Check Date - 12/29/15
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Larger Payroll1 - OS PR1 Time Clock 100236 - Automation - D Wyatt - PFM 500 EE
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Estimated Liability
Run Pre-Post Journal
Employees
$ 483 Employees Paid
Net Cash
$358,817.83
Employee Tax Liability
$122.632.76
11
Employer Tax Liability
$43,376.55
7
$524,827.14
12
Total Cash Requirement
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Check Summary
482
Employee Checks
Employees Not Paid
1
Manual Checks
New Hires
0
Third Party Sick Pay
With Pay Related Changes
0
Voided Checks
Liability Summary
Cash Requirements
Net Cash
Employee Tax Liability
POC Checks
Employer Tax Liability
$6,297.39
Partial Direct Deposit
$50.09
Net Direct Deposit
$351,857.35
POC Manual/Void Checks
$461.28
Third Party Sick Payments E - Payables Total
Social Security - Employee
$33,290.69
Medicare - Employee
$7,785.92
Social Security - Employer
$67,262.34
Federal Unemployment
State Withholding
$14,175.20
State Unemployment
$0.00
Local Withholding
$118.61
$358,817.83
Total
$33,290.69
Medicare - Employer
Federal Income Tax
$151.72
$0.00
POC Payables
$7,785.92 $2,128.13 $171.81
Worker’s Compensation
$122,632.76
$0.00 Total
$43,376.55
Deductions Not Taken
Paygroup Totals - All Departments
Payroll. HR. Time. Onboarding. To help community banks enhance their portfolio of services, The Bankers’ Bank of Kentucky partners with Paycor to offer intuitive HR and payroll solutions customized to fit your clients’ business needs.
Payroll & Time
Human Resources
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º Upload company documents
º Custom reports
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For more information, contact The Bankers’ Bank of Kentucky:
Lynn Ellis, lellis@bbky.com David Fletcher, dfletcher@bbky.com Todd Beers, tbeers@bbky.com Shawn O’Keefe, sokeefe@bbky.com To learn more about Paycor, visit www.bbky.com/paycor
OCT 2016 KBA STAFF
OFFICERS
Ballard W. Cassady Jr. President & CEO bcassady@kybanks.com
Chairman Mr. Michael H. Mercer First State Bank
Debra K. Stamper EVP & General Counsel dstamper@kybanks.com
Vice Chairman Mr. Timothy E. Barnes Hometown Bank of Corbin
Matthew E. Vance Chief Financial Officer mvance@kybanks.com
Treasurer David M. Bowling Citizens Union Bank of Shelbyville
CHAIRMAN’S CORNER........................................5
Selina O. Parrish Director of Vendor Solutions sparrish@kybanks.com
Past Chairman Mr. Louis Prichard Kentucky Bank
»STRAIGHT»TALK»...............................................6
Paula B. Cravens Sturgeon Director of Education Solutions pcravens@kybanks.com
BOARD OF DIRECTORS
MY TWO CENTS AND THEN SOME................8
Josh Fischer Director of Communications jfischer@kybanks.com Billie Wade Executive Director, HOPE of Kentucky 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 Natalie Kaelin Assistant General Counsel nkaelin@kybanks.com Michelle Madison IT Manager mmadison@kybanks.com Tammy Nichols Convention Coordinator Finance Officer, HOPE of Kentucky tnichols@kybanks.com Katie Rajchel Staff Accountant krajchel@kybanks.com
Mr. Bill Allen Bank of the Bluegrass and Trust Co. Mr. W. Fred Brashear, II Hyden Citizens Bank Mr. J. Brent Bugg Fredonia Valley Bank Ms. Lanie W. Gardner First Southern National Bank Ms.Kari R. Gough Winchester Federal Bank Mr.Dan M. Harbison Farmers National Bank of Scottsville Mr.Lloyd C. Hillard, Jr. Farmers Capital Bank Mr.James A. Hillebrand Stockyards Bank & Trust Mr. Gordon Kidd United Cumberland Bank Mr. Michael Mineer Citizens Deposit Bank & Trust
CONTENTS
KBA ANNUAL CONVENTION.........................10 BANKERS ON THE MOVE................................14 KBA ENDORSES CSI..........................................20 WOMEN IN BANKING.......................................22 KENBANC CUP....................................................24 KBA ENDORSES DELUXE.............................25 MARGARET CAMPBELL...................................29 BERT ELY’S FARM CREDIT WATCH.............30
Mr. Dale Sights Field & Main Bank Mr. Ryan Curtis Steger Town Square Bank Mr. John T. Taylor PBI Bank
Our Mission Statement Together We Make A Difference
Mr. Jed Weinberg Bank of Hindman
Angie White Sponsorship Relations awhite@kybanks.com
WE KNOW BANKS
Steve Whitlow Systems Engineer swhitlow@kybanks.com
Chuck Maggard President & CEO cmaggard@kybanks.com Lisa Mattingly Director of Sales & Service lmattingly@kybanks.com Brandon Maggard Account Representative bmaggard@kybanks.com
600 West Main Street, Suite 400 Louisville, Kentucky 40202
Donna McCartin Benefit Support Specialist dmccartin@kybanks.com
Phone: 502-582-2453 Fax: 502-584-6390 Website: www.kybanks.com
Audrey Whitaker Insurance Services Coordinator awhitaker@kybanks.com
Our Commonwealth
One Voice Unifying Banking in Kentucky The KBA is a nonprofit trade association that has been providing legislative, legal, compliance and educational services to its member institutions since 1891. The KBA’s directors and staff work together with its members to make the financial services industry a more effective and successful place to work. The strength of the KBA is bankers unifying as an industry to speak as one voice.
The purpose of the Kentucky Bankers Association is to provide effective advocacy for the financial services industry both in Kentucky and on a national level; to serve as a reliable and responsive source of information and education about areas of interest to the industry; and to provide a catalyst and forum for collective industry action. The KBA does this in four ways: 1. Government relations & industry advocacy 2. Information interchange 3. Education 4. Products and services
ADVERTISE/SPONSOR Call Angie White 502-736-1284 or email awhite@kybanks.com
MAGAZINE
SUBMIT/SUBSCRIBE Call Josh Fischer 502-736-1283 or email jfischer@kybanks.com
Kentucky Banker Magazine (KBM) is the official 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 of articles published in KBM.
