WHEN BLUEGRASS TURNS TO WHITE
NOVEMBER/DECEMBER 2019 KENTUCKY BANKERS ASSOCIATION
BBKY
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TO LEARN MORE CONTACT
MISSY HARROD, ASSISTANT VICE PRESIDENT 800-248-3229 ext. 225 DIRECT DIAL: 502-695-2524 EMAIL: mharrod@bbky.com
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HAPPY HOLIDAYS MERRY CHRISTMAS HAPPY NEW YEAR DOWNLOAD THE KBA APP Our NEW APP puts the KBA at your fingertips YEAR ROUND!
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2019 KBA STAFF DIRECTORY Ballard W. Cassady Jr. President & CEO bcassady@kybanks.com
Jamie Hampton Education Services Coordinator jhampton@kybanks.com
Debra K. Stamper EVP & General Counsel dstamper@kybanks.com
Paula Cross Education Services Coordinator pcross@kybanks.com
Matthew E. Vance Chief Financial Officer mvance@kybanks.com
Tamuna Loladze Chief Operating Officer, HOPE of KY tlodadze@kybanks.com
Selina O. Parrish Director of Membership sparrish@kybanks.com Natalie Kaelin, Esq. Director of Education nkaelin@kybanks.com Billie Wade Executive Director, HOPE of KY bwade@kybanks.com Josh Fischer Director of Communications jfischer@kybanks.com Miriam Cole Executive Assistant mcole@kybanks.com John P. Cooper Legislative Solutions jcooper@kybanks.com Michelle Madison IT Manager mmadison@kybanks.com
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Timothy A. Schenk Assistant General Counsel tschenk@kybanks.com
Tammy Nichols Finance Officer, HOPE of KY tnichols@kybanks.com Katie Rajchel Staff Accountant krajchel@kybanks.com Casey Guernsey Enrollment and Billing Specialist cguernsey@kybanks.com
Chuck Maggard President & CEO, KenBanc Insurance cmaggard@kybanks.com Lisa Mattingly Director of Sales & Service, KBA Benefit Solutions lmattingly@kybanks.com Brandon Maggard Account Representative, KenBanc Insurance bmaggard@kybanks.com Donna McCartin Benefit Support Specialist dmccartin@kybanks.com
Steve Whitlow Systems Engineer swhitlow@kybanks.com
Audrey Whitaker Insurance Services Coordinator awhitaker@kybanks.com
Nina K. Gottes Sponsorship & Business Development ngottes@kybanks.com
Jennifer Schlierf Sales Support, KBA Insurance Solutions jschlierf@kybanks.com
2019-2020 OFFICERS & BOARD Chairman Lloyd C. Hillard, Jr. Chairman of the Central & Southern KY Region, WesBanco, Frankfort
Represents Group 6 Darin L. Young, President & CEO, Century Bank of Kentucky, Lawrenceburg
KBA Vice Chairman J. Wade Berry President & CEO, Farmers Bank & Trust Company, Marion
Represents Group 7 Steve Tolliver, Market President, The Monticello Banking Company, Harlan
KBA Treasurer James A. Hillebrand, CEO, Stock Yards Bank & Trust Company, Louisville KBA Past Chairman David M. Bowling CEO, Citizens Union Bank Shelbyville Ballard W. Cassady, Jr. President & Chief Executive Officer, KBA, Louisville GROUP REPRESENTATIVES Represents Group 1 Randell Blackburn Market President McCracken County Community Financial Services Bank, Benton
Represents Group 8 Anthony Kinder, President & CEO, Peoples Bank of Kentucky, Flemingsburg Represents Group 9 Andrew Jones, Regional President, Community Trust Bank, Ashland THRIFT REPRESENTATIVES Shanda L. Smith, President & CEO, Blue Grass Federal Savings & Loan, Paris BANK SIZE REPRESENTATIVES Represents Banks with Assets of $1B or more Elmer K. Whitaker, President & CEO, Whitaker Bank, Lexington
Represents Group 2 J. Jason Hawkins President & CEO, First United Bank and Trust Company, Madisonville
Represents Banks with Assets at Least $200 M; less than $1B David W. Hobbs, President River City Bank, Louisville
Represents Group 3 John W. Key President, Commonwealth Bank & Trust Company, Louisville
EDUCATION ALLIANCE REPRESENTATIVE
Represents Group 4 Michelle Coleman, CEO, Bank of Edmonson County, Brownsville Represents Group 5 Gregory D. Goff President & CEO, First National Bank of Kentucky, Carrollton
Lanie W. Gardner, Community President, First Southern National, Central City KBA BENEFITS TRUST COMMITTEE REPRESENTATIVE W. Fred Brashear, II, President & CEO, Hyden Citizens Bank, Hyden
KENTUCKY BANKER is the official bi-monthly magazine of the Kentucky Bankers Association (KBA). No part of this magazine may be reproduced without written permission from the KBA. The KBA is not responsible for opinions expressed by outside contributors published in KENTUCKY BANKER. The KBA reserves the right to publish submissions at the discretion of the KENTUCKY BANKER editorial team. For more information contact Josh Fischer, Managing Editor, 502-736-1283 or jfischer@kybanks.com.
KENTUCKY BANKER NOV/DEC 2019 IN THIS ISSUE 3 KY BANKER App 7 Chairman’s Corner 9 Straight Talk 10 My Two Cents 12 100 Miles! 14 The Foundry 15 Tamuna Loladze 17 Stock Yards Bank 18 Woodford Retires 19 Promontory 22 KeyState Captive 29 KBA Sponsors
Tamuna Loladze’s Journey From Georgia to HOPE of Kentucky page 15 Casey County Bank’s Taylor Rousey Has “No Business” Running 100 Miles page 12
NEW FOR 2020
CREDIT CONFERENCE FIRST EVER! January 15th Louisville Please join us for this wonderful opportunity to network with your peers from across the state as we dive into an important look at the lending environment for Kentucky in 2020 and in the future. Visit kybanks.com for more information, or contact Natalie Kaelin, Director of Education: nkaelin@kybanks.com
Smart decisions today. Lasting value tomorrow.™ To learn more, visit crowe.com or contact Jennifer Monaghan at +1 502 420 4509 or jennifer.monaghan@crowe.com.
Visit www.crowe.com/disclosure for more information about Crowe LLP, its subsidiaries, and Crowe Global. Š 2019 Crowe LLP.
