Banking Traditions
Total Page:16
File Type:pdf, Size:1020Kb
Volume 29 Spring Issue 1 2018 Successful strategies require INSIGHT The Baker Group has long been known for its proven software and products, but it takes insight to make sound, strategic decisions. For financial institutions,insight can be defined as the ability to see what others may not see. uccessful financial institution managers know the importance of achieving a high-performance Splan. Establishing such a plan requires not only sound data and accurate information, but also an insightful partner; The Baker Group is that partner. Our proven approach of total resource integration utilizing software and products developed by Baker’s Software Solutions* — combined with our solid investment experience and advice — makes us the investment firm of choice for financial institutions. When seeking an insightful partner, you can be assured The Baker Group will help you make the right choices for your institution. The Baker difference. In 1981, when Dr. James Baker revealed his innovative and insightful approach to banking in his book, Asset/Liability Management, little did he know The Baker Group would one day be working with over 1000 community financial institutions and be known as the industry leader in interest rate risk management and investment portfolio strategies. Education Investment Strategies Asset/Liability Management Tailored Board Education Develop Quarterly Strategies Evaluate Earnings and Capital at Risk Webinars for ALCO Determine Optimal Relative Value Simulate Stressed Rate Scenarios Interest Rate Risk Seminars Manage Risk vs. Reward Tradeoff Analyze Risk Management Strategies Leaders in innovation. The Baker Group remains the industry leader when it comes to innovation. We are truly a one-stop shop that never outsources our customizable reporting services. To find out how The Baker Group can assist your institution in defining and meeting its financial objectives, call your Baker representative or Ryan Hayhurst at 800.937.2257. Member: FINRA and SIPC Oklahoma City, OK | Atlanta, GA www.GoBaker.com Austin, TX | Indianapolis, IN 800.937.2257 Salt Lake City, UT | Springfield, IL *The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc. Volume 29 Issue 1 Spring 2018 THE MAGAZINE OF THE ALABAMA BANKERS ASSOCIATION, INC. CONTENTS FEATURES 24 Recap of the 2018 Session: A Top 10 List for Bankers 10 Developing a Comprehensive Data Strategy One of the quickest and least controversial legislative sessions in Read about S&P Global Market Intelligence’s experience with more recent memory ended on March 29, when the Alabama Legislature than 100 community financial institutions that identified one common adjourned sine die just after noon. The session ended four legislative element present in successful business intelligence implementations. days and 25 calendar days before its mandated conclusion, giving legislators a brief head-start on the 2018 election season. 14 Strategic Considerations for Community Banks For many community bankers, a merger or acquisition transaction 28 125th Annual Convention & Trade Show often seems like a viable strategic alternative to address increasing Set for June 3-6, our annual convention and trade show will be held at compliance and funding costs, competition from non-banks, and the the beautiful Fairmont Southampton in Bermuda. Get an update on the need for scale to drive operational efficiencies and value creation. agenda, speakers and convention events! 18 From the Bank to the Capital 35 Is the TRID Improvement Act an Improvement? Alabama’s public servants, just like Alabamians themselves, come from While we were eagerly awaiting a final rule from the CFPB on the so- all walks of life. In the Alabama Legislature, for instance, you’ll find called “black hole” tolerance issue, a new bill was swiftly passed by the restaurant owners, car salesmen, pharmacists, stockbrokers, real estate House of Representatives last month: the TRID (TILA-RESPA Integrated agents, attorneys, farmers, and teachers. But scattered about the halls Disclosure) Improvement Act of 2017. of power in Montgomery are also current and former bankers and bank directors. DEPARTMENTS 20 Alabama Elections: A Preview 6 From the President’s Desk What Keeps You Up at Night? Todd Stacy, editor of Alabama Daily News, shares his thoughts about Alabama’s upcoming elections. This election year is getting into full 8 Chairman’s Message swing and there are lots of interesting races taking shape. Despite Great Organizations Run by Great People Produce Positive Results Democratic Senator Doug Jones’ special election win over Roy Moore in 9 Thank You BankPAC Supporters December, Alabama remains a mostly Republican state, meaning most Many thanks to the banks who have responded to our call for statewide offices will be pretty much decided in the GOP primary on commitments to our state political action committee! June 5. 