KENTUCKY BANKER May 2014
Responsive. Innovative. Flexible.
There’s good reason why our services directly support the on-going success of the banking communities we serve... The community bank landscape is more complex than ever before. This complexity intensifies our on-going commitment to bringing relevant, logical and streamlined solutions to keep you competitive. Our first, and most important, step is simple.
We listen.
Then we research. We respond. We innovate. And, we customize a program for our customers. Our correspondent banking services are designed for you, for this marketplace, and for your profitability.
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For more information on any of our services please contact a member of the Correspondent Banking Team at 800-248-3229. John Clark, jclark@bbky.com Lynn Ellis, lellis@bbky.com Ralph Ising, rising@bbky.com Scott Jones, sjones@bbky.com Van Davidson, vdavidson@bbky.com
800.248.3229 | 502.695.3000 | www.bbky.com BBKY-7273 KBA Advertisement 2014-final.indd 1
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CONTACTS BOARD OF DIRECTORS Mr. William Alverson Traditional Bank Mr. James W. Beach Peoples Bank & Trust Company Owenton Mr. J. Wade Berry Farmer’s Bank & Trust Company Marion Mr.William F. Brashear, II Hyden Citizens Bank Mr. Neil S. Bryan The Farmers Bank of Milton Mr. G. Anthony Busseni Century Bank of Kentucky, Inc. Ms. Katherine Reese Capps First State Financial, Inc.
Mr. David P. Heintzman Stock Yards Bank & Trust Company
Mr. Stephen Miller Peoples Bank of Kentucky, Inc.
Ms. Lanie W. Gardner First National Bank of Muhlenberg county
Mr. Louis Prichard Kentucky Bank
Mr. Don Jennings First federal Savings Bank of Frankfort Ms. Elizabeth Griffin McCoy Planters Bank, Inc. Mr. Michael H. Mercer First security Bank of Kentucky Mr. Glenn Meyers Kentucky Federal Savings & Loan Association
Cover Photo taken by Melissa Sparks “Balloons At Sunset”
for the Scenes of Kentucky Photo Contest
Mr. Thomas J. Smith, III American Bank & Trust Company, Inc. Mr. H. Lytle Thomas Heritage Bank Mr. Frank B. Wilson Wilson & Muir Bank & Trust company Mr. Greg A. Wilson The First Commonwealth Bank
KBA STAFF Ballard W. Cassady Jr. bcassady@kybanks.com President & CEO Debra K. Stamper dstamper@kybanks.com EVP / General Counsel / Director of Compliance Paula B. Cravens Sturgeon pcravens@kybanks.com Director of Education Solutions Selina O. Parrish sparrish@kybanks.com Director of Vendor Solutions Matthew E. Vance mvance@kybanks.com Chief Financial Officer Miriam Cole mcole@kybanks.com Executive Assistant Paula Cross pcross@kybanks.com Education Services Coordinator Jamie Hampton jhampton@kybanks.com Education Services Coordinator Natalie Kaelin nkaelin@kybanks.com Assistant General Counsel
Chris Kelso ckelso@kybanks.com Manager of AIB Education Solutions Michelle Madison mmadison@kybanks.com IT Manager Lanie Minton lminton@kybanks.com Administrative Assistant Tammy Nichols tnichols@kybanks.com Convention & Membership Services Coordinator Katie Rajchel krajchel@kybanks.com Staff Accountant Yvonne Savage ysavage@kybanks.com PAC Services Coordinator Angie White awhite@kybanks.com Communications Coordinator Steve Whitlow swhitlow@kybanks.com Systems Engineer
Consultants
John P. Cooper jcooper@kybanks.com Governmental Affairs Consultant
KBA Insurance Solutions
Chuck Maggard cmaggard@kybanks.com President & CEO Brandon Maggard bmaggard@kybanks.com Account Representative Audrey Whitaker awhitaker@kybanks.com Insurance Services Coordinator
Lane Hettich lhettich@kybanks.com Service Manager Donna McCartin dmccartin@kybanks.com Account Representative
HOPE of Kentucky Billie Wade bwade@kybanks.com Executive Director
KBA Benefit Solutions
Lisa Mattingly lmattingly@kybanks.com Director of Sales & Service
CONTRIBUTING EDITORS Lane Hettich lhettich@kybanks.com
Angie White Awhite@Kybanks.com
CONTACT 600 West Main Street Suite 400 Louisville, KY 40202
Phone: 502-582-2453 Fax: 502-584-6390 www.kybanks.com
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CHAIRMAN’S CORNER As a UK fan I loved the NCAA tournament this year. Following a totally unexpected string of NCAA tournament victories the ultimate prize was won by a team the University of Louisville beat three times. What a surprise to even be in the final game of the season given we were unranked at season’s end. It made me think of sports as an analogy for life.
