Pub. 4 2014 Issue 4

20 www.azbankers.org How Forward-Thinking Banks and Their Trade Associations Are Finding and Shaping Future Bank Leaders H E ’S ONLY 25 YEARS OLD, BUT THOMAS RICHARDS, ASSISTANT VICE-PRESIDENT AT OWINGSVIL- LE BANKING COMPANY, Owingsville, Ky., has already impacted regulatory policy. In late 2013, Richards testified before the House Committee on Financial Services, representing the $70 million-assets bank his great-great- grandfather helped found. Richards’ road to Washington, D.C., began when he discovered that Bath County, in the eastern part of the state, was not on the Consumer Financial Protection Bureau’s list of rural or underserved counties that would be exempt from aspects of the Qualified Residential Mortgage rule. Attempt- ing to correct this omission, Richards emailed a letter to the CFPB. The bureau responded that a staff attorney would contact him. It never happened. Richards, a participant in the Ken- tucky Bankers Association’s Emerging Leaders program, turned to the associa- tion for advice. KBA staff suggested contacting Congressman Andy Barr (R- Ky.) who was drafting the CFPB Rural Designation Petition and Correction Act (H.R. 2672). “The next thing I knew,” says Richards, “I was asked to testify before Congress about the importance of pass- ing an appeals process.” Richards was well-prepped by ABA staffers, but still, testifying for the first time is a bit daunting, and he was nervous. He describes the experience as “surreal.” It all paid off, however. On May 6, Congress approved H.R. 2672, leaving Richards with a sense of satisfaction. “You feel so helpless when Wash- ington passes legislation that is clearly flawed,” says Richards. “It felt good to make an impact.” S UCCESSION PLANNING PLUS The banking industry is working to identify and groom others like Rich- ards—young, smart, enthusiastic bankers committed to bettering the banking industry. But building a deep bench takes time and effort, including actively recruiting new bankers and training them. John Ikard, president and CEO of FirstBank Holding Company, Lakewood, Colo., likens the process to planting trees. With many senior bank executives having reached the age of 55 or older, the need for “reforestation” is a front- burner concern, closely aligned to management succession. The industry, as a whole, needs a bench of committed advocates as much as individual banks need backups to current leadership. At the bank level, succession plan- ning includes creating a culture in which employees want to excel, and then providing them with the opportunities to learn, according to Frank Sorrentino, chairman and CEO of ConnectOne Bank, Englewood Cliffs, N.J. Not only does fostering this culture create a tal- ent bench, but it also drives business to the bank. “A culture that supports employees reaching for higher goals will drive more business into the bank,” explains Sorrentino. “A cycle of success lifts everyone in the organization.” For Norman Beatty, chairman, presi- dent, and CEO of another New Jersey community bank, First Hope Bank, succession planning requires looking beyond the executive vice-president level and focusing on developing talent from within the ranks of lower-level employ- ees as well. In football terms, Beatty By LISA VALENTINE