38 ABA NewsLine Banking News from and for Alabama 23 Can Your Portfolio Play Defense, Too? 42 Half Century Club Honoring Bankers Serving Over 50 Years When it comes to the bank’s investment portfolio, the immutable truth we’re all living with these days is the inverse relationship between 45 ABA 2018 Calendar of Events Dates and Locations interest rates and bond prices. When interest rates rise, bond prices fall. 45 ABA Live Seminars, the Latest Topics & Updates Water runs downhill. Nobody likes it, but some are better prepared for it than others. 46 ABA Telephone & Webinars Dates and Topics BANKING TRADITIONS The Magazine of the Alabama Bankers Association 3 CHAIRMAN CHAIRMAN-ELECT VICE CHAIRMAN TREASURER PAST CHAIRMAN PRESIDENT & CEO Tim Compton Jerry Powell David Nast Jimmy Stubbs William Petrey Scott E. Latham President & CEO EVP & General Counsel President & CEO President & CEO President & CEO Alabama Bankers Traditions Bank Cadence Bank Progress Bank & Trust River Bank & Trust First Citizens Bank Association, Inc. Cullman Birmingham Huntsville Prattville Luverne Montgomery BOARD OF DIRECTORS Chris Carothers Vice Chairman & President, Citizens Bank, Winfield Leigh Collier Midsouth Region President, Wells Fargo, Birmingham CHAIRMAN Robert Dumas President & CEO, AuburnBank Josh Barnes FNB Bank, Grant Bob Freeman Executive Vice President, BBVA Compass, Birmingham CHAIRMAN-ELECT Dwight Gamble President & CEO, HNB First, Headland Clark Rainwater Merchants Bank of Alabama, Cullman Jack Hughes CEO, The First National Bank of Hartford VICE CHAIRMAN Hope Johnson CEO, Friend Bank, Dothan Candice Burge Bank of Tuscaloosa Jeff Kervin President & CEO, Troy Bank & Trust Company TREASURER Stratton Lewis, Jr. Chairman, President & CEO, Sweet Water State Bank Travis Colquett Brantley Bank & Trust Macke Mauldin President, Bank Independent, Sheffield PAST CHAIRMAN Richard Moore, Jr. Chairman, President & CEO, Peoples Southern Bank, Clanton Meredith Nelson Southern States Bank, Birmingham Howell Poole President & CEO, Bank of Moundville DIRECTORS Elizabeth Bailey Merchants Bank, Mobile Mike Ross President & CEO, CB&S Bank, Russellville Charlie Breedlove Friend Bank, Dothan Rodney Rushing Executive Vice President, ServisFirst Bank, Birmingham Heath Blevins First Jackson Bank, Stevenson Steve Smith Chairman, President & CEO, SouthPoint Bank, Birmingham Stacey Crabtree First Southern State Bank, Stevenson Alvis Storey Chairman & CEO, Merchants & Farmers Bank of Greene County, Eutaw Brian Davis The First National Bank, Brundidge Byron Heifner Bryant Bank, Tuscaloosa Rick Swagler Executive Vice President, Regions Financial Corporation, Birmingham George Hendricks Escambia County Bank, Flomaton Steve Whatley President & CEO, Southern States Bank, Anniston Chris Latta Farmers & Merchants Bank, Piedmont Shad Williams President & CEO, Cheaha Bank, Oxford Mac McCreless Traders & Farmers Bank, Haleyville Keith McCullough NobleBank & Trust, Anniston Matt Meynardie Central State Bank, Calera Chairmans Council Claude Edwards President, Bryant Bank, Tuscaloosa Alexes Murillo Traditions Bank, Cullman Rob Finney President & CEO, West Alabama Bank & Trust, Reform Matthew Pope Metro Bank, Pell City Jimmy Ramage Chairman, The First National Bank, Brundidge Jason Windham Bank Independent, Sheffield Will Walker Chairman & President, Traders & Farmers Bank, Haleyville Katie Windham Robertson Banking Company, Demopolis Banking Traditions is the official publication of the Alabama Bankers Association, Inc., 445 Dexter Avenue, Suite 10025, Montgomery, Alabama 36104-3775. Phone: 334/244-9456. Fax: 334/244-9382. Banking Traditions is published four times a year in the Spring, Summer, Fall and Winter. Views and conclusions expressed in articles herein are those of the authors, not necessarily Alabama Bankers Association Staff those of the editors or officers of the Alabama Bankers Association, Scott E. Latham, President & CEO ([email protected]) • Janice W. Cox, Senior Vice President Inc.. Opinions expressed in this magazine do not necessarily reflect the policies of the Alabama Bankers Association, Inc.. ([email protected]) • Lisa Garrett, Vice President, Accounting and Information Systems ([email protected]) ADVERTISING: Inquiries should be directed to Shelley Hildebrand at the Alabama Bankers Association, Inc.. Rates will Jason Isbell, Vice President, Legal and Governmental Affairs ([email protected]) • Lisa Dunn, Director of Conference be furnished on request. The Alabama Bankers Association, Inc. reserves the right to omit any advertising