Volume 69, Number 9 • THE NEWSPAPER OF THE MISSOURI BANKERS ASSOCIATION • Thursday, September 19, 2013 The Missouri Banker Visit our web site at http://www.mobankers.com Seven new regional direc- tors who were elected during the 2013 Regional Meetings will be joining the MBA Board in June of 2014. Representing MBA’s regions on the Board will be: James Anderson, Bank Northwest, Hamilton, will represent the Pony Express Region in Northwest Mis- souri. Jerry Trower, Palmyra State Bank, Palmyra, will represent the Mark Twain Region in Northeast Mis- souri. David Chinnery, Adams Dairy Bank, Blue Springs, will represent the Truman Region in Western Missouri. Kara Huitt, Progressive Ozark Bank, FSB, Salem, will represent the Capitol Region in Central Missouri. James Watson, Midwest BankCentre, St. Louis, will represent the Gateway Re- gion in Eastern Missouri. Eric McClure, Mid-Mis- souri Bank, Springfield will represent the Ozark Region in Southwest Missouri. Douglas Watson, MRV Banks, Ste. Genevieve, will represent the River Heritage Region in Southeast Mis- souri. James Anderson After serving in the U.S. Navy from 1969 to 1971, James Anderson began his banking career in 1973 at Bank of America in Galesurg, IL where he was branch manager for five years. He was executive vice president of Commerce Bank in Kahoka for eight years and was president and a director at Citizens Bank of Edina for 12 years. He has been with Bank Northwest as president and CEO since 1998. He is a member of the board for the Cameron Veterans Home and is also a Mason. Jerry Trower Jerry Trower began his banking career in 1968 and worked at three banks before joining Palmyra State Bank as president in 2004. He now serves as president and CEO. He is active in his commu- nity and is past presi- dent of the Chamber of Commerce for both Hannibal and Palmy- ra. Trower is past chairman of both the Hannibal Region- al Hospital and the Hannibal Regional Hospital Founda- tion. He currently serves on the board for Hannibal Regional Healthcare System and is chairman of the Mari- on County Library Board. David Chinnery David Chinnery has worked in banking since 1992. He now serves as president, CEO and director at Adams Dairy Bank, Blue Springs, a bank he founded. Chinnery is a member of the Blue Springs Economic Development Council and the Blue Springs Chamber of Commerce. He serves on the Board for Boys Scouts of America, Heart of America Council, and is an Eagle Scout. Kara Huitt Kara Huitt began her career with Pro- gressive Ozark Bank 10 years ago and now is president and CEO of the bank. She has spent 20 years working in the financial area of both manufacturing and service industries. She earned her degree in business administration and account- ing from Drury University, Springfield. James Watson James Watson is president of Midwest BankCentre, St. Louis. He joined the bank in 2000 and has 35 years of experience in banking, He is active in his community and is a member of the board of directors for Circus Flora and co-chair of the Capital Campaign Com- mittee for Better Family Life. He also has served as chair of the American Red Cross MO- IL Blood Services Board. Eric McClure Eric McClure is president/ CEO of Mid-Mis- souri Bank, Springfield. He is former Commission- er of the Missouri Division of Finance and former president of Midwest Independent Bank, Jefferson City. McClure also is a former chairman of the Conference of State Bank Supervisors. McClure chaired the MBA Regulatory Affairs Commit- tee last year. He is a graduate of the University of Missouri. Doug Watson Doug Watson is president and CEO at MRV Banks, Cape Girardeau. He has more than 35 years of banking experience in Missouri. Watson earned his B.S. degree in business adminis- tration with an emphasis in accounting and a minor in psychology from Southeast Missouri State University. He also is a graduate of the Graduate School of Banking at Louisiana State University. Regional directors elected to three-year terms James Anderson Jerry Trower David Chinnery Kara Huitt James Watson Eric McClure Doug Watson MBA was lucky to be able to take a very low-profile in what turned out to be an historic Veto Session. With all of MBA’s priority bills passed and enacted into law, the Veto Session became an opportu- nity to meet and greet, but not get involved with legislators focused on what bills to sup- port and what to oppose. Traditionally, veto sessions are times for lawmakers to come to Jefferson City and hold campaign fundraisers. Not many bills are even con- sidered for an override vote. This year, things were different, but there were still plenty of fundraisers. MBA counted 19 on Tuesday, the day before the session began. Near record number of vetoes The problem was that Governor Jay Nixon vetoed 29 bills passed this session. That’s not a record (Governor Dalton holds that with 35 vetoes), but it was close. When you veto so many bills, and the other party holds a “veto-proof majority,” expect some fireworks. A game of numbers The main activity as the legislators gathered was counting votes. One hundred nine votes were needed in the Missouri House to override the Governor. Republican Historic Veto Session ends with 10 overrides See Historic, Page 8
Transcript
Volume 69, Number 9 • THE NEWSPAPER OF THE MISSOURI BANKERS ASSOCIATION • Thursday, September 19, 2013
The Missouri Banker
Visit our web site at http://www.mobankers.com
Seven new regional direc-tors who were elected during the 2013 Regional Meetings will be joining the MBA Board in June of 2014. Representing MBA’s regions on the Board will be: James Anderson, Bank Northwest, Hamilton, will represent the Pony Express Region in Northwest Mis-souri. Jerry Trower, Palmyra State Bank, Palmyra, will represent the Mark Twain Region in Northeast Mis-souri. David Chinnery, Adams Dairy Bank, Blue Springs, will represent the Truman Region in Western Missouri. Kara Huitt, Progressive Ozark Bank, FSB, Salem, will represent the Capitol Region in Central Missouri. James Watson, Midwest BankCentre, St. Louis, will represent the Gateway Re-gion in Eastern Missouri. Eric McClure, Mid-Mis-souri Bank, Springfield will represent the Ozark Region in Southwest Missouri. Douglas Watson, MRV Banks, Ste. Genevieve, will
represent the River Heritage Region in Southeast Mis-souri.James Anderson After serving in the U.S. Navy from 1969 to 1971, James Anderson began his banking career in 1973 at Bank of America in Galesurg, IL where he was branch manager for five years. He was executive vice president of Commerce Bank in Kahoka for eight years and was president and a director at Citizens Bank of Edina for 12 years. He has been with Bank Northwest as president and CEO since 1998. He is a member of the board for the Cameron Veterans Home and is also a Mason.Jerry Trower Jerry Trower began his banking career in 1968 and worked at three banks before joining Palmyra State Bank as president in 2004. He now serves as president and CEO. He is active in his commu-
nity and is past presi-dent of the Chamber of Commerce for both Hannibal and Palmy-ra. Trower is past chairman of both the Hannibal Region-al Hospital and the Hannibal Regional Hospital Founda-tion. He currently serves on the board for Hannibal Regional Healthcare System and is chairman of the Mari-on County Library Board.David Chinnery David Chinnery has worked in banking since 1992. He now serves as president, CEO and director at Adams Dairy Bank, Blue Springs, a bank he founded. Chinnery is a member of the Blue Springs Economic Development Council and the Blue Springs Chamber
of Commerce. He serves on the Board for Boys Scouts of America, Heart of America Council, and is an Eagle Scout.Kara Huitt Kara Huitt began her career with Pro-gressive Ozark Bank 10 years ago and now is president and CEO of the bank. She has spent 20 years working in the financial area of both manufacturing and service industries. She earned her degree in business administration and account-ing from Drury University, Springfield. James Watson James Watson is president of Midwest BankCentre, St. Louis. He joined the bank in 2000 and has 35 years of experience in
banking, He is active in his community and is a member of the board of directors for Circus Flora and co-chair of the Capital Campaign Com-mittee for Better Family Life. He also has served as chair of the American Red Cross MO-IL Blood Services Board.Eric McClure
Eric McClure is president/CEO of Mid-Mis-souri Bank, Springfield. He is former Commission-er of the Missouri Division of Finance and former president of Midwest Independent Bank, Jefferson City. McClure also is a former chairman of the Conference of State Bank Supervisors. McClure chaired the MBA Regulatory Affairs Commit-tee last year. He is a graduate of the University of Missouri.Doug Watson
Doug Watson is president and CEO at MRV Banks, Cape Girardeau. He has more than 35 years of banking experience in Missouri. Watson earned his B.S. degree in business adminis-tration with an emphasis in accounting and a minor in psychology from Southeast Missouri State University. He also is a graduate of the Graduate School of Banking at Louisiana State University.