CHAIRMAN’S CORNER
125
United in Service Mike Mercer, KBA Chairman President & CEO, First State Bank
For those of you who were not at our Annual Convention this past month at The Breakers in West Palm Beach, unity was one of the overarching themes. As members of the Kentucky Bankers Association the concept of unity provides for us a direct link to our past. In 1891, when our Association was founded, the original slogan our founding members chose was United in Service. Ballard (Cassady, KBA President and CEO), in his opening presentation at the Convention, imparted to the membership gathered in Florida what role the principle of unity had in the origins of the KBA. The founding bankers faced in 1891 a lack of representation in government with lawmakers and in Kentucky’s broader business community. In addition, they lacked the resources to provide solutions for those deficiencies, when they stood on their own. Kentucky bankers in 1891 needed a solution, and the equation that solved their common problems was apparent: what they could not do alone, they could do together. It is a legacy of collaboration that I will let guide our efforts here at the KBA. So, in the spirit of unity, I present two of my objectives that will, with deliberate intent, achieve this aim. United in Advocacy I want to work to bring unity to our industry by encouraging all bankers and organizations to support our common goals as a united front. We saw what happened to the Dodd-Frank bill when legislators in DC found the slightest gap between messages. For those of you who are skeptical of this idea, my question to you is: what is the actual risk? If we can show a unified front with the two organizations that represent banking in Kentucky, we model for our elected officials, who are increasingly and consistently divided along party lines, what can be achieved when leaders come together.
UNITED IN SERVICE
We need lawmakers to cross the apparently vast expanse of the aisle to do what makes sense for the industry. At the top of the list would be to lobby for a legislative mandate that complicated regulations that resulted from the 2008 financial crisis be tailored to meet the complexity of the operations of the bank; regulations based on complexities is the only way we, as bankers who serve the very community we live in, can best serve our customers. I think now more than ever we need to display the strength that is only gained by uniting. United in Outreach I want to work on bringing in to the fold any banks throughout the state who are not members of the KBA. Although that is a low single digit number, the onus is on us to communicate and educate Kentucky banks which are not currently in our ranks. This is not something I can do alone as Chairman, or we can do as a Board of Directors or even lay at the feet of our dedicated staff . This is an initiative that we all must participate in, and over the course of a year I’ll lay out some suggestions on this initiative. United in Purpose As your Chairman these are just two of the goals I have for 2016-17 that can be achieved with a unity of purpose. There will be others I am sure, and we’ll talk about them in this column. Until then I want to express my gratitude. I am honored to be your Chairman. I look forward to working together to improve our Association and the financial industry in the Commonwealth. “United We Stand, Divided We Fall” - Kentucky’s state motto
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 5
»STRAIGHT»TALK»
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My KBA Convention TOP TEN Not in order of value or importance, but here goes...
We just concluded the 125th Annual Convention of the Kentucky Bankers Association, but the celebration doesn’t stop. We will continue to celebrate and applaud the successes and strength of the collective banking industry in our great Commonwealth. We have gratitude for the forethought of our ancestors for realizing the value of strength through unity.
hear and that was no less true this year when politics as usual appear to be on hiatus. Dr. Sabato did not go so far as to make an actual prediction about the Presidential election, but he gave us some interesting insight as to his interpretation of the driving forces in voters’ minds.
7. 2016-2017 Installations. It is always as exciting to welcome new board members, But, not to get too far off point, there was lots of applause, as it is sad to see the conclusion of those whose terms are celebration and memories made when the Annual Con- ending. This year, the addition of J. Brent Bugg, Fredonia vention convened at The Breakers in Palm Beach, Florida. Valley Bank, Kari R. Gough, Winchester Federal Bank, Dan M. Harbison, Farmers National Bank of Scottsville, Lloyd ESPN’s Jay Bilas was a keynote speaker and, despite his alleC. Hillard, Jr., Farmers Capital Bank, James A. Hillebrand, giance to Duke and Coach K, he provided attending memStockyards Bank & Trust, Timothy A. Barnes, Hometown bers with valuable insight about how his life experiences Bank of Corbin as Vice Chairman, and Mike Mercer, First have taught him life lessons that are beneficial to everyone. State Bank, as Chairman is no different. After reflecting on the points he made, I thought that it would be appropriate to ruminate on my list of KBA Top Ten moments (not in order of value or importance) from the 2016 KBA Annual convention: 10. Tammy, Natalie, Angie and Josh. This is the KBA Annual Convention Team. They work together throughout the year to pull off our big show. This year they pulled out all the stops. Longtime convention coordinator Melba Stewart was even called in to help sift through the archives. Of course, the success of our Annual Convention always requires the experience and dedication of the entire KBA staff. But, this first string team paved the way for all of the positive comments made by our members. 6. Congressman Andy Barr. Congressman Barr, Kentucky’s 6th Congressional District, is one of, if not the most vocal and knowledgeable advocates 9. Moderator John T. McGarvey, Esq. John’s liberal personal politics aside, he clearly gets our in- for community banks in Washington DC. He has made it dustry and understands the issues and struggles that our his mission, since he was first elected, to educate others on members face daily. That understanding is key to John’s out- the difference between Main Street and Wall Street and the standing management of the speakers, including the ques- need for scaled regulatory oversight. tion and answer sessions. He makes it look easy to hit all the 5. Louis Prichard. right beats and set the tone for the discussions that followed Now Past Chairman of the KBA, Louis Prichard, of Kenour speakers. tucky Bank in Paris, KY, gave a touching and predictably thoughtful year in review presentation. Louis has provided 8. Sabato’s Crystal Ball. notable guidance to the KBA during his year as Chair and Dr. Larry J. Sabato is the Director of the University of Virwe look forward to his continued participation in KBA acginia’s Center for Politics. Dr. Sabato is always interesting to tivities. continued on next page 6 KENTUCKY BANKER | JULY
2016
www.kybanks.com
KBA 1891-2016
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continued from the previous page
ly drew my attention. He said “be the teammate you want to play with.” When you have a team dedicated to this idea, magical things can happen. His experiences on the court and in the booth at ESPN, and the toughness he learned as a player, coach, lawyer and ESPN analyst, contains lessons we all can benefit from, despite his misdirected allegiance.
4. History/Memories of the KBA. We were surrounded by constant reminders of how important our banking industry is, and has been, to the continued success of the communities in the Commonwealth of Kentucky. Whether through speeches and presentations, posters and photos of past KBA events or memories of those who have been to decades of KBA Conventions, this year we reflected on how lucky we are to serve our industry, our members and their customers, and our communities.
1. Party on the Moon! The after party, and the band we brought in, Party on The Moon, was off the hook, as the young people say. They were prime-time-players, PTP-ers to quote Dick Vitale. The band, from the minute they took the stage, had our attention. They played for a solid three hours, pulling member 3. Retirements. Somehow I always expect the “greying” of America to miss after member on to the dance floor. At one point we had the our association and industry. But, it seems a regular occur- past chairman, the current chairman, and the chairman in rence these days to hear of bankers retiring. I wish that we waiting all on the dance floor getting down. It was reported could spotlight each of them. While that may not be pos- that Tim Barnes registered a legendary performance on the sible, it is important to mention two retirements that will dance floor. Josh has pictures. He is willing to sell them to impact our Association and our members as a whole. Don the highest bidder. Mullineaux has announced his retirement. While I know that he will fill his new found freedom with valuable ventures, he will be sorely missed at KBA events. Paula Cravens Sturgeon has also announced her retirement, effective 1/1/2017. Paula has been the cornerstone of KBA education throughout my tenure at the KBA. Paula has a magical knack for identifying the programs needed for our members’ success. Again, it is certain that she will fill her time with worthwhile activities centered around her faith and her family, but the KBA offices won’t be exactly the same. 2. Jay Bilas.
