THE

T EN N E S SEE B ANKER

Volume 102 • Number 12 • December 2014

Twas the night before Christmas and all ’cross the state Not a banker was worried, not one was awake They rested quite easy, with nothing to fear For Financial Products & Services, Inc, would always be near.

Wishing you and yours the merriest of holiday seasons, The Financial Products & Services, Inc, Team For more information on how we can meet your needs, call us. 1-800-456-5191 or 1-615-244-5100 • www.FinancialPSI.com

A community bank’s greatest ally for over years.

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First Tennessee Correspondent Services offers a range of robust financial and business solutions to support community banks. When you work with First Tennessee, you’ll get the personal attention that’s made us a continuous provider of correspondent services for over 100 of our 150 years in business. First Tennessee Correspondent Services include:

Holding Company Loans | Image Cash Letter | Letters of Credit | Settlement Services Treasury Management | International Services | Fed Funds | Safekeeping

Talk To a RelaTionship ManageR abouT youR bank’s needs. Call 800-453-7686 oR eMail [email protected] © 2014 First Tennessee Bank National Association. Member FDIC.

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TEN N E SSE E B A N K E R

Published monthly by the Tennessee Bankers Association

OFFICERS William B. Marsh / Chairman First Commerce Bank, Lewisburg David Verble / Chairman-elect Citizens National Bank, Sevierville Gordon Majors /Vice Chairman The Hardin County Bank, Savannah

Colin Barrett / Editor Dianne W. Martin / Managing Editor Matt Radford / Graphic Designer Volume CII / Number 12 / December 2014

Contents THIS MONTH

SPECIAL SECTION Tennessee Bankers Association 2014 Year in Review......................... 27 TBA Annual Meeting – Exhibit and Sponsorship Opportunities............................ 7 Is Your Bank Ready for the Next Big Breach—Gina Pruitt.................................... 12 Independent Bankers Division Convention – Logan Hickman Elected President..... 16 Annual Credit Conference Scheduled for February 5 & 6.................................... 20 Legislative Reception – Make Plans to Attend February 4................................... 22 Young Bankers Division Leadership Luncheons Recap........................................ 23 TSSACL Accepting Applications for 2015 Session............................................... 30 Fundamentals of Compliance – Comprehensive Coverage of Deposit

and Lending Regulations.......................................................................... 32

HMDA Program Will Cover HMDA Regulatory Requirements

& Industry Best Practices........................................................................... 34

Compliance Conference Photo Review................................................................ 36 Young Bankers Host Two Tailgates – Titans and UT............................................. 45 DEPARTMENTS

FROM THE EXECUTIVE OFFICE—Colin Barrett

The 2016 Election Cycle Begins................................................................. 6

WASHINGTON UPDATE—Governor Frank Keating

It’s Time to Reform the Farm Credit System............................................... 9

FROM THE TOP—John Buhrmaster

Our Timeless Story.................................................................................... 11

Bank Notes / Promotions / Community Corner................................................... 38 Employment Opportunities.................................................................................. 43 Actions of Bank Regulatory Agencies.................................................................. 45 TBA Professional Development Calendar............................................................ 46

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T EN N ESS EE B AN KER

Volume 102 • Number 12 • December 2014

On the Cover Poinsettias covered in snow. Photo by Lisa Jacobs, flickr.com

STAFF Administration Colin Barrett / President Stacey Langford / Senior Vice President of Membership Steve Curtis / Vice President of Information Technology Sharon Justice-McCray / Vice President of Human Resources & Facilities Penny L. Powlas / Executive Assistant, Administration / Legal T’Lanie Luu / Member Services Specialist Sandra Johnson / Training Center Coordinator Lacy York / Receptionist Accounting / Insurance Angela D. Griffin, CPA / Executive Vice President / CFO Mike Ailinger / Staff Accountant Shemeka Greer / Accounts Receivable Clerk Felisha Gatlin / Accounts Payable Clerk Legal / Government Relations Timothy L. Amos / Executive Vice President / General Counsel Amy Smith / Senior Vice President / Deputy Counsel Education Debbie M. Brickles / Senior Vice President of Training and Development Susan R. Taylor, CMP / Senior Vice President of Professional Development Monique Jenkins / Education Services Specialist Communications Dianne W. Martin / Vice President / Director of Communications Matt Radford / Assistant Director of Communications Lila Griffin / Proofreader The Tennessee Banker (ISSN 0040-3199) is published monthly by the Tennessee Bankers Association, 211 Athens Way, Ste 100, Nashville, TN 37228-1381; telephone 615-2444871. Advertising rates available upon request. Subscriptions: $40.00 per year for TBA members; $55.00 for nonmembers; single copies, $6. Tennessee residents add 9.25% sales tax. Periodical postage paid at Nashville, Tennessee. POSTMASTER: send address changes to The Tennessee Banker, 211 Athens Way, Ste 100, Nashville, TN 37228-1381. Copyright © 2014, Tennessee Bankers Association; all rights reserved. The Tennessee Bankers Association disclaims all responsibility for opinion expressed in addresses, papers, or communications published in The Tennessee Banker unless such opinion has been endorsed by the Tennessee Bankers Association.

DECEMBER 2014 | THE TENNESSEE BANKER

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From the Executive Office

The 2016 Election Cycle Begins By Colin Barrett, President, Tennessee Bankers Association

B

efore I finished my first cup of coffee on Wednesday, November 5, I had a call from one of our state senators asking for BankPac support for his re-election. Welcome to the beginning of the 2016 election season! This is the political environment in which we now live, with elected officials seemingly keeping one eye on current issues and the other on the next election cycle—a process that shows no sign of slowing down. And frankly, neither can we. Our industry is at the proverbial crossroads as we fight to serve our customers among increased regulatory burden, government–subsidized competition, and an economy which, according to exit polling, most of the country feels is heading in the wrong direction. The good news is that the state of Tennessee continues to understand the importance of a strong banking industry and a healthy business environment. Fortunately for our industry, we have great bankers returning to the legislature next year to ensure traditional banking interests are well represented. They include outstanding Democrats such as Minority Leader Craig Fitzhugh (Bank of Ripley) and Joe Pitts (Planters Bank) and Republican leaders like Senate Commerce and Labor Chairman Jack Johnson (Pinnacle Bank), House Insurance and Banking Chairman Steve McManus (First Tennessee), and House Majority Whip Cameron Sexton (Cumberland

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Three suggestions for this month:

PPMake plans to join us for the 2015 Credit Conference

that will be held February 5-6 at the Omni Nashville. At over 500 attendants, this is the largest gathering of Tennessee bankers throughout the year. If you have any questions, contact Susan Taylor, CMP, at [email protected].

PPCall

your state House and Senate members and invite them to join you for the 2015 TBA Legislative Reception that will be held at War Memorial Auditorium on February 4, the evening before the Credit Conference. For more information, contact Amy Smith at [email protected].

PPRegister for the Retail Sales and Bank Marketing

Conference, a new program that will be held at the TBA Barrett Training Center on January 13. As the economy slowly recovers, banks are taking a hard look at how to separate themselves from the competition. Get a head start by joining us for this inaugural program. For more information, contact Susan Taylor, CMP, at [email protected].

County Bank). We are also looking forward to working with newly elected House member and CapitalMark director Patsy Hazelwood (R-Chattanooga) as well as veteran legislator David Shepherd (D-Dickson), a director at Bank of Dickson and a longtime advocate for our industry. With these individuals, as well as many bank advisory board members, the Tennessee banking community is represented. This legislative session is guaranteed to be an active one. With the passage of Amendment One, I fully expect our newspaper headlines from the Hill to be dominated about changes to Tennessee abortion laws. Much like recent gun and education legislation, this might not be taking up the majority of the legislators’ time, but it will be the story above the fold in your local paper. Behind the

THE TENNESSEE BANKER | DECEMBER 2014

scenes, the budget will be a major issue as pressure increases to reduce both the Hall Tax and sales tax while tax revenues remain steady at best. Regardless of the issues of the day, you can count on your TBA legislative team to protect your interests in Nashville. However, our focus in the upcoming year will be primarily in Washington. Over the last two years, the House passed overwhelming bipartisan legislation that addresses everything from expanding the definition of qualified mortgages to revising mortgage servicing rules. But due to a heavily contested election, Majority Leader Harry Reid decided not to allow these bills to receive an “up or down” vote.

The message from the Republican Party is that these bills will receive a vote, and I am hopeful they will. After all, that is the job of Congress. Incoming Senate Majority Leader Mitch McConnell has a reputation as a dealmaker, and I am hopeful that we will benefit from a Republican majority that needs to prove its ability to lead if it is to retain the Senate and win the White House in 2016. I am optimistic Congress will be willing to compromise and work together, but neither party has shown much interest for this in recent years. As for the Tennessee delegation, Senator Corker probably will become chairman of the Foreign Relations Committee. However, he is likely to remain a member of the Senate Banking Committee. Senator Corker has been a vocal advocate of the banking industry,

and I know we will be able to count on him as we work to move forward an agenda that will allow us to better serve our banks and our communities. In addition, Congressman Stephen Fincher has been a strong supporter of Tennessee banking with his role on the House Financial Services Committee. He has signed on to every bill that supports traditional banking, and we look forward to working with him in the coming year. And when it comes to legislative opportunities in the upcoming year, you will be an important part of that effort. I cannot overemphasize how significant it is for the Tennessee banking industry’s “choir” to be filled with many voices. The TBA government relations team does a great job, but its leverage comes from the visible unity shown by our members. That’s why I am urging you to make

plans now to join us for the Washington Conference in May. Last year we took a record number of 70 bankers, and that turnout sent a loud and clear message to our legislators and regulators. We need as many of you as possible on board in 2015 if we are to continue the momentum we built. Let’s challenge each other to set a new record in May. Keep in mind that we have a very short window, between eight and 10 months, to get common sense reform through Congress. By next fall, everyone will be running for 2016, if they aren’t already. ■

THE TENNESSEE BANKERS ASSOCIATION

125th Annual Meeting The Greenbrier, West Virginia JUNE 7–9, 2015 Sponsorship and Exhibit Opportunities

For our 2015 convention, members of the Tennesse Bankers Association will return to The Greenbrier, “America’s Resort.” The Greenbrier, located just outside the town of White Sulphur Springs in West Virginia, is a Forbes four-star and a AAA Five Diamond Award winning resort that has been welcoming guests since 1778. What better place to celebrate our 125th Annual Meeting.

If your company would like to build stronger relationships with the financial institutions of Tennessee, then please consider one of the many sponsorship opportunities or a booth in the exhibit hall. The exposure your company will gain will heighten your brand recognition and drive sales. Watch your mailbox and e-mail for information about sponsorship and exhibit opportunities, in addition to registration and hotel accommodations for the convention. If you have questions about how you can participate, please contact: Exhibit Hall – Penny Powlas, [email protected] Sponsorships – Stacey Langford, [email protected] 615-244-4871 or 800-964-5525

DECEMBER 2014 | THE TENNESSEE BANKER

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Banking in a

Brave New World

ABA National Conference for Community Bankers February 8–11, 2015 | Boca Raton, Florida Boca Raton Resort & Club, a Waldorf Astoria Resort

Community bankers are eagerly watching the industry advance from a state of recovery to one of resurgence—and new opportunities. How we are positioned to achieve greater profitability and sustain long-term growth in this unique environment will be explored at the 2015 ABA National Conference for Community Bankers. Join us!

Register at aba.com/Community.

Washington Update

It’s Time to Reform the Farm Credit System By Frank Keating, President and CEO, American Bankers Association

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n a recent radio interview in San Antonio, TX, Michael Mauldin— regional president of First Financial Bank, Hereford, TX—described how the Farm Credit System has used its government guarantee to finance loans outside of its mission. Case in point: A $725 million loan for Verizon to buy out a European telecom company. The incredulous response from the show’s host: “What does that have to do with farming and ranching?” Earlier, in Birmingham, AL, Bob Jones, president and CEO of United Bank, Atmore, AL, and a member of ABA’s board of directors, explained in another radio interview how the Farm Credit System has lost sight of its original mission. “In 2012, only 17 percent of the $247 billion in outstanding Farm Credit System loans went to small farmers,” he said. “It morphed, as many bureaucracies do, into a much more far-reaching enterprise.” Bankers across the country—even those in suburban areas—have compelling stories about how the tax-advantaged Farm Credit System unfairly tilts the competitive playing field while exposing American taxpayers and our nation’s economy to significant risks. ABA is helping you share these experiences. And with guidance from our special ABA Agricultural Credit Task Force, composed of bankers and state association executives, we’re elevating and expanding our advocacy on this issue. In short, we’re taking a more strategic and aggressive approach. That approach includes a new website—ReformFarmCredit.com— that will shine a spotlight on the Farm Credit System, the first and leastknown of the government-sponsored enterprises. The website, set to go live December, 5, will help you tell your

story to members of Congress and opinion leaders. It promises to be a powerful tool in getting the word out about FCS abuses and ongoing mission creep.

progress, but we need to keep pushing Earlier this year, for example, ABA and Kansas banker Leonard Wolfe testified before a House subcommittee

If the Farm Credit System were a bank, it would be the ninth largest in the United States. In fact, it’s bigger than 99.9 percent of all banks in the country. These are facts policymakers need to know. Taken together, the system is a $266 billion entity. If the Farm Credit System were a bank, it would be the ninth largest in the United States. In fact, it’s bigger than 99.9 percent of all banks in the country. These are facts policymakers need to know. They also need to know that as a GSE, the Farm Credit System represents a risk to taxpayers in the same way that Fannie Mae and Freddie Mac do. And, while it creates additional risk for taxpayers—it ironically benefits from significant tax breaks. In 2013, those tax breaks totaled $1.3 billion—that’s quite a competitive edge. Today, the Farm Credit System is making risky loans with government backing—formalized last year by the creation of a $10 billion line of credit with the US Treasury. ABA and the state bankers associations are committed to exposing these truths. We need you to help, too. We’ll be asking you to “take a stand” and encourage your lawmakers to do the same. You need to let your lawmakers know that the FCS’ tax-free status and ever-expanding mission make it difficult to meet the needs of your customers and their constituents. No one can convey this message better than you. This is not a new battle. We’ve been fighting long and hard to put an end to the FCS inequities. We’re making

that has oversight over the Farm Credit System, bringing some much-warranted focus on its activities. Shortly after the June hearing, Representative Marlin Stutzman (R-IN), a member of the House Financial Services Committee, penned an op-ed urging that “Farming should be at the center of the Farm Credit System … Unless we return the Farm Credit System to its original mission, taxpayers could be on the hook for a bailout in the near future and farmers’ access to credit could be reduced.” Now, with the rollout of ReformFarmCredit.com and your engagement and involvement, we will continue to up our game. You’ll also be able to lobby this issue personally—along with other key banking advocacy priorities—at ABA’s 2015 Government Relations Summit, March 23-25, in Washington, DC. Registration for the Summit is free. Go to www.aba.com/ Summit to learn more. With all of these resources in place, it’s time to continue to show lawmakers the real threat that the Farm Credit System poses to taxpayers and the economy and the need for reform. ■ © 2014 American Bankers Association. All rights reserved. Reprinted with permission.

