Options Facilitated Online Training Courses

Self-Paced Online Training Courses

Diplomas & Certificates

Textbooks & Reference Materials

These courses are available in a virtual classroom environment, complete with fellow students, instructor guidance and feedback.

For more than 100 years, bankers have taken advantage of AmBA diploma and certificate programs. The programs are continually reevaluated and refined to reflect the current needs of bankers in their jobs today and changes in the industry.

These courses offer the greatest flexibility in skill-building and practical application as they are independent study and include real-life practice scenarios.

AmBA has developed textbooks, workbooks & reference materials to support the AmBA training curriculum. These tools for self study and in-bank training support the curriculum and cover a variety of subjects in banking and financial services.

January 2017 | The Arkansas Banker

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Professional Development Round Table: Three Arkansas Bankers Share Their Perspectives

Connie Allmond

Senior VP/Human Resources Officer Farmers & Merchants Bank Stuttgart, Arkansas

Scott Hancock Division President Centennial Bank Fayetteville, Arkansas

What is the importance of professional development for your employees?

CA Farmers and Merchants Bank wants our employees to succeed in their roles. If our employees feel prepared this contributes to selfesteem and prepares them for the next position within the bank.

SH

While experience still provides the best development for employees of any organization at any levels, external training remains a vital ingredient to the overall picture of success during an employee’s tenure.

DW

With all the changes that have taken place in banking over the last 20 years, and the potential changes on the horizon, it’s more

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The Arkansas Banker | January 2017

Dana Worstell Corporate Trainer Southern Bancorp West Helena, Arkansas

important than ever for our staff to keep growing and learning.

Because of Southern Bancorp’s unique structure and mission, we have an equally unique staff make-up, which makes ongoing professional development a top priority.

What is the benefit of professional development for your bank as a whole?

CA The bank can provide better customer service, productivity, and employee retention.

SH Technological advances provide great resources for both the bank and the customer; however, they can also provide barriers.

A quote that I use within the bank…”we don’t if it doesn’t work until it doesn’t work.” Professional development and the ability to communicate to a customer and explain not only the issue at hand but also offer solutions are most beneficial to the bank. We live in such a competitive environment, so we must have all employees in a mindset to take care of the customers. A balance of technical and communication skills is critical.

DW We know that in order to grow and thrive, our staff must commit themselves to learning and understanding the latest regulations, best practices, fintech services and marketing trends.

This growth resides in a strong professional development program.

What role does upper-management play in professional development?

CA The professional development is handled through our HR

Department and we have a good understanding of the knowledge needed for our employees to remain successful.

SH Upper-management plays a vital role. New employees looking for guidance are in tune to management’s actions. Again, experience can never be minimized and managers can relate to previous situations that will fulfill a great deal of training hours. Mistakes will be made, but our goal needs to determine a way not to repeat them.

DW Southern Bancorp’s upper management has committed to professional development like never before. Not only do they encourage our training staff to find the latest learning opportunities available, but they have even devised a leadership training course called “Southern Institute,” which takes small groups of aspiring leaders and provides professional development training to help them learn more about our unique mission and how they can play a role in Southern’s future growth. Our management team is working toward a multi-year goal of having all Southern employees participate in the Southern Institute.

Online vs. in person-what is your preferred method of professional development?

CA Many times due to employees needing to be available to

assist customers, we utilize the online webinars through Arkansas Bankers Association. Managers find this more convenient to only be away for a couple of hours.

Depending on the topic being covered, we also encourage the training in person. Arkansas Bankers Association is able to bring in experts in many areas of banking that have proven to be very beneficial to our attendees.

SH

Most definitely, in person, if possible and feasible. Logistically and economically, online provides a great benefit; however, the interaction with others is significant in the success of the training.

If the training is technical in nature, online can work, but the greater the subjective nature of the material, the greater the need for in person training. Right or wrong, we also must admit that online courses do not get 100% attention-we all have too many distractions!

DW

I prefer a mix that is dependent on both the topic and needs of my audience. Some topics will be better discussed in a group setting and other issues might be covered better with a self-paced online course. The key for me is to offer plenty of options.

How does your bank determine the value and results of professional development?

CA We highly value the results due to the banking industry

requirements of meeting so many regulatory and legal requirements.

SH This is most difficult. Development takes time, so the results are the culmination of “classes” coupled with “experiences.” No specific seminar, speech, or product in-service is going to provide all of the answers in isolation. As we look to promote from within the bank, the value of the combined professional development pieces is recognized and rewarded.

