OKLAHOMA BANKERS ASSOCIATION Meeting of the Board of Directors Monday, May 21, :30 a.m. A G E N D A S U M M A R Y

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1 OKLAHOMA BANKERS ASSOCIATION Meeting of the Board of Directors Monday, May 21, :30 a.m. A G E N D A S U M M A R Y 1. Agenda A tentative agenda for the Board meeting scheduled next Monday is enclosed with this Agenda Summary for your review. ANY ITEMS REQUIRING BOARD ACTION APPEAR IN RED. 2. Approval of Minutes A copy of the minutes of the March meetings of the Executive Committee and the Board, and minutes of the Executive Committee meetings dealing with the proposed budget for FY are all included with the Agenda Summary and marked collectively as Exhibit A. Question Presented: Whether to approve the minutes of the various meetings as presented? 3. Committee Reports Performance and Oversight Curtis Davidson, Chairman a. Financial Statements. As we work to close out FY and prepare for the June audit to begin, we do not have final financial statements through April 30 th. Lea Ann will likely have something additional to report at the Board meeting. b. Proposed Budget for FY Included with the Agenda Summary and marked as Exhibit B is a copy of the proposed budget for FY The Executive Committee has met twice to review and revise the initial draft of the proposed budget and it comes to you with their recommendation that the current Board recommend to the new Board that it approve the proposed budget as presented. Question Presented: Whether to recommend that the New Board of Directors approve the proposed budget as presented. c. Education and Training: [Janis Reeser] here is a summary of the Education Department activities for April and May: April 3 BSA Seminar Tulsa 77 Ken Golliher April 4 BSA Seminar OKC 101 Ken Golliher April 5 Ag Conference OKC 50 Various Speakers April 7 8 Senior Mgmt. Conf. Las Vegas 63 (Bankers) Various Speakers 31 (Guests) April 16 Teller Seminar OKC 63 Janice Branch April 17 WIB Contact Banker Capitol Cancelled due to teacher walkout April 17 Teller Seminar Clinton 87 Janice Branch April 18 Teller Seminar Tulsa 43 Janice Branch April 18 CECL Update OKC 62 Doug VanMeter, Bryan Neal April 19 CECL Update Tulsa 23 Doug VanMeter, Bryan Neal

2 April 24 Basic New Accts Tulsa 56 Mary Beth Guard April 25 Basic New Accts OKC 102 Mary Beth Guard May 1 Fair Lending OKC 20 Jack Holzknecht May 2 Flood Compliance OKC 34 Jack Holzknecht May 3 HR Update OKC 45 Vicki Worsler May 8 CMP Roundtable OKC (Cancelled due to low response) May 9 Adv Financial Stmts. OKC 23 David Osburn May 10 Adv Tax Returns OKC 24 David Osburn May 11 C&I/RE Lending OKC 25 David Osburn May Convention Tulsa 234* *Includes those that are registered for any or part of convention as of 5/9/18. FIRST QUARTER WEBINARS: For the first quarter of 2018, 144 webinars were purchased. This compares to 233 in first quarter of ANNUAL CONVENTION, GOLF TOURNAMENT AND TRADE SHOW: Attached is the current roster. This includes those who plan to attend any or part of the convention. Please note the following: All Board members will be introduced during the opening session Tuesday morning. Board members whose terms expire will receive their plaques during the awards presentations at the brunch on Wednesday. We have 5 inductees into the 50-year club. The Leadership Academy graduates will be recognized during the opening session Tuesday morning. Be sure to thank exhibitors and sponsors! Their support is critical to the success of the convention. The trade show is only on Tuesday. PLEASE make an effort to visit with the vendors. They like to see OBA Board members! INTERN ORIENTATION: The Orientation was held May 15. The orientation is designed to help prepare the students for their summer experience. Both Roger and Elaine presented to the group. In addition, Jerika Coffman (Quail Creek Bank-OKC) and Clint Duncan (State Banking Department-OKC) shared their insights for a successful internship. We have 12 interns placed this summer. SWGSB Scholarship: Janis presented the 2018 SWGSB Scholarship on April 30 to Jared Cable, First National Bank-Okmulgee. GSB Colorado Scholarship: Janis plans to present the 2018 GSB Colorado Scholarship on May 29 to Amy Biggs-Seiling State Bank. d. OBA Insurance Agency Report I recently met with representatives from Markel Insurance, a new entrant into the community bank insurance space. The company is anxious to get into this space in a big way, providing a significantly improved series of products. It may not be the lowest price, but it will be competitive. The thing that intrigued me was the company s determination to avoid the cookie cutter approach, particularly when it comes to claims. I ll keep you posted. e. OBA Services Company Report [Lea Ann Jackson, Thi Pham] Here s a summary of what s been going on in OBASCO since the last Board meeting: New Strategic Members We have added the following nine (9) new Strategic Members: o FINPACK o Bancsource o Telecomp o Peter s & Chandler, P.C. o Capco Page - 2 -

