Banker. Dave Dickson and his wife Memorie. The Arkansas Chairman of the Arkansas Bankers Association. Volume C, No.

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1 Convention Wrap-Up Locked in a Vault Environment for Bank Funding The Arkansas Banker Chairman of the Arkansas Bankers Association Dave Dickson and his wife Memorie Volume C, No. 5 May 2017 May 2017 The Arkansas Banker 1

2 ABA Live Events ABA Professional Development Live Events... Provide you with face-to-face interaction with an expert instructor! JUNE Key Ratio Analysis: Calculating the Numbers Correctly! Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists 8 Basic Personal & Business Tax Return Analysis Arkansas Bankers Association Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists 15 Cyber Security Road Show Hilton Garden Inn, Jonesboro Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors 14 Cyber Security Road Show Hampton Inn & Suites, Little Rock Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors 13 CyberSecurity Road Show The Chancellor Hotel, Fayetteville Who Should Attend: Information Security Officers, Information Technology Staff, Presidents, Vice Presidents, Board of Directors, Senior Managers, and Auditors. 27 Human Resources Conference Embassy Suites, Little Rock Who Should Attend: Human Resources Professionals & Consultants, Training Specialists, Human Resources Compliance Officers, Bank Personnel Directors, and Branch Managers JULY Implementing the Revised HDMA Rules Crowne Plaza, Little Rock Who Should Attend: Loan Officers, Compliance Officers, Loan Processors and Clerks, and Auditors Real Estate Lending Compliance Crowne Plaza, Little Rock Who Should Attend: Compliance Officers, Loan Officers, Loan Processors, and Auditors AUGUST Bank Management Seminar Hilton Branson Convention Center, Branson, MO Who Should Attend: Bank Directors, CEOs, Presidents, and Senior Management 22 Legal Issues of New Account Documentation Crowne Plaza, Little Rock Who Should Attend: Customer Contact Personnel, Internal Auditors, and New Accounts Officers For more information about ABA Live Events, log on to or call The Arkansas Banker May 2017

3 The Arkansas Banker Volume C, No. 5 May 2017 The Arkansas Banker is the official publication of the Arkansas Bankers Association. EDITORIAL OFFICE 1220 West Third Street Little Rock, AR Phone Fax EDITORIAL The Arkansas Banker seeks to reflect the banking news of Arkansas and other news of direct interest to the Arkansas Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Arkansas Bankers Association. Articles may be reproduced with written permission only. ADVERTISEMENT The publication of advertisement does not necessarily represent endorsement of those products or services by the Arkansas Bankers Association. The Editor reserves the right to refuse any advertisement. SUBSCRIPTION Subscription to The Arkansas Banker magazine, which began monthly publication in April 1917, is included in the membership fees to the Arkansas Bankers Association. MAGAZINE RATES Cover price is $5.95 each. Annual subscription rates are $40.00 for members and $60.00 for non-members. The Arkansas Banker (ISSN ) is published monthly by the Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR Phone: Periodical postage paid at Little Rock, AR. POSTMASTER: Send address changes to Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR CONTENTS COLUMNS DEPARTMENTS FEATURES 2017 ANNUAL CONVENTION 4 President s Column Bill Holmes 5 Washington Update Rob Nichols 6 Chairman s Column Dave Dickson 28 Professional Development 30 Banker News & Moves 22 The Environment for Bank Funding & Deposits in 2017 By David Still 24 Being Locked in a Vault or Branch Facility is No Laughing Matter By David P. McGuinn 26 Simmons Bank Helps Realize Dreams 8 Annual Convention Wrap-Up 18 Faces of the ABA: Board of Directors 20 Faces of the ABA: Slate of Officers May 2017 The Arkansas Banker 3

4 PRESIDENT S COLUMN Moving Ahead in 2017 So here we are, starting the second quarter of 2017: The basketball pigs finished strong with a near upset of North Carolina, the football pigs have been practicing for several weeks, installing a new defense; and the world is chugging right on ahead. I ve seen a lot of smiling faces lately, at our reformatted Convention, and many due to the renewed hope for reg relief. So, where is our association headed in 2017, and how did we do in 2016? The request for the remodeled Annual Convention came out of last year s Board of Director s planning retreat. The new venue, the new views, the Family Fun night and the great selection of speakers are all accomplishments that the staff has worked diligently on, and I think can be very proud of. We built a stronger Women in Banking Conference, developed a stronger grassroots program to reach our state s delegation, and advanced a rapidly growing social media presence; and these are only some of the accomplishments in what was a strong year for the Association. Our goal is to always be better next year than we were this year. For 2017 what do we think we should focus on? It is time to build more avenues to attract talent to our industry. We will do this by building better relationships with our universities and promoting banking careers to recent graduates. It may be time to look at creating a management training academy to help develop the next generation of Arkansas Bankers. We will also be taking action to become more technologically savvy. We know we can improve how our bankers lobby, both state and nationally, with our legislators. We want our website and information to be more accessible and easier to use; and most importantly, we know we have to find better ways to communicate with you. Finally, we have to continue to take a hard look at how we deliver our services to your banks. We are in a full review of our educational offerings. We are looking to see which ones may be come bi-annual offerings, what live events may need to go online, and what channel will best deliver a custom training program to you and your bank, in your bank. We are excited to be kicking off our year. As always let us know what you think we need to be doing. Thanks for being a banker. PRESIDENT & CEO BILL HOLMES ABA EXECUTIVE COMMITTEE DAVE DICKSON CHAIRMAN Union Bank & Trust Co., Monticello JUDY LAWTON TREASURER Heartland Bank, Little Rock ABA BOARD OF DIRECTORS JOHNNY ADAMS GROUP 2 First Security Bank, Conway PHIL BALDWIN GROUP 2 Citizens Bank, Batesville JEFF BRECKLEIN GROUP 1 Integrity First Bank, Jonesboro JIM CARGILL GROUP 2 Arvest Bank, Little Rock GENE CRAWFORD GROUP 5 First National Bank of Crossett, Crossett 4 The Arkansas Banker May 2017 CATHY OWEN CHAIRMAN-ELECT Eagle Bank, Little Rock SEAN WILLIAMS PAST CHAIRMAN First National Bank of Wynne, Wynne DAVID DOWD GROUP 1 Cross County Bank, Wynne TROY DUKE GROUP 5 Gateway Bank, Rison NATHAN GAIRHAN GROUP 3 United Bank, Springdale DON GIBSON GROUP 3 Legacy National Bank, Springdale CHRIS GOSNELL GROUP 4 Farmers Bank & Trust Co., Magnolia SCOTT HANCOCK GROUP 3 Centennial Bank, Fayetteville DARWIN HENDRIX GROUP 4 Bank of Delight, Delight DAVID JESSUP GROUP 5 DeWitt Bank & Trust, DeWitt WILSON MOORE GROUP 2 Bank of America, Little Rock JERRY MORGAN GROUP 1 Focus Bank, Jonesboro ROB ROBINSON IV VICE CHAIRMAN Simmons Bank, El Dorado BILL HOLMES PRESIDENT/CEO Arkansas Bankers Association, Little Rock LORI ROSS GROUP 4 Citizens Bank, Arkadelphia JASON TENNANT GROUP 3 Cornerstone Bank, Eureka Springs LYNN WRIGHT GROUP 2 Regions Bank, Little Rock

