The Arkansas Banker September 2017

Mega Conference

Banking for Good

Retaining Your Best People

The Arkansas

Banker

Mobile Banking:

The Amazon Prime Effect Volume C, No. 9 | September 2017 September 2017 | The Arkansas Banker

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ABA Live Events ABA Professional Development

Live Events...

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

OCTOBER 2017 10

11

| Loan Review

Arkansas Bankers Association, Little Rock Who Should Attend: Loan Review Officers, Internal Auditors, Credit Administrators, Loan Officers, and Senior Credit Officers

| Bank Directors Workshop I

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

19 | Writing Compliant Real Estate Evaluations Internally

Arkansas Bankers Association, Little Rock Who Should Attend: Appraisal Department, Credit and Loan Officers, Loan Review Officers

23-25 | ABA Mega Conference

Little Rock Marriott, Little Rock Who Should Attend: Emerging Leaders, Ag Lending Personnel, Bank Directors, Marketing Personnel, Security Personnel, Technology Personnel, Trust Officers, and Personal Bankers

15-20 | 2017 Bank Technology Security School

Dex Media Center, Dallas, Texas Who Should Attend: Security Officers, IT Personnel

17-18 | IRA School

Holiday Inn Presidential, Little Rock Who Should Attend: New Accounts Representatives, CD Personnel, Savings Counselors, Investment and Trust Personnel, and IRA Personnel

NOVEMBER 2017 16

| ELS Day with the Regulators

Federal Reserve, Little Rock Who Should Attend: Bankers interested in building relationships with regulators and learning more about the regulatory process

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| Women in Banking Conference

The Robinson Center, Little Rock Who Should Attend: Women in banking at all levels who want to increase their effectiveness and success on the job

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

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The Arkansas Banker | September 2017

The Arkansas

Banker Volume C, No. 9 | September 2017

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

EDITORIAL OFFICE

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

CONTENTS COLUMNS DEPARTMENTS

6

Washington Update

Bill Holmes

Rob Nichols

21 Member News 25 Banker News & Moves 27 Index of Advertisements

8

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.

President’s Column

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.

4

August Recess Lends Itself to Grassroots Activity

By Ava F. Roberts

10 2017 ABA Mega Conference

FEATURES

SUBSCRIPTION

16

The Surprising Truth About What Determines if You Succeed or Fail at Work and in Life

By Sandy Asch

17 How to Retain

Your Best People

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

By Trey Deupree & Bruce Johanson

18 Southern Bancorp is

‘Banking for the Good of

the Community’

MAGAZINE RATES

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

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

Phone: 501.376.3741. Periodical postage paid at Little Rock, AR. POSTMASTER: Send address changes to Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201.

COVER STORY

The Amazon Prime Effect Clay Crenshaw discusses the impact subscription-based services have on customer expectations, and what that means for banking.

See page 14 September 2017 | The Arkansas Banker

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PRESIDENT’S COLUMN Serving Our Customers, Protecting Our Banks Ingrained in every Arkansas banker is the desire to help a new business grow, prosper and enhance our communities. Not always will the answer for new funds be “yes;” sometimes it is a very correct “not yet,” and occasionally it is a sound “no.”

Surely we are always ready to provide our services and funding to new business opportunities in our communities; especially when this developing business is projected to create more new jobs than the manufacturing sector of our national economy. But what if this new business is cultivating or dispensing marijuana? Most banks are sitting on the sidelines, weighing the reputational, legal, and regulatory risks before deciding on a business plan.

Arkansas is one of 29 states that have made medical marijuana legal under a regulated program. Eight other states have expanded their program to include recreational use and/or edible products. Cannabis is legal in each of these states, but remains a class I drug prohibited by federal laws. And recently U.S. Attorney General Sessions has reiterated his strong feelings that it should not be a legal drug.

So, what should our banks be aware of as we face new businesses that are legal under our state’s

laws, and illegal under our federal laws? What should we know about our existing customers who will provide a product or service to a marijuana business? What do we need to do when we have a longtime customer who has had a transaction with a marijuana business? What do we have to report, which SAR do we file, what do we have to investigate, where do we go for answers? These are all parts of the maze that is created by this new, but growing industry.

Not banking this new industry also poses reputational risk. Under our state’s laws these are legal businesses that deserve the same banking services as other businesses. These are cash intensive businesses that must pay the vendors, landlords, suppliers and employees with cash.

There will undoubtedly be people willing to risk their safety, and the safety of anyone else in the area, to attempt to attain possession of these large cash pools. Our communities look to us to provide a safe consumer cash experience, something that may now be threatened. It is not a problem we can solve. Federal legislation is urgently needed to make banking state-legal marijuana businesses less problematic and challenging.

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

4

PRESIDENT & CEO BILL HOLMES

The TheArkansas ArkansasBanker Banker || September September2017 2017

ADMINISTRATIVE ASSISTANT 501.978.3607 | brenda.scarbrough@arkbankers.org

What we do know from other states is that if a bank is going to take on a facet of this business, they must have strong compliance and BSA officers, and require boards that are informed and active. They will need processes and procedures in place, and a strong audit standard for their marijuana business customers. Most of all, they will need to be transparent and open with their regulators. The banks will need a well-designed plan, blessed by the regulators, to be able to handle these new businesses that will require much greater due diligence than any of our other customers.

Looking at this business in its infancy, looking at the potential growth and fee income, looking at the state-legal, federallyillegal status explains why so many are on the sidelines watching.

This opportunity isn’t right for everyone. For those that make a commitment and follow the plan, maybe it is okay.

On October 24 in Little Rock at the Marriott, we will have a two-hour panel discussion with bankers, business people, and regulators on the good, the bad and the ugly of marijuana business. Come join us for that lunch meeting, hear their stories, get some questions answered and gain a better understanding of the issues related with medical marijuana. Our panelists include subject matter experts from Colorado and California. You or one of your senior level executives should be there to hear how marijuana and the banking industry intersects. It is a $6 billion business and going to grow bigger.

ABA EXECUTIVE COMMITTEE

CONFIRMED MARIJUANA BANKING PANELISTS John W. Vardaman, III

Executive Vice President & General Counsel, Hypur Founded in 2014, Hypur is a team of bank compliance and software entrepreneurs who have successfully helped financial institutions automate their compliance with marijuana banking regulatory requirements by implementing an integrated point-of-sale system.

As Hypur’s General Counsel, John advises on strategy to ensure that Hypur’s offerings are in alignment with legal and regulatory requirements.

Kelly Goode

Senior Examiner, Kansas City Federal Reserve Bank The Denver Branch of the Kansas City Federal Reserve has supervised banks on the subject of marijuana banking since the controlled substance’s legalization in Colorado in the early 2000s. Kelly is a senior examiner in the Denver branch of the Kansas City Federal Reserve Bank, where she has worked for 10 years.

Mary Robin Casteel

Directory, Arkansas Alcoholic Beverage Control Division ABC regulates the manufacture and sale of alcoholic beverages and medical marijuana dispensaries and cultivation facilities in Arkansas. Mary Robin has served the ABC since 2013, and was named the agency’s director in June.

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

CATHY OWEN | CHAIRMAN-ELECT Eagle Bank, Little Rock

SEAN WILLIAMS | PAST CHAIRMAN

BILL HOLMES | PRESIDENT/CEO

First National Bank of Wynne, Wynne

Arkansas Bankers Association, Little Rock

ABA BOARD OF DIRECTORS

JOHNNY ADAMS | GROUP 2

ROB ROBINSON IV | VICE CHAIRMAN

Simmons Bank, El Dorado

DAVID DOWD | GROUP 1

TOM GRUMBLES | GROUP 2

JERRY MORGAN | GROUP 1

First Security Bank, Conway

Cross County Bank, Wynne

First Service Bank, Greenbrier

Focus Bank, Jonesboro

PHIL BALDWIN | GROUP 2 Citizens Bank, Batesville

TROY DUKE | GROUP 5 Gateway Bank, Rison

SCOTT HANCOCK | GROUP 3 Centennial Bank, Fayetteville

LORI ROSS | GROUP 4 Citizens Bank, Arkadelphia

JEFF BRECKLEIN | GROUP 1

NATHAN GAIRHAN | GROUP 3

DARWIN HENDRIX | GROUP 4

JASON TENNANT | GROUP 3

Integrity First Bank, Jonesboro

United Bank, Springdale

Bank of Delight, Delight

Cornerstone Bank, Eureka Springs

JIM CARGILL | GROUP 2

DON GIBSON | GROUP 3

DAVID JESSUP | GROUP 5

LYNN WRIGHT | GROUP 2

Arvest Bank, Little Rock

Legacy National Bank, Springdale

DeWitt Bank & Trust, DeWitt

GENE CRAWFORD | GROUP 5

CHRIS GOSNELL | GROUP 4

WILSON MOORE | GROUP 2

Citizens Bank, Batesville

Farmers Bank & Trust Co., Magnolia

Regions Bank, Little Rock

Bank of America, Little Rock

September 2017 | The Arkansas Banker

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WASHINGTON UPDATE Tax Reform: A Hard Job Worth Doing Nothing in Washington that is worth doing is easy, and tax reform is no exception.

There is no doubt that our tax code needs a rewrite. As Congress’ Joint Committee on Taxation points out, since our last overhaul in 1986, our economy has nearly doubled in size, and the internet and globalization have fundamentally changed the way we do business.

