KENTUCKY BANKER MAGAZINE Published bi-monthly by the Kentucky Bankers Association
YOUR ASSOCIATION OUR COMMONWEALTH
JULY/AUGUST 2017 IN THIS ISSUE
Ready to PARTY ON THE MOON at the 126th Annual Convention? See the story on page 31 if you are.
2016-2017 OFFICERS Chairman Mr. Michael H. Mercer President & CEO First State Bank
Vice Chairman Mr. Timothy E. Barnes President & CEO Hometown Bank of Corbin
Treasurer Mr. David M. Bowling, CEO Citizens Union Bank of Shelbyville Past Chairman Mr. Louis Prichard President & CEO, Kentucky Bank President & CEO Mr. Ballard W. Cassady, Jr. Kentucky Bankers Association
BOARD OF DIRECTORS Group Representatives
Representing Group 1 Mr. J. Brent Bugg President & CEO, Fredonia Valley Bank Representing Group 2 Ms. Lanie W. Gardner Community President First Southern National Bank Representing Group 3 Mr. John T. Taylor President & CEO, PBI Bank
Representing Group 4 Mr. Dan M. Harbison President & CEO The Farmers National Bank of Scottsville
Representing Group 5 Mr. Lloyd C. Hillard, Jr. President & CEO, Farmers Capital Bank
Representing Group 6 Mr. Bill Allen President, Bank of the Bluegrass and Trust Representing Group 7 Mr. Gordon Kidd CEO, United Cumberland Bank
Chairman’s Corner.............. 5 Staff Directory..................... 6 Straight Talk........................ 7 My Two Cents..................... 9 CRA Partners...................... 11 United Bank........................ 14 Banker Appreciation Golf... 16 Emerging Leaders............... 21 The Murray Bank................ 24 OCCH.................................. 25 Email Security..................... 27 findCRA a Finalist............... 29 Bert Ely............................... 32 Education Calendar............. 34
Representing Group 8 Mr. Mike Mineer President & CEO Citizens Deposit Bank & Trust
ON THE COVER
Natural bridges are all over the place in Slade Kentucky. They are also here at the KBA where we join you with the best products and service out there.
Representing Group 9 Mr. Jed Weinberg Chairman, Bank of Hindman
Representing Thrifts Mr. Ryan Curtis Steger Regional President, Town Square Bank
Representing Thrifts Kari R. Gough President & CEO, Winchester Federal Bank
Representing Bank Size
Assets of $1B or more Mr. James A. Hillebrand, President Stock Yards Bank & Trust Company
Assets at least $200M; less than $1B Mr. Dale Sights President, Field & Main Bank
KBA Benefits Trust Mr. W. Fred Brashear, II President & CEO, Hyden Citizens Bank
Kentucky Bankers Association 600 West Main Street, Suite 400 Louisville, Kentucky 40202 www.kybanks.com
Kentucky Banker Magazine (KBM) is the official bi-monthly periodical of the Kentucky Bankers Association (KBA). No part of KBM may be reproduced without written permission from the KBA. The KBA is not responsible for opinions expressed by outside contributors published in KBM. The KBA reserves the right to publish submissions at the discretion of the KBM editorial team. Subscriptions: $30/year for KBA members; $60/year for KBA non-members; single copies $5 each. SUBMIT
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CHAIRMAN’S CORNER
DODD-FRANK AWARENESS CAMPAIGN
Mike Mercer | Chariman Kentucky Bankers Association
DON’T TRID ON ME Well, it’s happening, Dodd-Frank is about to end my lending career. After 36 years in banking, they (CFPB) have finally broken me. When I think back over my career, it is amazing the changes I have seen, nearly as many as my grandparents who went from using the restroom in an outdoor box, getting water out of the ground, reading by candle light, no television at all then using me as their antenna and human remote to indoor flushing porcelain seats, running water, electricity AND the most important ... cable TV with remote control. Not to mention computers and all that technology stuff. In banking, I’ve seen the end of sending checks back in statements, the start of debit and credit cards, ATMs, closing the books truly meant “closing the books,” direct deposits, ACH bill payments, the end of the proof machine, mobile banking, online banking and then there are the regulations!!
Let’s take lending, I now have to consult a compliance team to close a mortgage loan, thanks to both Dodd and Frank. You have 3 days to send pre-disclosures then 7 days to let the customer ponder the situation, then comes the appraisal and 3 days waiting and then closing disclosures and 3 days waiting and do you count Saturday or not? I don’t know and I don’t care, but TRID cares so I have to care, all in the name of protecting the customer, who cannot understand why in the world they have to wait so long to close their mortgage loan. The implicit message is: “It’s for your protection.” The explicit message is: “You’ve been TRID-ed!!!” Oh, how I long for those good ole days, when we could close a mortgage loan in a matter of days, when a consumer loan required one sheet of paper, when a tree didn’t have to give its life for a mortgage loan closing. The enormous amount of paper we bankers go through. Why doesn’t the EPA get involved with this destruction of the environment? Wouldn’t that make for a great movie, The CFPB meets the EPA or the Washington version of Godzilla meets King Kong! JUL/AUG 2017
I don’t know about you but I have had enough. It’s time to fight back or go home. This could be our Alamo. We, as bankers, must come together to make a stand. The environment in Washington, while not perfect, is in our favor. Every representative, Democrat and Republican, says they want to help the community banks. It is time to hold them to their word and get a bill passed to remove the shackles of Dodd-Frank. When you are asked to help, whether it be to contact your representative, go to Washington or write a check to KBPAC, I beg you for your support. Get involved and let’s make a difference. It’s now or never. This makes two columns in a row I have written about Dodd-Frank but there isn’t anything in banking more important to me. I hope it is for you. We are close to seeing some relief so we cannot let up. Let’s see this to fruition. I’m tired of walking around with TRID marks on my back. How about you? 126TH CONVENTION APPROACHING SEE PAGE 31 On a more positive note, our 126th convention is just around the corner, September 24th - 27th, at the beautiful Grove Park Inn in Asheville, North Carolina. Golf, spa, great food, excellent speakers and in step with the upcoming eclipse, Party on the Moon will entertain on banquet night. I fully expect to see a dancing bear on the floor. Please don’t miss out on the excitement. There will also be some banking discussed. I hope to see you there. NEW ADDITION TO MY FAMILY My family and I have had an exciting time the past couple of weeks. My daughter had her first child, a 9 pound, 6 ounce, 22 and one half inches long, baby boy. Ryder Dillingham. Both my daughter and grandson are doing well and I thank you for all the well wishes I received. It is truly a blessing. KENTUCKY BANKER | PAGE 5