DECEMBER 2014 | THE TENNESSEE BANKER

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The Community Banking Event of the Year!

Register before January 19 and save $300 with early-bird pricing! NATIONAL CONVENTION

March 1-5, 2015 Gaylord Palms Resort & Convention Center

ORLANDO, FLORIDA Join us and be amazed how these four days will impact your career, your bank and your community. More than 60 education sessions with CPE credits Networking and entertainment opportunities Products and services from more than 240 providers Access to influential leaders and experts

General Session Speakers

(as of November 15)

Banquet Entertainment Midtown Men

Cam Fine

John Buhrmaster

Carly Fiorina

David Gregory

Kat Cole

Learn more at www.icba.org/convention2015

From the Top

Our Timeless Story By John H. Buhrmaster, Chairman, Independent Community Bankers of America

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s the holiday season goes into full swing, I can’t help but think of the iconic movie “It’s a Wonderful Life.” Since you can’t escape the holidays without at least watching it once, or catching a second of it while flipping through the TV channels, it’s only inevitable that you’ll catch a glimpse of the iconic George Bailey this month. And while I know the George Bailey reference has been used time and time again, what he stands for is timeless . . . especially to us community bankers. In the December issue of IB, we’re highlighting George Baileys across the country with ICBA’s first annual Community Banker of the Year Awards. I encourage you to read the profiles of the four award recipients in the cover story. I congratulate these community bankers and thank them for their dedication to this great profession and to the communities they serve. But I’m not going to stop there. I want to congratulate all of you for the work you do as community bankers. You are all heroes in your communities. You are the ones who keep Main Street alive and thriving. Those lights are on because of you and the hardworking citizens and small-business owners in your community—many of which you serve directly. And while I know all too well that community bankers are a humble bunch, you need to hear how important you are to the communities you serve, and, more importantly, you need to know how essential it is that you tell your story. What you and your staff do makes a real impact, and others need to know that. We can’t be shy about it. I know it goes against

our nature—but sometimes we need to get out of our comfort zone, and this is an example of that. Luckily, today we have so many tools at our fingertips to help us share our story and the success stories of our customers. We can use social media, live radio broadcasts, media interviews, websites, etc, to spread the word. The media is hungry this time of year for positive, feel–good stories. So get out there and share your good story about what you’re doing to help make Main Street bright. Our role in the community is equal to our role in the bank. Not just the CEO, but officers, auditors, compliance officers, facilities staff, tellers, and back office staff all typically get involved in the community, especially this time of year. So let’s talk about it.

This brings me to my final point. We all have unsung heroes in our banks. We need to be sure we recognize them in front of their peers by thanking them for their selfless work to make our communities better places to live. And really, isn’t the holiday season the best time to do that? So go ahead and help all of the George Baileys at your community bank shine by thanking them for their good work, and go ahead and share your positive story. After all, you too are a George Bailey—and that’s something that we should all be proud of. Happy Holidays! ■

DECEMBER 2014 | THE TENNESSEE BANKER

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Is Your Bank Ready for the Next Big Breach? How to reduce the risk of cybersecurity threats By Gina Pruitt, KraftCPAs PLLC, Nashville, TN

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t a recent banking conference, it became clear that the topic keeping CEOs and CFOs up at night is cybersecurity. Boards and their audit committees are also troubled about cybersecurity with good reason. With all the breaches, from Target to Home Depot, banks have been significantly affected. Banks are taking a financial beating due to use of bank credit and debit cards in these breaches, and some examiners believe hackers will target community banks increasingly because their controls seemingly are weaker than those of large banks. According to a recent Wall Street Journal (WSJ) Risk and Compliance blog, a LexisNexis study noted that consumers are more willing to share personal information with banks. This consumer confidence puts banks

at higher risk when retaining this data, especially if they don’t need it for business purposes—all the more reason banks must educate customers and ask them to play a role in protecting their own data.1 The WSJ blog also noted that a survey of financial industry executives performed by the Depository Trust & Clearing Corporation found a record 84 percent of respondents identified cyber risks as one of their top five concerns, with 33 percent ranking a cyber attack as the top systemic risk to the broader economy. A bank’s most important “asset” is its reputation. But, banks are also in the risk-taking business. Therefore, the bank’s board and senior management must determine their risk tolerance—the level of risk the bank is willing to accept. Once risk tolerance is decided, there are several ways to mitigate risk. Three key ways are to transfer risk outside the organization, limit risk within the organization, and avoid risk as an integral part of decision making.2 FFIEC Cybersecurity Pilot Program Intelligence At the 2014 TBA Strategic Technology Conference in April, examiners advised banks to expect a cybersecurity risk assessment package from the FFIEC. These packages contain information

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THE TENNESSEE BANKER | DECEMBER 2014

and suggestions for preparing a cyber risk assessment. This risk assessment is the initial “gap analysis” for your bank to start developing a cybersecurity program. In addition, on November 3, 2014, the Federal Financial Institutions Examination Council (FFIEC) released the “FFIEC Cybersecurity Assessment General Observations” and the “Cybersecurity Threat and Vulnerability Monitoring and Sharing Statement.” These documents address findings from the 2014 cybersecurity assessment pilot examinations performed at approximately 500 community banks throughout the country in the spring of 2014. Through this information, the FFIEC is providing more information on their expectations and recommendations, as well as more resources to help banks implement a sound cybersecurity program. In addition, they are updating current guidance to align with changing cybersecurity risk. See the November 3, 2014, press release and documents at http:// www.ffiec.gov/press/pr110314.htm. Initial reports, based on an August 4, 2014, BankInfoSecurity News interview, indicated that examiners want a “show and tell.”3 Therefore, banks need to demonstrate the specific details and procedures related to their plans, not just tell the examiner what they have in place. Early feedback indicates a primary gap: banks do not fully understand the specific threats that face them. Key program indicators the examiners appear to be looking for include, but certainly are not limited to:

• The program is well documented. • You can demonstrate that you have identified and put the right people in place. • You can demonstrate that the program is specific and relevant to your organization. • You can show why this is the right approach for your bank. • You have identified and outlined third parties’ responsibilities during a cyber attack. • You share information—i.e., internally and with other banks through various means, but specifically through the Financial Services Information Sharing and Analysis Center, better known as FS-ISAC. By sharing information and threats with FS-ISAC, better threat intelligence can be maintained for all banks to use in their risk management programs. In the future, banks can expect examiners to incorporate a new work program and assessment tool for cybersecurity to coincide with your regular IT exam. This new program and assessment tool also will be used at a number of the most critical third-party technology service providers. In a recent FFIEC webinar, Doug Johnson, vice president of risk management policy for the American Bankers Association, said, “The overall message from bank examiners is that C-level executives and boards of directors must ensure that cybersecurity is part of everyday business processes.” And, Bill Nelson, president of the Financial Services Information Sharing and Analysis Center, said C-level banking executives should be more directly involved with security and risk assessments.4 So, how do we do that? One suggested approach is outlined on the next page. Cybersecurity Risk Assessment – Where to Start Risk assessment is the first phase in the risk management process. The basic tenets of risk assessment can be applied to the process of performing

a cybersecurity risk assessment. Risk is generally assessed by identifying threats and vulnerabilities and then determining the likelihood of occurrence as well as the potential impact of an occurrence. In order for this process to be successful, it will require leadership and organization along with input and commitment throughout the organization to ensure all business components and information assets can be identified. In order to assess risk, determine its impact, and determine the potential cost to manage the risk, the suggested initial steps of the process include: 1. Identify and Classify Information Assets It is important to identify and classify sensitive, critical information assets that need to be managed. Information assets include various categories of data—both automated and nonautomated, including, but not limited to, data contained in records, files, and databases. The bank is responsible for protecting the confidentiality, integrity, and availability of information assets. Generally speaking, information assets are critical systems, customer interfaces, automated tools and source code, proprietary systems, and confidential records. Classification is a designation given to the information asset based on sensitivity and criticality to the bank. This value is normally determined by the information owner. 2. Identify Threats A threat can be a person, organization, or even an act of nature that could compromise information security. Threats can be malicious, intentional, unintentional, natural disasters, hardware failures, or viruses, among other things. We must look at the nature of threats, their capabilities, and resources to determine the likelihood of their occurrence. For this purpose, we assess risk and threats in terms of the probability of an attack or breach. Threat intelligence plays a key role in developing and maintaining your cybersecurity risk management program.

3. Identify Vulnerabilities Vulnerabilities could be weaknesses in a network, a particular system (i.e., lack of segregation of duties within an application), inadequate physical security, etc. Weaknesses potentially can be exploited to gain access and affect system and/or data integrity. Vulnerabilities should be assessed based on the type of weakness and the information asset(s) that would be affected. Auditors often look for vulnerabilities associated with confidentiality, integrity, and availability (CIA) of information. 4. Analyze Risk—Likelihood and Impact There are inherent risks for any process. Information security has more inherent risks and, therefore, requires more controls. Information that banks manage is highly sought after by threat actors, hackers, and even unethical employees. There is also the potential for unintentional and accidental breaches to information, as well. So, analyzing the risk to information assets based on the impact or criticality to the bank is key. Risk for a given asset generally can be determined using the following equation: Risk = Likelihood of a threat occurring against the asset x Value of the asset Based on this equation, the higher the likelihood of occurrence and the higher the value of the asset to the bank, the higher the risk level—and the cost of a successful breach. Limiting Risk: Integrating a Cybersecurity Program Cybersecurity touches almost all aspects of the bank. Once the bank continued on next page About the Author Gina Pruitt, CPA, CISA, CGMA, CRISC, CQA, CITP, is the member-in-charge of risk assurance and advisory services with KraftCPAs PLLC, where she is also a member of the firm’s banking industry team. Pruitt can be reached at 615782-4207 or via e-mail gpruitt@ kraftcpas.com.

DECEMBER 2014 | THE TENNESSEE BANKER

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Cybersecurity continued has prepared the cybersecurity risk assessment, you must implement a cybersecurity program. To implement a cybersecurity program, banks will have to address those threats identified in the risk assessment by defining the mitigating factors affecting the processes and programs within the bank. Other critical areas a cybersecurity program ties to include the bank’s: • Gramm-Leach-Bliley Act (GLBA) Information Security Program, • Business Continuity and Disaster Recovery Plans, • Incident Response and Crisis Management Plans, and • Third-party Vendor Management Program. Integrating a cybersecurity program means weaving it throughout these and other key areas of the bank. Specifically, it will be important to identify and document how the following will be addressed: • Protecting data—Document your data protection program such as logging and monitoring probable attacks, quarantining systems, encrypting data in-transit and at rest, as well as managing third parties who affect the bank’s systems and data (noted as External Dependency Management in the November 3, 2014, FFIEC documentation). • Backups and recovery—Minimize loss and downtime by incorporating recovery time objectives (RTOs) for backups and testing backups for fast and efficient recovery. In addition, incorporate tests for cybersecurity incident scenarios into your regular business continuity and disaster recovery testing. • Upgrades and patches—Have a process to maintain systems with the most current upgrades and patches in a timely and consistent manner. • Anti-virus and malware detection—Have a process to ensure the most current anti-virus and malware detection software are on both servers and employee workstations. • Threat intelligence—Document how you will gather and deal with threat intelligence. Identify specific threats your bank is facing.

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• Detection and incident response— Determine how your bank will identify and respond to breach attempts, threats, etc. (i.e., document various threats and potential responses, who will be involved, what steps will be taken, and in what order, etc.) • Continuous monitoring—Institute procedures to identify and alert key personnel when a possible attack or breach is indicated and provide a means for monitoring logs and reports in a timely, consistent manner. • Periodic network assessments and social engineering—To ensure cybersecurity procedures are working, incorporate an independent third-party network vulnerability assessment, social engineering, and internal and external network penetration tests. Scanning is helpful, but a full penetration test should be performed at least every 6 to 12 months. • Training and education—Annual employee security training is a requirement of GLBA, but customize training to address specific threats to your bank. Customer education is crucial, especially for commercial customers. Continue to develop training and provide information to customers often. Incorporate customer responsibilities for security and communicating possible breaches into internet banking, mobile banking, remote deposit capture, and other programs. By no means is this an exhaustive list, but it is a set of crucial items to be considered and documented. In addition, identifying and communicating with all the players and documenting their responsibilities is key. Transfer Risk – Cyber Liability and Insurance Traditionally, we think of insurance as a means to transfer risk to a third party. Cybersecurity risk is somewhat different. We must portion and partition off pieces of risk. Cyber insurance is one element of transferring risk. Other elements may include utilizing third–party vendors—as long as the bank performs adequate due diligence in selecting vendors, clearly outlines

THE TENNESSEE BANKER | DECEMBER 2014

expectations and responsibilities of the vendor, and has a consistent and thorough vendor management program—and obtaining other insurance policies related to physical structures, equipment, and so on. As for cyber liability insurance coverage, there are approximately 50 major insurance providers that provide some level of liability policy. But these policies vary widely from provider to provider, due, in part, to the lack of experienced underwriters.5 Therefore, policies tend to have to be custom designed, and companies are not sure what their policy should cover. Often, there will still be coverage gaps, so coordination of coverage is important. In some cases where the cyber liability policy does not cover an area, professional liability insurance, which should include directors and officers (D&O) and errors and omissions (E&O), may address the risk. Finally, a fidelity bond, which protects the company against acts of individual employees, whether intentional or negligent, may cover certain aspects of a cyber incident.6 Currently, there are four main types of cyber liability coverage: Data breach and privacy management coverage, multimedia liability coverage, extortion liability coverage, and network security liability.7 Regardless of type, the better your organization has implemented risk management processes and procedures, the lower the premiums should be. Insurance companies will need to see these processes and procedures in action, including the identified mitigation plans and third–party vendor management documentation. Policies will include clauses that limit or waive coverage if certain controls and procedures are not in place and limit liability for breaches or losses caused by third parties. There will also be a large deductible. Consider the Target breach. Although Target had approximately $100 million in cyber liability coverage with a $10 million deductible, the estimated cost of the breach is $1 billion.