5 ROB NICHOLS President & CEO American Bankers Association Partisanship in Washington in recent years has led some to believe that Congress doesn t do collaboration anymore. One party s gain is seen as the other s loss, making deals hard to come by. But many bankers who came to Washington in March for AmBA s Government Relations Summit and other meetings got a slightly different vibe from the policymakers they met with. Yes, some members of Congress predictably held firm against significant changes to the Dodd-Frank Act. Yet others, informed and perhaps worn down by bankers true stories of how over-the-top rules were harming their customers were positive about the possibility of finally doing something for community banks. There s a similar realistic yet optimistic attitude behind an effort by the two leaders of the Senate Banking Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) to identify legislative changes that could help spur economic growth. They won t pursue changes they don t believe in, of course, but both see an opportunity to find and pursue common ground. These encouraging signs are made all the more hopeful by administration officials who have proactively reached out to community banks to learn what rules are acting as roadblocks to growth. In March, President Trump invited nine community bankers to the White House for a roundtable discussion of the industry s regulatory challenges. Though the bankers represented institutions with different business models, operated in different parts of the country and were affiliated with different national trade associations (six were part of AmBA s delegation; three were with the Independent Community Bankers of America), there was remarkable alignment in our policy positions and priorities. WASHINGTON UPDATE A Do-Something Washington The same can be said for the follow-up meeting that Treasury Secretary Steven Mnuchin held with 16 community bankers in April. That s where the secretary made clear how serious the administration was about helping banks perform their critical role in promoting economic growth. And it s where we dug into the specifics of issues related to mortgage, agricultural and commercial lending, as well as Consumer Financial Protection Bureau rules that are ill-tailored for community banks. There again, AmBA and ICBA members were side-by-side, advocating practical solutions. Such alignment is critical to success in Washington. I ve said before that Washington has enough challenges without trying to legislate issues on which an industry is divided. Policymakers up and down Pennsylvania Avenue are interested in addressing our problems so long as we can agree on the best solutions. And I am confident that the solutions we have proposed as detailed in white papers AmBA shared with Secretary Mnuchin following the meeting are what s right for America s banks and the communities they serve. The white papers (which can be found at executive-orders) articulate how regulation in areas like capital, liquidity, fair lending and stress testing can be improved. They were informed by the deliberations in recent years of bankers who serve on our many councils and working groups and who represent banks of different business models and asset sizes. Solutions born of such diverse perspectives are always stronger by ensuring that they make sense for all banks. Given how intent this administration is about using banks to spur growth, and given the interest Congress has shown in providing some community bank regulatory relief, having strong solutions with unified industry backing could just make something happen in Washington again American Bankers Association. All rights reserved. Reprinted with permission. May 2017 The Arkansas Banker 5

6 CHAIRMAN S COLUMN Thank You for the Opportunity to Serve The following is an excerpt from Mr. Dave Dickson s address at the 2017 Officer Installation and Banquet. Good evening and thank you for such a warm welcome. I am honored to be your incoming chairman. I want to begin by thanking Sean Williams for his outstanding service as chairman this past year. His dedication to the goals and purposes of ABA represents an example of true and selfless leadership at the very highest level. I want everyone here tonight to know just how much we have all benefited from his guidance and how fortunate we are to have bankers like Sean. I certainly want to recognize his better half, Leslie. Memorie and I have enjoyed getting to know you and your family. Our girls have also traveled together and have become friends, and we are very grateful for these friendships. I also want to thank Bill Holmes and the fantastic ABA staff for all their hard work every single day as advocates for all Arkansas banks. Everyone on the ABA team is genuinely a pleasure to work with and I appreciate the enthusiasm they demonstrate in banking promotion, education and perhaps most importantly, as our united voice on governmental issues. I certainly cannot go without mentioning Rita Holmes. Rita has been a fantastic travel companion and friend to both Memorie and me. You and Bill have been in our thoughts and prayers these past few months. I know the Arkansas banking community joins me in praying for a full and speedy recovery for Bill. To the new officers of the ABA and the ABA board of directors, I look forward to serving with you during the upcoming year. I am particularly honored to be followed by Cathy Owen, who will be installed next year as the first woman to lead our association, which is an important milestone in the long history of the ABA. I cannot go further without thanking my family. My beautiful wife Memorie she is my rock and the best wife and mother to our children. I have been truly blessed by God for bringing us together some 35 years ago when we were in high school. We have been blessed and continue to be blessed by our three girls Katherine, Anna, and Meredith and her husband Andrew. We love them all dearly. Today, I have the privilege of being CEO of the 102nd oldest business in the state of Arkansas, Union Bank and Trust Company in Monticello. It is also the 6th oldest bank in the state, founded in It is a responsibility that I never take lightly, and one that I enjoy immensely. I am helped in that task by a team of the most professional and talented bankers anywhere, as well as a very community minded board of directors some of whom are here tonight and I certainly appreciate all of their support. I cannot express my gratitude enough for the McClendon family for bringing me to Monticello nearly twelve years ago to lead the bank. Thank you Mr. Zach, John and Robin McClendon. This ABA chairmanship is an honor and commitment that I am so humbled to accept. The success of the ABA is in no small part due to the adept and determined leadership of many past chairman and I salute those that came before me and did so much to build and propel the ABA forward by representing all Arkansas banks. Clearly I have some giant shoes to fill in this role, and I am energized by the confidence and trust of you my peers and I am looking forward to making every contribution that I can to this organization which serves an industry that I believe is at the very foundation of our growth and success as Americans. You see, we choose to be bankers not because we love money or numbers, but because we love helping people and building relationships. Our goal as community bankers is really to help someone achieve their goals and make their dreams become a reality. Our best achievements are found somewhere in our communities: in the successes of those we serve, our customers. And it is in that same spirit that the ABA can be most effective to our own members and the needs of this industry. But, I don t have to tell anyone that helping our customers realize their dreams has become more and more difficult. While we each try to remain focused on the core principles of good banking and serving our customers, there continues to be a growing amount of regulation and competitive challenges testing our industry. Non-bank competition, politically motivated regulatory extremes, and the cost and pace of ever-expanding technology are just a few of the issues we face collectively. The smaller the bank, the bigger the consequences. It is an ever- CHAIRMAN DAVE DICKSON President & CEO Union Bank & Trust Monticello 6 The Arkansas Banker May 2017

7 evolving climate that presents obstacles more difficult than any witnessed for a generation or more in banking. Even with all of the challenges that face us today, there may be more opportunities for change than ever before. A group of your fellow Arkansas bankers, along with over 1,500 other bankers from all over the United States, visited Washington last month for the annual GR Summit. I cannot say optimism abounds, but there are certainly some strong currents for regulatory relief with this new administration and congress. It is the opinion of the American Bankers Association, and we tend to agree, that we have a small window of time to pass bills such as the Financial Choice Act and others before the next election cycle begins later this year. Our delegation and all other delegations need to hear our stories on how these excessive regulations impede, complicate or even inhibit us from helping our customers and their constituents. Arkansas is extremely fortunate to have the representation that we have in Washington. They are strong supporters of the banking industry, and I believe that they will be advocates for change. I want to thank Ava Roberts and Barry Jackson with the Association, along with Commissioner Candace Franks, Deputy Commissioners Luther Guinn and Susannah Marshall for joining us in Washington last month. I accept this chairmanship with great respect and gratitude for all that has been accomplished by an extraordinary organization with outstanding leadership. You have my pledge to use every ability that I possess to build on these past efforts. I, along with the other ABA officers and our ABA board, will need your help to continue to be successful. ABA s progress and growth will be in direct correlation to the participation level of our membership. I appreciate everyone s involvement to make the future of banking in Arkansas a bright one. Thank you all very much for your support and confidence. With your help, it is going to be an exciting and productive year! I am looking forward to it. AmBA Training ABA Professional Development AmBA Training... Provides valuable curriculum in a virtual classroom setting, with the leadership of industry professionals. All assignments and exams are completed online. Bank Lines of Business 6/5/17-6/30/17 CTFA Online Review Course 6/5/17-8/25/17 General Accounting 6/5/17-9/22/17 Managing, Funding, Liquidity, and Capital 6/5/17-7/14/17 The Banking Industry 6/12/17-7/7/17 Building Customer Relationships 6/12/17-7/7/17 Analyzing Bank Performance 6/19/17-8/4/17 Introduction to Trust Products & Services 6/19/17-7/21/17 Building Customer Relationships 7/3/17-7/28/17 Bank Lines of Business 7/10/17-8/4/17 Consumer Lending 7/10/17-10/27/17 Fundamentals of Mortgage Lending 7/10/17-8/18/17 For more information about AmBA Training, log on to or call May 2017 The Arkansas Banker 7