3 o o o o Wells Fargo Advisors Data Center Inc. (DCI) Frates Insurance Tricorps Cybersecurity We are working on a few more leads and will try to close them later this month OBA SMC Sponsorships We secured $35,000 in sponsorships for the Senior Management Conference. Our goal was to exceed the $34,000 from the previous year. Annual Convention Sponsorships for the Convention stand at $48,250, while Exhibitor Booth sales are $37,100. All 40 booths have been sold. Sales are about the same as last year with a $1,000 (approximate) variance. Bankers Night Out Spring Sponsorships We prepared packets for these events and include a gift card giveaway at each location to attract bankers to attend. Sponsorships resulted in $13,000 plus $2,000 for bar sponsorships 2018 Bank Directory Advertising Final ads generated about $17,000 for the Directory; We distributed complimentary copies to all CEOs, bank branches and Strategic Members. Current sales are approximately $15, Photo Calendar Contest/Order We had 20 banks that participated with over 220 photo submissions. Bankers voted on their favorites at our Basic New Accounts Seminar. We will open orders for banks to put their logo on the calendar June 1 at price point of 0.99 until July 1 and then $1.09 after. Last year s sales generated about $54,000. Oklahoma Bankers Hall of Fame Project Working with Megan, Lea Ann, and Roger on this project. Endorsements: Office Depot New rep structure presented in February. $75,000 order inquiries go to call center the call center, and anything over $75,000 goes to the Office Depot rep Lisa Perlet. Jeff King will be exhibiting at Convention and will be on the road to meet OK bankers & sign banks up on the discounted SBA program. Currently we only have 27 banks participating. Royalties to the OBA last quarter were about $2,000. Modern Wealth Management Jason Claborn sponsored lunch for our HR Seminar early this month and spoke for a few minutes. We are working on having them join as Strategic Member, including (potentially) an article in the Oklahoma Banker about their program. Mirador Currently working with Lea Ann on this project Deluxe The company is exhibiting at convention and recently signed up a new bank that has generated royalties to OBA in the amount of $3,750. Compliance Alliance Chance Williams will be exhibiting at convention Equias Alliance Trey Deupree will be exhibiting at the Convention, and is this year s hotel key Convention sponsor Page - 3 -

4 Works24 Rick Jones is exhibiting at the Convention and will sponsor the Longest Drive prize at the Convention Golf Tournament. 4. Committee Reports Planning & Business Development Sandy Werner, Chairman A. STATE AND FEDERAL LEGISLATIVE MATTERS: 1. STATE MATTERS: The Legislature has adjourned, the budget is done and now the attention moves to the various state questions. One of the most significant issues will be SQ 788, the Medical Marijuana Legalization Initiative, or some call it the Medical Cannabis Initiative. Here are some of the concerns about the proposal: a. The issue will be on the June 26 ballot, voting it up or down. Right now, it s polling favorably, roughly 65% - 35% in favor of the initiative. b. The measure itself is very broadly written. Many state officials (including Attorney General Mike Hunter) make the claim this proposal will legalize what is in essence recreational marijuana. c. The language appears to permit doctors (including veterinarians?) to approve the licensing of marijuana use for virtually any purpose. d. A handful of bankers have called to share their concern, which is shared among business leaders in the state, is the inability to test for, discipline or fire someone for using drugs while on the job. If you are authorized to smoke it, drug tests cannot be used for purposes of employment. An employer can t do anything that might be viewed as harassment or an attempt to embarrass an employee. e. Unlike every other aspect of medicine, the proposal includes no guidelines that set any boundaries for prescribing the drug, nor are there limits on the medical illnesses that can be alleged. f. It can be grown anywhere for example, at a customer s house, or on a customer s farm without restriction. No municipality will be able to prevent its growth or dispensation. g. A license holder can hold up to four pounds of edible marijuana. You can read the State Question here: A new group Not Medical has been formed to oppose adoption of the state question. One of the questions for the Board is whether to join in this effort to opposed SQ 788. Here are some of the groups that are a part of the Not Medical movement so far: Catholic Conference of OK Greater OKC Chamber of Commerce OK Academy of Ophthalmology OK Behavioral Health Association OKC FOP, Lodge 123 OK District Attorneys Association OK Faith Leaders OK Hospital Association OK Osteopathic Association OK Pharmacists Association OK Sheriff s Association OK Society of Anesthesiologists OK State Medical Association State Chamber of Oklahoma State of OK FOP Question Presented: Whether the Association should take a position either in support of or opposition to SQ 788? Page - 4 -