Regional directors elected to three-year terms
James Anderson
Jerry Trower
David Chinnery
Kara Huitt
James Watson
Eric McClure
Doug Watson
MBA was lucky to be able to take a very low-profile in what turned out to be an historic Veto Session. With all of MBA’s priority bills passed and enacted into law, the Veto
Session became an opportu-nity to meet and greet, but not get involved with legislators focused on what bills to sup-port and what to oppose. Traditionally, veto sessions
are times for lawmakers to come to Jefferson City and hold campaign fundraisers. Not many bills are even con-sidered for an override vote. This year, things were different, but there were still plenty of fundraisers. MBA counted 19 on Tuesday, the day before the session began. Near record number of vetoes The problem was that Governor Jay Nixon vetoed 29 bills passed this session.
That’s not a record (Governor Dalton holds that with 35 vetoes), but it was close. When you veto so many bills, and the other party holds a “veto-proof majority,” expect some fireworks.A game of numbers The main activity as the legislators gathered was counting votes. One hundred nine votes were needed in the Missouri House to override the Governor. Republican
Historic Veto Session ends with 10 overrides
See Historic, Page 8
Page 2 The Missouri Banker September 19, 2013
Address changes Changes in addresses for The Missouri Banker can be mailed to the MBA at P.O. Box 57, Jefferson City, MO 65102, Attn: Database Manager or e-mailed to [email protected]
Like the Terminator, Basel III is back. Just before the Fourth of July holiday, the Fed issued its 972 page pro-posal to ensure banks hold more and higher quality capi-
tal. The FDIC and the OCC (and Fed) followed up on July 9 with advance notices of proposed interim final rules that were published for comment in the Federal Register on Aug. 30. Please keep and save this link for the FDIC capital resource page. http://www.fdic.gov/regulations/capital/ Last summer’s version generated more than 2,600 comment letters, most by community bankers rep-resenting our heartland, the interests of their banks and of their communities. I am proud that MBA was a leader in this effort, and, my thanks to Eric McClure and the MBA Regulatory Affairs Committee for sounding an early alarm. Keith Monson is our Regulatory Affairs Chair this year and I know his com-mittee will again engage on this issue. But remember, every bank in Missouri needs to focus on the latest Basel III propos-als to evaluate the impact on your bank and your com-munity. Every bank needs to have executive staff and perhaps a special capital
committee to study Basel III. In some cases, banks will merely tweak their business plan. Some banks will have to make significant changes to their strategic plans and their capital and liquidity programs. More than a few banks may find that the latest pro-posals still present unwork-able or unrealistic demands. If this is the case, the MBA needs to hear from you. The FDIC, OCC and Fed also need to hear from you. And finally, your congressional and senatorial representatives need to hear from you. Last year’s success in getting the initial Basel III proposal sent back to the shop for a major overhaul wasn’t the result of lobbying inside the beltway, or, power speaking to power, or, for that matter money. It was the result of your efforts speak-ing common sense with deep passion for your banks and for your communities. So, visit the link above (and other regulatory and associational resources) and start your homework assign-ments. Also, Keith Thorn-
burg, MBA general counsel, has prepared a brief overview of some of the high points of the new capital requirements and new asset risk weights. Community banks have a Jan. 1, 2015 implementa-tion date for most of the new requirements. So, we have time to influence and perhaps obtain warranted changes to the interim final proposals.What are we building? The avalanche of regula-tion out of Dodd-Frank and the changes out of Basel III are intended to build a safer, more transparent banking and financial system – and to protect consumers. I want you to think about your smart phone. For my first three decades consumer choice was the opportunity to choose the color of your phone (that plugged into a wall jack) and was sourced from only one provider. Technological in-novation was epitomized by replacement of the rotary dial phone (My kids would ask, what’s that?) with a touch-tone phone. In my last two decades, starting with a modest
regulatory rollback called the Telecommunication Act of 1996 – we have seen an explosion of innovation and choice – bringing us wireless communications and data, many choices of providers for hardware and for network access, and the wonder of a smart phone that can do 10,000-fold what a house-sized computer could do in the 1960s. There are a few people in Washington, D.C., who will acknowledge privately that some of the changes in the works could do harm to our communities, our customers and consumers. But, most have an unreasoned faith in government to solve prob-lems and inequities. These are the same people that think the government in-vented the internet and these same people couldn’t begin to understand the origins of the smart phone in the entre-preneurial soup of free capital markets. So, ladies and gentlemen, I invite and encourage you to take up your homework assignment!
By Keith ThornburgMBA General Counsel I appreciate the opportuni-ty to share thoughts and high points with you regarding the recent re-issue of the Basel III proposal by the Fed and the subsequent advance no-tices issued by the FDIC and the OCC (and Fed) on July 9 for the proposed interim final rules that were published for comment in the Federal Register on Aug. 30. Please keep and save this link for the FDIC capital resource page: http://www.fdic.gov/
regulations/capital/ As you begin your evalu-ation of Basel III, consider that the regulatory agencies stated perception is that 95 percent of community banks meet the new capital require-ments now. But, ask yourself if that will be the case when weak loan demand is re-placed by normal or strong loan demand. Will you be able to support your com-munity? Will you be able to take on risks that you deem prudent and that you know you can manage? Or, will
some customers and business sectors be too risky, simply because of Basel III?Basel III – capital standards Basel III sets a brand new capital ratio called Common Equity Tier 1 (CET 1) of 4.5 percent of Risk Weighted Assets (RWA). RWA is com-mon stock plus surplus and retained earnings, less the majority of regulatory deduc-tions (including goodwill, defined benefit plan assets, and gains-on-sales of secu-ritization exposures). This
new category is intended to present higher quality “regulatory” capital that will be available in times of eco-nomic stress. The revised Basel III proposal also retains the novel concept of the “capital conservation buffer.” This additional buffer is composed of CET 1 and should be at least 2.5 percent of RWA. If a bank’s buffer is short of the 2.5 percent level, regulatory restrictions automatically
Basel III returns with 972-page proposal
Basel III proposal sets new capital standards
See Basel III, Page 3
Page 3The Missouri Banker September 19, 2013
Paid Advertisement
kick in to restrict capital distributions and discretion-ary bonuses. The severity of the restrictions phases in as the buffer shrinks from 2.5 percent down to .625 percent. The buffer requirement itself phases in from years 2016 to 2019. Tier 1 capital requirements increase from 4 percent to 6 percent. Tier 1 capital is redefined as CET 1 plus non-cumulative perpetual pre-ferred stock. For most banks (largest banks excluded), reg-ulators dropped their original proposal to begin phasing out trust-preferred and other securities. Score this a win! There is no change to the required Total Capital Ratio of 8 percent or the leverage ratio of 4 percent.Basel III – Risk –Weighted Assets The Basel III rules make
regulatory capital measure-ments more risk-sensitive, increasing the risk weighting requirements for certain as-sets. Regulations currently require 100 percent risk weighting for all commercial real estate (CRE) loans and for most other loans and this will remain the same. Score another win for the industry in that the revised proposal no longer over-weights per-forming non-conventional 1-4 family residential mort-gages (such as balloon and interest only mortgages). We were also successful in retaining recognition of PMI and treating relationships presenting a first, and junior liens (no intervening lien) as a single exposure. However, for the newly-created commercial real estate (CRE) subset of high-
volatility CRE (HVCRE), the requirement will increase to 150 percent. Under the rule, HVCRE loans are made for the acquisition, development or construction of real property, prior to the conversion to permanent financing. While regulators have made some exceptions here (i.e. 1-4 family residential, agricultural, etc.), it is clear they are discouraging banks from certain behaviors and loan asset classes. Basel III also targets 90 day past due exposures. Past due loans had previously not required any change in risk weighting, but now will require 150 percent risk weighting. Non-accrual loans will also require 150 percent risk weighting. These are loans that you have already
allocated loss reserves to ac-count for the risk exposure! This piece of the rule will amplify economic stresses on your bank and your commu-nity since it is pro-cyclical and will have a significant impact by chewing up regula-tory capital when recessions or downturns occur. Banks will have some options for risk weighting private CMOs, TruPS, CDOs, and other asset backed se-curities. Other investments presenting equity exposures will also have revised risk weights. Risk weights for collateralized transactions and for some debt securities are affected. Off-balance sheet exposures are also ad-dressed. Most banks will see an impact in one or more of these areas.Action Every bank needs a
dedicated team to review and evaluate Basel III and to determine how it affects your bank and your community. The proposal begins to take effect Jan. 1, 2015. You will need to revise your business plan, perhaps also your strategic plan, as well as your capital and liquidity plans. The knowledge you gain by digging in early will bring you two benefits for one investment. First, you have more time to evaluate, implement and adjust changes in your bank. Second, the knowledge from your early effort can be put to use informing, questioning and suggesting changes to our regulatory partners. Our industry can still influence the final implementation of Basel III to the benefit of all.