Celebrating 125 Years
This former Blue Devil, pulling from his experience in basketball, law and television, shared stories from his days as a Dukie. His recent book, Toughness, outlines his philosophy and opinions concerning modern sports culture and the business world. In his talk to the convention he threw out a maxim that particular-
So that’s it, that’s my list. I am sure I missed lots of moments. What are yours? Let us know. Here’s how. Like us on Facebook (@kybankers) and post your list of KBA Top Ten moments. I’m sure your list will be “Awesome baby!”
www.kybanks.com
Ballard Cassady, KBA CEO bcassady@kybanks.com JULY 2016 | KENTUCKY BANKER 7
my 2 cents
And then some
125
Ever Feel Like PigPen? Debra Stamper KBA Executive VP & General Counsel dstamper@kybanks.com Do you ever feel like PigPen, from the Charlie Brown cartoon? PigPen has declared more than once that he is a dirt magnet. It doesn’t matter how clean he is or how hard he tries to avoid dirt, it finds him. I feel like that is the predicament faced by Main Street bankers every day. It does not matter that traditional banks did not cause the 2008 crisis. It does not matter that small dollar loans made by traditional banks to customers during bad times are made for the benefit, not to take advantage, of the customer. It does not matter that traditional bankers know their customers and have no interest in setting up fraudulent accounts for the sake of sales numbers. It does not matter, because the dirt of those things still attach to us as if we are dirt magnets! The most recent dirt, of course, is the Wells Fargo fraudulent account news. Despite the fact that banking regulators did not find the fraud at Wells Fargo and despite the fact that there are many legitimate and well run incentive programs in other banks, it is likely that all banking regulators will begin a full scale investigation of all incentive plans…and will probably look for regulatory authority for to shut down or severely limit such programs. In true dust storm fashion, Wells Fargo executives are scurrying to find actions that will assuage legislators and others. These same executives who claim to have not known about the practice have stated that it was so widespread that shutting down the incentive program was the only way to ensure the fraud was stopped. That is the slippery slope that regulators may 8 KENTUCKY BANKER | JULY 2016
“This is only the beginning.” use to justify shutting down legitimate programs. The OCC has already promised higher scrutiny on medium and large banks. In the meantime, the Justice Department is investigating Wells Fargo and the focus will likely be on the individual employee level. It has been suggested that the first investigation will be to determine which executives were aware of the practice of opening phony accounts as part of an incentive program. Regardless of the outcome of the Wells Fargo investigations, we can be sure that this will create the slippery slope by which any decision is made will find its way into your bank. So, right now is the time to review ALL incentive compensation arrangements. Sales goals should not be so difficult to reach, nor the payoff so great that employees are willing to take risks to achieve them. Further, there should be a robust internal system of checks and balances to ensure that customers agreed to the “sale” and that undue pressure was not used. Guidance on Sound Incentive Compensation Policies was issued in June 2010. The guidance is just that and contains no bright line rules. However, some suggestions for compliance might include: program be managed and overseen at a central point (maybe HR); complaints are reviewed against the program as just one internal check; investigate employee complaints about the program; regular monitoring of the program and targeted monitor for red flags(such as an employee who regularly gets much higher numbers than others). This is only the beginning.
www.kybanks.com
UNITED IN SERVICE
KBA Annual Convention 1891-2016
Celebrating 125 years
Built on Tradition Focused on the Future The Breakers Palm Beach Florida
KBA Annual Convention
12 KENTUCKY BANKER | JULY
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KBA 1891-2016
KBA Annual Convention
Celebrating 125 Years
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 13
KENTUCKY BANKERS ON THE MOVE
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Brandon Drake
Don Leibee
Brandon Drake has joined Farmers National Bank in the role of Senior Vice President, Head of Sales and Service. Drake has over 17-years of financial services experience. He is a graduate of Midway College with a degree in Business Administration.
Bank of Cadiz & Trust Co. has announced the retirement of Don Leibee, President/CEO effective June 30, 2016. Don has served as President for the past 14 years and during that time, has grown the bank from a $75 million to a $110 million financial institution.
John Chandler
Kevin Atwood
City National Bank is pleased to announce the promotion of John Chandler to First Vice President. Chandler is a graduate of West Virginia University and has been with City National Bank for 26 years.
Bank of Cadiz & Trust Co. is pleased to announce the appointment of Kevin Atwood as President/CEO effective July 1, 2016. Kevin holds over 30 years of banking experience and has been with Bank of Cadiz & Trust Co. since 2004. He is a graduate of Western Kentucky Universtiy.
Catherine Johnston
Ricky Peterson
City National Bank is pleased to announce the promotion of Catherine Johnston to First Vice President. Catherine holds a bachelor’s degree and MBA from West Virginia University and has been with City National Bank for 7 years and in banking for 26 years.
Community Trust Bank is pleased to announce the promotion of Ricky Peterson to Vice President, Commercial Loan Officer. Ricky has been with Community Trust Bank for more than 11 years. He is a graduate of the University of Kentucky, as well as a graduate of the Kentucky Bankers Assocation’s General Banking School.
Angela Campbell
Jeremy Brown
Central Bank announces the promotion of Angela Campbell to BSA/AML Officer. Angela is a graduate of Henry Clay High School and has been with Central Bank for 32 years. She has worked in security since 1996 and holds the distinction of being certified as both an Anti-Money Laundering Specialist and a Financial Crimes Specialist.
Kentucky Bank announces Jeremy Brown as Vice President, Branch Administrator for all 17 Kentucky Bank offices. Jeremy is a US Army Veteran, has 18 years of banking experience, and will graduate from Stonier School of Banking in 2017.
John Miner
Sherry Mathis
Central Bank announces the promotion of John Miner to Auditing Officer. John is a graduate of Eastern Kentucky University and holds a bachelor’s degree in finance. He brings nearly 17 years of banking experience to his new role, 4 of which were spent as Senior Staff Auditor for Central Bank.
Kentucky Bank announces Sherry Mathis as Market President for the Eastern Kentucky Region. Sherry has been serving as Market President of Elliott County and will now assume the responsibility for Rowan County as well. She is a graduate of Morehead State University and has been with Kentucky Bank for 32 years.
