OKLAHOMA BANKERS ASSOCIATION MINUTES OF THE MEETING OF THE EXECUTIVE COMMITTEE TUESDAY, JANUARY 22, 2019

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1 OKLAHOMA BANKERS ASSOCIATION MINUTES OF THE MEETING OF THE EXECUTIVE COMMITTEE TUESDAY, JANUARY 22, 2019 A meeting of the Executive Committee of the Oklahoma Bankers Association was called to order by OBA Chairman Sandy Werner 1:46 p.m. Others participating in the meeting included Vice Chairman Frazier Henke, First Vice Chairman Rick Walker and Past Chairman Guy Sims. Others in attendance included OBA President Roger Beverage, CFO Lea Ann Jackson and Chief of Staff Adrian Beverage. Jackson reviewed the financial statements through December 31, The negative position ($76,473) at this point in the fiscal year is in large measure due to the unrealized loss in the association s portfolio issues. Several banks have not yet renewed their OBA membership by paying their dues. These include FirstUnited (Durant, $49,991, Simmons ($31,891), Landmark Bank ($20,413), UMB Bank ($6,224), CrossFirst ($3,507) and The American Bank, Wagoner ($1,787). Strategic Members dues are also down compared to prior year. Efforts are being made to collect these past due amounts. Following discussion, it was the general consensus of the Committee that it should recommend that the Board accept and approve the financial statements as presented. There was considerable discussion about the Hall of Fame, its process and how it can be improved. Even though it was a standing-room only crowd in a great venue, a few bankers have made their views known that the process for selection must be improved. The initial roll-out seemed to be more of a popularity contest. The process was not based on an analysis of the industry s past history and its evolution to today s current operating environment. Efforts by bankers (both living and deceased) to improve the industry and move the state forward were not sufficiently featured or explained. Several ideas were presented, including designation of a small outside group of bankers gather to recommend a banker or two to be on the ballot. Committee members agreed to address these and other issues at a later date. There is a particular need to make certain that deceased bankers are also eligible for induction. The Committee reviewed the balance of the items presented on the Tentative Agenda for the Board meeting, noting that the Bank of Oklahoma has rejoined the Association. Past Chairman Guy Sims pointed out that many bank customers are interested in growing and processing hemp. These customers are asking for guidance as to how to deal with the de-criminalization of the product and what can be done to clarify what s required. He emphasized this issue should be a top OBA priority. There being no further business to come before the Committee the meeting was adjourned at 2:25 p.m. Respectfully Submitted, Recording Secretary

2 OKLAHOMA BANKERS ASSOCIATION Minutes of the Meeting of the Board of Directors Wednesday, January 23, 2019 A meeting of the Board of Directors of the Oklahoma Bankers Association was held in the Harris Event Center of the Oklahoma Bankers Association, on Wednesday, January 23, Sandy Werner, Chairman of the Board, called the meeting to order at 10:30 a.m. Board Members Participating Amada Alvidrez Bruce Boehs Beth Brown Bryan Cain David Cook Priscilla Cude George Drew Frazier Henke Robert Jennings Aaron Johnson Mark Londagin Mark Poole Joey Root Stuart Sander Danny Seibel Guy Sims Terri Thompson Doug Tippens Rick Walker Sandy Werner Board Members Not Participating Paula Barrington Herschel Brewster Jim Hamby William Schonacher Staff Members in Attendance Roger Beverage Adrian Beverage Jeremy Cowen Elaine Dodd Kathryn Donovan Mary Beth Guard Lea Ann Jackson Megan McGuire Nancy McKinnis Janis Reeser Tentative Agenda: The Tentative Agenda was approved as presented. Minutes: Motion made by Stuart Sander to approve the minutes of the Executive Committee and Board Meetings held Tuesday, November 27, Motion was seconded by David Cook. Motion carried unanimously with no abstentions. Performance & Oversight Committee Guy Sims Lea Ann Jackson reviewed the financial statements through December 31, In December, the Association investment portfolio dropped significantly as expenses also declined for the month. Jackson reported on dues matters and the banks that have not yet paid, including FirstUnited, Simmons Bank and Landmark Band. American Bank of Wagoner will not be renewing their membership. Currently there are 27 Strategic Members who have not paid their dues, while four who will not be renewing their membership. Motion made by Priscilla Cude to accept and approve the December Financial Statements as presented. Motion seconded by Frazier Henke. Motion carried unanimously with no abstentions. 1