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CHAIRMAN’S CORNER Lloyd C. Hillard, Jr. WesBanco 2019-2020 KBA Chairman
Creating a Compelling Culture Keys to Creating the Memorable Customer Experience A key passion in my banking career has been emphasizing the importance of a compelling service culture. It is something all CEO’s talk about, but it takes more than talk to make it a reality. I submit that if you polled CEO’s of banks, of any size, and asked if they had an effective service culture, almost all would say YES! However, I would challenge them to prove it with a careful review of how it is implemented in their bank. A compelling service culture has a crystal-clear purpose—it’s the rallying cry of the bank! Most importantly, it recognizes that those who are serviced by the bank must be the most important focus – OUR CUSTOMERS. Successful banks require an intentional focus on culture every single day, or as a colleague says: “each time and every time.” A compelling culture starts within and reaches out. It emphasizes how team members treat and care about each other. The focus within is very visible from the outside. I cannot overemphasize the importance of a strong, caring and effective internal culture! In our banks, we have customers who interact with bank employees directly (i.e. lenders, tellers, banking center managers, etc.) and with support personnel indirectly (i.e. loan and deposit operations, credit, finance, marketing, etc.) all day long. The ultimate focus of all bank employees should be to deliver a compelling experience for everyone who walks into our lobbies. It’s critical that support team members buy into the fact that their primary mission is to make the customer-facing personnel successful. If they merely see their role as a rule enforcer, then we will fail in delivering the compelling experience for our external customers. While processes and procedures are critical and compliance with rules and regulations is essential in processing financial transactions, how we interact with each other in a positive manner in completing the transaction is the key. Remember, our customers pay the bills and allow us to succeed. Nothing happens until someone is served. Let’s review some keys in creating a compelling service culture: • Strong commitment from the Board of Directors and CEO • Well-defined (crystal-clear) purpose • Ties directly to the Mission of the bank • Articulated core values and guiding principles of the bank • Understanding the service culture is both internal and external • Documented, written plan, with checkpoints • Senior leader gives reports on a regular basis • Integral part of Strategic Plan • Commitment by every team member to the culture daily
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We must not live in the past, but learn from the past, and we must be willing to change.
When a culture is strong, people care about each other and the customers they serve, and it shows. When a culture is weak, concern for the work, fellow team members and the customers, slowly ebbs away. Don’t let this happen in your bank! Remember, the purpose of the organization is much bigger than any one individual. However, every team member has the potential to bring value to the team. We must not live in the past, but learn from the past, and we must be willing to change. Creating a compelling culture is the essential first step in delivering a memorable customer experience. It can, and will, differentiate you from your competition. In this arena, community banks have a distinct advantage – if they are committed to the challenge! More to come on the customer experience! Remember - be pleased, but not satisfied.
In this special time of the year, I want to wish everyone a Merry Christmas and a safe, healthy and HAPPY NEW YEAR!
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2020 KENTUCKY BANKER MAGAZINE SUBMISSIONS/QUESTIONS Please email submissions/questions to: Josh Fischer, Managing Editor jfischer@kybanks.com
ADVERTISE IN KENTUCKY BANKER If you would like to learn more about advertising in KENTUCKY BANKER, please contact Nina Gottes: ngottes@kybanks.com or 502-736-1284
SUBSCRIPTIONS $30/year for KBA members $60/year for KBA non-members Additional single copies $5 each Email: jfischer@kybanks.com
RESOLUTIONS POLICY Resolutions published in KENTUCKY BANKER are $250 per resolution. Technical requirement: PDF or jpeg with high resolution (300 dpi). Please include billing info. To submit email jfischer@kybanks.com
KBA BANK SHOTS SHARE YOUR MOMENTS! We want to celebrate every bank promotion and new hire with all our members. This is what Bank Shots is for. We only have a short space to include these in our magazine - much of the story gets missed. Where did they go to school? What branch will they be working? Where do they volunteer in their community? For this reason, and to help build our Facebook community, we are moving your Bank Shots to the KBA Facebook page. Continue to send your promotions and new hires to jfischer@kybanks.com and within 48 hours your Bank Shot will appear on our page and in your feed. (Subject to KBA approval.)
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LIKE/FOLLOW US & JOIN YOUR COMMUNITY To make sure you see all your bank and employee related posts, and to keep up with community news, be sure to like our Facebook page, follow our posts and be sure to invite co-workers, associates, friends and family to like and follow our page.
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STRAIGHT TALK Ballard Cassady KBA President & CEO bcassady@kybanks.com
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2019 Was a Good Year for Banking Well the election is over and we have a new Governor for the Commonwealth, Andy Beshear. Congratulations on a hard fought victory to incoming Governor Beshear. This will make things interesting in the upcoming 2020 session as we go from an all Republican government to the House and Senate controlled by the Republicans and the Governor’s office controlled by the Democrats. It should be interesting watching everyone navigate the waters.
KABUKI THEATER Washington DC has been interesting to say the least over the last month or so with the impeachment hearings going on. If you have watched any of the TV coverage, the truth all depends on which channel you’re watching as to how to interpret what is happening. As for me, we have been way too busy in the KBA offices to worry about this right now. There are plenty of analysts on every side if you want to be entertained. The Japanese call this Kabuki Theater, where you know what is going to happen at the beginning of the play but have to watch it all the way through to see it.
WHAT WE DO On the regulatory front, we continue to find relief in important areas that allows us to serve our communities better every day. Sometimes it’s hard to remember that this is what we do every day, serve our communities so that they can grow and prosper.
...we continue to find relief in important areas that allows us to serve our communities better every day.
FREEDOM IS NEVER FREE This has been a time to remember our veterans and we are so grateful for each and every one of our men and women who chose to serve this country and to protect our freedoms that we all too often take for granted. Putting yourself in harm’s way not only for your families but for people you will never meet is one of the bravest and most selfless things anyone can do! Let’s always remember what we have all been told by our elders - freedom is never free! Thank you to all the military men and women and to all the veterans. A special thank you and prayer to those who were not fortunate enough to come back home.
HAPPY HOLIDAYS I want to wish everyone a very happy and peaceful start to the holiday season. 2019 was a good year for banking in our Commonwealth with the bi-partisan passage of HB 325 in the Kentucky general assembly and S2155 in Congress. We have a lot to be thankful for. Hold your friends and family close and your faith even closer!