Basel IIIFrom Page 2
Page 4 The Missouri Banker September 19, 2013
Paid Advertisement
An independent, full-line agency
Call
Paula Hansen
at 800-234-4939
Let MBA Insurance Group help you with all of your health and life insurance needs.
Medical Dental Long Term Care Life & Additional Life Long Term Disability Felonious Assault
Group & Individual Accident Vision Cancer
Talk to Paula today!
Lead Bank, Lee’s Summit, recently hosted a Congressional Bank Visit for Rep. Vickie Hartzler, fourth from left, who represents Missouri’s Fourth Congressional District. Taking part in the meeting were, from left, Rob Morgan, senior vice president, residential lending; Chris Lepper, MBA grassroots/PAC coordinator; MBA President and CEO Max Cook; Hartzler; Darrin Moorer, (behind Hartzler) chief information officer; William Bryant, chief executive officer; Connie Pruden, vice president, compliance; Lisa Desjardins, senior vice president, lending; Beverly Andes, assistant vice president/BSA officer; and Brian Winter, a local farmer and bank client.
U.S. Rep. Hartzler visits Lead Bank
In the fall 2009 the Missouri Bankers Association selected Segs-4Vets as its designated charity and began encouraging MBA member banks and their employees to raise funds for the group which provides Segway mobile transporters to men and women who were wounded in service to America. Since the first fundraising effort
the MBA family has raised $150,589 for the organization by publishing cookbooks to sell, holding bake sales and breakfasts, sponsoring casual days and encouraging customers and employees to make donations. Other successful projects have been 5K runs and competitions be-tween banks and public officials. This year Nov. 8, the Friday
before Veterans Day is designated as MBA’s Fifth Annual Segs4Vets Day. Fundraising events sponsored by MBA members not only raise money for Segs4Vets but also raise public awareness of the struggles of injured veterans. The impact of the program extends beyond the recipi-ent to the family and extended fam-ily. For many, the Segway has had
such a psychological impact on the recipients that it has brought about a dramatic positive change in family dynamics. For more information about MBA’s 2013 fundraising efforts, visit the MBA website at www.mobankers.com and click on Segs4Vets under Member Resources on the home page.
Plans underway for MBA’s 2013 fundraising effort for Segs4Vets
An historic Veto Session is now one for the history books. Legislators had not quite made their way home when word went out that we will see ver-sions of the tax-cut bill and the gun bill next session. MBA is also already mak-ing plans for next session. We HOPE it will be much less ac-tive than our last session. Hav-ing said that, I already have 20 issues on our list of possibles. Some of these are issues we know will appear next session, (Some we support and some we oppose). Others are those that might appear next session and some are ones we must do some homework on before we can say one way or another. We go through this exer-cise prior to each session. We’re right about 75 percent of the time on our guesses. Then there are the unknowns. These are issues that appear out of the blue and we have to scramble to get educated about then before deciding if we support or oppose. (This session it was the Transferable Tax Lien issue, which we op-pose). Every session we get a couple of these surprises. Our Legislative Affairs Committee is meeting No-vember 12. By then the list will be longer and we’ll know more details on some of the issues that have just recently gone on the list. We’ll review all of the issues with the com-mittee and get their recom-mendations to present to the MBA Board at the December meeting. As you read this, the 2014 session is just a little over 100
days away. Pre-retiree blues… As I work my way toward retirement, I am suddenly finding all kinds of articles about the subject. Most are pretty depressing. For in-stance, the majority of people who, like me are pre-retirees, say they will work until they are 68 years old (coinciden-tally my age)… but… the actual mean age when most people retire is 59 years old! (That’s according to North-west Mutual’s 2013 Planning and Progress Study.) That same study finds that 32 percent of people say they will work into their 70’s, and 51 percent of pre-retirees say they are less financially secure than they thought they would be. Another study by AARP says 60 percent to 80 percent of pre-retirees say they expect to work some during retire-ment…but…in 2012, just 18.2 percent of people age 65 and older were actually working. Why do I mention all this? It has a direct impact on banks in a number of ways:• More debt problems for
seniors• More long term loans for
seniors
• A need for financial guidance and help for seniors
• A need for the security of a banking relationship for seniors
With the average life expectancy increasing, bank-customer pairings will go much longer. It is a market niche filled with possibilities.Media notes: The housing landscape is changing! The U.S. Census Bureau says that in 2012, more than one out of four households had just one per-son. That is the largest single household number in the last one hundred years! Accord-ing to the Bureau, some 33.2 million people in the U.S. now live alone. Ya gotta know the jargon…The New York Times periodi-cally runs an update on the new “Inside the Beltway” vocabulary. These are terms being used in Washington, D.C. (and often in Jefferson City). Here are a few of the new words:• Graybeard: A “vener-
able” Washingtonian brought into a campaign to act as the “adult.”
• Sherpa: A graybeard who guides a nominee through
a confirmation process.• Formers: Those who
trade on an expired job title.
• Me Wall: An array of photographs in an office
featuring the person who has an office with a lot of famous people.
In future issues, I’ll pro-vide you with some more insider words.
The session’s over – get ready for the session
MBA’s 2014 Senior Bank Management Conference is planned for Jan. 11 to 19 at Sandals Grande St. Lucian Spa and Beach Resort in St. Lucia – Windward Islands. The resort facilities include a beach, five main pools, four whirlpools and the Red Lane Spa. Golf is available with complimentary green fees at Sandals Le Toc Resort. The conference schedule includes programs on banking is-sues. Visit the MBA website at www.mobankers.com for more information. The deadline to register is Oct. 1.
Senior Bank Management Conference to be held at St. Lucia Jan. 11 to 19
Community banks turn to The Whitlock Company for solutions to improve pro� tability in the face of growing and changing regulations.
Our services include:
• Internal Audit a la Carte
• Financial Statement Audits
• Tax Savings
Partner with our expertise to � nd the right solutions for your bank.
• Risk Management
• IT Exams
• Loan Reviews
whitlockco.com
Paid Advertisement
By Linda PetersenManagerMBA Title Service What is a Notice of Lien Filed in Error? Does the Department of Revenue have a form for this? When and how do I file a Notice of Lien Filed in Error? These are questions that the MBA Title Service is asked frequently. A “Notice of Lien Filed in Error” is a statement submitted to the Missouri Department of Revenue when a major error has been made on a Notice of Lien and it is to be deleted from the Department of Revenue system. There is no charge. A guideline to determine if a
Questions answered on Notice of Lien Filed in ErrorNotice of Lien Filed in Error is appropriate is:1. A lien has been filed for
an incorrect owner;2. A lien has been filed on a
wrong vehicle/a problem with the VIN; or
3. The lienholder information is incorrect
Most other changes are allowed by Missouri law to be noted on the original validated Notice of Lien, thus, preserving the lender’s original filing date. The Department of Revenue has no special form printed for this. A lender would use letterhead. A suggested format would be to type, NOTICE OF LIEN FILED IN ERROR, in all
capital letters across the top of the paper. Underneath list the names that were on the Notice of Lien to be deleted; the year, make and VIN of the vehicle; and, if you have it, the DOR control number given to that Notice of Lien. It is also helpful to attach a photocopy of the validated incorrect Notice of Lien. Once you have the pertinent information listed, simply type the statement: “The above Notice of Lien was filed in error.” If you wish to give more information such as, “No fraud intended.” or “The owner name or vehicle information is wrong.”etc., you may.