Kathy Moore
Michelle Culbertson
Central Bank announces the promotion of Kathy Moore to Retail Banking Officer at the Keene Road location in Nicholasville. Kathy attended both Marshall University and Huntington Bible Institute. She has been with Central Bank for nearly 13 years.
WealthSouth, Farmers National Bank’s wealth management unit would like to announce the promotion of Michelle Culbertson to Vice President, Operations Manager of WealthSouth. Michelle has over 18 years of financial services and trust experience and has been with the organization since 2013. She is a graduate of Trevecca University.
TO ANNOUNCE A PROMOTION: EMAIL PHOTOS & ANNOUNCEMENT TO jfischer@kybanks.com A promotion announcement in KENTUCKY BANKERS ON THE MOVE consists of: banker name, bank name, branch, new position, previous position, college and hometown. Submissions are published based on space and editorial approval. 14 KENTUCKY BANKER | JULY
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Jesse Johnson
Rose Wheeler
Farmers National Bank announces the promotion of Jesse Johnson to Vice President, Commercial Loan Officer. Jesse is a graduate of the University of Kentucky, the Kentucky Bankers Association General Banking School, and the Graduate School of Banking at Louisiana State University. He is also currently participating in the Kentucky Bankers Association’s Emerging Leaders program.
Citzens Bank of Kentucky is pleased to announce the promotion of Rose Wheeler to Executive Vice President. Rose has been with Citizens Bank of Kentucky since 1980. The strength of Citizens Bank of Kentucky's cybersecurity is a direct result of her dedication and knowledge.
Sharon Keith
Angela Morris
Farmers National Bank announces Sharon Keith as Vice President, Loan Officer. Sharon has worked at Farmers National Bank for over 11 years and has over 30 years of banking experience. She is a graduate of the Kentucky Bankers Association’s General School of Banking and The Kentucky Bank Management Institute.
First Security Bank announces the hiring of Angela Morris as a Senior Human Resource Generalist. Angela comes to First Security Bank with extensive employee relations experience. She graduated from Columbia Southern University and is a certified Professional in Human Resources (PHR) as well as Society for Human Resource Management-Certified Professional (SHRM-CP).
Paul Purcell
Rhonda Wells
Farmers National Bank announces the promotion of Paul Purcell to Vice President, Commercial Loan Officer. Paul joined Farmers National Bank in 2009. He is a graduate of the University of Kentucky, as well as the Kentucky Bankers Association's General Banking School and Graduate School of Banking at Louisiana State University.
First Security Bank announces the promotion of Rhonda Wells to Vice President/Training and Development Coordinator. This new position is responsible for the oversight and development of training curriculum for all 150 employees. Rhonda has been with First Security Bank for 16 years.
Chris Davis
Krista Niehaus
Farmers National Bank names Chris Davis as Assistant Vice President Market Manager of the Lancaster Banking Center. Chris joined Farmers National Bank in 2015. He is a graduate of Eastern Kentucky University and received his master's degree from Union College.
First Security Bank announces the hiring of Krista Niehaus as the first Vice President/Sales and Service Manager for the bank. Krista has over 18 years of banking and sales management experience. She is a graduate of Western Kentucky University with a degree in business management.
Mike Bastin
Christy Carpenter
Farmers National Bank would like to announce that Mike Bastin, Vice President Loan Officer, has moved from the Stanford Banking Center to the Lancaster Banking Center. Mike has been with Farmers National Bank since 2003 and has been in the banking industry for over 40 years. He is a graduate of the University of the Cumberlands and the Kentucky Bankers Association's General Banking School, Consumer Lending, and Commercial Lending schools
Springfield State Bank is pleased to announce that Christy Carpenter has been named to the board of directors of the bank. Christy also serves as the Executive Vice President and CTO at Springfield State Bank. She brings 27 years of banking experience to her new role and has been with Springfield State Bank since 1989.
Crystal Gourley
Kevin Gallagher
Farmers National Bank would like to announce the promotion of Crystal Gourley to Portfolio Manager at the Lancaster Banking Center. Crystal has been with Farmers National Bank for over 15 years. She is a graduate of teh Kentucky Bankers Association's Essentials of Banking and General Banking schools.
First Security Bank announces the hiring of Kevin Gallagher as Vice President/Deposit Services Manager. Kevin comes to First Security Bank with more than 38 years of banking experience. He is a graduate of Indiana State University with a degree in Finance and earned his graduate degree from the University of Wisconsin.
TO ANNOUNCE A PROMOTION: EMAIL PHOTOS & ANNOUNCEMENT TO jfischer@kybanks.com A promotion announcement in KENTUCKY BANKERS ON THE MOVE consists of: banker name, bank name, branch, new position, previous position, college and hometown. Submissions are published based on space and editorial approval. Celebrating 125 Years
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 15
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Melissa Meriwether
Ike Nichols
First Security Bank announces the hiring of Melissa Meriwether as a Deposit Operations Specialist I. Melissa has over 8 years of banking operations experience. She is a graduate from Owensboro Community and Technical College.
FNB Bank has selected Ike Nichols as Vice President/ Loan Officer in the McCracken County market. Ike is a graduate of the University of Kentucky, the Kentucky Bankers Association General Lending School, and the South Eastern School of Commercial Lending.
Kevin Howard
Sam Mahan
First Security Bank announces the hiring of Kevin Howard as a Deposit Operations Specialist I. Kevin has over 10 years experience in customer service, supervision, security, training, and logistics. He served as a Sergeant in the U.S. Army and is a graduate from Ivy Tech State College in Evansville, IN. He also has his Associates Degree from Owensboro Community and Technical College.
FNB bank has selected Sam Mahan as Vice President/ Commerical and Ag Loan Officer of the Mayfield-Graves County market. Sam has over 12 years of banking experience. He is a graduate from Tennessee Tech University and is currently attending the Graduate School of Banking at Louisiana State University.
Lauren Lovely
Christie Mann
Central Bank is pleased to announce the promotion of Lauren Lovely to Personal Trust Officer. Lauren brings 8 years of experience at Central Bank to her new role. She is a graduate from Transylvania University.
First Citizens Bank announces that Christie Mann has been promoted to Customer Service Representative at the Elizabethtown location. Christie has been working as a drive-thru teller at the Ring Road location for a year. She has more than 20 years banking experience.
John Roach
Timothy Yessin
Farmers Capital Bank Corporation would like to announce the appointment of John Roach as a new Director to its board. John practices law at Ransdell, Roach, & Royse, PLLC. and is currently the Vice Chairman of the Kentucky Horse Racing Commission. He is a graduate from the University of Kentucky College of Law, with an undergraduate degree from Washington and Lee University.
WealthSouth, Farmers National Bank’s wealth management unit would like to announce that Timothy Yessin has joined the Lexington office as Vice President, Wealth Management Advisor. Timothy has over 23 years of financial services experience. He is a graduate of the University of Kentucky and is involved with numerous non-profit boards in Central Kentucky.