SPRING CONFERENCE APRIL 19-21 I look forward to seeing everyone at the 2020 Spring Conference. We have a new location and new programs so visit our website to sign up. If you have any questions contact Natalie Kaelin here at the KBA, or call me anytime.
kbaspringconference.com 9 | KENTUCKY BANKER
MY TWO CENTS
Debra Stamper KBA EVP & General Counsel dstamper@kybanks.com
Are We STILL Talking About UDAAP? Yes, I am afraid we are. CFPB Director Kraninger testified before the House Financial Services Committee last month and Congressman Andy Barr asked her about guidance or proposed rulemaking on the second “A” in UDAAP—“abusive.” Director Kraninger indicated that the September Symposium was the first step towards accomplishing definitive guidance and Congressman Barr urged swift resolution. Towards that, I have written my thoughts below, which describe my expectations. UDAAP has been around since 1938, known then as “Unfair and Deceptive Acts or Practices Act.” That Act declared as unlawful “unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce.” In 1972, the Supreme Court in FTC v. Sperry & Hutchinson Co. adopted a three-pronged test of whether an act or practice is “unfair”: (1) whether the act or practice offends public policy; (2) whether the act or practice is immoral, unethical, oppressive or unscrupulous; and (3) whether the act or practice causes substantial injury to consumers. Since then, these general standards still serve as the foundation for UDAP’s “unfair” enforcement. “Deceptive” was a bit easier to apply as it carried a more objective and less subjective connotation—Webster’s defines “deceptive” as “intending to mislead.” Throughout the decades, bankers had come to know what was considered to be “unfair,” established by this 1972 case, and what was considered “deceptive” with limited regulatory guidance from the FTC. Under these historic standards a standard of UDAP formed and some common UDAP concerns arose: • Hidden teaser rates; • Buried asterisks; • Use of the term “free” when fees could result; • Marketing practices which did not explain requirements necessary to obtain the benefit; • Hidden terms in products such as balloon payments; and • Undisclosed ATM balances’ inclusion of overdraft protection. If you look through the history of examination citations for “unfair” or “deceptive,” you will see that UDAP violations significantly decreased over time, as banks were comfortable with the standards and worked hard to comply. 10 | KENTUCKY BANKER
Then, as part of the Dodd Frank Act, UDAP became UDAAP, as the term “abusive” was added. This breathed new life into perceived violations. The Dodd-Frank Act empowered the CFPB to declare an act or practice “abusive” if it: • Materially interferes with the ability of a consumer to understand a term or condition of a product; • Takes unreasonable advantage of the consumer’s lack of understanding; • Takes unreasonable advantage of the consumer’s inability to protect his or her interests; or • Takes unreasonable advantage of the consumer’s reasonable reliance on a covered person to act in the interests of the consumer. Note the difference between the use of “a” and “the” before consumer. That may not appear to be significant, but it is. Each word in legislation matters. Typically, “a” means “reasonable” consumer, while “the” means the person before you. Commonsense would suggest that “abusive” is a more culpable term than “unfair” or “deceptive.” “Unfair” is commonly defined as “inequitable.” “Deceptive” is commonly defined as “misleading.” “Abusive” on the other hand is defined as “exploitive.” Similarly, under these definitions, one would understand that any abusive act would certainly be unfair and possibly deceptive; meaning that “abusive” would always be covered by the existing guideline and legal directives and must include a higher level of culpability in order to be found. These three standards of UDAAP seem to identify three stages of bad action taken on behalf of the entity being regulated…however, appearances are not necessarily true. Something can be “unfair” without intent, while both “deception” and “abuse” suggest intent. Regardless, if each “stage” is looking to be defined, those definitions should be explained to regulated entities in such a way that they contain unique characteristics that can be described and avoided through proper practices. And, “abusive” should be defined in such a way that it is more culpable than the other two, not less. For instance, if Congress had rewritten the law to prohibit “confusing,” unfair or deceptive acts, I would have disagreed with the premise, but I would have understood that they were trying to capture a larger group of acts that a consumer may not understand. “Confusing” might not be unfair and it might not be deceptive. It could be described in a truly unique way from the existing standards.
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UDAAP has been around since 1938, known then as the “Unfair and Deceptive Acts or Practices Act.” But, by adding the term “abusive,” Congress has offered no additional protection—wouldn’t abusive always be unfair and, perhaps, deceptive? The result of adding this third standard, initially, was that banks were receiving many more UDAAP citations under the category of “abusive.” While justifications under the Dodd-Frank language was not provided, many of the citations would have not succeeded under the established “unfair” standards. Further, as you can imagine, banks being labeled as “abusive” to their customers suffer reputational risks. Further, it was not until the passage of the Dodd Frank Act that banks learned (without forewarning) that a bank could be in TOTAL compliance of a particular set of regulations (even regulations that are comprehensive) and still be in violation of the new “A” in UDAAP. Again, it seems illogical that a bank can be in compliance and be “abusive,” without intent. While stories of unjustified citations have slowed, it appears that regulators believe that they can use “abusive” as a catchall violation, when they just don’t particularly like a practice. Banks can follow regulations to a tee, and even use regulator provided disclosures, and still receive “abusive” citations. Without formal rulemaking and standards, I have recommended that banks take the following actions:
8. Probably the most important act your bank can take is to focus on your consumer complaints. Develop a complaint process and document how the complaints are handled and the result. Many UDAAP citations will eventually stem from a complaint one of your consumers filed – whether it was with the CFPB, your regulator directly or simply through your bank’s complaint process. Make sure that regardless of where or how the complaint originates, that there is one person/department responsible to ensure that it was addressed by the proper person/department and to watch for trends or patterns. So, what we would like to see are the following, when the CFPB considers the “abusive” standard: 1. Established standards that can be followed through compliance. 2. Standards that include intent. 3. Standards that are not the same as or weaker than the standards established by the U.S. Supreme Court in the Sperry case. Without these considerations, regulators are burdening banks with possible citations and reputational risk that cannot avoided.
1. Focus on your revenue products. Any product that has a long history of producing large revenue seems to be an attractive focus to regulators. 2. Evaluate your products and consider if changes are necessary or available to help protect consumers from their own bad decisions. 3. Empower and involve compliance in all product innovation and product changes. 4. Focus on the bank’s marketing and marketing materials. 5. Include UDAAP as an agenda item for your compliance committee and/or board of directors’ meetings. 6. Perform due diligence reviews on third party vendors to make sure they aren’t involving you in potential UDAAP. 7. Be prepared during your exam to explain fee schedules, notices, products and services, policies and procedures, disclosures, and marketing to show that your bank has considered UDAAP in all of the above and complied with the standards of UDAAP. 11 | KENTUCKY BANKER
100 MILES! During the race, all that I had to think about was “just keep moving.”
KENTUCKY BANKER PROFILE
TAYLOR ROUSEY, CASEY COUNTY BANK
by Josh Fischer Managing Editor, Kentucky Banker KBA Director of Marketing & Communications Casey County Bank’s Taylor Rousey gets this question a lot. Why? Why run a 100-mile race? His answer: “I’m still trying to figure out the ‘why’ myself.” The race, held this past October, is called the No Business 100, presumably because no one has any business running 100 miles. Taylor did it in 32 hours, 34 minutes and 34 seconds. “I was drawn to the No Business 100 because it goes all through the Big South Fork. I just love this area. It is a hidden gem with some of the best hiking trails around,” said Rousey. “The course is a 101-mile loop through the Big South Fork. We began at 5:00 AM on Saturday in the Blue Heron Mining Community. To start the race, we crossed the old coal bridge and then hopped on the trails.” The course circumnavigates almost the entire Big South Fork. Runners started south from Blue Heron toward Tennessee, and along the way passed through the old abandoned No Business settlement, where the race actually gets its name. Much of the course is on the Sheltowee Trace and John Muir Trails. “One trail that we were on during the daylight is the Grand Gap Loop, it is full of amazing views of the river valley. The course also passes through the Twin Arches, which are breathtaking,” said Rousey. The training was breathtaking as well; brutal in fact.
