TENNESSEE BANKER - THE BROADMOOR COLORADO SPRINGS, CO JUNE 17-19, 2018
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Januar y/Februar y 2018 • Volume 106 • Number 1
THE T EN N E S SEE B ANKER
THE BROADMOOR
COLORADO SPRINGS, CO
JUNE 17–19, 2018
PLUS
• Q&A with TN Department
of Economic and Community
Development Commissioner
Bob Rolfe
• Leadership Luncheons Recap
DON’T LET YOUR BANK
BECOME THE NEXT STATISTIC.
MAKE SURE YOU HAVE
THE PROPER CYBER For more information, call
BREACH COVERAGE. Jon Goodson
901-428-1807
jgoodson@financialpsi.com
As YOUR association’s insurance agency, Ted Frizen
call us for answers to all your 865-769-8649
Cyber Security insurance questions. tfrizen@financialpsi.com
211 Athens Way, Ste 100 A wholly owned subsidiary
of the Tennessee Bankers Association
Nashville, TN 37228-1383
1-800-456-5191
FinancialPSI.com
THE TENNESSEE BANKER
Published bi-monthly by the Tennessee Bankers Association
COLIN BARRETT / Editor
TYLER NELSON / Managing Editor
IN THIS ISSUE
January/February 2018 | Volume 106 | Number 1
15 ANNUAL MEETING
TBA's Convention returns to
The Broadmoor in Colorado
Springs, Colo., June 17-19, 2018
22 Q&A WITH BOB ROLFE
Commisioner of Tennessee
Department of Economic and
Community Development
24 EVENT RECAP:
LEADERSHIP LUNCHEONS
Legislators and Young Bankers
meet up across the state
38 ENDORSED PARTNER: SIGNiX
E-Sign: Will that be one click
or two?
15
22
24
38
MORE IN THIS ISSUE
6. From the Executive Office—Colin Barrett:
2017 closed with notable wins for banking
industry
8. TBA Online OFFICERS
LEE M. MOSS, Chairman
10. On the Hill—Amy Heaslet: Expect focused,
straightforward 110th General Assembly
10 Franklin Synergy Bank, Murfreesboro/Franklin
12. BankPac—BankPac achieves another JOHN MUSE, Chairman-elect
successful year Farmers State Bank, Mountain City
R. MOLITOR FORD, Vice Chairman
15. TBA’s 128th Annual Meeting
Commercial Bank & Trust Co., Memphis
• Reserve your room at The Broadmoor
• Learn about guest activities
• Explore all Colorado Springs STAFF
has to offer ADMINISTRATION
22. Q&A—Bob Rolfe, Commissioner of the COLIN BARRETT, President/CEO
Tennessee Department of Economic and
Community Development 40 STACEY LANGFORD, Sr. Vice President
of Membership
24. Event Recap: Leadership Luncheons STEVE CURTIS, Vice President
30. Guest Column—Patrick J. Cole, Nicho- of Information Technology
las D. Moore, Timothy J. Reimink, Crowe SHARON JUSTICE-McCRAY, Vice President
Horwath LLP: Bank compensation survey of Human Resources/Facilities
results
PENNY L. POWLAS, Executive Assistant,
33. ICBA Column—R. Scott Heitkamp: Looking Administration/Legal
back at a momentous year T’LANIE LUU, Member Services Specialist
35. Banker to Banker—TBA staff members SANDRA JOHNSON
highlight must-do's for 2018 Training Center Coordinator
36. TBA Endorsed Partner—Vanessa
42
Stanfield, Affinion Group: Building a risk ACCOUNTING/INSURANCE
management culture
ANGELA D. GRIFFIN, CPA
38. TBA Endorsed Partner—S. Scott Sargent, Executive Vice President/CFO
Baker Donelson: SIGNiX E-Sign: Will that be
MIKE AILINGER, Staff Accountant
one click or two?
SHEMEKA GREER, Accounts Receivable Clerk/
40. TBA Endorsed Partner—Dimitris Rous- Accounts Payable Clerk
seas, Compliance Alliance: Start new year
reviewing overdraft policies and proce-
dures LEGAL/GOVERNMENT RELATIONS
42. Event Recap: Young Bankers Division 46 AMY HEASLET, Sr. Vice President/
General Counsel
Titans Tailgate
44. New Associate Members
EDUCATION
46. People on the Move/Bank Notes/Com-
DEBBIE M. BRICKLES, IOM
munity Corner
Sr. Vice President of Education
50. Featured Events
MONIQUE JENKINS
52. Employment Opportunities Education Coordinator
Januar y/Februar y 2018 • Volume 106 • Number 1
T ENNES S EE B ANK E R ON THE COVER
54. From the Vault
THE
Colorado Springs, Colo. is the SHEENA FRECH
55. TBA Professional Development backdrop for the 2018 Annual Education Coordinator
Calendar Meeting. Pictured is the
Garden of the Gods, one
example of the natural COMMUNICATIONS
beauty this year's location TYLER NELSON, Director of Communications
has to offer. Register today
MATT RADFORD, Creative Director
at TNBankers.org/annual
COVER PHOTO: Shutterstock.com LILA GRIFFIN, Proofreader
CONTRIBUTORS
The Tennessee Banker (ISSN 0040-3199) is published bi-monthly by the Tennessee Bankers Association, 211 Athens Way, KEITH MILES, Partner,
Ste 100, Nashville, TN 37228-1381; telephone 615-244-4871. Advertising rates available upon request. Subscriptions: McNeely Pigott & Fox Public Relations
$40.00 per year for TBA members; $55.00 for nonmembers; single copies, $6. Tennessee residents add 9.25% sales tax.
Periodicals postage paid at Nashville, TN. POSTMASTER: send address changes to The Tennessee Banker, 211 Athens Way, ROGER SHIRLEY, Editorial Director,
Ste 100, Nashville, TN 37228-1381. McNeely Pigott & Fox Public Relations
Copyright © 2018, Tennessee Bankers Association; all rights reserved. The Tennessee Bankers Association disclaims all
responsibility for opinion expressed in addresses, papers, or communications published in The Tennessee Banker unless
such opinion has been endorsed by the Tennessee Bankers Association.