8 Upgraded Convention Sparks Excitement Awesome, engaging, informative, and amazing...all words used to describe the 2017 Arkansas Bankers Association Annual Convention. The 2017 Arkansas Bankers Association Annual Convention was held April in downtown Little Rock at The Robinson Center. The event marked a turning point for the Convention; now in its 127th year, the event underwent a drastic remodel to provide more energizing speakers and peer networking in a relaxed atmosphere. Perhaps the most notable change was the venue. While still in downtown Little Rock, Convention 2017 was held in the newly renovated Robinson Center. The meeting space offered floor-to-ceiling windows overlooking the Arkansas River and new Broadway Bridge. Social functions extended onto the Robinson terrace so attendees could enjoy the ideal spring weather. The fun began on Monday with the return of the Convention Golf Tournament at Maumelle Country Club, and an afternoon ice cream social. The opening reception was replaced with a family-friendly Game Night featuring skee ball, air hockey, pool, and Pop-A-Shot basketball. Bankers wore their favorite team s attire and enjoyed the sports-bar-themed food and atmosphere while reconnecting with colleagues from across the state. This new event brought out the competitive side in everyone! Tuesday started off with a little music from the Gloryland Pastor s Choir from North Little Rock. This group, who performed on America s Got Talent, filled the meeting space with positivity, kicking the meetings off with Oh Happy Day! The ABA business session was held before launching into the morning s motivational speakers, Kevin Brown and Dr. Randy Harrington. Attendees enjoyed a plated lunch and a gorgeous view during the third annual BKD Milestones in Banking Awards honoring industry veterans for their service to both their banks and communities. Lunch was followed by an account of 9-11 and other noteworthy occasions with Air Force One pilot Colonel Mark Tillman. The day concluded with the CNA Chairman s Reception and the DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation, featuring the changing of the guard from outgoing Chairman Sean Williams to incoming Chairman Dave Dickson. Wednesday kicked off a Convention staple, a Strawberry Breakfast hosted by Simmons Bank, followed by the 21st annual Day with the Commissioner. Thanks to our Convention Steering Committee Pat Anderson Gene Crawford Scott Hancock 8 The Arkansas Banker May 2017 Jon Harrell Jim Taylor Sean Williams Click here to see more photos from the 2017 ABA Annual Convention!

9 Bankers Get their Game On! Bankers were able to socialize and spark some friendly competition at the first Convention Game Night. Attendees were encouraged to wear their team colors for the evening. (Top Left) Jon Harrell, Generations Bank, Rogers; and Bryant Ward, Signature Bank of Arkansas, Fayetteville. (Top Right) Jeff Harper, BSG Financial, Louisville, Kentucky; and Joe Miles, Integrity First Bank, Mountain Home. (Left) Sean Williams, First National Bank of Wynne, Wynne; Memorie Dickson, Monticello; and Randy Scott, Farmers Bank & Trust, Blytheville. (Below) Jay Wisener, First National Bankers Bank, Little Rock; Dave Dickson, Union Bank & Trust, Monticello; and Steve Owen, Little Rock. May 2017 The Arkansas Banker 9

10 ABA Business Session (Top Left) Outgoing ABA Chairman Sean Williams, First National Bank of Wynne, welcomes attendees to the 2017 ABA Annual Convention. (Top Right) ABA Past Chairman Robert Taylor, Citizens Bank, gives the nominating committee report. (Lower Left) ABA Treasurer Judy Lawton, Heartland Bank, gives the annual Treasurer s report. (Lower Right) Emerging Leaders Section Council President Blake Fletcher, Stone Bank, reported on the activities of ELS Members throughout the year, including their participation in the Association s trips to Washington. Enjoyed all the changes to the format. Excellent speakers, lots of opportunities to network, all around good use of my time. Rob Robinson Simmons Bank, El Dorado 10 The Arkansas Banker May 2017

11 Kevin Brown Spreads the Hero Effect Show up, and bring your best stuff...that was the message Kevin Brown brought to Convention. The longtime businessman gave attendees the secret to success both professionally and personally: being your best when it matters most. Awesome motivational speaker! Would liked to have started and ended the conference with a message like this! Karen Shaw Citizens Bank, Batesville Randy Harrington Encourages Collaboration Using the When Two is One concept from the U.S. Navy SEALs, Dr. Randy Harrington spoke about creating stronger teams, and building employees who are more effective parts of those teams. Harrington, a strategic planner and executive coach, described how the implementation of the Two is One method benefits an organization on many levels, in the SEAL Teams, everything happens in terms of two s. You are assigned a swim buddy from day one. It turns out this is much more than a safety precaution, it is a hidden key to teamwork, speed, and efficiency in action. Click here to see more photos from the 2017 ABA Annual Convention! May 2017 The Arkansas Banker 11

12 Col. Mark Tillman Gives a New Perspective on Leadership of Our Country Colonel Tillman engaged bankers as he shared his first-hand account of piloting President George W. Bush on September 11, 2001, and later transporting the Commander in Chief into the war zone of Baghdad, Iraq for Thanksgiving dinner with the troops. Throughout his stories, Col. Tillman highlighted the leadership qualities possessed by both the President and also other members of the security team including detailed planning, measurable expectations and personal responsibility. Outstanding. I have never seen 300 people be so still before. Blake Fletcher Stone Bank, Little Rock Simmons Strawberry Breakfast Representing Simmons Bank at the annual Strawberry Breakfast were, from left, Adam Mitchell, John Bollinger, George Makris, Katherine Morgan, Marty Casteel, Allison Cherry, Matt Reddin, Steve Massanelli, Berry Ledbetter, and Pat Anderson. 12 The Arkansas Banker May 2017

13 Convention Golf Tournament Returns Lance Lanier, Citizens Bank & Trust, Van Buren; Greg Connell, Farmers & Merchants Bank, Perryville; Mike Donnell, Chambers Bank, Danville; and Chuck Hunt, First Tennessee Bank, Memphis. Rick Jones, Foundation Life, Fort Smith; Chris Wewers, Southern Bancorp, Little Rock; Judy Lawton, Heartland Bank, Little Rock; and Nathan Austin, Russellville. Herbert Thomas, Heartland Bank, Bryant; Brent Taylor, Citizens Bank & Trust, Van Buren; Courtney Calderwood, Bankers Healthcare Group, Syracuse, NY; and Robert Hopkins, Federal Reserve Bank of St. Louis, Little Rock. Chris Gosnell, Farmers Bank & Trust, Magnolia; Blake Fletcher, Stone Bank, Little Rock; Drew Chandler, Farmers Bank & Trust, Magnolia; and Scott Carrithers, Country Club Bank Capital Markets Group, Kansas City, Mo. Winning Teams First Place Donald Boone Jordan Carlisle Brian Edelmann Mark King Second Place Ashley Campbell Jim Franks Joe Ryan Third Place Nathan Gairhan Kevin Pulliam Erika Rockett John Womack May 2017 The Arkansas Banker 13

14 CNA Chairman s Reception & DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation Tuesday evening s events included the annual CNA Chairman s Reception and the DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation. Held on the terrace, the CNA Chairman s Reception had a gorgeous backdrop of the Broadway Bridge and North Little Rock skyline, coupled with perfect weather. The DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation had a 1920s theme, Banking and All That Jazz. The room was decked out in gold and black, and bankers enjoyed live performances by the Lagniappe Trio and jazz vocalist Genine Perez. Dinner was followed by the installation of a new slate of officers: Chairman Dave Dickson, Union Bank & Trust, Monticello; Chairman-Elect Cathy Owen, Eagle Bank, Little Rock; Vice Chairman Rob Robinson, IV, Simmons Bank, El Dorado; and Treasurer Judy Lawton, Heartland Bank, Little Rock. Also taking place at that time was the ABA Silent Auction, which raised funds for the ABA State Political Action Committee to support pro-banking candidates for elected state offices. The Legacy of Leadership Banquet was hosted by DD&F Consulting Group. Pictured are John Hargrave, Robert Fegtly, Adam Gilbert, and Kyle Shadid. Click here to see more photos from the 2017 ABA Annual Convention! 14 The Arkansas Banker May 2017 Outgoing Chairman Sean Williams, First National Bank of Wynne, pins incoming Chairman Dave Dickson, Union Bank & Trust.

