bankers 1012 sample

Fairways and greensThe OBA held its Annual Golf Tournament last month.

PAGE 8

Veteran movesColumnist Gayla Sherry weighs in on the advantages of hiring returning veterans.

PAGE 9

(MAILING LABEL)

Banking Briefs 2Banker Spotlight 18Calendar 20Education 4

From the Road 16Legal Briefs 11-14Oklahoma Bankers 15Resource Directory 23

INSIDE

Nights Out

Rapt attention — Bankers (top photo) listen intently as OBA President and CEO Roger Beverage (bottom photo) gives his presentation on the OBA’s government relations activities at a recent Bankers’ Night Out Event.

OBA gives support to State Questions

Remember: Oct. 12 is last day to register to vote

The newspaper of the Oklahoma banking industry October 2012

See BANKERS’ NIGHT OUT on Page 7

Oklahoma Bankers get more than just time away from the office during the OBA’s Bankers’ Night Out programs.

By Kristin EwingMember & Public Relations Coordinator

When the clock hits five at the end of the work day, everyone begins to rush home for a typical evening, often including dinner, laundry and of course a little bit of television. But for those with the inside scoop, a few evenings in the fall provide

We’re fast-approaching the Nov. 6 election, perhaps one of the most important elections ever in the United States. But you can’t vote if you aren’t reg-istered. In that regard, the last day to register to vote in the general election is Friday, Oct. 12. It’s not just the presidential election that’s important next

month. There are Congressional races, elections for the state leg-islature and local elections that are important to Oklahoma’s future. If you’re already regis-tered to vote, please take the time to remind your family and friends to make sure they are registered! Absentee ballots: You can apply for an Absentee Bal-

lot until Wednesday, Oct. 31. You can request an Absentee Ballot to be mailed to your home by going to the fol-lowing website: http://www.ok.gov/elect ions/Absentee_Voting/Absentee_Ballot_Ap-plications/. And, as always, make sure you and everyone you know votes in the coming elections!

Questions on water plan, property taxes backed by OBA’s board.

The OBA’s Government Relations Council has recom-mended the Association sup-port the efforts to pass State Question 764 dealing with the state’s comprehensive water plan and State Question 766 dealing with intangible per-sonal property taxes. The OBA’s board of direc-tors has unanimously ap-proved this recommendation and is asking its member banks to join in support of their pas-sage.

SQ 764: The proposal cre-ates a reserve fund for water resource and sewage treat-ment financial assistance programs. Creation of this new Reserve Fund will in-crease the lending capacity of the Oklahoma Water Re-sources Board to address in-frastructure repairs and en-hancements. The Oklahoma Compre-hensive Water Plan estimates that during the next 50 years,

the cost to maintain, replace and expand drinking water and wastewater infrastruc-ture will total more than $80 billion. This proposal authorizes the OWRB to is-sue bonds for these purposes, after other funding sources are exhausted and subject to legislative appropriation and approval. Providing the infrastruc-ture for reliable drinking water and wastewater needs is vital to the economic growth and development of our state. State Question 764 creates the Water Infrastructure Credit Enhance-ment Reserve Fund, increasing the OWRB’s ability to provide financing for infrastructure projects. SQ 764 would create a fund-ing mechanism authorizing $300 million in new financing for water infrastructure en-hancements. This fund will ac-tually make available $3 billion in new financing for projects, allowing Oklahoma’s infra-structure to keep pace with its drinking water and wastewater needs. Use of the current OWRB

See STATE QUESTIONS on Page 2

Oklahoma Banker October 20122

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Oklahoma banking leaders honored Five Oklahoma bankers were honored at the 2012 The Journal Record Woman of the Year awards gala Oct. 4 at the National Cowboy & Western Heritage Museum. In its 32nd year, the event continues to honor female business and community leaders. Vicki Byrd, president at BancFirst in Kingston; April Danahy, vice president – human resources at Security National Bank of Enid in Enid; Darcie Henderson, vice president – cash management at Coppermark Bank in Oklahoma City; Suzanne McAuley, vice president – community relations at First American Bank in Norman and Ann Neal, compliance officer at First National Bank & Trust in Miami, were among the leaders hon-ored.

Poteau bank supports library complex Central National Bank of Poteau has taken the lead in helping fund and promote the construction of a new $5 million library complex for the City of Poteau. CNB’s pledge of $100,000 was the first, and the largest corporate donation. Bank CEO Steve Holton and his wife Pam personally pledged an additional $150,000, bringing the CNB-related donations to $250,000. Dirt work is underway and the project will be com-pleted by June of 2013. CNB was a corporate sponsor for the 2012 La Fiesta library fund raiser held in Septem-ber.

n BANKING BRIEFSState Questions From Page 1

“As the Council discussed the issue at its meeting in late September, it quickly became apparent that this is an issue that will have an impact on every bank and every bank customer in Oklahoma.”

Roger BeverageOBA PRESIDENT AND CEO

loan program has saved Oklahoma communities over $900 million since it began, and the new Reserve Fund will follow a similar model. Keeping up with these needs could triple the size of the typical Oklahoma fam-ily’s water bill. Yet current authority will only fund be-tween 3 percent and 9 per-cent of these future water in-frastructure needs. Passing State Question 764 will help ease this burden while allowing the state to keep up with our growing water needs.

SQ 766: This proposal provides that all intangible personal property would not be subject to ad valorem taxation or any tax in lieu thereof. It is aimed directly at an Oklahoma Supreme Court decision ruling busi-nesses should pay property taxes on intangible personal property. This could include databases, customer lists, goodwill, lease agreements and all sorts of other things “intangible.” “In 2009, the Oklahoma Supreme Court decided that Oklahomans need to pay a new tax on intan-

gible property owned by families and businesses,” said OBA President Roger Beverage. “As the (Gov-ernment Relations) Council discussed the issue at its meeting in late September, it quickly became ap-parent that this is an issue that will have an impact on every bank and every bank customer in Okla-homa. “The effort to pass State Question 766 will result in overturning the Supreme Court’s decision and stop the largest tax increase on families and busi-nesses in Oklahoma history. Our Board is asking all member banks to support this effort and encour-age their customers to support both propositions as well.”

Oklahoma BankerOctober 2012 3

Down to the wire on Basel III

Jeremy Cowen, Editor Vice President/Communications • [email protected]

Kristin Ewing Member & Public Relations Coordinator • [email protected]

Amber Johnson Communications Assistant • [email protected]

Oklahoma Banker is published monthly by the Oklahoma Bankers Association, 643 N.E. 41st, Oklahoma City, OK 73105. Phone: 405-424-5252; Toll-free number: 866-424-5252; FAX: 405-424-4518. A $4 5 subscription is included in membership fees. Non-member subscriptions are available. Paid subscriptions may be obtained by submitting payment and application to the editorial office. Single copy price is $3.50. Periodical postage paid at Oklahoma City, Okla. POSTMASTER: Send address changes to Oklahoma Banker, 643 N.E. 41st, Oklahoma City, OK 73105. News items and editorials from members of the Oklahoma Bankers Association are invited. The editor reserves the right to reject any advertising or editorial copy deemed unsuitable for publication for any reason. Copy deadline is eight business days before publication date. Disclaimer: with the exception of official announcements, the Oklahoma Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in the Oklahoma Banker. This publi-cation is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal or accounting advice or expert assistance is required, the services of a qualified professional should be sought.

Oklahoma Bankers Association2012-2013 Executive Committee

Brad Swickey Oklahoma City, Chairman

David Cook Laverne City, Vice Chairman

Mike Wynn Oklahoma City, First Vice Chairman

Jane Haskin Bethany, Past Chairman

Roger Beverage, President/Treasurer

OBA 2012-2013 Board of Directors

Roger M. BeverageOBA PRESIDENT AND CEO [email protected]

n EXECUTIVE NEWS

Ken Bass, WilburtonThomas Bennett, III, Tulsa

Hal Brown, OKCPaul Cornell, Tulsa

Curtis Davidson, Ardmore David Durrett, OKCJim Dilley, SapulpaJimmy Eppler, Ada Jacque Fiegel, OKC

Brad Krieger, OKCKirk Pittman, Seiling

Ronny Ridling, SentinelLoren Rieger, Cherokee

Steve Riff, PorterDavid Roberts, Bristow

John Simon, Jr., Grandfield Dominic Sokolosky, Owasso

David Trimble, ViciSandy Werner, Elk City

Copyright© Oklahoma Bankers Association, 2012Volume 102/Number 10 (ISSN 0030-1647)

I’m betting you’re probably getting a little tired of me urging you and every other person who can spell “b-a-n-k” to submit a comment letter on the collective “Basel III” proposals. Me too. The good news is the comment dead-line is almost upon us and the rants from me about Basel III will stop or at least slow down. There will be other rants, to be sure, but if we’re aggressive we can get these proposals withdrawn, killed or to exclude community banks from their coverage. My opinion about the importance of Basel III to Oklahoma banks: Dodd-Frank was and is bad for your bank, but it pales in comparison to the potential damage these capital proposals will do to community banking as we know it in Oklahoma and elsewhere. The OBA’s official position: The first proposal should be withdrawn. In the al-ternative, federal regulators should “start over” with a clean new slate. The OBA also opposes the second proposal which will implement the Standardized Approach on risk-weight-ing for certain assets. At a minimum, community banks (defined as having less than $10 billion and which function as a “community bank” – serving local small businesses and their communities) should be exempted from its provisions. Otherwise the second proposal should also be withdrawn. At the outset it’s important to acknowledge that capital is essential to

bank safety and soundness. You should make that point but recognize capital is not the be-all and end-all for a sound fi-nancial system. Banks fail for a lot of rea-sons and high capital levels alone won’t stop fraud, won’t keep bad management from happening and won’t protect the banking industry from the cumulative effects of bad underwriting and excessive risk taking. Here’s a quick summary of the ap-plicable two proposals on which we’re asking you to comment, just to refresh your recollection: 1. The first proposal will revise the general risk-based capital rules to include certain proposals suggested by the Basel Committee on Banking Supervision. It proposes new definitions of Common Equity Tier 1 Capital (a new category in and of itself), Additional Tier 1 capital, and Total Capital. Among other things it will require a more rapid phase out of trust preferred securities in your bank, and will require gains and losses in your AOCI to be in-cluded in Common Equity Tier 1 Capital. This affects only one-third of the OBA’s member banks, but it’s still critically important. New minimal capital requirements are revised and are to be implemented over a transition period. These are:

• CommonEquityTier1Capital-to-Total-Risk-Weighted-Assets: 4.5 percent;

• Tier1Capital-to-total-Risk-Weighted-Assets: 6 percent;

• TotalCapital-to-Risk-Weighted-Assets: 8 percent;

• Tier1Capital-to-AdjustedAverageTotal Assets: 4 percent.