DW We can certainly see the effectiveness as individuals grow within the company. Another way that helps us measure staff development is our Core Values system. Southern employees are rewarded by managers and coworkers for exhibiting the Core Values with cash prizes and opportunities for large grand prizes such as a vacation. The Core Values are a direct reflection of the effect professional development has on staff as they range from customer interactions to sustainability measures.

Seasoned veterans vs. newbies-who benefits more from professional development opportunities?

CA The seasoned veteran must stay on top of the fast-paced,

ever changing banking world to be able to lead their departments effectively. Arkansas Bankers Association provides different levels of training that works very well for our organization. Most recent was the IRA training offered for the Beginner and the Seasoned employee.

SH

Simple! Both, just at different levels. Regardless of age or tenure in the career path, the professional development opportunities must be relevant. Veterans will see through the “fluff” quicker, but both groups will be cautious about future opportunities if their experiences are less than adequate. Again, let’s not repeat the same mistake.

DW It’s a tie. While newbies certainly have a lot to cover and learn, the veterans have to keep up with changing regulations and trends in order to be on top of their game. Professional development is a part of our culture, not a one-time thing.

When & where-at what point in a person’s career should they focus on professional development opportunities?

CA Love the job you’re in? Love what you do before trying what you love!

SH Before their career actually starts. Search engines can provide a lot of facts, but they cannot “develop” someone. In banking, we cannot forget we are dealing with one of the highest priority items of everyone. Whether working with someone on opening an account or obtaining a loan, small or large, the ability to “sell” the bank is vital.

It is not easy, but it is rewarding and takes effort and time to learn.

DW I don’t think there’s one point at which they should focus on professional development. As I said earlier, it should be part of the culture. It should be something that employees are constantly pursuing throughout their careers in order to grow. Of course, what that professional development is will depend on the individual needs of a staff member, so from that perspective, it’s more of a case by case approach.

January 2017 | The Arkansas Banker

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guided by principles

First. Best. Next.

Thinking Success?

Think Stonier.

ABA Stonier Graduate School of Banking University of Pennsylvania | June 1-8, 2017 Apply today - abastonier.com 1-800-BANKERS

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The Arkansas Banker | January 2017

2016 Professional Development by the Numbers

534

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Webinars

Seminars Most-attended Seminars:

FDIC Banker Outreach TRID Essentials

Most-attended Webinar:

8

Ransomware Nightmare Spurs Guidance

Conferences

CECL Workshop

April 14, 2016

Most-attended Conferences:

Leadership Conference

128

Women in Banking Conference Agricultural Lending Conference

Speakers

Top 3 Returning Speakers:

131 Graduates from 5 ABA Schools

John Cochran

Patrice Konarik Ron Rushing

Farmers & Merchants Bank

Banks with the highest attendance at ABA Professional Development events...

Southern Simmons First Bancorp Bank Security Bank

Centennial Bank

January 2017 | The Arkansas Banker

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2017 Conferences & Schools April 2017

June 2017

Annual Convention

Commercial Lending School

Leadership Conference

The Annual Convention will be taking place at the newly renovated and expanded stateof-the-art Robinson Center in downtown Little Rock on the banks of the Arkansas River. A stunning view of the river and beyond complete with a brand-new design of the Broadway Bridge will set the backdrop for a most memorable event.

The ABA Commercial Lending School is a comprehensive learning opportunity for both novice and experienced lenders.

The Leadership Conference provides bankers with a chance to further their leadership skills, listen to motivating speakers, and network with colleagues from across the state. The ABA Emerging Leaders Council assists with the planning of this event.

April 10-12, 2017 | Little Rock

April 24-28, 2017 | Little Rock

June 2017 | Central Arkansas

For more information on these ABA events, as well as a listing of our other seminars, log on to www.arkbankers.org!

ONGOING THROUGHOUT THE YEAR

About the GSB Online Seminar Series Offering a convenient and cost-effective way to participate in educational opportunities, these programs are designed specifically for financial professionals and delivered by some of today’s top industry experts. The use of state-of-the-art audio and video technology ensures a quality, interactive learning experience. Relevant, bank-specific topics provide a solid educational value for you and your staff.

