Volume 29 Issue 4 Legislative 2019 The Baker Advantage: SEMINAR For forty years, The Baker Group has been known for its proven software and products, and for helping clients make sound, strategic decisions. The Baker Group’s Interest Rate Risk and Investment Strategies Seminar was developed specifically for managers of financial institutions. Designed to meet current financial challenges, it is an in-depth examination of topics including: • Economic Overview, Market Update, and Fed Policy Outlook APR • Late Cycle Behavior – Preparing the Balance Sheet for the Next Environment • Best Practices to Comply with the Latest Liquidity and IRR Regulatory Guidance April 25-26, 2019 • What Should Our Bank Be Buying Today? Seeking the Best Relative Value Dallas, Texas • Managing Cashflow Optionality to Protect Against Extension and Contraction Risk • Protecting Your Portfolio with a Robust Municipal Credit Process Guest Speaker Dr. Lacy H. Hunt Executive Vice President of Hoisington Investment Management Company Who Should Attend Financial institutions’ CEOs, CFOs, investment Thursday Westin Stonebriar Hotel Old American Golf Club officers, board members, Golf 12:00 pm 1549 Legacy Dr 1001 Lebanon Rd and those who are directly Dinner 6:30 pm Frisco, TX 75034 The Colony, TX 75056 or indirectly responsible 972.668.8000 972.370.4653 for financial management Friday functions will benefit from Breakfast 7:00 am this seminar. There is no Seminar 8:00 am cost for this seminar. Lunch 12:00 pm Register online at GoBaker.com/texas. For more Conclusion 4:00 pm information call Skoshi Heron at 888.990.0010. CPE credits will be earned for your attendance. Member: FINRA and SIPC www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Long Island, NY | 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 4 Legislative 2019 THE MAGAZINE OF THE ALABAMA BANKERS ASSOCIATION, INC. CONTENTS FEATURES 10 Is Liquidity Stress Testing Stressing You Out? of playing defense by reducing staff or cutting services, start playing It shouldn’t come to much of a surprise that liquidity risk management offense by finding savings in your vendor contract negotiations. Not is a major focus for all the regulatory agencies. Since the financial crisis only will you likely find additional funds, you can improve the quality of 2008, the economy has improved and banks have steadily added of the service you receive — and you can do so without changing loans to their balance sheets. As a result of the increase in loan demand, vendors. overall liquidity levels have decreased as more liquidity is now tied up in loan portfolios. 32 PIN Adds Level of Security in Payment Transactions 14 InsurTech: What Bankers Need to Know When authenticating transactions, choosing between one It should come as no surprise that banks and insurance companies are in authentication method or another isn’t a good strategy. A better the midst of a transformation from the traditional systems we’ve come approach is to leverage layered authentication, allowing the PIN to to rely on for many decades to next generation technology. While banks serve as the strongest option because the issuer is authenticating the harness the power of FinTech, insurers too are quickly embracing its consumer’s identity. companion, InsurTech to replace their own legacy systems and improve results. Insurers hold enormous amounts of high quality information 34 Education Spotlight and advanced processing technologies that assist in almost every A total of 23 people from 18 banks traveled to the 4-H Center in insurance task. Columbiana for our BSA/AML Boot Camp led by Dianne Barton. 18 Recap of the 2019 Bank Operations & Management Summit The 2019 Bank Operations and Management Summit held in February brought together bankers in the areas of marketing and public relations, human resources, information technology, operations and DEPARTMENTS management. More than 180 people from 40 banks registered for this 6 From the President’s Desk annual event. Speakers from all over the country fly in to train Alabama Relief from Rising Health Care Costs bankers on the latest trends and developments in the industry. 