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“One specific workout that I did a few times was running repeats on a gravel hill close to my house. It climbs about 250 vertical feet in a little less than a half mile,” he said. “I just ran up and down for 2 to 3 hours. I also raced a shorter race that shares the same trails as the NB100.” Of course, that wasn’t all. “I went to a training camp weekend that the race director hosted where we ran about 18 miles of the course. The training camp proved extremely helpful because I got to see a good portion of the course in the daylight. During the race this section was in the middle of the night.” Taylor wasn’t much of a runner until 2015, a year into his employment with Casey County Bank. He ran his first half marathon at Red River Gorge, a race called The Rugged Red, and a month later ran a half marathon in Louisville. He ran his first ultramarathon at the Yamacraw 50K in the spring of 2016, and found himself hooked on the endurance sport after finishing the 31-mile race. “I think ultra-running is part of who I am now,” he said. “Although the races are very difficult physical endeavors, I feel so much peace of mind when I am running. Banking can be stressful. Running has become a major stress reliever for me. During the race, all that I had to think about was just keep moving.” Rousey is a loan officer with Casey County Bank, and a 2018-2019 KBA Emerging Leader alumnus. He currently manages the bank’s implementation of CECL. “I began working at (Casey County Bank) as a teller just after I graduated high school. I worked during my summer breaks during college,” said Rousey. “The summer before my senior year at WKU I began working as a credit analyst.”
32 HOURS, 34 MINUTES, 34 SECONDS continued from previous page He graduated from Western Kentucky University with a degree in finance in 2013. Taylor attended the LSU Graduate School of Banking and has been a loan officer with the bank since 2014. The Casey County Bank is in his blood. “I have some family ties to the Casey County Bank. My grandfather, Robert T. Rousey, worked here for over 50 years, beginning in 1942,” said Rousey. “He became President of the bank in 1980. He served as President of the bank until his passing in 2001. My father, Barry Rousey, also serves on our Board of Directors, he assumed my grandfather’s seat after his passing.” Taylor married his high school and college sweetheart, Marie (pictured below in blue). The couple are expecting their first child in June 2020. “We couldn’t be prouder of Taylor,” said Debra Stamper, EVP and General Counsel of the KBA. Debra oversees the KBA Emerging Leader program. “Not only as a past KBA Emerging Leader, but as a Kentucky banker. He is a shining example of our industry and its future.”
What some of his fellow 2018-2019 KBA Emerging Leader Alums had to say about Taylor and his accomplishment: I am thrilled that Taylor achieved this lofty goal. While in the KBA EL program, he was always preparing for or taking part in races. It’s clear his dedication paid off. The same determination that enabled him to endure the long run feeds over into all parts of life, including banking.
Jessica Watts, First Federal Savings & Loan of Hazard
When Taylor first told us about the 100-mile race all I could think was, “he’s crazy,” and “how can he physically do that?” But, for the lucky ones that know Taylor know his ambition and determination was going to push him through the finish line. Although we weren’t with him that day, he sent us a link for us to get updates. Seeing the video of him crossing the finish line was priceless. We’re still so proud!
Amber Smith, Morgantown Bank
Taylor is a glutton for punishment! Any man that can run 100 miles has a level of self-discipline that’s unmeasurable. I worry one day when he’s old, he will not have any knee caps. In all honesty, Taylor is a great guy and very caring and thoughtful. I’m thrilled for his accomplishments and I pray for his recovery in his many marathon journeys.
Hayley L. Thomas, West Point Bank
Taylor is an extremely driven person. He sets goals and crushes them. I saw the video of him finishing this race and was in awe of him as he crossed the finish line. He was so excited. I’m proud to call him a friend and congratulate him on this outstanding accomplishment!
Eleshia Brandon, The Murray Bank
On KBA trips, Taylor would stay with us all day, but always carve some time to train. Whether it was a treadmill at 5 am or a short ten mile run at French Lick while the rest of us played golf.
Kelcey D. Rock, Hancock Bank & Trust Company
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Groundbreaking ceremony for The Foundry Apartments. HOPE of Kentucky participated in the project, its largest affordable housing loan.
HOPE of Kentucky Hits Milestone A groundbreaking ceremony took place on November 5th for The Foundry Apartments in Louisville. HOPE of Kentucky, a subsidiary of the KBA, participated in the project and achieved a milestone in the process. “The Foundry was the largest affordable housing loan (approximately $19 million) that we have closed to date; it included 7 bank member participants, including several of our Louisville area banks,” said Billie Wade, Executive Director, HOPE of Kentucky. “It was also one of the most complex transactions we’ve had.” The Foundry project is being developed by one of HOPE’s best clients, Winterwood, Inc. Winterwood is the largest management company of affordable housing in the state with more than 10,000 units. The Foundry apartment complex is located just south of Shively in the south end of Louisville. It will have 198 units consisting of combinations of one, two and three-bedroom units for families whose income is below 60% of the area median income. Those families will pay no more than 30% of their income toward rent and utilities. The units will be energy efficient and the complex will include a community gym, an event room and computer labs for the residents and children. Construction began in October and completion is expected in 24 months PNC Bank is the tax credit investor and a bridge lender for the project, and a bank from Cedar Rapids, Iowa, is the perm lender. The Louisville Affordable Housing Trust Fund is a secondary lender. The financing also included tax exempt bonds issued by Kentucky Housing Corporation. Kentucky bank participants included: American Bank & Trust Co, Central Bank, Eclipse Bank, Heritage Bank, Limestone Bank, River City Bank and WesBanco Bank.
David Hobbs and Mike Raque, with River City Bank, attended the groundbreaking ceremony for The Foundry Apartments.
BY THE NUMBERS OVER $130M in loans currently servicing Up $50M from 2018! OVER $170M in loans originated since 2011 Up $50M from 2018! OVER 2,000 constructed units since 2011 ZERO LOSS HISTORY OR DEFAULTS Need for safe, decent affordable housing has never been greater; 95-97% occupancy rate.