4 | January/February 2018 | TNBankers.org
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FROM THE E XECUTIVE OFFICE
2017 closed with notable
wins for banking industry
COLIN BARRETT
President/CEO, Tennessee
Bankers Association
THREE Forget March. For the banking indus- full speed. While the ramifications will be
try, November was the month that came seen in time, a simplified tax code and lower
THINGS in like a lion. From bi-partisan regulatory corporate rate will certainly be a boost to the
TO DO relief legislation to tax reform to movement at economy in the short term. Though many in
the federal agencies, the holiday season deliv- the business community will celebrate the tax
ered a good number of overdue gifts for the plan, it is frustrating that the Senate Republi-
1. banking industry. cans left $27 billion on the table by not taxing
Engage in the 2018
Tennessee legislative credit unions that are over $1 billion in assets.
session by participat- Regulatory Relief Leveling the playing field by addressing the
ing in our bi-weekly Since the passage of Dodd-Frank, the TBA largest credit unions was a concentrated effort
conference calls. For
has advocated for common sense relief for by the banking industry, and I appreciate all
more information,
email Amy Heaslet at Tennessee’s banks. Attempts by former Senate of you who submitted signatures for our tax-
aheaslet@TNBankers.org. Banking Chairman Richard Shelby (R-AL) to ation letter. Ultimately the Republicans in the
cram through partisan relief were ineffective Senate Finance Committee did not feel that the
2. in 2016. And when Ranking Member Sherrod “fairness” that was spoken of throughout this
Register for the 2018 Brown (D-OH) walked away from discussions process was actually a priority of their plan.
Annual Meeting at The in October, it looked like the industry was back Their actions reminded me of my favorite
Broadmoor. This year’s
Convention is already to square one. Fortunately, Chairman Mike George Orwell quote, “All animals are created
shaping up to be one Crapo (R-ID) and a group of eight Democrats equal, some are just more equal than others.”
of our strongest as we and one Independent presented a regulatory TBA will continue to fight for equality in the fi-
return to this popular reform deal on November 13 that addresses nancial services industry, but the tax plan was
destination. For more many of the issues the Association has advo- a missed opportunity in Washington.
information, visit
TNBankers.org/annual. cated. These include QM and HMDA relief,
charter flexibility for federal savings associa- Credit Unions
3. tions, broadening of the 18-month exam cycle, Speaking of credit unions, Tennessee At-
Train your talented relief on stress testing and increasing the SIFI torney General Herbert Slatery delivered a
staff by having them threshold, and more. Only eight Democrats favorable opinion on November 28 stating
join us over the next and/or Independents are needed to move the that it would be unconstitutional for credit
six weeks for The
Southeastern School of
legislation through the Senate so the prospects unions to accept public deposits. The impact
Advanced Commercial are strong. Bi-partisan legislative efforts are of Slatery’s opinion is much greater than just
Lending, Essentials of always the most constructive way to move leg- here in Tennessee. A national effort by the
Commercial Lending, islation, and I hope we will see more “across credit union industry to get state legislatures
or The Southeastern the aisle” efforts in the years to come. to pass legislation to accept public deposits
School of Consumer
Credit. For more
has gained traction in recent years with more
information, contact Tax Reform than 25 states now permitting this. Since the
Debbie Brickles at Depending on who you ask, the Republi- opinion, TBA’s Amy Heaslet has been working
dbrickles@TNBankers.org. can tax reform package is either a gift to the with other state bankers associations to see if
rich or the chance to get the economy going their state constitutions have similar language.
6 | January/February 2018 | TNBankers.org
CFPB the banking industry as a political football. I
After months of speculation, Richard Cor- continue to be hopeful, if not optimistic, that
dray left the CFPB the week of Thanksgiv- the appointment of Mulvaney will help the
ing. Before resigning, he appointed Leandra Democrats see the value of a commission over
English, a bureaucrat with no enforcement, an executive director. After all, banks are best
supervisory, or legal experience, to deputy able to serve their customers when they have
director. According to the Dodd-Frank Act, consistency from their federal regulators.
the deputy director leads the agency in the ab-
sence of the executive director. However, with Overall, the end of 2017 was a good stretch
disputes over the language, President Trump for the banking industry. But there is still a
appointed Office of Management and Budget lot of work to do. Working together, I look for-
Director Mick Mulvaney as acting director of ward to an even better 2018.
the CFPB, an action upheld by a federal judge.
Mulvaney, who once referred to the CFPB
as a “joke,” has acted quickly to put a freeze
on rules implemented under Cordray’s lead-
ership. Few in our industry are mourning the
loss of Cordray, but it would be nice not to have
TNBankers.org | January/February 2018 | 7
TBA Online
We’re on social media. Follow us
for the latest in all TBA news,
events, and much more.
/TNBankers @TNBankers tnbankers tennessee-bankers-association TNBankers.org
Tennessee Bankers
linkedin.com/company/2700383
November 15
Congrats to the inaugural graduating
class of The Southeastern School
of Banking Branch Management!
VISIT TNBANKERS.ORG TBA WEBINARS
Register for these webinars and more at
TNBankers.org/calendar
TBA’s new blog covers Tennessee’s most
important and interesting bankers,
emerging trends in the industry, and more. January 24— Same Day ACH Final Phase, Effective
Check it out at TNBankers.org/news/blog.
March 15, 2018: Funds Availability Requirements
Although Phases 1 and 2 of Same Day ACH are completed, the deadline
to comply with Phase 3 (funds availability requirements) is March 15,
2018. This webinar will focus on the new funds availability requirements,
provide an in-depth overview of Same Day ACH changes thus far includ-
ing usage statistics and most common use cases, and address what your
bank can expect in the future with Same Day ACH and faster payments.
January 30—Exercising the Right of Setoff on Deposit
Accounts & Loans
Your institution has the right to set-off a depositor’s account for a debt
owed if certain legal requirements are satisfied. This webinar will explain
these requirements and address the steps that must be taken before
exercising the right of set-off. If a debtor defaults on a loan, when can your
institution apply money from the debtor’s account to pay the loan? Does
the debtor have to be notified beforehand? What if the debtor’s account
has more than one owner? Learn the answers to these questions and more.
January 31—Job-Specific Compliance Training for the
Frontline
Frontline staff are the face and voice of your bank. Along with
processing transactions and assisting account holders, they have
specific policies, procedures, and processes to follow—many of which
are designed to comply with legal and regulatory requirements.
This webinar will provide the who, what, where, when, and why of
the frontline’s tasks to explain how compliance interconnects with
specific duties and responsibilities.
8 | January/February 2018 | TNBankers.org
Credit
CREDIT CONFERENCE, one of the
Tennessee Bankers Association’s
most anticipated events, annually
attracts more than 600 commercial
loan officers, loan support personnel,
CONFERENCE
and both senior and executive-level
management. Join us!
Register:
FEBRUARY 22 & 23, 2018 TNBankers.org/credit
OMNI HOTEL NASHVILLE
Book Your Room:
http://bit.ly/2jLP0Gz
Expert Speakers Include
American politics are crazier than ever. Steffen Schmidt, PhD,
aka “Dr. Politics,” drills down some of the key issues facing
the nation.