Educating Professionals, Creating Leaders

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The Arkansas Banker | January 2017

2017

GSB ONLINE SEMINAR SERIES

Registration includes: • One connection into the online seminar presentation—invite others to participate through the same connection at no additional cost • Handouts and other resource material • Unlimited access to the recording of live, online seminar presentations for 90 days after the conclusion of the program • Access to industry experts and nationally known speakers from the convenience of your office

GSB. org

August 2017 ABA Mega Conference October 2017 | Little Rock

Bank Management Seminar

August 10-12, 2017 | Branson, Missouri With a line-up of timely banking topics, the Bank Management Seminar provides upperlevel banking personnel the opportunity to solidify strategies for building a strong future for their respective banks while connecting with peers.

October 2017

IRA School

October 17-18, 2017 | Little Rock Whether you’re looking to gain basic knowledge of IRAs, raise your comfort level, or sharpen your skills with the most up-todate rules and regulations, the IRA School is for you.

ARKANSAS BANKERS ASSOCIATION

HUMAN RESOURCES CONFERENCE Events to Watch For

FEBRUARY 1, 2017 | EMBASSY SUITES, LITTLE ROCK

Human Resources Conference Spring/Summer 2017 | Little Rock

The ABA Human Resources Conference is designed to bring needed information to banking industry human resources professionals, including regulatory updates and hot-button issues.

The ABA Mega Conference combines six of our annual events into one awesome professional development and networking event with an on-site trade show. Events taking place during the Mega Conference include: Agricultural Lending Conference The Agricultural Lending Conference provides high-quality, timely, and practical financial tools and economic information to both lenders and producers.

Marketing Conference Centered on bank marketing strategies, the Marketing Conference features speakers on a range of topics, helping bank marketers stay ahead of current trends.

Security Workshop Bank security officers are challenged each day to be aware of the perils affecting their banks, while also modifying the policies, procedures and practices to prevent losses. The Security Workshop provides topics to address the security issues and concerns you faced by those individuals.

Technology Conference The Technology Conference is structured to give Arkansas bankers an understanding of the products available today, and how to use them to both benefit customers and safeguard data.

Trust Conference The role of a hometown bank’s trust department is a unique one—from assisting with estate and retirement planning to staying current on very specific legal and ethical responsibilities.

The Trust Conference brings together professionals from across the state to discuss the tools and strategies needed to best serve bank customers.

Consumer Lending School August 2017 | Little Rock

The purpose of Consumer Lending School is to provide bankers interested in the field of consumer lending with the fundamental information needed to provide effective service to consumers and perform their job responsibilities professionally.

Women in Banking Conference Fall 2017 | Little Rock

The Women in Banking Conference is designed to empower and inspire women at all levels of the Arkansas banking industry, giving them the opportunity to network, compare notes with those who have similar challenges and successes, and learn about management, leadership, industry issues and personal development.

Basic Lending School Fall 2017 | Little Rock

Basic Lending School is designed to provide a solid foundation and overview of lending skills and topics. This five-day event provides classroom instruction, as well as the opportunity for students to put their knowledge to work with hands-on case studies.

January 2017 | The Arkansas Banker

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MEMBER NEWS Cornerstone Bank’s Donation of Parking Lot Raises $42,238 in Community Charles T. Cross, President and CEO, Cornerstone Bank, recently announced that the local bank’s annual donation of its downtown branch facility’s parking lot to local organizations, civic groups and non-profits raised $42,238.70 in 2016.

Cross stated, “We are very pleased that the donation of our bank’s parking lot to 90 different organizations was able to raise this record breaking amount of money in 2016. These dollars support some very worthy causes right here in our hometown

and we feel privileged to have the opportunity each year to give back to a community that has continued to make our bank’s exceptional growth and progress possible.”

Annually, the bank allows non-profit and civic organizations the opportunity to raise money with parking proceeds at its Historic Downtown Branch Facility. The local bank donates its lot free of charge for any group that meets standard criteria.

Arkansas State University Competes in 2017 Community Bank Case Study

by Richard S. Plotkin

In the nationwide team competition, undergraduate college students-under the advisement of a school faculty member-are required to establish partnerships with local community banks to conduct original case studies. The competition is intended to build a further understanding of the community banking business model and the role community banks play in local communities. The topic of the case study in 2017 is management and board succession.

Students on the first-place team each will receive a scholarship from CSBS of $1,000 and a travel stipend to present their case study at the annual “Community Banking in the 21st Century” research and policy conference at the Federal Reserve Bank of St. Louis.