Today’s tax code fails to recognize these changes, puts us at a global competitive disadvantage (the combined state and federal U.S. corporate tax rate of more than 39 percent is two and three times higher than that of “competing” countries) and ultimately hinders job and economic growth.

The good news is that leaders in the House, Senate and White House agree on the need for tax reform and are committed to its enactment.

While that creates a solid foundation for this important effort, we all know it will take fortitude and persistence to change a tax code that now spans 74,000 pages.

AmBA is strongly in favor of tax reform that strengthens economic growth and creates jobs.

A stronger economy would be good for the country, our members, and their customers.

We have made ourselves a resource to the lawmakers and staff who are at the center of this enormous undertaking, providing analysis and expertise. We also are encouraging bankers to raise this topic in meetings with their elected representatives.

Of course, like others, we have strong opinions about specific provisions, like the deductibility of interest and the tax-favored status of bank competitors. But we also know that economic growth — which tax reform is intended to spur — is priority number one for our industry, and that any package put forward must be evaluated as a whole, based on its net impact on the economy, banks and bank customers.

That is why we developed a set of core principles for tax reform that will serve as the basis for our comprehensive analysis of any package that

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The Arkansas Banker | September 2017

emerges from the deliberations. Those principles, which are available in full on aba.com, urge policymakers to: Lower rates for all businesses substantially — 15 to 20 percent has been proposed — to boost growth and allow U.S. businesses to be competitive in the global market Broaden the base and simplify the tax code to level the playing field Specifically eliminate favored tax treatment enjoyed by credit unions and the Farm Credit System

ROB NICHOLS

President & CEO American Bankers Association

Consider carefully the effects of any potential effort to limit the deductibility of interest, which could adversely impact economic growth. (The extent of tax rate reductions will be a key factor in assessing the broader impact of any changes to the deductibility of interest.)

Avoid industry-specific taxes, which would be punitive, unfair and slow economic growth Provide adequate transition time for the market and balance sheets to adjust to the new system AmBA developed these principles through an internal tax reform working group that has coordinated closely with AmBA’s bankerled Taxation Administrative Committee and solicited feedback from bankers in various forums. We have highlighted the principles in communications to Capitol Hill, informing members that we will strongly support tax reform efforts that align with these principles.

Our goal is to encourage a smart approach to comprehensive tax reform that can help America’s communities thrive.

As a veteran of the Treasury Department in the early 2000s when tax cuts were enacted, I know this undertaking is hard — I have the bruises to prove it. But that doesn’t mean it can’t be done. It can, and we should do everything in our power to make it happen.

© 2016 American Bankers Association. All rights reserved. Reprinted with permission.

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!

Building an Effective IT Audit Program Tuesday, October 3, 2017 10:00 a.m.- 12:00 p.m.

Seven Habits of Effective Credit Administration in Banks Tuesday, October 3, 2017 1:30 p.m.-3:30 p.m.

Legal Essentials for Lenders Wednesday, October 4, 2017 1:30 p.m.-3:30 p.m.

Key Ratio Analysis Thursday, October 12, 2017 9:00 a.m.- 3:00 p.m.

UDAAP Risk Assessments Monday, October 23, 2017 1:30 p.m. – 3:30 p.m.

HDMA 2018 Challengies with Taking Applications Part I Thurday, October 12 1:30 p.m.- 3:30 p.m.

Advanced Financial Statement Analysis Monday, October 23, 2017 9:00 a.m.- 3:00 p.m.

Denials Thursday, October 12 10:00 a.m.-12:00 p.m.

Marketing & Advertising Compliance Tuesday, October 24, 2017 10:00 a.m.- 12:00 p.m.

Excel Explained: Filtering and Formatting Data Friday, October 13, 2017 10:00 a.m.- 12:00 p.m.

Tech Fraud: A Virtual Minefield Wednesday, October 25, 2017 10:00 a.m. - 12:00 p.m.

Patch the People- Education for Customers and Employees Tuesday, October 17, 2017 10:00 a.m.-12:00 p.m.

Compliance Perspectives: A Monthly Update Thursday, October 26, 2017 1:00 p.m. – 2:00 p.m.

Internal Audit Thursday, October 5, 2017 1:30 p.m. – 3:30 p.m.

Loan Documentation 101: Basic Secured Loan Documentation Wednesday, October 18, 2017 1:30 p.m.-3:30 p.m.

Lending to Non-Profit Organization Friday, October 27, 2017 10:00 a.m.- 12:00 p.m.

Legal Liabilities When Check Fraud Occurs Tuesday, October 10, 2017 1:30 p.m. – 3:30 p.m.

Customer Conflict: Opportunity Knocks Wednesday, October 18, 2017 10:00 a.m.-12:00 p.m.

Understanding Regulation CC and the New Amendments Wednesday, October 11, 2017 1:30 p.m. – 3:30 p.m.

Loan Documentation 101: Lien Perfection, Business Collateral Thursday, October 19, 2017 10:00 a.m.- 12:00 p.m.

TRID Review and Update Wednesday, October 11, 2017 10:00 a.m.- 12:00 p.m.

FFIEC Information Security Handbook Review Friday, October 20, 2017 10:00 a.m.- 12:00 p.m.

ARM Disclosures: Review & Update Wednesday, October 4, 2017 10:00 a.m.-12:00 p.m.

The ACH Audit & Risk Assessment: What You Need to Know Thursday, October 5, 2017 10:00 a.m.-12:00 p.m.

Basic Personal & Business Tax Return Analysis Friday, October 27, 2017 9:00 a.m.- 3:00 p.m.

Contingent Liabilities: Three Lines of Defense Monday, October 30, 2017 1:30 p.m. - 3:30 p.m.

Introduction to Commercial Lending Monday, October 30, 2017 9:00 a.m.- 3:00 p.m.

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

September 2017 | The Arkansas Banker

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August Recess Lends Itself to Grassroots Activity

by Ava F. Roberts VP/Director of Government Relations

Bankers across the state took the opportunity of August recess to sit-down with their Congressman or Senator for thoughtful discussion regarding the state of the federal regulatory impact on Arkansas banks and the customer experience.

One such opportunity presented itself on August 21 at a Round Table with Senator Tom Cotton and Acting Comptroller of the Currency Keith Noreika. Both shared the common goal of having a fruitful and open dialogue with Arkansas bankers about the impact of federal regulations.

The Comptroller wanted no spare time during his trip to Arkansas, so ABA’s Government Relations team worked hard to accommodate. Our Monday morning started with breakfast at the Capital Hotel. Seven bankers, all OCC banks, sat down at the table ready to work. Our discussion ranged from the tenure of CFPB’s Director to many vivid and detailed customer impact stories.

Both the Senator and Comptroller asked thoughtful questions regarding these stories that ranged from customers texting a banker to ask why he has to send all of this information just to qualify for a loan, to making a small home loan work for a church member. The Senator and Comptroller were particularly intrigued when one banker explained we cannot make the same loans we have in the past because we fear regulatory repercussions.

Hearing these anecdotes one-on-one from constituents is invaluable to Washington decision-makers.

Later that morning, the Round Table took place at the Robinson Center. The room was filled with over forty attendees, ranging from OCC banks to state banks, and representatives from the Venture Center to community business people.

We immediately opened the floor for questions and the next two hours was

Representatives from the Small Business Administration chat with Acting Comptroller of the Currency Keith Noreika and Senator Tom Cotton before the Round Table.

filed with animated dialogue and airing of issues that need immediate attention from Washington.

Wasting no time, one banker took the floor to ask what are we doing now to actually make changes to overburdensome regulations? Comptroller Noreika said we should get more change when there is a new CFPB Director appointed, while Senator Cotton reminded us that they still have to finish making appointments, noting Congress was starting to move in that regard.

Conversation followed regarding the CHOICE Act, which Noreika referenced as setting the tone in D.C. as a sort of to-do list that motivates agencies to do something. However, Cotton reminded us that the CHOICE Act will be difficult to get through as is, even though it has good parts with bi-partisan support. He explained that political pressure due to the coming elections may lend pressure to movement.

Special thanks to those of you who joined our early morning breakfast meeting with Comptroller Noreika and Senator Cotton. The stories you shared and the discussion you facilitated certainly impacted our guests.

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The Arkansas Banker | September 2017

Regulatory thresholds force banks to make decisions about growth by having to grow just to pay for compliance matters, one banker explained.

The conversation then pivoted to marijuana banking. With both the Senator and Comptroller at a loss for

Dwight Rutland, President of Armor Bank, Forrest City; and Larry Wilson, Chairman & CEO of First Arkansas Bank & Trust, Jacksonville.

Thank you to our Round Table attendees!

You certainly led a two-hour discussion with our Washington guests.

Advocacy efforts are alive and well with each of you.

The extra time and energy you put into our event is so appreciated.

advice on what to do, bankers took to explaining the far reaching repercussions of the legalization in Arkansas. One attendee highlighted the rumor that Credit Unions are able to service marijuana customers in other states without the same consequences banks

may face. Another attendee explained we’ve been told to poll our doctors to see who is writing prescriptions. The Comptroller explained regulators have to be sensible about where to draw the line while simultaneously not condoning the activity.

