October 30, 2006 www.bankersdigest.com Volume 129, No. 18 Texas Leadership Opens in Royse City, TX Stricklin Joins Bank Stan Pinkham, president/CEO of mer of 2007. of Fayetteville, AR, as Texas Leadership Bank, Royse City, Officers of the de novo bank include Mary Beth Brooks, president and TX, announced that the independent Doyle Cooper, executive vice presi- CEO of The Bank of Fayetteville, AR, community bank opened for busi- dent and chief lending officer; Mari- has announced the addition of Sam ness on October lyn J. Leiker, senior Stricklin to execu- 10 in a temporary vice president and tive vice president facility at 121 W. I- CFO; Carole White, and CFO, effective 30. The full-service vice president/ October 1. administration; and Stricklin is a will serve Rockwall Carla Dearing, as- 30-year banker, County, including sistant vice presi- who most recently Rockwall and Royse dent/lobby services served as executive City; eastern Dallas manager. vice president and County; and the sur- Pinkham, a 27-year CFO for Northwest rounding areas of banker, previously Bank in Roanoke, Collin, Hunt, and Kaufman counties. served as executive vice president and TX. Pinkham reported that the bank’s COO of Western National Bank in Stricklin attended The University of initial capitalization was in excess of Odessa. Cooper and Leiker previously Texas at Austin where he received a $13 million, and initial shareholders served with a Northeast National Bank BBA degree. He is also a graduate of number 385. He also reported that in Mesquite the Graduate School of Banking at LSU the bank has acquired 1.07 acres on Initial members of the board include: and the School for Bank Administra- the eastbound I-30 frontage road for Pinkham, David R. Alford, Paul J. Fisk, tion at The University of Wisconsin. the construction of a permanent 5,900 James M. “Mike” Gilbert, James M. In addition, the bank has announced square-foot facility to open in the sum- Kangerga, Larry H. Lott, J. David the recent hiring of Ray Williams as vice president and compliance man- ager. He has served in bank compli- Stillwater National Announces Three SVP ance for 28 years, most recently for 1st Promotions and Two Appointments in Oklahoma Pacific Bank in La Jolla, CA, as compli- Stillwater National Bank & Trust, Still- pervisor, corporate facilities/purchasing Please route this issue: water, OK, has announced the promo- manager, corporate security officer, and tions of Linda Darrow, Sharon Knight, corporate telecommunications man- Melanie Pitchford, and Daryl Ross ager. He joined the bank in 1987. to senior vice president. Jay Morey Morey, an 18-year banker, is a com- In This Issue... has been named senior vice president mercial real estate lender and most Making Your Loan Portfolio More of commercial lending, and Brandon recently served as senior vice president Profitable Is Harder (and Easier) Lamb named vice president of com- at Bank of the Lakes in Owasso. Earlier, Than You Think mercial lending at its Tulsa location. he was executive vice president at In- Darrow is manager of customer ac- termountain, a division of Kirkpatrick Feature...... 3 counting and the SNB Call Center. Bank in Colorado Springs, CO. Knight is responsible for the loan Lamb, a five-year banker with expe- Charter Activity...... 11 services department. rience in business development, most Pitchford is director of the human recently served as vice president in the F D I C B o a r d A p p r o v e s resources department and has served premier banking division at Bank of O n e - T i m e A s s e s s m e n t Credit...... 12 with the bank since 1995. America Q Ross’ duties include operations su- p e o p l e TEXAS PlainsCapital’s Seim Receives 2 Major Honors IronStone Taps Doonan PlainsCapital Bank Lubbock president career milestones, each tied to his Houston Area Executive David R. Seim is celebrating two contributions to community banking IronStone Bank, a subsidiary of $15.5 in Texas. He has received the coveted billion-asset First Citizens BancShares IBAT Chairman’s Award and, in a sepa- Inc., Raleigh, NC, recently announced rate honor, he re- plans to enter Houston, a second TX cently was elected market for the bank. Dean for Bankers of IronStone has hired the Southwestern veteran banker Tom Graduate School of Doonan as area Banking at SMU. executive for the Seim, a banker Houston market. He will oversee op- with 35 years