Remember – you are now and will continue to be expected to operate well above these new minimum capital ratios. The actual requirements will be a moving target, depending on your bank’s activities and the nature of the risk that accompanies its loan and investment portfolio. You’ll also have to deal with a new Capital Conservation Buffer under this proposal, which requires you to hold ad-ditional Common Equity Tier 1 Capital that exeeds those minimum risk-based ratios by a minimum of 2.5 percent if you’re going to avoid limitations on dividend payments and discretionary bonuses, among other things. If yours is a Subchapter “S” bank, this provision will be more important for you going forward than anything else contained in this NPR. You’ll also have to work through the proposed adjustments to Prompt Cor-rective Action thresholds, which reflect

the new capital ratio requirements. To be “well-capitalized” for example, you’ll need total risk-based capital of at least 10 percent beginning Jan. 1, 2015. Next, you’ll have to work through ad-justments and deductions to the regula-tory capital requirements. Oh, and you’ll have to run your gains and losses in your AOCI account through your Common Equity Tier 1 Capital. How’s that going to impact your bank when rates turn? Bottom line: What will these pro-posed new rules and definitions do to your bank’s operation and (most impor-tantly) how will they impact your bank’s ability to serve your customers and your communities? At the end of the day, that’s the most important question in this entire exercise. As a part of your comment, we’re asking you to ask that the proposal be withdrawn in its present form. 2. The second proposal – the Standardized Approach – will revise risk weights for residential and other real estate mortgages, increase capital requirements for past-due loans and otherwise adversely impact many areas of a community bank’s operation. It will likely have a significantly adverse impact on residential and commercial real estate lending activities in the state. One of the questions asked in this proposal is whether these proposed risk-weighting rules should be applied to community banks. In the OBA’s opin-ion the answer is “NO.”

See BEVERAGE on Page 20


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As you know, the OBA’s education department is staying busy these days! This month is no exception. Here’s what we’ve planned:

Real Estate Lending ComplianceOct. 16-17 — Oklahoma City This two-day program provides comprehensive coverage of the real estate lending regulations. It will include policy suggestions, employee training tips, audit techniques and steps to eliminate past problems. A preview of major Dodd-Frank lending compliance issues will be discussed along with the lending compli-ance regulations inherited by the Con-sumer Financial Protection Bureau. Regulations to be covered include:

• RegZ;• RESPA;• EqualCreditOpportunityAct;• FairHousingAct;• HMDA;• HomeownersProtectionAct;• FairCreditReportingAct;

Compliance officers, loan officers, loan processors and auditors should plan to attend this comprehensive program. Jack Holzknecht, principal with Pegasus Education Services, will lead this popular seminar. Jack has been delivering the word on lending compliance for 36 years!

CFPB Proposed Changes: Reg X & ZOct. 18 — webinar This timely webinar will focus on proposed Dodd-Frank provisions regard-ing mortgage loan servicing. SpecificdiscussiononRegZin-cludes:

• Initialrateadjustmentnoticesfor ARMs;

• Periodicstatementsfor residential mortgage loans;• Scope,timing,contentandfor-

mat of current disclosures. The following issues regarding Reg X will be covered:

• Providedelinquentborrowersaccess to servicer personnel with continuity of contact about their mortgage account;

• Evaluateborrowers’applicationsforavailable loss mitigation options.

Loan originators, loan officers, com-pliance officers and auditors will benefit from these discussions. Holzknecht will lead the session.

CFPB Proposed Changes: Reg B & ZOct. 25 — webinar The focus of this discussion is ap-praisal rules. TheRegZinformationincludes:

• Definea“higher-riskmortgage”;• Conditionsneededforahigher-risk

mortgage loan; o Written appraisal (who conducts

what must be included); o Creditors’ obligations regarding

the appraisal. Points of discussion regarding Reg B include:

• Whentonotifyapplicantsaboutthe written appraisals, require-ments, etc;

• Prohibitionsregardingadditionalfees for copies of appraisals, etc.

Loan officers, loan originators, com-pliance officers and auditors should plan to tune in. Once again, Holzknecht will teach this webinar.

CFPB Proposed Changes: Reg Z-Loan Originator Compensation RulesNov. 1 — webinar This proposal clarifies and expands on existing regulations governing loan originator compensation and qualifica-tions. CFPB also implements new laws, including a restriction on the payment of upfront discount points, origination points, and fees on most mortgage loan transactions. This webinar will help you understand:

• Thegeneralbanonpayingorre-ceiving commissions or other loan originator compensation, based on the terms of the transaction;

• Therequirementthatbeforeimposing upfront points and/or fees, the creditor must make available a comparable, alterna-tive loan with no upfront dis-count points, origination points, or fees that are retained by the creditor, broker or affiliate of either;

• Miscellaneousprovisionsthatwould ban the financing of premi-ums for credit insurance;

• Andmuchmore! Once again, loan officers and origi-nators, compliance officers, and auditors should plan to participate. Holzknecht will lead the discussion.

Women in Banking ConferenceOct. 26 — Norman This year’s Women in Banking Con-ference offers a nice mix of personal and professional development. Take advan-tage of this information-packed program to network with peers and industry leaders. The day’s speakers and agenda include:

• SherriCoale,OUwomen’sbasket-ball coach — Keynote Speaker;

• PatriceDouglas,OklahomaCor-poration Commissioner — “Advo-cacy: You Can Make a Difference”;

• MaryBethGuard,BankersOn-Line, OBA legal team — “Compli-ance Issues: What’s Keeping You Up at Night?”

Plan to join more than 100 other women banking professionals at this year’s conference!

BKD/OBA Banking SymposiumOct. 30 — Oklahoma City This annual conference is a “must attend” for all CEOs, CFOs and others in the banking industry who are impacted by economic, accounting, credit, legal, taxation, regulatory or other issues affect-

ing the banking industry. The conference features industry experts from BKD’s Fi-nancial Services Group, as well as leading outside experts from the legal and regula-tory areas. Topics covered include:

• Currentbankingenvironment;• Regulatorycomplianceupdate;• Merger,acquisitionandcapital

markets;• Taxissuesforbanks;• Internalbankfraudandembezzle-

ment;• Bankinglawdevelopments.

The program will conclude with a Regulatory Roundtable featuring rep-resentatives from the OCC, FDIC, FRB and Oklahoma State Banking Depart-ment.

Hot Topics for Bank BoardsNov. 2 — Oklahoma City Never have the demands on bank boards been greater. These demands arise from customers, stakeholders, regu-lators and staff. This program will focus on four key issues facing bank boards and management:

1. Responding to Regulatory Actions2. Performance Management Systems3. Audit Committee Function4. Board Reports

David Kemp, president of Bankers Management, Inc., a firm specializing in training and bank consulting, will lead the program.

••• Also planned in early November are a social media seminar, HR seminar and the Operations School. Visit the OBA website for details on these and all up-coming events. I look forward to seeing you soon.

Janis ReeserDIRECTOR OF EDUCATION [email protected]


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an opportunity that is anything but nor-mal. They get the scoop by reading the Okla-homa Banker, the OBA weekly e-mails and staying connected to their industry peers. What is the scoop they obtain? It is the information about the OBA’s Bankers’ Night Out and what’s new and relevant to their jobs and their customers. The OBA developed Bankers’ Night Out to allow industry professionals to network while learning about important issues facing the industry in a relaxed en-vironment. What was once a simple gath-ering over dinner with a few professionals has grown into much more. Bankers’ Night Out events now take place in several locations around Oklahoma. This October and November, these events will are scheduled at six different locations across the state. Industry issues remain a top priority, but networking and socializing has become just as important. “Bankers’ Night Out is a good time to see people I don’t get to normally see,” said Gregg Vandaveer, president and CEO at Sooner State Bank in Tuttle. “You have the opportu-nity to get to talk to people in a social setting

like the vendors and other people at banks you don’t normally get to meet with.” Bankers’ Night Out is a great chance for industry veterans to introduce their less ex-perienced peers to the OBA. Many of the newer professionals in the industry have had limited exposure to the OBA: Their ex-posure may have been limited to an OBA school or workshop in addition to commu-nications efforts from the OBA. By attend-ing Bankers’ Night Out events in a more social environment, these members can learn more about their industry and meet peers as part of a great, unique experience. Brad Swickey, president and CEO at Valliance Bank, often encourages his younger employees to attend these events. “It gives younger bankers an opportunity to learn what OBA is all about and I think that is really important so that as guys my age retire and move on, we have young bankers behind us who have been engaged in OBA activities since their youth and are commit-ted to carrying out our mission of service to the bankers across the state,” Swickey said. Once old friends reconnect and new friendships are made, the next portion of the evening begins. With changes coming out of

Washington as often as the wind changes di-rection, it can be difficult to stay on top of it all. “It is important to show bankers the relevance of the political process to their profession,” said OBA President and CEO Roger Beverage. Beverage is able to show that relevance by discussing with attendees what is going on in Washington as well as what OBA is do-ing to have a say in those decisions on be-half of members. Along with spending time in Washington, Beverage spends countless hours in communication with the Oklaho-ma delegation about the impact their deci-sions will have on Oklahoma banks. “During each event, I can frequently see light bulbs going on and bankers making the connection about the importance of the political process and how it directly impacts their jobs. Helping bankers make that con-nection, and helping them to understand the significance of what they do to help their cus-tomers and their communities, makes these programs worthwhile for me personally,” said Beverage. “I really enjoy the time I get to spend out of the office with bankers and to visit with them about their profession.” Communication at Bankers’ Night Out

isn’t a one-way street though. In addition to OBA providing valuable information on the industry, the evening provides numer-ous opportunities for members to share with OBA about what is important to them. “As chairman, it gives me a chance to listen to how they are dealing with Dodd-Frank and other regulatory and compli-ance issues that are frustrating so many bankers these days,” Swickey said. What OBA members share does not fall on deaf ears: If anything, their feed-back can be considered the most important part of the evening for the OBA. Without members sharing their thoughts with the OBA, it would be difficult for the OBA to maintain its mission of representing the Oklahoma banking industry to the best of its ability. The OBA already has a great un-derstanding on what is going on at both the state and national level that concerns Okla-homa banks, but hearing from its members provides additional valuable insight. “It is great to talk to bankers one-on-one,” Beverage said. “I’m able to learn more about what is going on with them and their customers. I learn what is im-portant right now to the bankers.”