At that point, the Arkansas Bank Commissioner explained, that is the challenge for banks who are trying to bank customers who have had business at that institution for many years; these people deserve to be banked and it is dangerous not to. Bankers were quick to supply her explanation with examples, from a customer who owns a strip mall and leases 10% of the property to someone in the marijuana business, to the dilemma of taking deposits from air conditioning service people who serve marijuana businesses. The Senator and Comptroller listened attentively, with Senator Cotton declaring they will look at these issues.

The day culminated with dinner in the wine cellar at the Capital Hotel.

Everyone was relaxed at this intimate event. A bit of business commenced with a discussion of OCC examiners with boots on the ground versus those in Washington. The seeming lack of communication between regulators was conveyed and the Comptroller listened

and acknowledged this issue needs to change. Discussion also turned to the attitude of federal regulators, pointing out those with superior or all-knowing positions toward the banks examined.

This candid discussion is an example of why August recess meetings are held; sitting with our delegation on our home turf usually makes for bold and necessary conversation.

Bankers led the discussion at the Round Table and should be very proud of their advocacy efforts. August 21 was not the only day bankers met with our federal delegation during the August recess.

Many other bankers sat down with their Congressman or Senator throughout the state and ABA commends them on their dedication and hard work. Thank you for making time for grassroots efforts; they pay off!

There are many ways to follow up, continue the advocacy, and pursue change in our industry. One way is to attend the Fall Washington Trip October 3-5, in Washington D.C. Another way is to send stories and examples of regulations’ impact on the customer experience.

Contact Ava at ava.roberts@arkbankers. org or 501-978-3606 to learn more about our grassroots efforts or inquire about our fall or spring visits to Washington.

Nearly two hours of candid exchange between bankers, business leaders, the Senator and Comptroller constituted a successful August Recess Round Table.

Those of you who joined us for dinner, thank you.

Your camaraderie and your focused discussion of regulatory burden is exactly what grassroots efforts is about.

We cannot do it without you.

September 2017 | The Arkansas Banker

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New in 2017, the ABA Mega Conference combines seven of our annual conferences into one awesome professional development and networking event with an on-site trade show. What does this mean for you? A greater opportunity to connect with peers from across the state, a vetted group of professional speakers to bolster your banking knowledge, and a professional development event customized to meet your needs!

Here’s how it works: Sign up. Register for the ABA Mega Conference at www.arkbankers.org/Mega.aspx. Attendees can sign up for one, two, or three days of the event.

Learn. Indicate which job specific track(s) you will attend. Events taking place during the ABA Mega Conference include Agri Lending, Bank Executive training, Leadership, Marketing, Security, Trust, and Technology. Maybe you’re an ag lending officer with an interest in trust? Feel free to pick and choose which individual sessions you will attend.

Interact. All tracks will combine for keynote and lunch sessions, which will include Little Rock native Super Bowl champion Keith Jackson, Arkansas’s own NFL Referee Walt Coleman (Hiland Diary), and an Arkansas-specific panel discussion on marijuana banking.

Engage. Join your fellow bankers and guests from across the state at our multiple networking events, networking events on Monday and Tuesday evenings, and the annual ABA Trade Show (previously held in conjunction with the Annual Convention).

Register and make your reservations now, because you won’t want to miss the first-ever ABA Mega Conference!

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The Arkansas Banker | September 2017

LUNCH & LEARN WITH KEYNOTES

You won’t want to miss our combined lunch sessions with inspiring nationally-known keynote speakers and a hot topic panel discussion!

Maximize Your Time with Super Bowl Champ Keith Jackson Monday, October 23 at 11:30 a.m.

What is your greatest purpose in life? Born and raised in Little Rock, Keith Jackson was a stand-out athlete who went on to play collegiate football with the Oklahoma Sooners, and later had a longstanding career in the NFL, playing for the Philadelphia Eagles, Miami Dolphins, and Green Bay Packers.

In his final season, Keith recorded 40 receptions for 505 yards and a career high 10 touchdowns, assisting the Packers to a 16-3 record and a win in Super Bowl XXXI. During his time in the NFL, Keith was touched by the violence and turmoil faced by the country’s youth, and began to focus on a greater purpose, building a non-profit organization to provide highrisk students the opportunity to further their education by completing high school: P.A.R.K. (Positive Atmosphere Reaches Kids).

Join Keith as he focuses on maximizing your time, because we only get one season to achieve our greatest purpose.

Marijuana Banking Panel Tuesday, October 24 at 11:30 a.m.

How will the legalization of medical marijuana impact banking in Arkansas? Find out from bankers and business people who have been there, done that during our Marijuana Banking Panel!

Panelists include: • Kelly Goode, Senior Examiner at the Federal Reserve Bank of Kansas City, Denver • John W. Vardman, III, EVP & General Counsel of Hypur, Scottsdale, Arizona • Mary Robin Casteel, Director of the Arkansas Alcoholic Beverage Control Division, Little Rock

Turn ‘Boos’ into Cheers with NFL Referee Walt Coleman Wednesday, October 25 at 11:30 a.m.

How well do you handle the negative nature of our society and your job responsibilities? One of the challenges in life is figuring out how to turn boos into cheers. In the midst of chaos, how do you respond as a leader? Walt Coleman has spent the last 25 years being cheered by hundreds and booed by millions. His experiences as a referee in the NFL gives him first-hand knowledge. During our lunch session, he will offer his suggestions on how you can survive in today’s negative society.

September 2017 | The Arkansas Banker

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SCHEDULE OF EVENTS Monday, October 23

Tuesday, October 24

Wednesday, October 25

8:00 a.m. Trade Show Breakfast

8:00 a.m. Trade Show Breakfast

8:00 a.m. Trade Show Breakfast

9:00 a.m. Concurrent Sessions

Agricultural Policy Update

9:00 a.m. Concurrent Sessions

Effective Executive and Bank

Director Compensation/Benefit Plans

9:00 a.m. Concurrent Sessions

Don’t Put Off to Tomorrow

What You Need to Secure Today

The Amazon Prime Effect

10:00 a.m. Break 10:30 a.m. Concurrent Sessions

Ag Policy Under the Trump

Administration & the Current Congress

Banking Vision 2020: Innovation at the Speed of Life

11:30 a.m. Lunch Featuring Keynote

Speaker Keith Jackson

“Maximizing Your Time” 1:30 p.m. Concurrent Sessions

Benefits & Advantages of Whole

Farm Revenue Crop Insurance

Expanding Your Potential with FinTech Integration

2:30 p.m. Break 3:00 p.m.

Concurrent Sessions Financing Arkansas’s Agricultural Producers: A Brief Primer on Proper Collateral Securitization and Loan Documentation

Compliance and Marketing

4:00 p.m. Adjourn 5:00 p.m. Networking Event

Looking at Leadership Through a Different Lens

Five Considerations to Improve Your Incident Response Program

10:00 a.m. Break 10:30 a.m. Concurrent Sessions

A Review of Director Duties,

Best Practices, Enforcement, and

Litigation Trends

How to Thrive in Disruptive Times

Credit Card Skimming

11:30 a.m. Lunch Featuring

Marijuana Banking Panel 1:45 p.m. Concurrent Sessions

Compliance Topics

Little Bit of Love & A Whole Lot of Crazy

Security Threats to Your Institution: Are You Ready?

2:45 p.m. Break 3:15 p.m. Concurrent Sessions

Emerging Technologies and

the Rockefeller Habits TBD

Branch Transformation

4:15 p.m. Adjourn 5:00 p.m. Networking Event

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The Arkansas Banker | September 2017

Update on Estate Planning and Administration

10:00 a.m. Break 10:30 a.m. Concurrent Sessions

Bad CTO, Good CTO

Reporting Obligations for IRA Custodians / Legal Developments of Interest to Trustees

11:30 a.m. Lunch Featuring Keynote

Speaker Walt Coleman

“Turning Boos into Cheers” 1:30 p.m. Concurrent Sessions

Operational Efficiency Self-Assessment

TBD

2:30 p.m. Break 3:00 p.m.

Concurrent Sessions Digital Banking: Maximizing Technology to Meet the Convenience Demands of Your Customers

TBD 4:00 p.m. Adjourn

FEATURED SPEAKERS Agricultural Lending Edwin Elfman, American Bankers Association Dr. Barry Flinchbaugh, Kansas State University Seth Hampton, Quattlebaum, Grooms & Tull, PLLC Hal Hyneman, Southern Pioneer Insurance Company

All Covered

• Mobile App Banner Ad

DataScout Pro

• Charging Stations

Marketing Dave DeFazio, Strategy Corps Shaun Harms, Bankers Assurance, LLC Virginia Heyburn, Fiserv Tiffany Pressler, AAMSCO

Equias Alliance

Bank Executives Bret Anderson, NetGain Technologies Trey Deupree, Equias Alliance Shaun Harms, Bankers Assurance, LLC Bruce Johanson, The Johanson Group/DB Squared Robert Smith, Friday, Eldredge & Clark

Mitchell, Williams, Selig, Gates and Woodyard, PLLC

Leadership Sandy Asch, Alliance for Organizational Excellence Jon Harrison, VIP2 Eric Howerton, WhyteSpyder, Inc. Security Anthony Burnett, Level5 Keven Eack, The Bannan Group, LLC Dan Harpool, Complete Computing Jon Waldman, SBS CyberSecurity Technology Joe Ehrhardt, 3E Software, Inc. / Teslar Trent Fleming, Ternt Fleming Consulting Lynette Martin, Gro Solutions Sean Tappe, PC Assistance Blake Townsend, PC Assistance Trust Bryant Cranford, Rose Law Firm Kevin Horn, BKD, LLP Coleman Westbrook, Friday, Eldredge & Clark Dan Young, Rose Law Firm

NETWORKING EVENTS Monday, October 23 at 5:00 p.m.