5 2. FEDERAL MATTERS: Congress Pressure has been mounting in the House and on Leadership to deliver a victory in the form of passing S. 2155, getting it to the President for signature, and take action soon. a. As the Agenda Summary is being prepared, S may come to the House floor the day after the Board meeting! Tuesday, May 22 nd. House Financial Services Committee Chairman, Jeb Hensarling (R-TX) has apparently struck a deal with the Senate Banking Committee Chairman, Sen. Mike Crapo (R-ID) to have the committee consider several bills that have already passed the House on a fairly large bipartisan vote sometime this summer, and before the Fall Elections. b. I really don t think such an approach will result in actually getting something done. What s more likely, at least in my view, is they will make an effort to move other regulatory relief measures in a must pass package of some sort, perhaps the NFIP reauthorization that must be addressed by July 31 st. c. It s possible the May 22 nd date will slip by without action by the House, but we are holding our collective breath and encouraging House Leadership to proceed with floor action on the bill. d. If the Speaker lets it come to the floor, it will pass. The question is simply how many Democrats will vote for the bill. e. One of the measures we suspect is on the Chairman s list is H.R This bill creates a process by which a bank may appeal the results of an examination to an independent Administrative Law Judge. This bill passed the House , which is right at a two-thirds majority. f. We also suspect that H.R (the TAILOR bill) might be in the hunt for being included in the package. It previously passed the House on a vote of , not quite a two-thirds majority count. We are almost across the finish line, after 5 long years of drafting, bickering, fighting, persuading, persistence and determination. We are going to get this done! B. PUBLIC AFFAIRS COMMITTEE (PAC) Fundraising totals for the year are significantly higher than the same point last year; At the end of April, the State PAC raised $25,688 while the FED PAC raised $18,496 for a total of $44,184. This total is $21,815 ahead of where we were at this date last year. The primary reason for the increase in PAC contributions has been the leadership that the PAC Committee has provided. Committee members are actively calling or writing other bankers encouraging them to get involved in the PAC. We are satisfied about where both PAC s are at this point. o We have had a couple of banks set up Special Board Meetings that haven t ever hosted them before. o We are also starting to make arrangements for those banks that host these meetings every year. Now that filing is over and we know exactly who is running for what office, we are preparing to get the PAC s involved. o There are close to 500 candidates running for the State Senate and the State o House. We are keeping a very low profile until after the primary elections on June 26 th before we start delivering checks to those the PAC Committee directs us to support. We believe this year is going to be a very busy one for the PAC, and it s important for all bankers to consider making a contribution to help us make certain we have a banker-friendly House and Senate in Page - 5 -

6 We will be reaching out to all the Pres/CEO s that haven t contributed to the PAC in the next couple of months to ask for their help. If you are considering hosting a special board meeting at your bank, please contact Adrian so we can get it on the calendar. Roger and I are also available to come and speak with your staff about the importance of getting involved politically, and not asking for money. C. Legal Report: We will have an update on any key issues at the Meeting. 5. Committee Reports External/Member Relations, Emerging Leaders Frazier Henke, Chairman A. Report on Emerging Leaders, Bank Call Program [Megan McGuire] 1. Professional Member Scholarship This year the Oklahoma Bankers Association awarded a $1,000 scholarship to Luke Morris, son of Angie Morris with Central National Bank in Enid. Luke is graduating from Enid High School and enrolled at OBU. We had a panel of four bankers grade the scholarships. 2. May 21: Emerging Leaders Mix-and-Mingle at Convention Emerging Leaders at Convention are encouraged to come by from 6 to 7:30 p.m. on Monday, May 21 at the Center Bar at the Hard Rock Hotel for fellowship with their peers and a drink on us at the Emerging Leaders Mix-and-Mingle. Look for the gold O-B-A balloons. 20 Under 40 Kelci Werner: Banking Exchange magazine reached out to the OBA regarding its inaugural 20 Under 40 Awards in which they will profile 20 noteworthy Next- Gen bankers under the age of 40. Kelci Werner, a graduate of the Emerging Leaders Academy with First National Bank & Trust of Elk City, was selected as one of the recipients. 3. OBA Emerging Leaders & OSCPA Young Accounting Professionals The OBA Emerging Leaders and OSCPA Young Accounting Professionals held a joint happy hour/mixer on May 10 at The Jones Assembly in Oklahoma City. We have started discussion about doing another in November or December. There was a good showing from both entities, and Megan received the following feedback below from one of the bankers in attendance: Thank you for coordinating last night's meet and greet. I really enjoyed it! I made four solid networking contacts and was also talked into sitting for the CPA exam. When the accountants found out that I have a Masters in Accountancy, and prepare tax returns on the side, they convinced me that I needed to complete the process and get those initials after my name. Page - 6 -