KBA STAFF PROFILE
Tamuna Loladze’s 6,000-Mile Journey From War-Torn Georgia to Hope in Kentucky In September HOPE of Kentucky added a Georgian to its staff, but maybe not the Georgia you’re thinking of; Tamuna Loladze, the new Chief Operating Officer of HOPE, is from Georgia, the former Soviet republic on the border of Europe and Asia. Her journey from a country torn apart by civil war, to Kentucky, began as a teenager leaving home and travelling nearly 6,000 miles to the United States. “I came to the States at the age of 14 to go to school while my country was going through a lot of political and economic turmoil, including a civil war,” said Loladze. “Some close family friends had emigrated to Atlanta a few years prior and they helped me find a boarding school in northeast Georgia. “My parents did not move with me; in fact, they still live in my home country of Georgia. I thought I was coming to the States only for 1 year, I ended up finishing high school and went on to college at Transylvania University. I did a double major in Economics and Business Administration with an emphasis in Finance.” After college she worked as an assistant equity trader at Deutsche Bank in New York, working on a Nasdaq trading desk. “That was a fascinating experience as I got to experience first-hand the wild world of Wall Street,” she said. She later went back to school at Georgetown University in Washington, DC, earning an MBA and a Masters in Foreign Service with a focus on International Development. Following grad school, Loladze worked at the World Bank Group in DC as a Securities Market Specialist. “This was probably the most enriching experience of my career, given the diversity of the work, employees, and culture and the ability to interact with clients all over the world,” she said. “I worked in capital market development, where I managed large-scale projects and advised high-level country officials on strategies to strengthen their capital markets, so that they could be more effectively used to finance long-term development needs, such as infrastructure and housing. “I got to work on very interesting projects from using bond markets to develop a massive toll-road system in Colombia to allowing Kenyan retail investors to invest in local Treasury securities using mobile phones.” When Loladze moved back to Kentucky, settling in Louisville, she decided it was a time for a shift in her career. She became the Chief Operating Officer at Bluegrass International Fund (BIF), a boutique investment firm focusing on mobilizing foreign investor capital for local
economic development projects under the federal EB-5 investor visa program. One of the projects BIF helped finance contributed to the revitalization of a distressed neighborhood in Louisville. “I became familiar with Tamuna when HOPE provided bridge financing for projects the Bluegrass International Fund were financing with their EB-5 program. I was impressed with her knowledge and her professionalism and demeanor,” said Billie Wade, HOPE of Kentucky’s Executive Director. “When I heard that BIF was downsizing their operations due to changes in the EB-5 program at the national level, I approached Tamuna about her interest in joining HOPE. The timing was great, we’ve been wanting to add some back-up to our rapidly growing HOPE program.” HOPE of Kentucky, a subsidiary of the KBA, is a consortium of KY banks formed to pool loan funds to make construction and permanent loans on affordable housing projects financed principally utilizing equity generated from the sale of federal tax credits allocated to the projects. The consortium allows banks to diversify their revenue sources while limiting their credit risk when they participate together with other banks in a variety of lending opportunities across the Commonwealth. “I knew Tamuna’s background with complex financing with the World Bank and BIF would serve her well with HOPE, and I haven’t been disappointed,” Wade added. “She is a really quick read and really has a good grasp of our affordable housing loans in her short tenure. And she has never met a stranger, which serves her well in networking with our developers.” 15 | KENTUCKY BANKER
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continued: From War-Torn Georgia to Hope in Kentucky So what appealed to her about the HOPE of Kentucky job? “My post-grad school goal has been to apply my business and financial skills in a way that would allow me to contribute to a bigger cause, such as economic or community development, be it at global, regional, or local levels,” she said. “Coming from a developing country with a lot of economic challenges has always inspired me to give back and make sure that ultimately my efforts are serving a larger public good. “This important higher purpose of the job was a major appealing factor for me. Not only does HOPE help address the affordable housing shortage in our region, but also it supports smaller community banks that are operating in more economically challenging environments by giving them additional revenue opportunities. “In addition, having brushed shoulders with banks in various realms of my prior work experience but never having worked for one, I was intrigued to actually start thinking about financing issues from a banker’s point of view. There is lots to take in and learn about the housing industry too. I’m grateful for these learning opportunities and am enjoying the journey!”
Getting to know Tamuna Loladze: Family? I’m happily married with my husband of 18 years. We have 2 boys, ages 9 and 5, who enrich our lives and keep us on our toes! GEORGIA’S FLAG Favorite book? All the Light We Cannot See by Anthony Doerr. A beautifully-written, incredible story set during World War II. Favorite movie? Amadeus by Milos Forman. I have loved this movie since I first watched it as a child in Georgia. I played a lot of Mozart piano pieces growing up and seeing a movie about this genius composer had a huge impression on me. Favorite food? Too many to list. I love French and Latin cuisines, among many, and of course Georgian! Hobbies? Yoga, swimming, tennis, skiing, piano, cooking. Hiking at Bernheim or Jefferson Memorial Forest.
Stock Yards Bank & Trust Opens Branch in Jeffersontown This past Fall, Stock Yards Bank & Trust celebrated their Jeffersontown office ribbon cutting ceremony with staff and community members. The newest office, located at 10421 Taylorsville Road is open Monday-Thursday from 9-4, and Fridays 9-6.
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Does Your Mortgage Operation Address These Four Key Issues? by Ken Janik, Promontory For many community banks, now is the time to review strategy and budgets heading into 2020. This process should include assessing mortgage operations – both from a profitability and customer experience perspective.
The right fulfillment provider also brings consistent, repeatable compliance practices, standardized reporting, enhanced data quality and security and continuous monitoring. A strong outsourcing partner ensures changes in regulations and requirements are updated on time and with full transparency. Banks also have additional protection against compliance defects in the form of limited reps and warrants.
Even in the best of times, mortgages can be challenging for community lenders. Average origination costs have hit a new high – $10,200 according to the Mortgage Bankers Association – and added tech investment are squeezing margins even more. To be blunt, providing customers with a digital experience is no longer a luxury, it’s a must-have.
While banks still own the obligation to maintain oversight of any third-party partners and policies and practices, with outsourced fulfillment, the regulatory weight is significantly shifted off the bank.
Interest in outsourced fulfillment is intensifying among Kentucky banks and with good reason – Kentucky Bankers Association has officially endorsed Promontory Fulfillment Services LLC’s mortgage fulfillment services and point-of-sale technology for their ability to help community banks compete and manage origination costs.
Outsourced mortgage fulfillment isn’t new. What is new, however, is the way technology and more-flexible fulfillment approaches are addressing many banks’ past concerns – like consistent borrower experience, data integrity and cross-selling competition. A good outsourced solution is built on flexible and scalable best-in-class technology capable of driving efficiency and data quality. A good partner should allow banks to set business and underwriting rules and provide complete transparency at every stage. Further, a good partner should also effectively capture the bank’s culture in all facets of processes and procedures.