Neil Bryan KBA Chairman
Just as sports helps teach the athletes lessons about life it also provides us a few pointers as well. At the start of the SEC tournament the UK team was much maligned. None of the “experts” expected much out of them in the NCAA playoffs. My personal thought was that this team would give a new meaning to “one and done.” They would play one game against Kansas State and be done! Much to my delight I was proven wrong. Why? They believed in themselves, corrected their mistakes, and worked together as a team. What are the lessons for us to learn from this turn of events? We need to remember when it appears everyone has given up on you that is the time you need to believe in yourself. Right now community banks have a lot of naysayers. A significant group of people think we will not survive in today’s business and regulatory environment. The only thing I see making that come true would be a lack of confidence by bank boards and senior management. The next point is that confidence is required but talent comes into play, too. Just as in basketball, banking is a team sport. You can be the best individual in the world but you will ultimately win or lose based on the ability of the people with whom you surround yourself. We should actively embrace the special qualities others possess. Hiring clones of ourselves is not the goal. Different positions require unique skill sets. We need to actively and intention-
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ally develop or recruit staff that strengthens the whole organization. You have to be willing to make mistakes but you cannot let them define you when they occur. None of us are perfect. We strive to attain as much perfection as possible. Failing to acknowledge mistakes makes us vulnerable. Ignoring the problem does not make it go away. Learning to not repeat the error improves our performance. The initial mistake is a teaching moment waiting to happen. As with most things in life, the quicker it is corrected the easier it is to fix. Somebody has to be the leader. Lack of effective leadership at key moments is a prescription for failure. The ball needs to be in the right man’s hands at the right time to win ball games. Somebody has to make sure that happens consistently or you lose. Senior management, along with the bank board, needs to evaluate the talent at your disposal. You need to insure that the right person is in the right job. That leads to tough decisions. Your best candidate for advancement may not be your most senior applicant. Sometimes freshmen are your best players! You have to “call the right play” to get the job in the hands of someone who can win the game. Changing the outcome requires perseverance and hard work!! Nobody promises it will be easy to excel. Without the work ethic all you have is unrealized potential. You have to be coachable. You can identify your mistakes but the only way to correct them is to take personal ownership of your shortcomings. Learning how to mitigate your weaknesses is how you improve! Learn your own capabilities. No one is good at everything! You have to know when to shoot
and when to pass. An honest self assessment is a key to being a top performer. Part of good management is to know when to keep the task as opposed to delegation of the job to a more capable co-worker. The little things matter. The easiest shot on the basketball court is a free throw. You are unguarded with plenty of time to take the shot. Despite that fact, both the University of Kentucky and the University of Louisville lost key games (including the National Championship) because they could not do that simple thing well. The small stuff does matter. Attention to detail is important. Finally, experience does count for something. No matter how much ability you possess learning to use it optimally takes time. Judgment is enhanced by learning from those aforementioned mistakes. Time provides a prism through which to view present circumstances. It helps to break complexities into simpler component parts. At some point those hard knocks you absorb over time prepare you for the challenges to come. Ultimately this pays off in a better team, a better bank, and a better community. The game of basketball, just like the game of life, is governed by rules. The players have to adapt to the rule changes each year. We are being inundated with rule changes. To not foul out in order to stay in the game is more difficult than ever. We have to be adaptable, resilient, proactive, and maybe just a little bit aggressive to play in today’s game. Thankfully, we play for great teams that compete every year at a very high level of excellence. We can be proud of basketball in our state. We can be proud to say we are members of the Kentucky Bankers Association made up of a group of top banking teams that compares favorably with banks anywhere in the United States.
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STRAIGHT TALK A Steep Price for the American Dream Do you ever wonder how a historical event will be recorded for future generations so they can learn from and, hopefully, avoid the same misguided outcome as the previous generation? In the history textbooks of our grandchildren there may be a topic on the ‘former’ American middle class. An excerpt might read: “Once the majority, the middle class proved an easy target for excessive taxes to offset the drain from programs like welfare and Medicaid. To bear the brunt of taxation, many Americans began to cut out the “perks” which initially identified their class. A middle class family in the early 50’s had two cars, a single income, and normally took a yearly vacation within driving distance. Today’s middle class does well to stay afloat with their mortgage, insurance, and food costs.” It’s a bleak prediction, but one that is gaining momentum every day. Political economist George Friedman predicted the shrinking middle class, and I hope his estimations prove invalid. The logical side of me can’t help but see the writing on the wall. This shift in class size directly impacts our community banks. Those accounts are the ones that keep our doors open and our balance sheets filled. These are the payers who, for the most part, pay on time and continue to use the bank after their first loan transaction. If this customer base is strapped for cash, and continues to struggle, our banks will struggle. The economic strangulation of our middle class occurred unnoticed, for the most part, since we assumed that our incomes would increase just as they did for parents and grandparents. Our country was built around the principle of social mobility and it only makes sense to count that chicken before it hatches. Such is not the case as of 2000, with high earning corporate jobs eliminated due to increased technical efficiencies and corporate restructuring to “cut the fat” and streamline processes. Lawrence Katz, Harvard Economist, found that even though economic growth in the U.S. continues to be stronger than other countries, a small percentage of U.S. households actually benefit from it. “The idea that the median American has so much more income than the middle class in all other parts of the world is not true these days...In 1960, we were massively richer than anyone else. In 1980, we were richer. In the 1990’s, we were still richer. That is no longer the case,” said Katz. Fewer high paying jobs means fewer opportunities to advance (which means you are less likely to pay student debt, pursue entrepreneurial ventures, and take risks). A growing number of people earning less than their equals in other countries does not bode well for the U.S. economically speaking. Friedman said our society understands there are gaps in wealth from class to class, but the assumption was if you put in enough hours, you could make a difference in your pocketbook. “It was always accepted that there would be substantial differences in wages and wealth… progress was in some ways driven by a desire to emulate the wealthy. There was also the expectation that while others received far more, the entire wealth structure would rise in tandem (the old rising tide raises all boats assumption). ….What we are facing now is a structural shift, in which the middle class’ center, not because of laziness or stupidity, is shifting downward in terms of standard of living. It is a structural shift that is rooted in social change (the breakdown of the conventional family) and economic change (the decline of traditional corporations and the creation of corporate agility that places individual workers at a massive disadvantage).” Middle class citizens are the recipients of ALL the tax increases. The poor don’t pay and the wealthy have ways of avoiding. Let me fill you in on a little secret….every time a politician says
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STRAIGHT TALK
he is trying to help the middle class he is lying. Many of us grew up in middle class families. We were ingrained with the idea that a balance of education, hard work, and persistence cultivated success. The persistent decline in the middle class’ standard of living not only reshapes our communities, it reshapes our country. How is it possible to continue the Horatio Alger “American Dream” if social mobility is no longer a possibility for nearly two-thirds of the population? The median household income of Americans in 2011 was $49,103. Adjusted for inflation, the median income now is just below what it was in 1989, and is $4,000 less than it was in 2000 (Friedman). It doesn’t take a genius to tell you that standing still, albeit moving down the scale in 25 years, is not a good thing. I try to press a solution at the end of my soapbox, really drive home my idea for how to deal with the problem in real life terms. I’m afraid this one’s much larger, and requires a more complex series of events to bring about a real change in our future or we can start with a flat tax, say 25% across the board, and follow that with a hard look at fraud in the welfare system (estimated savings in the billions). Next remove the overregulation of Corporate America so they can put citizens back to work and then start an infrastructure program to repair our roads, bridges, and telecommunications. That should get everyone back to work and not paying everything they make to the government to support all the fraud in the welfare system. But what do I know? I’m just am ‘ole country boy trying to feed my kids and keep a roof over m y head.
Friedman, Andrew. “The Crisis of the Middle Class and American Power.” Geopolitical Weekly. 31 December 2013. www.stratfor.com/ weekly/crisis-middle-class-and-american-power. 20 April 2014. Leonhardt, David and Quealy, Kevin. “American Middle Class No Longer World’s Richest.” New York Times. 22 April 2014. http://www. dallasnews.com/news/local-news/20140422-american-middle-class-no-longer-worlds-richest. 28 April 2014.