of erations and busi- experience, was ness development. honored with the Doonan and his Chairman’s Award RED BOOK staff are currently working out of interim during the 32nd annual convention of loan offices at 4801 Woodway Drive in IBAT. The Chairman’s Award recognized the Regus Center. Jay Parker, president Seim’s overall service to the bank- of IronStone Bank’s western region, ing industry, his community, and the made the announcement. organization itself. He has served as Doonan, a 25-year banker, most re- chairman of IBAT (1993-1994), the Texas cently served as a senior vice president Independent Bank, and the Texas Tech for business banking at J.P. Morgan School of Community Bank Manage- Chase in Houston. He has extensive ex- ment. He has served on the board of perience in commercial lending, credit directors of Independent Community administration, and helped start up the Bankers of America, IBAT Education small business division for the former Foundation, SWGSB, and the PULSE Texas Commerce Bank. He graduated EFT Association. He also served as an from LSU in 1979 with a bachelors de- instructor at the Texas Tech School of gree in . Banking and at SWGSB. IronStone Bank is seeking regulatory Seim, a graduate of SWGSB, has approval from the OTS to open a branch served on its board of directors for at the NWC of Westheimer Rd. and Post several years. As dean, Seim will con- Oak Blvd. in a leased space across from sider the qualification of some of the the Galleria shopping complex. Upon Bankers Di- receiving approval, the bank expects Established 1942 school’s applicants and will handle any to open in the first quarter of 2007. A Weekly Bank News Magazine discipline issues that might arise (USPS 041180) Q IronStone currently has four branches Published every Monday at Dallas, Texas Rogers Named Vice Pres, in the Austin area. Copyright 2006 Bankers Digest® Since opening its first office in Austin BONNIE JAMISON BLACKMAN, Publisher/Editor Southwest Securities FSB in September 2002, IronStone Bank R. GILBERT BLACKMAN, Managing Editor Jim Rogers has been named vice presi- (www.ironstonebank.com) has expanded 9550 Forest Lane, Suite 125 dent of commercial lending at South- to 21 branches in Texas, Arizona, Cali- Dallas, Texas 75243-5928 west Securities FSB in Arlington fornia, Colorado, New Mexico, Oregon, Phone 214/221-4544 Q Fax 214/221-4546 and Washington. IronStone also has E-mail: [email protected] NEED A 20 locations in the Atlanta, GA, metro website: www.bankersdigest.com SUBSCRIPTION? region and 15 offices in Florida Subscription rate: Q One year $32.00, single copy $1.00 Visit Bankers Digest on-line: Opinions expressed by columnists and writ- ers of bylined articles are not necessarily www.bankersdigest.com those of Bankers Digest. Editorial guidelines CHANGE AN may be obtained upon request. Articles and ADDRESS OR NAME? Slay Makes ! photos may be submitted to above address SEND NEWS OF YOUR BANK? or sent via e-mail. 1st Liens on Real Estate Periodical postage paid at Dallas, Texas email POSTMASTER: Send address changes to [email protected] Bankers Digest®, 9550 Forest Lane, Suite 125, 1-800-856-9400 (Dallas) Dallas, Texas 75243-5928. 214/221-4544

Page  BANKERS DIGEST October 30, 2006 F E A T U R E P R O F I T A B I L I T basis point lift on ROA we mentioned the bank looks at loans and pays the earlier, then every loan needs to have a lenders. Making Your Loan Portfolio minimum yield to get you there. Make More Profitable is Harder one loan that nets you 1.4%, and the A Different Scenario next needs to net 1.6% to keep you at Let’s see how this would look in real (and Easier) Than You Think life. Business owner Jim Hanks comes By that ideal 1.5%. Better to keep your focus on making to the bank and meets with lending Steve Simpson officer Tom Parks. Jim runs a good local Director of Product Development every loan within the bank’s pricing standards. Certainly it is recognized company, and Tom has been working Sheshunoff Management Services hard to win his business. Austin, Texas that all would like to grow their loan portfolios by approving every They discuss the loan and Tom offers www.smslp.com creditworthy loan. A comprehensive Jim a rate that will comply with the bank’s Tell a room pricing model coupled with effective pricing standards (earn the bank a 1.5% full of bankers negotiation skills will allow the bank to ROA return). Jim