Bankers’ Night Out From Page 1


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October 201210 2012 BSA-AML Seminar, Tulsa

10 Banking 101 - Part 2, webinar

11 2012 BSA-AML Seminar, Oklahoma City

11 Bankers’ Night Out, Lawton

16 Commercial Real Estate Loan Documentation, webinar

16-17 Real Estate Lending Compliance Seminar, Oklahoma City

18 CFPB Proposed Changes - Part I, webinar

22 Bankers’ Night Out, Stillwater

25 CFPB Proposed Changes - Part II, webinar

26 Women In Banking Conference, Norman

30 OBA/BKD Symposium, Oklahoma City

November 20121 Bankers’ Night Out, Krebs

1 CFPB Proposed Changes - Part III, webinar

OBA EVENTS CALENDAR After a one-year hiatus, the OBA’s Annual Golf Tour-nament was back in full swing this past month. Dozens of golfers from across the state converged on Rose Creek Golf Course in Oklahoma City on Sept. 24 to challenge themselves in the Annual Golf Tournament. Everyone seemed to have fun, but, in the end, the winners were:

FHLBank Championship Flight (handicaps 0-10) 1st place — Greg Anderson, As-sured Lending Services, Edmond 2nd place — Brian Sterkel, Inter-Bank, Oklahoma City 3rd place — Chase Tippens, Bank of Commerce, Yukon

VERGE Flight (handicaps 11-16) 1st place — Mike Wynn, Cross-First Bank, Oklahoma City 2nd place — Monty Hartley, Oklahoma State Bank, Vinita 3rd place — Terry Bemis, First National Bank & Trust, Okmulgee

OBA Flight (handicaps 17-19) 1st place — Jerry McNabb, Valliance Bank, Oklahoma City

2nd place — Nevyle Cable, First National Bank & Trust, Ok-mulgee 3rd place — Jeff DeSpain, First Liberty Bank, Oklahoma City

ABA Flight (handicaps 20-plus) 1st place — Ryan Newby, Bank of Laverne, Laverne 2nd place — Matt Clouse, Val-liance Bank, Norman 3rd place — Jan Miller, Bank of Commerce, Catoosa

Flag Prizes Closest to the pin #4 — Heath Hartley, Oklahoma State Bank, Vi-nita

Closest to the pin #15 — Greg Anderson, Assured Lending Services, Edmond Long drive #8 — John Ryan, Verge Network Solu-tions, Oklahoma City

OBA golfers enjoy time at Annual Tournament

Forming a plan — Chase Tippens studies his upcoming tee shot during the Annual Golf Tournament last month.


Gayla SherryPRESIDENT/GAYLA R. SHERRY ASSOCIATES [email protected]

As we begin to feel the chill of autumn weather, our thoughts turn to observing Veterans’ Day in November. During this time, we respect and honor the many veterans who have served in the military. The federal Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA) requires employers to reinstate veterans as employees, if they gave proper notice in advance of their ser-vices. Their tour of duty must be less than five years to qualify for this reinstatement. According to USERRA, employ-ers must place the returning veterans in the jobs they held, had they not served in the military. The requirements also entail providing the same seniority, pay and other benefits determined by senior-ity to returning veterans. The employer must also provide reasonable training to update any skills that are now required.While there are requirements under USERRA for those veterans who were not previously employed, there are also initia-tives to encourage hiring returning veter-ans for the first time. The Office of Federal

Compliance and Contractor Programs (OFCCP) is now requiring federal con-tractors to report the number of veterans who are employed on annual VETS-100A reports and Affirmative Action Plans. (This requirement applies to banks that currently employ 50 or more for the Af-firmative Action Plan, and 100 employees or more for the VETS-100A report.) The current reporting requirements are likely to expand to require federal contractors to actively recruit and place veterans. Even though hiring veterans may not be required for Affirmative Action Plan compliance, there are benefits for employers who consider hiring veterans. Returning veterans are highly skilled, well-trained and highly versatile. Mili-tary service helps to mature individuals and tends to develop a very strong work ethic. Veterans are accustomed to adapt-ing to structured policies and procedures. Most veterans have extensive experience in skill sets that are transferable to the private sector. Veterans tend to have a high degree of commitment – this commitment translates into longer tenure. And, some

veterans’ advocates emphasize that it is our duty to employ returning veterans in return for their sacrifices for our country. In some cases, employers may be hesi-tant to hire veterans who have been injured or who are suffering from the highly pub-licized “Post-Traumatic Stress Syndrome,” which has unfortunately affected some veterans. This is a serious illness, indeed, there are now many advances in treating it. Physical disabilities may require accom-modation in the workplace, but most of the changes are reasonable and relatively easy to put in place. With the treatments avail-able for veterans, there really is no cause for concern for private employers. In fact, hir-

ing a veteran with disabilities provides far more benefits and returns than challenges. In these cases, the veterans will likely be-come very loyal and committed to working for you and, as stated earlier, commitment translates into longer tenure. The bottom line for this Veterans’ Day – honor those who have served us so nobly as you always have, but this year, consider hiring a veteran. It is good business sense to hire someone who not only has volunteered to sacrifice for our country, but who also boasts unique, unparalleled workplace abilities. Gayla R. Sherry is President of Gayla R. Sherry Associates, Inc. – an Oklahoma based consulting firm that provides HR consulting, training and EEO compliance services. Look for Gayla’s weekly tip on YouTube, “Tuesday Tip” for quick updates to management and human resources is-sues. Gayla will be facilitating the upcom-ing HR Seminar at the OBA on Nov. 8, “Navigating the Landmines of HR Compli-ance and Best Practices.” Contact Janis Reeser for information about the seminar. www.grsainc.com; 405-755-0597.

Veterans’ Day: time to think about possible hiringsn EDUCATION UPDATE

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Legal BriefsIN THIS ISSUE:

• New Safe Deposit Law• The Second Appraisal• Proposed Homeownership

Counseling ChangesO C TO B ER 2012

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Pauli LoefflerOBA COMPLIANCE [email protected]

Reg Z, Late Fees and the Single Pay Note For the last several months, I have gotten at least three questions a week about late fees: What is the maximum late charge on consumer loans in Okla-homa? - The GREATER of 5 percent of the amount of the unpaid installment or the amounts as set by the Administrator of the Oklahoma Dept. of Consumer Credit (or as provided by law) currently $23.50. What language should we use to allow the late fee to adjust if it increases as provided under the Oklahoma U3C? - See the prior answer. What is the maximum we can charge on non-consumer loans? – You are free to con-tract for any amount provided it does not “shock the conscience” of the court. Can we charge a late fee on a single pay note? -- No, because it is not a loan payable in installments. The answers to these questions are covered in greater detail in the June 2012 Legal Update. At least I thought I had covered all these questions until I was made aware of a provision in the Commen-tarytoRegZthatIhadpreviouslyoverlookedbutwhicha software forms provider indicates serves as the basis for choosing to disclose a late fee on a single pay note. In light of this, it seems the issue of charging a late fee on a single pay consumer note needs to be revisited. For closed-end credit, Section 1026.18 Content of Disclosures provides:

[T]he creditor shall disclose the following infor-mation as applicable to the loan:

(l) Late payment. Any dollar or percentage charge that may be imposed before maturity due to a late payment, other than a deferral or extension charge.

The Commentary to this states: 18(l) Late Payment

1. Definition. This paragraph requires a disclosure only if charges are added to individual delinquent installments by a creditor who otherwise consid-ers the transaction ongoing on its original terms.

Late payment charges do not include:i. The right of acceleration.ii. Fees imposed for actual collection costs, such as

repossession charges or attorney’s fees.iii. Deferral and extension charges.iv. The continued accrual of simple interest at the

contract rate after the payment due date. How-ever, an increase in the interest rate is a late pay-ment charge to the extent of the increase.

2. Content of disclosure. Many state laws authorize the calculation of late charges on the basis of either a percentage or a specified dollar amount, and permit imposition of the lesser or greater of the 2 charges. The disclosure made under §1026.18(l) may reflect this alternative. For example, stating that the charge in the event of a late payment is 5% of the late amount, not to exceed $5.00, is sufficient. Many creditors also permit a grace period during which no late charge will be as-sessed; this fact may be disclosed as directly related information. (See the commentary to §1026.17(a).)

At this point, you are asking yourself: If the Com-mentary to 18(l) specifically refers to “installments,” meaning more than one payment (not including a down payment), how can there be a late fee on a single pay note? This is where the provision I had previously overlooked comes into play. Section 1026.17 contains the general disclosure require-ments for closed-end credit. Section 1026.17 (a) provides:

(a) Form of disclosures. (1) …The disclosures shall be grouped together, shall be segregated from everything else, and shall not contain any information not direct-ly related to the disclosures required under §1026.18…

It is the Commentary to subsection 17(a) that may possibly permit the imposition of a late fee on a single pay note. The comment itself is part of the various ex-amples of information “directly related” under §1026.18:

5. Directly related. The segregated disclosures may, at the creditor’s option, include any information that is directly related to those disclosures. The following is directly related information:i. A description of a grace period after which a

late payment charge will be imposed. For ex-ample, the disclosure given under §1026.18(l) may state that a late charge will apply to “any payment received more than 15 days after the due date.”xv. A late-payment fee disclosure under

§1026.18(l) on a single payment loan. Granted I have been providing legal and compli-ance advice for the OBA in excess of 8 years, but I had never read this particular comment. It is this provision that the software provider cites while acknowledging how exceptionally rare it is to invoke this provision:

While most single pay loans do not impose late charges before maturity, the section 1026.17(a)(5)(xv) of the Of-ficial Staff Commentary on Regulation Zcreatesanexceptiontothisrule.Under this exception, creditors are al-lowed to disclose late payment fees on single payment loans as “directly re-lated information.” (Emphasis added) But before, you start including a late

fee disclosure on each and every one of your single pay notes based on 17(a)(5)(xv) of the Commentary disclo-sure, there are still some issues to address. The first is that the loan must be one that is excluded from cover-age under the Title 14A, the Oklahoma version of the Uniform Consumer Credit Code (“U3C”). As indicated in the June 2012 Legal Briefs, the Okla-homa U3C allows for a late fee on any installment not paid in full within ten (10) days after its scheduled due date. (Tit. 14A O.S. Section 3-203). It also specifically defines “payable in installments” in Tit. 14A O.S. Section 1-301 (13) to require two or more periodic payments (other than a down payment) when interest is charged. A single pay loan is NOT an installment loan under the U3C, so no late fee can be imposed on any single pay loan subject to its provisions. If the loan is not subject to the Oklahoma U3C,onlythenwewouldconsidertheRegZCommen-tary with regard to disclosures and the imposition of late fees.SowhatloanswouldcomeunderRegZbutnottheUC3? In addition to commercial loans, there are:

1. Loans made to enable the debtor to build or purchase a residence or to refinance such loan when made by a lender whose loans are super-vised by an agency of the United States or made by a Federal Housing Administration approved mortgagee unless the loan is made subject to this act by agreement (“residential mortgage transac-tion”). [Tit. 14A O.S. Section 1-202].

2. A “loan primarily secured by an interest in land”, if at the time the loan is made the value of this collateral is substantial in relation to the amount of the loan, and the loan finance charge does not exceed thirteen percent (13%) per year calculated according to the actuarial method on the unpaid balances of the principal on the assumption that the debt will be paid according to the agreed terms and will not be paid before the end of the agreed term. [Tit. 14A O.S. Section 3-105].


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3. Credit that exceeds the threshold amount (same asforRegZasadjusted)unlessaprivateeduca-tion loan or secure by land [Tit. 14A O.S. Sec-tion 3-104]. However, a loan over the threshold amount secured solely by a mobile home (no land) that is the principal dwelling does not come under the OK U3C.