KENTUCKY BANKERS ASSOCIATION STAFF 22 EMPLOYEES WITH 300+ YEARS OF COMBINED EXPERIENCE SERVING THE COMMONWEALTH
Ballard W. Cassady Jr. President & CEO bcassady@kybanks.com
Michelle Madison IT Manager mmadison@kybanks.com
Debra K. Stamper EVP & General Counsel dstamper@kybanks.com
Tammy Nichols Convention Coordinator Finance Officer, HOPE of KY tnichols@kybanks.com
Matthew E. Vance Chief Financial Officer mvance@kybanks.com Selina O. Parrish Director of Membership sparrish@kybanks.com Natalie Kaelin Director of Education nkaelin@kybanks.com Josh L. Fischer Director of Communications jfischer@kybanks.com Billie Wade Executive Director, HOPE of KY bwade@kybanks.com Miriam Cole Executive Assistant mcole@kybanks.com John P. Cooper Legislative Solutions jcooper@kybanks.com Paula Cross Education Services Coordinator pcross@kybanks.com Jamie Hampton Education Services Coordinator jhampton@kybanks.com Casey Guernsey Enrollment and Billing Specialist cguernsey@kybanks.com
Katie Rajchel Staff Accountant krajchel@kybanks.com Angie White Sponsorship Relations awhite@kybanks.com Steve Whitlow Systems Engineer swhitlow@kybanks.com Chuck Maggard President & CEO, KenBanc cmaggard@kybanks.com Lisa Mattingly Director of Sales & Service KBA Benefits Solutions lmattingly@kybanks.com Brandon Maggard Account Representative KenBanc Insurance Services bmaggard@kybanks.com Donna McCartin Benefit Support Specialist dmccartin@kybanks.com Audrey Whitaker Insurance Services Coordinator awhitaker@kybanks.com Robin Graf Compliance Officer rgraf@kybanks.com
STRAIGHT TALK
DODD-FRANK AWARENESS CAMPAIGN
Ballard W. Cassady, Jr. | President & CEO bcassady@kybanks.com
Finally, We Have Momentum
What we are seeking is providing relief for our community banks in a safe and effective way. The political and financial landscape is ready, in a way that it hasn’t been before, to make positive and sweeping changes for our member banks and our communities, as well as Kentucky’s small businesses and consumers. We are seeking regulatory relief for our community banks, in a safe and effective way. And, we have momentum. Republicans, who have long recognized the need for a strategy of sound and prosperous business and financial services in every community across the country, have secured the majority in the House, the Senate and the Administration. While a simple majority doesn’t necessarily get things done in Washington, we now have an added benefit of support from unexpected places and people. For example: • Former Representative Barney Frank, one of the co-sponsors of the regulatory burdens put in place seven years ago, has expressed his opinion that the DoddFrank Act may be too broad in its application to regional and community banks. • Sheila Bair, former FDIC Chair, who was very supportive of Dodd-Frank when it passed, has stated that many provisions in Dodd-Frank could be simplified, allowing the burdens on community banks to be eased.
• Current FRB Chair Janet Yellen, immediately after publication of the Treasury’s report, expressed her agreement with the regulatory relief as expressed in the document. • Perhaps most notably, Senator Elizabeth Warren has indicated that she and other Democrats are supportive of regulatory relief for community banks. This is not the least of why almost every one of my counterparts is now reporting that their Democratic Senators would support a community banking relief bill.
Some others have suggested that mobile and electronic banking will fill the gaps as community banks disappear, but that argument ignores the fact that many Kentucky communities still do not have reliable access to the internet or, in extreme cases, no access at all. But more importantly, these impersonal services cannot possibly KNOW the needs of a Kentucky community. You have to know your community in order to serve them, so an app or website can’t be there for its community when it needs them. As this issue of our magazine shows on several pages, mobile or electronic banking cannot present checks to local charities.
KBA members well know, Kentucky’s communities, especially those in rural areas, are dependent upon the services of community banks. Wall Street is not interested in serving cities like Hyden, Pleasureville or Brownsville, • Current FDIC Vice-Chair Thomas Hoenig has given nu- Kentucky—community banks are. Community banks in merous speeches and published white papers on the ur- Kentucky are not described in terms of billions of dollars in gent need for regulatory relief for community banks. assets, but in millions. The average asset size of Kentucky chartered banks is less than $400M. Our banks know our • Current Treasury Secretary Steve Mnuchin recently communities and their customers in a way Wall Street nevreleased the Treasury’s report, in response to Executive er will. Order 13772, expressing in detailed terms the need for immediate community bank regulatory relief. Addition- Our Commonwealth is served and supported by our comally, the Treasury’s report was created with input from munity banks offering traditional services in good times a broad cross section of groups, agencies and advocates and in bad. We have lost over 30 banks in the last ten years, for various groups. continued on the next page
JUL/AUG 2017
KENTUCKY BANKER | PAGE 7
STRAIGHT TALK | Ballard Cassady, KBA President & CEO continued FROM THE PREVIOUS PAGE
not due to safety and soundness issues, but due solely to the cost of unnecessary and burdensome regulation. Consolidation resulting from regulatory burden, rather than market forces, results in loss of loyalty and commitment from our cherished communities. Everyone in Congress understands Dodd-Frank is undermining communities and community banks. We’re fighting every day for communities here in Kentucky, and the momentum we are starting to experience is stronger than we have seen since July 21, 2010 when Dodd-Frank was signed into law. So along with the signs we are starting to see with the positive momentum toward our regulatory relief goals, we are going to press the advantage with our own signs. We are actively distributing signs, like the one pictured at right, to member banks in Kentucky who want to communicate to their customers, along with state and federal elected officials who come in to your bank, how the Dodd-Frank Act has impacted your ability to serve your community. (The details are below on how to get your free sign.) I strongly encourage you to put these signs in your lobbies and join our efforts to get lasting regulatory relief for Kentucky’s traditional banks and the communities they serve.