Risk Avoidance in a Cyber World Some of us are natural risk takers; others avoid risk at all cost. Avoiding risk in business is important, but there must be balance. The discernment required for risk management is developed over time, which is why most organizations limit critical decision making to experienced management personnel. Even then, the most critical and potentially costly decisions are made by multiple parties. Regardless of how decision making is handled at your bank, risk management should become an integral part of making business decisions. In the cyber world we live in, continuous vigilance, monitoring, and training are critical. Leading by example at the executive level and sharing how employees can help the bank avoid and limit risk will ingrain these concepts—for instance, maybe that means a reward system or adding to bonus criteria. Finally, customer education and knowledge sharing, especially with high-risk commercial customers, is a must. Getting customer buy-in and encouraging them to use alerts and other banking tools will help to make them an extension of your risk avoidance model. In the end, we cannot completely manage risk out of the business, or the business will be stifled. But, developing a cybersecurity risk assessment, implementing a cybersecurity program, and designing a risk avoidance model will help significantly to manage and mitigate the risk of cyber related incidents. For more information on the cybersecurity assessment and other cyber-related issues, visit the FFIEC cybersecurity awareness page at www.ffiec.gov/cybersecurity.htm. ■ End Notes 1 “Survey Roundup: Getting on Board with Cybersecurity,” October 24, 2014, http://blogs.wsj.com/ riskandcompliance. 2 “Cyber Security: Risk Management, A Non-Technical Guide,”

http://www.dhses.ny.gov/ocs/, New York State, Office of Information Technology Services. 3 Tracy Kitten, “FFIEC Cyber Exams: Lessons Learned,” August 4, 2014, www.bankinfosecurity.com. 4 Tracy Kitten, “FFIEC Cyber Assessments: What to Expect,” May 12, 2014, www.bankinfosecurity.com. 5 Eric Chabrow, “Lessons Learned

from Cyber Insurance,” June 26, 2014, www.bankinfosecurity.com. 6 Paul Hechinger, “Cybersecurity Insurance: What Advisors Need to Know,” October 24, 2014, Financial Planning Magazine. 7 Surfwatch Labs, “Using Cyber Insurance and Cybercrime Data to Limit Your Business Risk,” Copyright 2014.

When it comes to the banking industry, KraftCPAs has the bases covered.

• External & internal audit • SOX documentation & testing • Compliance reviews • Loan reviews & grading systems • Employee benefit plan audits

• Information systems assurance & consulting • FFIEC audits • Risk assessment • External penetration testing • Internal penetration testing

• Merger/acquisition assistance

• Forensic accounting

• Valuation services

• Enterprise risk management

• Tax planning & compliance

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In Nashville, contact Wynne E. Baker - 615-782-4230 Gina Pruitt - 615-782-4207 In Columbia, contact Beverly Horner - 931-388-3711

www.kraftcpas.com/banking.htm

DECEMBER 2014 | THE TENNESSEE BANKER

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Independent Bankers Division Members Elect New Officers and Directors

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ommunity bankers from across the state gathered at the DoubleTree by Hilton Hotel in downtown Nashville October 30 and 31 for the annual TBA Independent Bankers Division Convention. The convention featured an afternoon business session and reception on Thursday and a morning business session the following day. Bankers and representatives of TBA associate member companies heard presentations on topics of current interest from a lineup of experts. Independent Bankers Division President Ted Williams, president and CEO of TriStar Bank in Dickson, presided over the convention.

New Officers and Directors During the Friday morning business session, delegates to the convention elected new officers and directors to lead the division during 2014-2015. LaFollette banker Logan Hickman, Jr, was elected to succeed Williams as division president. Newly elected executive officers elected are: • President – W. Logan Hickman, Jr, executive vice president, Peoples Bank of the South, LaFollette • President-elect – Phillip Renfroe, president/CEO, Community Bank, Lexington • First Vice President – Bill Yoder, president/CEO, Southern Community Bank, Tullahoma • Second Vice President – Kenneth V. Jones, president/CEO, Citizens Bank, New Tazewell • Secretary/Treasurer – Philip Calahan, president/CEO, Peoples Bank & Trust Company, Manchester As president of the Independent Bankers Division, Hickman also will sit as an ex-officio member of the Tennessee Bankers Association board of directors for 2014--2015. The TBA

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Executive officers for 2014–2015 are (left to right) Bill Yoder, Logan Hickman, Ted Williams, Phillip Renfroe, Ken Jones, and Philip Calahan.

Directors for 2014–2015 attending the convention were (left to right) David Barnes, Gay Dempsey, Jack Allen, Mark Holder and Michael Hagan.

board is responsible for establishing the overall goals, policies, and activities of the association. As immediate past president, Williams will continue to sit on the Independent Bankers Division board of directors for three years. In addition to executive officers, each year convention delegates elect one director from each of the three Grand Divisions of Tennessee to replace three directors who rotate off the board. New directors elected to three-year

THE TENNESSEE BANKER | DECEMBER 2014

terms on the board during this convention were: • East Tennessee – Jack B. Allen, president/CEO, Citizens National Bank, Athens • Middle Tennessee – Gay Dempsey, executive vice president, Bank of Lincoln County, Fayetteville • West Tennessee – Wright Cox, president, BankTennessee, Collierville In addition, Mark Holder, executive vice president, TNBANK, Oak Ridge, was elected to serve the

Speaker Chris Hargrove Speaker Brian Gottlob Independent Bankers Division President-elect Logan Hickman (right) presents an engraved clock to outgoing President Ted Williams in appreciation of his service. Speaker Robert McCabe

remaining two years of East Tennessee director Ken Jones’s term. Jones was elected second vice president. Directors who continue their terms are: • William E. Edwards, president/ CEO, Mountain Commerce Bank, Johnson City • David W. Barnes, president, Bank of Frankewing, Frankewing • Matthew D. Daniels, president/ CEO, Bank of Camden, Camden • Gene Seaton, president/CEO, Franklin County United Bank, Decherd • Wayne Minton, president/CEO, The Bank of Milan, Milan Ex-officio directors continuing are: • J e f f r e y L . C u n n i n g h a m , president/CEO, Athens Federal Community Bank, Athens

• Michael W. Hagan, president/CEO, Reelfoot Bank, Union City Completing their terms and rotating off of the board were: • Past President Thomas E. Bates, Jr, president/COO, Legends Bank, Clarksville • Director R. Craig Holley, president/ CEO, CapitalMark Bank & Trust, Chattanooga • Director John Lancaster, president/ CEO, First Freedom Bank, Lebanon • Director Phillip May, president, West Tennessee Division, Metropolitan Bank, Memphis The Independent Bankers Division of the Tennessee Bankers Association was organized in 1973 to represent the interests of Tennessee’s community banks in areas such as legislation and education. continued on page 19

Thank you to our sponsors

DECEMBER 2014 | THE TENNESSEE BANKER

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The reception following Thursday afternoon’s business session provided a time to network for community bankers from across the state.

Incoming Division President Logan Hickman talks with Beverly Horner of KraftCPAs during the morning coffee break sponsored by Kraft.

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THE TENNESSEE BANKER | DECEMBER 2014

Independent Convention continued Business Sessions The Thursday afternoon business session featured three topics and speakers. The program opened with Chris Hargrove on Shareholder Value Enhancement, a discussion of how the “valuation matrix” has changed since the nationwide credit crisis. Hargrove is chairman and CEO of Professional Bank Services. In Tennessee Credit Union Trends and Key Factors Influencing Them, Brian Gottlob delivered excerpts and findings from a study the Independent Bankers Division commissioned regarding the growth, market share, profitability, and key performance ratios of Tennessee credit unions in relation to those of community banks. Gottlob is principal with PolEcon Research, which conducted the study. Robert A. McCabe, Jr, closed out the day’s program with “Yes on 2,” an explanation of Amendment 2 on the ballot in the November election. The TBA board of directors endorsed the amendment, ultimately passed by

voters, which was designed to strengthen and codify how Tennesseans choose appellate court judges. McCabe is chairman of Pinnacle Bank in Nashville. Following the call to order on Friday morning, TBA Chairman Bill Marsh took the podium to welcome attendants and deliver a TBA Update. Next was a report on the Tennessee Financial Literacy Commission activities presented by Tennessee State Treasurer David H. Lillard, Jr. Lillard talked about the financial literacy training the department makes available to teachers across the state and the impact it has had on student knowledge of finance. Economist Elliot Eisenberg’s presentation, The Economic Forecast: Fair with a High Chance of Regulation, was not the typical recitation of numbers and statistics. While Eisenberg did talk about the state of the economy and predictions for the near future, his style was thoroughly entertaining. Independent Division President Ted Williams delivered a report on the division’s activities over the past year. This

was followed by the election of new division officers and directors. The final session of the convention was Who’s Been Hacked and Who’s Responsible? Craig Collins, president of financial services with OneBeacon Professional Insurance, was the presenter. Collins discussed common scams such as keystroke viruses, tech support scams, and phishing in addition to some alarming trends, including: • 1 in 7 American networks have malware • Phishing e-mails have a 70 percent open rate • Gas pump skimmers are often bluetooth enabled now • Corporate account takeovers are the fastest growing criminal actions being reported to bank insurers. If you missed this year’s Independent Bankers Division Convention we hope you will make plans to join us in Nashville in November of next year. ■

Speaker Craig Collins TBA Chairman Bill Marsh and Ron DeBerry. Economist Elliot Eisenberg speaking with Independent Bankers Division President Ted Williams and Van Davidson from Bankers’ Bank of Kentucky. State Treasurer David Lillard

DECEMBER 2014 | THE TENNESSEE BANKER

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February 5 & 6, 2015

2015 Credit Conference Make Omni Hotel Reservations Early

I

f you are evaluating where to spend your professional development dollars in 2015, please keep in mind TBA’s annual Credit Conference. This is one of TBA’s largest meetings of the year, with attendance averaging 450 members of the banking community and representatives of our associate member companies. The 2015 Credit Conference is scheduled for February 5 and 6 at the Omni Hotel in downtown Nashville. John McDearman, Credit Committee chairman and executive vice president of Wilson Bank & Trust, will call the conference to order at 9:00 am on February 5, following registration and continental breakfast beginning at 8:00. The Thursday agenda features a morning general session, a special motivational luncheon speaker, concurrent afternoon workshops, and a reception to round out the first day of the program. Dinner that evening is on your own. A second morning general session follows on Friday, and the conference is scheduled to adjourn at 11:00 that morning. The program content was developed to benefit executive and senior management, commercial loan officers, and loan support personnel.

General Sessions Thursday morning’s opening session features the following topics and speakers: • Economic and Financial Market Outlook: What Can We Expect from the Federal Reserve in 2015? – Joseph T. Keating, chief investment officer, executive vice president, and head of wealth management, CenterState Bank, Birmingham, AL. Will the economy’s growth rate pick up? Is inflation ready to rise or fall? Will

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longer-dated Treasury yields rise when the Federal Reserve eventually raises short-term interest rates? Can stock prices continue to rise? Come listen to Keating for the answers to these and many more questions. • The Road Ahead: Five Questions for Bank CEOs and Directors – Richard J. Parsons, author and consultant, Charlotte, NC. After a 31–year career in banking, Rick Parsons wrote Broke: America’s Banking System, published in 2013 by the Risk Management Association. The book explains why the US banking system is vulnerable to devastating cycles of failure. Expect to be challenged by Parsons’s data and provocative ideas. When the meeting reconvenes on Friday morning, the general session features: • Young Bankers Division Update – Emily Gray, president of the Young Bankers Division and senior vice president/senior credit officer, The Hardin County Bank, Savannah, TN • State and Federal Legislative Update – Timothy L. Amos, executive vice and general counsel, Tennessee Bankers Association, Nashville, TN • The Interest-Rate Outlook – William R. Emmons, assistant vice president and economist, Federal Reserve Bank of St Louis, St Louis, MO. The economic recovery is in its sixth year, while the era of short-term interest rates pinned near zero is in its seventh year. Many forecasters expect an economic acceleration in 2015 with higher short-term interest rates before the end of the year. But the consensus has been too optimistic about growth every year since the recovery began, while higher short-term interest rates also have been delayed year-afteryear. Will 2015 be the year when the economy shifts into higher gear and continued on next page

THE TENNESSEE BANKER | DECEMBER 2014

Program Speakers

Amos

Cochran

Emmons

Gonzalez

Gray

Howard

Isaacs

Keating

Parsons

Presnell

Smith

Sprang

February 5 & 6, 2015

Special Luncheon Speaker The Power of Football – Inquoris “Inky” Johnson, Sports and Health Coordinator, JustLead, and former University of Tennessee football player, Knoxville, TN. For former UT football player “Inky” Johnson, a promising career with the Vols seemed to point toward the possibility of being drafted into the National Football League. However, an injury on the field during his junior year in 2006, left Johnson’s right arm completely paralyzed, ending all hopes of a professional football career. He continued to work in various interest rates rise above zero? Come hear Emmons’s thoughts on the matter. • Straight from the Commissioner – Greg Gonzales, commissioner, Tennessee Department of Financial Institutions, Nashville, TN. Commissioner Gonzales wraps up the 2015 Credit Conference with candid comments addressing some of the most relevant issues confronting banks today. Don’t miss this opportunity to hear his thoughts and perspectives on these important issues. Afternoon Workshops Following lunch on Thursday, bankers will break up into smaller groups for the concurrent workshops. There will be six workshops in two groups of three. The first group is scheduled from 1:45 to 3:00 pm and the second from 3:20 to 4:35 pm, with a 20–minute break in between. Topics and speakers are: • Workshop I – FASB’s CECL Model: What Next? – Todd Sprang, principal, Clifton Larson Allen, LLP, Oak Brook, IL. Since its release nearly two years ago, FASB’s ASU Financial Instruments: Credit Losses—the organization’s latest proposal outlining how to measure credit losses—has garnered a lot of attention. The proposal has the potential to change drastically the allowance for loan and

roles with the UT athletic department while finishing his bachelor’s degree. He then earned a master’s degree in sports psychology. According to Johnson, this was God’s plan for his life. Instead of an NFL career, Johnson became the sports and health coordinator for JustLead, the flagship program of Emerald Youth Foundation, a nonprofit ministry for youth in inner-city Knoxville. Hear how Johnson turned his injury into his life’s calling—working with kids that come from all different walks of life, to support them through their challenges and show them that somebody cares. lease losses for an institution. Sprang will cover the proposed current expected credit losses (CECL) model and the latest developments and status of the proposed guidance. • Workshop II – Pay for Performance: A Key Element to Succession Planning (how to Keep Your Lenders, Shareholders, and Regulators Happy with Strong Compensation Plans for Retaining, Recruiting, and Rewarding!) – Kathy Orr Smith, president, Bank Compensation Consulting, Plano, TX. Are you worried about losing your top lenders to your competition? How about the millennials that might have different needs than your more seasoned lenders? How do you retain them at your bank for the long term? We all realize that it is more expensive to have to replace a lender than it is to retain them. Attend this workshop to learn how to accomplish your goals. • Workshop III – Pros and Cons of Asset-Based Lending – John Cochran, principal consultant and trainer, Cochran Associates, LLC, Jefferson City, MO. In this session, Cochran will review the advantages and disadvantages of asset-based lending, emphasizing the credit and operational risks associated with this type of small business lending. He will highlight bank policy and credit administration procedures and controls as well as the major aspects

of the borrower’s financial condition and performance. Cochran will conclude with borrower warning signs that likely indicate deterioration in the borrower’s asset quality and repayment ability. • Workshop IV – Here There Be Dragons: or Thar’s Gold in Them Thar Fields! – Steve Isaacs, PhD, professor, Agricultural Economics, University of Kentucky, Lexington, KY. Isaacs will present a broad overview of the ag economy, the ag community, and how ag differs from the rest of the world. He will examine both the perils and the potential in the ag lending field. Ag is a different animal (pardon the pun). There’s money to be made, but there are also pitfalls to avoid. • Workshop V – Documentation, Internal Controls, and Subpoenas: Avoiding Regulatory and Litigation Issues – Ty Howard and Todd Presnell, partners, Bradley Arrant Boult Cummings LLP, Nashville, TN. Property managing, documenting, and controlling banking information are especially challenging in a highly regulated industry, and missteps can lead to regulatory and litigation risk. Further complicating matters, financial institutions increasingly encounter government enforcement actions, as recipients of subpoenas, victims of fraud, or even targets of investigations. This workshop will survey some of the landmines banks and financial institutions currently face and address best practices to reduce their legal risk. • Workshop VI – Appraisals and Evaluations: Lessons Learned - John Cochran, principal consultant and trainer, Cochran Associates, LLC, Jefferson City, MO. Cochran will cover federal regulatory requirements for appraisal and evaluations as well as the lessons learned about the “dependability” of real property values. Other topics include requirements for a board-approved appraisal and evaluation program and stress testing and capitalization rates in relation to the valuation of nonowner occupied commercial real estate properties.