Tuesday, October 24 at 5:00 p.m.

Make connections with colleagues from other banks, and other fields at our nightly social events before heading out to explore Little Rock!

• Hotel Keycards • Mobile App Banner Ad

Federated Investors • Elevator Wrap

• Tuesday Evening Reception

NetGain Technologies

• Mobile App Banner Ad

The Payroll Company • Lanyards

Quattlebaum, Grooms & Tull

• Candy Basket

River City Print & Imaging • Brochure Printing

TRADE SHOW

EXHIBITORS 3E Software, Inc. / Teslar 3SI Security AAMSCO All Covered The ASA Group Bankers Healthcare Group BKD, LLP Broadridge Financial DD&F Consulting Group Federal Protection, Inc. The Johanson Group Mainstream Technologies Mainstreet Advisors NetGain Technologies OneDigital Benefit Advisors The Payroll Company Reich & Tang SBS CyberSecurity Visible Equity Works24 September 2017 | The Arkansas Banker

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Mobile Banking: Creating the Amazon Prime Effect

The retail space is undergoing a huge transformation as of late. Society is gravitating less toward traditional purchase models and more toward loyalty-oriented, subscription-based service models. This development has been termed the “Amazon Prime Effect,” as Amazon has both been a leader in this model and one of its biggest success stories. To put that success into perspective: as of March of this year, there are over 80 million Amazon Prime subscribers in the U.S., a significant jump even from the 65 million the company reported the previous November.

Amazon’s business model and similar companies following this model (think Spotify, Costco and others) have materially transformed the retail industry and consumers’ expectations of the services provided by the companies they do business with. Banks are no exception!

This is actionable competitive intelligence for community banks, which can use these companies as examples when developing their own retail products and services. One relatively straightforward area for customer experience where banks can do this is with their mobile offerings,

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as they’ve become essential to consumers’ everyday lives and enable banks to better meet customers where they are.

So, what has made products like Amazon Prime wildly successful?

THE SUBSCRIPTION-BASED MODEL

Before diving into how banks can make their own mobile offerings more marketable, it’s important to understand the subscription-based purchase model.

Traditionally, transactions have been based around products. If a consumer wanted an item, they would pay to own the product and then that transaction was complete. With the subscription-based model, the consumer pays for access and use of an ongoing service in regular installments (yearly, monthly, etc.) with no long-term commitment.

Why has this model seen so much traction within the marketplace? For one, it usually offers a higher level of value for a relatively low fee. It’s also based around ease and convenience to the end user and not the service or product provider, making it even more attractive to consumers. For companies, there is the added advantage of being provided with

The Arkansas Banker | September 2017

Photo by Julie Clopper / Shutterstock.com

by Clay Crenshaw Strategy Corps

regular points of engagement with the customer, frequently reminding him or her of the value of their brand.

HIGHER LEVEL OF VALUE, LOW COST

One of the biggest factors that make subscription-based services so appealing is that they provide more than just the basics. These services also include additional features or benefits to enhance the subscriber’s experience with the basic service.

For example, Amazon Prime isn’t simply a marketplace of items. Subscribers also receive a wealth of other valuable benefits—discounted prices on many products (often including exclusive deals just for Prime members), free two-day shipping, access to Amazon Now to receive many items at their doors in as little as 1-2 hours, access to video and music streaming services that include exclusive content and access to an eBook and audio book library, to name just a few.

And all of this value is reasonably priced at about $100/year.

Value-rich models like these have greatly influenced the retail space and consumer psychology so that customers have come

to expect more than just the basics from the companies they choose.

To meet these expectations and remain relevant to their customers, banks must practice the same principle and offer more just basic financial services.

In regard to mobile specifically, that means going beyond the Big 5 features (transfers between accounts, bill pay, deposits, branch and ATM locators and P2P payments) to provide more value with mobile services. For example, banks could offer their customers access to a network of mobile coupons for moneysaving discounts or self-service financial guidance powered by robo-advisors.

What’s important is that the value is relevant to customers, affordable and easy to access—from the customer’s perspective, not the provider’s.

EASE AND CONVENIENCE

It’s not only what the subscription model delivers but also how it delivers that makes it so successful. While the model may vary slightly from company to company, all subscription services are characterized by a very convenient and

user-friendly customer experience.

For example, Amazon Prime centralizes a huge selection of items in one easily searchable marketplace. Customers will quickly be able to find the specific types of products they’re looking for and can also easily compare products and read reviews to get the best price and quality. This would be much harder with these items spread across different vendors. Then, once the member has found the item they want, it’s delivered directly to their door within two days so they barely have to wait for it to appear on their doorstep.

To see the most immediate success, banks should focus on making their mobile offerings as convenient and “friction-less” as the Amazon experience. That means making sure apps are as user-friendly and intuitive as possible and that value meets customers where they are.

To make utilizing their services more intuitive and natural, some banks are integrating their mobile banking features with voice or text capabilities to meet customers where they’re already using their phones. Venmo has managed to do

this highly effectively. Its users can access Venmo’s capabilities directly within their texting applications so they don’t have to navigate a menu or even open the Venmo app. Instead, the experience aligns with how they use their phones daily, making it quick and easy.

By working to make their own mobile offerings more value-rich and convenient, community banks will be better positioned to compete not only with other financial institutions but also the larger retail space. All it takes is pushing beyond the boundaries of the basics and being relevant to where customers are and what they want. Then, community banks will reap the benefits of their own Amazon Prime Effect.

Learn more about the Amazon Prime Effect during the ABA Mega Conference Marketing track!

Artful expertise.

Value rarely means simplicity. You’ve put in the time and effort to build a successful financial institution, and we’re dedicated to understanding your craft. Our IT Risk Services pros can help you improve your data security and comply with various regulations to perfect the masterpiece that is your bank.

Everyone needs a trusted advisor.

Who’s yours?

501.372.1040 | bkd.com/fs

September 2017 | The Arkansas Banker

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The Surprising Truth About What Determines if You Succeed or Fail at Work and in Life

by Sandy Asch Alliance for Organizational Excellence

Resilience is a hot topic in business. Some might say it’s the new buzzword, especially as it relates to financial resilience. Does it matter in the workplace? Yes, probably more than intelligence, skill or ambition.

Resilience is the backbone of any organization—the ability of its employees to respond effectively to the demands and pressures of the work world to meet goals and expectations while possessing perpetual fulfillment.

The business world has excelled at mastering the art of achievement, yet many still hunger for fulfillment. The lack of fulfillment in the workplace may indeed be the reason so many organizations constantly struggle with recruitment and retention, and—as Gallup has proven for the past decade or more—why they have been beleaguered by concerns around declining employee engagement.

Resilience is complex, subject to varied interpretations. It is perhaps one of the greatest puzzles of human nature.

Resilient people possess five key characteristics: the ability to control their response; proficiency at managing time and energy; deftness at consistent authenticity; finesse at maintaining meaningful connectedness; and a prevailing perseverance.

Resilience is something you typically realize you have after the fact, perhaps following a challenging experience. Yet it is most valuable when developed before the fact. You tend to underestimate its importance when things are going well, and you most sorely feel its absence when times are tough. Everyone needs

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resilience. It’s a virtue essential to growth and key to happiness and success.

It’s a fact that we’re living in disruptive times. Industries are collapsing, financial markets are imploding, oil and commodity prices are plummeting, and terrorism is shutting down major urban areas. Natural disasters like the recent hurricane Harvey decimated the Houston area, impacting hundreds of thousands of people and businesses alike. Preventing these hardships would be everyone’s first choice. But in an increasingly complex and volatile world, it’s impossible.

To survive and thrive, organizations must be purposeful, agile, tenacious and balanced. They must find a sustainable means to proactively protect their most valued assets and resources— their employees, to mitigate the risk of economic pressures and uncertainty and continue to innovate and thrive. “Today it’s become essential for companies (and individuals) to become more agile—not just in the face of the risks we know, but in the face of the ones we won’t see coming,” says Andrew Zolli, the executive director and curator of PopTech and the co-author (with Ann Marie Healy) of Resilience: Why Things Bounce Back.

The Arkansas Banker | September 2017

The key to not only surviving the events of today’s world, but to prosper is resilience. While human resilience may be thought of as a personality trait, in the aggregate, groups, organizations, and even communities can learn to develop a “culture of resilience” which manifests itself as a form of “psychological immunity” to, or the ability to rebound from, the untoward effects of adversity.

Resilience is more than survival. It is the ability of the individual and the organization to endure while remaining true to closely held values. Resilient people and companies do not only rebound from challenging circumstances; they seek out meaningful ways to learn from those experiences and build capacity for the future. They proactively cultivate the mindset, skillset and toolset necessary to weather any storm, rise up and stay relevant.

Hear more from Sandy Asch during the ABA Mega Conference Leadership track!