Banks should explore outsourcing as an option during the strategic planning process for its ability to: 1. Address consumer demands 2. Maximize operational and cost efficiencies 3. Reduce compliance risk 4. Offer new and better options 1. Address Consumer Demands Today, a growing number of consumers expect a digital mortgage experience. According to the Boston Consulting Group, 79% of consumers want to get a mortgage exclusively online and 87% of consumers believe digital is faster. Outsourcing to a partner with an advanced point-of-sale solution levels the playing field with the largest lenders and FinTech competitors – all without the added investment in technology or additional staff.
4. Offer New and Better Options
When executed correctly, outsourcing fulfillment can create efficiencies and address cost and compliance hurdles previously deemed unclearable. Even more importantly, such a solution enables banks to stay in – or enter – the mortgage business while enhancing the customer experience.
Learn more about Promontory Fulfillment Services’ comprehensive solution by reaching out to Selina Parrish, Director of Membership, Products and Services at the KBA, at sparrish@kybanks.com or Sherman Moore, Regional Vice President of Sales at Promontory Fulfillment Services, at smoore@mortgagefulfillment.com
2. Maximize Operational and Cost Efficiencies Outsourcing can dramatically reduce production costs. It also converts fixed costs – processors, underwriters, compliance specialists, and closers – into variable costs. Banks can comfortably scale up or down without variable-cost unknowns. 3. Reduce Compliance Risk An outsourced solution doesn’t inoculate banks from compliance risk. But, teaming up with a partner with an outstanding reputation for compliance, innovative technology built with compliance at its foundation and best-in-class partnerships is an approach that can safeguard a bank’s compliance – and its reputation. 19 | KENTUCKY BANKER
Effective Dates for Major Standards Delayed in FASB Vote by Michael Davis, KraftCPA The Financial Accounting Standards Board (FASB) has approved a sweeping change to its philosophy of establishing effective dates for major new accounting standards. The updates came after outcry from small public companies and private entities, who said they need more time to adopt major changes to the accounting rules than larger public ones.
after Dec. 15, 2018, for lease accounting would also apply to employee benefit plans that file or furnish financial statements with or to the SEC as well as nonprofit entities that have issued or are conduit bond obligors for securities that are traded, listed, or quoted on an exchange or over-thecounter market.
In a unanimous vote on Oct. 16, the FASB chose to delay the effective dates of its lease accounting, hedge accounting, and accounting for credit losses (CECL) standards.
• Private companies and all others: The hedge accounting and lease accounting effective dates would be delayed by a year to fiscal years beginning after Dec. 15, 2020. The credit loss effective date would be delayed two years to fiscal years beginning after Dec. 15, 2022.
Separately, the FASB voted to delay the effective date of its standard for accounting for insurance companies issuing long-term insurance contracts.
Early-adoption options for the standards are unchanged. The FASB expects to issue a final ASU with these decisions in November.
The FASB also voted to align the effective date of ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, with the amended effective dates for the credit loss standard. The new effective date for the longThe decision finalizes the effective dates that had term insurance contract standard for SEC filers (exbeen tentatively approved earlier and will not be re- cluding eligible smaller reporting companies) will be vised. Changes under the new Accounting Standards fiscal years beginning after Dec. 15, 2021, and interim Update (ASU) are: periods within those fiscal years. The FASB had issued proposals in August to defer the effective dates of its standards, particularly for private companies, nonprofits, and small public companies, allowing them more time to implement the new rules.
• SEC filers: The hedge accounting and lease accounting effective dates would remain for fiscal years beginning after Dec. 15, 2018, and the credit loss effective date would remain for fiscal years beginning after Dec. 15, 2019. The exception would be smaller reporting companies, whose credit loss effective date would be extended to fiscal years beginning after Dec. 15, 2022. • All other public business entities: The hedge accounting and lease accounting effective dates would remain for fiscal years beginning after Dec. 15, 2018; the credit loss effective date would change from fiscal years beginning after Dec. 15, 2020, to fiscal years beginning after Dec. 15, 2022. The effective date of fiscal years beginning
For all other entities, the long-term insurance contract effective date will be fiscal years beginning after Dec. 15, 2023, and interim periods within fiscal years beginning after Dec. 15, 2024.
If you have questions about how these changes could affect your filing deadlines, contact Michael Davis, Member of Assurance Services, at mdavis@kraftcpas.com or 615.242.7351. THIS IS AN ADVERTISEMENT
First & Farmers National Bank Announces New President and Chief Executive Officer The Board of Directors of First & Farmers National Bank has announced the appointment of a new President and Chief Executive Officer, long-time employee Mr. Terry Pugh. Mr. Pugh assumes this role as the bank ushers in a new era with its recently constructed corporate headquarters and retail banking center, located at 2020 South Highway 27 in Somerset, KY. Immediate past President and CEO, Mr. Steve Morgan, will continue to serve as Albany Market President and as a Director on both the First & Farmers National Bank and Albany Bancorp boards. Mr. Pugh attended Eastern Kentucky University, where he earned his Bachelor of Business Administration degree with an emphasis in Finance. He is also an alumnus of the Graduate School of Banking of the South at Louisiana State University. Mr. Pugh brings to the position over 37 years of experience in banking, the last 10 of those with First & Farmers National Bank. He has most recently served the bank as Senior Vice President and Chief Lending Officer.
Mr. Pugh continues to work closely with Mr. Morgan to ensure a smooth transition. “I am grateful for Mr. Morgan’s dedication to First & Farmers. Under his leadership, the bank has grown into one of the region’s premier lending institutions, and I look forward to continuing this legacy into the future.” First & Farmers National Bank Chairman Mr. John G. Prather, Jr. stated, “Mr. Pugh’s astute knowledge of banking, his strong leadership skills, and most importantly his commitment to First & Farmers’ role in helping our local communities to thrive, will continue to move FFNB forward as one of the strongest and best banks in Kentucky.”