The conference is scheduled to be held October 4-5, 2017.

The first through third place teams, and teams that receive David Kern, Associate honorable mention, will have their Professor of Finance at case studies published in a journal Arkansas State University. during the conference.

The teams will be responsible for analyzing the financial characteristics and historical trends of their bank and the strengths and weaknesses in the institution’s management succession planning. In addition, they will be expected to identify any correlation between the bank’s performance and its leadership succession preparedness. The students must develop recommendations for the bank to consider in executing a strong succession plan.

States represented in the 2017 competition are: Alabama; Arkansas; California; Connecticut; Georgia, two schools; Indiana, four schools; Iowa, two schools; Kentucky; Louisiana, three schools; Michigan, two schools; Minnesota, two schools; Mississippi, two schools; Missouri; Montana; North Carolina; Ohio, four schools; Pennsylvania, four schools; South Dakota; Tennessee; Texas, two schools; Virginia, two schools; and Wisconsin.

The faculty adviser for Arkansas State University is David Kern, Ph.D., Associate Professor of Finance, who advised three teams in 2016. Kern’s students will work this year with The Citizens Bank, Batesville.

Southeastern Louisiana University, which finished first in the 2016 competition, is one of the three schools in that state that have entered the competition in 2017.

A total of 40 colleges and universities from 22 states – including Arkansas – have entered the third annual 2017 Community Bank Case Study competition, sponsored by the Conference of State Bank Supervisors (CSBS).

Arkansas State University is the only entrant from the state of Arkansas. A team from Arkansas State University was selected among 12 finalists in the 2016 competition.

The teams in the competition will be responsible for submitting a paper consisting of up to 25 pages that discusses their case-study findings, and a video that highlights the findings.

The deadline to submit the paper and video is April 24, 2017.

After the judging period ends May 19, 2017, the first- through third-place teams will be announced on May 25 during the 2017 CSBS State-Federal Supervisory Forum in New Orleans.

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The Arkansas Banker | January 2017

More information is available on the Community Bank Case Study Competition website at: www.csbs.org/bankcasestudy.

CSBS is the nation’s leading advocate for-and the only national organization dedicated to advancing-the state banking system.

Its members include banking regulators from all 50 states and U.S. territories.

Stone Bank Announces White Hall Advisory Board Marnie Oldner, Chief Executive Officer of Stone Bank, announced that the bank has formed an advisory board for its White Hall branch location. “The White Hall advisory board is a who’s who of the area and will help keep the bank connected to the community. We appreciate their willingness to be part of our commitment to the White Hall area.” The board includes: Bill Blankenship, Jr., of Pine Bluff, is a farmer in Jefferson and Lincoln County and serves on the board of directors of the Jefferson County Farm Bureau.

George Wesley (Wes) Booker II, of White Hall, is a graduate of White Hall High School and the University of Central Arkansas where he was named an All-American on the 1991 football team.

He is the owner of Wes Booker Insurance and a Southeastern Conference football referee.

Charles (Trey) Buckner, of White Hall, is the owner of Charles S. Buckner III Real Estate Appraisals and co-owner of the nationalaward winning catering company, Fowl Smokin’ Swine. Buckner is vice president of the Arkansas Wildlife Federation and is the White Hall High School Trap Shooting coach. He is a University of Arkansas graduate.

Franklin “Beaver” Johnson, of White Hall, is the owner of Johnson’s Metal Recycler and is the Music Director at White Hall United Methodist Church. He also serves as an alderman for the city of White Hall.

Warren Parker, of Dumas, is a graduate of St. Paul’s School in Covington, LA, and the University of Arkansas. He is the sales manager at Dumas Motor Co.

Stone Bank’s advisory board for their White Hall branch location.

Top (left to right) Bill Blankenship, Pat Sutliff, Wes Booker, and Trey Buckner. Bottom: Warren Parker, Franklin “Beaver” Johnson.

Pat Sutliff, of White Hall, is the owner of Sutliff Construction and a graduate of White Hall High School.

Stone Bank is headquartered in Mountain View, with offices in White Hall, Harrison, and Little Rock. The bank was originally chartered in Altheimer before moving to Mountain View in 2009.

A new community-banking center is under construction in White Hall at 7735 Sheridan Road and scheduled to open in early 2017. The branch is currently located at 7197 Sheridan Road. Kelly Williams is the White Hall Market Manager.