Former Tractor Supply Company CEO Joe Scarlett
shares business leadership skills that really count
and how they can help you be more successful.
TDFI Commissioner Greg Gonzales provides an update on the
current state of Tennessee banking and what is needed for our
state’s banks to thrive in today’s environment.
David Kemp breaks down the necessity of pricing
and structuring your loan portfolio for growth
and profitability.
Visit TNBankers.org/credit
for the full agenda. #TBAcredit
ON THE HILL
Expect focused, straightforward
110th General Assembly
The second session of the 110th General face uphill battles, as some in leadership are
Assembly convened on January 9, 2018, echoing the concerns of the Department of
with important state business and a bud- Revenue about going too far and eroding the
get to pass. With that said, there’s as much state’s tax revenue base.
talk about the elections and future changes in On the banking front, legislation to expand
leadership they will bring as there is about the the list of eligible collateral for public depos-
issues to be addressed during the session. its will be TBA’s priority issue in 2018. Banks
AMY HEASLET
Senior Vice President/
Because it is an election year and legislators from small to large have expressed interest in
General Counsel, cannot accept political contributions during pledging bonds issued by other states or other
Tennessee Bankers session, there’s incentive for members to get states’ municipalities as collateral for public
Association in, get down to business, and conclude as soon deposits. This is specifically prohibited in state
as it’s practical so they can re-focus on their law, so TBA, pending approval of the Treasur-
campaigns. er’s Office and State Collateral Pool Board, will
Elections aside, this year in the General present legislation to allow for this.
Assembly we will see renewed focus on two This will directly benefit banks, and the local
statewide priorities—enhancing Tennessee’s governmental entities they do business with,
workforce and addressing the opioid crisis. by allowing them to pledge higher yielding
Although the state has made significant steps out-of-state bonds that pose no more risk than
towards increasing the number of college bonds issued by the state of Tennessee and its
graduates, there are concerns that Tennessee municipalities.
must increase its skilled workforce in order to A related issue TBA was concerned with
continue attracting new businesses to the state that could arise this year is an effort by credit
and remain economically competitive with unions to accept public deposits. However, as
other states. Colin Barrett mentioned in his editorial on
Businesses across Tennessee, banks includ- page six, Tennessee Attorney General Herbert
ed, are struggling with opioid and other sub- Slatery in late November issued an opinion
stance abuse problems—in the form of current stating that it would be unconstitutional for
employees and difficulty hiring new ones. legislation to allow a county, city, or town to
Although a single piece of legislation cannot deposit funds in a credit union.
“fix” this problem, the opioid crisis will be a TBA’s government relations team will re-
hot topic during session and in campaigns. view all bills filed this year—expected to be
Although not specific to banking, we con- at least 1,500—and work to support, amend, or
sistently hear about how these two issues af- defeat any measures that could have an impact
fect banks directly and also their commercial on our member banks and their customers
customers. Therefore, TBA will be at the table and communities. Oftentimes, defense is more
during conversations about how to address important than offense when it comes to ad-
these issues and support efforts to do so. dressing legislative issues.
The perennial issue of tax cuts will also sur- Your involvement in the legislative process
face this year, with some members interested and outreach to your legislators advocating to
in reducing the F&E tax while others will pur- support or oppose banking-related bills will
sue elimination of the professional privilege be critical in maintaining our continued suc-
tax. However, efforts to reduce these taxes will cess on Capitol Hill.
10 | January/February 2018 | TNBankers.orgI encourage you to stay-up-to-date with our
legislative efforts by reading our weekly news-
letter, This Week, and, for more in-depth cover-
age of the issues, participate in our bi-weekly
conference calls, held every other Friday
during session.
Finally, please join us the evening before
Credit Conference for Legislative Reception on
February 21. Highly attended by members of
the state legislature, this event provides a great
opportunity for bankers to reinforce their re-
lationships with elected officials and get to Speaker of the House of Representatives Beth Harwell, Rep. Pat Marsh, and Bill
know members from other areas of the state. Marsh of First Commerce Bank, Lewisburg, visited at the 2017 Legislative Reception.
PHOTO: BROOKE RAINEY
JOIN US THE NIGHT BEFORE CREDIT CONFERENCE FOR TBA'S
Legislative Reception
WEDNESDAY, FEBRUARY 21 | 5:00–7:00 P.M. | $50 PER PERSON
WAR MEMORIAL AUDITORIUM | 301 6TH AVE NORTH, NASHVILLE
Register online at TNBankers.org or contact Penny Powlas at ppowlas@TNBankers.org
TNBankers.org | January/February 2018 | 11B A N K PA C
BankPac achieves
another successful year
BankPac eclipses $200,000 mark for fifth consecutive year.
TBA BankPac, the political action to remain one of the largest contributing
committee of TBA, is the exclusive PAC business PACs in the state.
dedicated to representing the banking As of December 18, the following 121
AMY HEASLET
industry in Tennessee. contributors gave $207,042.
Senior Vice President/
General Counsel, In recent years, TBA has grown the total For more information about BankPac or
Tennessee Bankers dollars contributed and increased the number to make a contribution, please contact Amy
Association of institutions that give, which allows BankPac Heaslet at aheaslet@TNBankers.org.
MORE ABOUT 2017 BANKPAC CONTRIBUTORS
BANKPAC BANKS Coffee County Bank, Manchester
Andrew Johnson Bank, Greeneville Commercial Bank, Harrogate
For more information Atlantic Capital Bank, N.A., Chattanooga Commercial Bank & Trust Co., Paris
about BankPac or to BancorpSouth Bank, Jackson Community Bank, Lexington
make a contribution, Bank of America, N.A., Nashville Community Bank & Trust, Ashland City
please contact The Bank of Fayette County, Rossville Community National Bank, Dayton
Amy Heaslet at Bank of Frankewing, Frankewing Decatur County Bank, Decaturville
aheaslet@TNBankers.org. Bank of Gleason, Gleason Evolve Bank & Trust, Memphis
The Bank of Jackson, Jackson F&M Bank, Clarksville
Bank of Lincoln County, Fayetteville Farmers & Merchants Bank, Adamsville
The Bank of Milan, Milan The Farmers & Merchants Bank, Dyer
Bank of Nashville, a div. of Synovus, Nashville The Farmers Bank, Portland
Bank of Perry County, Lobelville Farmers State Bank, Mountain City
Bank of Putnam County, Cookeville First Alliance Bank, Cordova
Bank of Ripley, Ripley First Bank of Tennessee, Spring City
Bank3, Memphis First Century Bank, Tazewell
BankTennessee, Collierville First Citizens National Bank, Dyersburg
BB&T, Knoxville First Commerce Bank, Lewisburg
CapStar Bank, Nashville First Community Bank of Tennessee, Shelbyville
Carroll Bank and Trust, Huntingdon First Farmers and Commercial Bank, Pikeville
CBBC Bank, Maryville First Farmers and Merchants Bank, Columbia
Centennial Bank, Trezevant First Freedom Bank, Lebanon
Central Bank, Savannah First National Bank of Manchester, Manchester
Citizens Bank, Elizabethton The First National Bank of Oneida, Oneida
Citizens Bank, Hartsville First National Bank of Pulaski, Pulaski
Citizens Bank, New Tazewell First Peoples Bank of Tennessee, Jefferson City
Citizens Bank, Carthage First Vision Bank of Tennessee, Tullahoma
Citizens Bank & Trust Company of Grainger County, First Volunteer Bank, Chattanooga
Rutledge FirstBank, Nashville
Citizens Bank of Lafayette, Lafayette Franklin Synergy Bank, Franklin
Citizens National Bank, Sevierville Greenfield Banking Company, Greenfield
Citizens Savings Bank and Trust Company, Nashville The Hardin County Bank, Savannah
Citizens Tri-County Bank, Dunlap Heritage Bank & Trust, Columbia
12 | January/February 2018 | TNBankers.orgTBA's Amy Heaslet
with Tommy Bates,
ICBA's Karen Thomas
and Joe Schneider, and
TBA's Colin Barrett at a
BankPac check delivery
in September.