How to Retain Your Best People

by Trey Deupree, Equias Alliance & Bruce Johanson, The Johanson Group

You have invested heavily in recruiting and developing key and emerging leaders within your bank. We hear regularly from CEOs about the difficulty and cost of hiring or replacing positions such as lenders, compliance officers, BSA officers, private bankers, trust officers, wealth managers and financial executives in IT and treasury management. Your best people are being actively recruited by other organizations. Retention of these key employees is improved by having the right culture and by having the right compensation plans in place. While base salary and a bonus plan are a given, there are several other compensation strategies that should be considered.

Equias Alliance and Johanson Group can help you find the right solution for your bank. A normal approach to Executive Compensation is one of a long-range strategy that seeks to recruit, reward, retain and retire key personnel. When working with executive management positions, we determine each base salary’s last five year average amount before retirement at 65 and then use 70% to 80% of these amounts as a basis for retirement planning. We take these projected figures and subtract out any existing retirement plan funds (at retirement) such as 401(k), social security, etc. and the remaining balance is the amount that to be used to create various types of retirement offerings to close the gap. The following items are common to supplement an executive’s basic retirement plan: Employee Stock Option Program (ESOP) Bank Stock Granting Stock Appreciation Rights or Performance Share Plan Phantom Stock Bank-Owned Life Insurance Variable Life Insurance Salary Continuation Plan (Pays a flat amount annually at retirement for “X” number of years) The recruit portion includes a competitive base salary, health insurance, car allowance, club membership, paid time off for vacations, basic life insurance and other common benefits which most all other employees enjoy.

The reward component typically involves a formalized incentive compensation plan where three to five stretching goals or metrics are established and bonus dollars are paid one to two months after the performance period. The incentive compensation program that we prefer

includes four payout levels; threshold, target, target plus and target maximum. The payout range of the CEO is roughly 30% to 50% of base salary, 25% to 40% of base salary for the CFO, COO and CLO, and 20% to 35% for the next layer of management.

The retain and retire aspect typically includes a combination of the items above to close the gap between the 70% to 80% of final average pay and the current projected plan balances an executive would have through their 401(k) and social security. Many banks have implemented supplemental executive retirement plans (SERP) and/or Deferred Compensation Plans (DCP) to provide supplemental retirement benefits.

Nonqualified plans, whether SERPs or bankfunded DCPs, typically provide for forfeiture of benefits if the executive leaves and competes with the bank. If properly structured and presented, the plan can also restrict the executive’s ability to compete for a specified period after separation from service.

Forfeiture and/or non-compete provisions can be powerful tools in retaining your key officers over the long term and in enhancing growth and profitability. The goal of any institution is to keep the core team together and to supplement that team through hiring, training and recruiting.

Nonqualified plans can and should be tailored to the person and the circumstances rather than using a cookie-cutter approach.

Such plans are typically financed with bank-owned life insurance (BOLI), which can help offset and recover a portion or all of the expense. Even if the bank is not able to purchase enough BOLI to accomplish that objective, the incremental cost should be weighed against the lost revenue or cost that may result if one or more of the key team members leaves.

Hear more from Trey & Bruce during the ABA Mega Conference Bank Execs track!

Equias Alliance offers securities through ProEquities, Inc., member FINRA & SIPC.Equias Alliance is independent of ProEquities,Inc.

September 2017 | The Arkansas Banker

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Southern Bancorp is ‘Banking for the Good of the Community’ An Arkansas bank is being honored next month for its longstanding dedication to the communities it serves.

Southern Bancorp’s family of organizations – Southern Bancorp Bank, Southern Bancorp Inc., and Southern Bancorp Community Partners – will be presented with the 2017 Marie Civic Leadership Award on Thursday, October 19, at the Mosaic Templars Cultural Center in Little Rock.

Little Rock attorney William Waddell, who has been involved with the Marie Award for a number of years, explained that the recognition focuses on outstanding Arkansans who have made an impact on their communities and the state through civic service. When choosing honorees for the award, the group looks at topics that have had a positive impact on Arkansas as a whole, and investigate who best represents that sector in the community. This year’s focus is “Banking for the Good of the Community” and the honorees were chosen because of their Outstanding Community Reinvestment Act (CRA) rating and their work in community development.

“The work Southern does connects with the community. They bring a positive concept to banking,” he said, noting the revitalization efforts the bank and its subsidiary has funded in towns throughout the Delta. “Southern was a pretty clear choice to us once we did all the research.”

The idea behind Southern Bancorp was born from observations of a similar institution doing work in inner-city Chicago. Seeing a need that could be met, Bill Clinton, Rob Walton, the Winthrop Rockefeller Foundation, and others came together to build a financial institution to serve underbanked and distressed communities.

Southern Bancorp has a double-bottom line mission – as with all businesses, they strive to be financially successful, but their founding documents also set forth a standard for social change with a mission to create economic opportunity.

“We don’t measure ourselves simply by the dollars we make, we also measure the impact we have,” Williams said.

John Olaimey, President and CEO of Southern Bancorp Bank, took that statement a step farther, saying that the organization’s social mission is its competitive edge in the banking industry.

In a time when social responsibility has become in vogue, Southern continues to reach back to those roots and provide financial access to underserved and underbanked communities in Arkansas and Mississippi.

“You have to balance margin and mission,” added Karama Neal, COO of

What does Southern’s social mission entail? Williams laid it out in a list of what the Southern team calls “Big Hairy Audacious Goals.”

Over the next ten years, the organization wants to focus on three things: Supporting 10,000 people in home ownership, not just by making mortgages, but also by offering consumer education courses and other resources to help families sustain their home ownership.

Supporting the creation and retention of 100,000 jobs in the markets Southern serves by giving small businesses access to the capital and credit needed.

Empowering 1 million people to save.

The prevailing theme is to elevate the net worth of a community, not just through a dollar figure, but also providing

Southern works with the national program, Save for America, to teach savings habits early through their school banking programs.

MORE THAN A BOTTOM LINE

For Southern, this type of service is ingrained in the company culture, going far beyond CRA. “We’re honored to receive the award, but for us this is not a CRA-motivated effort. It really goes back to why we were founded,” said Darrin Williams, CEO of Southern Bancorp Inc. “Thirty-five years ago, well before their time, the founders of this organization were really all about doing good and doing well. They had a social mission. That’s who we are.”

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Southern Bancorp Community Partners.

“If you build up those communities, if those folks are able to have better jobs, are able to have disposable income, they’re able to do the kinds of things that a financial intermediary like a bank needs them to do. So that makes financial sense in the long term as well, to make those kinds of investments in the people in the communities where we are.”

The Arkansas Banker | September 2017

With financial and technical assistance from Southern Bancorp, Roger Perry was able to grow his one-man operation into a multiemployee detail shop, pictured with Southern’s Bill Wright.

Join us in celebrating

Southern Bancorp Community Partners and

Southern Bancorp Bank as they receive

The Marie Award

Thursday, October 19 5:30 p.m. at the Mosaic Templars Cultural Center 501 West 9th Street Little Rock with featured speaker

Julie Stackhouse

This event is free & open to the public. individuals with a higher sense of worth and a foundation for success.

“What we’re talking about is transformational change,” Olaimey said.

“It may be years before the seeds that we’re planting can change some of the generational poverty that we’ve seen in some of the markets that we serve…and I’m okay knowing that I might not see the fruits of my actual labors. I think that we’re taking the right steps and it takes time.”

EMPOWERING THROUGH EMPLOYEES

Part of what has made Southern successful in its social mission is the organization’s 380+ employees who are already invested in their communities – they are often longtime residents with a passion for serving their neighbors and friends.

“Something we’ve done very intentionally is empowering the people in our organization to provide things like helping people find good tax preparation services, helping them figure out what’s on their credit report, making sure they have good access to credit counseling if they need those things, so really empowering them at the local level to do that,” Neal said.

She went on to tell the story of a Southern employee who started at the bank during tax season – a time during which Southern offers Volunteer Income Tax Assistance (VITA) to income-eligible individuals. A longtime banker, this employee was able to re-envision her role within the community, and better serve her customers.

“I think it’s because people are in their communities, they care, they want to be able to help – now they have another set of tools in their tool box that they can pull out and they’re excited to do so,” Neal added.

Helping customers file taxes is just one of the services that Southern employees provide – they also delve into financial education including credit counseling and housing counseling; and have compiled a wealth of consumer resources on topics from saving and budgeting to watching for scams.

“Southern can attract employees who are really interested in running a profitable and successful bank – they’re interested in community banking, that’s what they want to do. You also can get people who are really excited about that mission.

What is The Marie?

The Marie Award recognizes outstanding Arkansans who have made a significant contribution to the advancement of the public interest by word, action, and example through interfaith engagement and civic service.

Previous Recipients

The Alex Blackwood Foundation #3people4life Amy Dunn Johnson, J.D. Vince Morris, J.D. Rev. Stephen Copley Sam Chaffin Gary Speed Cheif Kirk Lane Curt Bradbury Dr. Fitz Hill Sen. Joyce Elliott Click here to learn more about The Marie Award!

September 2017 | The Arkansas Banker

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By combining financial development services with lending, Southern was able to help this grandmother and public school employee realize her lifelong dream of homeownership.

institutions such as Southern Bancorp have embraced the principles of CRA, prompting activities and partnerships that promote access to credit for lowand moderate-income communities and foster development in these areas. Strong communities lead to strong banks, and strong banks are active in supporting the needs of the underserved in their communities.”

