Week of Feb. 27

From the chairman

By Curtis Davidson
OBA Chairman

If you are still sitting on the fence about attending the ABA Government Relations Summit on March 20-22, let me encourage you to go.

ABA has assembled a top-notch program and the price of admission couldn’t be better. It’s free to all bankers whether or not you are an ABA member.

Here’s the lineup. First up is a dialogue with top regulators. That’s always a good way to get your blood pressure up. Next is my favorite journalist, Chris Wallace. His insight and perspective seem to always be on target.

Then, we hear from the two ranking members of the Senate Banking Committee, Sherrod Brown (D-Ohio) and Mike Crapo (R-Idaho). This is a rare opportunity for you to hear firsthand what it will take to get regulatory reform through the Senate. Immediately after hearing from the senators, we will visit our Oklahoma delegation in their offices.

The next day we hear from the Majority Whip, Rep. Steve Scalise and Chairman of the House Financial Services Committee, Rep. Jeb Hensarling. That’s just the politicians! We will also hear from ABA staff members, social media experts and Paul Mecurio from the Late Night with Stephen Colbert.

Let me repeat the admission price – $0.00. I do suggest you find accommodations this week. The host hotel, Washington Marriott Marquis, is sold out, but ABA is holding rooms at the JW Marriott and the Mayflower at special rates until this Friday. Rooms are still available at the Trump International if you want to splurge.

Without a doubt, changes will occur this year in the banking industry. The question, however, is whether they will be good changes or bad ones. Come and listen for yourself about how these changes might affect your bank and your customers.  Help us assure that we will have good results, not bad ones.

Have a great week!

Curtis Davidson
OBA Chairman

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Examples of regulatory impact on customers needed

OBA President and CEO Roger Beverage has asked member banks to share stories that are not for attribution, but that are nevertheless important about the impact of Dodd-Frank on member banks’ ability to serve and take care of customer needs.  

“Bankers have heard me ask before about the need for specific examples of where banks had to turn away a customer, or refer a customer to another lender because of new regulations and rules,” Beverage said.  “These anecdotes are not going to be shared with the bank’s name tied to them; they’ll be just examples of what’s going on. But they are very important on the Hill.  

“Democrats in particular are circulating the story that ‘banks are lending.’ They are trying to refute the argument that regulatory relief is necessary because banks are profitable. That’s true, of course, but it’s not the point.

“The concern most of us have is that the new rules have made credit unavailable for low- and moderate-income consumers to a much greater extent than before the crisis. We keep hearing about customers going to a FinTech lender because they can’t or simply refuse to jump through all the post-Dodd-Frank rules. That’s what we’re looking for, that and stories about where the customer went to a competitor.

“If you have such stories, please call me or send me an email so that we can be better prepared to address the red herring of continue profitability for banks. These real life examples are what people on the Hill and across Washington, D. C. are demanding.”

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President Trump orders regulatory reform efforts at governmental agencies

On Friday, President Trump issued an executive order requiring all federal agencies to appoint regulatory reform task forces to identify regulations that eliminate jobs or inhibit job creation; are outdated, unnecessary or ineffective; have costs that outweigh their benefits; are inconsistent with regulatory reform initiatives; or derive from since-rescinded executive orders. Initial reports are due within 90 days.

There is a question about whether the federal banking regulatory agencies (FDIC, OCC and Federal Reserve) would fall within the parameters of this order. Since each agency has already said it would make an effort to voluntarily comply with the president’s executive orders to the fullest extent possible.  

In addition, earlier the president directed Steve Mnuchin, his new secretary of the treasury, to review his own agency’s new rules promulgated under Dodd-Frank to determine which ones can be eliminated.  In fact, the president was quoted as saying: “Every regulation should have to pass a simple test: Does it make life better or safer for American workers or consumers?”

When it comes to banking matters, all we can say is “Amen.”

Click here to read the executive order.

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Officer, board succession; nominating committees appointed

The By Laws of the Oklahoma Bankers Association establish the process by which new officers and board members are to be nominated and sent to the general membership for action.  The process begins with notification to the membership about the various committees and this edition of the OBA Update will serve as that notification.