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MY TWO CENTS PLUS SOME The Difference between Dormant and Escheatable I get asked frequently about dormancy and when bank accounts become dormant. The use of the word “dormant” raises an immediate red flag, because dormancy can be used for two purposes. The first purpose is determined by the bank for triggering the imposition of inactivity fees. The second is a statutorily assigned AND defined period of time determined by statute for the purpose of escheatment to the state. The contact with your customer during each of these time considerations can vary greatly. For purposes of this article, I will call the bank’s period “inactivity” and the escheat period “dormancy.” In the case of the bank’s inactivity period, the account terms should explain clearly when an account is considered inactive (that should be time period and activity lacking) and the penalty for such inactivity. For instance, your checking accounts may provide for a monthly or annual inactivity fee of a set dollar amount to be charged periodically after no deposits and/ or withdrawals have been made for a certain period of time. (The specifics can vary from bank to bank and even between different kinds of accounts.) Inactivity is not necessarily corrected by regular activity of the customer in a different account with the same bank (unless allowed by the bank). The customer can correct this inactivity by executing a transaction, as required by the account terms, or the customer can allow the account to remain dormant and incur the disclosed charges until the property becomes May 2014 | 8
escheatable. Escheatment, on the other hand, is a statutory concept (KRS Chapter 393). The public policy behind it is that unclaimed property (after a specific and reasonably lengthy period of time) should “escheat” to the state for public use. However, the proper owner has the right to follow a specified procedure to regain the value of that property from the state even after escheatment. Unlike in the case of incurring inactivity fees, as described above, any contact between the customer and the bank (including contact that has nothing to do with transactions in the specified account) will reset the necessary period of dormancy. That is because of the public policy of personal interest in property—the state has no right to take control over the property until it appears to be truly abandoned. The right to recover the property after it has been escheated to the state is designed to differentiate between abandoned and forgotten property. Kentucky’s legislature worked diligently a few years ago to strike the proper balance between escheatment and personal property rights. As a result, we created this checklist of procedures to assist you with compliance: 1. Identify all items or accounts (other than Travelers’ checks which have a 7 year escheat period) that do not reflect transactions or communications for 3 years. Transactions are considered, by statute, to have occurred if: a) the account holder has com-
municated in writing or otherwise (with a memo to the file if the communication is not in writing) about the account or item; b) the account has been credited with interest; c) the account had a transfer or disposition noted in the bank records; or d) the account has increased or decreased in amount. 2. From the population identified in paragraph (1) above, remove those that have had regularly mailed, annually or more frequently, statements from the bank, EXCEPT DO NOT REMOVE THOSE WHOSE MAILINGS ARE RETURNED by the USPS marked undeliverable. These mailed statements would include any mailings sent to a category of customers such as misc-1099’s, quarterly interest statements, checking account monthly statements, etc. 3. From the remaining population identified in paragraph (1) and culled in paragraph (2) you may contact remaining customers, if you choose, by telephone or in person and prepare a contemporaneous memo of their remarks regarding the account. This memo should be dated, signed, and include as many details as possible, and then placed in file. The dormant accounts or items of customers that you actually reach through this contact can be removed from the population identified in paragraphs (1) and (2). 4. From the population remaining after the steps in paragraphs (1), (2) and (3) identify each account or item with a value of $100 or less. The owners of these items do
not have to be contacted, although you may do so as a courtesy if you like. If you do contact these customers, treat them the same as in paragraph (3). 5. File your November 1 report. The report will include those items remaining after following the steps contained in paragraphs (1), (2), (3) and (4). Items or accounts that are less than $100, and identified as escheatable under this process (no contact or activity), will be reported in the aggregate. Items and accounts valuing $100 or more must be itemized. Non-interest bearing escheat-
able property will be tendered to the State with the report. Interest bearing property will be maintained in an interest bearing escrow account for an additional 10 years. I recommend that a separate escrow account be set up for each year’s report in order to reduce record-keeping and accounting problems. THE BANK MAY NOT CHARGE ANY INACTIVITY FEES TO ACCOUNTS WHICH ARE ESCHEATABLE. By following the steps above, your bank should have very few accounts subject to escheat.
Additionally, the statute requires that cashier’s checks are the property of the payee, not the purchaser. However, depending on the nature or amount of the check, or your relationship to the purchasing customer, you may want to notify them as a courtesy. Hopefully this will help you reduce your escheatable property. Debra Stamper dstamper@kybanks.com
COMPLIANCE CORNER Q: When does the Kentucky Usury Statute apply? A: In general, the usury statute does not apply to mortgages, per federal law. Pursuant to state law, Kentucky’s Usury statute also does not apply to commercial loans, nor to consumer loans over $15,000. Further, although Usury in Kentucky applies to consumer loans over $15,000, banks, under the “Most Favored Lender” doctrine, are allowed to lend under the statutes that they determine are the most favorable for any lender doing business in its state. The vast majority, but not all banks, still consider and lend under the credit union statutes. Those statutes provide for reasonable charges/fees. Reasonable is not defined. A regulator will usually apply the smell test—that is, is it so out of place in the market that it is not reasonable.