The next step is to have someone from the lending institution sign the affidavit. The Notice of Lien Filed in Error should be notarized because you are technically “releasing the lien” and a lien release must be notarized in the state of Missouri.Missouri Department of Revenue wants your feedback As discussed above there is no form for filing a Notice of Lien Filed in Error. Would you like to have one developed? Keep in mind the reason for setting up the Notice of Lien Filed in Error as above was to add one more layer
of protection for the lender. Your letterhead is not easy to fake. Theoretically, anyone can fill out a form and submit it. While it might be easier to have a form all ready to go supplied by the DOR a little extra on your part might keep your loans more secure. Think about it and let us know. I will share your responses with the Department of Revenue and we’ll see what happens. Call Linda Petersen at 573-636-8151; Fax 573-636-8047 or email at: [email protected].
This is MBA Title Service at YOUR Service
Actions The Commissioner of Finance approved the agree-ment to merge Bank of Thayer, Thayer, with and into Southern Bank, Poplar Bluff, the surviving bank.
Under the Articles of Agree-ment of Southern Bank with the main banking house of the surviving bank being the present main banking house of Southern Bank, Poplar
Bluff, subject to the approval of the shareholders of both banks. The Commissioner of Fi-nance issued an order grant-ing The Callaway Bank,
Fulton, authority to become an Originating Trustee for Trust Company of the Ozarks, Springfield, under Section 362.116, RSMo. Commercial Bank, Maryland Heights, received permission to establish a separate branch at 2197 S. Mason Rd., St. Louis. Central Trust and In-vestment Company, Jeffer-son City, received permission to establish a separate branch at 1330A N. 7 Hwy., Blue Springs. Stifel Bank and Trust, Creve Coeur, received per-mission to relocate the main banking house from 955 Executive Parkway, Suite 216, Creve Coeur, to 501 N. Broadway, St. Louis. Also re-ceived permission to change the name and place of resi-dence of the sole shareholder to Stifel Financial Corp., 501 N. Broadway, St. Louis. Town & Country Bank, Salem, requested permission to relocate its already estab-lished branch from 1115 NW 12th Ave., Ava, to Highway 5 and Highway 14, Ava. The Commissioner of Finance approved the agree-
ment to merge Summit Bank, Tulsa, Okla., with and into Commerce Bank, Kansas City, the surviving institution. Under the Articles of Agreement of Commerce Bank, with the main bank-ing house of the surviving bank being the present main banking house of Commerce Bank, Kansas City. Since both banks were wholly owned by the same bank holding company, the merger took effect at the opening of business on Sept. 3, 2013. Section 408.030 provides that the Director of Finance shall declare the quarterly market rate of interest each quarter, post it in accordance with Section 361.110 and publish it. Said quarterly market rate for the period of Oct. 1, 2013 through Dec. 31, 2013, shall be 6.5 percent; as an alternative lenders may charge the usury rate of 10 percent. Certificate of Reciprocity issued to Bank of Spring-field, Springfield, Ill., authorizing it to act as a fidu-ciary in the State of Missouri pursuant to Section 362.600, RSMo.
Page 7The Missouri Banker September 19, 2013
Paid Advertisement
Asset/Liability Modeling and Model Review | Institutional Fixed Income | Portfolio Accounting and Safekeeping Municipal Credit Analysis | Municipal and Agency Debt Underwriting | CD Underwriting
Your Customers Turn To You For Advice. But Where Do You Turn?Today, banking institutions face a myriad of challenges. Balancing client needs, regulatory requirements
and profitability is no easy task. Fortunately, we can help. With a dedicated staff of experienced
professionals, we offer a full-range of asset/liability consulting and investment services. But best of all,
we’re local. We know the market. We know your challenges. With BOSC, Inc., you can focus on what
matters most: your customers.
Give us a call, or better yet, let us come to you.
Page 8 The Missouri Banker September 19, 2013
Missouri Bankers Association Silent Auction
Donation Form
Name_________________________________________________________________________ Bank/Co. _____________________________________________________________________ Address ______________________________________________________________________ City, State, Zip ________________________________________________________________ Phone _________________________________E-mail _________________________________ Gift Item and Brief Description __________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Retail Value $ _________________________________________________________________ Enclosed is my Cash Donation to be used to purchase auction item(s) $_______________ (Items purchased will be credited to you and your organization) Please complete this form and return to the MBA office. We ask that you bring your item to the Executive Management Conference “Registration Desk”. If you wish to contribute and cannot be present at Executive Management Conference, or if it is not practical to have the item physically present at the Conference, items may be shipped to the MBA office. Donors will receive full credit at the auction for contributions, and donated items will be published in the Silent Auction Catalog.
Contributions may be made anonymously upon request.
Please complete and return to:
Rachael Preston Missouri Bankers Association
PO Box 57, Jefferson City, MO 65102 (573) 636-8151
PLEASE RETURN DONATION FORM BY NOV. 15, 2013 so that we may include your item in the Silent Auction Catalog.
The Annual MBA Silent Auction will take place on Dec. 5 at the Missouri Bank-ers Association’s Executive Management Conference at the Ritz Carlton Hotel in St. Louis, Missouri. The Silent Auction ben-efits the Missouri Bankers Foundation which provides annual scholarships for de-serving high schools students planning to pursue banking-related college degrees as well as for young bank-ers already working in the Missouri banking industry. Additionally, the Foundation supports statewide financial literacy efforts, the robbery reward program, a speaker’s series and The 50 Year Club recognition. Back by popular demand, the Foundation will also host the “Wall of Wines” raffle—and this year, in addition to
the variety of quality wines, ticket holders may win coolers filled with carefully selected craft beers! Please consider a donation to this year’s auction. Some popular items donated in the
past include golf/sports/hunt-ing equipment, handcrafted or one-of-a-kind items, art, collectibles, holiday items, certificates & tickets, auto-graphed items, and jewelry. Not sure what to donate?
We’ll do the shopping! Cash donations will be used to purchase unique items to round out items up for bid. The Silent Auction and Wall of Wines raffle will take place on Thursday, Dec.
5 from 5:00 p.m. until 6:30 p.m. If you need ideas or have questions, please feel free to contact Rachael Preston at (573) 636-8151 [email protected].
Silent Auction planned to benefit Missouri Bankers Foundation
lawmakers had exactly 109 votes if everyone stayed in the fold. Twenty-three votes were needed for an override in the Senate. Senate Republicans hold 24 seats. The question then became: Could everyone be relied on to vote together?In the end … As it turned out, after a 12-hour session from noon to midnight on Sept. 11, the Legislature voted to override 10 of the Governor’s vetoes. Everyone claimed victory. Governor Nixon spent most of his efforts to keep the tax-cut bill from being over-ridden. He was successful. The override attempt failed by 15 votes in the House. Attorney General Chris Koster and the law enforce-ment community were successful in stopping an override of the gun bill. Republicans claimed wins by overriding 10 of the Governor’s vetoes, a modern history record number of overrides.
HistoricFrom Page 1
Page 9The Missouri Banker September 19, 2013
Paid Advertisement
Bottom Line“It’s the power of information at my fingertips – right now.”
At PULSE, we are committed to delivering products and services that help our network participants maximize the value of debit. That commitment is reflected in the PULSE Debit Dashboard®, an analytics reporting tool that delivers easy access to timely information through a unique, intuitive web interface. Ben Benack sees the value this information brings to his organization, “When every department is engaged with reviewing and dissecting insightful data, that’s good for Dollar Bank’s customers, and for our bottom line. It’s refreshing to work with a partner like PULSE that cares enough to be completely accessible.”
MBA’s Regional Meetings have ended with hundreds of bankers having attended the five meetings held around the state. Since this is a non-election year, the MBA offers Regulator Panels as the main feature of the meetings. In election years, the focus is on meeting the candidates. The assembled bankers heard a legislative recap of the year’s session and a forecast for the upcoming year from MBA lobbyists Bill Ratliff and Craig Overfelt.
MBA President Max Cook introduced the new Amplify program to the bankers and urged them to register on the www.amplifybankers.com website.. Cook also zeroed in on the upcoming legislative fight with credit unions and their huge tax exemption. The Regulator Panels filled out the rest of the meetings with comments and question and answer sessions. We are sharing a sampling of some of the regulators’ comments:
Regional Meetings draw crowds across the state
MBA President and CEO Max Cook fires up bankers on the credit union tax exemption at one of this year’s Regional Meetings.
Attending the Regional Meeting in Cape Girardeau were, from left, Dan Ward, Midwest Independent Bank; Steve Middelkamp; David Crader, Bank of Missouri, Cape Girardeau; and Paul Gard, Bank of Missouri, Perryville.