DECEMBER 2014 | THE TENNESSEE BANKER

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February 5 & 6, 2015 Members / Member / Associate Nonmembers Nonmember Associate Members Member Spouses Spouses Early Registration

$400

$50

$800

$100

Each Additional Person

$375

$50

$775

$100

Early registration deadline is January 21. Registration

$430

$50

$860

$100

Each Additional Person

$405

$50

$835

$100

Day-of-Program

$480

$75

$910

$125

Hotel Information TBA has reserved a block of rooms at the Omni Hotel at a special group rate of $194. Since opening a little over a year ago, the Omni Hotel has proven to be a Nashville destination in itself, whether for convention-goers or tourists. TBA already knows that the hotel will be sold out with two additional groups during the Credit Conference. Therefore, it is imperative for those who want accommodations in the Omni for the conference to make your reservations early. January 14 is the cutoff date for the TBA room block, and it will not be extended, but if the allotted block sells out before January 14, rooms will be on a space-available basis at standard rates. To r e s e r v e y o u r a c c o m m o dations, call Omni reservations at 800-THE-OMNI and refer to the Ten-

nessee Bankers Association Credit Conference to receive the special group rate. Conference Registration Fees Credit Conference registration fees cover instructional materials, lunch and the reception on Thursday, and continental breakfast and refreshment breaks on both days of the conference. TBA is offering a team discount for multiple registration from the same institution. For registrations made at the same time, only the first registrant will pay the full fee, with a $25 per person discount applicable to additional registrants. Remember, this applies only to registrations made at the same time. Registrations received in the TBA office by the close of business on January 21 qualify for early registration fees. After January 21, standard fees apply. All day-of-program registrants will be assessed an additional $50 late registration fee, and the team discount is not available that day.

Thank You to Our Sponsors Crowe Horwath LLP, Franklin, TN Crowell & Crowell, PLLC, Franklin, TN Elliott Davis/Decosimo, Greenville, SC Financial Products and Services, Inc. (Financial PSI), Nashville, TN First National Bankers Bank, Birmingham, AL KraftCPAs PLLC, Nashville, TN Mauldin & Jenkins CPA, LLC, Chattanooga, TN ServisFirst Bank, Memphis, TN Southeastern Commercial Finance, LLC, Memphis, TN Visit the TBA website at www. TNBankers.org/calendar to register online or to download a copy of the Credit Conference brochure containing complete program information and a printable registration form. If you have questions about this program, please contact Susan Taylor, CMP, via e-mail to [email protected] or call 615-244-4871 or 800-964-5525. ■

Make plans to attend TBA’s 2015

LEGISLATIVE RECEPTION

Wednesday, February 4 5:30 – 7:30 pm War Memorial Auditorium 301 6th Avenue, North, Nashville, TN (Evening before 2015 Credit Conference) Separate registration & fee required Register online at www.TNBankers.org

For more information about this program, please contact: Penny Powlas • [email protected] 615/244-4871 or 800/964-5525

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THE TENNESSEE BANKER | DECEMBER 2014

Leadership Luncheons 2014

T

he Young Bankers Division hosted seven Leadership Luncheons around the state in October and November. The Leadership Luncheons combine two major objectives of the division, networking and advocacy. At each luncheon, attendants spent time with industry peers from their local banking communities and heard from influential political leaders. Participation increased in several locations this year, with total attendance of 150 bankers. Alexander Thompson Arnold, PLLC, served as the statewide sponsor of the luncheons and was represented by a member of their financial institutions team at each event. This year’s guest line-up featured several members who will be sworn in as freshmen lawmakers in Nashville this January. This early exposure provided the attendants a great opportunity to introduce themselves and promote the good that bankers do in the community while the lawmakers are in the earliest stage of their terms. continued on next page

Sponsor Jack Mathis of Alexander Thompson Arnold, PLLC, and Young Bankers board members Andy Collins, Emily Gray, and Danielle Williams at the Jackson luncheon. Memphis luncheon attendants. State Senator Lee Harris addressed Memphis luncheon.

Thank you to our sponsor

DECEMBER 2014 | THE TENNESSEE BANKER

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Leadership Luncheons continued The statewide tour launched in Memphis, with first-term State Senator Lee Harris speaking to the group. The senator spoke about his experiences on the Memphis City Council and priorities for the Memphis district. The next stop was Jackson where attendants heard from former Senator Lowe Finney, who stressed the importance of young professionals being

engaged and informed as to the political leadership in their area. He encouraged the bankers attending to consider taking elected or leadership roles in their own communities. The first week wrapped up with Representative Patsy Hazlewood who spoke to bankers in Chattanooga. Hazlewood is a first-term representative who also serves as a founding director for Capi-

talMark Bank & Trust. Heading East for week two of the Leadership Luncheons schedule, Cookeville was the host city to a strong turnout of bankers and informative remarks regarding the state budget and political processes from Representative Cameron Sexton, majority whip and banker at Cumberland County Bank.

Former Senator Lowe Finney addressed the Jackson luncheon.

Representative Cameron Sexton and attendants of the Cookeville luncheon.

Participants of the Chattanooga luncheon. Representative Patsy Hazlewood with CapitalMark bankers.

Representative Bud Hulsey and attendants at the Kingsport luncheon.

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THE TENNESSEE BANKER | DECEMBER 2014

Knoxville luncheon.

The Tri-Cities luncheon was held in House District 2 with first-term Representative Bud Hulsey addressing the group. Representative Hulsey remarked on his background and desire to help the people and businesses of Kingsport through his newly elected position. Knoxville attendants had the opportunity to meet and hear from newly elected State Senator Richard Briggs. Briggs has an impressive resume reflecting an admirable track record of service with extensive military, medical, and city council experience. The senator was also the victor of one of the most watched primary races in the state in which he took on incumbent Senator Stacey Campfield. Finally, the luncheons concluded in Nashville where Mayor Karl Dean

discussed his priorities for the country’s current “it” city. Mayor Dean encouraged the group not to shy away from progress or change when it comes to improvements and expenditures that will benefit current and future generations. The Leadership Luncheons also serve as a way to introduce the priorities and role of the Tennessee Bankers Association to the participants. Young Bankers Division President Emily Gray, The Hardin County Bank, spoke to each group about the value that engagement with the TBA can bring to individual bankers, making them invaluable to their institutions based on skills they develop through professional development, advocacy, and networking. The Tennessee Bankers Association is proud of its long history of an engaged

Young Bankers Division. The strong turnout for luncheons across the state is evidence of the bright future for not just the division, but the Tennessee banking industry as a whole. ■

JOIN US IN 2015

FOR THE

LEADERSHIP CONVENTION THE PEABODY MEMPHIS APRIL 26-28

Senator Richard Briggs at the Knoxville luncheon. Nashville Mayor Karl Dean spoke to bankers during the Nashville luncheon.

Attendants of the Knoxville luncheon. Participants of the luncheon in Nashville.

DECEMBER 2014 | THE TENNESSEE BANKER

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How can you improve bank exams?

TRANSPARENCY. ACCOUNTABILITY. PREDICTABILITY. Tired of exam surprises? By taking our survey you are providing anonymous feedback that will be used to hold regulators to consistent standards. More than 2000 bankers have already participated.

Take a stand. Take the survey.

Take the RFI survey at www.allbankers.org *

*RFI = Regulatory Feedback Initiative

2014

YEAR IN REVIEW

IT

is with great pride that the Tennessee Bankers Association embarks on our 125th year representing the unified voice of the Tennessee banking industry. TBA is dedicated to the success of our members and, through our best-in-class professional development, advocacy efforts, and endorsed partner relationships, seeks to provide regulatory relief and deliver essential services that strengthen your balance sheet and add value to your institutions. STATE ADVOCACY TBA’s government relations team is trusted, respected, and dedicated to promoting and preserving the pro-banking environment the industry has achieved over the years. The track record for legislative success of the TBA is the best in the state, bar none. In 2014, TBA’s legislative agenda passed with unanimous support and included legislation to: • Allow next of kin to negotiate checks when no estate is open rather than having to pay the expense of having to open a small estate with the county clerk’s office, and • Deter sending frivolous and extortive demand letters to banks and other businesses for licensing fees and threatening litigation for violating patents.

TBA’s government relations team also lobbied successfully against legislation that would have had a negative impact on the banking industry, including: • Requiring ATMs in locations where alcohol and liquor-by-the drink are sold be programmed not to accept EBT cards, with significant penalties on ATM owners for noncompliance; • Adverse changes to where and how local governments can invest idle funds; and • Increasing the homestead exemption amount to $1 million in the case of bankruptcy. TBA BANKPAC During the 2013-2014 election cycle, TBA BankPac contributed over $300,000 to candidates and state parties and caucuses, making it one of the top-contributing business PACs in the state. The success of BankPac would not be possible without the strong support of TBA’s member banks and associate members. In 2013, they contributed $202,733, which marked the first time BankPac crossed the $200,000 milestone, and we’re on track to meet those goals again in 2014.

2014 YEAR IN REVIEW FEDERAL ADVOCACY Resulting from TBA and banker outreach to Congressional members throughout the year, Tennessee leads the country in number of cosponsors for several key pieces of regulatory relief legislation, including: portfolio lending (HR 2673); mortgage relief (HR 4521); regulatory clarity (HR 4466); the CLEAR Relief Act (HR 1750); and exam fairness (HR 1553). TBA continued the fight to level the playing field between banks and credit unions by commissioning an independent study to evaluate statistically the evolution of credit unions in Tennessee over the last decade. This information will fuel a strategic media and public awareness campaign and be used as a key advocacy tool. TBA hosted a record number of bankers—over 70— at the 2014 Washington Conference. TBA consistently remains one of the top associations of all state banking associations across the country for number of attendants on the Washington trip. Participants this year met with top officials from the FDIC, OCC, and CFPB, as well as all members of the Tennessee Congressional delegation or their staff. During the 2013-2014 election cycle, TBA reached its goal of hosting in-district banker meetings with each willing member of Tennessee’s Congressional delegation. The meetings provided an excellent opportunity for our Congressmen to hear what’s on the minds of their bankers in an intimate setting and for bankers to gain first-hand insight into the political landscape of DC. GIVING BACK Through the TBA Young Bankers Division’s Personal Economics Program, over 370 volunteer bankers representing 46 banks reached over 64,609 Tennesseans through 2,866 presentations in schools and to community groups to elevate the financial literacy of our communities. Tennessee banks continue to use TBA endorsed partner EverFi, a company that partners with banks to offer schools access to a web-based financial literacy platform that uses the latest in gaming, media, and simulation technology to engage today’s digital generation in their financial literacy outreach. In the 2013-2014 school year, this partnership was implemented in 108 schools reaching almost 12,000 students across the state. The TBA continued its partnership with Treasurer David Lillard by serving as a sponsor of the Tennessee Financial Literacy Commission, supporting their efforts to train teachers to instruct on financial literacy. TBA is also an active participant in the Tennessee Jump$tart Coalition.

211 Athens Way, Ste 100 • Nashville, TN 37228-1381 • 615/244-4871 or 800/964-5525 • Fax 615/244-0995 • www.TNBankers.org

2014 YEAR IN REVIEW COMPLIANCE SOLUTIONS TBA recognizes the tremendous compliance burden on Tennessee’s banks and remains dedicated to finding solutions to alleviate those pressures. TBA increased the number of live and online training programs focused on regulatory changes, and now 45 Tennessee banks’ senior compliance officers participate in the quarterly Compliance Forums. Frustrated by an all too often one-sided regulatory process lacking in transparency, accountability, and predictability, TBA joined a coalition of state bankers associations and launched the Regulatory Feedback Initiative. RFI consists of brief anonymous and confidential online surveys about exams in order to allow the industry to track regulatory practices and identify inconsistencies or misguided regulatory treatment as compared with the experiences of other banks throughout the nation. PROFESSIONAL DEVELOPMENT One of TBA’s top strategic priorities is to remain the leading provider of high-quality, cost-effective professional development training for banks. This year, TBA expanded the sites across the state for live training and has pursued partnerships with neighboring state associations to bring live programming to better serve the border regions of our state. In 2014, 95 percent of Tennessee banks participated in at least one of TBA’s 80 live professional development events or webinar training sessions. MEMBERSHIP TBA takes great pride in serving as the unified voice of the Tennessee banking industry for the last 124 years. Keeping a strong connection with each member bank is a priority of the association, and, in addition to visiting with members during events throughout the year, TBA places a high value on traveling the state to visit our members in their communities and in their bank offices. In addition to endorsed partner relations with 14 companies, TBA also counts as valued associate members 200 companies located around the country doing business with Tennessee banks. All of these companies provide tremendous support back to the TBA and the Tennessee banking industry whether through contribution to BankPac, participation in training programs, sponsorship of events, or shared revenue back to the association.