DODD-FRANK AWARENESS CAMPAIGN The KBA is introducing its Dodd-Frank Awareness Campaign. This initiative includes three strategies designed to alert your communities about the harm caused by Dodd-Frank. 1) Dodd-Frank Sign: The first and most noticeable tool is our lobby sign, shown above. This sign will alert everyone who enters your bank how long this law has burdened your customers, down to the day! As of July 21, 2017 (which marked the 7-year anniversary of Dodd-Frank’s signing in to law) it has been 2,557 days since Dodd-Frank put Kentucky’s communities in Jeopardy. In the top left-hand corner of the sign there is a rectangle where you can write in, with a standard dry-erase marker, the number of days since it was signed.The daily number is posted on www.protectkycommunities.com. The Dodd-Frank Sign is sturdy and designed to be easily mounted on an easel display, or elsewhere with 2-sided adhesive. KBA staff will be on the road delivering these signs over the next few weeks. If you would like one sooner, email jfischer@kybanks.com with
your bank name, primary contact and bank address and we will arrange to get you a sign ASAP! The first sign is at no cost to your bank. If you would like additional signs for other locations, just let us know and we will provide those at cost. 2) Dodd-Frank Brochures: Each sign will be delivered with 25 color brochures explaining Dodd-Frank consumer issues to customers who want more information. If you need more brochures let us know and we will send you an additional 25 brochures.
www.protectkycommunities.com 3) Dodd-Frank Website: The Dodd-Frank sign and brochure also directs your customers to a website. You can link this website (www.protectkycommunities.com) on your bank’s website, or load it onto an in-branch monitor. You can also link any of this information to your bank’s social media! Check out our Facebook page for posts @kybankers
MY TWO CENTS
DODD-FRANK AWARENESS CAMPAIGN
Debra Stamper | General Counsel & EVP
dstamper@kybanks.com t @KBADebra
Do I See a Light at the End of the Tunnel? (Or, is it another train?) We have been reeling from the blows of the Dodd-Frank Act for almost a decade (has it really been that long?) and I feel like I see a glint of a light at the end of the tunnel, but it seems that the regulations just keep on coming. But, let’s not forget that some things have been leaning in our direction. For instance: • Most recently, in July 2017, a Kentucky federal district court clipped the CFPB’s wings by specifically providing that settlement service providers are entitled to rely on the express safe harbor created by RESPA Section 8(c)(4), as a matter of law. The CFPB had wanted to impose other considerations in the court’s determination as to whether the affiliated business arrangement was a sham. • The federal regulators have decided to increase the value for which appraisals are required in certain commercial transactions. • Congress has finally decided to start using the Congressional Review Act to challenge some of the CFPB’s rulemaking, specifically on its overly broad prohibition of arbitration clauses. • Acting Comptroller of the Currency pushes back on regulation, including CFPB’s arbitration rule. • The Treasury Department issued a detailed white paper of recommended reforms for the benefit of community banks and challenged the current CFPB structure as allowing “regulatory abuses and excesses.” • A North Dakota federal court also took a jab at the CFPB and their continuing appetite to broaden the application of UDAAP. In this instance, the court indicated that the CFPB’s pleadings were insufficient in pleading specific facts to allege the elements necessary to their challenges. JUL/AUG 2017
• The DC federal appellate court had earlier chided the CFPB for “rewriting” laws and regulations through interpretive rulings, but more importantly ruled that the creation of the CFPB violated the separation of powers protection of the U.S. Constitution. • The U.S. Supreme Court unanimously affirmed that a company that collects its own debts, even if those debts are purchased from another entity is not a debt collector under the Fair Debt Collections Practices Act. • Significant regulatory reform has been given a second chance under the new administration. There are other items, as well, that indicate that the current may be slowing down ever so slighting, even if it is not yet near reversing. This trickle of positive news does not relieve the pressure you feel in attempting to maintain safety and soundness and compliance in a world that has established unreasonable and unwarranted expectations. But, it does offer pause. Now more than ever it is more important to provide Washington with our feedback. We must comment on regulations, existing and proposed, when they do not make sense…or, as many do, create more problems than they cure. We also need to continue to confront our legislators to ensure that they understand the need for strong, viable community banks. continued on the following Page
KENTUCKY BANKER | PAGE 9
MY TWO CENTS | Debra Stamper, KBA General Counsel & Executive Vice President continued FROM THE PREVIOUS PAGE
Watch for Calls to Action (designated by the exclamation mark icon badge above) from the Kentucky Bankers Association and take ACTION when asked. This is our chosen industry and it is worth the fight.
Solar Eclipse >>> And, on another note, I hope that you take a moment on August 21 to step outside (if you are in the path) and experience the solar eclipse. This is the first time a solar eclipse has tracked the entire width of the US since 1918. The last solar eclipse to even be visible from the continental US was in 1979. And, while the total eclipse lasts less than three minutes at its peak location, experts indicate that it is a once-in-a-lifetime experience that should not be missed. Get your glasses and head out to see what all the hubbub is about. Amazingly, the US will see another total solar eclipse in 2024, but Kentucky won’t see much of that one.
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KENTUCKY BANKERS ASSOCIATION
CRA Partners Help Springfield State Bank’s Senior Crimestoppers Program On July 12 two charter presentations were conducted for Springfield State Bank’s sponsorship of the Senior Crimestoppers Program through CRA Partners.
TESTIMONIAL Because Springfield State Bank is locally owned, our bank focuses on giving back to the local community in the form of loans and other financial services to help our community grow. With our sponsorship of the Senior Crimestoppers Program at Springfield Nursing & Rehab Center and Sansbury Care Center, we want our senior citizens, who are the foundation of this community, to have the best care possible in a safe environment. We are proud to be giving back to our community through the loan and investment opportunities provided through CRA Partners.
Christy Carpenter Executive Vice President and Chief Technology Officer, Springfield State Bank, Springfield, KY
JUL/AUG 2017
The first charter presentation took place at Springfield Nursing & Rehab Center in Sringfield, KY; pictured above Christy Carpenter (left) of Springfield State Bank and Austin Gipson (right), Administrator with Springfield Nursing & Rehab.