15 Break-in Entertainment (Upper Left) Incoming Chairman Dave Dickson gives his inaugural speech. (Upper Right) Stanhope Wilkinson, Farmers Bank, Greenwood; and Sean Williams, First National Bank of Wynne, Wynne. (Left) Joe Ruddell, Generations Bank, Fayetteville; and Jon Harrell, Generations Bank, Rogers. Tuesday s sessions began with a performance from the Gloryland Pastor s Choir from North Little Rock. The group kicked things off with Oh Happy Day, and also sang their audition number from America s Got Talent. Shannon Rogers from downtown Little Rock s Museum of Discovery put on a show for attendees on Tuesday morning. She made weather using liquid nitrogen and water, and pulled past chairman Joe Miles on stage for a fiery demonstration. Diamond Bear Pipe and Drum Band got everyone s hearts pumping on Wednesday morning, entering the meeting space with traditional bag piping and cadence. May 2017 The Arkansas Banker 15

16 Day with the Commissioner Arkansas State Bank Commissioner Candace Franks gave her annual state of banking address during the Day with the Commissioner on Wednesday, April 12. Commissioner Franks served as host and speakers included John Ahlen, Arkansas State Bank Department; James Carley, Consumer Financial Protection Bureau; John Ryan, Conference of State Bank Supervisors; and Jay Morelock, FTN Financial. New to the Day with Commissioner was a Dialogue with the Bank Department featuring Moderator Susannah Marshall and panelists Richard Buzbee, Wilks Marshall, Baker Moseley, and Michael Saunders. Susannah Marshall moderates a panel discussion with ASBD officials Baker Moseley, Wilks Marshall, Michael Saunders and Richard Buzbee. The group covered a number of hot topics from CECL to marijuana banking. (Top) ASBD Chief Counsel, John Ahlen gives an update on bills that the Bank Department passed during the 2017 Legislative session, including adding cybersecurity breach and cyber attacks to the list of occurrences that allow the Commissioner to declare a state of emergency. Economist Jay Morelock, FTN Financial, tells a Tale of Two Cycles, including the impacts that wages, inflation, and the different aspects of government that will impact the economy over the coming years. 16 The Arkansas Banker May 2017 (Above Left) James Carley, Consumer Financial Protection Bureau, speaks about the CFPB s role in the financial institution examination process. (Above Right) John Ryan, Conference of State Banking Supervisors, gives attendees an update on the prospects for regulatory relief and reform.

17 I think the Board and ABA staff should be commended on a job well done and making changes to make the convention more interesting. Charles Penick Petit Jean State Bank, Morrilton Great Convention, Thanks for all the work in putting on the best convention we have had in years. Even the worst speaker was much better than most in the past. Keep up the good work, the word will get out. Especially liked the opening acts each morning Robert Taylor Citizens Bank, Batesville I thought this year was the best convention in years. Great job to everyone involved. Heather Vaughn Bankers Assurance, Sherwood Log on to to see highlights from the 2017 Annual Convention! Thank You to our Sponsors All Covered American Bankers Association Arkansas Capital Corporation Arkansas Auditor of State Bankers Assurance, LLC Bankers Healthcare Group BKD, LLP Card Assets CNA Insurance Services DB Squared / The Johanson Group DD&F Consulting Group Equias Alliance Executive Benefit Strategies Federal Protection, Inc. Federal Home Loan Bank of Dallas Foundation Life Friday, Eldredge & Clark LLP HORNE CPAs & Business Advisors Jack Henry & Associates Mitchell Williams NetGain Technologies One Digital Health & Benefits PC Assistance Quattlebaum, Grooms & Tull PLLC SalesForce SBS CyberSecurity Simmons Bank Southeastern Commercial Finance, LLC The Baker Group TIB - The Independent Bankers Bank Travelers Works24 May 2017 The Arkansas Banker 17

18 Jason Tennant Executive Vice President Cornerstone Bank, Eureka Springs Board Member Since 2017 Phil Baldwin President & CEO Citizens Bank, Batesville Board Member Since 2015 Scott Hancock Division President, NWA Centennial Bank, Fayetteville Board Member Since 2015 Don Gibson President & CEO Legacy National Bank, Springdale Board Member Since 2016 Nathan Gairhan President & CEO United Bank, Springdale Board Member Since 2017 Lori Ross City President Citizens Bank, Arkadelphia Board Member Since 2017 Darwin Hendrix CEO Bank of Delight, Prescott Board Member Since 2015 Chris Gosnell President & CEO Farmers Bank & Trust Co., Magnolia Board Member Since 2016 Gene Crawford President & CEO First National Bank of Crossett, Crossett Board Member Since The Arkansas Banker May 2017

19 Jerry Morgan Community President Focus Bank, Jonesboro Board Member Since 2015 Jeff Brecklein Community President Integrity First Bank, Jonesboro Board Member Since 2017 David Dowd President & CEO Cross County Bank, Wynne Board Member Since 2016 Johnny Adams City President First Security Bank, Conway Board Member Since 2017 Jim Cargill President Arvest Bank, Little Rock Board Member Since 2016 Wilson Moore Regional President Bank of America, Little Rock Board Member Since 2013 Lynn Wright President - Arkansas Area Regions Bank, Little Rock Board Member Since 2016 David Jessup President & CEO DeWitt Bank & Trust, DeWitt Board Member Since 2017 Troy Duke President & CEO Gateway Bank, Rison Board Member Since 2015 May 2017 The Arkansas Banker 19

20 Dave Dickson Installed as Chairman Dave Dickson was installed as the Chairman of the Arkansas Bankers Association at the 127th Annual ABA Convention on Tuesday, April 11, at the Robinson Center in Little Rock, Arkansas. Dickson is President & CEO of Union Bank & Trust Company in Monticello. He is also a member of Union Bank s and First Union Financial Corporation s Board of Directors. Dickson is a native of Crystal Springs, Mississippi. He holds a bachelor s degree in Banking and Finance from Mississippi State University and is also a graduate of the Mississippi School of Banking at the University of Mississippi and the Graduate School of Banking at Louisiana State University in Baton Rouge, Louisiana. Dickson has been a member of the Board of Directors of the Arkansas Bankers Association for the past six years; he is also a member of the American Bankers Association s Membership Committee. Dickson is very active in the Monticello community: he is a member of First Baptist Church, a member and Past President of Twenty for the Future, a board member of the Monticello Economic Development Commission, and Past President of the Southeast Arkansas Cornerstone Coalition. Dickson and his wife Memorie have three daughters: Meredith, Anna, and Katherine. ABA Chairman Dave Dickson and his wife Memorie. Dave Dickson with his wife Memorie, daughters Katherine, Meredith, and son-inlaw Andrew. 20 The Arkansas Banker May 2017