211 Athens Way, Ste 100 • Nashville, TN 37228-1381 • 615/244-4871 or 800/964-5525 • Fax 615/244-0995 • www.TNBankers.org

February 23–25, 2015

The Southeastern School of Advanced Commercial Lending Discounted Tuition Deadline Is January 30

D

ates for the 2015 session of The Southeastern School of Advanced Commercial LendingSM (TSSACL) are February 23-25. The school will be held at the Loews Vanderbilt Hotel in Nashville, and the TBA is now accepting applications. All applications received in the TBA office through January 30 qualify for discounted tuition—a savings of $200. TSSACL Overview Established in 1994, the TSSACL is conducted by the TBA in cooperation with the Georgia, Louisiana, and Mississippi bankers associations. It is an intensive program that meets the needs of both community and holding company commercial lenders in today’s environment. The curriculum focuses on advanced cash flow and loan structure, commercial real estate lending, and new approaches to predicting portfolio credit performance and managing portfolio credit risk. Ideal candidates to attend this advanced program include commercial lenders, relationship managers, portfolio managers, senior credit managers, and others in the bank with responsibility for profitably growing the bank’s loan portfolio and managing portfolio risk. Housing for this school is optional, and performance is based solely on class attendance and participation, not exams. Due to the program’s intensity, admission to TSSACL is restricted to bankers who have a minimum of three years of commercial lending experience or to graduates of The Southeastern School of Commercial Lending SM or another comparable lending school.

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Participation in TBA programs is limited to members, associate members, and nonmembers from an eligible membership category.

TSSACL Instructors

Barrickman

Cochran

Hendren

Curriculum and Instructors The school’s curriculum was developed by a group of bankers and professional educators and features lectures, classroom exercises, and case studies. The curriculum over the three days of the school is segmented as below follows. Day One of the schools focuses on Cash Flow Analysis and Loan Structure—approaches to cash-flow priorities, global cash flow, six determinants of loan structure, covenant theory, common loan structure questions, common loan structuring mistakes, and case studies. Day Two is dedicated to Commercial Real Estate Lending—Financing Income Producing Properties—retrospective/ lessons learned, market fundamentals, underwriting economics and attributes by property type, capitalization rates, regulatory environment, and construction lending. Day Three, the final day of the school, is divided into two primary topics. The first will address New Approaches to Predicting Portfolio Credit Quality and Managing Portfolio

THE TENNESSEE BANKER | DECEMBER 2014

Credit Risk—tolerance for risk and risk appetite, three deadly sins of portfolio credit risk management, granular asset quality rating framework, differential credit analysis, pricing for risk, and assessing the adequacy of the ALLL. The second is Improving Portfolio Profitability and Credit Performance—create a compelling value proposition, position the lender as a trusted advisor, key lender loan underwriting and portfolio management mistakes, key bank portfolio credit risk management mistakes, and lessons learned (hopefully) in the most recent credit cycle. The school’s three instructors are John R. Barrickman, president of New Horizons Financial Group, LLC; John Cochran, principal consultant and trainer, Cochran Associates, LLC; and Michael Hendren, real estate senior credit officer at Pinnacle Bank. Tuition Tuition for TSSACL covers instruction, classroom materials, and morning and afternoon refreshment breaks. It does not cover housing and meals. Discounted tuition applies to all applications received in the TBA office by the close of business January 30, and standard tuition applies after January 30. Discounted tuition is $1,025 for TBA members, associate members, and members of the other sponsoring state associations and $1,225 for nonmembers. Standard tuition increases by $200 to $1,225 and $1,425, respectively. Payment-in-full is required with applications.

February 23–25, 2015 Housing Unlike the other Southeastern Schools, housing is optional and not included in the cost of tuition. For anyone who would like the convenience and fellowship of staying at the Loews Vanderbilt Hotel where the school is held, room reservations must be made through the TBA. Room rates are $130 per night/per person for a double room and $190 per night for a single. Visit the TBA website, www.TNBankers.org, to register online or to download a copy of the TSSACL brochure which contains a printable register form. If you have questions about The Southeastern School of Advanced Commercial Lending, or any of The Southeastern Schools, please contact Susan Taylor, CMP, via e-mail to srtaylor@ TNBankers.org or call 615-244-4871 or 800-964-5525. ■

BOARD OF TRUSTEES

Chairman: Truitt Ottinger, Senior Vice President, Tennessee State Bank, Newport Vice Chairman: Terry Eastwood, CEO, First Bank of Tennessee, Dayton

Truitt Ottinger

Past Chairman: Vacant

Steven J. Hawkins, Executive Vice President, First Tennessee Bank, NA, Memphis Mitch Higdon, Executive Vice President/Senior Credit Officer, First Citizens National Bank, Munford David Miesner, Executive Vice President/Chief Lending Officer, Reelfoot Bank, Union City Edward J. Gentry, Executive Vice President/Chief Lending Officer, Triumph Bank, Memphis William M. Forbes, Market President/Commercial Team Leader, US Bank, NA, Knoxville (2016) Kirk Goehring, Chief Lending Officer/Senior Vice President, First South Bank, Jackson (2017)

Industry Experience, Personalized Service The Alexander Thompson Arnold CPAs team understands the strategic, operational and regulatory issues your financial institution faces. If you need an independent auditor to make relevant recommendations for your unique situation, the ATA Financial Institutions Team wants to serve you.

Certified Public Accountants

Our Offices Serving Financial Institutions: Milan, Tennessee Phone: 731.686.8371 Jack Matthis, CPA, CBA

Dyersburg, Tennessee Services we offer: Phone: 731.285.7900 - Financial Statement Audits Steve Carmichael, CPA - Internal Audit Co-sourcing & Glendora Greenway, CPA Mark Downing, CPA Outsourcing Kevin Howell, CPA - Compliance Reviews - Loan & Union City, Tennessee Deposit Phone: 731.885.3661 - Tax Preparation & Planning Judy Rainey, CPA - Business Valuations FI Team Members (left to right): Chloe Humphrey, CPA; - Assistance with Mergers & Acquisitions Partner Jack Matthis, CPA, CBA; & Katie Little, CPA. - Employee Benefit Plan Audit & Administration - IT Audits & Much More

www.atacpa.net

DECEMBER 2014 | THE TENNESSEE BANKER

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January 2015—two sites

Fundamentals of Compliance Two-Day Seminar on Deposit and Lending Regulations

M

ake plans now to attend TBA’s annual two-day compliance program, Fundamentals of Compliance, that provides a comprehensive review of the most important compliance regulations affecting the banking industry. The program, with content and speakers provided by Professional Bank Services (PBS), is scheduled for two locations—January 27 and 28 in Knoxville and January 28 and 29 in Nashville. Day one is devoted to compliance issues in the deposit area, and the second day focuses on the lending area. You may register for both days or the single day that fits your job function best. Participants receive a comprehensive manual containing a “plain language” explanation of each regulation covered, which is designed to serve as a continuing reference back in the bank.

Day One – How to Ensure Compliance with Deposit Regulations Overview The first day is taught at the intermediate level and will cover the latest changes in federal deposit requirements. Those who attend can eliminate confusion about how to interpret deposit compliance regulations, ensure their deposit program is in compliance, and learn how to avoid costly penalties. The instructor for day one is Natalie Straus, CRCM, a vice president with PBS. Deposit compliance is complex and involves a significant number of employees at most financial institutions. The various federal laws and

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regulations relating to deposit compliance establish requirements for initial disclosures that must be given to new customers, and upon request to inquiring noncustomers; periodic disclosures after the account is opened; overdraft disclosures and opt-in provisions; error resolution procedures, including foreign transactions; and restrictions on advertising. The Fundamentals of Compliance seminar provides a simple and effective way to ensure your key personnel are up-to-date on current federal regulations governing this area. Straus will explain the regulations in plain, easy-to-understand language, and attendants will walk away knowing exactly what their institution needs to do to achieve total compliance. Topics on the agenda for day one include: • Customer identification procedures • Regulation D • Regulation E • Regulation CC • Regulation DD • Fair Credit Reporting Act deposit issues • Advertisement of membership–FDIC • Bank sales of noncredit related insurance • Responding to customer complaints and inquiries • Unfair, deceptive, or abusive acts or practices (UDAAP) • Garnishment of accounts containing federal benefit payments Who Should Attend Day One PBS developed the day one program content for all employees who deal with the deposit-taking function. It is designed to be both a comprehensive introduction to new deposit employees and a refresher/new developments program for experienced deposit personnel.

THE TENNESSEE BANKER | DECEMBER 2014

Program Instructors

Connell

Straus

Compliance officers, auditors, cashiers, operations personnel, tellers, customer service representatives, and new accounts personnel should all benefit from the program.

Day Two – Introduction to Lending Compliance Overview “Compliance” is fundamental job knowledge for all financial institution personnel. The burden of comprehending the increasing list of federal regulations cannot be placed effectively on just one person or group of people. Get the best information, first hand, from instructor Anetria Connell, vice president with PBS. On the second day of the seminar, Connell will deliver a separate, dedicated review of each compliance regulation affecting the lending process, including the regulatory framework and how various regulations relate to each other. Participants will learn when a regulation is applicable, the financial institution’s general responsibilities, and how to use additional sources to deal with more complex situations or questions. Specific topics on the agenda include: • Truth-in-Lending Act/Regulation Z • RESPA/Regulation X • HMDA/Regulation C

January 2015—two sites • Fair Credit Reporting Act/FACT Act—Regulation V • Flood Disaster Protection Act • Bank sales of insurance • Limitations on terms of consumer credit extended to service members and dependents • Equal Credit Opportunity Act/ Regulation B • Unfair, deceptive, or abusive acts or practices Who Should Attend Day Two The content was developed for lending officers and loan administration personnel. The material is taught at the basic level and is appropriate for those who need an introduction to lending compliance or for more experienced personnel who want a refresher course. Hotel Information TBA has not blocked hotel rooms

for the Fundamentals of Compliance seminar. Those who need overnight accommodations should please check the brochure for a list of suggested hotels in both Knoxville and Nashville. Registration Information Registration fees for Fundamentals of Compliance cover instruction; the comprehensive PBS manual; and continental breakfast, refreshment breaks, and lunch each day. Participants may register for the single day that best applies to their job function or for both days. The early registration deadline is January 13. Single-day registrations received in the TBA office by the close of business on January 13 qualify for early registration pricing of $220 for TBA members and associate members and $440 for nonmembers. After January 13, single-day registration fees are $250 and $470, respectively. Early registration fees for the same in-

dividual registering for both days by the end of business on January 13 are $440 for TBA members and associate members and $880 for nonmembers. After January 13, members pay $470 for the two days, and nonmembers pay $910. All at-the-door registrants will be assessed an additional $50 late registration fee, no exceptions. Participation in TBA programs is limited to members, associate members, and nonmembers from an eligible membership category. Visit the calendar page of the TBA website, www.TNBankers.org/calendar, to register online or to download a copy of the Fundamentals of Compliance brochure containing complete program and speaker information and a registration form. If you have additional questions about the program, please contact Penny Powlas, ppowlas@TNBankers. org, in the TBA office. ■

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January 22, 2015

HMDA . . . Is My Data Accurate? Learn Regulatory Concerns and Industry Best Practices

T

he Home Mortgage Disclosure Act (HMDA) continues to generate challenges for financial institutions and mortgage lenders year-after-year. The accuracy and completeness of HMDA data is critical to a satisfactory compliance examination, managing fair and responsible lending risk, and analysis of lending distribution under the Community Reinvestment Act (CRA). To make sure your bank is up-tospeed with all the latest information, plan to attend TBA’s new program, HMDA . . . Hmm, Is My Data Accurate? This full-day program will be offered on one date and at one site only for 2015—January 22 at the TBA Barrett Training Center in Nashville. The HMDA program is an overview seminar addressing data capture, data management, and the risks associated with inaccurate or incomplete data. Participants will receive information and sample documentation to assist in developing an effective HMDA data–quality management program. Whether you are new to HMDA or have years of experience, the seminar will cover what is “known” and what is “new.”

Program Overview Risks occur in the normal course of business—new systems, new loan programs, new reporting software, staff changes, and process changes. Add to that the significant increase in the number and amount of civil money penalties (CMPs) and the proposed laundry list of additional information to be collected and reported for HMDA and data–quality

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processes have to be adjusted constantly to address the increased risk of inaccurate data. The simple truth is HMDA data quality is at the top of a very long list of regulatory risks. “Getting it right” is no longer just a guide, it is the destination! This program is intended to provide insight and direction in developing and testing for the completeness and accuracy of HMDA data, as well as guidance on common errors and interpretive issues from recent examinations. The program will address current regulatory concerns and industry best practices as follows: • Proposed additions to HMDA reporting requirements and related business impact • Data capture, data management, data integrity testing, and development of internal controls • Development of documents necessary to assist all employees in understanding and complying with regulatory requirements in the following areas: —HMDA program —HMDA procedures —Scenario guides —Job aids The seminar format will include interactive question and answer sessions, knowledge sharing, and scenario discussions. Who Should Attend The HMDA seminar content was developed for senior management, compliance and audit personnel, credit administration, lending personnel— mortgage, consumer, and commercial, and loan operations staff. HMDA training is not just for compliance personnel. The process of managing data integrity falls on all employees

THE TENNESSEE BANKER | DECEMBER 2014

Program Instructors

Kirkwood

Price

involved in the lending process. Participation in TBA programs is limited to members, associate members, and nonmembers from an eligible membership category. About the Instructors The HMDA seminar features two instructors, Mary Neil Price, attorney with McKenzie Laird in Nashville, TN, and Loretta Kirkwood, managing director of CrossCheck Compliance, LLC, Chicago, IL. Price’s professional experience is highlighted by over 25 years of corporate law in highly competitive and regulated industries. Her practice encompasses corporate governance, mergers and acquisitions, regulatory compliance, banking, and investor and community relations. Price has an established ability to manage and to work with an organization to provide legal, compliance, and risk management services, particularly in the areas of Bank Secrecy Act, HMDA and fair lending, Sarbanes-Oxley and Dodd Frank compliance, and whistle-blower complaints. Kirkwood, a regulatory compliance and risk management executive, oversees the fair lending practice of CrossCheck Compliance. Her most

significant area of focus is fair and responsible lending risk management, including compliance management system and program development, qualitative and quantitative risk assessments, data quality management, process mapping, and staff training. Kirkwood’s knowledge of bank regulations, operations, and technology provide an integrated approach to assisting bank in development and implementing effective regulatory risk management programs.