Rich Weaver (Missouri Division of Finance): “Lots of people think that brick and mortar is a thing of the past, but we’ve averaged about one new branch opening request each week for the past couple of years.”
Julie Stackhouse (St. Louis Federal Reserve): “The banks that are a challenge have undeveloped land in not good locations … another problem is there is a lot of holding company debt.”
Paid Advertisement
A Division of First State Bank of St. Charles
We Have The Keys to Your Success First State Bank Mortgage Community Mortgage Banking Program
As one of the largest mortgage loan originators in Missouri, we are able to o�er secondary market solutions to community banks. Our Community Mortgage Banking program is speci�cally designed to do just that. A separate division of First State Bank Mortgage, this program is able to leverage our talented mortgage professionals, full array of mortgage products and investors, and superior technology systems.
The Community Mortgage Banking Division is headed by Mike Anderson who brings 30 years of executive banking perspective and an understanding of the challenges community banks face in allfacets of management and strategic growth.
Regardless of your bank’s current status in mortgage origination, from none to a large infrastructure, we can o�er various levels of solutions to your e�orts. We can help you navigate the mine �elds of infrastructure operating costs, funding and credit risks, and ever- burgeoning compliance and regulatory risks associated with mortgage origination.
Call us today to discuss your institution’s unique needs.
Daniel SimpsonDirector of Mortgage,Senior Vice President
Mike AndersonManaging Director,Community Mortgage Banking
• Correspondent and Wholesale Agreement relationships• All conventional and government loan options, including FHA, VA and USDA loans• Direct Underwriting Eliminating your bank’s repurchase risk on credit Direct communication with underwriter Fast track underwriting Scenario email address• Experienced and knowledgeable staff• Processing and closing services• Great rates due to volume & credit success with investors• Superior mortgage technology systems• Training programs• Dedicated web site
A Division of First State Bank of St. Charles NMLS # 416668
636-940-5632 | www.fsbcmb.com
Page 11The Missouri Banker September 19, 2013
Regulators attending the Gateway Regional Meeting in St. Louis on Aug. 29 were, from left, Tiffany Stecko, Federal Reserve Bank of St. Louis; Missouri Commissioner of Finance Rich Weaver; Julie Stackhouse, Federal Reserve Bank of St. Louis; and Jim LaPierre, FDIC, St. Louis.
Ozark Region bankers enjoy a time to network before the Regional Meeting for Southwest Missouri got underway on Aug. 15. Ozark Region had the best attendance with 120. The total attendance for Regional Meetings this year is 431.
Attending the Regional Meeting for Mark Twain and Capitol Regions on Sept. 10 were, from left, John Diehl, (R-Town and Country, speaker-elect of the Missouri House); Leslie Tanner, Central Bank, Jefferson City, and a member of the Banking Leadership Missouri class; and Bruce Phelps, Hawthorn Bank, Jefferson City.
Dave Koerring, left, and Debra Hardman, both with the Missouri Division of Finance, visit with Robert Williams, First Bank of the Lake, Osage Beach, prior to the Regional Meeting in Columbia.
Jim LaPierre (FDIC): “This (FDIC) region’s banks and Missouri are doing better than other parts of the nation…and the Deposit Insurance Fund continues to grow….”
Kevin Henry (St. Louis Fed): “We have a lot more involvement in Fair Lending. Consumer groups and Washington are driving a lot of this.”
Dan Thoreson (OCC): “Here are some matters requiring attention: 50 percent had to do with credit quality losses, 13 percent with capital market issues, and 10 percent with information technology (security) issues.”
Tim Bosch (St. Louis Fed): “Banks that thrived during the financial crisis – they stayed at home and did what they know how to do well…I ask that you know what you’re doing before you do it – put risk management practices in place first.”
Rich Weaver (Division of Finance): “Things are improving–substantially improving … Our primary concern is interest rate risk – make sure you know what you are getting into …”
Jim LaPierre (FDIC): “Credit quality is improving, but we too, are concerned about interest rate risk …”
Tiffany Stecko (St. Louis Fed): Here are some of the problem areas we’ve encountered:• Escrowing for HPML – are you truly
exempt?• Inaccurate denial reasons on adverse
action notices – for example insufficient collateral on an unsecured loan.
• Insufficient flood insurance coverage specifically on properties with multiple buildings or loans secured by multiple properties
• Mortgage Loan Originator compensation• Redlining• Discrimination issues with receipt of
public assistance
Debra Hardman (Division of Finance): “We supervise $97 billion in bank assets, and the number of problem banks continues to decline … As of June, out of 262 banks, all but 14 are making money.”
Page 12 The Missouri Banker September 19, 2013
STEP UP
AgendaSeptember 201330 - Oct. 3 Washington VisitOctober 201310-11 Young Bankers Leadership Conference, Crowne
Plaza, Kansas City22 IRA Seminar, Cape Girardeau23 IRA Seminar, Columbia23 Security Management Seminar, Columbia24 IRA Seminar, Springfield25 IRA Seminar, Kansas City24 - 25 Bank Legal Issues Conference, Holiday Inn
Executive Center, Columbia29 AIB Principles of Banking Two-Day& Nov. 5 Class, Independence31 Directors Forum, Stoney Creek Inn, ColumbiaNovember 201314 Bank Secrecy Act Seminar, Columbia20 -21 Lending Compliance Workshop, ColumbiaDecember 20134 - 6 Executive Management Conference, The Ritz-
Carlton Hotel, St. LouisJanuary 201411 - 19 Senior Bank Management Conference, St. Lucia19 - 24 School of Bank Management, Stoney Creek Inn,
ColumbiaMarch 20143 - 7 School of Compliance, Stoney Creek Inn, Columbia8 - 14 School of Lending, Stoney Creek Inn, Columbia11 - 13 Graduate School of Lending, Stoney Creek Inn,
Columbia
The MBA has joined with bankers associations across the country to create the Regulatory Feedback Initiative (RFI). This initiative will bring transparency and accountability to the regulatory process and will help every bank in the country prepare for their examinations and manage their regulatory risk. The initiative consists of a brief, anonymous online survey that we are asking every bank to take immediately following each safety and soundness examination and each compliance examination. We need every bank to build the survey into their examination process. For more information, visit the Alliance of Bankers Associations web site at www.allbankers.org. To receive a link to the survey contact Mike Noblett at the MBA via email at [email protected].
MBA is a part of Regulatory Feedback Initiative (RFI)
Paid Advertisement
Page 13The Missouri Banker September 19, 2013
Paid Advertisement
With OpteView® Resolve,™ what you see is a well-connected, effi cient ATM network.
Diebold’s availability management solution is yet another example of industry-leading products and services. It enables institutions to integrate
self-service delivery into their operations in a way that is cost-effi cient, secure and compliant. Big picture: It’s an unparalleled catalyst for growth. And
another reason why Diebold has remained a leader for more than 150 years.
For the entire story, visit www.diebold.com/boldinnovation.
Eleven Missouri Young Bankers were nominated for the 2013 Young Bankers Leadership Award which rec-ognizes outstanding achieve-ment of a Missouri banker, age 45 or younger who is employed by an MBA mem-ber bank. The award will be presented on Oct. 10 at the Young Bankers Leadership Conference in Kansas City. We want to introduce you to the exceptional bankers who were nominated.
Lance Boyer Central Bank Lebanon Lance Boyer began working in banking dur-ing the sum-mers in 1995 and 1996 as a teller at Mercan-tile Bank of Wright County. After earning his B.S. degree in finance at Missouri State University in December of 1998, he joined the Federal Reserve Bank of Kansas City in January of 1999 as a management de-velopment program analyst. He also worked as a credit analyst at Bank of Blue Valley, Overland Park, KS, before joining Central Bank, Lebanon in April of 2002 as a credit analyst. At Central Bank, he has worked as loan officer, credit and financial analyst and in 2010, was named chief financial officer. Boyer earned his MBA from Missouri State Univer-sity in December of 2007. He is president of the Lebanon Chapter of Kiwanis Inter-national and has chaired the group’s Scholarship Commit-tee. He served as a city alder-man in Hartville from 2007 to 2011, until he resigned after moving outside the city limits. Boyer is a Gen-eral Board member for the Hartville Free Will Baptist Church and is a member of the church’s Finance Com-mittee.