Highland Federal Savings and Loan Association, SunTrust Bank, Nashville
Crossville Tennessee Bankers Association, Nashville
Home Banking Company, Selmer Tennessee State Bank, Pigeon Forge
Home Federal Bank Corporation, Middlesboro, Ky. TNBANK, Oak Ridge
Home Federal Bank of Tennessee, Knoxville Traditions First Bank, Erin
Homeland Community Bank, McMinnville TriStar Bank, Dickson
HomeTrust Bank, Morristown Triumph Bank, Memphis
InsBank, Nashville TruPoint Bank, Johnson City
Johnson County Bank, Mountain City Trustmark National Bank, Memphis
Legends Bank, Clarksville UBank, Jellico
Macon Bank and Trust Company, Lafayette U.S. Bank, N.A., Nashville
Mountain Valley Bank, Dunlap Volunteer Federal Savings Bank, Madisonville
Newport Federal Bank, Newport Volunteer State Bank, Portland
Paragon Bank, Memphis Wayne County Bank, Waynesboro
Peoples Bank, Clifton Wilson Bank & Trust, Lebanon
Peoples Bank & Trust Company, Manchester
Peoples Bank of East Tennessee, Madisonville ASSOCIATE MEMBERS
Peoples Bank of the South, LaFollette Banc Card of America, Inc, Nashville
The Peoples Bank, Sardis Banks Street Partners, LLC, Atlanta, Ga.
Pinnacle Bank, Nashville Equias Alliance, Memphis
Progressive Savings Bank, Jamestown Financial Products and Services Inc., Nashville
Regions Bank, Nashville First National Bankers Bankshares Inc., Birmingham
Reliant Bank, Brentwood The Marathan Organization, Virginia Beach, Va.
Renasant Bank, Nashville Mauldin & Jenkins CPA, LLC, Chattanooga
Security Bank and Trust Company, Paris Olsen Palmer, Washington, DC
Security Federal Savings Bank of McMinnville, PYA, Knoxville
McMinnville TIB-The Independent BankersBank, Brentwood
Sevier County Bank, Sevierville Watkins Uiberall, PLLC, Memphis
Simmons Bank, Goodlettsville
SouthEast Bank, Farragut
Southern Bank of Tennessee, Mount Juliet
Southern Community Bank, Tullahoma
Sumner Bank & Trust, Gallatin
TNBankers.org | January/February 2018 | 13How can you improve bank exams?
TRANSPARENCY.
ACCOUNTABILITY.
PREDICTABILITY.
Tired of exam surprises?
By taking our survey you are providing anonymous feedback
that will be used to hold regulators to consistent standards.
More than 3000 bankers have already participated.
Take a stand. Take the survey.
Tennessee Bankers Association
a proud member of
Take the RFI survey at www.allbankers.org
*
*RFI = Regulatory Feedback InitiativeTHE setting sun is the defining moment of the
day at for the Tennessee Bankers Associa-
tion’s 128th Annual Meeting location—The Broadmoor
in Colorado Springs, Colo.
The Five-Star luxury hotel offers an assortment of
family-friendly fun, luxurious amenities, and world-
class dining, but the picture-perfect views of the blue-
THE BROADMOOR green slopes of Cheyenne Mountain are magnificent.
This Annual Meeting will elevate your success. Hear
COLORADO SPRINGS, CO from business leaders, strategists, and experts about
what to expect in the banking industry. Tee off at
JUNE 17–19, 2018 the award-winning Broadmoor Golf Club, set in the
Cheyenne Mountain foothills.
Relax in the heated, “zero-entry” infinity pool,
For more information and to register, complete with stunning views of Cheyenne Lake and
please visit TNBankers.org/annual the mountains.
TNBankers.org | January/February 2018 | 15THE BROADMOOR
A LUXURY RESORT
WITH A SPIRIT OF ADVENTURE
Mountain View Room at The Spa at Broadmoor The Garden Room at LaTaverne The Infinity Pool on Cheyenne Lake
16 | January/February 2018 | TNBankers.orgONE
of the top five-star resorts in the U.S., The
Broadmoor sits against the magnificent blue-
green slopes of Cheyenne Mountain, like a
grand hotel in the Alps. A luxury resort with a spirit of adventure,
everything here is exquisite: acres of lush grounds and a lake, a
glimmering pool, world-class golf, celebrated bars and restaurants, an
incredible spa, and elegant lodging. Here are a few of the many high-
lights you can expect to enjoy.
DISCOVER THE CELEBRATED RESTAURANTS AND LOUNGES
From the day The Broadmoor first opened in 1918, founder Spencer
Penrose set out to create a dining experience that celebrates modern
innovation while honoring the culinary traditions of the American
West. A hundred years later, that passion for inspired cuisine continues
at The Broadmoor’s award-winning restaurants and lounges.
The Broadmoor showcases 10 restaurants as well as 10 cafés and
lounges that range from Colorado’s only Forbes Five-Star, AAA Five
Diamond restaurant (Penrose Room) to their casual Pool Café, and the
Espresso News coffee shop.
EXPERIENCE THE FORBES FIVE-STAR SPA
The Spa at The Broadmoor is known internationally for their innova-
tive services and integrated approach to health and relaxation. Between
treatments, relax in the Spa’s dry saunas, steam rooms, aromatherapy
rooms, or fireplace lounges. The Mountain View Room overlooks our
lush golf course and the Rocky Mountains beyond, offering an addi-
tional space to enjoy quiet reflection and light refreshments.