Information courtesy Natalie Kaelin, KBA Assistant General Counsel. If you have a nagging compliance issue that fellow bankers may face, send Natalie an email. nkaelin@kybanks.com
Experience is one thing you can’t get for nothing.” – Oscar Wilde
This means that the usury statute would not apply to the bank if it chooses the credit union statute. If the bank chooses to operate under the Kentucky bank usury law, it would have to abide by the usury statute. In order to operate under the credit union statute, the bank must show that the Board chose to operate under that statute, i.e. board minutes, policy management minutes, etc. Below are links to the relevant Kentucky statutes. Kentucky Usury Law: http://www.lrc.ky.gov/KRS/360-00/ CHAPTER.HTM Most Favored Lender: http://www.lrc.ky.gov/KRS/28603/214.PDF Kentucky Credit Union Chapter: http://www.lrc.ky.gov/ KRS/286-06/CHAPTER.HTM
Well-designed and effective internal controls help community banks successfully manage risks in today’s ever-changing regulatory environment. Choose CRI, where our community bank risk management experience is your checkmate. banks@CRIcpa.com CRIcpa.com | blog.CRIcpa.com INTERNAL AUDIT | EXTERNAL AUDIT | TAX | REGULATORY COMPLIANCE | LOAN REVIEW | IT SERVICES
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INFORMATION TECHNOLOGY AND THE REGULATORY ENVIRONMENT The Federal Financial Institutions Examination Council (FFIEC) has developed the FFIEC IT InfoBase, which provides procedural guidance for supervising technology-related banking activities. The IT InfoBase handbooks and various bulletins assist financial institutions in managing adequate risk governance of information technology. The increased focus on IT related risks seen in the regulatory environment resulted in the Federal Deposit Insurance Corporation (FDIC) publishing a Directors’ College Video on Information Technology. The video helps bank directors develop awareness of effective risk management practices around information technology. The InfoBase and additional guidance enables financial institutions to establish an IT governance and oversight mechanism that is instrumental in managing risk in an ever-changing environment. For any significant IT threat, or new product/service, four consistent action items are needed: • Risk assessments • Policies and procedures • Audit programs • Board reporting Bank Directors’ should ensure that several compensating controls are developed to manage IT risk factors. The top level controls start with establishing an IT governance structure, which begins with the Board of Directors and Board appointed IT and Audit Committees. To ensure consistent direction and sufficient management skills and resources throughout the organization, the top level Board and committees should approve a strategic plan that includes IT and related areas. Risk Assessments A formally documented risk assessment for all key areas and information assets is essential to assess the threats to the environment. Based on the bank’s acceptable risk appetite, a formal risk assessment also identifies the necessary mitigating controls to protect the availability, accessibility, and confidentiality of customer data and company assets. Policies & Procedures Based on the risk assessment, important compensating controls should begin with a formally established and Board approved information security program, as outlined by the Interagency Security Guidelines developed to implement the Gramm-Leach-Bliley Act (GLBA). An institution’s information security program will contain various policies, procedures and general IT controls for managing May 2014 | 10
IT risks. These should include vendor management programs, incident response plans, acquisition and development standards, configuration management standards and patch management programs, and business continuity programs. To reduce the risk of account takeover and online fraud, wire transfer and Automated Clearing House policies and identity theft prevention programs are also necessary. Audit Programs To proactively monitor IT risks, it is also important to ensure an adequate IT audit program is also in place. The IT audit program should include reviews of IT-related policies and standards, IT general controls reviews, internal and external vulnerability assessments, and penetration tests. The frequency and scope of internal and external audits should be consistent with the bank’s risk assessment, and should be conducted annually, if not more often. Board Reporting The Board must receive annual information security program, and identity theft prevention program, reports to adequately fulfill the Board’s oversight requirements and ensure that bank management is properly overseeing risk as outlined in the Interagency Security Guidelines. It is also important to monitor IT audit findings and regulatory exceptions for appropriate and timely resolution. An audit and regulatory exception tracking tool is recommended to ensure that exceptions receive proper and timely attention, and are regularly reported to the board to support proper governance.
MCM will be happy to assist in the evaluation of information security programs and other IT general control reviews. Contact MCM’s Financial Institution Services Team for more information. Michele Welscher, CPA/CITP, CIA, CISA Michele.Welscher@mcmcpa.com, 502.882.4484 Rick Taylor, CISA Rick.Taylor@mcmcpa.com, 502.882.4495
CSI Secure Connect and CSI WatchDOG Social Compliance Solution Endorsed by the KBA The KBA endorses two innovative technology solutions provided through Computer Services, Inc. (CSI). CSI serves financial institutions as a trusted technology partner that understands your needs and delivers solutions that empower KBA members to be more competitive, compliant and profitable when utilizing CSI Secure Connect and CSI WatchDOG Social Compliance.
CSI Secure Connect provides dynamic tools to bankers that increase efficiency and ensure the secure delivery of confidential documents. Financial institutions nationwide rely on CSI Secure Connect as a corporate communications tool for boards of directors, employees, loan committees and other audiences. The solution allows institutions to enhance productivity and reduce operational costs. CSI Secure Connect gives directors secure access to board materials and other confidential information from the convenience of their homes, offices or tablets. It sim-
plifies the process of preparing board materials and makes them available anytime and anywhere they are needed. Current and archived materials are available and include online votes, collaboration and more. This functionality also makes CSI Secure Connect a valuable resource for loan committees, compliance teams and other groups. Additionally, as an employee intranet, CSI Secure Connect combines a series of powerful communication tools and productivity applications into a single portal. This includes time clock, vacation manager, e-forms, policy manager, task manager, remote access and more. CSI Secure Connect requires no additional hardware, software or staff to maintain and little end-user training. It provides robust security that exceeds industry-defined security standards. The solution also includes access to a free app in the Apple App Store, improving remote access to confidential documents.
tion's risk assessment strategy and the FFIEC's guidance on social media. WatchDOG Social Compliance offers such helpful tools as the ability to archive all posts for required time frames as well as to establish an approval process for all posts. It also allows banks to conduct reputation analysis and evaluate their competitive landscape. By leveraging WatchDOG Social Compliance, banks gain use of a robust suite of tools that give them the advantage of being both active and compliant on social media. For more information on how your bank can take advantage of these solutions, contact Selina Parrish via email at sparrish@kybanks.com or by phone at (502) 736-1282.
CSI WatchDOG Social Compliance provides KBA members with tools you need to participate in and monitor social media. With more conversations regarding financial services occurring in the public domain, the solution helps ensure compliance with both the instituMay 2014 | 11
Congratulations to our 2014 class of Emerging Leaders! Mr. Justin Augsback Heritage Bank (No. KY) Ms. Melissa Banta Citizens Union Bank Mr. Jamie McCune Home Federal Bank Mr. Max Mitchell 1st Trust Bank
Most leaders in banking understand ‘Service Organizational Controls (SOC) 1’ as it relates to financial reporting. What about SOC 2 specifically designed for IT managed services, and many other technology and cloud-computing based businesses who support banks? When considering IT services partners, ask about their SOC 2 status. Some firms boast SOC compliance but merely outsource their responsibility to a 3rd party data center. NetGain Technologies holds itself to a higher standard. Region-leading banks and financial institutions currently call NetGain Technologies to solve their IT service and solution challenges. Ask to see our SOC 2 certificate. Email bankonit@netgainit.com for more information.