Now even if the loan is not subject to the U3C (and this would include commercial loans), but the late fee language states that the fee may be imposed whenever an installment is not paid in full “x” days following the due date, we still have problems. By using the term “installment,” the note or loan agreement would need to include language to modify the ordinary and generally accepted meaning of the term “installment” to include a loan with only one required payment. More problematical is whether the language of Sec-tion 1026.18(l), emphasized in the explanation from the software provider, above, can even apply with regard to a single pay note except in a limited number of situa-tions. As indicated, in order to impose a late charge on a single pay note, it must be before the loan has matured per the language of the subsection: the charge that may be imposed before maturity due to a late payment… Maturity is generally defined as the date on which the outstanding principal (and interest) of a note, draft, acceptance bond, or other debt instrument becomes due and payable. If a single pay note has not matured (the due date for the single payment is still in the future), then the note will

have to provide an alternative of “maturity” to be a date after the actual due date of the loan in order for the late feedisclosedunderRegZtobeassessed.Youwillneedtolook carefully at your loan agreements for a single pay loan and an installment loan to see if there is a difference in the late fee disclosures between the two. If they are identical, I would be leery of imposing a late fee on a single pay note. In any event, you should consult your legal counsel wheth-er such language clearly and unambiguously provides for imposition of a late fee on a single pay note. Sodoes17(a)(5)(xv)oftheRegZCommentaryRE-ALLY allow the imposition of a late fee on a single pay note at all? Maybe. Let’s say you had a purchase or refi-nance of a dwelling with new money out and a single pay note so that the U3C does not apply. AND you know that payment of the note will be delayed due to right of rescission, or the need to provide a revised TIL, or some other reason. Provided the disclosure either does not use the term “installment” or defines it to mean any pay-ment regardless of number required per the terms of the loan, then it is possible. Otherwise, I don’t see how Reg Zallowstheimpositionofalatefeeonasinglepaynote.

New Safe Deposit Law Your customer, who has rented a safe deposit box, dies. The next thing you know, his adult children or siblings or parents are in the bank and would like to be able to remove the contents. You repeat what you’ve been saying for decades: “We’re sorry, but other than

the search procedure after death under Section 1308 of the State Banking Code which would permit someone to look in the box for a copy of a will of the decedent, a deed to a burial plot, life insurance policies on the deceased customer, or any trust he might have had, we cannot otherwise open the box when the sole remain-ing renter has passed away until and unless a personal representative has been appointed for the estate. We can then permit entry by the personal representative” In recent years, that speech has changed a little bit because a new section 1301.2 was added to the Banking Code in 2006, to allow a renter to grant authorization for one or more persons to have access to that safe de-posit box upon the death of the lessee, and the financial institution in which the safe deposit box is located is required to grant such access, subject to certain condi-tions, which include requirements that:

- The last surviving lessee of the box has died;- The person seeking access provide an affidavit that

he is the same person named in the authorization, and he must attach a copy of the authorization;

- The authorization must not have been revoked; and

- The affidavit indicates the affiant believes no es-tate proceeding will be commenced with respect to the estate of the deceased lessee.

If those conditions are satisfied, the bank may allow the person named in th e authorization to enter the box and, presumably, remove any contents. The bank is protected from liability. It prevents the box from just hanging around, and it allows the bank to move on. Obviously, for that statute to work, the renter must think ahead and proactively execute an authorization while he is still alive. Unless your bank has educated your safe deposit renters about the availability of this method of allowing access after death, it’s likely your customers know nothing about it and you have few instances where an authorization has been documented. Fast forward to the most recent legislative ses-sion. A bill was filed that would have required a bank, upon request from the heirs, to open a deceased renter’s safe deposit box, inventory the contents, and value the contents. If the value of the contents was under $20,000, the bank could turn the contents over to the heirs. I could imagine shrieking throughout Oklahoma safe depositland as I read the proposal. We worked so hard to eliminate the post-death inventory requirement from the statute. We certainly didn’t want it back. And having the bank value the contents? Are you kidding? You are smart folks, but how would you realize the penny you are looking at in the box is a rare 1943S that is one of the few not made of zinc and steel and it is therefore worth over a million dollars? How would you recognize that the stamp on the ordinary-looking envelope is the 15 cent Lincoln stamp that, even used, is worth $20,000? Do you really want to research baseball cards, jewelry, historic documents? Weigh the gold in the teeth being stored in the box and calculate what it’s worth based on that day’s spot price for gold? Heavens, no.

Mary Geth GuardOBA COMPLIANCE [email protected]

Oklahoma BankerOctober 2012 13Continued from previous page

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The OBA got involved immediately. The authors really wanted there to be a procedure for getting the contents of the box into the hands of heirs. That’s a good thing from the bank’s point of view, too, so we gutted the bill and rewrote it. The resulting piece of legislation, HB 2787, was signed into law by the governor and will take effect November 1, 2012. It amends Section 906 of the State Banking Code. That is the section of law that deals with what hap-pens when the owner of a deposit account dies. Just to review, if a person with a sole ownership account dies without having designated payable-on-death beneficia-ries and the amount in the account at the time of death is $20,000 or less (for years it read “$5,000 or less”) the bank may transfer the funds to the known heirs of the deceased upon receipt of an affidavit sworn to by the known heirs of the deceased which establishes jurisdic-tion and relationship and states that the owner of the account left no will. The affidavit shall be sworn to and signed by the known heirs of the deceased. The new legislation creates a subsection (A)(2) to Section 906. Here is how the new section reads: Upon the death of an individual who is the sole renter of a safe deposit box in a bank or credit union, the bank or credit union may open the box in the presence of all known heirs and transfer or release the contents to such heirs upon receipt of an affidavit which establishes jurisdiction and relationship to the deceased and states that the renter of the safe deposit box left no will or that the contents of the safe deposit box are the only known assets of the deceased renter. The affidavit shall be sworn to and signed by the known heirs of the deceased and the same shall swear that the facts set forth in the affidavit establishing jurisdiction, heirship and intestacy or that the contents of the safe deposit box are the only asset of the deceased are true and correct. Every known heir shall either be present in person or by a duly authorized agent. If any known heir is unable to be physically present for the opening of the box and transfer of the contents, such heir may appoint an agent by executing authorization in writing in the following form: “I hereby authorize (name of person) to act as my agent at the opening and transfer of contents of safe deposit box (number or other identifi-cation) at (name of financial institution.” The authoriza-tion form shall be signed and dated by the heir and nota-rized. The bank or credit union may impose its standard fee for drilling the box if the heirs cannot provide the key for opening. Unlike a deposit account, safe deposit contents are unique and you have no idea from one box to another what they are going to be. Requiring all of the heirs to be present for the opening of the box allows you to obtain the affidavit, count noses, open the box, then let THEM work out who gets what. If one or more of the heirs cannot be present at the box opening, they can execute the very simple language for appointing an agent to represent them for that purpose. Don’t open the box under this section unless all the parties and/or their agents are there. If the parties don’t think they’ll be able to work out the who-gets-what aspect of it all, they need to go to court instead. This is a procedure that only works when all the parties are willing and able to play nice. Unlike the deposit account statute, which only comes into play if the person died within a will, this new

section of law for safe deposit boxes is actually broader. It can be used either with a renter who died without a will, or with a renter who did leave a will, but didn’t leave any known assets other than the contents of the safe deposit box. If you have to drill the box because none of the heirs can provide a key, you may charge your standard fee for drilling the box. There is protection against liability for you if you re-lease the contents following the provisions of this statute in good faith reliance on the affidavit. Let’s say the deceased individual’s only assets con-sisted of old gold coins in the safe deposit box. He left a will that specified everything is to go to his secret mis-tress. He left a wife who’s mad as, well, you know what. The wife can submit the affidavit to you if she is the sole heir and can get the contents of the box. Does she then have any legal duty to give them to the person named in the will? Truly, it’s not your concern. If there were known assets other than the contents of the box, the estate (including the safe deposit box contents) would need to go through probate. If the box contents are the only known estate asset, this procedure may instead be followed. This provides a new option for you. No inventory, no valuation, just a simple handoff procedure.

The Second Appraisal Many of you have heard about proposed rules that would implement the Dodd-Frank Act’s provisions on second appraisals, and you know that on these particu-lar appraisals, you are not allowed to charge the cus-tomer. What you may not understand is the context for these requirements. There is a new category of mortgage loan under Dodd-Frank that is called a “higher-risk mortgage loan.” A higher risk mortgage loan is a closed end consumer credit transaction (which means it is to a consumer, primarily for a personal, family, or household purpose) that trips certain rate triggers and is secured by the con-sumer’s principal dwelling. There are two rate triggers for first lien loans (there’s one for jumbo loans –2.5% over the APOR, and one for non-jumbo loans – 1.5% or more over the APOR) and there’s one rate trigger for subordinate lien loans (3.5% or more over the APOR). Even if the loan trips the rate triggers, is covered byRegZasaconsumercredittransaction,isclosedend, and would be secured by a lien on the consumer’s principal dwelling, it could fall within an exception to the definition of higher-risk mortgage loan if it meets the test for being a “qualified mortgage.” Of course, we don’t yet know exactly what a “qualified mortgage” is because that term is being defined in a separate rule-making – the ability to repay proposal. We do know some general parameters, however. A qualified mort-gage is one secured by lien on a dwelling that meets a laundry list of requirements and doesn’t have any of the “bad stuff” attendant to it (no negative amortization, no balloon payment unless the creditor meets the “rural or underserved areas criteria, no interest only, limits on prepayment penalties, limits on points and fees, limit on term to 30 years, except in high cost areas, etc.) If the dwelling doesn’t include a mortgage on real

estate, you’re also going to escape coverage. If a loan you’re making does fit all the elements necessary for it to be a higher-risk mortgage loan and it doesn’t fit within the qualified mortgage exemption, you cannot make the loan unless you first:

• Obtainawrittenappraisalperformedbyacerti-fied or licensed appraiser who conducts a physical property visit of the interior of the property (even if the transaction amount is under what would normally require the use of a certified or licensed appraiser).

• Obtainanadditionalappraisalfromadifferentcertified or licensed appraiser if the purpose of the higher-risk mortgage loan is to finance the purchase or acquisition of a mortgaged property from a seller within 180 days of the purchase or acquisition of the property by that seller at a price that was lower than the current sale price of the property. The additional appraisal must analyze the difference in sale prices, changes in market conditions, and any improvements made to the property between the date of the previous sale and the current sale.

• Providetheapplicant,atthetimeoftheinitialmortgage application, with a statement that any appraisal prepared for the mortgage is for the sole use of the creditor, and that the applicant may choose to have a separate appraisal conducted at the applicant’s expense.

• Providetheapplicantwithonecopyofeachap-praisal conducted in accordance with TILA sec-tion 129H without charge, at least three (3) days prior to the transaction closing date.