7 They talked to me extensively about the timeframe it takes and the best prep course. Two of the ladies I met have confirmed they are going to be my accountability partners in the journey and check in at least monthly on my study progress OBA Emerging Leaders Academy Twenty-eight bankers who completed the Emerging Leaders Academy will graduate on Tuesday, May 22 at Convention OBA Emerging Leaders Academy Applications for the Emerging Leaders Academy will be available soon. The tentative dates are listed below, and Graduation will be at the 2019 OBA Convention: Session I Friday, Oct. 12, 2018 Session IV Friday, Jan. 11, 2019 Session II Friday, Nov. 9, 2018 Session V Tuesday, Feb. 26, 2019 Session III Thursday, Dec. 6, 2018 Session VI Friday, March 20, OBA Washington Visit Save the date for Sept. 30 through Oct. 2 for the Annual OBA Washington Visit. Registration will open in June. 7. ABA GR Summit Oklahoma had a strong showing of bankers at the ABA GR Summit in April. ` 8. Fraud Report [Elaine Dodd] Materials will be available at the Board meeting for your review. 9. Internal and External Communications [Jeremy Cowen] The Communications Department has been concentrating on convention-related activities for the past month, with the convention issue of the newspaper as well as convention-related 20 Questions! webcast. Jeremy is working on an opening convention video, as he has done for recent conventions, as well as the voiceovers and other audio/visual efforts for the event. The OBA app has also been updated with convention information, to replace a printed pocket program and also the need to download a new app separate just for the convention. Page - 7 -

8 The app can be downloaded here for iphone: ( and here for Android: ( 6. Other Business Bankers Hall of Fame: The Board has previously approved creation of the Bankers Hall of Fame and our plan subject to the Board s approval is to get it set up and running over the summer months. Included with the Agenda Summary and noted collectively as Exhibit C are the documents we have finalized for distribution at the Convention. a. The Board is asked to approve staff recommendations to finalize plans for the Hall of Fame: i. New Chairman Sandy Werner will make appointments to the HOF Nominating Committee; ii. June 30, 2018 is established as the deadline for the submission of nominations; iii. Between July 1 st and July15 th the Nominating Committee selects nominees whose names are then put on the ballot; iv. July 15 the ballots are mailed out to a broad banker audience; v. August 15 will be the deadline by which the ballots must be returned with the names of the nominees; vi. September 1 promotional materials will be sent out announcing the dates for the Luncheon Event and the Induction Ceremony to be held in November; vii. September 1 October 31- Staff works to develop and prepare the materials that for the ceremony, including a biographical video for the Inductees; viii. A November date will be pinpointed and ultimately established by the Board of Directors for the Induction Ceremony. Question Presented: Whether to approve the staff recommendations for finalizing the creation of the Oklahoma Bankers Hall of Fame? MISCELLANEOUS MATTERS: Here are some other issues staff is considering, with the understanding that the final plan will be submitted to the Board for its review and consideration. Whether the nominating committee should automatically include the last three OBA Chairs; What kind of an award is envisioned? Staff plans to work with Midwest Trophy to develop a trophy-style award, i.e., something that s suitable for displaying on a desk or shelf, rather than hanging on a wall; Should the OBA direct funding for the HOF activities through the Foundation? Should we target some of the larger banks that may be interested in getting their name attached to something like this as a sponsor? Solicit OBA s Strategic Members for sponsorships? Perhaps we can persuade a firm such as BankonHold to make a contribution in kind by producing the videos for induction ceremony. Staff recommends we sell tickets and tables to the Luncheon, rather than incurring the expense. Page - 8 -