Ms. Jona Lee Moore United Community Bank of West Kentucky Mr. Jarrod Orr River City Bank
844-77-SMART
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Mr. Thomas Richards Owingsville Banking Company
Recipe for a Successful Conference By Thomas Richards, Owingsville Deposit Bank I’ve recently been experimenting with cooking. I used to find the act of cooking tedious, messy, and frankly a lot of work, but I’m beginning to appreciate the fun of combining various ingredients, following (and sometimes modifying) instructions, and coming up with a delicious meal that is more than the sum of its parts. I guess that’s why cooking came to mind when I sat down to write this article about my experience at the 2014 KBA Spring Conference. If I was to create a recipe for a successful conference I would recommend 1 part knowledge, 1 part networking, and 1 part fun. Combine these ingredients, bake for a couple of days at 70º (a comfortable room is key), and voila, there you have it! This year’s Spring Conference was definitely a success, thanks to each of these three ingredients. I’ll start with the driest, albeit important, ingredient: knowledge. I found all of the speakers engaging, and their topics pertinent to the issues our industry faces. Risk was the major theme of these talks, and each major risk area of the bank was covered. Credit risk, interest rate risk, liquidity risk, market risk, and compliance risk were all discussed. I was especially interested in the interest rate risk (“IRR”) presentation, seeing as all of us find ourselves in an unprecedented interest rate environment that will certainly change in the not too distant future. I was reminded of the importance of assumptions in IRR models, and how our assumptions are likely to be wrong. Therefore, we cannot forget that the fancy reports these models generate are not gospel. They must always be viewed with a grain of salt, and used for what they are, best guesses. Now I don’t want to mislead anyone; not all of the presentations were serious in nature. My favorite “educa-
tional” moment was seeing Mr. Louis Prichard ride off stage on a razor scooter! Thanks for being such a good sport. The second ingredient in a successful conference is networking. I didn’t mention this earlier, but I am a part of the 2014 Emerging Leaders Group. The Spring Conference was a great setting to get to know my fellow Emerging Leaders, other bankers from across the state, and product vendors. The Emerging Leaders had a delicious dinner on Sunday night. We talked about our banks, our jobs, and our families; I was amazed at the diversity present in our group. We have lenders, auditors, human resource managers, and everything in between. It’s the different perspectives of the industry that will certainly make for a richer experience for all of us in the Emerging Leaders Group.
entertained by Steve Ford, the son of President Gerald R. Ford, who was our speaker at Monday night’s dinner. Mr. Ford told fascinating and humorous stories about his family’s time in the White House, giving us all a unique view into the life of a First Family. Well that’s it. Sounds like a simple enough recipe, right? Although there aren’t many ingredients, it takes hard work to combine them correctly, and for that I would like to thank the KBA staff for putting on a great Spring Conference. I hope everyone who attended found it as informative and fun as I did, and I look forward to coming back next year.
Outside of the Emerging Leaders, I was able to network with numerous bankers from across the state. It was a valuable experience to discuss regulatory and business issues with bankers in markets outside of my own. These discussions broadened my understanding of the industry, and helped me to stay abreast of current “hot topics.” Also, I don’t want to forget the vendors that helped sponsor the conference. I met with several of these vendors, including a financial literacy company and a retail brokerage company. Having these vendors present exposes those of us in attendance to new technologies and services that can be used to better serve our customers. The last, but not least, important ingredient in a successful conference is fun and entertainment. Conferences can be long and tiring, so it’s nice to be able to relax and enjoy oneself at the end of full day. I was more than
Meet Thomas and the rest of the Emerging Leaders at the next KBA event. We have an excellent group of future leaders and the program is off to a great start!
Spring Conference Wrap Up
The 2014 Spring Conference was held April 13-15th. As in past years, the event kicked off with a beautiful day on the Kearney Hill golf course. Those who prefer to pass on golf enjoyed an excellent lunch at the Jean Farris Winery. Event speakers included Bill Capodagli, Kamal Mustafa, Steve Miller, Karl Nelson, Al Forrester, Craig Poms, Steve Ford, Dr. Don Mullineaux, and Robert Flowers.
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Woods named President & CEO of Farmers State Bank Booneville, KY – Farmers State Bank, Inc., a subsidiary of MFG, located in Booneville and Beattyville, Kentucky, announced that Angela Woods has been appointed as their new President & Chief Executive Officer. Angela has worked for Middlefork Financial Group for over 25 years, working in various areas of the banks including branch management, deposit and loan administration, and the auditing and compliance functions within the subsidiaries. She is a graduate of the Graduate School of Banking of Louisiana and Berea College in Berea Kentucky. Angela is a life-long resident of southeastern Kentucky with a strong belief in community and family.
The Board of Directors commented that they were looking forward to success and growth under her leadership, as she becomes the first female to hold the position of President & CEO within their company. Ms. Woods, when asked about her new position, said, “I am very excited to continue working with the staff and customers of Owsley and Lee Counties. It is a privilege to work in such a friendly community. Farmers State Bank has a long history of serving Owsley and Lee Counties and I look forward to continuing this legacy with a solid, committed staff.”
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Training Tidbits KBA introduces the New ABA Certificate in Lending Compliance • Get the latest on key lending compliance regulations taught by expert faculty • Enjoy one year unlimited access to the course content and updates • Take the courses on your desktop, laptop, or tablet • Earn 31 CRCM credits Questions: Call Chris Kelso at 502-736-1300 or email ckelso@kybanks.com
2014 Group Meeting Schedule Group 1 - May 6th, Paducah Drake Creek Golf Course
Group 9 - May 12th, Prestonburg Stonecrest Golf Club
Group 6 - May 21st, Lexington University Club of Kentucky
Group 2 - May 7th, Central City Central City Country Club
Group 7 - May 13th, London London Community Center
Groups 3 & 5 - May 28th, Louisville Cardinal Club
Group 4 - May 8th, Bowling Green Bowling Green Country Club
Group 8 - May 20th, Northern KY Summit Hills Country Club May 2014 | 19
First Kentucky Bank Gives Back First Kentucky Bank held a shoe drive, “Be a Sole Mate”, from August through December to benefit local students in need. First Kentucky has always been heavily involved in the schools throughout our communities and, as a result, we have developed a close relationship with the Family Resource and Youth Service Center Coordinators (FRYSCs) in each of those schools. From our communication with the FRYSCs over the years, we have discovered there is a great need for proper footwear for the underprivileged children in our schools. With the help of the community and a $100 donation from KBA, we collected $3,730.51 and 56 pairs of shoes, which were then donated to the FRYSCs in each of our local schools. Way to go First Kentucky Bank!