FUN FOR THE WHOLE FAMILY
At The Broadmoor, there are endless adventures and activities for
every age and interest. Family- and child-friendly activities include:
Outdoor Pool
The 11,000-square-foot infinity-edge swimming pool, located at the
north end of Cheyenne Lake, features Slide Mountain waterslides, a
children’s pool, and two 14-person whirlpools.
Seven Falls
Experience the beauty of Colorado’s most spectacular waterfall
and see for yourself why it’s known as “the Grandest Mile of Scenery
in Colorado.” With scenic hiking trails, gift shops, and even its own
restaurant, Seven Falls is the ultimate family adventure.
Horseback Riding
Old Stage Riding Stables offer a unique western horseback riding
experience. The Broadmoor offers guided pony rides for children ages
eight and under, and small animals just right for petting.
TNBankers.org | January/February 2018 | 17FUN FOR EVERYONE
ANNUAL MEETING ACTIVITIES
ARE SURE TO DELIGHT
TBA GOLF TOURNAMENT
members always look
forward to the special AT THE BROADMOOR’S WEST COURSE
events associated with Monday, June 18 – 1:30 p.m. Shotgun Start
Annual Meeting. It is in these settings that Registration Fee - $175
bankers from around the state forge relation- Thanks to Pathway Lending’s sponsorship,
ships and bonds that serve them year-in and green fees are lowered from $225.
year-out in their careers.
Are you interested in participating in these Set in the Cheyenne Mountain foothills
events? Visit TNBankers.org/annual to register. of Colorado Springs, The Broadmoor Golf
Club is consistently ranked among the best
in the world. Their three iconic courses were
designed by some of golf’s greatest names
and have played host to numerous national
tournaments, including the U.S. Women’s
Open and PGA Cup Matches.
Annual Meeting golfers will face the West
Course, which features rolling fairways,
multi-level greens, and demanding haz-ards—making it stunning yet formidable. At
6,800 feet, this 18-hole course has doglegs and
steeply-angled greens and offers breathtaking
views of both the mountains and Colorado
Springs.
The West Course plays tighter off the tee,
with more heavily tree-lined holes than the Cheyenne Mountain Zoo
East Course and also gives players an array
of spectacular approach shots. Don’t let the CHEYENNE MOUNTAIN ZOO TOUR
stunning mountain views distract you; our Tuesday, June 19, 1:00 p.m. – 4:00 p.m.
West Course may look like a postcard, but Cost: $114 per person
it offers a very challenging and rewarding
round of golf. Lions and tigers and bears, oh my! Chey-
Teams will play in a four-person shamble enne Mountain Zoo is the perfect excursion
format and are eligible for the following when you are ready to get wild! A knowl-
prizes: 1st and 2nd in 3 flights, closest-to-pin, edgeable tour guide will lead you through
and longest drive. the zoo on a two-hour tour that covers the
majority of the zoo’s expansive acreage.
The highlight of your zoo excursion is an
exclusive interaction with a zookeeper and
an animal exhibit. Finish your amazing zoo
experience with a trip on the Mountaineer
Sky Ride, a chair lift that soars over some of
the zoo’s incredible habitats.
FOOTHILLS JEEP TOUR
Tuesday, June 19, 1:00 p.m. – 4:00 p.m.
Cost: $121 per person
Explore the foothills above Colorado Springs
by an open-sided, 4-wheel drive Jeep! Within
minutes, you will be on a winding mountain
road that will take you through spectacular
overlooks of Colorado Springs, Cheyenne Can-
yon, Manitou Springs, and Garden of the Gods.
Sight seeing in a jeep is a phenomenal way to
see the extraordinary beauty of Colorado.
SOARING ZIPLINE ADVENTURE
Tuesday, June 19, 1:00 p.m. – 4:00 p.m.
Cost: $191 per person
This exciting zipline adventure lets you
soar over the amazing landscape around the
famed Seven Falls. Experienced guides make
this a fun and meaningful experience for both
novice and experienced zip-liners.
TNBankers.org | January/February 2018 | 19COLORADO SPRINGS
THIS SCENIC CITY
OFFERS SOMETHING FOR EVERYONE
A GARDEN OF THE GODS
crossroads for historians, sports-
men, and foodies, Colorado Springs www.gardenofgods.com
offers a delightful mix of Western This gorgeous vein of red sandstone (about
charms and wholesome attractions. 290 million years old) appears elsewhere
Sunny skies and crisp mountain air make it a along Colorado’s Front Range, but the exqui-
perfect place for a golf outing, adventures for sitely thin cathedral spires and mountain
the family, and much more. backdrop of the Garden of the Gods are
The Springs has become leisure tourism particularly striking. Explore the network of
destination. With an incredible mountainous paved and unpaved trails, enjoy a picnic and
backdrop, the city has everything, from an watch climbers test their nerve on the some-
excellent fine-arts museum to the historic times flaky rock. In the summer, Rock Ledge
Air Force Academy and an up-and-coming Ranch, a living history museum near the park
restaurant scene. entrance, is worth a visit for those interested
in the lives of Native Americans and 19th-cen-
tury homesteaders in the region.
Garden of the GodsRED ROCK CANYON OPEN SPACE
www.redrockcanyonopenspace.org
A former quarry and part of the sandstone
vein that runs through the Garden of the
Gods, this 787-acre park offers hiking, moun-
tain biking, and rock climbing, without all the
tourist hoopla.
If you want to link up with a longer hike,
the Section 16 trail leads out of the southwest-
ern corner of the park on a nice 6-mile loop.
COLORADO SPRINGS FINE ARTS CENTER
www.csfineartscenter.org
Fully renovated in 2007, this expansive
museum and 400-seat theater originally
opened in 1936. The museum’s collection is
surprisingly sophisticated, with some terrific
Latin American art and photography, and
great rotating exhibits that draw from the Colorado Springs Fine Arts Center
23,000 pieces in its permanent collection.
US AIR FORCE ACADEMY
www.usafa.af.mil
A visit to this campus, one of the high-
est-profile military academies in the country,
offers a limited but nonetheless fascinating
look into the lives of an elite group of cadets.
The visitor center provides general back-
ground on the academy; from here you can
walk over to the dramatic chapel (1963) or
embark on a driving tour of the expansive
grounds.
MONEY MUSEUM
www.money.org/money-museum
We’re willing to bet there are more than a
few bankers who are into coin collecting. This
museum has gold coins from the early 19th
century, early commemorative coins from the
turn of the 20th century, and a few vintage
greenbacks, too.