  • For the Office of First Vice Chairman

Pursuant to § 6.3 of the OBA’s By Laws, notice is hereby given of the make-up of the Nominating Committee for the office of First Vice Chairman.  The Immediate Past Chairman – Paul Cornell, President, Citizens Bancshares – serves as Chairman of the Nominating Committee and four (4) Board members appointed by the Chairman and approved by the Board will make up the balance of the Committee.  

At its meeting last week, the OBA Board has approved the following Board members to serve with Paul Cornell on the Nominating Committee:

Kyle Hughbanks – BancCentral, Alva              Stuart Sander – Security State Bank, Cheyenne
hughbanks@bcna.com                                  stuart@ssbcheyenne.com            
Phone: (580) 327-1122                                   Phone:    (580) 497-3354

Debbie Rinehart – Farmers State Bank, Allen            Bryan D. Cain – Security State Bank, Wewoka    
drinehart@fsballen.com                                           bcain@ssbok.com
Phone:  (580) 857-2402                                            Phone:    (405) 257-5411

Any active officer of a member bank or bank holding company is eligible to serve as an officer of the Association.

If you would like to be considered for the vacancy, or if you have someone in mind that should be considered, please call or email any one of the Committee members with your suggestions.  Please do so by March 31, 2017.

  • For Six (6) new members of the Board of Directors

The OBA is divided into Six (6) geographic regions (Northwest, Southwest, Northeast, Southeast, Oklahoma City and Tulsa) and described in Article IV of the OBA By Laws as “Groups.”  Within each of those Groups three (3) Board members are elected each year (for a total of 18 elected banker Board members).  

OBA Board members are selected from three categories:  the smallest 1/3 of the banks within each Group, the middle-third of the banks within each Group and largest 1/3 of the banks within each Group.

This year Board members to be elected will represent the “large” bank members – banks in the highest 1/3 of the banks by deposits within each Group.  Each of the current Board members from a particular Group make up the nominating committee for that Board seat, and the outgoing Board member serves as Chairman.

Pursuant to Article 5.4 of the OBA’s By Laws, notice is hereby given that the following Board Nominating Committees for 2017, including their contact information, are as follows:

GROUP ONE: [Southwest Quadrant of Oklahoma]

Mark Russell – Great Plains National Bank, Elk City, Chairman
Phone:    (580) 225-2265

Brad Giblet – The First State Bank, Ryan                  Stuart Sander – Security State Bank, Cheyenne
bradg@hotmail.com                                              stuart@ssbcheyenne.com
Phone:    (580) 757-2221                                        Phone:    (580) 497-3354

GROUP TWO: [Northwest Quadrant of Oklahoma]

Kyle Hughbanks – BancCentral, N.A., Alva, Chairman
Phone:    (580) 327-1122
Kent Latta – Oklahoma State Bank, Buffalo        L. Bruce Boehs, Farmers & Merchants
klatta@osbbuffalo.com                                            Bank, Fairview    
Phone:    (580) 735-2545                                         bruce.b@fairviewbank.com
                                                                                       Phone:  (580) 227-3773
GROUP THREE    [Northeast Quadrant of Oklahoma]
Kyle Powell – First National Bank, Okmulgee, Chairman
Phone:    (918) 756-8440

Michael Brown – Lakeside Bank of Salina              Robert Jennings – Peoples National Bank, Checotah
lakesidebank@sstelco.com                                rjennings@peoplesok.com
Phone:    (918) 434-5394                                      Phone:    (918) 473-2237

GROUP FOUR    [Southeast Quadrant of Oklahoma]
Jim Hamby – Vision Bank, N.A., Ada, Chairman
Phone:      (580) 332-5132

Debbie Rinehart – Farmers State Bank, Allen              Bryan Cain – Security State Bank, Wewoka    
drinehart@fsballen.com                                             bcain@ssbok.com
Phone:  (580) 857-2402                                               Phone:    (405) 257-5411

GROUP FIVE    [Oklahoma City MSA]                             
Doug Fuller – Quail Creek Bank, N.A., OKC, Chairman
Phone:    (405) 755-1000
Jane Haskin – First Bethany Bank & Trust                      Joey Root – First Liberty Bank, OKC    
jhaskin@firstbethany.com                                           jroot@myfirstliberty.com
Phone:  (405) 789-1110                                                Phone:     (405) 608-4500