8 Chairman’s Message Association Sets Legislative Priorities for 2019 Session 20 Time to Focus: The 2019 Regular Session That’s the gap of time between the close of the 2018 Regular Session of 9 Thank You BankPAC Supporters the Alabama Legislature – March 29, 2018 – and the start of the 2019 Many thanks to the banks who have responded to our call for session – March 5. And while the chambers of the State House have commitments to our state political action committee! been pretty quiet during this time frame, it’s been anything but silent in 36 ABA NewsLine Banking News from and for Alabama the worlds of politics and law. 45 ABA Calendar of Events Dates and Locations 28 How Negotiating with Vendors Can be Easier than You Think 45 ABA Live Seminars Dates and Topics Many community banks continue to struggle with how to improve their ABA Telephone & Webinars Dates and Topics bottom line without taking dramatic cost-cutting measures. Instead 46 BANKING TRADITIONS The Magazine of the Alabama Bankers Association 3 CHAIRMAN CHAIRMAN-ELECT VICE CHAIRMAN TREASURER PAST CHAIRMAN PRESIDENT & CEO Jerry Powell David Nast Jimmy Stubbs Steve Smith Tim Compton Scott E. Latham EVP & General Counsel President & CEO President & CEO Chairman, President & CEO President & CEO Alabama Bankers Cadence Bank Progress Bank & Trust River Bank & Trust SouthPoint Bank Traditions Bank Association, Inc. Birmingham Huntsville Prattville Birmingham Cullman Montgomery BOARD OF DIRECTORS Dave Baggett CEO, PrimeSouth Bank, Tallassee Chris Carothers Vice Chairman & President, Citizens Bank, Winfield Leigh Collier Midsouth Region President, Wells Fargo, Birmingham CHAIRMAN Robert Dumas President & CEO, AuburnBank Clark Rainwater Merchants Bank of Alabama, Cullman Steve Foster President & CEO, FirstState Bank, Lineville CHAIRMAN-ELECT Candice Burge Bank of Tuscaloosa Bob Freeman Executive Vice President, BBVA Compass, Birmingham VICE CHAIRMAN Dwight Gamble President & CEO, HNB First, Headland Travis Colquett Brantley Bank & Trust Hope Johnson CEO, Friend Bank, Dothan TREASURER Jeff Kervin President & CEO, Troy Bank & Trust Company Elizabeth Bailey Merchants Bank, Mobile Stratton Lewis, Jr. Chairman, President & CEO, Sweet Water State Bank PAST CHAIRMAN Macke Mauldin President, Bank Independent, Sheffield Josh Barnes FNB Bank, Grant Linwood McClain Regional President, Trustmark Bank, Montgomery DIRECTORS William Mellown President, CCB Community Bank, Andalusia Charlie Breedlove Friend Bank, Dothan Heath Blevins First Jackson Bank, Stevenson Howell Poole President & CEO, Bank of Moundville Stacey Crabtree First Southern State Bank, Stevenson Mike Ross President & CEO, CB&S Bank, Russellville Brian Davis The First National Bank, Brundidge Rodney Rushing Executive Vice President, ServisFirst Bank, Birmingham Byron Heifner FNB of Central Alabama, Tuscaloosa George Hendricks Escambia County Bank, Flomaton Alvis Storey Chairman & CEO, Merchants & Farmers Bank of Greene County, Eutaw Mac McCreless Traders & Farmers Bank, Haleyville Rick Swagler Executive Vice President, Regions Financial Corporation, Birmingham Keith McCullough NobleBank & Trust, Anniston Richard Walters President & CEO, First Cahawba Bank, Selma Matt Meynardie Central State Bank, Calera Shad Williams President & CEO, Cheaha Bank, Oxford Alexes Murillo Traditions Bank, Cullman Matthew Pope Metro Bank, Pell City Jason Windham Bank Independent, Sheffield CHAIRMANS COUNCIL Claude Edwards President, Bryant Bank, Tuscaloosa Katie Windham Robertson Banking Company, Demopolis Rob Finney President & CEO, West Alabama Bank & Trust, Reform CHAIRMANS COUNCIL William Petrey President & CEO, First Citizens Bank, Luverne Chris Latta Farmers & Merchants Bank, Piedmont Jimmy Ramage Chairman, The First National Bank, Brundidge Meredith Nelson Southern States Bank, Birmingham Will Walker Chairman & President, Traders & Farmers Bank, Haleyville 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, President, ABA Services / Inc.. Opinions expressed in this magazine do not necessarily reflect the policies of the Alabama Bankers Association, Inc.. Senior Vice President, Alabama Bankers Association ([email protected]) • Lisa Garrett, Vice President, Accounting and ADVERTISING: Inquiries should be directed to Shelley Hildebrand at the Alabama Bankers Association, Inc.. Rates will Information Systems ([email protected]) • Shelley Hildebrand, Vice President, Marketing and Business Development be furnished on request. The Alabama Bankers Association, Inc. reserves the right to omit any advertising or editorial copy deemed ([email protected]) • Jason Isbell, Vice President, Legal and Governmental Affairs ([email protected])