Dale Cottrell Bank of Sullivan Sullivan Dale Cot-trell began working at Bank of Sullivan as a teller while he was a high school student. He earned his AA degree at East Central College, Union, and his BS degree in business admin-istrative management from Missouri State University. He finished his undergradu-ate degree studies in three and a half years and returned to the bank as a manage-ment trainee. While working full time at the bank, Cot-trell earned his MBA from Webster University in May of 2004. He has worked at the Bank of Sullivan since 1997 and was named vice presi-dent in 2008. Cottrell was named senior vice president and chief operations officer in March of 2011 and was elected to the board of direc-tors in August of 2011. Cottrell was instrumental in the bank’s purchase of Fidelity Mortgage Corpora-tion and was a member of the team that formulated a bid to the FDIC to purchase a failed bank. He is active in commu-nity activities serving on the Industrial Development Au-thority Board for the City of Sullivan and is a member of the city’s Planning and Zon-ing Committee. He is active in Sullivan Christian Church and volunteers as a basket-ball coach. For the past five years, he has been a radio announcer for high school basketball on KTUI Radio.
Scott Fann Wood and Huston Bank Marshall Scott Fann worked as a se-nior assistant bank examiner for the Missouri Division of Finance from 2004 to 2006
before join-ing Wood and Hus-ton Bank, Marshall as a credit ad-ministration supervisor in 2006. He was named vice president-commercial loan officer in 2008 and now manages a $26 million portfolio of commer-cial and agricultural loans. Fann is a member of the bank’s Local Loan Com-mittee, the Executive Loan Committee and the BSA/AML Committee. His com-munity service includes serv-ing on the Marshall Parks and Recreation Board, presi-dent of the Marshall Owls Baseball Board, the summer youth baseball program in Marshall. He takes part in community fundraisers for the Fitzgibbon Hospital, local YMCA and the bank’s fundraising efforts for Segs-4Vets. Fann served on MBA’s Agriculture Committee and the Trustees for Banking Education. He is a gradu-ate of MBA’s first Banking Leadership Missouri program from 2010 – 2011. He earned his degree in finance and banking from the University of Missouri in 2004.
Derek Fraley Guaranty Bank Springfield Derek Fraley began his bank-ing career at UMB Bank as a commercial credit analyst in 2001. He transferred to the Financial Service Group in the Investment Banking Division where he worked with more than 1,200 bank clients in developing asset/liability management poli-cies, systems and strategies. He also assisted with the management of a $2.5 billion
bond portfolio. Fraley joined Guaranty Bank, Springfield, in October 2008 as vice president and treasurer. He leads the bank’s ALCO Committee and process and is responsible for deposit pricing, financial modeling, capital planning and liquidity management for the $650 million bank. He implemented and maintains Guaranty Bank’s customer level profitability model, reporting and Funds Transfer pricing. He also manages the bank’s more than $100 million bond and investment portfolio. Fraley earned his B.S. in finance from Missouri State University and his MBA from Rockhurst University. He also earned the designa-tion of Certified Treasury Professional. He has instruct-ed on asset/liability man-agement related topics for the Missouri and Nebraska Bankers Associations and is an instructor at the Graduate School of Banking in Madi-son, Wisc. Fraley also serves on the Jack Henry ProfitStars Advisory Board and was vice president and president of the Ozark Bankers Association. He has served on the MBA Government Affairs Committee and is active in his community. Fraley is active in Rotary and serves on the Green County Indus-trial Development Authority Board. He is a member of the City of Springfield Public Building Corporation.
Jeffrey Gilbert Frontenac Bank Earth City Jeffrey Gilbert is senior vice president of Frontenac Bank, Earth City. He is responsible for com-mercial loan growth. Gil-bert started his career with
Enterprise Bank and Trust as a credit analyst which led to managing a group of ana-lysts. He began lending full time in 2002. He serves on the bank’s ALCO Committee and the OREO Committee. Gilbert is a member of the St. Charles Chamber of Commerce and has served on committees for the MS Society where he was an MS Corporate Achiever for the Class of 2005 and the Home Builders Association. He earned his Bachelor’s Degree in Human and Organizational Development with a minor in business administration from Vanderbilt University.
Brent Kembell UMB Bank, N.A. Springfield Brent Kembell joined UMB in 2007 after serving as an instructor of account and business at the Missouri State University Branch Campus in Dalian, China. He then worked three years as a CPA for KPM CPAs, Spring-field. He is now vice presi-dent, commercial banking at UMB. He has been recog-nized for the past two years as one of the top commercial producers at UMB. Kembell was recognized by the Springfield Busi-ness Journal in 2012 with the “40 Under 40” Award. He received the Institute of Management Accountants 2013 “Young Professional of the Year” Award. He is a member of the Springfield Chamber of Commerce Inter-national Business Commit-tee. He was a member of the local board and the regional board (Heartland Council) for the Institute of Manage-ment Accountants (IMA), and served as president of the
Lance Boyer
Dale Cottrell
Scott Fann
Derek Fraley
Jeffrey Gilbert
Brent Kembell
Eleven nominated to be recognized with ....
Continued on Page 15
Page 15The Missouri Banker September 19, 2013
Greater Ozarks IMA chapter. He is an instructor for the YMCA and is involved with fundraising for the YMCA’s Strong Kids Foundation. He also mentors junior ten-nis players. Kembell was a collegiate tennis player and is active in the Springfield tennis community. He earned his BS degree in accountancy and his Master of accoun-tancy degrees from Missouri State University.
Suzie Naeger Boone County National Bank, Columbia Suzie Naeger began working at Boone County Na-tional Bank, Columbia, in 1994 as a teller at one of the bank’s busiest locations. She was named a customer service representa-tive in 1997 and in 1998 was promoted to assistant man-ager of the Customer Service Center. She has worked as branch manager and regional managing officer before being named assistant vice president, relationship bank-ing director in 2011. She completed her under-graduate degree with a B.S. in agricultural economics in 2002 from the University of Missouri – Columbia. She worked full time while earning her MBA in financial services and risk manage-ment from Stephens College in 2007. Naeger completed the MBA School of Bank Management in 2005 and is now chair of the MBA Trustees for Banking Educa-tion. She was a member of the first Banking Leadership Missouri program. Naeger volunteers for numerous organizations including Easter Seals, Boone County 4-H, United Way, Columbia Chamber of Commerce, Boone County
March of Dimes, Girl Scouts of Mid-Missouri, Roots n’ Blues BBQ Festival, Colum-bia Swim Club, Rhythm ‘N Q BBQ Festival. In 2007, she was named one of Colum-bia’s 20 outstanding young business leaders in the “20 Under 40” Class.
Robin Rees Peoples Bank of the Ozarks, Nixa Robin Rees joined Peoples Bank of the Ozarks about 14 years ago as a teller. She worked in various positions in the bank and in 2004, she was named vice president, marketing officer. Rees is active with finan-cial literacy for the bank, organizing Teach Children to Save Day activities and has participated in the bank’s Adopt-A-Class program for the past nine years. Each year the bank adopts one or two classrooms to visit on a regular basis to help educate students on money and sav-ing. he also wrote and re-corded the Peoples Bank Money Song to be used in classrooms to introduce small children to money and the value of different coins. The video is posted on YouTube for anyone to use free of charge. The link is: http://www.youtube.com/watch?v=4N7CeepRM9g. She is active in the Nixa Area Chamber of Commerce, Least of These (Christian County food-clothing pantry, AIDS Project of the Ozarks, Wells of Joy (Bilyeu family ministry) and Ridge Crest Baptist Church in Spring-field. Rees was recognized by the Springfield Business Journal as a “40 Under 40” recipient and by the Nixa Xpress as a “12 Under 40.”
She was named Nixa Cham-ber Member of the Year and received the AIDS Projects of the Ozarks Volunteer Award. Rees was a member of the second class of Banking Leadership Missouri and is serving on MBA’s Trustees for Banking Education. She also is a Target Banker in MBA’s grassroots program.