Registration Registrations fees for the HMDA program cover instruction, instructional materials, refreshment breaks, and lunch. Registrations received in the TBA office by the end of business on January 12 qualify for early registration fees of $220 for TBA members and associate members and $440 for nonmembers. After January 12, fees increase by $30 to $250 and $470, respectively. All day-of-program registrants will

be assessed an additional $50 late registration fee, no exceptions. Visit the calendar page of the TBA website, www.TNBankers.org/calendar, to register online or to download a copy of the program brochure containing a printable registration form. If you have questions about HMDA . . . Hmm, Is My Data Accurate?, please contact Debbie Brickles, [email protected], or call 615-244-4871 or 800-964-5525. ■

2015 Retail Sales and Bank Marketing Conference January 13: TBA Barrett Training Center, Nashville Early Registration Deadline: December 30, 2014 All banks, large or small, have competitive advantages, and the secret is capitalizing on your competitive advantage, expanding your market share, and monetizing your customer base. In addition, somewhere within every organization, a crisis is waiting to happen. You must be ready to face that crisis and get the proper information out to the public quickly through the media. In these times, your customers are looking for solutions instead of a sales pitch, and while social media is our friend and a wonderful tool, we must understand the risks involved in using social media for public relations and advertising.  There has been a sea of change in regulatory activity over the past three years—how do you put regulatory and economic challenges to work for your bank? How do you stand out from your competitors when trying to attract and secure new business? How do you use data analytics to become proactive instead of reactive in forecasting the future and measuring the success and results each step of the way?  Join us to learn the answers to all of these questions . . . and more! Program Speakers Trent Fleming, Trent Fleming Consulting “Social Media’s Place in your Marketing Strategy” “Attracting and Retaining Profitable Small Business Customers Anthony Huey, Reputation Management Associates “Communicating in a Crisis (30 Years of Work Destroyed in 30 Seconds)” “Presentation Skills to Secure New Business (Stand Up, Stand Out, and Stand Apart From Your Competitors!)”

Steve Nikitas, Harland Clarke “Ways to Grow Your Business in a Challenging Environment” Sean C. Payant, Haberfeld Associates “Strategies to Win the War” “Stop Selling Products and Start Selling Solutions” Jonathan Rowe, nCino “Big Data Analytics: A Single Source of Truth for Everything Happening in Your Bank” Who Should Attend: Retail banking officers and marketing officers, results-oriented small business relationship managers, and branch administrators and branch managers primed to enhance the customer experience will all benefit from the information in this program. Program Fees TBA / Associate Members Early Registration

$350

Nonmembers $700

Early registration deadline is December 30. Registration

$380

$730

Day-of-Program

$430

$780

TBA Contact Susan R. Taylor - [email protected] CMP, Senior Vice President of Professional Development 800/964-5525 or 615/244-4871 Thank You to Our Sponsor

DECEMBER 2014 | THE TENNESSEE BANKER

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Compliance CONFERENCE 2014

Photo Recap

Rod Alba

Kevin Kane

James Carley

Aaron Rykowski

Moderator June Crowell, Chris Finnegan, Mary McKnight, Rachel Webster, and James Carley

Chris Finnegan

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Scott Williams

THE TENNESSEE BANKER | DECEMBER 2014

Coralyn Becton

Greg Gonzalez

Kathy Hoskins, Chairman

Jeff Tate

David Clukie

Tim Evans

Blair Rugh

Linda Finck

Thank You to Our Sponsors Crowell & Crowell, PLLC, Franklin, TN – Printed Booklets KraftCPAs PLLC, Nashville, TN – Continental Breakfast Gray CPA, PLLC, Murfreesboro, TN – Luncheon

Mary Brown, Greg Sawyer, Karina Simon, and Nikki Winters

Banc Compliance Group, Inc, Franklin, TN – Reception & Mobile App Alexander Thompson Arnold CPAs, Milan, TN – Continental Breakfast Clarity Appraisal Management, Nashville, TN – Coffee Break Moderator Mark McDowell, Marci Koster, Tina Cline, Jennie Runions, and Heather Ledbetter

Ncontracts, Brentwood, TN – General Sponsor

DECEMBER 2014 | THE TENNESSEE BANKER

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Bank Notes Oak Ridge SunTrust Is Home to First Teller Connect Devices SunTrust Bank, Oak Ridge, tucked into a corner in the new Kroger Marketplace, Westcott Center, is home to one of SunTrust Bank’s first Teller Connect devices. Customers can walk up to a large-screen machine, tap the screen, talk long-distance to a teller, and do all kinds of banking both during and after hours. With Teller Connect, customers cash checks, make deposits, learn account balances, and withdraw funds from those accounts. Unlike conventional ATMs, many denominations of cash—from $100 to $1 bills—are available, along with coins. There’s a scanner for the long-distance teller to check on identifications and an electronic signature capture. “It’s a lot of fun,” said Leah Bennett, the teller on duty, chatting by videoconference on the machine’s screen. “It’s a new way to interact with clients.” Other banks have portions of the technology, said SunTrust Executive Jennifer Baker. “We are the first bank able to put all these components together.” This is the first Teller Connect for Tennessee; the second machine installed in the South. In the month Teller Connect-Oak Ridge went live, it gained traction with 300 uses. One of the big conveniences is that Teller Connect is open more hours than a conventional bank, as much as 51 percent more time for simple banking transactions. Another plus, Baker added, with customers using the new option for day-to-day transactions, it frees up time for the branch’s financial services representatives to meet and consult with clients on more complex financial issues and develop deeper relationships. ■

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First Bank’s Ayers Presented with Jennings A. Jones Champion of Free Enterprise Award

Ayers

James “Jim” W. Ayers, chairman of FirstBank, Lexington, recently was awarded the Jennings A. Jones Champion of Free Enterprise Award by the Jones College of Business at Middle

Tennessee State University, Murfreesboro. The award is presented to an individual whose achievements are in keeping with the highest traditions of the American system of free enterprise. Award recipients are role models whose business, professional, and personal achievements stand out for all to see and to emulate. ■

BankTennessee Celebrates 80 Years BankTennessee, Collierville, has celebrated its 80-year anniversary, marking the occasion with a special certificate of deposit promotion at all of its eight locations. “From its beginnings as First Federal Savings and Loan in 1934, the original investors and board members founded the bank with a vision to support the needs of its communities with a personal level of service where each customer matters. It’s a philosophy that continues today and has worked for us since our bank was founded 80 years ago,” said Joel Porter, chairman of the bank board of directors. Founded in 1934 as First Federal Savings and Loan Association, it was established by local Memphis bankers and businessmen. The institution was acquired by a small group of local investors in February of 1992 and became known as First Federal Bank, FSB. It opened operations in Collierville in addition to its original office in downtown Memphis and a branch in East Memphis. In June of 1997, the bank changed its name to BankTennessee and converted to a state-chartered institution.

THE TENNESSEE BANKER | DECEMBER 2014

“In 2013, BankTennessee had one of its best years in history earning $2.724 million on assets of $243,766,298. We like to think that our success is your success and thank our customers and loyal employees for continuing to help us meet our goals while we help you achieve yours,” said Jim Rout, president and chief executive officer for the bank. With a headquarters in Collierville, the bank operates eight retail banking offices located in Collierville, East and downtown Memphis, Germantown, Atoka, Ripley, and Lebanon. A new office is under construction in Munford scheduled to open in February 2015. “While we’ve expanded into new markets and new lines of business, we’ve never forgotten that it’s our personal relationship with each of our customers that has kept us strong and allowed us to grow. Our customers know they can count on us to provide banking solutions that are tailored to their individual needs,” added Rout, “As we continue to grow, we look forward to the future and the next 80 years.” ■

Institute for Extraordinary Banking Recognizes First Volunteer Bank First Volunteer Bank, Chattanooga, is a recipient of the 2014 Extraordinary Banking Award presented by the Institute for Extraordinary Banking. First Volunteer was recognized with the institute’s top honor after competing against two other top bank finalists. Each of the three finalists presented their achievements in front of hundreds of top-performing bankers from around the country. First Volunteer’s consistent strong performance in five areas of banking—philanthropy, customer service, thought leadership, workplace culture, and financial literacy education—sealed its win. To honor First Volunteer, the Institute for Extraordinary Banking made a donation on behalf of the bank to the Unstoppable Foundation to fund the construction of a school in Africa and presented First Volunteer with a new car to use in community service and promotional events.

Wexler of Baker, Donelson, Bearman, Caldwell & Berkowitz Recognized as “Pillar of Excellence”

“We are honored to be chosen as the Extraordinary Bank of the Year among a group of such high-performing financial institutions from around the country,” said Patti Steele, president and chief executive officer of First Volunteer Bank. “We take pride in our performance in each of the five areas of achievement and are deeply committed to safe, sound community banking practices in all the markets we serve.” The awards exist to highlight the vital, yet often overlooked, role that local, community banks play in our economy. Without a thriving local banking industry, our small businesses and families become nothing more than a number inside a “too big to fail” institution. First Volunteer has assets of $880 million and operates 24 banking offices with 285 employees in 11 counties. ■

Maurice Wexler, shareholder at Baker, Donelson, Bearman, Caldwell & Berkowitz, Memphis, was recognized as a “Pillar of Excellence” by the law chapter of the University of Memphis Alumni Association. ■

Knight of Dickinson Wright PLLC Named to Pro Bono Honor Roll by TN Supreme Court Adam Knight, attorney with Dickinson Wright PLLC, Nashville, was named to the 2014 “Attorneys for Justice” Pro Bono Honor Roll by the Tennessee Supreme Court. The award honors attorneys for providing more than 100 hours of pro bono service work. ■

Pinnacle Financial Partners Earns 2014 Best Brand Award for Small Business Banking Pinnacle Financial Partners, Nashville, was named a 2014 Greenwich Best Brand Award winner for small business banking by financial services research firm Greenwich Associates. The award was based on trust and ease of doing business. In its first year of the Best Brands program, Greenwich Associates evaluated more than 750 banks by conducting nearly 13,000 interviews with businesses across the country with sales of $1 million to $10 million. Only 20 were found to have a distinctive brand. The awards for Best Brand—ease of doing business and Best Brand—trust, signifying the confidence clients have in their

bank, are based on customer “excellence” ratings. “We know from our own surveys that small business owners trust us and find it easy to work with Pinnacle, and it’s rewarding that external research shows the same result,” said Terry Turner, Pinnacle’s president and CEO. “Our clients appreciate that we are focused on meeting all of their financial needs, whether for business or personal accounts.” Pinnacle Financial Partners began

operations in a single downtown Nashville location in 2000 and has since grown to approximately $5.9 billion in assets. At end of September 2014, Pinnacle is the second-largest bank-holding company headquartered in Tennessee, with 29 offices in eight Middle Tennessee counties and four offices in Knoxville. In addition to this award, Great Place to Work® named Pinnacle one of the best workplaces in the US on its 2014 Best Small and Medium Workplaces list published in FORTUNE magazine. The American Banker has recognized Pinnacle as the number two best bank to work for in the country. ■ continued on page 41

DECEMBER 2014 | THE TENNESSEE BANKER

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Promotions Jason Carr has joined CapStar Bank, Nashville, as a senior commercial loan document specialist; Theresa May as a human resources information systems and payroll specialist; Mark Seaton as a controller; and Candance Walton as an accountant in finance and administration. Previously, Carr worked for US Bank; May was employed by Florida Community Bank; Seaton was with KraftCPAs PLLC; and Walton worked for general council, United Methodist Church. In addition, Stephanie Schritenthal has joined Farmington Mortgage, a division of CapStar Bank, as a mortgage loan closer. Previously, Schritenthal worked with Elite Home Loans.

Anthony Price First Community Bank of East Tennessee, Kingsport

Jim Maddox First Community Bank of East Tennessee, Kingsport

Kristen Wonderley First Community Bank of East Tennessee, Kingsport

Financial Federal Bank, Memphis, has welcomed Taylor Maury as a lending officer in its Memphis headquarters.

commercial lender and Jim Maddox as vice president and chief financial officer. Kristin Wonderley was named vice president. With 25-plus years’ experience in the financial industry, Price was formerly the chief financial officer and chief operating officer for McFarland Pharmacy, and before that he was employed by Regions Bank, SunTrust Bank in Hamblen County, and GreenBank, Morristown. Maddox brings more than 25 years’ experience in business and finance. Most recently, he managed Wellmont Health System’s treasury operations, payroll, management of investment and debt, and internal controls. During his 10-plus years with Eastman Chemical Company, Maddox held positions in corporate treasury and global cash management and responsibility for corporate treasury support for the Americas, Europe, and Asia. With seven years’ banking experience, Wonderley came to FCB in 2012 as assistant vice president and BSA/ compliance officer from American Patriot Bank, Greeneville.

First Community Bank of East Tennessee, Kingsport, has added two new staff to their leadership team and announced one promotion. Anthony Price has joined FCB as senior vice president and senior

Kathy Lafferty has joined Community First Bank & Trust, Columbia, as a vice president/commercial loan officer. Previously, Lafferty was a commercial banking manager with First Farmers Bank.

Community Bank of Smith County, Carthage, a branch of Wilson Bank & Trust, Lebanon, has welcomed Deborah Bane as a personal banker to help with loan processing. She has more than 30 years’ experience in local banking. Fifth Third Bank, Nashville, has added three personal bankers to their team: Ben Counts, Julian Mayes, and Charles “Philip” Staples.

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THE TENNESSEE BANKER | DECEMBER 2014

First Farmers and Merchants Bank, Columbia, has named Dawn D. Moore senior personal trust officer. Previously, Moore was leadership program director with Columbia State Community College. Phillip Vance has joined First Freedom Bank, Lebanon, as a relationship specialist. He previously worked for Enterprise Holdings as an intern in the accounting department. Franklin Synergy Bank, Franklin, has promoted Richard D. Bird to senior vice president, corporate risk officer; Billy Harter to vice president, mortgage originator; and Jenifer Holliday to assistant vice president, treasury management. Other promotions announced were: Melissa Taylor to branch administrator; Debbie Poole to loan assistant; April Randle to assistant branch administrator; and Stacey Carroll to customer contact manager. In addition, Billy Johnson has joined the bank as vice president, compliance officer; Lauren Hill as Synergy Club events director; Meagan Pratt as a public relations officer; and Molly Jowers as a mortgage underwriter. Mary Ruth Whetsel has joined HomeTrust Bank, NA, Morristown, as a branch sales and service manager. With over 35 years in banking, Whetsel’s experience includes management, marketing, public relations, and small business lending, billing, and business development. Paragon Bank, Memphis, has added Mark Winburne as an adviser and managing partner of Paragon’s wealth solutions division.

Pinnacle Financial Partners, Nashville, added two seasoned professionals to their staff at the downtown Nashville office—Larentina Gleaves and Yolanda Vicknair. Gleaves brings 39 years of experience from Regions Bank to her role of treasury management product specialist. Vicknair has joined Pinnacle’s client advisory group as a financial advisor assistant. She brings 16 years of experience, most recently with Regions Bank, where she was a commercial relationship banking associate. In addition, Brett Reynolds has joined Pinnacle as a senior vice presi-

dent and mortgage advisor. Previously, Reynolds was a loan officer with TriStar Bank. Darlene Davenport has joined as a service specialist. Previously, Davenport was a teller supervisor with Regions Bank. Bone McAllester Norton PLLC, Nashville, has added Thomas (Trey) R. Frazer, III, and Kee Bryant-McCormick as attorneys.