Jodie Hansen
Kimberly Burns
FNB Bank announces that Jodie Hansen has been selected as Vice President Officer. Jodie has been with FNB Bank since 2010 and serves as the Office Manager for the Mayfield Main and Wingo locations of the bank. She is a graduate from Southern Illinois University at Carbondale and is also a graduate of the Mayfield-Graves County Chamber Leadership Program.
First Citizens Bank announces the promotion of Kimberly Burns to Branch Administrator. Kimberly has been with First Citizens Bank since 2014 and will continue working in the Radcliff Office in her new capacity as Branch Administrator.
Carolyn Todd
Jackie Summitt
FNB Bank announces that Carloyn Todd has been selected as Vice President Officer. Carolyn has over 27 years of banking experience and currently serves the Murray-Calloway County market area as a Relationship Manager. She is a graduate of Murray State University.
First Citizens Bank announces the promotion of Jackie Summitt to Retail Assistant Manager. Jackie has been with First Citizens Bank since 2013. This is a new position that will enable the bank to provide additional management support to all of its branches as well as to provide dedicated, hands-on management of part-time staff.
TO ANNOUNCE A PROMOTION: EMAIL PHOTOS & ANNOUNCEMENT TO jfischer@kybanks.com A promotion announcement in KENTUCKY BANKERS ON THE MOVE consists of: banker name, bank name, branch, new position, previous position, college and hometown. Submissions are published based on space and editorial approval. 16 KENTUCKY BANKER | JULY
2016
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Andy Miller
DeLisa Knopp
Citizens Bank is pleased to announce the addition of Andy Miller as Senior Vice President and Office Manager of their Hartford location. Andy brings with him 25 years of banking experience and is a graduate of Western Kentucky University, as well as the Stonier Graduate School of Banking.
Citizens Bank & Trust Company is pleased to announce the promotion of DeLisa Knopp to Vice President. Lisa has 34 years of banking experience and has worked at Citizens Bank and Trust Company for 29 years.
Rhonda Owens
Pam deRoche
CFSB recently promoted Rhonda Owens to Assistant Vice President. Rhonda has been with CFSB for 15 years and has a diploma from the Barret School of Banking in Memphis. This move continues to ensure customer service and secure the future of CFSB.
First Citizens Bank is pleased to announce the hiring of Pam deRoche as Market Lender and Business Development Officer. Pam has over 35 years of banking experience, working the last 12 years with First Federal and Your Community Bank. She will maintain a lending presence in all of the bank's Hardin County locations.
Teriea Graves
Shane Ensminger
Citizens Bank & Trust Company is pleased to announce the promotion of Teriea Graves to Assistant Vice President. Teriea began her career with Citizens Bank & Trust Company in 1990.
Central Bank is pleased to announce the promotion of Shane Ensminger to Vice President, Director of Security. Shane has served as the BSA/AML Investigator since 2015 and has an extensive background in law enforcement. He is a graduate from Bethel University College of Police Science.
Josh Myers
Jason McFarland
Citizens Bank & Trust Company is pleased to announce the promotion of Josh Myers to Vice President. Josh has 12 years of banking experience and has been with Citizens Bank & Trust Company for 6 years. He is a graduate from the University of Kentucky and the Graduate School of Banking at LSU.
First & Farmers National Bank would like to congratulate Jason McFarland on completing the Graduate School of Banking at Louisiana State University. Jason is also a graduate from the Kentucky Bankers Association's GenBanking School and holds a bachelor's degree in Agriculture Business from Western Kentucky University.
Lisa Rodgers
Amy Isola
Citizens Bank & Trust Company is pleased to announce the promotion of Lisa Rodgers to Assistant Vice President. Lisa has worked for Citizens Bank & Trust Company for 21 years.
Farmers National Bank would like to announce the promotion of Amy Isola to Executive Vice President of Human Resources. Amy has worked at Farmers National Bank since 1998 . She is a graduate of Mary Baldwin College, the Kentucky Bankers Association's General Banking School, and the Graduate School of Banking at Louisiana State University.
Vickie Day
Blake Vandermeulen
Citizens Bank & Trust Company is pleased to announce the promotion of Vickie Day to Assistant Cashier. Vickie has worked for Citizens Bank & Trust Company for 17 years.
The Paducah Bank & Trust Company would like to announce the hiring of Blake Vandermeulen as Vice President and Commercial Relationship Manager. Blake has 15 years of banking experience and is a graduate from the University of Kentucky.
TO ANNOUNCE A PROMOTION: EMAIL PHOTOS & ANNOUNCEMENT TO jfischer@kybanks.com A promotion announcement in KENTUCKY BANKERS ON THE MOVE consists of: banker name, bank name, branch, new position, previous position, college and hometown. Submissions are published based on space and editorial approval. Celebrating 125 Years
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 17
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Patsy Wray
Lucy Coburn
CFSB recently promoted Patsy Wray to Mortgage Lender at their McCracken County Banking Center. Patsy has been with CFSB since 2007. She attended West Kentucky Community and Technical College, as well as the Kentucky Bankers Association's Essentials of Banking School.
Traditional Bank is pleased to announce the promotion of Lucy Coburn to Consumer Loan Officer. Lucy has been with Traditional Bank since 2007 and brings extensive experience to her new role.
Matthew Joefreda
Leisha Maynard
WealthSouth, Farmers National Bank’s wealth management unit would like to announce the hiring of Matthew Joefreda as Vice President, Commercial Relationship Manager. Matthew has over 32 years of experience in the financial services industry. He is a graduate of the University of Dayton.
Citizens Bank of Kentucky would like to announce Leisha Maynard as its incoming President and CEO as of January 1, 2017. Leisha joined Citizens Bank of Kentucky in 2009. She brings with her several years of experience in the banking industry and is a graduate from the University of Kentucky.
Quin Broadbent
Jennifer Somerville
WealthSouth, Farmers National Bank's wealth management unit is pleased to announce the promotion of Quin Broadbent to Assistant Vice President, Portfolio Manager and Investment Officer. Quin joined WealthSouth in 2013 and is a graduate from Centre College and the University of Kentucky's Masters in Business Administration Program.
Citizens Union Bank would like to announce the hiring of Jennifer Somerville as Senior Vice President, Loan Operations. Jennifer has 21 years of banking experience and is a graduate from Ball State University.
Karen Glenn
Cindy Sanders Town & Country Bank and Trust Co. would like to announce the promotion of Cindy Sanders to Vice President and Loan Officer. Cindy has been with TCBT for 33 years. Her extensive knowledge of banking aids customers in feeling comfortable and confident when applying for a loan.