Shedding Light on the Farm Credit System, America’s Least Known GSE FCS sidesteps Congress to tap taxpayers for a $10 billion line of credit as Treasury becomes FCS’s lender of last resort FCS snagged a $10 billion line-ofcredit from the U.S. Treasury last year without any congressional oversight when the Farm Credit System Insurance Corporation (FCSIC) secretly entered into a $10 billion line-ofcredit agreement with the Federal Financing Bank (FFB), an obscure May 2014 | 20
financing arm of the Treasury. Under this agreement, the Treasury, acting through the FFB, has become the “lender of last resort” to the FCS, putting the taxpayer at risk should the FCS ever run into liquidity problems. The FCSIC is an FDIC-like entity within the FCS that Congress created during the1987 bailout of the FCS to insure the timely payment of principal and interest on FCS notes and bonds. The
FCSIC is run from the headquarters of the Farm Credit Administration (FCA) in McLean, Virginia, and is overseen by the FCA’s three board members. Like the FDIC, the FCSIC Insurance Fund collects premiums from the banks and associations based on the amount of their outstanding debt. The Fund, which had $3.5 billion in it at the end of 2013, has never experienced a loss because no FCS institution has failed since the 1987 bailout.
The Brookings Institution, one of the oldest Washington, DC think tanks, prepared a report for the FCSIC in 2012 that supported the idea that the FCS should have a lender of last resort. Given the size of the FCS, Brookings concluded that only the Treasury has deep enough pockets to act as the FCS’s lender of last resort. A shocking conclusion. Why did the FCS, with record 2013 earnings, capital, and liquidity turn to the Treasury for a $10 billion line of credit? In 2008, it became difficult and more expensive for the FCS to issue longer-term debt, which increased its funding costs. Consequently, the FCS had to fund itself with short-term debt securities. As a result, FCS institutions had to respond by raising the price of their credit. Of course, that is exactly how financial markets should work. In the future, with their new line of credit at Treasury, the FCS will continue to enjoy fat interest margins, no matter how turbulent the financial markets become. In the case of a significant FCS meltdown, the FCS will be able to pass the check on to the American taxpayer, as it has done in the past. The FCS should have asked Congress for a line of credit at the Treasury Department, as Congress provided to the FCS in 1987 even though going to Congress in the 1980s was a major embarrassment for the FCS. Given the negative view in Congress of GSEs today, perhaps the FCS feared that it would be too risky politically and an admission that the FCS needs yet another taxpayer subsidy, since the clear purpose of the line of credit is to hold down the FCS’s funding costs during a time of turmoil in the financial markets. According to an FCS report, the lineof-credit agreement, which will terminate on September 30, 2014, “unless otherwise extended,” provides that the FFB “will advance funds to the [FCSIC]. Under its existing statutory authority, the [FSCIC] will use these funds to provide assistance to the [FCS] Banks in exigent market
circumstances which threaten the Banks’ ability to pay maturing debt obligations.” Translation: If one or more FCS banks cannot pay its maturing debt, the FCSIC will borrow money from the Treasury to relend to an illiquid FCS bank so that it can repay its debts in a timely manner. If this procedure sounds convoluted it is, but apparently the FCS had to adopt it to sidestep seeking Congressional authorization for a line of credit at Treasury. We are trying to find out how well known the existence of this agreement is within Congress. I have filed a Freedom of Information Act request with the FCA to obtain a copy of the line-of-credit agreement as it did not respond to my request to send me a copy of the agreement. FCS now has a $1 billion lending limit According to the FCS’s Annual Information Statement, at the beginning of the second quarter of 2013, an FCS “risk management committee” raised the FCS’s self-imposed lending limit (including unfunded commitments) to an individual customer to $1 billion. Since 2005, that limit had been $750 million. At the end of 2013, the FCS had three individual credit exposures between $750 million and $1 billion. Additionally, at the end of 2013, the FCS had 23 individual loans outstanding in excess of $250 million, for an average balance of $422 million. That is an increase from 18 loans over $250 million at the end of 2012, for an average loan balance of $359 million. The dollar growth in these large loans during 2013, from $6.47 billion to $9.71 billion, or $3.24 billon, accounted for more than one-third – 35.4% – of total FCS loan growth in 2013. At the other end of the scale, individual FCS loans under $250,000 grew just $122 million, accounting for just 1.33% of FCS’s 2013’s loan growth. As further evidence that FCS increasingly focuses on lending to larger borrowers, individual FCS loans over $1 million grew from 50.3% of total FCS loans outstanding at the end of 2012 to 51.3% of total loans one year later. These percentages ac-
tually understate the FCS’s large-loan orientation since many FCS borrowers have multiple FCS loans. The FCS publishes data aggregated by borrower only for its ten largest borrowers. At the end of 2013, those borrowers had total FCS loans outstanding of $5.762 billion, up from $4.155 billion at the previous year-end. CoBank’s $725 million loan to Verizon closed on February 21 As the October 2013 FCW reported, CoBank committed to lend $725 million to Verizon to finance Verizon’s buyout of Vodafone’s interest in Verizon Wireless. CoBank took the biggest piece of a $12 billion loan syndication. According to news reports, this loan was not funded until February 21. Therefore, CoBank’s piece of that loan will not appear in CoBank’s financial statements and call report until its first-quarter 2014 reports. Based on the FCS’s overall loan limit of $1 billion, I estimate that CoBank’s loan limit, or “hold limit” as it calls it, is $150-$175 million; CoBank refuses to disclose that limit. If I am correct about CoBank’s hold limit, then it will have to sell $550-$575 million of its Verizon loan. I may be able to determine from the call reports of the other FCS banks and associations how much of the Verizon loan CoBank was able to participate within the FCS and how much it had to sell outside the FCS. I anticipate providing that assessment in the May FCW. Report FCS lending abuses to: greenacres@ely-co.com Bankers are continuing to send FCW reports of FCS lending abuses, such as FCS loans for rural estates, weekend getaways, and hunting preserves. Email reports of similar lending abuses in your market to: green-acres@ ely-co.com. Please provide as much detail as possible about any loan which violates the spirit, if not the law, governing FCS lending. Reprinted with permission from Bert Ely’s Farm Credit Watch featured in the American Banking Association newsletter. May 2014 | 21
U.S. BANK DONATES $25,000 TO THE FIRST TEE OF LOUISVILLE U.S. Bank donated $25,000 to The First Tee of Louisville in support of the organization’s programs, and in recognition of The First Tee board member Jimmy Kirchdorfer concluding seven years of service on U.S. Bank’s advisory board in Louisville.