US Air Force Academy
TNBankers.org | January/February 2018 | 21Q& A
Q&A with Bob Rolfe
Commissioner, Tennessee Department of Economic
and Community Development
Bob Rolfe was sworn in on March 1, 2017 by Governor Bill Haslam to What do you see as Tennessee’s greatest
serve as the commissioner of the Tennessee Department of Economic strength when it comes to economic growth?
and Community Development. The department is responsible for And what are our biggest challenges?
recruiting business and industry to the state as well as Tennessee’s In regards to economic growth and job cre-
overall economic growth. ation, one thing we’ve been challenged with
Rolfe brings to the role more than three decades of experience in over the past few years is automation. This is
business and investment banking in Tennessee. Nearly a year into his a trend that’s occurring throughout the nation,
role at TNECD, The Tennessee Banker caught up with Commissioner not just in Tennessee, so states across the na-
Rolfe to learn about his strategy at the department, and the tion are all facing the same challenge. Compa-
nies are becoming more efficient, which means
opportunities and challenges the state will face in the coming year.
fewer jobs, but the good news is that these
jobs are higher quality, higher wage jobs. As
a state, we aim to attract high quality, family
Department of Economic
and Community Devel-
opment Commissioner
Bob Rolfe, Gov. Bill
Haslam, and Hörmann,
LLC officials announced
in October that the com-
pany will invest nearly
$64 million to establish
a manufacturing facility
in Sparta.
PHOTO PROVIDED: TNECD
COMMISSIONER'S OFFICE
22 | January/February 2018 | TNBankers.orgwage jobs and one of our greatest strengths Haslam’s term. We will also continue our ef-
are workforce development programs like forts in rural Tennessee by assisting our com-
Tennessee Promise and Tennessee Recon- munities as well as encouraging job creation
nect. These programs are providing pathways in these areas of our state. In 2016, 40 percent
to education for all Tennesseans and show of our projects were rural and this year that
companies that we are proactively equipping number has increased to 45 percent. Looking
our workforce with the skills they need to fill back to 2012, that number was only 32 percent,
specialized positions. We were the first state in so you can see how this steady increase of proj-
the nation to develop programs like these and ects filtering to our rural regions is helping to
many states have since attempted to recreate spread success throughout our state.
similar programs using this model. In recent years TNECD has implemented
several initiatives to help some of the more
rural communities grow economically. What
What are the top 3 priorities for your is working well and what areas still need im-
department in 2018? provement?
As we enter the final year of the Haslam Before my time began at TNECD, the depart-
administration, we are going to continue to ment created the Community and Rural De-
focus on the priorities our department has velopment division in 2015. The team hosted
concentrated on since 2011. Job recruitment listening sessions throughout the state and de-
and expansion are always a top priority of our veloped programs based on community feed-
department, but in 2018 we are going to focus back. We continue to develop those programs
higher quality, higher wage jobs. Another big and make changes each year to in order to
focus of ours will be on the Memphis Regional accommodate each community’s needs. We’ve
Megasite. The Megasite is a valuable asset to also placed a great emphasis on industrial site
the state, and we would love to see a company development, development of tourism infra-
locate on the Megasite before the end of Gov. structure and downtowns, and moving our
counties out of distress, so we are consistently
focusing our efforts on helping Tennessee’s
rural communities succeed.
Tennessee banks are the economic
engine of our state. How can Tennessee
banks help TNECD accomplish its goals?
Tennessee banks are great partners to the
State of Tennessee. By supporting local econ-
omy and assisting businesses throughout the
state, Tennessee banks can help our depart-
ment accomplish its goals.
If you could draw up your crowning
accomplishment as TNECD Commissioner,
what would it be?
I started with the department in March, so
it hasn’t quite been a full calendar year since I
began. It was a seamless transition from Com-
missioner Boyd thanks to the one hundred
ECD colleagues I have the privilege of work-
ing with on a daily basis. We have another year
ahead of us, and we have a robust pipeline full
of outstanding projects, so check back with me
again in a year and I’ll have a few great accom-
plishments to share with you that were made
possible by the exceptional team at TNECD.
TNBankers.org | January/February 2018 | 23E VENT REC AP: LE ADERSHIP LUNCHEONS
Young Bankers network, meet
legislators at Leadership Lunches
THANK YOU In November, the Young Bankers Divi-
sion hosted seven Leadership Luncheons
TO OUR around the state. These events offer bank-
STATEWIDE ers the opportunity to network with industry
peers from the area and hear from Young
SPONSOR Bankers Division Leadership and TBA about
priorities and initiatives of the association.
With Alexander Thompson Arnold CPAs
serving as the statewide sponsor of the lun-
cheons, attendees also have the opportunity to
hear from influential local legislators who each
shared their perspectives on issues of impor-
tance for the legislative session convening in
January.
The Tennessee Bankers Association is
proud of its long history of an engaged young
bankers division, and the strong turnout for
luncheons across the state is evidence of the
bright future for not just the division but the
2018 YOUNG Tennessee banking industry as a whole. To be
BANKERS added to the distribution list for Young Bank-
ers information and events, contact Stacey
EVENTS Langford, slangford@TNBankers.org.
March 13
Day on the Hill
State Capitol, Nashville
April 15-17
Leadership Convention
The Peabody, Memphis
24 | January/February 2018 | TNBankers.orgVisit TNBankers.org
for more photos
1. Sen. John Stevens
talked with TBA
members in Jackson.
PHOTOS BY STACEY LANGFORD
1.
TNBankers.org | January/February 2018 | 25E VENT REC AP: LE ADERSHIP LUNCHEONS
1.
1. In Memphis, members came out to listen to Sen.
Lee Harris. 2. Matt Wiltshire, Director of the Mayor’s
Office of Economic and Community Development
for the Metropolitan Government of Nashville and
Davidson County, discussed how the mayor is handling
the growth of Nashville at the TBA luncheon. 3.
In Chattanooga, Rep. Ron Travis took time to meet
members in his area.
PHOTOS BY STACEY LANGFORD
26 | January/February 2018 | TNBankers.org3.
2.
TNBankers.org | January/February 2018 | 271. Rep. Kelly Keisling was the speaker at the Cookeville
luncheon. 2. Sen. Jon Lundberg spoke with attendees
at the Kingsport luncheon. 3. At the Knoxville
luncheon, attendees heard from Rep. Jason Zachary.
PHOTOS BY STACEY LANGFORD
1.
2.
28 | January/February 2018 | TNBankers.org3.
Visit TNBankers.org
for more photos
TNBankers.org | January/February 2018 | 29GUEST COLUMN
Bank compensation
survey results
Tennessee banks foresee rising employment and steady salary growth.