In addition to having an excellent CRA rating, Southern Bancorp is one of the nation’s largest Community Development Financial Institutions (CDFIs), a designation given to banks committed to providing the capital to rebuild economically distressed communities through targeted lending and investing.

Olaimey explained that other banks can also make an investment in a CDFI to receive CRA credit – it’s an additional way for them to help, and allows the CDFI to expand their reach, creating a win-win.

The organization’s quest for social change also includes a political element.

Because you bring those cultures together, there’s opportunity in that kind of mix that you don’t see in a lot of institutions,” Neal explained.

Olaimey referenced the next generation of bankers, noting that Southern is in the position to empower them by offering professional opportunities with a social cause.

“When I talk to the Millennials that call us, their first question is ‘hey, how can I help?’ This new generation is focused on how can we help people? That generation believes it, they’re passionate about it, and it’s sincere. We can provide that. We don’t just talk about CRA and talk about our mission, we live it every single day,” he said.

As the organization has grown, Southern continued to develop the company culture.

“Our people appreciate that social mission” said Nathan Pittman, Southern’s Communications Director. “Being a mission-driven organization takes a little more education and a little more understanding of employees to say ‘I’m

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a part of something that is committed – committed to changing our community and giving back and making it thrive.’”

“We really see ourselves as having four constituencies, of course the customers and the communities that we serve, and our shareholders, and our employees.

We spend a lot of time investing in our employees, and we spend a lot of time on this culture,” Williams said. “I believe culture trumps strategy every day. It’s built into everything we do, it’s constant.”

“We actively work with both Arkansas and Mississippi, and at the federal level with our legislators, trying to encourage them to look at, promote and pass policies that make it easier or even incentivize low-wealth people to save, to build themselves and move themselves from poverty to where they’re no longer dependent on tax dollars, but they’re actually productive tax paying citizens to help stimulate the economy,” Williams

BANKS INVESTING IN COMMUNITIES

Enacted in 1977, the Community Reinvestment Act was intended to encourage financial institutions to help meet the credit needs of the communities in which they operate, including low-and moderate-income neighborhoods.

“Without doubt, this dual responsibility can sometimes prove challenging. And clearly, the business of banking has changed significantly over the course of 40 years,” said Julie Stackhouse, Senior Vice President at the Federal Reserve Bank of St. Louis, who will also be speaking at the Marie Award ceremony. “Nonetheless,

The Arkansas Banker | September 2017

Southern is committed to entrepreneurs like the Gonzalez family, who after 14 years of working for the owners of the iconic Spudnuts Shoppe in El Dorado, had the opportunity to buy the business and continue the sweet legacy.

MEMBER NEWS

said.

Southern is currently working with a group of banks, community leaders, non-profits, and the Federal Reserve to implement a statewide initiative to Arkansas called Bank On, which would leverage municipal engagement to improve financial stability of lowand moderate-income households by embedding financial empowerment strategies into local government infrastructure. Programs like this encourage the under-banked to transition away from the use of alternative financial services such check cashers and payday lenders.

Southern encourages other banks to join in the efforts of social change by taking a look at their products and services, and evaluate whether those products can serve low-wealth people, or people who just don’t understand banking.

“It takes intentionality to work in a positive way... And that’s why just being a bank is not enough if you’re trying to make a difference,” Williams said. “You’ve got to have intentionality to make a difference. We’re investing to empower people – and we may not see the fruits of our labor, but this truly is an investment that hopefully over time will pay off.”

Click here to learn more about Southern Bancorp!

Arvest Bank Announces Acquisition of Bear State Arvest Bank recently announced it has entered into a definitive agreement to acquire Bear State Financial, Inc., the parent company of Bear State Bank. The acquisition, expected to close in the fourth quarter of 2017 or first quarter of 2018 pending customary regulatory approvals and subject to approval by Bear State shareholders, is an all-cash transaction valued at approximately $391 million.

Bear State Bank operates 42 branches and three personalized technology centers in Arkansas, Missouri and Oklahoma, while Arvest operates more than 250 branches in Arkansas, Kansas, Missouri and Oklahoma. As of June 30, 2017, Bear State had total assets of $2.24 billion and total deposits of $1.7 billion in 34 communities. As of June 30, 2017, Arvest had total assets of $17.30 billion and total deposits of $14.98 billion in 120 communities.

“This is a strategic move for us and one made after much careful consideration,” Arvest president and CEO Kevin Sabin said. “In addition to giving us the opportunity to expand into some new communities, this deal also allows us to strengthen our presence in some existing markets.

“Because Bear State is such a solid company with dedicated employees – and because both banks are so committed to their communities – we believe this will be a great fit.

From outstanding products and services to superior customer service, Arvest shares a lot of similarities to Bear State and we look forward to serving all of our customers – old and new – with the same courtesy, competency and care as we always have.”

Of the 34 communities where Bear State operates, 18 are markets where Arvest has banking operations while 16 markets will be new communities for Arvest – most notably communities in northeast Arkansas, southwest Arkansas, southern Missouri and southeast Oklahoma. Arvest Bank and Bear State customers will not notice any immediate changes, and both banks will continue to conduct business as usual. A full conversion of systems and accounts will occur in 2018, and Arvest Bank will be communicating with Bear State customers over the next several months regarding their transition to Arvest Bank.

Additionally, all those employed by Bear State on the date of contract closing will become employees of Arvest Bank.

New communities Arvest looks forward to serving in Arkansas are: Ashdown, De Queen, Dierks, Glenwood, Jonesboro, Manila, Monette, Mount Ida, Nashville and Waldron. Arvest will enter the communities of Golden City, Kimberling City, Lamar and Marshfield in Missouri, and Broken Bow and Idabel in Oklahoma.

November 27-28, 2017 The Robinson Center | Little Rock www.arkbankers.org/ABA/WomenInBanking.aspx

#WomenInBanking September 2017 | The Arkansas Banker

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MEMBER NEWS

Home BancShares Announces Stonegate Merger Approvals Home BancShares, Inc., parent company of Centennial Bank has received approval from the Federal Reserve Board and the Arkansas State Bank Board of its applications for the previously announced merger with Stonegate Bank.

Additionally, Home’s Form S-4 registration statement to register the shares of Home common stock to be issued to Stonegate’s shareholders in connection with the merger has been declared effective by the Securities and Exchange Commission.

“Approvals by the Federal Reserve and the Arkansas State Bank Board and the effectiveness of the registration statement permit us to move ahead with the merger in a timely manner,” said John Allison, Home’s Chairman. “Obtaining regulatory approval less than five months from the announcement of the merger is a testimony to our Company’s preparedness and strategic planning for the integration of Stonegate into Centennial. We are ready to provide our shareholders, customers and communities with the benefits from this merger.”

Under the terms of the agreement, Stonegate will merge into Centennial and shareholders of Stonegate will receive proceeds from the transaction of

approximately $749.8 million, consisting of approximately $50.0 million in cash and approximately $699.8 million of Home common stock. In addition, the holders of outstanding stock options of Stonegate will receive approximately $27.8 million in cash in cancellation of their options immediately before the merger, for a total transaction value of approximately $777.6 million.

The acquisition is expected to close in late September subject to Home and Stonegate shareholder approval. The respective Home and Stonegate shareholder meetings will be held on September 25, at Home’s headquarters in Conway, and at Stonegate’s headquarters in Pompano Beach, Florida.

“We are pleased to have gained the required regulatory approvals and look forward to closing this acquisition next month,” said Tracy French, President and CEO of Centennial Bank. “The systems conversion, scheduled for the first quarter of next year, remains on track and the conversion and integration teams continue to work closely together to provide a smooth and seamless transition. We are very excited to be able to meet all of our customer’s banking needs throughout the combined 89 locations in Florida, as well as throughout Arkansas and Alabama.”

Cornerstone Breaks Ground in Harrison Cornerstone Bank held a groundbreaking ceremony for its new branch on Friday, September 15 at 1426 Hwy 65, in Harrison.

“We are excited to begin construction on our highly anticipated project in Harrison.

The reception we have received thus far from the community since opening our temporary location has been encouraging; however, we look forward to construction of this new state-of-the-art banking facility where we plan to lay down permanent roots. As one of the faster growing community banks in Arkansas, we are thrilled to continue with our aggressive growth pattern and trust that our brand

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of true community banking, delivered by local bankers who you know and trust, will resonate with the citizenry of Harrison and the surrounding area,” said Charles T. Cross, President & CEO, Cornerstone Bank.

Cornerstone Bank, a 105-year-old, Northwest Arkansas-based financial institution with six locations throughout Carroll, Madison and Boone counties, has been expanding rapidly in recent years. The bank has been operating out of a temporary facility in Harrison since March of this year.

The location is the first in Boone County for Cornerstone.

The Arkansas Banker | September 2017

Arkansas Bankers Association

Salute to Veterans

The Arkansas Bankers Association is proud of the 20,000+ men and women who work within the Arkansas banking industry and the dedication they have to making our hometown banks successful. Many of those individuals have not only served their communities and banks, but also our country.

In the October issue of The Arkansas Banker, the ABA will be recognizing banker veterans, active and reserve military personnel, and families for their service, sacrifice, and contributions to our nation. We will also highlight our veterans and the banks who employ them throughout the month.

Please help us in compiling an accurate listing by submitting the names of banker veterans working in your bank to Traci Logsdon at traci.logsdon@arkbankers.org, no later than Friday, September 29, 2017.