The goal of U.S. Bank’s advisory board is for community leaders to share information and ideas and help the company’s market leadership make decisions. The bank has 27 branches and employs nearly 250 people in the Louisville area.
The First Tee is an international youth development organization introducing the game of golf and its inherent values to young people through after school and in-school programs. The organization shapes the lives of young people from all walks of life by reinforcing values like integrity, respect, and perseverance through the game of golf. The local chapter of The First Tee of Louisville was organized in 2005 as an umbrella organization for three existing junior golf programs at Shawnee Golf Course (Urban Youth Golf program, Tee Swingers and Shawnee Youth Golf Club). Kirchdorfer, chairman of Louisville-based global piping solutions company ISCO Industries, has served as a board member for First Tee since 2012.
“U.S. Bank’s donation will go a long way toward The First Tee’s continued growth and increase the number of young people we can help in Louisville,” said Kirchdorfer. “I served on U.S. Bank’s advisory board throughout the economic crisis. In addition to remaining financially sound and emerging as one of our country’s top banks, U.S. Bank has proven to be a true corporate citizen through its support of organizations like The First Tee.”
“We’re proud to support The First Tee, which has a tremendous impact on shaping youth in Louisville,” said David Wombwell, market president for U.S. Bank. “Beyond that, Jimmy is highly-regarded in this region’s business and civic community and we wanted to find a meaningful way to thank him for his input and guidance as a member of our advisory board.”
About U.S. Bank U.S. Bancorp (NYSE: USB), with $364 billion in assets as of Dec. 31, 2013, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The company operates 3,081 banking offices in 25 states and 4,906 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust, and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
KENTUCKY BANK ANNOUNCES EXPANSION IN RICHMOND Paris, Ky. — Kentucky Bank, a subsidiary of Kentucky Bancshares, Inc. (KTYB), has expanded its presence in the Central Kentucky market with the opening of a new branch office in Richmond, Kentucky. The new office is located at 5008 Atwood Drive in Richmond, in the Madison Trace shopping center. The new office opened February 3, 2014. John Hamilton, Market President for Madison County said, “Kentucky Bank is excited about the opportunities brought about by the growth of Madison County. My 38 years of banking experience here will, I hope, help build strong relationships with both old and new customers, along with business and community leaders. I believe we have assembled a strong team with Nichole Goodson, Branch Manager/Consumer Lender, Laura Ormsby and Judy Laws, Tellers, and Chris Menser, Investment Advisor. We truly mean to provide Premier Customer Service.” The new office will allow Kentucky Bank, which has a strong presence in central and eastern Kentucky, as well as existing customers in Richmond, to establish a stronger customer base in Madison County. Louis Prichard, President and CEO of Kentucky Bank, said, “We will build on our existing foundation to create a high-performing community bank, one May 2014 | 22
that Is based on relationship banking in the best sense of the term. Kentucky Bank is a strong, well-capitalized community bank with a deep tradition of providing innovative financial products and great customer service.” Kentucky Bank offers wealth management and brokerage services in addition to retail and commercial banking. The company was named as one of the Best Places to Work in Kentucky for the past three years. Kentucky Bank, headquartered in Paris, Kentucky, is a locally owned and publicly traded financial institution, with 15 branches located in ten Kentucky communities. The bank offers a full line of services including retail, business, and wealth management products. Kentucky Bank has offices located in Cynthiana, Georgetown, Lexington, Morehead, Nicholasville, Richmond, Sandy Hook, Versailles, Wilmore, Winchester, and Paris. Kentucky Bank and its tributaries have been a part of Kentuckians’ financial solutions since 1851, and enjoy a long history as a strong, stable community bank. To learn more about Kentucky Bank, visit www.kybank.com
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2014 CFO Prog Workshop Human Resources for Your Commu Update Knowledge & Network All in One Day June 5, 2014 9 a.m. – 4 p.m. Holiday Inn East 1325 Hurstbourne Parkway Louisville, KY 40222
REGISTRATION FEE $275 per person
All times are local times. For directions, please visit www.kybanks.com.
REGISTER EARLY! Space is limited.
Human Resources has become a complex world. This workshop from start to finish breaks down critical human resource issues to provide you with solutions that you can take back to your bank.
Other topics of discussion include impact on your bank of raising the minimum wage, HRs role with recent regulations, Succession Planning, Wellness Programs, and other hot topics.
Registration 8-9 a.m. Continental Breakfast and Networking.
Leaders at All Levels 2:45-4 p.m. Susan Mullineaux, Mullineaux Management Services Today’s organizations need more than leaders at the top of the organizational chart: They need leaders at all levels. Human Resource professionals play a key role in identifying and developing leaders for today and tomorrow. She will lead an upbeat discussion on how personal authority is becoming more valued than positional authority in our work forces, especially with younger knowledge workers. Come prepared to offer your insights and ideas to your peers in the industry.
Legal Update 9-11 a.m. Kylie Luff, Seay Management Kylie will start the workshop by reviewing all the recent changes in regulations that affect bank Human Resource Professionals. She also will discuss what is coming on the horizon and how it will affect you. Professional exemptions and how to determine exempt vs nonexempt continues to be a concern with many of our bankers. Kylie will provide guidance on how to make the determination. As an expert in creating employee handbooks, Kylie will discuss-the most important policies you must have in your Employee Handbook. Come with all your HR legal questions for Kylie! KBA Critical Bank Employee Performance Models –Teller, Compliance, Loan Officer Linda Winlock, Personnel Profiling 11:15 a.m.-12:15 p.m. Linda will provide you the proven qualities to look for in placing successful bankers in these roles. She will draw from her vast experience to provide you industry standards for these bank positions. You will also learn how to develop the right standards for hiring for these positions at YOUR bank. Facilitated Hot Topic Round Table Discussion 11-2:30 p.m. Howard Blackburn, Jr, MA, SPHR, Community Trust Bank As an administrator for one the largest self-funded Health Plans, Howard will lead a discussion on health care trends, the Affordable Health Care Act and the current and future impact on your bank. May 2014 | 24
APPLIED FOR: HR Certification Institute continuing education credits. Audience Whether you’re a veteran banking Human Resources professional or a new comer, this information packed day will give you lots of information and material to take back to your bank.