21 Chairman-Elect Cathy Owen and her husband Steve. Vice Chairman Rob Robinson and his wife Leigh Anne. Treasurer Judy Lawton and Dr. Nathan Austin. Past Chairman Sean Williams and his wife Leslie. Chairman-Elect Cathy Owen Cathy Owen is the Chairman of Eagle Bank & Trust, and the Chairman, President and CEO of State Holding Company in Little Rock. She is also the Managing Partner of One Financial Centre, Partner in H&M Realty & Hastings Holdings, and President of Your Global Source Partner. Owen holds a BSBA degree in Finance & Banking from the University of Arkansas at Fayetteville. She is also a graduate of the Southwest Graduate School of Banking at Southern Methodist University. Owen currently serves on the Baptist Hospital Foundation Board and as Secretary to its Executive Committee, the North Little Rock Chamber of Commerce Executive Committee and Board, the Arkansas Inland Maritime Museum Foundation, and Fifty for the Future. She has also served as an Arkansas State Fair Talent & Queen judge for the past eleven years. Vice Chairman Rob Robinson Robert Robinson is the Market President of Simmons Bank in El Dorado. He earned a degree in Finance and Real Estate from the University of Arkansas Fayetteville, and has completed numerous banking schools and training programs conducted by the FDIC, Federal Reserve, CSBS, and the Arkansas Bankers Association. Prior to joining Simmons Bank in 2004, he served Arvest Bank, Central Bank & Trust, and the Arkansas State Bank Department. Robinson takes an active role in his community, and is currently serving as Vice Chairman on the Medical Center of South Arkansas Board of Trustees, Vice President of the South Arkansas Community College Foundation Board; President of Arkansas Hospital Trustees Association; and is on the board of El Dorado Fifty for the Future. Treasurer Judy Lawton Judy Lawton is the President, Chief Executive Officer, and Chief Operations Officer of Heartland Bank in Little Rock, President of Rock Bancshares, Inc., and President of Heartland Foundation. She is also the President and CEO of Rock Service Company, LLC, a subsidiary of Rock Bancshares, Inc., a company which provides management consulting and advice in the areas of Accounting, Asset Liability Management, Information Technology, and Compliance. Lawton holds a degree in accounting from Arkansas Tech University, is a CPA, and has been a member of Arkansas Society of CPAs since Her banking career spans 30+ years, having held positions at banks across Arkansas. In 2004, Lawton joined Heartland Bank, where she has played key roles in the acquisition of the bank, the changing of the charter from a Savings and Thrift to a State Chartered Bank, and the bank s growth from an asset size. Past Chairman Sean Williams Sean Williams is President and CEO of First National Bank in Wynne. He is also a member of First National Bank of Wynne s Board of Directors. Williams is a lifelong resident of Woodruff County and received his Bachelors and Masters degrees in agricultural business and economics from Arkansas State University. He is also a graduate of the Graduate School of Banking at Louisiana State University. In addition to service on his company s boards, he is a member of the Wynne Rotary Club, the McCrory Lion s Club, and serves as President of the McCrory School District Board of Education, where he is serving in his ninth year. Williams is a member of the First Baptist Church in McCrory, where he serves as a deacon, and is actively involved in various youth programs within the community. May 2017 The Arkansas Banker 21

22 The Environment for Bank Funding & Deposits in 2017 ABOUT THE AUTHOR David Still is the Regional Director of Promontory Interfinancial Network, a company that enables banks to offer services that otherwise might be too difficult or costly for them to offer on their own and providing them with tools to help manage their balance sheets. Contact David at dstill@promnetwork.com. When it comes to funding and deposits, bankers are in a similar position to where they were 12 months ago. Just as it did at the end of 2015, the Federal Reserve decided to raise interest rates at the end of 2016, and now bankers face the question of what the funding future looks like. According to the early November results from Promontory Interfinancial Network s Bank Executive Business Outlook Survey a quarterly survey that captures the expectations of bank CEOs, CFOs, and presidents on a range of economic and industry subjects most bank leaders expect to see moderate growth in funding costs over the next year. Despite the possibility that an increase in interest rates could impact bank net interest margins, bankers awaited the interest rate increase at the end of 2016 with some enthusiasm, just as they did at the end of One reason for the general enthusiasm is that banks have been preparing for this for a while. Concerns about interest rate risk appear to be a thing of the past. The general expectation by bankers for an increase in funding costs has been consistent for more than 18 months, and bankers have been positioning their funding portfolios to dull the margin impact of a rise in rates accordingly. Asked to assess current 22 The Arkansas Banker May 2017

23 and target funding durations, survey respondents indicated little difference between the expected duration of current funding sources and the duration of the funding that they are targeting going forward. Now, with rates moving once again, what is the impact that banks can expect to see? Even the single rate increase at the end of 2015 led many bankers to experience a notable shift in the cost of their banks funding in Nearly 40% of bankers that responded to the Bank Executive Business Outlook Survey in November 2016 reported that they had seen an increase in their funding costs over the past 12 months. With the December 2016 rate hike, it s possible that higher funding costs will become the experience for a majority of bankers. This could create greater issues for banks than in previous rising-rate cycles. Loan-to-deposit (LTD) ratios are still well below pre-crisis median levels at the country s biggest banks. According to Call Report data, LTD at banks with more than $250 billion in assets is at 76%, well below the pre-crisis median of 98%. As these large banks continue to grow their assets, eventually they may need to push further into the deposit market, potentially driving funding costs upward. A deposit push from big banks may be a particular concern for community banks that currently hold a substantial amount of surge deposits, which have settled in banks awaiting yield from whoever is willing to offer it. 1 LOOKING BACK TO LOOK AHEAD So what can banks expect to happen in 2017? Given the similarities between the end of 2015 and the end of 2016, it s useful to consider recent history and how 2016 deviated from expectations with respect to the funding side of the balance sheet. In the Q edition of the Bank Executive Business Outlook Survey, which was taken in January 2016, nearly 40% of respondents indicated that their funding costs had worsened. That was double the percentage of respondents that had experienced higher funding costs just one quarter prior. And expectations were high that increases would continue. More than 70% of respondents to the January survey reported that they expected to see their funding costs rise in the 12 months following the survey. Expectations were similar in the April edition of this same survey. Then came a substantial shift. In the Q2 survey, taken in the final two weeks of July, there was a notable drop in expectations for a funding cost increase. By this time, barely half of all surveyed bank leaders expected to see an increase in funding costs over the coming year. This shift in expectations may have been due, in part, to uncertainty following the June Brexit vote, which caused U.S. Treasury securities to fall sharply, U.S. equity prices to decline, and the foreign exchange value of the dollar to increase. Turmoil in Europe was also paired with mixed economic news in the United States. The mid-year economic roller-coaster and the failure of the economy to hit the inflation and employment targets that the Fed had set at the end of 2015 delayed Fed action on interest rates and raised the possibility of a much longer wait for any future interest rate movement. However, the eventual impact of the mid-year turmoil was less negative and shorter term than many industry observers expected. By August, acute, economic anxiety had mostly dissipated; Treasury yields were down only slightly, equity prices were higher, and the foreign exchange value of the dollar was little changed. Positive jobs numbers supported more economic optimism and revived belief in a December interest rate increase, which ultimately happened. Reporting in November 2016, nearly 73% of respondents expected to experience a moderate increase in their funding costs within 12 months. This was three percentage points higher than reported for the same time one year prior. Less than 3% expect to see a significant increase in funding costs. While interest rates finally appear primed to move, it s worth noting that the expectation was in a similar place last year, and, as with last year, a range of economic factors could still impact the Fed s decision-making on rates. 1 FDIC s statistics on depository institutions 2017 Promontory Interfinancial Network, LLC May 2017 The Arkansas Banker 23

24 Whether Tragedy or Comedy Being Locked in a Vault or Branch Facility is No Laughing Matter Help! I m locked in and I can t get out! Does this sound absurd? It isn t. More often than most of us know, financial institutions are accidentally locking unsuspecting box renters inside their vault or branch facility. 24 The Arkansas Banker May 2017 RECENT LOCK-IN A 73 year-old California woman became trapped in a bank facility when employees, not realizing she was in a privacy room viewing her box contents, locked the building at six p.m. This could have been a very frightening experience with a disastrous end. Unfortunately, Mrs. Prescher was diabetic. Deprived of her medication, she collapsed. At midnight, six hours later, a cleaning crew discovered her inert body. She was