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Banks Using Captives for Enterprise Risk Management in Increasing Numbers by Josh Miller, CEO, KeyState Captive Management There is no avoiding it. Cyber security and reputation protection are among today’s significant, emerging risks, thus creating exposures for banks of all sizes. At the same time, commercial insurance carriers are pushing banks to higher deductibles, so there remain significant gaps in coverage and exclusions in commercial insurance policies. This creates unfunded risks, which must be evaluated as a part of any bank’s enterprise risk management process. It’s evident that bankers know not all enterprise risk is addressed with their commercial insurance package. To address the concerns, banks throughout the country are forming captive insurance companies – known as captives – to cover these unfunded risks. A captive is a legally licensed, limited purpose, property and casualty insurance company, which can write customized policies for related entities. While larger institutions (typically $10bn in assets and larger) with specific organizational structures (i.e., lots of charters) have been utilizing these types of captives since 2006, captives really did not take hold for mid-size community banks ($1bn - $10bn) until an updated structure was designed and vetted with regulators in 2012. “Our first member bank joined the Bank Captive Program in 2014 and the KBA now has 3 members chartered in Kentucky that have captive insurance companies and 4 others with a presence in the state,” said Ballard Cassady, President and CEO of Kentucky Bankers Association. “As our banks see their peers operating captives successfully, we have seen more banks consider captives and evaluate whether it can also benefit their institution.” It is important to recognize that the captive structure does not typically replace a bank’s primary commercial insurance program. However, it does allow a bank to more formally self-insure risks that are currently unfunded or that the bank has considered retaining (i.e., increased deductible layers). Typically, the captive augments commercial policies in the following ways: - Covers the bank’s commercial deductible layers, including significant “named storm” deductibles for banks with coastal branches - Provides “difference in conditions” coverage for existing commercial policies, which primarily relate to sublimits and exclusions on the commercial policy form - Increases coverage levels on existing policies (excess layers) - Identifies other currently unfunded risks to insure where commercial insurance is not available to the bank. 22 | KENTUCKY BANKER
TESTIMONIAL “We have had our Captive in place since 2014. During winter storms in 2015 we experienced losses due to branch closures and extra expenses that were not covered by our commercial insurance policies. Our captive insurance company allowed us to submit those claims for reimbursement. It has been a nice way to set aside funds for a rainy day in a tax incentivized way.”
Louis Prichard President and CEO of Kentucky Bank Along with benefits received from enhancing a bank’s risk management process, Congress approved a small business incentive for midsize companies that form their own insurance companies to insure these currently unfunded risks. Through the incentive, banks can form their own captive insurance companies and then make an election under Section 831(b) of the Internal Revenue Code. This allows companies to pre-fund for potential future risks on a tax advantaged basis, provide an incentive to set money aside for future potential claims and create a mechanism for companies to formalize their current self-insurance program. In the December 2015 Appropriation Bill, Congress moved the annual allowable premium limit from $1.2 million to $2.2 million for the tax years after 2016. Financial institutions with larger baskets of unfunded risks will be able to continue to grow their captive over time as the institution grows organically or with acquisitions and the small business incentive will also grow. This increase in the allowable premium limit has spurred additional interest for larger institutions ($2bn plus) that have more significant unfunded risk. The potential savings related to this small business subsidy (Section 831b) for captives varies from bank to bank, but they can be significant. In some cases, holding companies can see an increase to earnings per share of 1-4% prior to adjusting for claims made to the captive. Of course, a bank does not expect a significant claim year after year. The captive is designed to cover risks that typically have high potential loss severity but low likely frequency. The captive becomes a way to put reserves away, literally for a rainy day. Of course, this solution is not a fit for every bank. This solution should only be implemented by banks with sufficient capital and earnings. Holding companies that want to form a captive must be well managed and well capitalized and their affiliated bank that pays premiums into their captive must have sufficient capital and earnings to support the additional insurance expense at the bank level. continued on the next page
Finishing Off A Strong Year by Chad McKeithen, Managing Director Duncan-Williams Inc.
For banks looking to hedge the earnings exposure we see a few areas that they should be addressing:
It has been a great year. Kentucky banks finished the 3rd quarter with a 1.06% ROA, the hig hest since 2005. Bond and loan yields continued to rise over the past four years, while funding costs remained relatively low (COFs = 0.82%). With revenue up and in the face of a late stage growth cycle, it is critical to layer in earnings protection. If rates continue to decline,then we see net interest margin (NIM) problems. Asset yields have more room to fall than COFs do. This presents issues because banks are asset sensitive and it will squeeze NIM. We saw this between 2007 and 2014, the last time rates fell.
Lengthen bond portfolio: To protect NIM against low rates banks need longer assets. It is very hard for most banks to lengthen loans, but they can lengthen their bond portfolios and most banks should. If the bond portfolio duration is less than 4 years,then it is most likely too short. Lower convexity: Prepays and calls are one of the primary reasons banks ran into so much earnings trouble between 2007 and 2014. When rates fell loans and bonds paid off fast, forcing banks to reinvest at lower yields. If your bond portfolio has negative convexity of -0.50 or greater then purchase bonds that will bring it closer to zero. This will protect yield/ NIM if rates remain low. Lower bond premiums: If rates fall and bonds prepay or are called then portfolios with a hig her premiums will have to amortize the premiums faster, an earnings killer. If the premium on the portfolio is above 102.00 then look at lowering that. duncanwilliams.com THIS IS AN ADVERTISEMENT
continued: Banks Using Captives for Enterprise Risk Captive insurance companies are a growing trend for high performing banks throughout the country. As banks become more aware of their unfunded risks through ongoing enterprise risk management, the captive offers a unique and customized approach to identify and fund for those risks on an annual basis. Twenty seven state banking associations, including the Kentucky Bankers Association, have endorsed the Bank Captive Program for their members. Currently seven banks that are members of the Kentucky Bankers Association have captive insurance companies. Kentucky banks with an interest in exploring whether a captive insurance company is a good fit for their institution should contact: Travis Holdman at tholdman@key-state.com
“Let us review your coverage so you can get back to the business of serving your communities.� KBA Insurance Solutions
Chuck Maggard cmaggard@kybanks.com cell 606-682-1950
Property & Casualty / Collateral Protection Employee Benefits / Fee Income Cyber / BOLI Contact 23 | KENTUCKY BANKER
Woodford Retires as Chairman, Kentucky Bancshares Names Caudill as Successor WOODFORD RETIRES Buckner Woodford began his banking career, after earning an MBA from Harvard Business School in 1971, with Bourbon Agricultural Bank. At that time the bank had assets of $12 million. He succeeded Samuel Clay as bank CEO in 1974. In 1990 the bank began expanding to other counties in central Kentucky and eventually changed their name to Kentucky Bank. Woodford became Chairman of Kentucky Bank in January 2005. Assets have now grown to over one billion dollars. The bank employs 250 people in 11 cities, within 17 offices, throughout the state.
“I want to thank Buck for his service as President and CEO and then his contribution as Chairman. His leadership, commitment and dedication to Kentucky Bank has, without question, made Kentucky Bank one of the most well respected and successful banking institutions in the Commonwealth.” Louis Prichard, President and CEO of Kentucky Bank
FORMER KBA CHAIRMAN SUCCEEDS Kentucky Bancshares, INC., incoming chairman will be Proctor Caudill. Mr. Caudill has also had a very long history in operating a successful bank. Caudill was President and CEO of Peoples Bank in Elliott and Rowan counties until 2006, when the bank was acquired by Kentucky Bank. Proc is a graduate of Morehead State University as well as the Louisiana State University Graduate School of Banking. He has served on Kentucky Bancshares board since 2006. He is currently the Chairman of the Strategic Planning and Governance Committee of Kentucky Bank. He has served on many civic boards and has served as Vice Chairman of the FHLB of Cincinnati as well as Chairman of the KBA.