A new survey of bank executives national numbers in total, they differed in
suggests that bankers in Tennessee could one interesting way: Tennessee bankers were
be experiencing slightly lower employee less likely to expect staffing increases due to
turnover rates and slightly less upward expansions or acquisitions (only 6 percent
pressure on salaries than their counter- compared to 13.2 percent nationally) and were
parts elsewhere. Nevertheless, the competi- more likely to expect staffing increases due to
tion for talented employees is likely to remain normal growth (47.8 percent compared to 41.7
PATRICK J. COLE strong in the near term. percent nationally).
Benefit Plan Senior Every year, Crowe Horwath LLP surveys
Manager in Tax Services,
financial services organizations through- Employee Turnover
Crowe Horwath LLP
out the United States about compensation In addition to expected employment
trends, benefits, incentives, and other human growth, other survey responses also suggest
resource issues. The responses to the 2017 the general upward pressure on salaries is
Crowe Bank Compensation and Benefits continuing. For example, average employee
Survey show that employee salaries and turnover rates in the national survey climbed
turnover rates are still rising, continuing a for the third consecutive year in 2017, reach-
multiyear trend. While Tennessee banks are ing their highest levels in more than a de-
subject to the same factors that are driving cade—7.3 percent average turnover for officers
salaries higher nationwide, responses from and 18.9 percent for nonofficers.
NICHOLAS D. MOORE
Performance survey participants in Tennessee suggest that Tennessee banks reported lower turnover
Improvement Consultant, the effects might be slightly less pronounced rates for employees in nonofficer positions
Crowe Horwath LLP in The Volunteer State. than the national figures reported. Neverthe-
less, like their counterparts elsewhere, survey
Business Growth and Staffing Plans respondents from Tennessee reported that,
One of the most noteworthy trends in the overall, the year-over-year trends in employee
2017 Crowe survey relates to banks’ overall turnover remained on a steady upward
employment strategies. For the first time since trajectory. (See Exhibit 2.)
the 2008-2009 recession, more than half (54.9 Although the lower nonofficer turnover
percent) of the national survey respondents rates in Tennessee could be interpreted as an
reported they planned to increase staffing lev- encouraging sign, it is important to remem-
TIMOTHY J. REIMINK els during the coming year, either in response ber that employee turnover rates in general
Managing Director, to normal growth (41.7 percent) or as a result remain at historically high levels, which
Crowe Horwath LLP of expansions or acquisitions (13.2 percent). suggests upward pressure on salaries is likely
The responses from bankers in Tennessee to continue.
were comparable, and with a total of 53.8 per-
cent reporting they expect to increase staffing Compensation Strategies
levels over the next year. (See Exhibit 1.) When participants were asked to describe
While the growth expectations among their compensation strategies, another survey
Tennessee bankers were comparable to the question provides additional evidence of
30 | January/February 2018 | TNBankers.orgCOMPENSATION SURVEY DATA
Exhibit 1: Staffing Plans Exhibit 2: Employee Turnover
Banks' Staffing Plans for the Coming Year Annual Employee Turnover
35.8% 18.7% 18.9%
20%
Maintain current levels
35.2%
47.8%
14.3%
Increase through normal 15% 13.2%
growth
41.7%
6.0% 8.5%
Increase via expansion 10% Tennessee
or acquisition 13.2% 7.0% 7.0% 7.3%
National
11.9%
Selective additions and 5%
reductions Tennessee
11.8%
National
4.5%
0%
Reduce staff overall
5.1% 2016 2017 2016 2017
Officer Officer Nonofficer Nonofficer
0% 10% 20% 30% 40% 50% Turnover Turnover Turnover Turnover
Exhibit 3: Compensation Strategies
upward salary trends. Specifically, the survey
Strategy for Total Rewards Strategy for Total Rewards asked respondents to characterize their banks’
(Tennessee) (National) total rewards packages—that is, the combi-
80% 80% nation of salary, benefits, bonuses, and other
70% 70% incentives—and rate them as being more than
60% 60% 10 percent above the market average, within 10
percent of the market average, or more than 10
50% 50%
percent below the market average.
40% 40% Nationally, the number of banks that
30% 30% reported using an above-market compensa-
20% 20%
tion strategy declined very slightly in 2017,
while the number who planned to stay near
10% 10%
the market average increased by almost the
0% 0% same amount. This reversed what had been
2016 2017 2016 2017
a strong four-year trend and could be seen
More than 10% below market More than 10% below market as another indicator that bank executives are
At or within 10% of market At or within 10% of market sensing a stabilizing labor market.
More than 10% above market More than 10% above market
Among Tennessee bankers, however, the
opposite trend was noted. The number of
Exhibit 4: Executive Compensation Tennessee respondents using above-market
compensation strategies increased slightly in
Average Bank Executive Total Compensation (Tennessee) 2017, while the number planning to stay near
$350,000 the market average declined. (Exhibit 3.)
Finally, it should be noted that the upward
$300,000
pressure on salaries is particularly noticeable
$250,000 in the C-suite. According to the survey, the
average total compensation packages for
$200,000 many senior-level bank executive positions
$150,000 in Tennessee rose sharply from 2016 to 2017.
(Exhibit 4.)
$100,000 Overall, the survey findings suggest that
the market for productive bank employees—
$50,000
both nationally and in Tennessee—is likely
$0 to remain competitive for some time to come.
Chief Chief Chief Risk Chief Chief Credit Top Retail Chief Chief Banks should be prepared to revisit their
Executive Financial Officer Lending Officer Banking Information Human
Officer Officer Officer Officer Officer Resources compensation strategies regularly to stay
Officer abreast of new developments.
2016 2017
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32 Developed
| January/February 2018 | TNBankers.org for community banks by community bankers.ICBA COLUMN
Looking back
at a momentous year
As I look back at 2017, my mind imme- Community bankers raised $150,000 through
diately rewinds to August and September, the ICBA Community Banker Hurricane Har-
when we witnessed firsthand the devas- vey Fund, further proof of this generosity of
tation of our community due to Hurricane spirit. This will certainly go down as a high-
Harvey and the devastation of communi- light of my chairmanship and my year.
ties in the paths of Hurricanes Irma and I’ve also been so touched by the communi-
Maria. ty bankers I have met in my travels over the
R. SCOTT HEITKAMP
It was one tough hurricane season, to say the past year. I’ve been amazed by the number of
ICBA Chairman,
President and CEO, least. Whenever I think of it, my heart sinks generational community bankers—second-
ValueBank Texas, for all those affected, including my own staff, and third-generation community bankers and
Corpus Christi, Texas customers, and family. However, I’m quickly advocates who keep community banking in
reminded of the wonderful calls I received the family. While our industry is changing,
from community bankers across the coun- so many family-owned community banks
try during those first fateful days. I cannot continue to thrive. It’s really something to be
begin to express the gratitude I felt to those proud of. Our profession is an honorable one,
who reached out—some of whom I knew and and it’s incredibly rewarding to see the next
others I didn’t—just to see if I was OK and if generation of community bankers coming up
I needed anything. This was a true measure through the ranks with the same drive and
of the lively heartbeat of community banking. passion for this industry as their fathers, moth-
Everyone was there for me, my bank and my ers, and grandparents had.