knows the ropes and that they can maximize those opportunities without points out that his regular bank quoted improve their sacrificing profit margins. him a lower rate, but he hasn’t been bank’s ROA 20- This also gives your loan officers completely happy with them, and he’d 40 basis points more time to work on getting those like to give Tom some business. Will he by initiating a better loans, and managing them to match the rate? commercial loan pricing strategy which remain profitable. They do less running In the old way of doing things, Tom requires a minimum pricing standard, after any loan they can make to fill might have offered to waive some fees or and they cheer. Then they go home a quota (and get a bonus based on even have put the application through and continue approving loans which volume), and spend more time winning to the loan committee with the lower negatively impact their profitability, the best loans. rate. And the loan committee would making those 0.85 to 1.25 ROA loans This flies in the face of how most have looked at Jim’s good credit and as usual. banks evaluate a loan application and approved the loan. Now the bank Why? Bankers have had loan pricing reward their loan officers. It requires models available for a few years, yet senior management to change the way a survey of Sheshunoff Affiliation (continued on Page 15) members showed that only 30% ever used them, and only half that number were still using a loan pricing model today. They complain they’re too hard to use, that it takes more time to use the model than to underwrite the loan, and that the standard expense factors built in to most models don’t reflect the bank’s real costs. One banker told us that using a loan pricing model made him so uncompetitive that he wanted to buy BKD-TX name one for the bank across the street. Standard loan pricing models obviously don’t do enough. With net interest margins flat or declining in most areas, bankers simply can’t afford to not have and use better tools and better ways of doing business.

Creditworthy Isn’t Loanworthy At most banks, if a potential borrower has great credit, the bank will compete for his business with low rates and fees. You want those reliable, low risk loans, right? Not necessarily. If senior management is doing its job, some baselines should be set that support the bank’s strategic and profit goals. If your bank is going for that 20-40

October 30, 2006 BANKERS DIGEST Page  p e o p l e TEXAS Broadway Bank Appoints Wolters Joins Community Independent Bank of Austin Foster, Promotes Ramos Bank in Bus Dev in Burle- Elects McCaskill Director Broadway Bank, San Antonio, has an- Granbury-based Community Bank’s Independent Bank of Austin, SSB, Lake- nounced that Gera Foster has been Burleson president Tim Southerland way, reported that David McCaskill, se- hired as assistant vice president, busi- has announced the appointment of nior vice president-lending at the Texas ness banking underwriting manager, in Ryan Wolters as business development Methodist Foundation in Austin since the commercial lending department. officer. 1999 and a veteran banking executive, Foster was previously the director of While a newcomer to the banking was elected to the bank’s six-member lending for the non-profit Community industry, Wolters has nine years of retail board of directors. Development Loan Fund in San Anto- experience in direct sales and customer After he received a BBA degree from nio. She earned BBA and MBA degrees service with Dillards Department Stores. Texas A&M University, McCaskill earned in management from The University of He will work to attract deposit customers a real estate broker’s license. He also Incarnate Word in San Antonio. as well as SBA, commercial, and served as a national bank examiner for Tammy Ramos has been promoted commercial real estate loan customers the OCC. Prior to his current position, to retail technical trainer. She joined in Johnson and Tarrant counties. he served with First National Bank, the bank in 1994 and has served in a He received a BBA degree in Georgetown. career path. She holds management from the University of Independent Bank, with total assets a BS degree from Mississippi University Houston Q of $91.3 million and total deposits at $81.8 million as of September 30, of- for Women in Columbus, MS Q ficially opened on June 6, 2005, with $7.5 million in capitalization. The