The second charter presentation at Sansbury Care Center in Saint Chatharine, KY; Christy Carpenter (left) and Ms. Pamela Brooks (right), Administrator with Sansbury Care Center. KENTUCKY BANKER | PAGE 11
KENTUCKY BANKERS ASSOCIATION
Citizens Union Bank Holds Official Ribbon Cutting of Middletown Banking Center
BANK SHOTS! BANK SHOTS! highlight you, the members of the KBA, and the banks you work for. Formerly Bankers on the Move and Bank Happenings, BANK SHOTS! is where we publish your successes and acknowledge your milestones. Email your BANK SHOTS! jfischer@kybanks.com
RAY LEATHERS
Citizens Union Bank, Shelbyville, KY, held the official ribbon for their newest banking center located at the corner of Shelbyville Road and the Gene Snyder Freeway, in Middletown, KY, across from Middletown Station, on Tuesday, June 20th. They officially opened their doors and closed their previous Middletown branch location which was located just across Shelbyville Road on Monday, June 19th. Debbie Prewitt, CUB Louisville Market President, said, “Strategically we concluded that relocating the branch to the new location would be a huge benefit to our customers. Shelbyville Road is the main corridor from Shelby County into Jefferson County, which just made sense, and the new site is much more visible and easier to get to. We are excited to be moved in and for everyone to see the new innovative style.” David Bowling, CEO, of Citizens Union Bank, stated, “In today’s banking world customers want high tech and high touch. This new banking center offers both and was specifically designed with the customer experience in mind. The traditional teller line is gone and instead there are ‘pods’ where customers can do all of their banking in one spot. The interior has a completely new look and feel and emphasizes our Delivering Banking ‘Beyond Expectations’ branding. We are also extremely excited about the exterior design which is an entirely new look for our Bank.” PAGE 12 | KENTUCKY BANKER
The Board of Directors of Citizens Union Bancorp, Shelbyville, KY is pleased to announce that Ray Leathers has been elected to serve as Director of Citizens Union Bank (CUB). Leathers is an 18-year veteran of military service where he became a decorated officer in the US Army holding two commands being awarded the Army Achievement Medal, two Army Commendation Medals, and the Army Meritorious Service Medal. Mr. Leathers is recognized by professional associations throughout the U.S. as an innovative leader. He was awarded the 2010 Manufacturing Employee of the Year by the Kentucky Association of Manufacturing and in 2012 he was presented the Shelby County Distinguished Citizen Award by the Boy Scouts of America. “We are very excited to add someone of Ray’s caliber and background to our Board. He is a talented business leader and tireless community servant.” said David Bowling, CEO of Citizens Union Bank. FACEBOOK #kbabankshots
BANK SHOTS! #kbabankshots
PAIGE THOMAS First Kentucky Bank’s Deposit Operations Supervisor, Paige Thomas, was recently awarded a diploma for the General Banking School with the Kentucky Bankers Association (KBA). Thomas, of Hickory, Ky., has worked at First Kentucky since 2010 and recently completed this program alongside 42 other bankers from across the state. The KBA organizes the school into one-week sessions each year. The program also requires participants to complete an intersession exercise between the two years. Thomas, who works at the main First Kentucky Branch in Mayfield, Ky., said, “One thing that sticks with me after GBS is that what may seem like a small change can have a huge impact. I now have a greater appreciation for those that make these difficult decisions daily that have led to First Kentucky’s success.” Stacy Aldridge, Senior Operations Officer at First Kentucky Bank, said, “General Banking School prepares our employees for future career advancement by providing them with a fundamental understanding of how the bank is managed.”
KENTUCKY BANKERS ASSOCIATION
FNB Donates to Local Schools with Spirit Debit Card Program FNB Bank donated over $6,800 back to Mayfield and Graves County Schools through their Spirit Debit Card Program. These donations to the schools are a result of FNB’s 2nd quarter Spirit Debit Card Reward Program. The Spirit Debit Card Rewards Program allows FNB and their customers to give back to their local schools when they use their FNB debit card. FNB currently offers Spirit Debit Cards for Mayfield, Graves County and Trigg County Schools. The Spirit Card works like a traditional debit card and for each signature based transaction (not using your PIN), FNB donates $0.10 to the corresponding school. “We are proud to offer our exclusive FNB Spirit Debit Card Program to our local schools,” stated Brooke Wiles, FNB Marketing Director. “Our customers have pride in knowing that they are making a difference in the lives of our youth by simply swiping their Spirit Debit Cards at the checkout. The donated funds allow the school systems the opportunity to do more for their students and staff, which is an invaluable asset to our community.”
MONNA TREADWAY
Central Bank announced Monna Treadway was promoted to Vice President, Mortgage Lending. She began her career at the bank in 2014 and has 13 years of mortgage lending experience. KENTUCKY BANKER | PAGE 13
KENTUCKY BANKERS ASSOCIATION
United Bank Fosters Community Growth Fostering growth in the communities we serve is important to United Bank. Marilyn Ford, Chief Retail Banking Officer and Heartland Region President, is shown below presenting a check
to CASA of the Heartland to help the organization continue its work in Hardin County. Also shown in the photo are Rose Harris, Debra Smith, and Natalie Cubbage representing CASA.
Marilyn Ford, United Bank Chief Retail Banking Officer and Heartland Region President, below presents contributions to Hardin County Habitat for Humanity and the Elizabethtown Po-
lice Department Foundation to help these organizations continue the work they do in Hardin County. Fostering growth in the communities we serve is important to United Bank.
Pictured: Sharon Thompson, Marilyn Ford (United Bank), Scott Turner PAGE 14 | KENTUCKY BANKER
Pictured: Carl Bee, Marilyn Ford (United Bank), Chief Tracy Schiller, James Watson (United Bank) JUL/AUG 2017
KENTUCKY BANKERS ASSOCIATION
Paducah Bank Supports its Community
Paducah Bank President Mardie Herndon presented an $8,000 check from the Bank’s Swipe and Serve program to Ricky Burse, Executive Director of New Pathways for Children this morning. “We’re very appreciative and grateful of the support from the bank and all of our partners throughout the community,” said Burse. “I think they get it. They understand that this is a partnership between all of us. We’re in the trenches. We’re on the
ground with the children, but they’re the supply line. If they weren’t there with the support, help and recourses, we couldn’t do what we do.” More than 750,000 Kentuckians, or 17% of the state’s population, do not always know where their next meal will come from. Almost one in four of Kentucky’s children lack consistent access to enough food for a healthy, active lifestyle. Paducah Bank is working to change that statistic.
Paducah Bank President Mardie Herndon and Socially Present owner Jonas Neihoff presented a $2,000 check this morning to Nathan Torian for the Operation Enduring Freedom. The two companies lifted up the story of Paducah’s MSGT Aaron Torian on social media on Memorial Day as a way to raise funds to honor him and others who have given their lives in the Global War on Terror. The $2,000 donation takes Nathan over the half-
way mark of the final $15,000 needed for the completion of the memorial. “Memorial Day is often a difficult day for so many people who mourn the loss of their loved ones,” said Neihoff. “Nathan is an old friend, and I saw his efforts to honor his brother and other soldiers who have given the ultimate sacrifice. I wanted to be a part of it, and I knew Paducah Bank would be a perfect partner because of their commitment to veterans.”
JUL/AUG 2017
KENTUCKY BANKER | PAGE 15
KENTUCKY BANKERS ASSOCIATION
The University Club at Arlington Hosts Second Banker Appreciation Golf Outing
The second of two opportunities to play Valhalla Golf Club in the KenBanc Cup was played June 19 at The University Club at Arlington (Richmond).
KBA Insurance Solutions congratulates the first place team (pictured below, left to right) comprised of Chris French (Bank of the Bluegrass), Steve Cambron (KBA Emerging Leader, Home Federal Bank) and Matt Kocin (Banc Consulting Partners). The winning team shot 63. A scorecard playoff determined the runner up team (who shot 64, pictured below left to right) made up of Lou Moore (Banc Consulting Partners), Lisa Mattingly (KenBanc Insurance), Greg Dawson (Kentucky Bank) and Bart Wills (Logan Bank & Trust WV, not pictured). “We especially want to thank all of our sponsors, including Platinum Sponsor Banc Consulting Partners. All our event sponsors allowed us to put on these outings free to the players who come out and support what we do,� said Chuck Maggard, president and CEO of KenBanc Insurance.