Nashville, as a government relations professional. Previously, Herren was a director with Tennessee Hospitality & Tourism Education Foundation. Lattimore Black Moore & Cain, PC, Brentwood, added Matt Deepe as a staff accountant and Matthew Smith as a video production coordinator. Previously, Deepe was a lead design engineer with GE Aviation. Smith previously was a news producer with WKRN. ■

Lindsey Herren has joined Gullett Sanford Robinson & Martin PLLC,

Bank Notes continued United Community Bank’s Lynn Harton Appointed to National Risk Management Association Board

US Bank Opens 11th Food City Branch

Lynn Harton, executive vice president and chief operating officer of United Community Bank, Inc, Blairsville, GA, and president and chief operating officer of the company’s subsidiary bank, United Community Bank with an office in Lenoir City is among the financial industry’s top executives appointed to the board of directors for the national Risk Management Association. With 30-plus years’ experience in the banking industry, including expertise in commercial banking, risk management, and turnarounds and change management, Harton is responsible for directing overall operations for United Community Bank and working alongside other members of senior management regarding the strategic direction and expansion of the $7.4 billion holding company. Before his association with UCB, Harton held top special consultant or management positions with TD Bank Financial

US Bank, Morristown, hosted a grand opening and ribbon–cutting celebration in October at its newest branch located inside the Food City building, in Masengill Springs, with Phillip Torbett, as branch manager. “This is our 11th location at Food City in Tennessee,” Mike Robbins, regional president for US Bank in Tennessee, said. “We continue to receive positive comments from many of our customers, who tell us they appreciate having full-service banking conveniently located,” he continued. The bank is open seven days a week, with extended weekday hours, a full day on Saturday, and during the afternoon on Sundays. Representatives of US Bank, Food City, and the Morristown community attended the ribbon–cutting ceremony. As one of the promotions associated with the opening, individuals who open a new US Bank checking account at the new location will be eligible to receive a $75 cash bonus if they activate their Visa check card and make a purchase of at least $75 at any Food City location within 30 days of opening the account. ■

Harton

Group, Greenville, SC; Regions Financial Corporation; Union Planters Corporation; and BB&T. The Risk Management Association is a professional association established to advance the use of sound risk principles in the financial services industry. RMA’s board, councils, and committees act as consultants, judges, recruiters, reviewers, and advisors in support of that mission. ■

DECEMBER 2014 | THE TENNESSEE BANKER

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Community Corner Bank of Bartlett Joins Meritan’s Silver Bells Christmas program to Help Senior Citizens Bank of Bartlett, Bartlett, has joined again with 2014 Meritan’s Silver Bells Christmas program. Meritan, a regional nonprofit agency based in Memphis and providing health, social, and support service for people living with the effects of aging and disabilities, and Silver Bells help senior citizens and developmentally disabled neighbors who are most in need. Bank of Bartlett customers were invited to any branch and pick a Silver Bell from one of the decorated trees to fulfill a Christmas wish for a senior whose joy during the holiday season is limited by income and disability. The value of a Christmas Silver Bell wish is approximately $30, and their Christmas wishes are modest: paper towels, socks, robe, slippers, or a blanket. Gifts returned to the bank by mid-December are delivered to Meritan. Alternately, donations could be made online or checks mailed to Meritan. Monetary donations are used year-round to buy supplies for senior citizens in need. ■

NBJ Announces Corporate Giving Awards Honorees The Nashville Business Journal has announced the second annual class of 2014 Corporate Giving Awards honorees. Companies submitted information on the money and hours of service donated per employee, and these were ranked by the journal. Awards were presented in November. TBA members and associate members who were honored include:

Bradley Arant Boult Cummings LLP Carr, Riggs & Ingram, LLC Comdata, Inc JPMorgan Chase Crosslin & Associates McNeely Pigott & Fox Public Relations Reliant Bank Renasant Bank TriStar Bank US Bank, NA ■

SunTrust Gives $2,500 to Family Cornerstones SunTrust Bank Foundation, Cleveland, has presented Family Cornerstones, a Christian nonprofit community development agency in Cleveland formerly known as Bradley Initiative for Church and Community, a $2,500 grant for its Starfish Program. Starfish Program is a home-based educational program that strives to make the parents a child’s first teachers. SunTrust Bank branch manager, Nicole Flowers said the Starfish program’s commitment to helping “Cleveland families thrive and grow aligns well with SunTrust’s purpose of ‘Lighting the Way to Financial Well-being.’” Brenda Hughes, executive director of Family Cornerstones, thanked the SunTrust Bank Foundation for its willingness to support Starfish. “We are just very,

very appreciative of SunTrust and how supportive they are of Starfish,” she said. “SunTrust really cares about the community, and this is just one example of how they display that care.” Jennifer Ratcliff, Starfish Program director, said the money would go toward materials for home visits, supplies, and the once-a-month group connections. A key component of Family Cornerstones since January 2009, Starfish Program, whose focus is children up to the age of five and providing in-home parent education, has helped approximately 144 families and aided 218 children since. Starfish employees have conducted 1,984 home visits with families and 2,742 visits with children. In addition, there were 185 prenatal home visits. ■

TBA and FinPSI Staff Walk in Memor y of Jacob Sprinkle In October, Tennessee Bankers Association and Financial Products and Services Inc, participated in the 2014 Nashville Heart Walk. We dedicated our team walk in loving memory of little Jacob Sprinkle, son of Rick Sprinkle, chief credit officer at Commercial Bank, and his wife Monique Sprinkle. Earlier this year the Sprinkles became part of TBA’s family while Jacob was waiting for a

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heart transplant at Vanderbilt Medical Center. Participating in the walk was a great support awareness of heart disease and stroke risk. The American Heart Association’s programs have helped reduce heart disease and stroke risk by 25 percent and improved the quality of health care by creating best practices for treating patients consistently. Jacob’s endurance was an example of strength that inspired each of us. ■

THE TENNESSEE BANKER | DECEMBER 2014

TBA Staff members Sharon Justice-McCray and Stacey Langford with their families.

Employment Opportunities POSITION WANTED 1405-2 SRO/CFO Community bank executive with 15 years of experience as chief financial officer. Has MBA with super-regional bank training and community bank experience. Experienced in asset liability management, accounting, liquidity management, financial analysis, strategic planning, and budgeting. Contact Brian Hawkins via e-mail Brian.Hawkins2014@ gmail.com or call 706-340-1078.

POSITIONS AVAILABLE 1411-6 SPECIAL ASSETS MANAGER Growing and profitable East Tennessee bank seeks seasoned special assets manager.  Candidate should have extensive knowledge of loan/legal documents and financial statements.  Experience should include successful management of performing and nonperforming commercial real estate loans.  Urgency and attention to detail are required.  Please e-mail resume, cover letter, & salary expectations to bank. [email protected]. 1411-5 COMMERCIAL LOAN OFFICER Areawide Development Corporation is seeking an experienced commercial loan officer, preferably with government lending experience. ADC is a provider of SBA, USDA, and other government lending products located in Alcoa, TN. Duties of the position include marketing the loan programs to potential borrowers, obtaining loan information, spreading and analyzing financial information, presenting loan packages to loan committee, preparing loan application packages, seeing loans through approval, and closing of loans. Basic qualifications include: minimum of 3 years in commercial lending, including credit training and proven success in developing new business; degree in business, economics, or finance a plus; ability to maintain effective relationships with lending partners and customers; strong verbal and written communication skills with the ability to communicate with all levels internally and externally. Local travel and some overnight travel required. Qualified individuals please submit resume by e-mail to [email protected]. No phone calls please. EEO/AA/F/Vets/Disability 1411-4 EXECUTIVE DIRECTOR Waller, a law firm based in Nashville, TN, is seeking an executive director (ED) for their Financial Services Industry Team. The executive director is responsible for helping to position the firm and the industry team as a leader in the marketplace and for developing qualified opportunities from prospective and existing clients that have the highest potential to generate new business. The ED will work with the firm’s marketing department to generate qualified opportunities based on the business plan developed by the industry team and the ED. This position reports via dotted line to the client service and development partner for the purpose of coordinating efforts among other executive directors at the firm and will report directly to the chair of the financial services industry team for purposes of establishing and implementing

the industry team’s agenda and strategic goals. Primary responsibilities include coordinating meetings of industry team steering committee as well as client and industry sector teams; directing the production of client pitches/presentations; developing, in conjunction with the attorneys and marketing department, responses to RFQs and RFPs; coordinating and managing industry specific blogs, CLEs, and related content; developing and managing allocation of the budget for the industry team; and other duties as required. ED will lead chair and industry team steering committee in drafting and implementing a strategic business plan; direct market research to identify qualified prospects; report on industry conditions with recommendations for targeting; and identify appropriate pursuit teams specific to each opportunity. In addition, this individual will expand the firm’s network of contacts within the identified industry sectors; facilitate meetings between attorneys and external industry decision makers; develop, manage, and maintain relationships with clients, prospects, and peers that lead to new revenue growth; and participate in continuing education to remain aware of activities and developments in the financial services industry. Bachelor’s degree required, preferably in business or sales and marketing. Prefer management–level experience in the financial services industry with prior success converting business development opportunities into sales. Requires minimum 5-year track record in legal/ professional services-related or solutions-based sales; network of contacts that can be leveraged to firm’s benefit; proven track record of working effectively with organizations having complex structures and diverse workforces; a professional attitude and approach; ability to travel as business requires. Must have working knowledge of legal or professional services concepts and be articulate in both written and oral communications. Requires ability to drive a multifunctional team through a consultative selling process; to interact effectively at high levels within client organizations; to identify and capitalize on client needs as well as provide feedback on client and market demands; to work productively and collaboratively with multiple contacts at multiple levels, rather than relying upon a single champion. Interested and qualified candidates should apply online at https:// app.smartsheet.com/b/form?EQBCT=3cb2e07533b14c06a38f8ea3bdadb803. 1411-1 DIRECTOR OF CREDIT RISK MANAGEMENT AND SENIOR CREDIT OFFICER - CHATTANOOGA CapitalMark Bank & Trust has an immediate opening to fill the director of credit risk management and senior credit officer role. This position will support the lending and credit administration functions of the bank by providing company, industry, and market information in support of the most complex and/or large extensions of credit.  Responsibilities include, but are not limited to, the following: oversee all credit risk manager work and activity; review all loan approval documents (LADs) and assign origination risk grades for loans; make recommendation and document reason for support or denial of each LAD presented; serve as a resource to city executives and banker teams for early stage discussion of larger credits; serve as CRM representative and actively participate in management loan committee; serve as mentor and primary support to credit risk manager personnel; adhere to all compliance issues, as applicable to the position, to include continuing education in

compliance. Prefer bachelor’s degree in accounting, finance, or economics.  Strongly desire minimum of 5 years’ credit analysis and/or loan review experience, preferably within the banking industry.  Prior supervisory experience preferred.  Proficiency in Microsoft software application, specifically MS Word and Excel, and related software desired. Familiarity with internal applications preferred.  Strong attention to detail, solid organizational skills, as well as excellent written and verbal communication skills required.  Must be able to work in a fast-paced environment and meet strict deadlines. This position will be located in Chattanooga. Interested candidates should send a resume and letter of interest to: Human Resources, CapitalMark Bank & Trust, PO Box 671, Chattanooga, TN 37401 or to HumanResources@ capitalmark.com. 1410-7 MORTGAGE LOAN OPERATIONS SPECIALIST Reliant Bank is a fast-growing community bank locally owned and operated in Brentwood, TN. We are currently seeking a loan operations specialist to join the Reliant Bank mortgage services team. This is an excellent opportunity for a motivated professional to work in a challenging and rewarding environment. This nonexempt position reports to the assistant vice president, loan operations officer. This position provides operational support to the day-to-day mortgage loan transaction processes including data entry, tracking, and verification; ensures that mortgage loan documentation is maintained properly; and provides support to various areas of mortgage regarding mortgage loan operations. Acts as backup administrator for loan platform including administration requirements, product changes, software revisions/ enhancements. Assists senior operations officer & compliance officer with consumer compliance, safety and soundness examinations, and records retrieval. College degree or equivalent professional experience in loan servicing or operations preferred, Attention to detail and accuracy of work is essential. Requires good general math and analytical skills, strong Microsoft Word and Excel skills, and the ability to input and retrieve data in various systems; discretion in handling confidential information and sensitive documents. Must demonstrate a commitment to accuracy and quality while meeting deadlines. Requires strong organization skills, ability to communicate effectively through both written and oral formats, ability to multi-task and prioritize, and excellent customer service skills. Reliant Bank offers competitive compensation and full benefits including medical, dental, vision, health savings accounts, flexible spending accounts, life insurance, long–term disability, and 401(k). Qualified candidates may submit their resume via e-mail to [email protected]. Reliant Bank is an Equal Employment Opportunity/ Affirmative Action Employer. 1410-5 INFORMATION MANAGEMENT SPECIALIST CapitalMark Bank & Trust has an immediate opening for an information management specialist.  This position will provide support related to computer systems, including end-user devices as well as servers, network hardware, and related applications. Key responsibilities include assisting with management

Tennessee banks and associate members may list positions free-of-charge as a benefit of their membership in the Tennessee Bankers Association. Those interested in placing an ad or replying to position openings (refer to position number) should direct their inquiries to: Penny Powlas - [email protected], Tennessee Bankers Association, 211 Athens Way, Ste 100, Nashville, TN 37228-1381 • 1-800-964-5525 or 615-244-4871