Karen Glenn, President & CEO of First United Bank has been named to the list of “25 Women to Watch in Banking” by American Banker. Karen will be attending an event in New York City in October to honor all of the “Women in Banking” nominees. This list of successful leaders in the banking industry is released annually by American Banker.
Bonus Bankers on the Move: Convention Photo Booth
Carla Smith Town & Country Bank and Trust Co. would like to announce the promotion of Carla Smith to Assistant Vice President and Loan Officer. Carla joined TCBT in 2015 and brings with her 12 years of banking experience.
Marilyn Blair Ford First Citizens Bank is pleased to announce that Marilyn Blair Ford has been promoted to President & CEO. Marilyn has been with First Citizens Bank since 1982. She is a graduate from Western Kentucky University, Kentucky Bank Management Institute, and the Graduate School of Banking of the South.
TO ANNOUNCE A PROMOTION: EMAIL PHOTOS & ANNOUNCEMENT TO jfischer@kybanks.com A promotion announcement in KENTUCKY BANKERS ON THE MOVE consists of: banker name, bank name, branch, new position, previous position, college and hometown. Submissions are published based on space and editorial approval. 18 KENTUCKY BANKER | JULY 2016
www.kybanks.com
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Calling All Photographers The 2018 Scenes of Kentucky photo contest is now open! Each year we like to celebrate the beauty and splendor of the Commonwealth by showcasing your photos in our calendar. If you or a family member is an amateur photographer and would like to have the opportunity to have your photos considered, simply visit our website and download your entry form(s). All photos submitted are judged by an outside panel. Send us your photos of fesitvals, fairs, nature, or anything that shows the history and beauty of Kentucky. Deadline to enter photos is December 1, 2016. For more information, please contact Angie White at awhite@kybanks.com.
Photo taken by: Jonathon Lewis, Commercial Bank of Grayson (Winner of the 2017 Scenes of Kentucky calendar cover)
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Set Your Board of Directors Free with CSI’s Secure Connect App by Christy Rikel
access and review each other’s comments, and the app saves both the original version of the document and the annotatWeb-based portals like CSI Secure Connect offer your ed copy with a date and time stamp. In addition, offline usboard of directors a secure, centralized way to communi- ers can: Access the User Directory, utilize the Search feature cate with each other as well as manage a variety of sensi- to quickly locate information within a document and easily tive materials. Through Secure Connect, they also can view find annotated and bookmarked pages. all current and historical documents, participate in secure online voting and discussion threads, and review efficient, Adding to its usability, CSI’s Secure Connect app allows paperless board packets. your board secretary and other administrators to remove information from their app after But, what does a board member do backing up the documents to the if they need to view the bank’s confiwebsite and archiving them there. dential documents at times they are Administrators also can determine without access to the Internet or Wiwhich documents are displayed Fi? With CSI’s Secure Connect app in the app, and remotely reset acon their iPad, it’s practically business counts and wipe a device should it as usual. CSI’s Secure Connect app, be lost or stolen. available as a free download, provides users the ability to work offline, because the documents automatically down- And of course, if needed, the board can access the full webload into the device as it syncs with the portal. So, with the site portal through the app once connected to Wi-Fi or the app, directors can securely view such portal-housed docu- Internet. So, with CSI’s Secure Connect app, your board of ments as meeting minutes, business proposals or loan re- directors can complete important work in a beach chair, the view committee notes, even without a wireless connection. passenger seat or the couch, without compromising convenience and, more importantly, the security on which they’ve For the end-user, CSI’s board portal app not only provides come to depend from web-based portals. a more simplified view of the portal, but also allows for actions that can’t be completed on the browser version. For Christy Rikel is CSI’s Web Solutions Product Manager. In her example, on the app they can call up documents like the role, Christy is responsible for CSI Secure Connect and CSI bank’s financials for the month, and using touch-screen DesignPro products, and coordinates customer implementaannotation tools, make handwritten notes, highlight im- tion, training, ongoing product enhancements and support. portant items, circle typos or include a variety of additional She can be reached at christy.rikel@csiweb.com. commentary—all without Wi-Fi. This is particularly convenient with an iPad Pro and its pencil tool. And once a CSI is a Preferred Service Provider of the Kentucky Bankers wireless connection is reestablished, the marked up docu- Association. For more information on CSI Secure Connect, ments can automatically upload into the Secure Connect contact Jonathan E. Chandler at jonathan.chandler@csiweb. portal for archival purposes. Further, board members can com or (888) 494-8449 Ext. 17279. CSI TESTIMONIAL “The Cecilian Bank has used Secure Connect for several years, and we are extremely pleased with how Secure Connect has improved communication between all banking centers. Secure Connect is convenient and easy to use. Using Secure Connect saves time when preparing for our board meetings and is a cost savings by eliminating the need to print paper documents. Secure Connect has been an excellent solution for our bank!” Beth Cox, VP Human Resources, The Cecilian Bank, Elizabethtown, KY 20 KENTUCKY BANKER | JULY
2016
www.kybanks.com
KBA 1891-2016
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Celebrating 125 Years
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 21
WOMEN IN BANKING WORKSHOP
I believe it is simply a blessing to fill up our lives with incredible women who have passion, compassion, character, perspective and vision all nicely packaged with humor, creativity, enthusiasm, laughter and joy. In banking, we focus a lot on the bottom line. The bottom line is simple: We women love to inspire, live life to the fullest and dream without boundaries.
Held this past August at the Marriott Louisville East, the Women in Banking Workshop’s program was hosted by local television news icon Melissa Swan (below at left). Her opening presentation was entitled “Striking a Balance” where she described her life as professional woman, wife and mother.
Other speakers included Diane Fahrbach with Health & Wellness Solutions for working women. Jodie Beach’s topic was “Etiquette in the Workplace.” Lorie Rosenberg presented “It’s Time to Go Create You!” Mitch Barnhart, the University of Kentucky’s athletic director (below at right), gave a motivational message to the women in attendance.
Lanie Gardner
Community President First Southern National Bank KBA Board Member representing KBA Education 2000 graduate of the KBA’s Essential Banking School 2002 graduate of the KBA’s General Banking School
22 KENTUCKY BANKER | JULY 2016
www.kybanks.com
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Conway Named CEO of Magnolia Bank Eric Garrett, Chairman of the Board of Magnolia Bank, has “This is an exciting opportunity. I get to work for a family announced the employment of Scott T. Conway as Chief owned business, which has been in existence for 97 years, and it happens to be a community bank. Many financial Executive Officer of Magnolia Bank. institutions claim to be a community bank, but at MagnoScott brings a 26-year banking career to Magnolia from lia Bank, the shareholders actually work and live in Hardin PNC Bank and First Citizens Bank of Elizabethtown, rising and LaRue Counties. For them, banking is personal, local to the position of Chief Executive Officer of First Citizens. and about relationships.” Ron Sanders will remain as President of Magnolia Bank, as well as President of Magnolia Bancshares, Magnolia Bank’s holding company. Scott will be located at the Magnolia Bank office at 651 West Dixie Avenue in Elizabethtown.