The “additional” appraisal is only needed if you have a situation where one person acquires or purchases it, then sells it to another – your prospective borrower – who is seeking financing from you to acquire it as his principal dwelling at a price greater than what the seller paid within 180 days or less of the seller’s purchase or acquisition of the property. The fact is, you may not have many of the types of loans that require the additional appraisal, but if you have any higher-risk mortgage loans being made to allow someone to finance the purchase of his principal dwelling, you have to exercise reasonable diligence to ascertain what the underlying facts are about when the seller acquired the property. That inquiry will need to be performed on every higher-risk mortgage loan. And if you find that you’re dealing with a “flip” – something that meets the 180 days or less test – you’re going to have to dig deeper to ferret out purchase price and all the rest. If an additional appraisal is triggered, you must obtain it from a different certified or licensed appraiser. This statutory mandate would be implemented through proposed § 1026.XX(b)(3). Note that an ap-praisal previously obtained in connection with the seller’s acquisition or the financing of the seller’s acquisi-tion of the property cannot be used as one of the two required appraisals The intent of this requirement is to discourage prop-erty flipping scams, a practice in which a seller resells a property at an artificially inflated price within a short time period after purchasing it, typically after some minor renovations and frequently relying on an inflated appraisal to support the increase in value.

Oklahoma Banker October 201214Continued from previous page

Under the proposal, the additional appraisal must be obtained prior to the consummation of the higher-risk mortgage loan. The additional appraisal must also be done by a certified or licensed appraiser who conducts a physical visit of the interior of the prop-erty. Plus, it must include an analysis of:

• Thedifferenceinsaleprices;• Changesinmarketconditions;and• Anyimprovementsmadetothepropertybetween

the date of the previous sale and the current sale. They are considering an exemption for higher-risk mortgage loans in “rural” areas where there might be particular difficulty finding two competent appraisers. They are thinking about using the new “Transaction Coverage Rate” instead of the APOR as the benchmark for comparison if they tinker with the finance charge definition and exclusions, so nothing is set in stone yet, but you might want to have someone in your bank run the numbers and see if you have loans that would meet the definition of higher-risk mortgage loan if it were applicable today, examine them to see if you think they might qualify as “qualified mortgages” and try to get a sense for the extent to which this part of Dodd-Frank would even affect you. My guess is not much. I hope I’m right.

Proposed Homeownership Counseling Changes Dodd-Frank contains several requirements related to homeownership counseling. They consist of both amendments to RESPA and amendments to TILA. Regulations are required for implementation. The CFPB has the rulemaking authority. The goal of these provisions is to facilitate getting consumers connected with qualified counselors who can assist them in improving their housing conditions and in meeting the responsibilities of tenancy or homeown-ership. The counselors can also help borrowers evalu-ate whether interest rates may be unreasonably high or repayment terms unaffordable, and ultimately, the hope is that this may help reduce the risk of defaults and fore-closures. The Consumer Financial Protection Bureau pro-posed amendments to Regulation X (RESPA) and RegulationZ(TILA)onAugust15,2012toimplementthe homeownership counseling requirements of Dodd-Frank. Under these proposals, you’ll be providing a new disclosure early in the loan process. Applicants for federally related mortgage loans (as that term is defined in RESPA) will be notified of the availability of home-ownership counseling early in the loan application process via a list of homeownership counselors that is to be included with a “home buying information booklet” prepared by CFPB. There is an exception for Home Equity Conversion Mortgage apps. The term “federally related mortgage loans” in-cludes purchase money mortgage loans, subordinate mortgages, refinancings, closed-end home-equity mortgage loans, home-equity lines of credit, and reverse mortgages. In addition, pre-consummation counseling is actually required in connection with certain types of

applications. You may find, however, that you do not make either one of the types of loans to which the pre-consummation counseling requirements occur. The two types of loans which trigger the pre-consumma-tion counseling are l) HOEPA-covered loans (aka Sec-tion 32, or high cost loans) and 2) instances where you are making a loan to a first-time borrower and the loan may involve negative amortization. In that instance, the first-time borrower must obtain pre-consummation homeownership counseling. Take a look at your loan portfolio to see if you have loans that would trigger the required counseling under either one of those scenari-os. The list provided by the lender must include only homeownership counselors or counseling organiza-tions from either the most current list of homeown-ership counselors or counseling organizations made available by the Bureau for use by lenders in complying with § 1024.20, or the most current list maintained by HUD of homeownership counselors or counseling organizations certified by HUD, or otherwise approved by HUD. The required list is to include five homeownership counselors or counseling organizations located in the zip code of the loan applicant’s current address, or, if there are not the requisite five counselors or counsel-ing organizations in that zip code, then counselors or organizations within the zip code or zip codes closest to the loan applicant’s current address. To facilitate compliance with the proposed list re-quirement, the Bureau is expecting to develop a Web site portal that would allow lenders to type in the loan appli-cant’s zip code to generate the requisite list, which could then be printed for distribution to the loan applicant. The list must include:

• eachcounselor’sororganization’sname,businessaddress, telephone number and, if available from the Bureau or HUD, other contact information; and

• contactinformationfortheBureauandHUD. The lender will be required to provide the list no later than three business days after the lender, mort-gage broker or dealer receives a loan application (or information sufficient to complete an application). The proposal also allows a mortgage broker or dealer to provide the list to those applicants from whom it receives or for whom it prepares applications. Where a mortgage broker or dealer provides the list, the lender is not required to provide an additional list but remains responsible for ensuring that the list has been provided to the loan applicant and satisfies the requirements. Proposed § 1024.20(a) sets out the requirements for providing the list to the loan applicant. It can be done in person, by mail, or by other means of delivery. The list may be provided to the loan applicant in electronic form, if done in compliance with E-SIGN. The lender is not required to provide the list if, be-fore the end of the three business day period, the lender denies the loan application or the loan applicant with-draws the application. Open end credit is affected, too, but the timing is a little different. For applications for open-end home-secured lines of credit covered under TILA, the timing andmethodsofdeliverysetoutinRegulationZ,12CFR1026.40, for disclosures involving such loans may be

used instead of the requirements in proposed § 1024.20. Under proposed § 1024.20(a), there would also be flex-ibility in the requirements for providing the list when there are multiple lenders and multiple applicants in a mortgage loan transaction. In connection with those two categories of loans where counseling is actually required, the creditor must receive certification that a consumer has obtained counseling on the advisability of the mortgage from a HUD-approved counselor, or at the discretion of HUD’s Secretary, a State housing finance authority. In terms of the certification, the certification form must include:

• thename(s)oftheconsumer(s)whoobtainedcounseling;

• thedate(s)ofcounseling;• thenameandaddressofthecounselor;• astatementthattheconsumer(s)receivedcoun-

seling on the advisability of the high-cost mort-gage based on the terms provided in either the good faith estimate or the high-cost loan disclo-sures; [This content requirement applies only on the high cost morgages.] and

• astatementthatthecounselorhasverifiedthatthe consumer(s) received the § 1026.32(c) disclo-sures or the disclosures required by RESPA with respect to the transaction.

The counseling required for a high-cost mortgage shall not be provided by a counselor who is employed by or affiliated with the creditor extending the high-cost mortgage. The application can be processed while awaiting the certification of counseling; the loan simply can’t be consummated. The CFPB is proposing a two stage process in which counseling would occur prior to and sepa-rately from the receipt of the high-cost mortgage disclosures, after which the counselor would confirm receipt of the disclosures, answer any additional ques-tions from the consumer, and issue the certification. Under these circumstances, a consumer obtaining a high-cost mortgage would have at least two sepa-rate contacts with his housing counselor, the first to receive counseling on the advisability of the high-cost mortgage, and the second to verify with the counselor that the consumer has received the applicable disclo-sure. This is specific to high-cost loans because of the additional disclosures that are given in connection with such applications. The two stage process doesn’t come into play with the other type of loan for which pre-consummation counseling is required (first-time borrower entering into a possible negative amortiza-tion loan). For open-end credit plans subject to § 1026.32, the proposal permits receipt of either the good faith esti-mate required by RESPA or the disclosures required under § 1026.40 to allow counseling to occur, because 12 CFR 1024.7(h) permits the disclosures required by § 1026.40 to be provided in lieu of a good faith estimate, in the case of an open-end credit plan. It is permissible for a creditor to pay the fees of a counselor or counseling organization for high-cost mortgage counseling. However, to address potential conflicts of interest, the Bureau is also proposing that a creditor may not condition the payment of these fees on the consummation of the high-cost mortgage.


More than two dozen bankers from across the state recently completed the 2012 OBA Basic Banking School, held Sept. 10-13 in Oklahoma City. The students are featured in the photo on this page. Seated on the front row, from left, are: Janis Reeser, director of education at the OBA; Alex Schaffer, Oklahoma Heritage Bank, Ada; Gerardo Troncosco, Bank of Commerce, El Reno; Matt Simunek, Central National Bank of Enid, Enid; Keith Gray, Great Plains National Bank, Hobart; Celia Nance, The Bank, N.A., McAlester; Hilary Cowen, OBA, Oklahoma City; and Amanda Elsey, Regent Bank, Nowata. Standing in the middle row, from left, are: Joshua Nunnelee, First National Bank & Trust Co., Chickasha; Kelli De-ver, Bank of Commerce, Yukon; Alysha Locke, The Bank of Kremlin, Kremlin; Adam Chace, Stroud National Bank, Wellston; Bode Bond, Community State Bank of Canton, Canton; Jamie Bloyd, Bank 7, Oklahoma City; Patsy Judd, Farmers Exchange Bank, Helena; Kristin Ewing, OBA, Oklahoma City; Catherine

Courey, Valliance Bank, Oklahoma City; Sarah Williams, Central National Bank of Enid, Enid; Paige Balderson, First Bank & Trust Co., Perry; Lora Miller, The State Bank of Wynnewood, Wyn-newood; and Dona Dickens, The Bankers Bank, Oklahoma City.

Standing on the back row, from left, are: Cory Adcock, The Farmers State Bank, Quinton; Mike Sikes, Oklahoma Fidelity Bank, Oklahoma City; Seth Smiley, Oklahoma State Bank, Vinita; Kip Herburger, Central National Bank of Enid, Tulsa; Suzanne Duncan, Great

Plains National Bank, Oklahoma City; Trisha Thompson, Citizens Security Bank & Trust, Bixby; Casey Shannon, Bank of Commerce, Catoosa; Keegan Grooms, First Liberty Bank, Oklahoma City; and Mary Dexter, First Liberty Bank, Oklahoma City.

Students complete OBA Basic Banking School


Jim DavisOBA MEMBER [email protected]

Jim’s travels bring him face-to-face with success storiesn FROM THE ROAD...