25 unconscious and cold to the touch. Mrs. Prescher was rushed to a local hospital where, thankfully, she recovered. It was a terrible oversight, a bank spokesman sheepishly admitted to the Associated Press. Mrs. Prescher could have died. HISTORY REPEATS ITSELF In Williamsburg, Pennsylvania, a bank employee decided to work late. At 4:30 p.m., her baby sitter brought her 18 month-old son Matthew, to the bank. While Mrs. Mingle worked, her inquisitive son decided to explore the vault. At 5:00 p.m. the lobby-closing officer set the vault door time clock and the door was closed and locked. When Mrs. Mingle determined her missing son was locked in the vault, she frantically notified bank officials who in turn alerted the Williamsburg Volunteer Fire Department. A master locksmith was located and rushed to Williamsburg from Canterbury, Ohio, a lengthy journey. At 12:30 a.m., the locksmith began drilling the door while distraught bank personnel and an anguished mother waited nearby. Thirty minutes later, at 1:00 a.m., Matthew was freed. Without the help of this experienced locksmith, little Matthew s ordeal could have lasted for over 13 hours or until the vault door was opened after 6:00 a.m. the following morning. During his 7½-hour ordeal, Matthew sang along with his mother and the firemen who hummed to the child through the emergency ventilator. One fireman passed coloring-book pages through the ventilator to relieve Matthew s anxiety. Vigilant firemen and officials observed the child with a fiber optic camera and provided juice and oxygen with tubes running through the ventilator opening. During the last 2½ hours of this ordeal, Matthew napped. A FEW OTHERS In addition to little Matthew s story, there have been other accidental lock-ins. Doris Willis, an 86 year-old lady with a serious heart condition, was locked in a Tacoma, Washington vault for over 15 hours. While she was inside the vault examining her box contents in a viewing room, no one noticed her and at closing time, the vault door was closed and locked. Fortunately Mrs. Willis kept her head, didn t panic and perhaps avoided a possible stress-related heart attack. Two weeks after Mrs. Willis s trying experience, 86 year-old attorney, Daniel Goldberg spent Christmas Eve night locked inside a San Francisco bank vault. Because the next day was Christmas, the vault door time clock was set to open on December 26th. Mr. Goldberg endured a 40-hour vault incarceration. Merry Christmas and Happy New Year! Recently, in Zurich, Switzerland, an 85 year-old woman was rescued four hours after the vault door was locked. Deep in concentration as she studied her box contents, she did not initially activate the vault s motion detector or camera that would have signaled her presence to bank employees. Then, on a much lighter note, there are the stories of the Georgia bank president who was accidentally locked in his own vault, the renter who was trapped inside and placed a frantic cell phone call to his secretary at his office, and the dog that decided to play hide-and-seek with his owner, the bank s chairman of the board... guess where Fido decided to hide! EASY SOLUTION Many of these unfortunate incidents could have resulted in someone s death or a significant loss for these financial institutions. There are four precautions that, if implemented, can easily reduce or eliminate the chances that situations such as these just described do not plague your institution. 1. Viewing Box Contents. No one should ever be left alone in the vault. All renters should be escorted to a viewing room. Whether these rooms are inside or outside the vault, consistent and diligent monitoring is essential, remembering always that renter privacy must be ensured. If no viewing rooms are available, the vault attendant must stay with the renter inside the vault, but far enough away that the renter s box contents are not observed. 2. Monitoring Viewing Areas. Ideally, viewing areas should be located outside the vault. They must be inspected thoroughly after each transaction and always checked at the end of each day before the vault door is shut. This inspection should be performed under dual control and recorded in a logbook each day. 3. Vault Day Gates Locked. Vault day gates should remain closed and locked at all times. This prevents access to the vault area by anyone without safe deposit or other vault related business. This security barrier also restricts a wandering child or dog with a curious nature. 4. Turn Off Lights. Extinguishing lights in the vault and viewing rooms at closing time will hopefully alert anyone still there to make their presence known. If you hear a scream, DON T SHUT THE DOOR! IN CONCLUSION During each of these vault lock-in stories, careless and poorly conducted operating procedures placed all of these individuals in peril. Any such occurrence is inexcusable. There is no justification for such irresponsible and ineffective safeguarding of a box renter s safety and well being on the part of these financial institutions. In the event of a lawsuit, these institutions would be found totally at fault and open to very significant liability. Why take the risk? If assistance is needed to develop correct internal vault closing procedures or to create properly worded security logbooks, please visit for information. ABOUT THE AUTHOR David P. McGuinn, President of Safe Deposit Specialists in Houston, is a former banker and often referred to nationwide as the safe deposit GURU. In all 50 states he has trained over 350,000 safe deposit personnel since For over 40 years, McGuinn s seminars, manuals, forms and other resources have been considered the accepted standard for the financial industry. Hear more from David McGuinn at our Safe Deposit Box Issues seminar on September 28! May 2017 The Arkansas Banker 25

26 Simmons Bank Helps Realize Dreams Earlier this month, Simmons Bank had a story to tell: the story of Harper, a sixyear-old leukemia survivor from Little Rock. When he was declared in remission, Simmons teamed up with Make-A-Wish Mid-South to grant Harper s wish. Harper and his two sisters thought they were running errands in downtown Little Rock with their parents when they stumbled into a character-inspired party in the Simmons Bank lobby. In just a matter of minutes, Harper was wearing mouse ears and learned that he and his family were leaving for Disney World in a few weeks. As bankers, Simmons associates are in a unique position to help people realize dreams through all stages of life, from opening their first savings account and buying their first home to retiring and securing their legacy, said Elizabeth Machen, Simmons senior vice president of marketing and communications. It s not every day we get to fulfill someone s dream of going to Disney World, but we are thrilled to help send Harper and his family through our support of Make-A- Wish. The feeling is somewhat overwhelming when we get to help make a child s wish come true. Harper has been through so much at the young age of six, so we wanted to create an unforgettable surprise Harper and his two sisters enjoying cherry suckers after they learn they are going to Disney World. 26 The Arkansas Banker May 2017 Simmons Bank associates surprise Harper with his dream of a trip to Disney World. for him. I ve received so much positive feedback about that special morning from our associates and others in the community. It s a privilege that we are in the position to partner with Make-A- Wish Mid-South on this, as well as the countless other worthy organizations that we support, said Chris White, Simmons Bank market president. We had such a great turnout and associate involvement with the recent Make-A-Wish reveal, added Caroline Makris, vice president/manager of marketing and communications. Associates from across business units came together to help make a very deserving six-year-old s dream come true. They put on mouse ears, hats, masks and smiles and really went above and beyond to make the day special for Harper and his family. But this story isn t just about Harper, it s about a group of community bankers coming together to make a difference in their communities, and the lives of their customers. Earlier this year, Simmons rolled out a new brand campaign, Dreams: Realized. The internal launch came during March Madness; Simmons asked their associates to submit a Dream Team photo and write-up of how their team contributes to helping customers realize their dreams. More than 100 stories came in from all across the bank, from front-line associates, lenders and trust advisors to human resources, commercial document processing and beyond. A Final Four was selected from those initial submissions, and Simmons employees voted to select a champion a group who helped a couple realize their dream of owning a coffee shop in Martin, Tennessee. Our associates have whole-heartedly jumped on board with our new brand campaign. It s been really natural because we re not letting our brand drive our actions, our actions drove our branding, said Makris. That excitement was evidenced when we heard from our associates through the March Madness competition. The level of detail and care they take with our customers really came through in their submissions from Arkansas to Kansas to Missouri to Tennessee. Simmons partners with a range of groups, including the United Way, American Red Cross, ALS Association, Race for the Cure, and various local nonprofit agencies that do good work in the community. The world we live in today feels a lot different there s more care involved, White noted. With our recent growth, we ve done several things to help unite our associates from launching an internal culture to focusing on customer

27 service training to associate appreciation programs. These initiatives have driven our associates to compete to be the best in their branch, market, and bank. Banking is a people business, so our focus on our associates has made a difference that can be seen and felt at the customer level. That shift in culture extends far beyond Simmons the trend of a giving corporate culture is widespread including major companies such as Facebook, Target, and Google with numerous studies showing a positive impact for both the business and its employees. Additionally, a recent poll conducted by Cone Communications and Echo Research revealed that more than 90 percent of consumers would switch to a brand supporting a good cause and more than 85 percent of millennials base purchasing decisions on an organization s philanthropic efforts. At Simmons Bank, taking part in these philanthropic activities has proven to be a rewarding opportunity for employees. Working for a company that gives back is so rewarding. In the recent example of the wish reveal, when you get to be a part of making someone s day, it just feels good. It s energizing, Makris said. Simply put, that s what bankers do they make someone s day, every day. Whether it s little Harper, the hometown t-ball team, or a first-time homebuyer. That s the story of Arkansas Hometown Bankers. Sarah Lane and Jim Shenep. Click here to see a video clip from the Simmons Bank Make-A-Wish reveal! ABA Webinars ABA Professional Development Webinars... Provide the option of training as many employees as you wish for one price, all from the convenient location of your home institution! FRIDAY, JUNE 2 Bank Call Report Preparation for Beginners 10:00 a.m. 12:00 p.m. MONDAY, JUNE 5 Writing an Effective Credit Memorandum 1:30 p.m. 3:30 p.m. TUESDAY, JUNE 6 Three Key Risk Assessments in Your ERM Program ERM, IT, and Internal Controls 1:30 p.m. 3:30 p.m. Notary Public 10:00 a.m. 12:00 p.m. WEDNESDAY, JUNE 7 Prepaid Accounts-The New Rule 10:00 a.m. 12:00 p.m. Basics of Real Estate Loan Documentation 1:30 p.m. 3:30 p.m. THURSDAY, JUNE 8 Writing New Accounts Procedures with New CDD 10:00 a.m. 12:00 p.m. MONDAY, JUNE 12 Introduction to Consumer Lending 1:30 p.m. 3:30 p.m. TUESDAY, JUNE 13 Call Center Representative Training 10:00 a.m. 12:00 p.m. WEDNESDAY, JUNE 14 Protecting Your Salaried-Exempt Status 10:00 a.m. 12:00 p.m. ACH Risk Management & Compliance (Part 1) 1:30 p.m. 3:30 p.m. FRIDAY, JUNE 16 ACH Risk Management & Compliance (Part 2) 1:30 p.m. 3:30 p.m. MONDAY, JUNE 19 Excel Explained: Pivot Tables (Part 1) 1:30 p.m. 3:30 p.m. For more information about ABA Webinars, log on to or call May 2017 The Arkansas Banker 27

