Monday, October 25, 2021

Week of March 29

In This Issue…

Notice for OBA board nominations for upcoming term

TO ALL OBA-MEMBER BANKS: Pursuant to Section 5.4 of the By Laws of the Oklahoma Bankers Association, notice is hereby given of the names of the nominating committees for the six OBA board seats that will nominate a banker from each of those groups to serve on the OBA’s Board of Directors.

Three board members from each of the OBA’s six geographical groups serve staggered three-year terms, with one director representing banks in the lower one-third of deposits in the group; one director representing banks in the middle-third of banks in the group; and one director representing banks in the upper one-third of the banks in the group. This year the nominees are to be selected from banks in the lower one-third of deposits in each OBA group.

Any bank officer of a member bank who is interested in serving on the OBA board should make his or her desire to serve known to any member of the six nominating committees listed below, or to Roger Beverage at the OBA office.

Group One
Don Clark
First State Bank, Anadarko

Matt Jackson
President and CEO
The Bank of the West, Thomas

Sandy Werner
First National Bank & Trust, Elk City

Group Two
David Cook
President and CEO
Bank of Laverne, Laverne

Jay Randels
President and CEO
Community Bank, Alva

Andrea Bendele
Stillwater Market President
Exchange Bank, Stillwater

Group Three
Terri Thompson
President and CEO
American Exchange Bank, Henryetta

Mike Lyles
FNB Coweta, Coweta

Billy Taylor
Armstrong Bank, Muskogee

Group Four
Danny Seibel
President and CEO
The First National Bank of Lindsay, Lindsay

Donald Sherman
McClain Bank, Purcell

Dan Boren
First United Bank, Durant

Group Five
Priscilla Cude
President and CEO
First Bethany Bank & Trust, Bethany

Alicia Wade
Executive Vice President and COO
Valliance Bank, Oklahoma City

Tony Shinn
Market President
Bank of America, Oklahoma City

Group Six
Carl Hudgins
President and CEO
Oklahoma Capital Bank, Tulsa

Ted Cundiff
President and CEO
AVB Bank, Broken Arrow

Dawne Stafford
President and CFO
Security Bank, Tulsa

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President signs PPP extension into law

President Biden signed an extension on Tuesday for the Paycheck Protection Program, and extended the deadline to apply for such a loan to May 31.

The original deadline to apply was March 31, and the law also extends to the authorization of loans to June 30 to give the Small Business Administration time to process applications.

As of March 28, the program has approved more than 8.7 million loans totaling more than $734 billion since it was created last year, according to SBA data. For all 2021 loans by the program, 78.4% are for $50,000 and under, and the average loan is $59,000.

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Effects of declining leverage ratios becoming clear

The pandemic has thrown a monkey wrench into an otherwise smooth-operating banking system. Nevertheless, banks have stepped up – big time – to help their small-business customers, their customer base and the jobs that come with it.

One of the regulatory nightmares caused by this pandemic is the unintended consequences of declining leverage ratios. It’s a hit to all banks’ capital and, particularly, to the Community Bank Leverage Ratio (CBLR) that’s so important to OBA-member banks.

Many banks across the country are struggling as they try to absorb stimulus-induced deposits that are flooding the system. And it’s not just community banks; it’s all banks – small and large alike. Banks are trying to absorb $5.3 Trillion. With a “T.”

Banking 101 tells us that deposits are normally the lifeblood of bank lending. But there’s nothing “normal” about the current banking environment. Most OBA-member banks have invested deposits in safer assets, like Treasuries, rather than loans that support the overall economy. Such investments work to reduce the leverage ratio because they have a zero-risk rating from their federal banking regulators.

Almost a year ago federal banking regulators temporarily eased leverage ratios for both large and small banks. For larger banks, that relief will end tomorrow, March 31, while the CBLR relief will  expire at the end of this year. The question is: what will these changes mean to the economy?

No one knows or, if they do, they’re not saying. Meanwhile, leverage ratios usually cause banks to no longer accept deposits, and we’ve heard stories of OBA-member banks doing just that, especially those with pledging requirements.

All of this is to say that when larger banks confront tomorrow’s deadline, it’s likely to slow the economic recovery exponentially unless federal regulators change their collective mind.

“These are the things I worry about,” said OBA President Roger Beverage. “At some point, like tomorrow, federal banking agencies are going to announce that a more conservative approach to bank regulation is being re-instated. They are likely to conclude that we’ve had enough of the ‘kid gloves’ approach.

“That’s what happened in the mid-‘80’s and I’m betting we’re going to see it again, at least to some extent,” Beverage said. “And that will further exacerbate problems for member banks, their customers and their communities.”

Note: Many thanks to Hu Benton, VP for banking policy, and Hugh Carney  SVP for prudential regulation, both are experts and are valuable resources for banks at the American Bankers Association.

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Bank Exam Prep Center debuts

Last month, we wrote to you about an exciting new resource that has been developed to support our members and the entire banking industry in preparing for regulatory exams. It’s called the Bank Exam Prep Center.

The Center website was launched through a series of national webinars.  We hope that you were able to participate in one of the sessions. If not, you can view the Center via an embedded page on our website by clicking here.

Your OBA has joined other state bankers associations in offering this important resource to our respective members.  We hope you find it to be of value as you prepare for your next exam.