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7TH CIRCUIT RULING CREATES CONFLICT IN FEDERAL CIRCUIT Mindy Sunderland
mpmfirm.com
In In re I80 Equipment, LLC, 18-3291, 2019 WL 4296751 (7th Cir. Sept. 11, 2019), the 7th Circuit issued a ruling on what constitutes a sufficient description of collateral in a financing statement. This ruling conflicts with a case out of the 1st Circuit. This sets up a showdown between the two circuits in the event a writ of certiorari is filed in the 7th Circuit case and granted by the US Supreme Court. It is important for Kentucky banks to be aware of this ruling as the 7th Circuit includes Indiana. The facts of the case are straightforward. The lender extended credit to the borrower. It filed a financing statement to perfect its security interest in the collateral for the loan. The collateral description stated, “All Collateral described in 1st Amended and Restated Security Agreement dated March 9, 2015 between Debtor and Secured Party.” Said security agreement was not attached to the filing. The borrower subsequently defaulted and filed bankruptcy. The Chapter 7 Trustee sought to avoid the lender’s lien, arguing it was unperfected because the financing statement did not independently describe the underlying collateral. The bankruptcy court ruled in favor of the Trustee. It found that “a financing statement that fails to contain any description of collateral fails to give the particularized kind of notice” required by Article 9. The lender appealed. The 7th Circuit reviewed §9-502(a), which requires a financing statement “indicate the collateral covered by the financing statement.” The court then turned to §9504, which provides “[a] financing statement sufficiently indicates the collateral that it covers if the financing statement provides: (1) a description of the collateral pursuant to Section 9-108; or (2) an indication that the financing statement covers all assets or all personal property.” The court next analyzed §9-108 and found that this section only requires that a description “reasonably identify” collateral. According to §9-108,
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reasonably identifying collateral is done the following ways: (1) specific listing; (2) category; (3) type; (4) quantity; (5) mathematical computation or allocation; or (6) “any other method, if the identity of the collateral is objectively determinable.” The court found that referring to the security agreement was “objectively determinable” and, thus, ruled in favor of the lender. This ruling directly conflicts with the 1st Circuit’s holding in In Re: Financial Oversight and Management Board for Puerto Rico, 914 F.3d 694 (1st Cir. 2019), which held that a collateral description is inadequate if it refers to and incorporates a description in a document not filed contemporaneously with the financing statement. Further, the 7th Circuit decision conflicts with the holding in In re Lexington Hospitality Group, LLC, 94 UCC Rep.Serv.2d 42 (Bankr. E.D. Ky. 2017), though this case is from a lower court. The Lexington Hospitality Group court found that the financing statement’s reference to an “All-Assets Security Agreement” that was not attached to the filing did not satisfy KRS 355.9-502(1). The general sentiment from Article 9 commentators has been that the 7th Circuit holding is in error. MPM’s own John McGarvey, who serves as the Uniform Law Commission’s UCC committee chair, is recommending the Permanent Editorial Board consider issuing a commentary or revising the Official Comments to address the 7th Circuit ruling. For now, Kentucky banks need to be aware that the prevailing 6th Circuit case law, the circuit that includes Kentucky, holds that referencing a description in a document not filed contemporaneously with the financing statement is insufficient to indicate collateral, while the prevailing case law in the 7th Circuit holds that it is.
Morgan Pottinger McGarvey is a leading banking and finance law firm representing financial institutions, businesses and individual clients throughout Kentucky and Indiana.
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KBA SPONSORSHIP TESTIMONIALS When you do business with the KBA and it’s sponsors, you are doing business with yourself. Contact Nina Gottes for more info: ngottes@kybanks.com
The best part of the conference is the layout. The concept of placing the vendors within the conference is brilliant. It promotes a “one team concept” and allows the vendors to listen & observe the presentations. Thus, we are relevant to the experience. Tim Murphy, NewGround Box Lake has been sponsoring and attending KBA events for the past 5 years and we have always had great experiences. The KBA staff focuses on creating events where vendors are face to face with attendees as much as possible and that is a huge benefit to us. Sara Doyle, Box Lake* Thank you and I thought it was a GREAT conference. I loved our location this year and the line-up was excellent. I feel this was a great conference and was great to see our clients and even met a few potential new clients. Matt Moskowitz, American Profit Recovery* Thank you so much! The event went really well and we had a ton of great conversations. Big thanks to you and the team’s help. The sponsorship was great, and the other touches around the event all worked perfectly. Big thanks to your support. Michael Fernandez, Glia*
ASSOCIATE MEMBERS NEW! IN 2019 Warm welcome to our newest KBA Associate members who offer some of the best solutions in the industry! Contact Selina Parrish for more info: sparrish@kybanks.com
Bluegrass Recycle CloudBnq* DA Davidson Dean Dorton Allen Ford Glia* High Cotton ImageQuest Kentucky Agriculture Finance Next Century Technologies Premier Banking Consultants Promontory Fulfillment* Reich & Tang Saltmarsh, Cleaveland & Gund Squire, Patton, Boggs Triad Financial Services UMS Banking Unified Technologies* USDA Rural Development * KBA ENDORSED VENDOR
2020 EVENT & EDUCATION SCHEDULE
Internal Audit Seminar Cash Flow Seminar Loan Review Seminar
TBD TBD 14-18 19-22
Bankruptcy Seminar Technology Forum Commercial Lending School Annual Convention
TBD TBD
Compliance Forum Security Seminar
JULY
FEBRUARY APRIL
Training for Loan Assistants Seminar Training Credit Analyst Seminar
TBD Compliance Forum 19-21 Spring Conference
JUNE
16 22 23
12 13
M31-J5 16 18 30
General Banking School Regulators Forum - Lexington Regulators Forum - Bowling Green Tax Return Analysis Seminar
AUGUST
CFO Forum HR: Model Employment Policies for 21st Century Group Meetings General Banking School
MAY
7 13 18-21 31-J5
SEPTEMBER
9-13 KBA/PBS Regulatory Compliance School 16-19 Consumer Lending School
TBD TBD 13 20 27
Women in Banking Compliance Forum - Bowling Green Call Report Seminar Business Development: The Basics & Beyond Collections Seminar
TBD 6 7
FDIC Directors College CyberSecurity Seminar - Bowling Green CyberSecurity Seminar - Lexington
OCTOBER
Compliance Forum FIRST EVER! Credit Conference
DECEMBER
8 15
NOVEMBER
MARCH
JANUARY
FOR UPDATES & INFORMATION VISIT kybanks.com
N30-D4 Foundations of Banking School EVENT INFORMATION also available on our mobile app. Search “KY Banker” in your app store. Keep it on your phone year round!