28 PROFESSIONAL DEVELOPMENT 18 Complete ABA Commercial Lending School The 2017 ABA Commercial Lending School was held April at the Crowne Plaza in Little Rock with 18 Arkansas bankers in attendance. The annual week-long event has benefits both for lenders new to the commercial realm, and seasoned lenders refreshing their skill set. The curriculum is designed to show how the current economy, coupled with business structure, can affect lending decisions. Topics covered included assessing borrower financial performance; understanding the borrower s business; projecting future performance; loan structure; relationship management; and identifying and managing problem loans Commercial Lending School Graduates were, from left, Reggie Rose, Simmons Bank, Conway; Charlotte Richardson, Simmons Bank, Hamburg; Monte Hodges, Southern Bancorp, Blytheville; Kelly Roswell, Centennial Bank, Paragould; Michael Shelton, Generations Bank, Camden; Sheri Koch, Signature Bank of Arkansas, Fayetteville; Ben Pittman, Helena National Bank, West Helena; Megan Lahay, Signature Bank of Arkansas, Fayetteville; Nick Shackelford, Helena National Bank, Helena; Haley Murray, Centennial Bank, Dardanelle; Rob Ginn, Signature Bank of Arkansas, Fayetteville; Brooke Chandler, River Town Bank, Dardanelle; Zach Henry, Helena National Bank, West Helena; Martha Londagin, Legacy National Bank, Springdale; Brent Atkins, Simmons Bank, Hot Springs; Cody Davis, Focus Bank, Paragould; Taylor Branstetter, Today s Bank, Fayetteville; and Mark Bailey, Centennial Bank, Beebe. The school was taught by longtime instructors John Cochran, Cochran & Associates, and Ron Rushing, Rushing Consulting Group. IT S so BIG WE RE IT MEGA Be watching for details on the 2017 Mega Conference, October The Arkansas Banker May 2017

29 Graduate School of Banking Scholarships Awarded Three Arkansas bankers are taking the next step in their careers thanks, in part, to scholarships through the Arkansas Bankers Association and area Graduate Schools of Banking. These scholarships are offered annually to bankers within the state that have demonstrated a professional commitment to the industry. RACHAEL NIKKI SKINNER Rachael Nikki Skinner has been awarded the Prochnow Educational Foundation Human Resource Management School Scholarship to attend the Graduate School of Banking in Madison, Wisconsin. Skinner is the AVP of Human Resources at Farmers & Merchants Bank in Stuttgart. She began working at Farmers & Merchants in 2006 as a customer Supervisor Boot Camp Teaches Leadership, Coaching Twenty Arkansas bankers took part in the Supervisor Boot Camp, April in Little Rock. This intense two-day seminar is designed to explore the coaching and leadership skills necessary for a supervisor to be successful. Also on the agenda, assessing your personal effectiveness and building a performance plan. This year s instructor was Janice Branch, a Certified Bank Training Professional with more than 20 years of experience in the industry. Here s what attendees had to say about our new instructor: Janice was awesome at getting us to understand and teaching us how to implement what we were taught. Janice made this training a conversation, being sure to cover the specific topics the audience was concerned with. service clerk, and transitioned into her current role in Skinner has also completed the Principles of Banking training and holds her PHR and SHRM- CP certifications. MICHAEL TYLER COX Michael Tyler Cox has been awarded the SWGSB Millennium Scholarship to attend the SW Graduate School of Banking at Southern Methodist University in Dallas, Texas. Cox is AVP/Loan Officer at Farmers & Merchants Bank in Stuttgart. He holds a degree in Ag Business from Arkansas State University, has completed the Accounting for Lenders training, and attended the 2015 & 2016 Agri Lending Conferences. JASON CULPEPPER Jason Culpepper has been awarded the American Bankers Association and Arkansas Bankers Association Scholarship to attend the AmBA Stonier Graduate School of Banking at the University of Pennsylvania in Philadelphia. Culpepper is the North Central Arkansas Community President for Simmons Bank in Conway. He holds a degree in business administration from the University of Arkansas at Fayetteville, and has completed the ABA Commercial Lending School, Omega Performance Commercial Loans to Small Businesses workshop, and numerous courses that focused on sales and financial analysis. If your bank is interested in on-site supervisor training, please contact Kami Coleman at (501) or kami.coleman@arkbankers.org. May 2017 The Arkansas Banker 29