Arvest Reaches Mortgage Milestone

Leading Lender Originates $1 Billion-Plus in Purchase-Money Loans Arvest Bank announced its mortgage division originated more than $1 billion in purchase-money mortgage loans in 2016, the first time it has done so in its history.

Arvest announced in September it had originated more than $1 billion in mortgage loans-both purchase-money and refinances -for the 14th consecutive year. Steven Plaisance, president and chief executive officer of Arvest’s mortgage division, said passing the $1 billion mark in purchase-money loans alone is a testament to Arvest’s mortgage lenders and a good indicator of healthy local economies within the bank’s footprint.

“We couldn’t have reached this remarkable milestone without the dedication and expertise of all our mortgage lenders, assistants and our operations team,” Plaisance said. “Additionally, low interest rates have helped many people realize the dream of buying their first home, their dream home, or something in between. We’re always happy to help provide the opportunity for people to improve their lives through the purchase of a home.”

closed a total of 5,931 purchase-money loans with total loan value of $941,340,727.

“Mortgage interest rates remain one of the best deals going, and thus we are very excited about the 2017 purchase-money market despite the recent rate movement,” Plaisance said. “We urge everyone to keep in mind historical mortgage rates as we move forward.”

Arvest is unique among most local lenders in that it services 99 percent of its mortgage loans, meaning that customers make their payments to Arvest and deal with Arvest for any needs after their loan closes.

As of Dec. 28, Arvest had closed a total of 6,170 purchase-money loans with total loan value of $1,001,191,628. In 2015, Arvest January 2017 | The Arkansas Banker

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BANKER NEWS & MOVES HARRISON NATIVE JOHNSON JOINS STONE BANK IN HARRISON AS SENIOR LENDING OFFICER Marnie Oldner, Chief Executive Officer of Stone Bank, announced that Jim Johnson has been named Senior Vice President, Senior Lending Officer at the bank’s Harrison location.

“Jim is a life-long Harrison native and understands the needs of the Boone County businesses and families,” said Oldner. We are excited that he’s coming home’ to our new Harrison office to continue serving the community with a home-owned bank.”

Johnson had been serving in a similar capacity at the bank’s Mountain View office.

He has an extensive financial background including positions at Security Bank in Harrison, American General Finance, Tankinetics/Strand Industries in Harrison, Bank of America and Arvest Bank. He joined Stone Bank in Mountain View in 2013.

Johnson, 54, is the son of Winford “Wimp” and Zettie Johnson of Harrison, is a graduate of Harrison High School and the University of Arkansas at Fayetteville with a degree in Banking and Finance. He also attended North Arkansas College on a baseball scholarship. He is married to the former Lisa Paladino and they have 3 children.

His community involvement includes: Board of Directors, Harrison Consolidated Youth (Treasurer); Board of Directors, Ozark Arts Council (VicePresident); Board of Directors, Harrison Public School Foundation; Board of Directors, Harrison Area Razorback Club; Vice-President, Harrison High School Friends of the

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Choral Arts; Radio Voice of the Harrison High School Goblin football team; Member of the Lendel Thomas Basketball Classic Committee, and the Harrison American Legion Baseball Board of Directors. He is also a 1997 Graduate of the Harrison Chamber of Commerce Leadership Institute The Harrison location of Stone Bank is temporarily housed at 1309 Hwy. 62/65 N with plans to build a communitybanking center at 1302 Hwy. 62/64 N, set to open in late 2017. Dusty Middleton is the Harrison Market Manager.

BUNNELL PROMOTED TO PRESIDENT OF ARVEST EQUIPMENT FINANCE Arvest Bank is pleased to announce that Eric Bunnell has been promoted from senior vice president and sales manager to president of Arvest Equipment Finance (AEF).

Bunnell, a Certified Lease & Finance Professional who is a member of the CLFP Board of Directors, has been with Arvest since 2012 and in the commercial lending industry since 2001. He also serves as a member of the National Equipment Finance Association.

In his new role, Bunnell will provide leadership and overall day-to-day direction and administration of Arvest’s commercial equipment finance division, among other duties.

“Eric’s industry experience and track record here at Arvest made him a natural choice to lead AEF,” said Craig Rivaldo, president and CEO for Arvest Bank in Benton County. “We are excited about what Eric will bring to his new role, and know that AEF is in good hands as that segment of our business continues to grow.”