GROUP SIX     [Tulsa MSA]

Hal Brown – Bank of Oklahoma, N.A., Chairman
Phone:    (405) 272-2408
David Johnson – Peoples Bank, Tulsa                          Mark Poole – First National Bank, Broken Arrow
david@peoplesbanktulsa.com                            mpoole@fnbba.com
Phone:    (918) 583-9800                                       Phone:    (918) 251-5371

Persons eligible to serve as a member of the OBA’s Board of Directors must be an active officer of a member bank or a branch of that bank.  

If you would like to be considered for the Board vacancy in your bank’s Group and are in the top 1/3 of banks within your Group, or if you have someone in mind that should be considered for the Board, please call or email any one of the Group Committee members with your suggestions.  Please do so by March 31, 2017.

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Submit your photos for OBA calendar contest!

The Oklahoma Bankers Association is proud to offer again the customized calendar, “Oklahoma Views & Vistas” from photographs of Oklahoma submitted by Oklahoma bankers and their family members and board of directors and their family members.

These calendars will be sold exclusively to banks across the state of Oklahoma for bankers to give to their customers to enjoy all year long!

If you or a family member is an amateur photographer and would like the opportunity to have your creativity displayed in homes and businesses across Oklahoma, the OBA has a great opportunity for you! So send us your photos of farms, barns, agricultural activities, historical Oklahoma locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers or summer fun; any photo that shows the history and beauty of the great state of Oklahoma.

The deadline to submit photos is March 24. All photos submitted will be scored by a panel of judges. The top scoring photos will be featured in the 2018 Views & Vistas calendar! Click here for more information on how to enter and download the form.

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OBA education corner …

Live programs and webinars are going full speed ahead in the education department! Check out the following:

  • UCC Rules: Secured Transactions, March 3, webinar — Leave with an understanding of how to document, close and record secured transactions covered by Revised Article 9 of the UCC.
  • Commercial Construction Lending, March 6, webinar — Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending.
  • Health Savings Accounts, March 7, webinar — How do we strike that perfect balance between customer responsibility and custodial responsibility on Health Savings Accounts, and what kind of firewalls can we put in place to prevent constant monitoring?
  • Compliance 101: Rules for Consumer & Mortgage Lenders, March 7, webinar — This session will cover key lending consumer compliance regulations (highlights of the Equal Credit Opportunity Act, HMDA, Flood, RESPA, Truth in Lending, and Fair Credit Reporting).
  • Vital Check and Deposit Issues, March 8, webinar — Every single day the frontline handles routine matters that can cost your financial institution thousands of dollars if there is an error.
  • Best-Ever Compliance Checklists for Commercial Loans, March 8, webinar — This colorful checklist, patterned after the popular Best-Ever Consumer Checklists, will guide bankers through those traps and ensure compliance.
  • Best-Ever Compliance Checklists for Commercial Loans, March 8, webinar — This colorful checklist, patterned after the popular Best-Ever Consumer Checklists, will guide bankers through those traps and ensure compliance.
  • Legal Liabilities When Check Fraud Occurs, March 9, webinar — Check fraud losses are estimated to exceed $18 billion each year.
  • Advanced Tax Return Analysis for the Banker, March 13, webinar — Learn about several advanced tax return concepts and related analyses to help you work more effectively with your bank’s business customers.
  • Critical Issues on Certificates of Deposit (CDs), March 14, webinar — As we transition from the traditional Certificates that are negotiable to the signature card contract certificates of deposit, what rules apply and what do not anymore?
  • Call Report Seminar, March 23, Oklahoma City — This seminar will help preparers and reviewers understand the preparation process and eliminate errors.
  • Security Seminar, March 30, Oklahoma City — This session will analyze how the criminal element is incorporating the ever expanding stable of technology tools to exploit the weaknesses in bank operational processes.

Finally, make sure to save the date for the 2017 Community Bankers Leadership & Senior Management Conference, set this year for April 2-4 in San Diego, California. If you work for a community bank or if you’re looking for ways to improve your bank’s performance, then this event is for you! Click here for more information.