The Bank Exam Prep Center will be updated regularly, with additional relevant regulatory information, so feel free to share this message with anyone in the bank that you believe would benefit from its content. But – In order for the Bank Exam Prep Center to be of the most use for the industry, we need to continue to gather exam data for analysis. This is where we can use your help, please.

If you have had an exam or visitation in the past 12 months and have not completed a post-exam survey, we would ask that you go to and anonymously take the 15-minute Regulatory Feedback Initiative survey. The RFI survey is anonymous and does not ask for any confidential information. The information you provide cannot be traced back to your institution. If you need more information, you’ll likely find it on the Coalition of Bankers Associations website at

There is no cost associated with the new Bank Exam Prep Center.  It is an important resource for preparing for your next exam. However, it will only work to its fullest if we all provide feedback through the anonymous post-exam survey.

As we near the end of this pandemic, we want to make sure that member banks are ready for their exams, and that they are treated fairly for their good-faith efforts, rendered on behalf of their customers during this national crisis.

Thank you for joining us in this critically important effort.  Bank Exam Prep Center resources are available on our website –,  or at  We will update you with additional information as the Bank Exam Prep Center continues to develop over the months to come. 

In the meantime, please contact Roger Beverage ( or Becky Wilkes ( if you have questions or concerns.

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Get your photos in for OBA 2022 Views & Vistas photo 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 has been extended to April 16. All photos submitted will be scored by a panel of judges. The top-scoring photos will be featured in the 2022 Views & Vistas calendar!

Click here for more information and for the registration form.

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OBA welcomes new strategic member

Contact: Morris Weston
7500 Rialto Boulevard, Building 1, Suite 250
Austin TX 78735
Phone: (800) 503 -1450, Cell: (469) 569-1414

Qualtik’s software platform helps CRE loan portfolio managers accelerate and deepen their analysis, stress testing, reporting, and risk management capabilities. Our stress testing tool allows lenders to filter their CRE loan portfolios by location, vintage, loan amount, NAICS code, and more; define their scenarios for interest rate, cap rate, and NOI; and define performance thresholds. Dynamic, interactive reports give lenders insight into individual loans as well as portfolios. All of which lets lenders proactively identify and manage risk.

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OBA education corner …

While you may be searching for some Easter eggs this upcoming weekend, you don’t have to search for these upcoming OBA events! Check them out below.

NOTE: Effective March 16, 2020, and until further notice, TTS (our webinar provider) has extended the OnDemand access period for all ‘Live Plus Five (Days)’ registrants to 60 days (versus five business days). Also, they are waiving the $75 per location fee for additional locations.

  • Overdraft Programs – The Danger Zones, webinar, April 6 — This program is designed to provide an update and the steps needed to complete an overdraft service checkup on your program before examiners arrive.
  • Understanding Commercial Real Estate Loan Documents, webinar, April 6 — Taught at a basic level (for bankers, not lawyers), the instructor will lead participants through all sections of the various required real estate loan documents.
  • Managing a Successful Call Center, webinar, April 7 — This webinar will go over the three key factors that must be present in order to deliver on an exceptional Call Center experience for members, and how to implement them.
  • 2021 Basic Personal & Business Tax Return Analysis, April 8, Tulsa, April 9, Oklahoma City — Attend this proactive seminar and gain an understanding of the often complex and confusing topic of TAXES!
  • FFIEC Information Security Handbook Review, webinar, April 9 — This program will go over governance of the Information Security Program, security operations, recurring requirements listed in the FFIEC Booklet, and more.
  • Seven Habits of Effective Credit Administration, webinar, April 13 — This course is intended to provide guidance on how to develop and maintain a Credit Administration function that will provide guidance to anyone involved in the credit function of the bank and to insure safeguards are in place to manage the bank’s loan portfolio in a safe and sound manner.
  • Opening Minor Accounts, webinar, April 13 — During this program, you will learn how to answer your adult account holder’s questions on how to set up accounts for grandchildren, for college, for other reasons to set up minor accounts.We will review the basic legal ownerships you may offer for your minor customers, talk about how to transition them into adult accounts and look at do’s and don’ts of account card set up for minors.
  • Alert! Revisions to Three Sections of the BSA FFIEC Exam Manual, webinar, April 14 — During this webinar we will cover these revisions and what you need to do and know.
  • Top 25 Safe Deposit Compliance Issues, webinar, April 15 — At this workshop you will receive current information about the top 25 safe deposit compliance issues and an in-depth explanation about how they impact on your financial institution and your safe deposit box renters.
  • Dress Codes and Work Appearance – Spandex is a Privilege Not a Right, webinar, April 16 — This serious subject is presented with humor and down-to-earth examples and advice by an attorney who has helped companies throughout the United States effectively address issues of an ever-changing workplace.
  • 2021 Workshop for Loan Assistants and Loan Processors, April 20-Oklahoma City; April 21-Tulsa — This seminar is designed to increase the lending knowledge and administrative effectiveness of one of the most important positions in a community bank’s lending staff – the loan assistant/loan processor.
  • 2021 Teller Seminars, April 26, Oklahoma City, April 27, Pete’s Place, April 28, Tulsa — The program zeroes in on six modules that remind your tellers of the importance of what they do, how they do it, what they say, and how they deliver customer service. Essential Teller Issues is an information-packed, attention grabbing fast-paced workshop.

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