FIRST PLACE
PAGE 16 | KENTUCKY BANKER
RUNNER UP
JUL/AUG 2017
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KENTUCKY BANKERS ASSOCIATION
Community Trust Bank Donates to Women’s Center Community Trust Bank recently made a monetary donation to the Blue Jean Ball to benefit the Women’s Crisis Center. Trippy Clark, Community Trust Bank Flemingsburg Market President, said: “Community Trust Bank is proud to be a sponsor of this noteworthy event.”
Community Trust Bank has three offices located in the Fleming County area. Community Trust Bank, Member FDIC, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, four banking locations in Tennessee, four trust offices across Kentucky, and one trust office in Tennessee. Pictured at right: Trippy Clark, Flemingsburg Market President of Community Trust Bank, is shown presenting a check to Melissa Greenwell, Buffalo Trace Director of the Women’s Crisis Center for the bank’s sponsorship of the Blue Jean Ball.
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BANK SHOTS! #kbabankshots
TONY GREGORY
Citizens Union Bank announced the bank has hired Tony Gregory as Assistant Vice President/Business Development Officer at their Mt. Washington Banking Center.
MATT CECIL Citizens Union Bank announced the hiring of Matt Cecil as First VP Commercial Lender. Matt will be working out of the Blankenbaker Louisville center.
JULIA PIGG Community Trust Bank announced the promotion of Julia Pigg to Market Vice President. She has worked for Community Trust Bank for over 20 years and has more than 29 years experience.
KEVIN ARNOLD Farmers National Bank promoted Kevin Arnold to Senior VP, Senior Lender. He joined the bank in 2002 and has worked in commercial lending since 2007.
BANK SHOTS! FACEBOOK @kybankers
KENTUCKY BANKERS ASSOCIATION
Commercial Bank of West Liberty Awarded Prestigious LEED Gold
The Commercial Bank of West Liberty held a Plaque Ceremony on June 20, 2017 recognizing it has been awarded LEED® (GOLD). The LEED rating system, developed by the U.S. Green Building Council (USGBC), is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance. The bank debuted its Energy Efficiency Education Dashboard which was funded by the Appalachian Regional Commission, Harshaw Trane and other sponsors. Commercial Bank achieved LEED certification for implementing practical and measurable strategies and solutions aimed at achieving high performance in sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. Commercial Bank Project Manager Jim Gazay said: “This is a terrific example where a renewable energy project can have a “big” impact on a “small” rural community.” LED lighting was coupled with a geothermal system that includes 30 wells (each 300 feet deep) and the use of Insulating Concrete Form (ICF) blocks; the blocks have a passive solar design that plays an important role in energy reduction. Commercial Bank CEO Hank Allen said: “The bank’s utility bills have decreased substantially, about 40 to 45% from the previous building. I truly hope this project is not only setting an example for the community banking industry, but for other small rural communities.” Commercial Bank received a $100,000 grant from the USDA Rural Energy for America Program (REAP) to pay for part of the geothermal system. “USGBC supports environmentally responsible construction and congratulates Morgan County Commercial Bank on accomplishing LEED Gold certification and their commitment to the community of West Liberty,” said Bill Sharp, USGBC MLAB Director, CMTA Engineers Principal. Pictured at right: Bill Sharp (left) presents the LEED Gold Plaque to Hank Allen, Commercial Bank CEO. KENTUCKY BANKER | PAGE 19
RRR 2017-2018 KBA EMERGING LEADERS RRR
2017-2018 KBA Emerging Leaders (from left to right): BRANDON FELTNER Citizens Bank of Kentucky, Paintsville; AMY ROBERTS Heritage Bank, Burlington; BEN CAUDILL Kentucky Bank, Morehead; JULIE MOORE First Federal Savings Bank of Kentucky, Frankfort; LUKE SHEPHERD The First National Bank of Manchester, Manchester; CHRIS FINDLEY First United Bank & Trust Co., Madisonville; JAMES AYERS Inez Deposit Bank, Inez; MATTHEW JEFFERY HARRIS River City Bank, Louisville; VANESSA BRYANT United Cumberland Bank, Whitley City. KBA_ halfpg_2017_v1.pdf 2 7/17/2017 9:56:41 AM
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RRR 2017-2018 KBA EMERGING LEADERS RRR
BRANDON FELTNER Citizens Bank of Kentucky, Paintsville
Tell Kentucky Banker readers about your bank. Citizens Banking of Kentucky is a medium sized community bank nestled in the mountains of Eastern, KY. We are one of the largest independently-owned and operated community banking companies in Kentucky with assets of $605,000,000.Our banking footprint extends from Pike County to Ashland over to our recent territory of Winchester. We are a true community bank in having operated in our communities for more than 107 years. We strive to provide the best service, products, and technology to our customers all while exceeding each customer’s expectations. What does it mean to you to be a KBA Emerging Leader? I highly consider being an Emerging Leader a true honor. I believe there are thousands of great bankers in KY, and to be considered as a young, upcoming leader in the bank industry is truly humbling.
AMY ROBERTS Heritage Bank, Burlington
Tell Kentucky Banker readers about your bank. Heritage Bank has been an independent community bank since 1990. The founders of the bank, as well as most employees, were born and raised in the communities we serve and we know our neighbors and local businesses well. The bank is known and trusted and has strong core values. At Heritage Bank we are proud to say that we have our roots where others have branches. What does it mean to you to be a KBA Emerging Leader? With the KBA having a history of providing legal, compliance, and educational assistance to its members for many years, it’s an honor to be a part of such a well-respected organization. Being chosen as an up and coming leader is flattering, but in my opinion comes with much responsibility. It means a commitment to learning and developing, engaging your community, and representing your bank.
BEN CAUDILL Kentucky Bank, Morehead
Tell Kentucky Banker readers about your bank. Kentucky Bank serves Central and Eastern Kentucky. Each market we are in is unique but one thing remains consistent in all the markets we serve: all of our employees treat our customers with utmost courtesy and respect and take pride in protecting financial privacy. What does it mean to you to be a KBA Emerging Leader? I am honored to be a part of such a dynamic group of young individuals and I look forward to learning from each member new and diverse strategies in the banking field.
RRR 2017-2018 KBA EMERGING LEADERS RRR
JULIE MOORE
First Federal Savings Bank of Kentucky, Frankfort Tell Kentucky Banker readers about your bank. Julie: I work at First Federal Savings Bank of Kentucky in Frankfort Kentucky as a loan officer. First Federal has been in Frankfort since 1934. At First Federal we take pride in making local decisions and it makes a difference. We always put our clients first. We are truly a hometown bank. What does it mean to you to be a KBA Emerging Leader? Julie: To be a part of the Emerging Leaders program with the KBA is a privilege for me. I want to be able to grow as a person and learn from other leaders in the banking industry in Kentucky. One of my goals is to continue to make a difference in people’s lives. I like helping people. By participating in the Emerging Leaders program, I know I will have many more opportunities to meet new people and experience new growth.