community. I’m also blown away by the number of com-
One week after I re- munity bankers who advocated for our great
ceived such overwhelm- industry over the past year. We have made so
It’s incredibly ing outreach, I was much progress and are working toward real
reaching back out to a results with Congress and regulators. While
rewarding to see the community banker who we face challenges, you’ll see that community
had contacted me the pre- bankers are on the verge of positive change
next generation of vious week about Hurri- that will help us serve our communities for
cane Harvey. I wanted generations to come. That’s something to be
community bankers to see what I could do to thankful for this holiday season, and I’d like to
return the favor or to sim- thank ICBA and all of my fellow community
coming up through ply offer support. This is a bankers for a momentous year.
the ranks with the true reflection of who we
are as community bank-
Everyone should close out the year feeling
proud of what they have accomplished for
same drive and ers. The worst times bring
out the very best in our
our industry and America’s communities. You
have been difference makers, and I know you
passion for this industry. We stand ready
to serve, even in the midst
will continue to be difference makers in 2018.
Thank you for all you do as community
industry as their of devastation and chaos, bankers. Here’s to a happy and prosperous
and we are always there to New Year!
fathers, mothers, lend a helping hand to fel-
low community bankers
and grandparents had. and their communities.
TNBankers.org | January/February 2018 | 33FREE 48-HOUR TRIAL*
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| TNBankers.org
trial of our products and services.BANKER TO BANKER
Get the most
out of TBA in 2018
From continuing education to monitoring state and federal
legislative agendas, the Tennessee Bankers Association is
here for you. With the New Year upon us, The Tennessee
Banker asked TBA staff, how do you recommend
members engage with the Association in 2018?
DEBBIE BRICKLES MONIQUE JENKINS
Senior Vice President of Education Education Coordinator
Register for a convenient, cost-effective Invest in your career by enrolling in a
webinar. In our ever-changing environment, Southeastern School. From commercial lend-
webinar training is just one of the many ing to branch management, The Southeastern
continuing education options TBA offers. By Schools provide a solid foundation on which
partnering with Community Bankers Webinar to build your banking career. Graduates de-
Network, registration is simple, and webinars velop the skills that will bring you success in
can be accessed from your PC, tablet, or phone. upper-level management positions and forge
Can’t make a live webinar? No problem. Re- the networks that will serve you throughout
corded webinars enable you to access learning your time in the banking industry.
material anywhere at any time.
AMY HEASLET T’LANIE LUU
Senior Vice President/General Counsel Member Services Specialist
With nearly 30 open seats during the 2018 Help teach your community financial liter-
state elections, banker feedback on new candi- acy by taking part in the Personal Economics
dates will be critical to TBA. Informing TBA’s Program (PEP). We know how vital it is that
government relations team about pro-banking our neighbors understand the importance of
and business candidates early in these races saving, using credit responsibly, and learn-
will enable BankPac to get out in front and ing how to avoid fraud, scams, and predatory
support them. If you have recommendations of lending. When our community is financially
candidates TBA should support, please contact literate, it has a lasting impact on our local
me at aheaslet@TNBankers.org. economy. As PEP Coordinator, I see firsthand
the great work our bankers are doing. Please
email me at tluu@TNBankers.org you’d like to
get involved.
TNBankers.org | January/February 2018 | 35E E BA N
ESS KE
NN
RS
TE
Endorsed Partner
TBA
approved
Building a risk
management culture
Banks face multiple aspects and ing identifying, measuring, monitoring,
varying degrees of risk every day. For and controlling risk. In a bank with a risk
this reason it’s critically important to un- culture, everyone becomes a part of the risk
derstand what factors to consider and steps management process, allowing for better
to take in managing risks. The Office of the coverage and creating a culture of excellence
Comptroller of the Currency’s definition of and personal responsibility.
risk is “the potential that events will have an
VANESSA STANFIELD
Client Program
adverse effect on a bank’s current or project- There are several key aspects of a Risk Man-
Sr. Director, ed financial condition and resilience.” (OCC agement Culture:
Communications Comptroller’s Handbook).
& Vendor Management, Risk or Event Identification
Affinion Group Below are the eight types of risk that the Risks must be clearly and proactively
OCC defines for banks to assess and manage: defined as well as identified to be managed
1. Credit risk - related to an obligor not effectively. A best practice is to use a work
MORE FROM honoring the terms of an agreement team bringing diverse perspectives from
AFFINION 2. Interest rate risk - fluctuations in the mar- various functional areas.
ket negatively affecting a bank’s earnings
For more information 3. Liquidity risk - possibility of a bank being Risk Assessment & Response
about the Affinion, unable to meet its obligations when they Once a risk is identified, it must be prior-
visit their website at
www.affinioninsur-
are due itized and measured. A risk qualification
ancesolutions.com, or 4. Price risk - potential that the value of fi- process that includes quantitative and qual-
contact Andrea Heger nancial instruments will shift with interest itative elements is most effective. For each
at 615-764-2082 or rates risk, determine the probability or likelihood
aheger@affiniongroup.com. 5. Operational risk - failure to test internal of occurrence and the impact or severity.
controls to reduce fraud, defalcation, and These two factors are multiplied to result in
other losses the inherent risk.
6. Compliance risk - violations of laws,
regulations, etc. A cross-functional team determines
7. Strategic risk - poor business decisions or what response or mitigation action(s) can
failure to react to changes in the market be taken. Keep in mind, there are several
8. Reputation risk - comes from the public’s possible responses; avoid, accept, mitigate/
opinion or sometimes just perception. This reduce, or share it. Once the response or
has the potential to adversely impact how mitigation step is considered, re-evaluate
successful a bank is in terms of developing the rate of risk (probability and impact).
new or retaining current relationships. The result is the residual risk and should
be less in most cases. It is important to
To effectively manage the eight types document the mitigation steps and assign
of risk, an institution must create a risk owners to ensure follow-through. There
management culture where organizational are a number of sophisticated risk scoring
behaviors are defined as instrumental in the tools banks can leverage; however, in-house
risk decision-making process. This enables software programs with spreadsheets can
the appropriate focus and protocols regard- work as well.
36 | January/February 2018 | TNBankers.orgYou can also read