ARKANSAS BANK DEPARTMENT

APPLICATIONS & APPROVALS

Merger Applications An application to merge Stonegate Bank, Pompano Beach, Florida, with and into Centennial Bank, Conway, Arkansas, has been approved.

August 17, 2017.

An application to merge First South Bank, Jackson, Tennessee, with and into Simmons Bank, Pine Bluff, has been approved. August 17, 2017.

Legislative Assistants:

Chip Bartlett, Congressman French Hill’s Legislative Director It is all about connections.

Congressman Hill’s new legislative director, Chip Bartlett, a Hot Springs native, traveled Arkansas during the August recess, meeting with bankers and forging relationships. One such stop occurred in the ABA board room to discuss legislation.

The conversation began with BSA/ AML and the marijuana issue, which, Chip admitted, is not being discussed right now because, according to those on the Hill in Washington, the federal agencies have to speak to the matter first. However, that does not mean to stop sharing examples of the trickle effect the legalization of marijuana has on Arkansas’ banking industry.

Chip asked for TRID stories; he needs as much detail and information as he can get regarding TRID. One banker declared TRID one of the most damaging pieces of legislation he had ever seen. Average home loans in his institution are $61,000. Another banker explained the customer service problems are even worse than the compliance costs.

From CRA issues to HMDA box checking and the need for CECL guidance for small banks, the discussion ran the gamut and Chip left armed with anecdotes, facts, and suggestions on how to alleviate the burdens community banks feel.

Please send customer stories to ava.roberts@arkbankers.org and they will be sent to Chip.

For contact information for any of our delegation’s bank legislative assistants, contact Ava at 501-978-3606.

Emerging Leaders The ABA Emerging Leaders Council met at the ABA office in Little Rock on Friday, September 8. Present at the meeting were, from top, John Anderson, Malvern National Bank, Little Rock; Ben Ridings, Bank of the Ozarks, Little Rock; John Bollinger, Simmons Bank, Fayetteville; Ryan Moore, Centennial Bank, Jonesboro; Eduardo Abril, First State Bank of DeQueen, DeQueen; Hunter Windle, Malvern National Bank, Malvern; Brandon Gentry, Cross County Bank, Wynne; George Purvis, Cornerstone Bank, Eureka Springs; Sandy Starnes, Citizens Bank, Batesville; Blake Johnson, Evolve Bank, Jonesboro; Blake Fletcher, Stone Bank, Little Rock; Rachael Schwartz, Farmers Bank & Trust, Texarkana; and James Lyle, McGehee Bank, McGehee.

Simmons Bank Completes First South Merger Simmons First National Corporation, parent company of Simmons Bank, has announced the completion of the merger of First South Bank, headquartered in Jackson, Tenn., with and into its subsidiary, Simmons Bank.

“Together with First South Bank, we offer increased regional size and strength, a more sophisticated product mix, and opportunities for our customers, associates and communities that wouldn’t be possible separately,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corp.

Simmons has approximately $9.1 billion in

assets, $6.2 billion in loans, $7.1 billion in deposits, 2,000 associates and more than 150 branch locations across Arkansas, Kansas, Missouri and Tennessee.

“This conversion was the culmination of countless hours spent by an outstanding group of associates dedicated to not only making this transition possible but also making it a success,” said Marty Casteel, chairman and CEO of Simmons Bank. “It was a team effort that requires the support of our entire organization, and we look forward to serving our expanded presence in western Tennessee.”

September 2017 | The Arkansas Banker

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MEMBER NEWS

Simmons Bank Announces Acquisition of Heartland Bank Through Public Auction Simmons Bank has announced that it was the successful bidder at a public auction of all of the capital stock of Heartland Bank, Little Rock. The auction was held August 28 in order to satisfy certain indebtedness of Rock Bancshares, Inc., Heartland’s holding company. As the successful bidder, Simmons is now Heartland’s sole shareholder.

“Heartland’s challenging circumstances have been well publicized over the past several months,” said Marty Casteel, Simmons’ Chairman, President and Chief

Executive Officer. “Simmons’ immediate goal is to create a stable environment for that bank to continue providing its customers with the products and services they need.”

Larry Bates has assumed the role of Heartland’s Chairman, President and Chief Executive Officer. “Larry is a fantastic leader with years of banking experience,” Casteel added, “and I am confident in his ability to manage the dayto-day affairs of this institution.”

Bates noted, “I am excited about this opportunity and look forward to joining with Heartland’s associates as we work to enhance the organization and service its customers.” Steve Wade and Lisa Hunter were also named Executive Vice Presidents of Lending and Operations, respectively.

Following the auction, Simmons and Heartland remain separately chartered state banks, although Simmons is evaluating its next steps with respect to the institution.

Consumers Prefer In-Person Option When Applying for a Mortgage Even as many banks rush to meet the digital demands of their customers and prospects, a majority of those customers still prefer to apply for a mortgage loan in person.

That is according to a recent survey conducted by the American Bankers Association. The survey indicated that while 61 percent of consumers say it is important for their bank of choice to offer mobile and online services for applying for a mortgage or making mortgage payments, an almost identical number – 60 percent – prefer to apply in person.

Conversely, only 17 percent said they would apply online. Another 23 percent were undecided.

“There are a lot of details and a lot of options to work through when applying for a mortgage loan, and many consumers want that added peace of mind that comes with walking through a big purchase with a financial expert,” said Eric Cullum, mortgage loan manager for Arvest Bank in Little Rock. “Consumers who are familiar with the process may choose to begin their application online, which is a

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very convenient tool; however, it’s good to touch base with a mortgage representative in person for the most comprehensive review of their mortgage needs at some point in case there are changes or options the applicant needs to be aware of.”

Perhaps surprisingly, the in-person preference held true across all age demographics in the AmBA survey. While the highest percentages of those who preferred face-to-face interaction were in the 55 to 64 (65 percent) and 65-plus (64 percent) age groups, those 18 to 29 (58 percent) and 30 to 44 (57 percent) favored the in-person process slightly more than those age 45 to 54 (55 percent).

Cullum said information surrounding a number of factors – such as qualifying, interest rates and types of mortgage loans – often is easier to obtain and understand with an in-person meeting. He said first-time homebuyers, in particular, may benefit from working with a mortgage expert to get pre-approved for a loan, before they begin their search for a home.

Pre-approval or pre-qualification makes first-time homebuyers better-equipped to

The Arkansas Banker | September 2017

meet with realtors or builders.

“Our goal is to not only serve as a lender but, equally important, to make sure our customers are successful in meeting their financial goals today and down the road,” Cullum said. “Their mortgage loan usually is the biggest piece of their overall, longterm financial plan.”

The AmBA study also identified some of the most common obstacles that deter consumers from applying for a home loan. Down payments, property taxes, maintenance and student debt were the most-cited factors.

All of those things, Cullum said, are why applying for a mortgage in person can be beneficial whether the buyer is purchasing their first home or their dream home.

“With long-term interest rates hovering around 4 percent, it’s still a good time to buy,” Cullum said. “And while we’re happy to meet prospective buyers in the digital space if that’s what they prefer, finding ways to overcome of these perceived barriers can be easier when we meet them face-to-face.”

BANKER NEWS & MOVES

I. Joe Miles Named Among A-State Distinguished Alumni The Arkansas State University Alumni Association has announced that Joe Miles of Mountain Home, retired Maj. Gen. James E. Simmons of Port St. Joe, Fla., and Beth Smith of Jonesboro have been named as the recipients of its 2017 Distinguished Alumni Awards.

The awards will be presented during Homecoming on Saturday, Oct. 14.

This is the 34th year the association has recognized the university’s most outstanding alumni, and each of the recipients has attained an outstanding record of professional and civic achievements, in addition to giving extraordinary support to Arkansas State.

“Congratulations to Joe, James and Beth for being selected as 2017’s A-State distinguished alumni,” said Margo Aufderheide Kagebein of DeWitt, president of the Alumni Association. “The Alumni Association’s board of directors selects the recipients annually, and these three individuals are certainly deserving, based on their professional achievements, community service and devotion to Arkansas State University.”

Actively engaged in community banking for almost 40 years since Joe Miles earned his Master of Business Administration from Arkansas State in 1977, Miles is currently president of Integrity First Bank of Mountain Home and a member of the Integrity First Bank board of directors.

Miles earned his Bachelor of Science in marketing from A-State in 1974, and since that time has served his alma mater as a member of the ASU Foundation Board of Directors from 1993-96 and again from 2009-present, including his role as chairman from 2014-16. A former member of the A-State Alumni Association Board of Directors and a 1924 Sustaining Life member, Miles is a member of the Board of Regents at the Barret School of Banking in Memphis, former chairman of the Arkansas State Police Retirement System Board of Trustees and past president of the Mountain Home Area Chamber of Commerce.

An Eagle Scout, a member of Sigma Phi Epsilon fraternity and former chairman of the Arkansas Bankers Association, Miles was described by his nominators as someone whose “commitment to the success of Arkansas State University is unquestioned,” and someone who “through his vision and leadership skills, has done an outstanding job of advancing the ASU System. In an increasingly complex arena, he has proven his ability to serve the needs of the public and to earn the trust of those he serves.”

Joe and his wife Kathryn have four children, Lynli, Evelyn, Emily and Elizabeth.