LUKE SHEPHERD
The First National Bank of Manchester, Manchester Tell Kentucky Banker readers about your bank. Luke: My bank is a small community bank of approximately $140 million in total assets in rural Southeastern Kentucky. We have a mixture of young and seasoned employees that come together to make a great work environment. We are very dedicated to serving our community and customers. We have been chartered since 1905, first being capitalized at $25,000. What does it mean to you to be a KBA Emerging Leader? Luke: It is a huge opportunity and honor to be a KBA Emerging Leader in my industry. I am very passionate about community banking and loyal to our state of Kentucky.
CHRIS FINDLEY
First United Bank & Trust Co., Madisonville Tell Kentucky Banker readers about your bank. Chris: First United Bank & Trust Company is a growing community bank located in the coalfields of Western Kentucky. The bank opened in 1996 to bring community banking back to Madisonville and Hopkins County. We pride ourselves in supporting the communities we serve and building long lasting relationships with our customers. Our products, services, and technology are progressive but our strong team of bankers are our competitive advantage. What does it mean to you to be a KBA Emerging Leader? Chris: It is an honor and privilege to have been selected as a KBA Emerging Leader. I am excited about the opportunity to learn from other Kentucky bankers and look forward to bringing the knowledge I gain back home to help my customers at First United Bank.
RRR 2017-2018 KBA EMERGING LEADERS RRR
JAMES AYERS Inez Deposit Bank, Inez
Tell Kentucky Banker readers about your bank. James: The Inez Deposit Bank has been in operation since 1904. With a coal dependent economy, the area has seen both boom and bust. Through it all the Inez Deposit Bank has stood strong, providing financial services to the community with the motto “Together We’re Getting Things Done.” What does it mean to you to be a KBA Emerging Leader? James: Being named a KBA Emerging Leader proves that hard work pays off. It is an honor to be recognized by my CEO and the Kentucky Bankers Association as an up and coming leader in the industry. The networking and educational opportunities that this program presents are very exciting.
MATTHEW JEFFERY HARRIS River City Bank, Louisville
Tell Kentucky Banker readers about your bank. Matthew: As a community bank, we thrive on the personal relationships we have created in our hometown. River City Bank is locally owned and has served Jefferson County and the surrounding areas for nearly 30 years. We offer a variety of loan products that we tailor to match each customer’s specific needs, whether it’s a conventional purchase, bridge loan, construction loan or rehab flip. What does it mean to you to be a KBA Emerging Leader? Matthew: This is an honor but more importantly an opportunity. My goal from the Emerging Leaders Program is that I would broaden my banking skills while also growing my network of bankers across the state. I believe this program will help me to better serve my bank by exploring in-depth the issues affecting other community banks and learning how best to handle them.
VANESSA BRYANT
United Cumberland Bank, Whitley City Tell Kentucky Banker readers about your bank. Vanessa: United Cumberland Bank was formed in 2014 with the merger of Bank of McCreary County and First Trust and Savings Bank. The banks, which had been affiliated since 1994, came together under a new name bringing with them more than two centuries of tradition and service. UCB serves communities in Kentucky and Tennessee with six locations in McCreary County, KY and Scott and Campbell County, TN. We are currently working on our seventh location in Pulaski County. What does it mean to you to be a KBA Emerging Leader? Vanessa: I am honored to be a KBA Emerging Leader. Not only will I gain leadership skills to help lead my bank to a successful future, but I will also learn how I can personally help the banking industry in matters of government. Strong community banks are an asset to the communities they are in and are especially important in areas like McCreary County where I live.
The Murray Bank Supports Relay for Life
Pictured: Jared Paschall (left), Accounting Chair for Murray/Calloway County Relay for Life and Employee of The Murray Bank, Carol Sims, Luminaria Chair for Murray/Calloway County Relay for Life and Employee of The Murray Bank, and Tim Stark (right), Captain of The Murray Bank Relay Team. A donation was made on behalf of The Murray Bank to support the Murray/Calloway County Relay for Life.
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RUSTY CLARK
Farmers National Bank promoted Rusty Clark to the bank’s Head of Lending. Clark has worked in the banking industry in leadership roles for more than 20 years throughout Central and Western Kentucky.
KENTUCKY BANKERS ASSOCIATION
Ohio Capital Corporation for Housing Closes $217 Million LIHTC Fund
In this uncertain time of pending federal tax reform and increased demand for affordable housing, OCCH, a nonprofit financial intermediary of low income housing tax credits, announced the closing of Ohio Equity Fund for Housing XXVII (OEF XXVII) at $217 million. The federal tax credits earned from the investment will be used to offset the investor federal tax liability.
The capital for OEF XXVII came from 27 investors, including 9 new investors and 18 who have invested with OCCH in previous equity funds. OEF XXVII will provide over 1,800 affordable housing units through 23 projects in Ohio, 6 projects in Kentucky, 2 in Pennsylvania and 1 in West Virginia. MICHAEL KENNEY Community Trust Bank announced Michael Kenney has been promoted to Vice President. He has over 11 years of banking experience.
JIMMY WORKMAN Community Trust Bank announced Jimmy Workman was promoted to Assistant Vice President. Workman has worked for Community Trust Bank for four years.
“OCCH has been fortunate to retain and grow a stable base of investors throughout the years who are committed to strengthening and developing vibrant, sustainable, and affordable communities,” said Hal Keller, OCCH President. “This substantial $217 million investment is paramount to creating and preserving homes that make a difference to the quality of life in our communities. We are grateful to our investors who committed capital while we collectively assess the challenges of potential changes to the Federal corporate tax rate.” Headquartered in Columbus, Ohio, OCCH has now raised over $4.0 billion in private equity investment, financed more than 45,000 affordable housing units, and assisted in the creation of 800 affordable housing developments for families, seniors, and special needs populations.
ANITA GREENE Community Trust Bank announced Anita Greene was promoted to Market Assistant Vice President. Greene has worked for Community Trust Bank for over 37 years. BANK SHOTS! FACEBOOK @kybankers
KENTUCKY BANKER | PAGE 25
KENTUCKY BANKERS ASSOCIATION
CFSB’s Blackwell and Hendrick Graduate from Barret Graduate School of Banking Paul W. Barret, Jr. Graduate School of Banking in Memphis, Tennessee recently announced the graduations of Community Financial Services Bank (CFSB) Team Members Crystal Blackwell (pictured at right, top), Assistant Cashier/ Client Service Center Team Leader and Justin Hendrick (pictured at right, bottom), Assistant Vice President/Residential Loan Officer at the CFSB Calloway County Banking Center. Seventy-seven students completed the three year curriculum and graduated in the 2017 class. The school was held May 21-26 on the campus of Christian Brothers University in Memphis.
for Generational Kinetics, addressed School participants and invited guests on the topic “Crossing the Generational Divide: Unlocking the Power of Generations to Grow Your Business.”