Scott received his undergraduate degree in finance and marketing from Georgetown College and Masters in Business Administration from Bellarmine University.
Scott’s civic involvement includes board chairman of United Way of Central Kentucky and board member of both Sanders commented, “Scott is a perfect fit for our bank. We Elizabethtown Educational Foundation and Frazier Rehab plan on growing significantly in our market by sticking with our roots. We are a locally focused, locally owned commuPatient Advisory Board. nity bank. Scott brings the education, experience, ethics Scott and his wife, Jane, reside in Elizabethtown and have and management skills to lead our bank to the next level.” two children, Ann-Morgan who is a sophomore at the University of Louisville, and Madison who is a senior at Ha- Magnolia Bank is a $200 million dollar community bank nover College. Jane is a Spanish teacher with the Elizabeth- founded in 1919 and is rated “Five Stars” by the Bauer Financial rating service, their highest rating. town Independent School System.
50
+
diffeRent ceRtifications
5
75
+
financial institution clients
McM offices in 3 states
25
+
consultants specializing in HR, it, succession planning and business opeRations solutions
100
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tH
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We’re GroWinG McM continues to expand its presence in northern Kentucky and cincinnati with the merger of elliott davis decosimo’s cincinnati office, effective July 1, 2016. this follows our merger with cooney faulkner & stevens in 2015. this expansion will allow McM to better serve our financial institutional clients in this critical and fastpaced market.
Henry Hawkins, CPA financial institutions services director henry.hawkins@mcmcpa.com
Learn more about what MCM can do you for you and your financial institution at www.mcmcpa.com.
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Expert guidance, beyond the bottom line.
First Annual KenBanc Cup Valhalla Golf Club
The Immortals: Topmiller, Berry, Carrico and Clemmons Win Cup
The first KenBanc Cup at Valhalla Golf Club, site of the 2008 Ryder Cup, pitted the top teams from the two KBA Insurance Solutions Banker Appreciation Golf Outings. The top team at Valhalla (champions pictured below) consisted of Jared Topmiller, First Southern National, Central City; Wade Berry, Farmers Bank, Marion; Kevin Carrico, First Security Bank, Owensboro; Brian Clemmons, South Central Bank, Tompkinsville. The victorious team will be engraved on the coveted KenBanc Cup trophy; their names will be written in the history books and emblazoned upon the hearts and minds of bankers throughout the ages.
A team consisting of James Hay, Peoples Bank of Kentucky, Flemingsburg; Ben Wathen, Citizens Union Bank, Shelbyville; Howard Elam, Commercial Bank of Kentucky, West Liberty; Lee Wilson, Citizens Bank of Kentucky, Paintsville made their bid at immortality.
Four teams competed for the glory of the KenBanc Cup. A team consisting of Kyle Hensley, United Southern Bank, Hopkinsville; Michelle Coleman, Bank of Edmonson County, Brownsville; Brian Scott, Citizens Bank of Cumberland, Burkesville; Tommy Smith, American Bank, Bowling Green tempted fate.
The final team comprised of Brandon “B” Maggard, KBA, Smoothville; Tyler Crum, Citizens Bank of Kentucky, Paintsville; Tommy Booth, Middlefork Insurance, Booneville; Greg Dawson, Kentucky Bank, Paris took a swing at eternity’s fast ball, and whiffed.
“This was the highlight of my year,” said Howard Elam (Commercial Bank, West Liberty). “I don’t get to do this very often. I can’t thank the KBA and KenBanc Insurance enough for allowing us to play out here for free! It was a really special day.”
Chuck Maggard, KenBanc Insurance President and CEO, hands the KenBanc Cup to the championship team. 24 KENTUCKY BANKER | JULY 2016
www.kybanks.com
Wade Berry Farmers Bank, Marion
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With KBA endorsed, Deluxe Strategic Sourcing [DSS], KBA Let Deluxe Guarantee Your Savings members can now reduce your total procurement-related costs by 22% to 28% annually. Procurement experts from DSS can provide you with a free, no obligation analysis that guarantees your total procurement savings. The analysis involves an in-depth examinaWith DSS you achieve procurement savings in two ways: tion of your current purchasing requirements, administra1. Save money on the items you regularly buy for your tive overhead, spending and suppliers. institution, such as operational printing and office Take the First Step supplies, janitorial and break-room necessities, promotional items and more by leveraging the massive Schedule a 30-minute meeting, in person or via WebEx, to buying power of Deluxe. Typical savings: 12% to 15%. learn more about DSS and the procurement analysis process. 2. Save on resources related to managing your procurement operation, like labor and space, by relying on Contact KBA’s Selina Parrish at (502) DSS for supply and inventory management. Typical 736-1282 or sparrish@kybanks.com to savings: 10% to 13%. schedule a meeting to begin saving today!
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A Tribute to Margaret Campbell Director, Shareholder and Friend This year, Middlefork Financial Group (Hyden Citizens Bank, Farmers State Bank and Farmers & Traders Bank) experienced the loss of a great advocate, supporter and friend when Margaret Campbell passed away. Her dedication to our organization and passion to provide a positive impact to the communities we serve and our employees is immeasurable and long lasting. Her work with the Governor’s Scholar program also impacted many young people throughout the Commonwealth who were given the opportunity to explore and grow their knowledge of a bigger and brighter world. The impact of all she touched is beyond the adequacy of words or tribute.
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Bert Ely’s FARM CREDIT WATCH
Three FCS Associations Moving Ahead with Their Merger
by Bert Ely, American Bankers Association As the June FCW first reported, three large, midwest FCS associations are moving forward with their planned merger; regulatory approval by the Farm Credit Administration (FCA) is almost certain. They are AgStar, serving eastern and southern Minnesota and northwest Wisconsin; Badgerland Financial, which serves southern Wisconsin; and 1st Farm Credit Services, which serves northern and western Illinois. The merged institution will serve 144 counties spreading from the northern tip of Minnesota to just north of St. Louis. Rod Hebrink, the current AgStar CEO, will lead the merged association, which will be called Compeer Financial and headquartered in Sun Prairie, Wisconsin, not far from Badgerland’s present headquarters and about midway, north and south, in the combined territory.