3 Education Janis Reeser reported on the Department s current issues: Lori Jackson would be teaching the Compliance Updates this year in place of Mary Beth Guard who has done this teaching in the past; Intermediate School registration is up to 38 students and is the largest class we have had in years. This year s Intern Program is set and the only potential for the program is that FirstUnited Durant has not paid dues yet has placed two (2) of the OBA s interns as a result of the program. Board members were asked to consider becoming involved by placing one or more of these future bankers. Reeser provided information about the upcoming Community Bankers Leadership & Senior Management Conference, including a list of those registered for as well as a brochure. She asked members to note the sponsors of this event and express their thanks to them. They are critical help us attract good speakers and host the Conference general. Guy Sims encourage those not yet registered to do so, or to send someone from their bank, as well as any of their young and Emerging Leaders in their banks. He said there are always good speakers as well as a good opportunity to network and become a better banker. Reeser reminded members that the GSB Scholarship for the HR program is available for banks that would like to attend. Mark Poole said that they had sent their HR director last year and that it was a very valuable experience. Reeser said that Esther George has been invited to speak at our Annual Convention in May. OBASCO/ OBAIA Jackson reported that everything appears to be going very smoothly in both subsidiaries. She encouraged all Board Members to support the products and services offered to member banks. This is particularly important when it comes to your bank s insurance needs. We now have a much broader base of carriers from which to select. Jackson also introduced Kathryn Donovan, our new Director of Accounting. Planning and Business Development Matters Frazier Henke, Chairman State Issues: Adrian noted the number of bills that have been introduced so far. There He advised that there are currently 142 bills in the House that deal with banking-related subjects. Of that number, 105 are shell bills. Speaker McCall has introduced 500 shell bills, none of which have any language in them. February 28 is the deadline for shell bills. Beverage reviewed the PACE lending issue and what that may mean for the industry. He noted that the PACE lending issue came up two years ago, but this year there are two bills dealing with the issue. Beverage said Warren Ross (a customer of Simmons Bank) reached out to the OBA requesting a meeting to explain the bill in depth. Ross pointed out that his interest would only apply to commercial real estate matters, not residential ones. The information was presented to the 2

4 GRC Council but no was made at the Council meeting. A and a conference call will be scheduled prior to the deadline to decide what to propose to the Board. Mark Poole said it had been used in Tulsa on the First National Bank downtown. More detail was explained regarding basis points, etc. Henke said it is cheaper for developers and impacts lenders. It was noted credit unions strongly oppose. Steve Edwards is his lobbyist, saying anything that subordinates banks we are against. He said this proposal benefits developers. Beverage is also working closely with the Banking Department on a few matters with Commissioner Thompson. He does have a good feeling as to how the session is lining up, especially regarding school teacher salaries and education matters in general. There are several smaller groups of volunteers and legislators that are working on ways to give Governor Stitt more authority. Beverage also advised the Board that MidFirst had come to him asking the OBA and the State Chamber to lend their support for a proposal that will allow certain state income tax benefits to apply to Subchapter S banks and others that are not included in the pass-through rules recently announced by the Internal Revenue Service. The language is currently being drafted and lending our help may encourage MidFirst to re-think its decision of not being an OBA member bank. Federal Issues: Roger Beverage said the ABA State Alliance is working together on a number of projects and regulatory matters. He has concerns about how Rep. Maxine Waters (D-CA) plans to address community bank requests for clarification on a number of issues that were NOT included in S last Spring. Waters Chairs the House Financial Services Committee. Beverage reviewed a number of regulatory matters that are in progress. He noted that the current regulators of all federal banking regulatory agencies are trying to make the various agencies less burdensome, at least for community banks. It s also true that the staff members are slow-walking proposed changes. PAC The OBA s Public Affairs Committee efforts are under review as to how best to replenish the funds that were spent in the 2018 elections. So far, however, there has been a good response from bankers. He asked Board members to let him know if they would like to schedule a meeting for their respective boards as well as employees. External & Member Relations Committee Rick Walker Emerging Leaders - Megan McGuire reported that this year s Emerging Leadership Academy will begin again on February 26. Their first assignment begins at the Capitol with Adrian Beverage prior to joining the Government Relations Council meeting at noon. Their afternoon session will be led by Jeremy Cowen, OBA vice president of communications. Contact Banker Program This program runs from February 5 April 26. There is a form to complete and return to Adrian Beverage adrian@oba.com or contact Adrian directly to schedule your visit. 3

5 Washington Fall Visit Dates for this trip are September McGuire is still working on a tour of Mount Vernon on Sunday afternoon. She also advised there is now a direct flight to DC from Oklahoma City. Spring Bankers Night Out There are six locations this Spring for the programs. They are scheduled for Lawton, Oklahoma City, Tulsa, Enid, Krebs, and Guymon. Information and registration materials will be mailed and will also be available on our website. Fraud Elaine Dodd reported that Fraud issues are bigger than ever. She will attend an FBI meeting following the board meeting today to discuss the increase in fraud and what can be done about it. Dodd will also be included in a Cyber panel discussion and presentation at OSU. Dodd also noted that when reporting fraud issues to the larger banks, i.e., Bank of America, a 90 day wait period on wire fraud is in effect before much of anything can be done, in part because of the government shut-down. She said she will again be participating in the Senior Fraud Tour this coming Spring Dodd really encouraged Board members and all member banks to watch closely for elder fraud and abuse in connection with the bank s Senior Bank customers. This fraud issue has been going on for one time. It is at or near the top of issues of concern for federal banking regulatory agencies. Dodd again stressed the importance of call backs as wires continue to be an enormous issue. Never hesitate to contact her immediately if you or your customers have an issue. Communications Report Jeremy Cowen reported on the positive response he has received from his recent press release regarding the government shut-down and how it impacts bank customers Many banks have responded to the OBA s effort to increase customer awareness of what help is available to them. It has created a great deal of positive press for the industry, as many stories of aid offered to customers from Oklahoma bankers continue to be published. Cowen continues to update information and is in the process of possibly creating an online and more updated version of all of our printed brochures. He advised the Board that he has recently hired a new intern, Amanda Bloye. With her experience and knowledge should be a great asset to the department. Cowen was recognized for receiving his Master s Degree in Communications related to banking, from the University of Oklahoma. There being no further business to come before the Board, the meeting was adjourned. Respectfully submitted, Recording Secretary 4