Paul W. Barret, Jr. Graduate School of Banking has been providing advanced banking education for forty-five years, with a curriculum designed to provide a high degree of understanding of all commercial banking functions. Jim Reber, Chairman of the Board of Regents of Paul W. During the three-year program, gradBarret, Jr. School of Banking, spoke at the graduation cer- uates received 125 hours of classroom emony and congratulated the graduates on behalf of the instruction and prepared in-depth reports in eight areas of Board. In addition to course work, students attended the study. Approximately 275 financial industry professionals annual Paul W. Barret, Jr. Lecture Series event. Jason Dors- from twenty-two states participated in the 2017 session. ey, Co-Founder and Chief Strategy Officer of The Center
Six Kentucky Bankers Earn Diplomas from LSU’s Graduate School of Banking On June 2, 2017 one hundred sixty four bankers received graduation diplomas from the Graduate School of Banking at Louisiana State University. This three-year program provides courses covering all aspects of banking, economics and related subjects. Students traveled from eighteen states and Mexico to participate in this Session. Six bankers received diplomas from Kentucky: Stephanie M. Berry Home Savings Bank Ludlow David H. Eubank American Bank & Trust Bowling Green Ryan Key Bank of Lexington Lexington Samuel L. Mahan FNB Bank, Inc. Mayfield Gregory A. Mills Farmers National Bank Lebanon John William Tuel III Peoples Bank Richmond Sponsored by 15 southern state bankers associations in cooperation with the Division of Continuing Education at LSU, the banking school requires attendance on campus for three years, with extensive bank study assignments between sessions. The faculty consists of bankers, business and professional leaders, and educators from all parts of the U.S. PAGE 26 | KENTUCKY BANKER
Stephanie Berry
JUL/AUG 2017
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KENTUCKY BANKERS ASSOCIATION
findCRA Selected as Finalist for 2017 Inc. Credible Awards by Greater Louisville Inc. KBA Vendor Solution, findCRA, has been selected as one of 29 companies in the running for the 2017 Inc.Credible Awards. The annual awards celebrate small businesses within the Greater Louisville region and are bestowed each year by Greater Louisville, Inc. (GLI), the Metro Chamber of Commerce. “I’m honored that findCRA was selected as a finalist for this award and thankful for the support we’ve received from GLI over the years. We are excited to be recognized as a small business focused on community reinvestment in our hometown as we continue our national growth,” said Ben Loehle, CEO and Co-Founder of findCRA. findCRA is one of six finalists for the Very Small Business of the Year Award which recognizes companies with fewer than ten employees who exemplify both business and civic leadership. Community involvement, management practices and overall financial performance are the primary criteria for this category. All finalists are also eligible for the People’s Choice award, which is open for online voting. Founded in 2013 and
headquartered in Louisville, findCRA brings order to the innumerable resources and opportunities available for Community Reinvestment Act participants by organizing everything in a centralized online location. “The Inc.Credible Awards are a chance for Greater Louisville to really celebrate all the small businesses that make our region unique and vibrant,” Kent Oyler, President & CEO of GLI, said in a press release. “We are always excited to see the innovative business solutions that are being pioneered by the smaller players in our community.”
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JUL/AUG 2017
126th Annual Convention Preview The Historic Grove Park Inn
Join us in Asheville, NC
We look forward to seeing you at the 2017 KBA Annual Convention at the AAA Four-Diamond Omni Grove Park Inn in beautiful Asheville, North Carolina! The Omni Grove Park Inn is a perfect setting for our convention. The resort overlooks the beautiful Blue Ridge Mountains and boasts a history of famous visitors including ten presidents, F. Scott Fitzgerald, John D. Rockefeller Henry Ford and Thomas Edison. The history and the beauty of the hotel will make it a perfect backdrop.
We reconvene on Wednesday for day two of our General Session highlighted by Connie Podesta. Ms. Podesta is an award-winning author, Hall of Fame speaker and comedian. Her energetic presentation titled “Life Would Be Easy, If It Weren’t for Other People” will force all of us to think about how to work with all types of people. Later on Wednesday get ready for the grand finale with our reception, banquet and after party.
The real fun starts at the After Party! For those of you who Here are just a few convention details for you. We kick off attended last year’s convention, you understand the exon Sunday this year (September 24th) with convention citement that Party on the Moon (pictured below) brings registration and the opening reception. After the recep- to the closing event! Be prepared to dance the night away tion, you’ll have the opportunity to go out on your own with their non-stop, high energy music! and experience some of the amazing restaurants on the resort or throughout the city of Asheville. Again, we look forward to seeing you there! Registration information can be found on the KBA Website. If you have On Monday (September 25th) we’ll have our annual golf any questions, please contact Tammy Nichols at 502-736tournament, registration will open and there’s a Govern- 1280 or tnichols@kybanks.com ment Affairs meeting. All of this is followed by a reception with the exhibitors that begins at 5:30 p.m. Be sure to download the KBA App so you can see all the details regarding the convention, connect with other attendees and play the exhibitor game to win great prizes! Our first General Session is Tuesday (September 26th) and highlighting the day will be our keynote speaker – Geoff Colvin. Mr. Colvin is the Senior Editor-at-Large for Fortune magazine and his presentation titled “Political Chaos and Your Business” will be both timely and fascinating! The General Session ends at 12:15 p.m. giving you ample time to get out and enjoy the many alluring sights of Asheville. May we suggest that you enjoy the spa, schedule a tour at the Biltmore Estate or take a tour of one of the many craft breweries around town.
Party on the Moon!