Anthony D. Robertson First National Bank of Audrain County, Mexico Anthony D. (Tony) Robertson earned his BS degree in agricultural economics from the University of Missouri in 1992. He worked from 1990 to 1994 as assistant county supervisor, USDA – Farm-ers Home Administration working in the State Office in Columbia as well as other county offices around the state. He joined First National Bank of Audrain County in 1994 and now serves as vice president and works with agricultural, commercial, mortgage and consumer lending, loan servicing and collections and business development. Robertson serves on the bank’s Asset and Liability Committee, Loan Commit-tee and other standing and ad hoc committees with Central Bancompany, the bank’s holding company. He is active in the Mexico Chamber of Commerce hav-ing served as a Board mem-ber and held offices including president in 2011. He also is a past president of the United Way of Audrain County. He has served as a deacon for the First Presbyterian Church of Mexico where he also chaired the National and
Global Missions Committee and taught Sunday School. Robertson served as presi-dent of the Mexico Jaycees and is currently president of the Audrain County Histori-cal Society and the Audrain County MU Alumni Associa-tion Chapter. Robertson was named a Missouri Agricultural Leader of Tomorrow for 2003-04 and was Mexico Jaycees Of-ficer of the Year in 1999. He received the MBA Graduate School Scholarship Award in 1997 and the MBA Academic Achievement Award in 2001.
Ron Rushing Metropolitan National Bank, Springfield Ron Rushing has worked in banking for the past 15 years. Before joining Marshfield Banking Com-pany, the holding Company for Metropolitan National Bank, in 2009, he had worked as a bank examiner for the Missouri Division of Finance. Rushing then worked at U.S. Bank, Liberty Bank, and Superior Consulting, LLC. In 2008, he formed Rushing Consulting Group, LLC, which conducted loan reviews and management studies for financial institu-tions. In 2012, Robertson transferred to Metropolitan National Bank and was later promoted to executive vice president, chief credit officer. Rushing received his BA degree from Drury Univer-sity, Springfield, and his MBA degree from Lincoln University, Jefferson City. He is a graduate of the Graduate School of Banking Colorado. He is active in continuing education for bankers and is a member of the Risk Man-
Suzie Naeger
Robin Rees
Anthony Robertson
agement Association. He is active in the First Baptist Church of Ozark where he has taught Sunday School and he participates in financial literacy programs talking to fifth grade students in Ozark. Rushing is presi-dent of the Board for Spring-field Soccer Club. He also volunteers as a coach and chairs the capital improve-ment project for the soccer club, which serves about 400 young people, ages five to 20, in Southwest Missouri.
Keith Willcut Peoples Community Bank Wappapello Keith Willcut has worked in banking since 1999 when he was assistant vice president and loan of-ficer at Sun Security Bank, Ellington. He then worked as branch manager and loan of-ficer at Great Southern Bank, Nixa from 2001 to 2004. He joined First National Bank of Clinton in 2004 and at the age of 22 was named vice president. He also served as commercial loan officer and CRA officer at Clinton. Willcut joined Bank of Billings in 2006 as president, director and CEO. The bank was in the Top 10 for ROA in the state in 2009 and was ranked 12th nationwide in performance in 2010. He joined Peoples Community Bank in 2010 and is presi-dent, director and CEO. In 2011 and 2012, the bank was ranked third in the nation in performance. He has completed the Bar-ret Graduate School of Bank-ing, Memphis, TN, and the Graduate School of Banking in Colorado. Willcut is active in the Palace of Praise Church, the Masonic Lodge and the Eagles Lodge.
Ron Rushing
Keith Willcut
... 2013 Young Bankers Leadership Award
Page 16 The Missouri Banker September 19, 2013
By Chuck Lewis, vice presidentMBA Compliance Services As the finalization of 2014 budgets gets closer, much focus is being directed toward income sources and opportunities. While some third parties look at bank profits in the same vein that Mr. Bumble looked at Oliver Twist when he had the audacity to re-quest “more” gruel, in many cases the well is almost dry and different income av-enues must be explored. This article won’t be viewed as helpful in find-ing new income, but here are a few compliance/regulatory issues to remember while searching for the next profit or income possibility that may help “save” some of those hard-fought-for profits!
• Truth-in-Savings Act (Regulation DD) – this regulation only deals with consumer-held accounts, but it deals with them fairly rigorously. All fees and charges associated with normal use of a consumer account must be disclosed to the accountholder at the time the account is opened. Other “special” situation fees (stop payment, inactivity, overdraft, for example) need to also be furnished to the customer even though these types of fees may never be applicable through normal use of the account. In addition, if any change(s) occur in the initial disclosures which would result in higher charges or more restrictive transactions, then those changes cannot be implemented without a 30-day advance notice to the customer. This advanced notice must detail the new fee/charge/restriction and inform the customer as to the effective date of the change. If an examination determines that a customer or series of customers did not receive the full 30 days before the new fee started, rest assured that reimbursements will be ordered. Remember, this 30-day notice is only applicable to consumer accounts; increases or changes to commercial
or retail accounts are not covered by Regulation DD; BUT, the bank may want to review any information previously furnished to these accountholders to determine if they may involve contractual amendments.
• The Consumer Financial Protection Bureau has been designated as the regulator primarily responsible for determining what is an unfair or deceptive act or practice (UDAP). One other acronym being added as a result of the Dodd-Frank Act is “abusive.” These terms are extremely subjective and will require banks to document why a particular practice shouldn’t be considered unfair, deceptive or abusive to its customers. This fact should be strongly considered when contemplating an increase in a particular account fee or charge. The bank should, at minimum, research/survey the financial institutions in its trade area to determine if its new fee/charge will be the highest in the market. Also, it’s advisable to have some brief research documentation reflecting the relationship between the bank’s actual cost to the new fee/charge. Again, with the subjectivity of UDAP, any potential fee increase should be studied to determine if a particular segment of the bank’s market area will be most likely to be negatively impacted by the fee increase; especially if this segment is made up of elderly, low-income, or certain racial/ethnic or other protected groups.
• New ideas, new products and new variations on existing products are always viewed by the regulators with a somewhat jaundiced eye. An example is the recent “warning” issued by the OCC, Federal Reserve & FDIC pertaining to their concerns with a new product referred to as Deposit Advance. As mentioned in the UDAP section, banks are strongly advised to perform an analysis with any new product or service to confirm if one
particular portion of its trade area will be more negatively impacted by the new product than other segments of its market.
• At a recent national compliance conference, a presenter referenced a four-sectioned pie graph to demonstrate the impact of a new product or fee. The four sections were as follows: 1) Good-for-Bank, Good-for-Customer; 2) Good-for-Bank, Bad-for-Customer; 3) Bad-for-Bank, Bad-for-Customer; and 4) Bad-for-Bank, Good-for-Customer. Obviously, no one wants the #3 piece of the pie – everyone loses with that choice. Of course, the regulators definitely don’t care for piece #2. And since banks are a profit center, option #4 doesn’t really appeal. So in the view of the regulators, the banks and the customers, piece of the pie #1 was the obvious choice; the bank makes money, the customer has a viable account/product option and the regulators go off elsewhere looking for other problems.
Recovery of the costs of providing services and products to our customers is more than justifi-able in the banking industry, as is making a profit on these services and products. However, in this Dodd-Frank world of banking regulatory over-sight, a little documentation and a little “tell-it-all-Brother” disclosures could make a big difference in a bank’s ability to survive future compliance exams and/or customer allegations of unfairness or deceptiveness by the bank. This article is for informational purposes and does not contain or convey legal advice. The information should not be used or relied upon in regard to any particular situation without consul-tation with your bank attorney.
MBA Compliance Services and its Compliance Force offer a variety of programs to aid banks with compliance needs. Services available include on-site education, in-bank training and compliance reviews. For more information, call Carol Barnett at the MBA, 573-636-8151 or email her at [email protected].
‘Please, Sir, may I have some more???’
Chuck Lewis
Discussions on economic condi-tions and how to use that informa-tion to chart the course for banks in the coming years will be part of the MBA 2013 Directors Forum planned for Oct. 31 at Stoney Creek Inn, Columbia. Dr. David Kohl will give an economic update and J. Michael Woody will talk about ways to utilize the information. Denny Deischer, MBA vice
president, Educational Services, will discuss “Directors’ Responsibilities Regarding Implementing Dodd-Frank Act Requirements.” He will talk about the most important elements of the new mortgage rules. An important part of the forum will be the Interactive Regulator Roundtable moderated by Mike Woody. Representatives from the FDIC, OCC, Federal Reserve Banks
of both St. Louis and Kansas City, and the state of Missouri are slated to participate. The forum program gives directors and senior management the oppor-tunity to hear the regulators’ view-points; get an update on economic data and how to use it in banking; and learn more about the new mort-gage rules created by Dodd-Frank. “Community banks are working
through change,” said Mike Woody. “We’ve all survived, and there are new parameters, but there are two constants: our customers love us, and we must maintain personal and insti-tutional credibility with our regula-tors.” The Directors Forum program begins at 9 a.m. with registration opening at 8:30 a.m. The program will adjourn by 4 p.m.