DECEMBER 2014 | THE TENNESSEE BANKER

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of the information technology system, monitoring applications for performance and reliability, and handling end-user support issues. Position involves understanding and applying regulatory requirements to bank information technology and communicating with auditors and examiners, as needed, regarding associated risks.  Bachelor’s degree or equivalent certifications and information technology experience required. Experience with SQL server and other database server applications required. Excellent written/verbal communication, attention to detail, and exceptional client service skills are essential.  Limited travel involved. The ideal candidate must be able to work in a fast-paced environment, be dependable, meet strict deadlines, and possess the flexibility and knowledge to handle various tasks. This position will be located in Chattanooga and report to the Operations/Technology Group Head. Interested candidates should send a resume and letter of interest to: Human Resources, CapitalMark Bank & Trust, PO Box 671, Chattanooga, TN 37401 or to [email protected]. 1410-4 LOAN PRODUCTION ASSOCIATES BancAccess, Inc., a multi–community bank–owned company created to provide loan referral services to its owner banks, seeks full-time and part-time loan production associates. Preferred applicants will have developed prospecting skills and a proven track record of loan production. Responsibilities include, but are not limited to, relationship development with community banks and commercial borrowers. Compensation package includes base salary plus a percentage of monthly interest income from loans produced for the life of the loan with no income cap.  Interested candidates should submit a cover letter and resume to [email protected]. 1410-3 COMMERCIAL CREDIT ANALYST Well-respected, stable community bank in East Tennessee is seeking a commercial credit analyst. The individual in this position has the primary responsibility of assimilating, reviewing, and evaluating credit and financial information on current and prospective customers and preparing written analyses to support approval or decline of loan applications. Individual will be expected to analyze simple and complex financial information satisfactorily, such as financial statements and tax returns, to determine creditworthiness of a loan request. Requires a BA degree in finance/accounting, business administration, or related field from a four-year college or university; two to four years’ banking experience in similar position; or equivalent combination of education and experience. Serious and qualified applicants may submit resume and salary expectations to the Human Resources Director, Susan Zerambo, at szerambo@ cbbcbank.com. 1409-4 MORTGAGE LOAN ORIGINATOR – CHATTANOOGA, KNOXVILLE, & COOKEVILLE, TN – ATLANTA, GA The mortgage loan originator will originate loans and work with customers to meet their financial goals. Help customers by partnering with them and assisting them through the mortgage lending process. Listen to what works best for the clients and help them assess the impact on them of their mortgage decision will have on them. 2+ years of experience as a Mortgage Loan Originator, preferably working with a residential mortgage lender. Qualifications: book of business preferred; high school diploma required; proficient with lending compliance standards and regulations; excellent customer service approach; computer savvy with software experience preferred; excellent written and verbal communication skills, including professional demeanor; strong organizational skills with strict attention to detail. FSGBank is an equal opportunity employer and does not discriminate on the basis of race, color, gender, religion, age, sexual orientation, national or ethnic

44

origin, disability, marital status, veteran status, or any other occupationally irrelevant criteria. Qualified individuals please submit resumes to [email protected]. 1409-3 GOVERNMENT LENDING BUSINESS DEVELOPMENT OFFICER – CHATTANOOGA, TN We are looking for a government lending business development officer (BDO) who can demonstrate a high level of sales performance with at least 5+ years of financial service industry coupled with 2+ years of government lending experience. FSGBank is a top producer in our markets for SBA and government lending ranking in the top 10 in originations for the year. This BDO will be responsible for development of a strategy around calling on commercial real estate brokers, business brokers, business/professional associations, accountants, lawyers, etc to solicit SBA/government loan opportunities. The BDO is responsible for originating government guaranteed loans (SBA, USDA etc), as well as other bank products, throughout the bank’s footprint and surround areas. Responsibilities: partner with commercial loan officers, branches, and other line of business officers to be a product expert and calling officer for the market. Responsible for the success and growth of assigned sales territory; for the sales life cycle, including lead generation and sourcing, loan policies and structure, product knowledge, and financial analysis. Qualifications: prefer 5+ years’ commercial financial sales experience; bachelor degree in business, finance, accounting, real estate, or equivalent work experience or equivalent work experience; understanding of SBA lending guidelines, policies, and procedures; 2+ years’ SBA lending experience; experience selling in the East Tennessee, North Georgia, and Alabama markets; good credit skills; and experience selling business and/or commercial related financial products. FSGBank is an equal opportunity employer and does not discriminate on the basis of race, color, gender, religion, age, sexual orientation, national or ethnic origin, disability, marital status, veteran status, or any other occupationally irrelevant criteria. Qualified individuals please submit resumes to [email protected].   1409-2 BRANCH MANAGER – MADISONVILLE, TN The branch manager is responsible for overall profitability by directing sales and business development, meeting operational objectives, and ensuring the branch achieves its annual goals. Management and leadership duties include: employee development and engagement, ongoing coaching, performance management, and sales leadership. Must adhere to the requirements of federal registration under the SAFE Act. Requires bachelor’s degree (BA) from a 4-year accredited college or university or equivalent work experience.
Demonstrated leadership and minimum of 3 years’ branch sales experience.
Minimum 2 years’ managerial experience or proven leadership ability.
Fundamental understanding of profitability.
Excellent communication, written, and interpersonal skills.
Proven ability to demonstrate and coach world–class level of customer service.
Demonstrates effective time management and organization skills.
Demonstrated strong knowledge of business banking products, services, and client relationship management.
Required to interact with customers in an open, face–to–face work environment.
Able to make periodic customer “offsite” calls/visits away from the branch to achieve sales goals. FSGBank is an equal opportunity employer and does not discriminate on the basis of race, color, gender, religion, age, sexual orientation, national or ethnic origin, disability, marital status, veteran status, or any other occupationally irrelevant criteria. Qualified individuals please submit resumes to [email protected]. 1408-12 MORTGAGE LOAN ORIGINATOR Tennessee Bank & Trust seeks experienced mortgage loan originator with 3 years of experience in mortgage lending. Bachelor’s degree in business, finance, or related field is preferred but not required. Essential duties and responsibilities include, but are not limited to the following: knowledge of conventional, FHA, and VA

THE TENNESSEE BANKER | DECEMBER 2014

mortgages, including knowledge of regulatory and compliance criteria and awareness of deadlines; knowledge of secondary market loan products; capable of developing and implementing a marketing strategy to capture new clients and increase referral base; possess established relationships with local real estate agents; capable of initiating and completing a mortgage loan application; capable of monitoring loans and assisting loan processors in completing loan files for approval; and capable of working on a commission-based income. To perform this job successfully, qualified applicant must be able to perform each essential duty satisfactorily. A qualified applicant must also have a demonstrated ability to interact constructively and effectively with all constituencies and possess a demonstrated skill in establishing work priorities, organizing work, and meeting deadlines. Applicant must be capable of working under time constraints and handling a variety of duties. Must also attain the technical knowledge and proficient utilization of the bank’s mortgage lending software programs. Must be personable and possess excellent interpersonal and communication skills, both verbal and written. Applicant must be responsive and sensitive to the needs and concerns of the borrower. Please submit resumes to [email protected]. Tennessee Bank & Trust is an Equal Opportunity Employer 1408-11 MORTGAGE LOAN PROCESSOR Sumner Bank & Trust is looking for an experienced mortgage loan processor to join our dynamic, rapidly growing business in Sumner County. Primary responsibilities are processing, closing, and post-closing of residential mortgage loans. A detailed job description is available upon request. Education and experience requirements: 3 year’s job specific experience preferred. Basic computer skills needed to include Microsoft Outlook, Word, and Excel, as well as proficiency with internet navigation and searches. Experience with multiple loan origination systems and paperless processing is a plus. A working knowledge of compliance related to residential mortgage loans, financial institution policies, procedures, and regulatory requirements as they relate to the loan department. Sumner Bank & Trust is an Equal Opportunity Employer supporting diversity in the workplace. If Sumner Bank & Trust sounds like a place where you can succeed, please submit your resume with detailed job history, education, and pay history, plus compensation requirements to: Attn: HR, Sumner Bank & Trust, 780 Browns Lane, Gallatin, TN 37066 or e–mail [email protected]. 1408-10 BANK LOAN REVIEW CONSULTANTS Major financial services consulting company’s Nashville office has opportunities for degreed individuals with at least 5 years’ experience in loan review for banks. Candidates with regulatory and/or commercial and commercial real estate lending and credit administration experience will also be considered. Candidates must be able to work in a team-focused environment, maintain superior client relations, have excellent verbal and written communication skills, and be willing to travel. Compensation commensurate with experience and credentials. Company has excellent benefits including 401(k) and cafeteria plans. All individuals should submit resume (e-mail preferred) to: Professional Bank Services, Inc, 216 Centerview Dr, Suite 225, Brentwood, TN 37027 [email protected].

Actions of Bank Regulatory Agencies TENNESSEE DEPARTMENT OF FINANCIAL INSTITUTIONS First Farmers & Merchants Bank, Columbia, TN, application for new branch at 4013 Hillsboro Circle, Nashville, TN 37215 (approved 12/26/13; opened effective 9/18/14). FEDERAL RESERVE SYSTEM Triumph Bank, Memphis, TN, application to establish a branch at 7550 West Farmington Road, Germantown, TN (approved 10/27/14). Germantown Capital Corporation, Inc, Germantown, TN, application for change in bank control of Germantown Capital Corporation and its subsidiary, First Capital Bank, Germantown, TN (permitted 11/3/14). IberiaBank, Lafayette, LA, application for extension to 12/31/14 to es-

tablish a branch at 1294 Union Avenue, Memphis, TN (granted 11/6/14).

North Eastman Road, Kingsport, TN 37664 (received 10/21/14).

First Alliance Bancshares, Inc, Cordova, TN, application to retain control of First Alliance Bancshares, Inc, and its subsidiary, First Alliance Bank, Cordova, TN (permitted 11/14/14).

First Tennessee Bank, NA, Memphis, TN, application to close branch at 1545 South Andrew Johnson Highway, Greeneville, TN 37745 (received 10/21/14).

OFFICE OF THE COMPTROLLER OF THE CURRENCY First Tennessee Bank, NA, Memphis, TN, application to close branch at 2105 North Roan Street, Johnson City, TN 37601 (received 10/21/14).

US Bank, NA, Cincinnati, OH, application for new West Morristown Food City branch at 2310 Sandstone Drive, Morristown, TN 37814 (received 8/11/14; approved 9/10/14; opened effective 10/22/14).

First Tennessee Bank, NA, Memphis, TN, application to close branch at 2841 East Andrew Johnson Highway, Greeneville, TN 37745 (received 10/21/14).

Bank of America, NA, Charlotte, NC, application to close Cooper Young Banking Center, 945 South Cooper, Memphis, TN 38104 (received 10/24/14). ■

First Tennessee Bank, NA, Memphis, TN, application to close branch at 1201

Young Bankers Host Titans and UT Tailgates

Thank You to Our Titans Tailgate Sponsors

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DECEMBER 2014 | THE TENNESSEE BANKER

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Professional Development Calendar 2014 December 16 WEBINAR

NEW

Security

February 18 2014-2015 Senior Compliance Officer Forums – Session 2 of 4

March 31 Branch Management Series – Session 1 of 4

February 23–25 The Southeastern School of Advanced Commercial Lending

April 1 2014-2015 Retail Banking Officer Forums – Session 2 of 3

February 24 Call Report Preparation

April 2 IT/Operations Officer Forums – Session 1 of 3

TBA Barrett Training Center, Nashville

Cyber Fraud and

Online Only

2015 January 6, 7, 8 CEO Forums – Session 1 of 3

TBA Gilliam Board Room, Nashville

January 13 NEW Retail Sales & Bank Marketing Conference

TBA Barrett Training Center, Nashville

January 14, 15, 16 2014-2015 Senior Lender Forums Session 2 of 3

TBA Gilliam Board Room, Nashville

January 21 2014-2015 Risk Management Officer Forums – Session 2 of 3 TBA Barrett Training Center, Nashville

Loews Vanderbilt Hotel, Nashville

TBA Barrett Training Center, Nashville

February 26 An In-Depth Study of Appraisal and Evaluation Compliance Review

TBA Barrett Training Center, Nashville

February 26 & 27 Essentials of Commercial Lending Loews Vanderbilt Hotel, Nashville

March 3 Young Bankers Division “Day On the Hill”

Tennessee State Capitol, Nashville

March 3, 4, 5 Basic IRA Seminar

January 22 Mastering HMDA

Knoxville, Nashville, Jackson

January 27 & 28, 28 & 29 Fundamentals of Compliance

TBA Barrett Training Center, Nashville

TBA Barrett Training Center, Nashville

Knoxville, Nashville

February 4 Legislative Reception

War Memorial Auditorium, Nashville

February 5 & 6 Credit Conference

March 6 Introduction to Banking

March 8–13 The Southeastern School of Consumer Credit

TBA Barrett Training Center, Nashville

March 24 & 25 Human Resources Conference

Omni Hotel, Nashville

Embassy Suites Hotel & Conference Center, Murfreesboro

February 10, 11, 12 CFO/Controller Forums – Session 1 of 3

March 24 & 25, 26 & 27 Implementing the Integrated Disclosures Rules

TBA Gilliam Board Room, Nashville

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Nashville, Knoxville

THE TENNESSEE BANKER | DECEMBER 2014

TBA Barrett Training Center, Nashville

TBA Barrett Training Center, Nashville

TBA Barrett Training Center, Nashville

April 7 & 8 BSA/AML Compliance School

Nashville Airport Marriott, Nashville

April 9 & 10 Strategic Technology Conference

Embassy Suites Hotel & Conference Center, Murfreesboro

April 13, 14, 15, 16 Tennessee Deposit Account Administration Jackson, Nashville, Kingsport, Knoxville

April 22, 23, 24 NEW Basic Personal & Business Tax Return Analysis Knoxville, Nashville, Jackson

April 21 Safe Deposit Legal Updates and Compliance

TBA Barrett Training Center, Nashville

April 22 2014-2015 Senior Human Resources Forums – Session 2 of 3

TBA Barrett Training Center, Nashville

April 23 2014-2015 Senior Compliance Officer Forums – Session 3 of 4 TBA Barrett Training Center, Nashville

.

Lending Solutions for Community Banks Who we are…

A multi-community bank owned corporation, BancAccess may very well be the answer independent community banks have been looking for to make them a viable competitor in the commercial lending market. Current owners include Farmers & Merchants Bank of Trezevant, First Freedom Bank in Lebanon, Hardin County Bank in Savannah and People’s Bank in Clifton. BancAccess received regulatory approval in late August and has produced more than $30 million in commercial loans across 35 states.

What we do…

The company’s mission is to bring additional lending opportunities to community banks. Our to increase their ability to compete against large regional and national banks for large commercial loans. While BancAccess does not lend money, it does solicit, process and banks through a fee-for service or contractual arrangement. For a bank that has its plate full with one type of commercial loan or has maxed out its loan capacity for a customer, BancAccess can help by providing a source for referrals for those customers without compromising the bank-customer relationship.

• Uniform high credit standards mean quick loan decisions, usually within 2 weeks. • High quality commercial loan opportunities that positively impact the bottom line. • Centralized loan processing and business loan underwriting.

Inc. Contact Ben Rudd at [email protected] or by calling 731.616.2505 to learn more about what BancAccess can do for your community bank today.

2131 Benton Hall Court  Coumbia, TN 38401  615.499.5263 www.mybancaccess.com

Your building, your vault, your money and your people: Protect them all. At the heart of every community is its bank. And at the heart of every bank are its people. That’s where our coverage starts, but it extends so much further. In one comprehensive package, we provide community banks with everything from traditional property and casualty to management liability insurance. The right policy is still only one part of your insurance carrier’s value. Travelers partners with you to help educate your bank on emerging and potential risks, and provides tools and solutions to better prepare your bank for the future. Contact your independent agent today.

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