During this past summer I trav-eled a lot around our great state from Boise City to Westville, from Miami to Ardmore, from Erick to Hugo and I’m constantly reminded of the beauty (even though it was very hot and dry this summer) of our state. Soon after Okemah celebrated the birthday of Woody Guthrie, who became famous for his song “This Land is Your Land, This Land is My Land,” a museum collection honoring him was purchased and moved from New York to Tulsa, thanks to the George Kaiser Fam-ily Foundation. The city of Tulsa is now construct-ing an area known as Guthrie Green Park as a gathering place for folks to just come and enjoy. Guymon and the surrounding area of the Panhandle continues to benefit from the 5,000 employees associated with Seaboard Farms. This includes High Plains Energy, a subsidiary of Seaboard Foods, which is a bio-diesel refinery. (I’m uncertain about the cor-

rect terminology for converting feed stock that comes from animal fat, used french-fry grease and beef tallow into a usable form of fuel that is more efficient than regular diesel fuel). I heard a fellow say on TV the other day say that without oil Oklahoma would be Arkansas, and I suppose there’s some truth to that, and we benefit from jobs located on the Oklahoma/Arkansas border through the coun-ties of Adair, Sequoyah and LeFlore. Our banks benefit from this economic stronghold even though that area has also had some economic setbacks due to plant closings and the lack of adequate rainfall. In addition, the Oklahoma Indian tribes have added substantial economic improvements throughout our state espe-cially in the eastern and southern areas. As most of you know, loan demand is down, deposits are up and it is dif-ficult to continue profitability due to the added cost of regulatory compliance. We are truly blessed as I’ve said before

with our good diverse economy, by be-ing in Oklahoma. It was enlightening, busy, good and, as always, pleasurable to visit with our bankers throughout the state. I felt pretty good about the strength of our banking fraternity until September when we went to Washington D.C. and visited with FDIC, OCC, FinCEN and CFPB. For those of you who didn’t go or have not been, it was a sobering visit in my opinion. In some ways I felt a real disconnect between the regulators and the positive effect our banks have on our economy by helping people “catch their dreams,” improve their lifestyle and even reflect-

ing – passing on – the true “ministry of banking” to those we serve. It’s like being on a football field in Oklahoma, we have the ball, we are behind, it’s the fourth quarter, fourth down and three yards to go for the go-ahead score. We can’t just take a knee or walk off in defeat. We didn’t cause the economy to go down, but it is our re-sponsibility to help bring it back. Although many technological changes will be forthcoming that will make the face of banking different in the future, there is still a challenge that needs to be addressed. Whatever your politics are, we need to encourage our employees, our stakeholders and even our customers to take a stand, to first understand what these new and upcom-ing regulations are doing to our banks, through voicing and writing to those regulators and legislators who could make a difference. We/they must realize that without a bank in our communities we will not win the battle of this economy.

Sooner sights — Jim noticed quite a few interesting things on his recent travels. Above is the statue of Woody Guthrie in a park in downtown Okemah. Above right, Jim caught the OBA’s Janis Reeser (at left) congratulating McClain Bank’s Karla Brakefield during Brakefield’s retirement reception at the bank in Purcell. At bottom right is the headquarters of Seaboard Farms in Guymon.


Blundell Bridges Fiegel Havens Martin Nunnery Pennington Van Buskirk

Shamrock Bank, Altus Larry McLaughlin joins the organization as senior vice president in its Altus market. McLaughlin has more than 28 years of bank-ing experience. He is an active member of the Altus Chamber of Commerce, the Kiwanis Club, the American Society of Farm Managers and Rural Appraisers and several others.

Shamrock Bank, Coalgate Todd Miller was promoted to senior vice president and elected to the board of directors. Miller has more than 21 years of banking experience in the Caddo market. He began working in the Caddo location as a loan officer and now serves as its community banking president. He is an active member of several community and civic activities.

First Bank & Trust Co., Duncan Leslie Bridges has been promoted to executive vice president and senior credit officer. She has been in the financial indus-

try for 23 years, 20 of those with First Bank & Trust Co. She holds a Bachelor of Busi-ness Administration Degree specializing in Finance from Cameron University. Melanie Martin has been promoted to executive vice president and chief financial officer and cashier. Martin has a Bachelor of Science degree from the University of Central Oklahoma. Hal Pennington has been promoted to executive vice president and senior retail man-ager and trust officer. He has more than 37 years’ experience in the banking industry. He received a Bachelor of Arts Degree, a Masters of Business Administration, and a Juris Doctor-ate Degree from the University of Central Oklahoma and Oklahoma City University. Susan Van Buskirk has been promoted to executive vice president and senior opera-tions officer. She has been in the financial in-dustry for 24 years, 13 of which have been with First Bank & Trust Co. She holds a Bachelor of Administration Degree specializing in Finance and Accounting from Cameron University.

BancFirst, Edmond Brian Blundell has been hired as vice president commercial lender. Blundell brings 12 years of commercial lending experience to the job. He is a member of the Oklahoma Society of Certified Public Accountants, as well as the Oklahoma Municipal Contractors Association. He has bachelor’s degrees in both finance and accounting from the University of Central Oklahoma. He also received a bachelor’s degree in management as well as his MBA from Oklahoma Christian University.

Coppermark Bank, Oklahoma City Coppermark banker Jacque Fiegel was recently appointed to the Jack Henry & Associates, Inc., Board of Directors as an independent director. Fiegel, who joined Coppermark in 1976, serves as its execu-tive vice president and COO. She is also a member of Coppermark’s board of directors and serves as director and treasurer of both

Coppermark Bancshares, Inc. and affiliate Coppermark Card Services, Inc.

Quail Creek Bank, Oklahoma City Laura Nunnery has joined the bank as vice president in the new private bank-ing area. Her experience throughout her banking career includes mortgage lending, wealth management banking, lending, sales and operational areas. Prior to joining Quail Creek Bank, Nunnery was affiliated with several Oklahoma City area banks. Nunnery attended the University of Central Okla-homa and Oklahoma State University-OKC.

Tulsa National Bank, Tulsa Andrew Havens has been promoted to senior vice president of commercial lending. Havens joined Tulsa National in 2007, previ-ously working for RDK & Associates, Inc., as a loan review specialist. A Muskogee native, Havens earned his finance degree from Northeastern Oklahoma State University.

n OKLAHOMA BANKERS


hollandhall.org

W E LCO M E.The Holland Hall experience is best understood by visiting the campus. Families are invited and encouraged to attend any of the events listed below.

Contact the Admission Team at (918) 481-1111.

Primary School ToursThursday, October 11, 2012 (8:30 a.m.)Tuesday, November 6, 2012 (9:30 a.m.)Wednesday, January 23, 2013 (8:30 a.m.)Tuesday, February 19, 2013 (8:30 a.m.)Tuesday, March 26, 2013 (9:30 a.m.)Wednesday, April 10, 2013 (8:30 a.m.)Thursday, May 9, 2013 (9:30 a.m.)

Middle School ToursTuesday, October 16, 2012 (8:30 a.m.)Wednesday, November 7, 2012 (10:00 a.m.)Wednesday, January 9, 2013 (10:00 a.m.)Tuesday, February 19, 2013 (10:00 a.m.)Tuesday, March 26, 2013 (8:30 a.m.)

Upper School Tours(All tours begin at 8:00 a.m.)Tuesday, October 9, 2012Wednesday, November 7, 2012Wednesday, January 9, 2013Wednesday, February 13, 2013Tuesday, March 28, 2013

Banks in the further reaches of the state escaped some of the ripples from Penn Square. By Michael J. Hightower, Ph.DPrincipal Researcher Oklahoma Bank and Commerce History Project

Contrary to popular opinion, not all banks in Oklahoma were caught in Penn Square Bank’s turbulence. “It didn’t affect us at all,” said Brian Shipp, president of Idabel National Bank. Nestled in the southeast corner of McCurtain County, Shipp’s bank relies on timber, tourism and agriculture to bolster its loan portfolio. Energy lend-ing, then as now, might as well be taking place on another planet. “Most of the local banks, to my knowledge, don’t do a lot of lending outside their market area,” he said. “So the oil bust didn’t affect us. Nor did the oil boom! I have read the books about Penn Square, and the bankers drinking Champagne out of cowboy boots. That did not exist around here.”

Farmers State Bank of Quinton Board Chairman Bill Jordan agreed. “Really, it didn’t have any effect on our bank, per se,” he said. “Being a small, community bank, we weren’t re-ally big enough to be involved in the oil and gas loans, at that particular time.” But in terms of banking culture, Penn Square Bank’s implosion released a tidal wave over the industry. When it receded, nothing was the same. “I think as a result of that, we got a lot more conservative,” continued Jordan as his associates nodded their heads in unison. According to Executive Vice Presi-dent Laura Miller, Farmers State Bank’s problems appeared in the form of plum-meting prices for cattle and real estate. “We had a lot of loan losses,” she said. “And we were very conservative for awhile there. Everybody was tightening their belts.” Longtime board member, bank customer, and Quinton’s most celebrated chuck wagon racer, Jerry Fowler, chimed in with his own memory of the bad old days of belt tightening.

“She got real tight on me!” he ex-claimed, pointing at Laura Miller from across the room. Laughter ensued as Fowler, sporting a cowboy hat and red kerchief, continued in his signature southeast Oklahoma drawl, “I remember those times! I remember those times! It got real personal!” Steve Baggerly, president of the Bank of the Panhandle in Guymon, told a similar tale about banks such as his that were never awash in energy loans, but business cultures based on trust pro-vided scant cover when regulators came calling. “The crisis in the late 80s and early 90s changed the face of banking, and it changed the relationship between the customer and the banker,”Baggerly said.

“The days of going in and getting an un-secured loan because, you know, ‘I know Michael Hightower, he’s a good guy, he’s always paid, so he wants $10,000, sure, no problem …’ Michael wasn’t any dif-ferent in ’83 than he was in ’79, the bank wasn’t really different, but the regula-tors were not going to have that type of relationship anymore. They were going to demand information.” Charlie Butler, president of the First National Bank of Hooker, insisted that “the character issue still repays the loans.” But after Penn Square Bank went down, the regulators would have none of it. Asked what regulators thought about “character loans,” Butler answered without hesitation. “They had no idea what you’re talk-ing about,” he said. The veteran banker summed up the seismic shift in lending practices in a single sentence: “There’s not many handshake deals anymore.” To share your stories about the rise and fall of Penn Square Bank, contact me by email at [email protected] or by phone at 434-249-6043.

Not all banks were caught in Penn Square’s troubles


Loan Administrative Assistant A community bank in Oklahoma City has an opening for full-time loan administrative assistant. Submit resume C/O Margaret Osborne at [email protected] or mail to First Liberty Bank, P.O. Box 21848, Oklahoma City, OK 73156. Fax number is 405-286-0972.

Mortgage Loan OriginatorThe Mortgage Loan Originator is respon-sible for generating loan activity for the Oklahoma City institution’s secondary market department. Duties include screening and interviewing applicants, analyzing financial status and credit worthiness, preparing documentation and meet all investor requirements including wholesale funding procedures. Three years of mortgage loan origination experi-ence with knowledge of conventional, FHA and VA lending required. Please contact Mindy Bowling at 405-262-6577 or at [email protected] for more information. Equal Opportunity Employer M/F/V/D.