Directors Forum to feature discussion on economy and change
MBAdsUMB Bank (Kansas City, MO) is seeking a Senior Loan Review Officer to assist the Loan Review Manager in determining the credit risk of UMB’s highly complex large-dollar-amount loan portfolio and to make recommendations to senior manage-ment. All loan reviews are conducted at the holding company office in Kansas City, MO. 6+ years experi-ence required. Extensive lending knowledge and well developed credit analysis abilities required. Position is flexible and can be a 24, 32, or 40 hour work week. Apply online at https://careers.umb.com.
Senior Compliance OfficerHawthorn Bank
This position is responsible for providing an indepen-dent assessment of bank compliance issues. This position is responsible for implementing, coordinating and monitoring compliance programs to safeguard against violations of regulations. This position can work out of any Hawthorn Bank location.
Minimum Qualifications• Bachelor’s Degree with a major area of study in
business administration, accounting, finance or related field.
• Possess additional bank specific training and/or education.
• Possess a minimum of six years of compliance experience.
The Bank of Missouri, headquartered in Perryville, MO is seeking an experienced Loan Compliance Officer to ensure all banking centers are adhering to federal and state lending compliance laws and regulations. Position requires reading, interpreting and establishing procedures and policies necessary to meet regulatory requirements. Responsible for all types of loan compliance, monitoring, education and training. Recommend modifications to existing oper-ating control systems which will improve lending op-erations; recommend new systems which will achieve greater efficiency and better control, accountability, cost minimization, quality and customer satisfaction. Requires excellent management and interpersonal communication skills. Bachelor’s or advanced degree and experience in loan compliance related area are required. Excellent benefits and salary commensu-rate with experience. Please send resume to [email protected] or visit website www.bankofmissouri.com and click on Careers.
Equal Opportunity Employer
MIB Banc Services, LLC of Jefferson City, MO is cur-rently seeking a Compliance Audit Specialist. Responsibilities will include providing professional compliance services and strong compliance risk man-agement skills by working closely with clients through audits and reviews. This position also must maintain current awareness of legislative developments and a working knowledge of state and federal laws and regulations as they relate to banking. Candidate must have at least 2 years of regulatory consumer compliance experience. To apply and view full details visit our website at www.mibanc.com and click on Employment.
Regional Vice PresidentWestern Missouri
The Federal Home Loan Bank of Des Moines (FHLB Des Moines) has an opening for a Re-gional Vice President for Western Mis-souri. FHLB Des Moines is a member-owned cooperative comprised of 1,200 commercial bank, credit union, thrift and insurance com-pany members throughout Iowa, Minnesota,
Missouri, North Dakota and South Dakota. FHLB Des Moines provides readily available, low-cost funding and liquidity to its mem-bers in all economic cycles and is one of 12 regional banks in the Federal Home Loan Bank System (FHLBank System).
As a member-owned cooperative, it is im-portant that individuals in this position be able to deliver member value by maintaining strong member relationships and by provid-ing value-added solutions to member needs while also actively recruiting new members. This can be accomplished through the use of bank provided resources to market bank products and services to both members and prospective members. Additionally, indi-viduals in this position will be expected to develop and maintain highly effective busi-ness relationships with regulatory bodies and trade associations.
This position requires a BA or BS in mar-keting, business, finance or related field preferred (relevant experience will be con-sidered in lieu of BA or BS) and 5 plus years of relevant business and/or sales experi-ence. In addition, candidates must be able to demonstrate a strong working knowledge of asset/liability management strategies, financial instruments and capital markets. The individual must reside in the region and have a valid driver’s license and good driv-ing record.
To apply for this position, please fill out an application at http://www.fhlbdm.com/about-fhlb-des-moines/employment-oppor-tunities/
For information about classified advertising in The Missouri Banker, visit the MBA website at www.mobankers.com. Or, call Sue Norfleet at the MBA at 573-636-8151.
On Sept. 12, 2013, the Missouri House and Senate voted to override the Governor’s vetoes on nine non-appro-priations bills and one appropriation bill. One of the overrides is for House Bill 329. This financial services bill will be of particular interest to many of our members. The House sponsor was Rep. Tony Dugger, and it was handled in the Senate by Sen. Mike Cun-ningham. House Bill 329 http://www.house.mo.gov/billsummary.aspx?bill=HB329&year=2013&code=R Funeral Trusts – at Section 208.010 (related to Medicaid law) is amended to allow individuals to estab-lish an “irrevocable personal funeral trust” with any financial institution au-thorized to exercise trust powers. The trust can be established in an amount up to $9,999. This amount can be set aside and protected from Medicaid
spend-down for eligibility require-ments. Personal funeral trusts are an express alternative to contracting with a “pre-need” company under Chapter 436. No “pre-need” contract is re-quired with any cemetery or funeral provider as a condition to establishing a personal funeral trust to fund burial and funeral expenses. Under the bill, upfront fees cannot exceed 10% of the amount deposited to the trust account and administra-tion fees cannot exceed 3% of the trust assets annually. Funeral trusts must be separately accounted but the trust funds can be co-mingled for prudent investment purposes. Any remainder in the trust after funeral and burial expenses are paid, will be paid to the State of Missouri to offset public as-sistance to the settlor (or designated
beneficiary), and after this, the State of Missouri is required to refund the remainder to the settlor’s “successors.” A remainder should probably be ad-dressed in the funeral trust document to guide the state’s disposition of any excess funds that are not subject to the state’s offset. The option to establish a “personal funeral trust” could be a convenient, safe and commission free option for your customers to set aside funds for their final expenses and to preserve these assets from Medicaid spend-down requirements. We are reviewing this new product opportunity with bankers, trust officers and attorneys to consider “simple” form agree-ments and mechanisms to implement the trusts. Funeral directors should be supportive of seeing banks provide this service in your community since
it preserves the funds as an asset and source of payment for funeral and burial expenses. Exam Cycle for Private Trust Companies – Section 361.160 was amended to allow the Division of Fi-nance to extend the examination cycle for 1 or 2 rated “private” trust compa-nies to 36 months. Private trust compa-nies are typically “family offices.” Section 408.140.1(1) was amended for purposes of closed-end consumer loans of 30 days or longer to increase the allowable fee from 5% to 10% (the total $75 dollar cap is retained). HB 329 also duplicated the amend-ments enacted in SB 254 related to de-posit advances; and SB 235 eliminat-ing duplicative HMDA reporting; and changes to SB 100 protecting HSAs and inherited IRAs from attachment.
Supplement to These Laws Affect You 2013 – General Assembly overrides veto of House Bill 329
Page 20 The Missouri Banker September 19, 2013
CONFERENCE AGENDAThursday, October 10 ________________________________________8:00 a.m. Registration & Continental Breakfast9:30 – 9:45 a.m. Call to Order & Welcome9:45 – 10:45 a.m. General Session
Next Generation Leadership: The Power to Lead, Communicate and Build an Engaged WorkforceJodi WalkerSuccess Alliances
Something You Can Bank On: 5 Predictions for the Next Five Years in Retail BankingAlex Sion, PresidentMoven
11:15 a.m. Adjourn
GENERAL INFORMATION
Hotel Information - The conference will be held at Crowne Plaza Kansas City Downtown in Kansas City, Missouri. Rooms will be available at 4 p.m. the day of check-in.
Guests shall make reservations by calling reservations at 888-233-9527 or online by visiting the link on the MBA’s Young Bankers Leadership Conference web page at www.mobankers.com.
Method of Payment _________________________________________ Member Fee ................. $395.00 # ______ $ __________
2013 Young Bankers Leadership Conference Registration FormPlease register the following individual. Please enter the information below EXACTLY as you wish it to appear on your name badge and registration
list. Please copy this form for additional registrations.
Organization Information _____________________________________Bank ____________________________________________________________