bank recently purchased property at 3209 Ranch Road 620, across from Lake Tra- vis High School, as the site for its new corporate headquarters. Construction on the 3,500-square-foot facility should start before the end of 2006. Plans call for relocating operations there in late Retired Kerrville Bank Exec IBS Cordes Dies at Age 74 Earl Edwin Cordes Jr., 74, died October 4 in Oro Valley, AZ. A retired Hill Coun- try banker, Cordes was born October 26, 1931, in Houston. He graduated in 1953 from The Uni- versity of Texas at Austin with a busi- ness degree. He served from 1954 to 1956 in the U.S. Army in Germany. After working for his family’s hard- ware business, Cordes eventually established a successful career as a banker in Houston where he played an SW REGIONAL INS - BD COLOR integral part in the opening of Fondren Southwest Bank in 1974 and served as founding president there for several years. In 1976, he moved his family to Kerrville where he became executive vice president and director of the First National Bank of Kerrville. He retired from banking in 1985 and shortly thereafter, he and his wife began spending the winter seasons in Tucson, where they moved permanently in 2003 Q Page  BANKERS DIGEST October 30, 2006 MONEYPASS #2-ROUTES

October 30, 2006 BANKERS DIGEST Page  p e o p l e TEXAS LOUISIANA Frost Ups Scott to Retired Odessa Bank CEO Capital One Bank Promotes EVP, Bachmeyer to Henry Dies at Age 87 Goff, Braud, Roussel, White Don Frost, San Antonio Region President Derrell C. Henry, age 87, a retired Capital One Bank, N.A., has announced of , Odessa banker and former president recent promotions in the Baton Rouge has announced of the TBA, died on October 15 after market. recent promotions a long illlness. Henry was known to Pete Goff Jr., business banking, has o f S h a r i o n R . have influenced many bankers’ careers been named senior vice president. He Scott to executive throughout Texas. analyzes and recommends real estate vice president, He was born on September 12, 1919, products to investors. customer service/ in Floyd County, TX, and was an Army Blair Braud, database marketing, has call center and Air Force veteran during WWII. He be- been named senior vice president. He Christy Bachmeyer gan his banking career in 1950 with the t o s e n i o r v i c e develops and manages informational American National Bank of Amarillo. In president, regional resources consolidated from banking 1960, he moved to Odessa to become o p e r a t i o n s operations. manager. chairman/CEO of American Bank of Toni Roussel, investor real estate, The bank has also Commerce which later became Texas has been named vice president. Rous- Commerce Bank. He retired in 1984 and named: Sharmon sel oversees investor real estate loan moved to Lakeway. S a l a z a r v i c e portfolios. Following retirement, he worked president, internal Gina White, commercial banking, has as a membership consultant for the audit; Michael been named vice president. White over- American Bankers Association and as Rainosek assistant sees investment portfolio management chairman of the Oak Hill National Bank vice president, in the commercial banking division in asset review; and in Austin. He also was a principal orga- Central LA M a r y M c K i m nizer and chairman of the Permian Bank Q administrative officer, properties and Trust, Odessa. He was also active Q TECHNOLOGY in ABA and CSBS affairs Q Elliott Upped to Senior Vice President of CSI Andy Elliott has been named senior vice president of Computer Services Inc. (CSI), Paducah, KY, with expanded cor- porate-wide responsibility for customer services, corporate communications, conversions and education services. Elliott joined CSI in 1980 after four years in the U.S. Air Force. He has held STATE BANK positions in operations, programming, - wc telecommunications, EFT, marketing, account management, and hotline sup- port management. He was named vice president, customer services, in 1998, and served as integration manager for CSI’s acquisition of First Commerce Technologies in August 2000. He graduated magna cum laude from Transylvania University, is also a gradu- ate of the Kentucky Bank Management Institute, and of the Graduate School of Banking at LSU. In September 2005, Elliott was elected president of The Association for Finance Technology (AFT), which promotes standards in the planning, development, implementation, and