WESTON NAMED ASSISTANT VICE PRESIDENT AT CORNERSTONE BANK Jason F. Tennant, Executive Vice President and Chief Lending Officer, Cornerstone Bank, is pleased to announce the promotion of Landry Weston to Assistant Vice-President Loan Officer/ Credit Analyst/Appraiser at Cornerstone Bank in Berryville.

Weston’s current duties include lending, credit analysis and inhouse appraisal services for the bank. Tennant stated, “We are very pleased to have Landry in our bank’s family as he continues to handle all of his many duties with the utmost professionalism.

Landry works very hard for our clients and has earned this promotion. He has been an integral part of our rapid growth in the Eastern District of Carroll County.”

Landry is a Mississippi native and is a graduate of The University of Southern Mississippi. He has a strong background in sales and customer service. He and his wife Kim, along with his two children Isaac and Amelia, reside in Berryville.

SIMMONS BANK WELCOMES NEW SENIOR VICE PRESIDENT AND TRUST OFFICER Simmons Bank is excited to welcome S. Lee Rush, who will serve as senior vice president and trust officer for the bank’s wealth management group.

Rush joins the Simmons Bank family after 18 years serving in various roles with Regions Private Wealth Management.

Rush began his career at Regions in 1999 as vice president and trust officer for Regions in Little Rock. In 2005, he took on the role of vice president of business development. Two years later, he was promoted to senior vice president and Little Rock trust manager. Since 2012, he has served as the Arkansas area business manager. He brings to Simmons Bank his years of experience in leadership, professional development and administrative management skills.

Rush received a Bachelor of Arts degree in political science from the University of Arkansas in Fayetteville and graduated with a Masters of Public Administration from UA Little Rock. He was an honor graduate of the Arkansas Bankers Association Trust School, attended Cannon Trust School and is a graduate of the Little Rock Regional Chamber of Commerce Leadership Greater Little Rock Class XXVI. Rush has served on the boards of the Arkansas Repertory Theater, Historic Arkansas Museum, and Centers for Youth and Families.

He is former president and treasurer of the Central Arkansas Estate Council in Little Rock.

CAMERON STONE JOINS STONE BANK AS LENDING OFFICER Cameron Stone of White Hall has joined Stone Bank in White Hall as a lending officer.

Stone has held positions at Rabo Agri Financing and Centennial Bank. He completed his undergraduate degree in agriculture business, marketing and management and a master of science in agriculture economics from the University of Arkansas at Fayetteville.

September 2017 | The Arkansas Banker

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BANKER NEWS & MOVES SHANN CARPENTER PROMOTED AT FNB CROSSETT Gary Brannon, President & CEO of First National Bank of Crossett announced the promotion of Shann Carpenter to FNBC’s Board of Directors and to the position of Executive Vice President, CFO & COO. “Shann has served an integral role in the financial and operational operations and is now being rewarded for her hard work, dedication and professionalism,” said Brannon.

Shann’s leadership has helped transition FNBC’s day-to-day operations and efficiencies into a high performance bank.

Brannon states, “We are just getting started with the forward progress of FNBC and Shann will help us lead the way with her newly appointed promotions.”

Carpenter is 1998 graduate of Crossett High School and obtained her BBA degree in Accounting from the University of Arkansas at Monticello.

She is a 2016 graduate of the Graduate School of Banking at LSU. Shann serves as President of the Greater Crossett Area Food Pantry, Past President and current Treasurer of the Kiwanis Club of Crossett, Treasurer to the Ashley County Single Parent Scholarship Foundation, and Treasurer of Crossett Area Chamber of Commerce. Mrs. Carpenter was 2013 Kiwanian of the Year and 2016 Director of the Year for the Crossett Area Chamber of Commerce. She and her husband Shawn reside in Fountain Hill and have two sons, Eric and Kyle.

Dr. Ben Walsh, Chairman of the Board of First National Bank of Crossett stated, “The Board of Directors is extremely pleased with the addition of

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Ms. Carpenter to its ranks. Her business and leadership skills will prove of great value and assistance to the Board as FNBC continues their mission to provide a broad range of financial services to individuals and businesses in Ashley County.”

HOLLIS PROMOTED AT FIRST NATIONAL BANK OF CROSSETT Gary Brannon, President & CEO of First National Bank of Crossett announced the promotion of Cody Hollis to the position of Senior Vice President & Senior Lender. “Cody is a tremendous asset to FNBC as his contributions to the lending department are based on his excellent customer service, his leadership and supervision of our loan department administration as evidenced by FNBC’s growing and quality loan portfolio”, Brannon says.

Cody, along with all lending staff employees, have converted FNBC’s loan department into a high performing, quality, efficient, growing and user friendly department.

Brannon also states “FNBC is the market leader in Ashely County with products, services and contributions to our growing bank family. Current management recognizes Cody’s potential and this promotion reflects our confidence and trust in Cody to be all that he can be and this added level of leadership will continue to add value and quality to each FNBC’s customers that they expect and deserve.”

Cody, a Fountain Hill native, graduate of Trinity Christian Academy and the University of Arkansas at Monticello with a Bachelor of Business Administration, with an

The Arkansas Banker | September 2017

emphasis in Finance. FNBC is proud to say that Cody recently completed his graduate banking degree at the Graduate School of Banking in Colorado, which will continue to elevate his banking skills. Cody is also a recent Employee of the Year at FNBC and serves on the Ashley County Skilled Word Center Board of Directors.

ANGELA CARPENTER PROMOTED AT FNB CROSSETT

time, she enjoys spending time with her family. She and her husband Jamie reside in Crossett with their two sons, Lane and Jayce, and daughter, Aydan.

STONE BANK ANNOUNCES FOUR PROMOTIONS Stone Bank announced four promotions at two locations.

Gary Brannon, President and CEO of the First National Bank of Crossett announced the promotion of Angela Carpenter to Vice President, Deposit Services following the July board meeting. “Angela represents the tenacity and work ethic that has made this institution great, and we are very excited about her promotion and her continued contribution to the Bank. She represents a new generation of bankers at FNBC – strong customer service skills and efficient application of technology in a community bank,” said Brannon.

Carpenter began her banking career with First National Bank of Crossett in 2006 as a teller at the main bank. She transferred to the Customer Service Department as a Customer Service Representative in 2009, was named Customer Service Manager in 2012, and in 2015 was promoted to Deposit Services Officer. Mrs. Carpenter, a Wisconsin native, is a graduate of Freedom High School. Prior to joining FNBC, Angela worked in the construction industry assisting with cost management of projects. She graduated from the Barret School of Banking in 2016 and has attended numerous Arkansas Bankers Association Schools. In her spare

Cannon

Straessle

Smith

Sutterfield

Shelia Cannon, a customer service representative at the bank’s White Hall location has been promoted to Vice President; Sandy Straessle, customer service representative in Little Rock has been promoted to Assistant Vice President; Heather Smith, a customer service representative at the bank’s Mountain View office to Assistant Vice President and Teresa Sutterfield, Customer service representative in Mountain View to Assistant Vice President.

Stone Bank has offices in Little Rock, Mountain View, Harrison and White Hall.

Submit your bank’s Banker News & Moves to traci.logsdon@arkbankers.org.

INDEX OF ADVERTISEMENTS

Life Legacy: Warren Jennings, Sr.

American Bankers Assoc.

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BKD, LLP

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www.aba.com

www.bkd.com/fs

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.

Warren A. Jennings, Sr. of DeWitt, Arkansas, departed this life August 11, 2017. Born May 14, 1940, in Washington, D.C. where his father was stationed during the war. He was the son of the late Larkin Hamilton Jennings, Jr. and Mary Wallis Arthur Jennings of Union, South Carolina.

Mr. Jennings was a graduate of Georgia Military Academy, the Citadel in 1962 and from the University of South Carolina School of Law in 1965. He practiced law with his father in Union, South Carolina, for four years before moving to DeWitt.

Mr. Jennings served as President, Chairman of the Board and Director of Arkansas County Bank in DeWitt and on the Governor’s Task Force to revise the Arkansas State Banking Code. At the time of death he was a member of the DeWitt Rotary Club, where he was named a recipient of the Paul Harris Fellow Award, Chamber of Commerce, President of the Arkansas County 4-H Foundation, served on the Phillips County College/UA DeWitt Foundation Board and was a former member of the DeWitt Hospital and Nursing Home Board.

“It would be impossible to name everything he did for the City of DeWitt and surrounding area” is a quote from the DeWitt Era-Enterprise in February 2014 when he was chosen as DeWitt’s “Citizen of the Year.” Warren was known to always participate to the maximum effort and without credit for his efforts.

Mr. Jennings was predeceased by his father, mother, a sister, and a brother. He is survived by his wife, Mary McKinley Jennings, a son Warren A. Jennings, Jr. of DeWitt, a daughter, Mary Jean Jennings Johnston of Memphis, Tennessee; and six grandchildren, Carole Frances Jennings, Sara Wallis Jennings, Robert McKnight Johnston III, Warren Arthur Johnston, Mary Asher Johnston and Ann Grier Johnston.

The Arkansas

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

SMART CREDIT STARTS WITH YOU This October, take advantage of the opportunity to join the thousands of volunteer bankers participating in the national Get Smart About Credit campaign. Raise your bank’s profile in the community while bringing lessons of sound money management to young people.

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The Arkansas Banker | September 2017