BERT ELY’S FARM CREDIT WATCH
How the FCS gets away with Accepting Deposits by Bert Ely bert@ely-co.com
with the association. Consequently, the association has no liability for the deposits it accepts. The Treasury letter required that purchasers of these bonds (effectively FCS Bankers in many areas of the country have discovered that depositors) be given “printed materials [that] clearly state the FCS associations they compete against effectively are that the [farm credit bank] and not the association is the accepting deposits. The associations accept these funds as issuer” of the bonds, that the bonds “are not direct oblione element of the cash-management services they offer gations of the United States,” and that the bonds “are in to their member/borrowers. Technically, the funds depos- no way insured or guaranteed as to principal or interest by ited with the FCS represent an advance payment against the United States or any governmental entity.” an outstanding loan or line of credit from the association. Check the Compeer Financial website for a good example It is highly unlikely that FCS depositors understand that of the range of cash management services some associ- they effectively are buying an uninsured bond. ations offer. Note how frequently the word “deposit” is used. At the end of 2016, AgriBank had $939 million of member investment bonds outstanding and CoBank had $1.5 bilFCS institutions are not authorized to accept deposits in lion of “cash investment services payable” outstanding. It the manner that banks do, but years ago the Farm Credit noted that these payables mature within a year; if a bond Administration and the Treasury Department constructed can be redeemed overnight it effectively functions as a dea legal justification for the manner in which deposits can mand deposit. now be accepted by FCS associations. The other two FCS banks — Farm Credit Bank of Texas and First, the Farm Credit Act permits each of the four FCS AgFirst — appear not to offer these bonds. Presumably, banks to issue bonds both individually as well as collec- then, the associations they fund cannot accept deposits in tively through the Federal Farm Credit Banks Funding Cor- connection with cash management services they offer to poration. their member/borrowers. Second, in 1990 the Treasury Department issued a letter to the Farm Credit Administration (FCA) exempting FCS banks from key provisions of the Securities Exchange Act of 1934. This exemption permitted each FCS bank to sell bonds directly to FCS member/borrowers as well as to FCS employees and retirees, without providing the disclosures usually associated with the sale of securities.
Presumably the exemption the Treasury Department approved in 1990 enhanced the ability of the FCS banks to fund their balance sheets directly to complement the funds raised through the Funding Corporation.
However, today more and more associations, in cooperation with the FCS banks, are using that exemption for an entirely different purpose — to compete against commerAn FCS association acts as agent in selling the bonds of the cial banks in offering cash-management services. Offering bank that funds it. Funds deposited with an association are cash-management is not why Congress created the FCS. immediately forwarded to the bank to purchase the bank’s continued on the next page bonds with a face value equal to the amount deposited PAGE 32 | KENTUCKY BANKER
JUL/AUG 2017
BERT ELY’S FARM CREDIT WATCH
Credit-quality issues emerging in some larger FCS Now called Compeer Financial — hardly suggestive of agricultural finance — it serves eastern and south Minnesota, associations The quarterly and annual FCS information statements published by the Federal Farm Credit Banks Funding Corporation include a table listing key data and ratios for all FCS associations with total assets exceeding $1 billion. The spreadsheet lists the 37 associations that had more than $1 billion of assets on both March 31, 2017, and March 31, 2016. They hold almost 90% of the total assets of all FCS associations. What is evident in these numbers is the variability across these associations in key measures of performance and financial soundness. For example, non-performing assets as a percent of total loans plus other property owned at March 31, 2017, varied from 2.46% down to .02%. The adequacy of loss provisioning, as measured by the allowance for loan losses as a percent of non-performing assets also varied significantly on that date, from 20.5% to 2800%. Especially troubling numbers for both measures are noted in red. The wide range of these numbers raises this question: Are some of the larger associations not being as diligent as they should be in identifying troubled loans and reserving for eventual losses on those loans? Time will tell. This question is especially relevant for the second-largest association, Louisville-based Farm Credit Mid-America (FCMA). Moving down the spreadsheet, rankings by return on average assets (ROA) and net interest margin (NIM) also show great variability, with ROA ranging from 2.51% to 1.20% and NIM ranging from 3.59% to 2.14%. Notably, FCMA is at or near the bottom of both of these rankings.
western and southern Wisconsin, and northern and western Illinois.
Separately, United FCS merged into AgCountry FCS to create the ninth-largest FCS association with total assets of approximately $7 billion. It serves western Minnesota, eastern North Dakota, and a portion of eastern Wisconsin almost 200 miles to the east. With these mergers, the ten largest of the FCS’s 70 associations hold 67% of total association assets. The FCS is increasingly dominated by very large, multi-state associations.
AgStar — an out-of-market ‘investor’ Prior to gobbling up two smaller associations to form Compeer, on January 10 the FCA authorized AgStar to invest up to $2 million in bonds issued by a long-term care facility in Wisconsin. Although the facility may have been located within the territory served by AgStar, financing a long-term care facility, however worthy the project may be, hardly fits within the scope of the FCS’s financing authority. Further, these bonds are really a loan recast to look like an investment.
More troubling, though, was the FCA’s April 7 authorization for AgStar to “invest up to $2.5 million in taxable bonds to be issued by a rural continuous care facility in Texas,” which of course is hundreds of miles south of AgStar’s territory. Leaving aside the propriety of such an investment, FCW readers are encouraged to massage the data in this what could AgStar possibly know about the continuous spreadsheet to see what conclusions they reach about the care market in Texas? financial condition of the larger FCS associations. Most interestingly, on June 5, the FCA authorized CoBank “to invest up to $1 million in taxable bonds to be issued On July 1, five associations became two by a continuous care facility in Texas.” Quite likely, this is On June 27 the FCA gave final approval to two sets of the same facility whose bonds AgStar is purchasing. One mergers of FCS associations that became effective on July can reasonably ask why Texas-based FCS associations or 1. The merger of Badgerland Financial and 1st Farm Credit the Farm Credit Bank of Texas are not buying those bonds. Services into AgStar has created the third-largest FCS association, with total assets of approximately $19 billion. JUL/AUG 2017
KENTUCKY BANKER | PAGE 33
KBA EDUCATION ALLIANCE KBA Mortgage Lending School November 6-10, 2017 This comprehensive school consists of three modules: 1) Origination, 2) Processing and 3) Underwriting. We emphasize the roles of originator, processor and underwriters as a loan application follows each stage. The Mortgage Lending School will provide a foundation in origination and processsing.
Instructors present an overview of the knowledge and skill sets required to have a complete understanding of mortgage banking. You will take with you a common framework for mortgage lending and bringing the participants together in a mutual understanding of the functions in loan production.
KBA Essentials of Banking School December 4-8, 2017 This school is specifically designed for... The New Bank Employee This new bank employee may have a college background, however, they are new to the industry; they will benefit from a program that introduces them to banking from a management perspective. The Experienced Bank Employee This experienced bank employee is someone who has been with the bank for several years and has not had the time or opportunity to take advantage of banking education programs.
The Bank Employee on a Career Track This career track bank employee is someone who plans to attend the KBA General Banking School but needs the prerequisite training courses in Accounting, Money and Banking, or Principles of Banking. Successful completion of the Essentials of Banking School satisfies these prerequisite requirements. Mark Your Calendar 2018 KBA General Banking School June 3rd through June 8th
FOR MORE INFO CONTACT Paula Cross at the KBA (502)736-1276 or pcross@kybanks.com Or visit www.kybanks.com and click on the Education Alliance icon