ap- plication of technology to the financial services industry Q Page  BANKERS DIGEST October 30, 2006 p e o p l e OKLAHOMA IBC Bank Taps Brooks, Enix, Butler, Dixon Sales Manag- IBC Bank-Oklahoma has named vice president Rita Brooks area sales manager of the Norman, Moore, south Moore, and Penn South offices. Brooks will remain branch sales manager of the Norman office. Assistant vice president Paula Enix has been named area sales manager of the Midwest City Air Depot, Midwest City Douglas, Park Avenue, Crown Heights, and May Avenue offices. Enix will remain branch sales manager of the Midwest City Air Depot office. Kerri Butler has been named area sales manager of the Portland, Spring- brook, Bethany, Corporate, and Yukon offices. Butler will remain branch sales manager of the Springbrook office. APORIA Kim Dixon has been promoted to area sales manager of the Edmond Santa Fe, Edmond Bryant, Quail Creek, Quail Springs Mall, and Gaillardia offices. She will remain branch sales manager of the Edmond Santa Fe office

Arkansas Valley State Bank Reports Two Promotions Arkansas Valley State Bank, Broken Ar- row, has named Amy Dallis personal banker at its 302 S. Main Street branch. She is a 13-year banker. Also, Rebecca McGovern has been promoted to sales coordinator and as- sistant vice president. She has served with the bank for 12 years, most recently as a senior branch manager Q UMB Bank, Oklahoma City, Welcomes Pointer as VP Mary Blankenship Pointer has joined UMB Bank in Oklahoma City as vice president for business development. She serves at the bank’s downtown loca- tion at 204 North Robinson Q Grand Bank,Tulsa, Names Wilson AVP in Operations Grand Bank, Tulsa, has named Jo Wilson assistant vice president and manager of deposit operations. She has more than 20 years of banking experience in book- keeping and related areas Q

October 30, 2006 BANKERS DIGEST Page  p e o p l e OKLAHOMA ARKANSAS Bank of Oklahoma Reports president, fundamental equity portfolio Pruitt Joins Twin City Bank Promotions, Appointments manager, in the consumer banking and wealth management division. in Little Rock as Vice Presi- Stanley A. Lybarger, president/CEO, Christopher S. Campbell was Kim Pruitt has joined North Little Rock- Bank of Oklahoma, N.A., Tulsa, has appointed assistant vice president, based Twin City Bank as vice president announced recent promotions and senior sales administration manager, of business development. She will appointments in Tulsa. in the consumer banking and wealth market deposit and loan products in Randall L. Blattner was promoted to management division. the Little Rock market. She serves at the senior vice president, director, enterprise Laura B. Alexander was appointed Riverdale Branch on Cantrell Rd. management, in the consumer banking officer, oil and gas administrator I, Pruitt is new to banking but not to and wealth management division. in the consumer banking and wealth business/economic development. She was promoted Jay R. Cummings management division. served 22 years with the Little Rock to senior vice president, operations Bradley A. Mann was appointed Regional Chamber of Commerce, most relationship manager, in the operations officer, business systems developer recently as vice president/economic and technology division. He has served development. in the technology industry for 24 years. II, in the finance and administration division. She holds an MBA degree from the He earned a BS degree in computer UCA in Conway and is a graduate of the science from Weber State University Gregg Rinehart was appointed Economic Development Institute (EDI) and an MBA degree in technology officer, senior human resources at the University of OK in Norman management from Marriott School business partner, in the finance and Q of Management at Brigham Young administration division. University. Jennifer L. Thomure was appointed ARIZONA Matthew C. Stephani was appointed compliance officer in the finance and vice president, fundamental equity administration division. She previously Olson Joins Arizona Business portfolio manager, in the consumer served with First National Bank of Bank as VP/Lender in Gil- Jonathan N. Olson has joined Arizona banking and wealth management Coweta Q division. Business Bank, East Valley (Gilbert), as Bob Rezaee was appointed vice vice president and senior lender Q

MPA

Page  BANKERS DIGEST October 30, 2006