30 BANKER NEWS & MOVES FIRST NATIONAL BANKERS BANK HIRES WES WOMACK First National Bankers Bank is pleased to announce the hiring of Wes Womack to serve as Vice President/Commercial Lender in the Arkansas Region lending division. Mr. Womack formerly served as Vice President and Commercial Lending Officer with Bancorp South. He has also held various management positions in credit administration and analysis in the central Arkansas banking market. In 2003, Wes earned a bachelor s degree in finance from the University of Arkansas at Fayetteville. We are excited to have someone with Wes background and expertise in commercial lending and finance join the FNBB team. Wes existing relationships with our customer banks will further our strong tradition of service beyond comparison, said Jim Franks, President of FNBB s Arkansas Region. BANK DEPARTMENT PROMOTES THREE The Arkansas State Bank Department has promoted Samuel Tanner McKnight, Seth Parsley and John David Sonnier to Bank Assistant Examiner. All three employees are commercial examiners. McKnight and Parsley work out of the Department s field office in Jonesboro, while Sonnier is assigned to one of two groups based in Little Rock. Tanner McKnight was a management trainee at The First National Bank of Wynne from May 2015 until his hiring at the Bank Department. His training at the bank was primarily in the credit area. McKnight received a Bachelor of Science in Finance, with an emphasis in banking, at Arkansas State University in May His minor was Accounting. Prior to being hired at the Bank Department, Seth Parsley served as a teller and customer service representative at First National Bank, Paragould. He had been employed at the bank since April 2012 and assisted in the establishment of a new branch in northwest Arkansas. He trained customer service representatives at the new branch. Parsley received a Bachelor of Science in Finance, with an emphasis in banking, at Arkansas State University in May His minor was Accounting. John David Sonnier joined the Bank Department after being employed at Merchants & Planters Bank, Newport, since May At the bank, Sonnier served as an intern in credit compliance, a position in which he monitored and developed lending policies. In addition, he reviewed commercial and consumer loans. In May 2015, Sonnier was promoted to credit analyst, reviewing larger commercial loans and evaluating the Allowance for Loan and Lease Losses. Sonnier was an intern at Richardson Accounting and Consulting in Batesville from February 2013 to May Sonnier received a Bachelor of Arts in Economics and Bachelor of Science in Accounting at Lyon College in May BARHAM NAMED SIMMONS BANK EVP Henry A. Rusty Barham III has been named executive vice president for regulatory and consumer affairs and assistant general counsel for Simmons Bank. Barham has been employed in the banking industry for 28 years and has been a member of the Louisiana State Bar Association for 34 years. He most recently served as executive vice president and general counsel for Origin Bancorp Inc. of Ruston, La. With our recent acquisition announcements, we ll be moving into new states, said George A. Makris Jr., chairman and chief executive officer of Simmons First National Corp. We will move over the $10 billion mark with significant new regulatory requirements. Rusty is known as a problem solver who has a strong, positive reputation with regulators. He is well prepared to help us navigate our growth. We feel fortunate to have him join us. Barham received his bachelor s degree from Louisiana State University at Baton Rouge and his law degree from the Paul M. Hebert Law Center at LSU. After serving as a law clerk for the U.S. Bankruptcy Court for the Western District of Louisiana, Barham worked as an associate for a law firm in Baton Rouge and later served as assistant attorney general in the Civil Section of the Louisiana Department of Justice. He entered the banking industry in 1989 as a staff attorney with Baton Rouge Bank & Trust Co. and later become the bank s general counsel. In 1994, Barham joined Whitney National Bank of New Orleans, which had operations in five states, and served as an executive at the bank for 17 years. Barham joined Hancock Bank as a senior vice president after Hancock acquired Whitney. He moved to Associated Banc-Corp of Green Bay, Wis., in March 2012 and was responsible for a staff of 50 people involved in compliance efforts. Associated Banc is a $29 billion asset institution and is one of the top 50 publicly traded U.S. bank holding companies. Barham returned to Louisiana in 2014 to join Origin, a $4 billion bank holding company. GRAND SAVINGS BANK HIRES JARED GABRIELE FOR ROGERS MARKET Grand Savings Bank is pleased to announce the hire of Jared Gabriele as AVP, Loan Officer for their Rogers market. Gabriele is a Northwest Arkansas native and Bentonville High School graduate. Jared joins Grand Savings Bank with over 15 years of experience in the banking, title and insurance industries. He is a member of the Grace Point Church in Bentonville and serves in numerous capacities there. We are excited for Jared to join our team, said Tommy Coughlin, Market President- Rogers/Bentonville. His diverse background will make him a great addition to Grand Savings Bank. JOSH MASCARO NAMED VICE PRESIDENT AND SALES MANAGER FOR STONE BANK Josh Mascaro has been named vice president and sales manager for Stone Bank. His responsibilities include working with bank management and customerfacing associates to develop product promotions and sales incentive programs. He was previously a vice president and sales manager with Simmons Bank and Metropolitan National Bank, supervising 26 branch locations. He began his career as a personal banker with Bank of America and is a graduate of Louisiana State University. 30 The Arkansas Banker May 2017

31 RON BRANSCUM JOINS CITIZENS BANK AS CITY PRESIDENT FOR ROGERS Citizens Bank has announced the appointment of Ron Branscum to the position of City President for Rogers, according to Doug Lynch, Market President, Northwest Arkansas. Ron Branscum is an exceptional professional whose abilities will help to continue to drive Citizens Bank forward, Lynch said. We are fortunate to have someone of Ron s character, experience and capabilities lead our growth and expansion in the Rogers area. Citizens Bank is one of the fastest growing banks in Arkansas, and Northwest Arkansas has been a leader in this growth, said Phil Baldwin, Citizens Bank President and Chief Executive Officer. Ron Branscum will be a major asset as we continue our growth plans and solidify our position as a state-wide banking franchise. I am honored to have been selected to lead the bank s efforts a thriving market that holds so much opportunity, Branscum said. I look forward to directing the future growth of Citizens Bank in a region which includes four of Arkansas top ten cities. Branscum will be located at Citizens Bank s branch at 3350 Pinnacle Hills Parkway in Rogers. He has most recently served as President of Regional Therapy Services Inc. in Rogers, and has many years of experience in the financial industry, including the Arkansas State Bank Department. He is a graduate of the University of Colorado Graduate School of Banking, and holds a Bachelor s degree in Business Administration with a major in Accounting from the University of Central Arkansas. Branscum and his wife, Deedra, live in Rogers with their seven children: Cade, Parker, Payton, Carrie, Jeremiah, Caroline and Daniel. The family attends Boundless Grace Baptist Church in Rogers. He is a member of the Board of Trustees of Northwest Arkansas Community College, a current Board member of Arkansas Family Council and Blackwood Industries Inc., and a former member of the Board of the Benton County Children s Advocacy Center. Life Legacy: Bennie Ryburn Jr. Bennie F. Ryburn, Jr. entered into the kingdom of heaven surrounded by family on May 8, Born July 26, 1934 in Pine Bluff to Bennie F. Ryburn, Sr. and Virginia Morrison Ryburn of Rison, Bennie, Jr. spent his childhood making lifelong memories playing with cousins. The family moved to Monticello in 1946 when Bennie, Sr. entered the automobile business. Bennie, Jr. graduated from Monticello High School in He attended University of Arkansas at Fayetteville where he pledged the Kappa Sigma fraternity. In 1957 he graduated from Arkansas A&M (The University of Arkansas at Monticello) with degrees in economics and history. That same year he was commissioned as an aviator in the U. S. Naval Air Force. When he returned to Monticello, he became the manager of Ryburn Motor Co. He owned the family automobile business for 25 years. Southeast Arkansas was always close to Bennie s heart. In 1966 he was elected to the Arkansas State House of Representatives where he served seven terms advocating for his district. Notably, he was a sponsor of Ryburn receiving the 50 Year Milestones in Banking Award in legislation to merge Arkansas A&M with the University of Arkansas system. After leaving office, he turned his energies toward the banking industry. He was very proud of the more than 50 years he spent in banking in the great state of Arkansas. He was vitally involved in many financial institutions over the years including, The First State Savings and Loan Association of Southeast Arkansas, Citizens Bank of Tillar, Pine State Bank of Kingsland, and Arkansas Bankers Life. He served as CEO and Chairman of the Board of The Bank of Star City, Commercial Bank of Monticello, and First State Bank of Warren. He truly loved his work, most especially his colleagues. Bennie, Jr. continued to be active in the banks even after his illness, choosing never to retire. In 2008, he was the recipient of a single lung transplant at the University of Pittsburgh Medical Center. He and his family felt truly blessed and grateful for the time his transplant afforded them to be together, experience life, and make wonderful memories. Family was a cornerstone of his life. He was very proud of his children, always excited to share the accolades and accomplishments of his grandchildren, and overjoyed to welcome three great-grandchildren into their family. Deeply devoted to his faith, he regularly attended services at St. Mary s Episcopal Church of Monticello where he served as Senior Warden for many years. He is survived by his wife, Marion Burge Ryburn; His children, Bennie Ryburn, III and wife, Carita Halley Ryburn, Angie Ryburn Barron and husband, Jim Barron, Ray Ryburn, and Margaret Anne Ryburn; His grandchildren, Anna Blace Maxwell and husband, Ryan Maxwell, Morrison Barron Stephens and husband, Conner Stephens, Halley Ryburn and Madison Ryburn; And his great-grandchildren, Hudson Thomas Maxwell, Montgomery Macleod Stephens, and Rhett William Maxwell. Memorial services were held at Oakland Cemetery in Monticello on May 13, May 2017 The Arkansas Banker 31

32 Find the Gaps in Your Bank s Cyber Security System 2017 Cyber Security Road Show What is the Cyber Security Road Show? Hosted by the Arkansas Bankers Association and our Endorsed Vendor, SBS Cyber Security, this interactive seminar is designed to provide education on evolving cybersecurity threats and what your institution should do to prevent, detect, and respond to these threats. Who Should Attend? Information Security Officers, Compliance Officers, Information Technology Staff, Directors, Presidents, Vice Presidents, Auditors, and Board of Directors. Coming Soon to a Location Near You! Fayetteville Tuesday, June 13, :00 a.m. 4:30 p.m. The Chancellor Hotel Little Rock Wednesday, June 14, :00 a.m. 4:30 p.m. Hampton Inn Jonesboro Thursday, June 15, :00 a.m. 4:30 p.m. Hilton Garden Inn Log on to for details! 32 The Arkansas Banker May 2017