AEF ended 2015 with $187.6

The Arkansas Banker | January 2017

million in loans and leases.

That was up 28 percent from 2014’s $146.4 million, according to MonitorDaily, a leading publication of the equipment leasing and finance industry.

AEF’s loans and leases totaled $223.7 million at the end of October.

Bunnell is a native of Trenton, Mo., and earned a bachelor’s degree in agricultural economics at the University of Missouri.

Bunnell has been active in numerous community organizations in Greater Kansas City and is relocating to Fort Smith. He and his wife, Kristin, have two daughters.

ARKANSAS STATE BANK DEPARTMENT PROMOTES ANDREW MCCORMICK TO BANK SENIOR EXAMINER The Arkansas State Bank Department has promoted Andrew McCormick to Bank Senior Examiner.

McCormick is a commercial examiner assigned to one of two groups based in Little Rock.

McCormick was hired by the Bank Department on December 30, 2013. Immediately prior to his hiring, McCormick worked as a credit analyst at River Town Bank in Dardanelle. He also has served as a "universal" banker at U.S. Bancorp in Little Rock selling bank deposit and loan products and services, referring clients to brokerage products, and originating and closing consumer loans - and as a financial services representative/ teller at Arvest Bank in Little Rock.

McCormick received a Bachelor of Business Administration, with an emphasis in personal financial planning, at the University of Central Arkansas in May 2010.

A commercial Bank Senior Examiner must demonstrate the

ability to deal with all situations and to conduct an examination without supervision. The institution that the examiner will be expected to evaluate will be more complex than those examined by a Bank Junior Examiner and might present a broad spectrum of problems or challenges. The examiner must have the ability to analyze the institution completely in light of all relevant circumstances, and is expected to manage all aspects of the examination process.

This includes performing a pre-examination review to determine the scope of an examination, and preparing agendas for - and conducting meetings with - bank management and the board of directors.

Overall, a commercial Bank Senior Examiner must be able to handle a wide variety of problems with very limited supervision. Another responsibility of this examiner is the training of examiners with less tenure.

CORNERSTONE HIRES TWO FOR HARRISON ENTRY Charles T. Cross, President & CEO, Cornerstone Bank is pleased to announce the hiring of the bank’s first two staff members for its upcoming entry into the Harrison, Arkansas market. Nate Wilson and Kelly Miller, formerly of Community First Bank, have joined Cornerstone as a lending team in Harrison.

Nate Wilson, who will serve as Senior Vice President/ Loan Officer is a native of Harrison, having graduated from high school there in 1997. He received his college degree from University of Central Arkansas in May, 2001. He has been in banking for the past ten years in both operations and lending capacities.

BANKER NEWS & MOVES

INDEX OF ADVERTISEMENTS ABA Annual Convention

2

www.arkbankers.org/convention.aspx

ABA Stonier Graduate School of Banking

20

DDF Consulting

20

www.abastonier.com

www.ddfconsulting.com

GSB Online Seminar Series 22 www.gsb.org

Kelly Miller, also a native of Harrison, will serve as Loan Assistant in Cornerstone’s Harrison office. She has worked at Community First Bank since 1998 in customer service, deposit operations and, since 2005, as a Loan Assistant.

contract on approximately seven acres across Highway US 65 from Wal-Mart in Harrison. The bank intends to construct a full service banking center in 2017 at that location. Additionally, there are plans to open a temporary facility to serve customers while under construction. The local bank has been growing rapidly during the past several years; however, this will be the bank’s first location in Boone County.

Cross stated, “We are thrilled to add two seasoned bankers of Nate and Kelly’s caliber to our growing bank team. Our company is excited to bring its brand of true community banking to Harrison and feel blessed to be afforded the opportunity to serve the businesses and citizens of Boone County. With the affiliation of these two professionals, we look to be off to a great start in building a bank team that is second to none. We are thrilled to welcome Nate and Kelly to the Cornerstone family.”

ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Merger Application An application to merge Pinnacle Bank, Rogers, Arkansas with and into Central Bank, Little Rock, Arkansas has been approved.

An application to merge Little River Bank, Lepanto, Arkansas with and into First Community Bank, Batesville, Arkansas, has been approved.

Cornerstone Bank, a 105 year old financial institution, based in Eureka Springs, Arkansas, is currently under

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

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.

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

Nomination forms can be accessed January 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 | January 2017