CSR/New Account Sales RepA community bank in Oklahoma City has an opening for full-time lead new account rep. Must have one year of banking and account opening experience. Submit resume to [email protected] or mail to First Liberty Bank, P.O. Box 21848, Oklahoma City, OK 73156. Fax number is 405-286-0972.

Teller/Personal Banker and Part-Time TellerFirst Enterprise Bank is looking for outgo-ing, energetic, customer service oriented individuals to fill Full-Time Teller/Personal Banker and Part-Time Teller positions in the Oklahoma City area. Teller experience or cash handling required, personal banker experience preferred. Candidates must have knowledge of balancing procedures and possess ten-key and PC skills, organi-zational skills, good working attitude and strong teamwork ability. Pay is commen-surate with experience. Full-Time Teller/Personal Banker position is located at: 1000 W. Britton Rd, hours are: Monday-Thursday 8 a.m.-4:30 p.m., Friday 8 a.m.-6:15 p.m., and every fourth Saturday 7:30 a.m.-12:15 p.m. Part-Time Teller position is located at 2115 SW 44th hours are: Monday-Friday 2:30 p.m.-6:15 p.m., every Saturday 7:45 a.m.-12:15 p.m. First Enterprise Bank offers an excellent benefits package for full-time employees including health & dental insurance, vision plan, 401k match, paid vacation & holidays. Applications accepted at 2115 SW 44th. FIRST ENTERPRISE BANK. EOE. You may fax your resume to: (405) 606-8401 or e-mail your resume to: [email protected].

CLASSIFIEDS


This second proposal is a different animal from the first one. It’s longer, confusing as the devil and makes no sense for community banks. It would fundamentally change the way you do business in the area of residential real estate mortgage lending. It would require your bank to increase its capital for past-due loans and certain high-volatility commercial real estate loans. This is the proposal that could be the most damaging to Oklahomans, not just to Oklahoma banks. Yes, increased capital means less that’s available for lending at any given point in time, but these risk-weighting mandates are a minefield for community banks.

Beverage From Page 3 In my opin-ion, every bank in Oklahoma should be exempt from these new requirements, but – at a minimum – they should not apply to any bank that’s less than $50 billion. That was the original objec-tive – to implement uniform capital standards among the world’s largest institutions. Community banking wasn’t even a blip on the Basel Com-mittee’s radar when these proposals were originally drafted. The Basel Committee on Banking

Supervision has no idea what your world is like. The community bank model is an unknown quantity in Europe. The rules were not drafted with your bank in mind and, frankly, I’d guess that most members of the Committee think you’re pretty irrelevant anyway. I know better. I know how critical community banks are to our state and its communities. I know what you do

every day to make lives better for your customers. I know how much you care about the success of Oklahomans and improving life for those you serve. And I’ll be damned if I’m going to just sit by and watch Washington peck away at your bank and its ability to serve, survive and prosper. It’s long past time to fight back. Come with me and join the fight.

Community banking wasn’t even a blip on the Basel Committee’s radar when these proposals were orginially drafted.

OKLAHOMA BANKER SUBSCRIPTION — MEMBERS ONLYNAME ____________________________________ BANK _______________________________________

EMAIL __________________________________________

PHONE ___________________________________ FAX __ _______________ __________________________________________________________________

STREET ADDRESS (NO P.O. BOXES) __________________________________________________________

CITY _________________________________________________ ZIP _______________________________

PAY BY CREDIT CARD: For security reasons, please fax ONLY to the OBA’s dedicated registrations fax line: 405-604-9545. BILL TO: o VISA o MASTERCARD

CARD # _________________________________ EXP DATE _________________ NAME _______________________________________ SIGNATURE ____________________________________

PAY BY CHECK: Mail this form with payment to Oklahoma Bankers Association, P.O. Box 960173, Oklahoma City, OK 73196-0173.

For OBA use only: Rec’d Ck# Amt Code: 371

The monthly newspaper of the Oklahoma Bankers Association

• Executive News• Legal Briefs• In-depth analysis of state and national issues• Legislative news• Regulatory issues• Commentary• Charters and changes• Personnel changes• Interesting articles about banks across Oklahoma• Updates on OBA education and networking events• Other topics include Oklahoma banking history, best

practices in bank management and more

Know your industry.

Each month, Oklahoma Banker brings you exclusive news and in-depth analysis that you won’t find anywhere else. There is no better way to gain a deeper understanding of the issues affecting our industry on a state and national level. Oklahoma Banker includes feature stories, legislative and regulatory updates, and information about OBA events. Don’t miss out! Subscribe to Oklahoma Banker today.

START MY SUBSCRIPTION TO OKLAHOMA BANKER TODAY!

___ SUBSCRIPTIONS @ $45/YEAR* = $_____ TOTAL

*Tax and shipping is included


By Tricia AuberleFinancial Education Programs Director [email protected]

Ensuring homeownership will thrive in Oklahoma requires attention to community reinvestment and a healthy housing market. At the Ninth Annual Home-buyer Education Conference on Oct. 30-31 in Edmond, OHEA will present one company’s unique approach to supporting community reinvestment and a healthy housing market. The Reinvestment Fund (TRF), a leader in financ-ing neighborhood revitalization in the mid-Atlantic region, has developed an effective and efficient mapping tool to guide the allocation of resources by identifying where in the community capital investment will have the highest impact. If your community bank is committed to seeing

Oklahoma’s rural communities thrive, join us and TRF’s Catherine Califano as we explore maximizing the impact of capital investment by analyzing key metrics through their data mapping tool. She will be our keynote speaker for lunch and will join the hands-on session in the computer lab. Don’t miss this unique opportunity for hands-on interaction with the mapping tool that utilizes community met-rics to target the highest impact for capital invest-ment. Stay with us for the day and you will leave with all the latest data on what is being built, what is be-ing lent, what is being sold and at what price. Stop by the session on regulation’s impact on mortgage lending and share your experiences and how they impact affordable housing for our communities. Hear how the legislature has revised the Real Estate

Broker Relations Act and what is happening in homeownership education. Finish with an analysis of how local public policy impacts homeownership in Oklahoma. This year’s OHEA conference emphasizes the parts all sectors play in helping Oklahoma families prosper from the investment in their homes. We know the Oklahoma housing market is best served when homebuilders, mortgage lenders, real estate profes-sionals, housing educators and policymakers recognize the benefit of a balanced, open, fair housing market for Oklahoma homebuyers. This conference provides opportunities to examine a comprehensive picture for participants, allowing each sector to understand its impact upon the others. Find out more at www.homebuyereducation.info or email me.

Oklahoma Homebuyer Education Conference set for October

“NO WEAPONS” WINDOW CLINGS NAME ____________________________________ BANK _______________________________________

EMAIL __________________________________________________________________________________

PHONE ___________________________________ FAX __ _______________ __________________________________________________________________

STREET ADDRESS (NO P.O. BOXES) __________________________________________________________

CITY _________________________________________________ ZIP _______________________________

PAY BY CREDIT CARD: For security reasons, please fax ONLY to the OBA’s dedicated registrations fax line: 405-604-9545.

BILL TO: o VISA o MASTERCARD




A new law allows licensed Oklahomans to carry unconcealed handguns. The

Oklahoma Self-Defense Act also allows banks and other entities to ban weapons

on their premises.

The key to effectively enforcing a weapons ban at your bank is letting your

customers and others know of your decision to prohibit weapons.

The OBA has developed these 5” x 7” window clings for banks to conspicuously

display at all entrances to the bank. They adhere to windows with static and are

designed to be placed on the inside of the window. The clings are printed in black

and red, and are offered in white and transparent. Banks with tinted windows

should order the white clings for maximum visibility.

“No Weapons” Window Clings

______ WHITE CLINGS @ $________ EA.*______ TRANSPARENT CLINGS @ $________ EA.*

TOTAL PAYMENT $________*Tax and shipping are included

PRICING OBA Member

Non-Member

White window cling (for tinted windows)

$4.95 ea. $9.95 ea.

Transparent window cling $4.95 ea. $9.95 ea.


More toward the banking side, Malone has been a valuable asset to many of the OBA schools. He began teaching courses at the OBA Basic Banking School in 1984. Since then, he has taught bank accounting courses during the OBA Consumer Lending, OBA Commercial Lending and OBA Intermediate Banking schools. “I love teaching the courses and it is a lot of fun to see the younger bankers,” Malone said. “It keeps me young.” As involved as Malone chooses to be with work and his favorite pastimes, he has every intention to be “com-pletely retired” within the next 10 years. Although he will eventually establish retirement, he has rental properties, his church and the barbershop quartet to fill his time. Whoever said retirement is for lounging around anyway? “I will always be singing until my voice gets old,” Malone said.

Malone From Page 24

Need to get your message out?

Put it where it will be noticed...the newspaper of the Oklahoma banking industry!

For more information, or to place an ad, contact: Jeremy Cowen (405) 424-5252 • [email protected].

THUMBPRINT SIGNATURE PROGRAM ORDER FORM

NAME ____________________________________________ BANK ________________________________________________ PHONE _______________________________________________

EMAIL ______________________________________________________________________________________________________ FAX _______________________________________________

STREET ADDRESS (NO P.O. BOXES) ______________________________________________________ CITY ____________________________________________ ZIP ______________________

PAY BY CREDIT CARD: For security reasons, please fax ONLY to the OBA’s dedicated registrations fax line: 405-604-9545. BILL TO: o VISA o MASTERCARD




All items feature the Thumbprint Signature logo printed in red and black. Decals, teller signs and statement stuffers are printed in both English and Spanish (Spanish can be deleted upon request).

Touch Pads — The pads have a shelf life of 18 months or at least 400 impressions. Banks should order enough for all tellers and drive-thru staff.

Teller Window Display — Banks should post these 6” x 3” “tent-style” display signs at all teller windows as an additional reminder that they participate in the program.

Statement Stuffers — These 3.5” x 7.5” brochures explain the mechanics of the program. Banks should send them as a public service announcements to all account holders and have plenty available for anyone who might have questions. Please order in increments of 500.

Decals — Banks should post decals at all entrances and drive-thrus to let people know they are participating in the program and to warn potential criminals that their crimes will not go undetected.

Qty. Bulk Quantities OBA Member Price Non-Member Price TOTALTOUCH PADS

1-100 pads $4.50 ea. $5.75 ea. $

101-250 pads $3.50 ea. $5.25 ea. $

More than 250 $3.00 ea. $4.75 ea. $

DECALS

$3.00 ea. $5.00 ea. $

TELLER WINDOW DISPLAY

$2.75 ea. $4.75 ea. $

STATEMENT STUFFERS

500-1500 copies $.14 ea. $.17 ea. $

2000-3000 copies $.13 ea. No Discount $

3500-4500 copies $.12 ea. No Discount $

Shipping $ 6.95

TOTAL $

Thumbprint Signature Program

This simple deterrent fights check fraud inexpensively, without inconveniencing your customers.