Questions If you have questions, please contact Chris Kelso at (502) 582-2453 or ckelso@kybanks.com. To register online, or for information on all KBA programs, visit www.kybanks. com. Dress is business casual.
Cancellation Policy Refunds for the program will be granted for cancellations received 3 business days prior to the seminar. Cancellations less than 3 days prior to the program will be subject to a $50 cancellation fee. Substitutions are always welcome.
UPCOMING EDUCATION EVENTS & SEMINARS Business Development and Officer Calling Seminar May 8 Lexington Train the Trainer Pegasus Program May 12 Gilbertsville May 13 Bowling Green May 14 Elizabethtown May 15 Lexington Branch Management Workshop Series June 17 Louisville August 12 Louisville September 9 Louisville Appraisals and Evaluations: Keeping Your Valuation Program Compliant Seminar May 14 Lexington May 15 Bowling Green
GENERAL BANKING SCHOOL June 1-6 Louisville
COMMERCIAL LENDING SCHOOL September 15-19 Louisville
HR Seminar June 5 Louisville Regulators Forum June 19 Bowling Green June 20 Lexington
Asset Liability Management Seminar October 8 Louisville FDIC Community Bankers College October 21 Bowling Green October 22 Lexington
Bank Security Seminar June 26 Louisville Certified Teller Seminar July – August 11 Various Locations
Cash Flow Seminar November 12 Bowling Green November 13 Lexington
Internal Audit Seminar August 12 & 13 Bowling Green August 14 & 15 Lexington
When it comes to the banking industry, KraftCPAs has the bases covered. Services • Merger/acquisition assistance • Valuation services • Internal & external audit • Information systems assurance & consulting • External & internal penetration testing • Social engineering • Compliance reviews • Loan reviews & grading systems
Wynne E. Baker - (615) 782-4230 Member-in-Charge Banking Industry Team
Gina Pruitt - (615) 782-4207
Member-in-Charge Information Systems Assurance & Consulting
• Enterprise risk management • Forensic accounting • SOX documentation & testing • Tax planning & compliance
www.kraftcpas.com/Banking.htm • Serving the banking industry since 1958 May 2014 | 25
ON THE MOVE
Jeff K. Joiner, Vice President & Branch Manager of FNB Investment Services, was recently named a member of the 2014 Executive Council. Executive Council honors are presented only to those financial advisors who have demonstrated an extremely high level of commitment to clients through personal service and professional integrity.
Bank of Edmonson is proud to announce that Kandi Minton was promoted to Loan Compliance Officer. Congratulations Kandi.
Central Bank Chairman, President and CEO, Luther Deaton, Jr., has announced that Michael Williams has been promoted to Assistant Vice President, Loan Review. Michael joined Central Bank in 2006 with an already substantial banking résumé. Originally from Richmond, Kentucky, Michael now lives in Lexington with his wife Paula. He graduated from Madison Central High School, and holds both a BBA and MBA from Eastern Kentucky University.
Farmers State Bank, Inc., a subsidiary of Middlefork Financial Group, located in Booneville and Beattyville, Kentucky, announced that Angela Marshall has been appointed as Vice President and Chief Operations Officer. Angie has worked for Farmers State Bank for over 24 years, working in various areas of the bank including deposit and loan administration.
Farmers National Bank is pleased to announce that Anne Curry, Retail Bank Manager at the Harrodsburg Banking Center was recently promoted to Assistant Vice President. Curry has worked for Farmers National Bank for over eight years and resides in Harrodsburg with her family.
Larry Jones, Central Kentucky Regional President of Community Trust Bank, is pleased to announce that Commercial Loan Officer Chris Castle has been promoted to the position of Vice President. Previously an Assistant Vice President, Chris works as a loan officer to develop new business relationships and originates and monitors commercial loans. His office is located at 101 North Main Street in Versailles, Kentucky.
Farmers National Bank is pleased to announce that Marie Rice, Assistant Customer Service Manager at the Main Office was recently promoted to Assistant Vice President. She is a past member of the Anna Bohon Woman’s Club of Harrodsburg, where she served as secretary, vice president and president. She resides in Harrodsburg with her family and attends Saint Philip’s Episcopal Church.
Citizens Commerce National Bank Chairman, Frank Stark, is pleased to announce Dr. Denis King has joined the Board of Directors. Dr. King is a graduate of the University of Kentucky with a B.S. in Animal Science and the Auburn School of Veterinary Medicine. He has been a Franklin County businessman since purchasing the Frankfort Animal Clinic in 1986.
Our industry works hard to serve the communities, we want to recognize bankers who excel in their positions. There are plenty of ways to be “On The Move” in your Kentucky bank. A recent promotion, a new employee, even a new grandbaby! Let us share your good news with our readers. Send On The Move announcements to: Lane Hettich, lhettich@kybanks.com. May 2014 | 26
ON THE MOVE Bank of McCreary County and First Trust and Savings Bank merge to form United Cumberland Bank Whitley City, Kentucky – Gordon Kidd, President and CEO of McCreary Bancshares, Inc., announced the completion of the holding company’s planned merger of its subsidiary banks, Bank of McCreary County of Whitley City, Kentucky and First Trust and Savings Bank of Oneida, Tennessee. The newly merged bank has changed its name to United Cumberland Bank and it will be headquartered in Whitley City, Kentucky. The bank will continue to be led by Gordon Kidd, Chief Executive Officer, along with James Johnson, President. Both banks had long histories in their respective communities. Bank of McCreary County has served southern Kentucky since 1906, while First Trust and Savings Bank has served northern Tennessee since 1923. Kidd explained the merger was taking place as a part of the organization’s long-term strategic plan. Both Bank of McCreary County and First Trust and Savings Bank have been owned by McCreary Bancshares since 1994 but, according to Kidd, “it’s time to streamline our operations, blend our resources for the well being of the communities we serve, and prepare for the future growth and prosperity of our shareholders.” By streamlining operations, Kidd noted, the collective institutions will eliminate redundancies and be better prepared to meet the future needs of their customers in a “manner than makes sense.” With the two banks’ assets blended, United Cumberland Bank now manages total assets of approximately $285 million and will serve locations from Whitley City and Pine Knot, Kentucky, to Oneida, Huntsville and Jacksboro, Tennessee.
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2014 Fundraising On the Move!
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Professional Membership Payroll Deduction KBA Annual Events 13th Board Meeting Charitable Match Bank Sponsorship