Congress created 100 years ago or that existed even a few decades ago. FCS has dramatically increased its share of farm debt
FCW readers are keenly aware of how rapidly FCS lending has grown in recent years – its total loans more than doubled from year-end 2005 to year-end 2015, rising from $106 billion to $236 billion. Less well understood is the extent to which the FCS has increased its share of total farm debt. As the chart shows, below, since 2000 the FCS share of total farm debt has increased by nearly 50%, rising from 28.3% to 40.4%. The FCS share of debt secured by real estate has risen even higher, to nearly 50%. The higher share attributable to FCS real estate lending, relative to the FCS’s non-real estate lending, reflects the greater tax advantage the FCS as a real estate lender – its profits from real estate lending are Based on June 30, 2016, numbers, Compeer would have had exempt from all corporate income taxation while its profits $18.5 billion in assets, making it the third largest FCS asso- from non-real estate lending are subject to federal corpociation, behind Omaha-based FCS of America ($25.4 billion rate income taxes. The leveling off in the growth of the FCS’s of assets) and Louisville-based Farm Credit Mid-America market share in recent years probably reflects a narrowing ($22.4 billion). All three associations are funded by AgriBank, which is headquartered in St. Paul. The current CEO of Badgerland said that the goal of the merged association, “is not to be bigger, it is to be better.” However, given its large size and geographic spread, Compeer is a far different animal than the typical FCS association of several decades ago or as still exists in the area from Kansas south to Texas, which is served by 18 associations of varied sizes. Note, too, that the term Farm Credit or Farm Credit Services is absent from Compeer’s name, indicating its likely intent to expand further outside of agricultural lending. This merger will reduce the FCS to 72 associations, but the then three-largest associations will hold 36% of the total assets owned by FCS associations while the ten largest will hold nearly two-thirds of all association assets. Undoubtedly, the FCS merger wave will continue, leading to the formation of a relative handful of very large, multi-state mega-associations bearing no resemblance to the FCS that 30 KENTUCKY BANKER | JULY
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of the funding-cost differential between the FCS and private-sector lenders due to today’s very low level of interest rates. However, the FCS’s funding cost advantage will increase when rates begin to rise.
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Essentially, what has happened since 2000 is that the taxpayer-subsidized FCS has increasingly “crowded out” farm lending by taxpaying private-sector lenders. This crowding out has occurred without any public debate as to its desirability. The shift of farm debt from commercial banks to the FCS has had another unintended consequence – it has reduced the amount of loans that rural community banks can put on their books, which has undoubtedly been a factor driving consolidation among rural banks. Put another way, had the FCS’s market share held constant since 2000, commercial banks would be holding another $43 billion of farm loans on their books or servicing farm loans in that amount previously sold to Farmer Mac. How big a lender the FCS should be to American agriculture has become a pressing issue that Congress must address, and the sooner the better. The FCA adopts important regulatory review projects Twice a year the FCA updates its Regulatory Projects Plan – the regulations it proposes to study, revise, or even adopt over the next year. Here is the link to the list of the proposed and actual regulations in the FCA’s Fall 2016 Regulatory Projects Plan: http://www.fca.gov/law/perf_plan.html Some pending regulatory projects should be of particular interest to bankers. Bank review of insider loans This project will “consider whether the current regulations requiring [FCS] bank review of association insider loans is appropriate for the [FCS’s] current structure and serves to ensure compliance with applicable Standards of Conduct regulation.” As reported in the July FCW, I estimate that approximately 1% of the FCS’s total lending is to insiders – senior management and directors. Loans to insiders must be subject to closer scrutiny due to the great potential for abuse. Financing farm-related service businesses This review will determine whether these regulations “provide the appropriate framework for determining eligibility and purposes of financing for service providers, including service providers within local food systems.” This regulatory review must be carefully monitored to ensure that in the guise of financing urban farmers the FCA does not open the
Celebrating 125 Years
door to FCS financing of a broader range of service providers who serve non-agricultural customers. Territorial concurrence Presently, an FCS association cannot lend in another association’s territory without the other association’s consent. This review would determine whether “requiring notice or concurrence for loans extended in another association’s chartered territory are appropriate for the [FCS’s] current structure, lending practices and operating environment.” This review could revive the Horizons Project of a decade ago, which would have authorized FCS associations to engage in out-of-territory lending, unleashing unhealthy competition between associations. Similar entity authorities This study, to be conducted early next year, “would consider whether revised or additional guidance is needed to clarify the authorities of [FCS] banks and associations to participate in similar entity loans.” The FCS’s abuse, especially by CoBank, of its similar-entity authority to lend to Verizon, AT&T, and other investor-owned businesses has sparked great concern among members of the Senate and House Agriculture Committees. It will be interesting to see the extent to which the FCA proposes to rein in FCS lending to “similar entities.” Attribution rules This pending study “would consider whether to modify current attribution rules that are applied to determine when loans to a related borrower are combined and attributed to a borrower’s outstanding loans for lending and leasing limit purposes.” Given how credit problems can flow to parties linked by loan guarantees and shared ownership of assets, the FCS should err on the side of conservatism when combining credit exposures for the purpose of limiting credit exposures. “Due to [a] limitation of staff resources,” it appears that this most important project has been placed on hold. Bankers are continuing to send FCW reports of FCS lending abuses, such as FCS loans for rural estates, weekend getaways, and hunting preserves. Email reports of similar lending abuses in your market to: green-acres@ely-co.com
www.kybanks.com
JULY 2016 | KENTUCKY BANKER 31
What is the KBA’s Emerging Leaders Program? And, what do you think the KBA does? by Carrie L. Chaney 2016-2017 KBA Emerging Leader Branch Manager Citizens Guaranty Bank Richmond, KY
If our answers were unsure that morning, they were firm in our minds for our drive home. At orientation we were given a crash course in all things KBA by several staff members. We learned about the many products and services the KBA has to offer and the vendors they endorse. We were given a virtual tour of the KBA website, and an introduction to The KBA Emerging Leaders Program is a year-long course Kentucky Banker Magazine. We also became acquainted designed to prepare the next generation of banking leadwith HOPE of Kentucky and our KBPAC. It was a comers in Kentucky. Each class consists of nine members, and each member comes from a unique banking background. prehensive and efficient introduction to the KBA and all it strives to accomplish. Emerging Leaders attend various functions and trainings. The 2016 Emerging Leaders Program kicked off in June at the KBA office in Louisville. This year’s nine initiates, myself included, were welcomed and given a general orientation by KBA CEO Ballard Cassady. He opened orientation by posing this question: What do you think the KBA does?
I’ll admit, by the end of the first day, my head was spinning; but, I was also honored and incredibly excited to be a part of this group. By attending the KBA Annual Convention, and even more opportunities coming up over the next several months, I am looking forward to the journey ahead.
When it comes to the banking industry, KraftCPAs has the bases covered. Serving the banking industry for more than 50 years. Contacts: Wynne E. Baker Co-Industry Leader Financial Institutions Team 615-782-4230
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KBA Annual Convention
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KBA Annual Convention
Celebrating 125 Years
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PUT YOUR BANK ON THE MAP!
Spring Conference Griffin Gate Marriott Lexington, Kentucky April 17-19, 2017