ACCOUNTING/AUDITING

BKD, LLPwww.bkd.com

Bankers Professional Service, Inc.www.thebankersbank.com

Cole & Reedwww.coleandreed.comCrowe Horwath, LLP

www.crowehorwath.comCurzon, Cumbey & Kunkel, PLLC

www.cckcpa.comEide Bailly, LLP

www.eidebailly.comFinley & Cook CPAs

www.finley-cook.comFortner, Bayens, Leukulich & Garrison, P.C.

www.fbl-cpa.comGrant Thornton CPAs

www.gt.comHoganTaylor LLP

www.hogantaylor.comKennedy and Coe, LLC

www.kcoe.comSteven Martin, CPA

www.stevemartincpa.usMcCormack and Associates, Inc.

www.mccorm.comTom C. Pharaoh, PLLC

405-946-2260Stanfield & Odell

www.stanfieldodell.comSartain, Fischbein & Co., CPAs

918-749-6601Stinnett & Associates, LLC

www.stinnett-associates.comThe Whitlock Co., LLP

417-881-0145Wilsey Meyer Eatmon Tate PLLC

www.wmetpllc.comWJG & Associates

405-843-1986Woodrum, Tate & Westemeir

www.wktc.netYennik, Inc.

www.yennik.com

COMPUTER SOFTWARE & HARDWARE

American Bank Systems, Inc.www.americanbanksystems.com

Asset Management Group of Okla. LLC918-299-3450

BankOnITwww.bankonitusa.com

Blu3 Technologieswww.blu3.cc

Cole Technology Groupwww.coletechgroup.comComputer Services, Inc.

www.csiweb.comCoNetrix

www.conetrix.comDCI

www.datacenterinc.comFiServ

www.fiserv.comHarland Financial Solutions

www.harlandfinancialsolutions.comIntegrated Bank Technology

www.ibtapps.comJack Henry and Associates Inc.

www.jackhenry.comNicola Banking Systemswww.nicolabanking.comSharp Bancsystems, Inc.

www.sharpbancsystems.com

CONSULTING

Ballard Consulting Serviceswww.compliance247.com

Bank Compensation Consultingwww.bcc-usa.com

Bank Financial Services Groupwww.bfsgroup.com

Barry Rudy & Associates LLCwww.brudyassoc.com

CrossFirst Advisors, LLC913-754-9700

DCS Planning, Inc.www.dcsplanning.com

Equias Alliance www.equiasallliance.com

Floco Data405-624-3257

Giant Capital LLCwww.giantpartners.biz

Kroll Factual Datawww.krollfactualdata.com

MMC Groupwww.mmcgrp.com

RDK and Associates, Inc.www.rdkonline.com

Risenhoover Consulting, Inc.www.risenhooverconsulting.com

Susan Orr Consulting, Ltd.www.orrandorrconsulting.com

ELECTRONIC FUNDS TRANSFER

Shazam Inc.www.shazam.net

EQUIPMENT/SYSTEM

Addtronics Business Systemswww.addtronics.netComCo Direct, Inc.

www.comcosystems.comCox Businessww2.cox.com

Federal Protectionwww.federalprotection.com

Financial Equipment Co.www.financialequipment.org

MPA Systemswww.mpasystems.com

Chubb, A UTC Fire & Security Companywww.chubbfs.com

Oklahoma Mailing Equipment918-664-2588

Standley Systemswww.standleys.com

TransFundwww.transfund.com

Verge Network Solutions, Inc.www.vergenetworks.com

EMPLOYMENT

Career Specialists, Inc.www.csibanking.com

FINANCIAL SERVICES

Ascensus www.ascensus.com

Ameritrustwww.ameritrusttulsa.com

Assured Lending Serviceswww.assuredls.com

The Baker Groupwww.gobaker.comThe Bankers Bank

www.thebankersbank.comBankers Credit Card Service

www.bccsonline.com

Cachet Financial Solutionswww.cachetfinancial.com

Citywide Mortgagewww.cwmpartners.com

Country Club Bank, N.A.www.countryclubbank.comD.A. Davidson & Company

www.davidsoncompanies.com Deluxe Financial Services

www.deluxe.comFHLBank Topeka

www.fhlbtopeka.comFirst Bankers’ Bank Securities

www.firstbankersbanc.comFirst National Bank

479-782-2041Frost Bank

www.frostbank.comFTN Financial Capital Markets

www.ftcm.comHeritage Trust Company

www.heritagetrust.comJ.Cagle Associates

www.jcagleassociates.comMetafund

www.metafund.orgMidwest Housing Equity

www.mheginc.comMorgan Keegan Co.

www.morgankeegan.comMortgage Investment Services Corp.

www.mischomeloans.comNational Bureau of Collections, Inc.

www.nbccollections.comPromontory Interfinancial

www.promnetwork.comQ2 Ebanking

www.q2ebanking.comSandler O’Neill & Partners, LP

www.sandleroneill.com SNL Financial

www.snl.comSt. Charles Capital, LLC

www.stcharlescapital.comStrunk & Associates, LP

www.strunklp.comTexas Capital Bank

www.texascapital.comTriad Financial Services, Inc.

www.triadfs.comThe Trust Company of Oklahoma

www.trustok.comUS Bank

www.usbank.com

INSURANCE

Bankers Insurance Group www.bankers-group.com

Comp Risk Management www.comp-risk.com

Courtesy Insurance Agencywww.ciaokc.com

First Oklahoma Life & Casualty Re-Ins.405-715-0800

Finsecure, LLCwww.finsecure.net

Insurica Insurance Management Network

www.insurica.comKansas Bankers Surety Co.

785-228-0000Life Assurance Company, Inc.

www.lacinc.comSummitt Consolidated Group

www.yoursummit.comTravelers Insurance

www.travelers.com/communitybanks

UMB Health Saving Account Program 866-860-4860

Walt Garner Associates, Inc.www.waltgarnerassociates.com

Wichita National Life Insurance Co.www.wnlic.com

LEGAL SERVICES

Conner & Winters, LLPwww.cwlaw.com

Crowe & Dunlevy www.crowedunlevy.com

Drummond Lawwww.drumlaw.com

Fenimore, Kay, Harrison & Ford, LLPwww.fkhpartners.com

Gable Gotwalswww.gablelaw.com

Hall, Estill, Hardwick, Gable, Golden & Nelsonwww.hallestill.comHunton & Williamswww.hunton.com

Lee, Goodwin, Lee, Lewis & Dobson405-330-0118

McAfee & Taft P.C.www.mcafeetaft.comPhillips Murrah, P.C.

www.phillipsmurrah.comStinson, Morrison, Hecker, LLP

www.stinson.com

MISCELLANEOUS

Absolute Data Shreddingwww.shredok.com

Cherokee National Economic Dev.918-456-0671

Citizens Potawatomi Community Dev. Corp.www.potawatomi.org

Equitas Realty Advisorswww.equitasrealty.com

EverFi, Inc. www.everfi.com.com

Indian Energy and Economic Developmentwww.bia.gov

Oklahoma State Banking Departmentwww.osbd.state.ok.us

Purple Wave Auctionswww.purplewave.com

REIwww.rei.com

Southwestern Stationery & Bank Supply, Inc.

www.southwesternok.comTEDC Creative Capital

www.tulsaedc.com Thumbprint Signature Program

405-424-5252 UVeritech

www.uveritech.com

MARKETING

Affinion Group www.affiniongroup.com

BancPartnerwww.bancpartner.com

Works24 www.works24.com

SUPPLIES

Budcowww.budcobank.com

Office Depot www.bsd.offficedepot.com

SoyPrint www.soyprint.net

Versateq, LLCwww.versateq.com

Bankers’ Resource Directory = endorsed vendor


Matching socks ...

Matching tunes ...

“It always fun embarrassing women for a moment with Singing Valentines. ...

“I will always be singing until my voice gets old.”

Richard MaloneQuail Creek Bank

For Oklahoma banker Richard Malone, life outside the office truly is a song.

n BANKER SPOTLIGHT

By Amber JohnsonCommunications Assistant

Imagine groups of men wearing suits and bowties acces-sorized with funny-looking hats singing a cappella. The first thought that likely crosses your mind: barbershop quartet. Barbershop quartets, in reality, are actually very similar to how they have been idealized in the media. The Music Man is just one of many popular musicals that demonstrate the catchy melodies and rhythmic harmony barbershop quartets portray and perfect. Richard Malone, as a part of Matching Socks Oklahoma City quartet, carries out the modern image of barbershop quartets. Malone, senior vice president of Quail Creek Bank, has been involved with bar-bershop quartets for about 26 years, char-tered a new church eight years ago and manages a few rental properties. It is easy to assume Malone is an expert with time management and he puts that to use in de-voting parts of his free time to his singing group. “You can be as involved or uninvolved as you want to be,” Malone said. Malone has been in the banking indus-try since 1974. After graduating from Southwestern Oklahoma State University in Weatherford, he received an opportunity to work at Washita Valley Bank as a teller. Within 10 years, Malone became vice president and then president at First State Bank in Willow, and executive vice president and then president at First National Bank in Mountain View. As Malone steadily moved up the banking industry career ladder, he worked mostly consumer and commercial lending positions, and in 1993, he began work-ing at his current location, Quail Creek Bank in Oklahoma City. Banking is Malone’s career, but the barbershop quartet is his

craft. In 1986, Malone began singing with his church and real-ized his aspiration after watching a performance of the OK Cho-rale. The OK Chorale is a men’s barbershop chorus composed of about 60 guys and is a chapter of the Southwest District of the Barbershop Harmony Society. Soon after watching the OK Chorale show, Malone began singing with them and later helped charter a new chorus, Music Central chorus, which is a prestigious a cappella men’s chorus.

The Music Central chorus places great emphasis on training and educating the members, and they perform a variety of musical styles including swing, jazz, folk songs, gospel, show tunes and bar-bershop. Malone and three other men from the chorus converged to establish a barbershop quartet: Matching Socks. Matching Socks is made up of four men – Del, Robert, Joe and Richard – and they perform different gigs around town varying from nursing homes to hospitals for organizational dinners, holiday parties and, most exciting, Singing Valentines. “It’s always fun embarrassing women for a moment with Singing Valentines,” Malone said.

Matching Socks perform a mix of 1950s and ’60s melodies, such as The Beatles. On occasion they will perform the Star Spangled Banner for sporting events, such as University of Oklahoma basketball games. The group holds practices two to three times a week. Malone aspires to work for the better of the community, and by doing so he has assisted in the charter of a church eight years ago. He and his wife are very active in Westside Christian Church, located in Oklahoma City and made up of about 80-100 members.

Sing-a-long — Quail Creek Bank’s Richard Malone (pictured third from left) moonlights as a member of a barbershop quartet.

See MALONE on Page 22

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