M E M O R A N D U M

 

 

 

TO:                 ALL CHIEF EXECUTIVE OFFICER

 

FROM:           FRANK WHITE, BANK COMMISSIONER

 

SUBJECT:   DIRECTOR TRAINING 2003

 

DATE:                        JANUARY 30, 2003

 

 

We have the following Director Training Seminars scheduled for the first six months of 2003:

 

February 25, 2003 – Arkansas Bankers Association            501-376-2741

and the Arkansas State Bank Department

            Springdale Holiday Inn Convention Center

            9:00 a.m. – 3:30 p.m.

 

March 5, 2003 – FDIC conducting program                800-771-1634

Community Bankers and the Arkansas State Bank

Department participating

North Little Rock Wyndham (Old NLR Hilton)

            8:30 a.m. – 4:00 p.m.

 

May 2, 2003 – FDIC conducting program                                501-376-2741

Arkansas Bankers Association and Arkansas State Bank

Department in connection with “Day with the Commissioner”

            Peabody Hotel, Little Rock

            8:30 a.m. – 3:30 p.m.

 

I have enclosed for your consideration items which the board needs to be informed of.  We have no set schedule, but do believe the self exam reports sent to your bank monthly would assist you in accomplishing these items.  I have also enclosed Report #3 – Peer Group Report and Report #6 Geographical Peer Groups from the self-exam program to give you an idea of how this can be a useful tool.

General information to present at regular Board of Director meetings; some issues should be reviewed monthly, some at least quarterly, and some at least annually.

·        Financial: balance sheet and income statement, performance ratios, budgets, peer comparisons, subsidiaries, significant capital expenditures, contingent liabilities, etc.

·         Loan Portfolio: past due and nonaccrual loans, concentrations of credits,

renegotiated troubled debt, lending limits, charge offs, etc.

·         Allowance for Loan and Lease Losses: adequacy of current balance, internal risk

ratings, etc.

·         Internal audit findings and management responses

·         Regulatory Reports of Examination, External Audits

·        ASBD Self Examination Report

·         Disaster recovery planning and backup test results

·         Investments

·          Economy: local, regional, statewide

·          Review and approval of written policies governing all activities: loan, investment, liquidity, etc.

·          Information Technology/Systems

·          Liquidity and Funding Strategies

·          New products, services, or marketing strategies

·        Losses/recoveries on sales, collections, or other dispositions of assets

·        Volume/composition of other real estate, other assets, and suspense accounts

·        Consumer Compliance: CRA, bank secrecy, consumer privacy and information

security, SARs, etc.

·           Insider Transactions: loans, contracts, etc.

·         Developments likely to impact the integrity, safety, or profitability of the institution (Reputation and Market Risk)

·         Insurance

·            Ensure adequate meeting minutes (with attachments if needed) are maintained

 

Peer Groups
#1             Less than - $            49.999.000
#2             $50,000,000 - $       84,999,000
#3             $85,000,000 - $ 159,999,000
#4             Over - $ 160,000,000

'Agri-Peer represents banks with agricultural related loans which comprise 25% or more of total loans