THE

KENTUCKY
BANKER November 2010

Annual Convention
Wrap-up
p. 12-13
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 Board
CONTENTS
Officers
Pedro Bryant Timothy Barnes- Group 7
KBA Chairman Hometown Bank of Corbin, Inc.
Louisville Community Development Bank Corbin
Louisville Robert Zapp- Group 8
Tony Whitaker The Bank of Kentucky, Inc.
KBA Vice Chair Crestview Hills

Cover
First Federal Savings and Loan Association Hugh Mitchell- Group 9
Hazard 1st Trust Bank, Inc.
David Heintzman Hazard
KBA Treasurer Colors
Stock Yards Bank and Trust Company THRIFT REPRESENTATIVES
Louisville William H. Johnson
Garland Certain Central Kentucky Federal Savings Bank Photo shot by Elizabeth
KBA Past Chairman Danville
United Community Bank of West Kentucky William James Jones for the 2010
Morganfield
Ballard W. Cassady, Jr.
First Federal Bank
Lexington
Scenes of Kentucky Photo
KBA President & CEO Michael Lonnemann Contest
Home Savings Bank, FSB
Group Representatives Ludlow
R. Bruce Kimbell- Group 1
First Community Bank BANK SIZE REPRESENTATIVES
Clinton Luther Deaton
Chris Reid- Group2 Central Bank
Independence Bank of KY Lexington
Owensboro David Hale,
Margaret Ann Wells- Group 3
Commonwealth Bank & Trust Company
The First Capital Bank of Kentucky
Louisville COLUMNS
Louisville
Owen Lambert- Group 4 EDUCATION ALLIANCE REPRESENTATIVE
Straight Talk.................................7
South Central Bank Lanie W. Gardner 7
Glasgow First National Bank of Muhlenberg County
Neil Bryan- Group 5
Farmers Bank of Milton
Central City
Departments
Milton PEC REPRESENTATIVE
George Spragens- Group 6 Fred Brashear, II Products and Services................. 10
The Farmers National Bank of Lebanon
Lebanon
Hyden Citizens Bank Education...................................16
Hyden
Making News..........................18-19
On the Move.............................. 21
STAFF Upcoming Events........................ 22
12
Management Team Tammy J. Nichols

Features
Ballard W. Cassady, Jr. Convention & Member Services Coordinator

President & CEO and Accounting Assistant

Debra K. Stamper Yvonne Savage

General Counsel & Executive Vice President PAC Services Coordinator

Annual Convention Wrap-Up....12-15
Paula B. Cravens Audrey H. Whitaker

Director of Education Alliance Insurance Services/Education Coordinator

Selina O. Parrish Steve Whitlow

Director of Membership Information Systems Engineer

Matthew E. Vance

Chief Financial Officer CONSULTANTS

John P. Cooper 22
STAFF Governmental Affairs

Miriam Cole

Executive Assistant KENBANC INSURANCE SERVICES, INC

Kyle Elmore Chuck Maggard

Marketing/Communications Coordinator CEO

Jamie Hampton Bill Busby

Education Services Coordinator General Agent

Natalie Kaelin Mark Wooley

Assistant General Counsel General Agent

Michelle Madison Randy Proffitt

Database/Web Operations Coordinator Special Agent

Lanie Minton Audrey Whitaker

Administrative Assistant Assistant

November 2010 | 3
 Chairman’s Corner
The PAC Needs Us All
The Kentucky Bankers Association’s Politi-
cal Action Committee needs the support
of bankers from the entire Common-
wealth of Kentucky. There are 210 banks
that are members of the KBA and we
need to have representation in the form
of contributions from officers, directors
and employees from all 210 banks. This is
the time when we need to have a partici-
pation rate of 100%.
The financial crisis of 2008 and the ensu-
ing credit crisis has lead to the most
sweeping regulatory reform in my 27 year
banking career. Very few industries if any,
garner the level of media attention and
public scrutiny as banking, especially in re-
cent years. Bankers must remain engaged
in the process of shaping regulation and
policy as it impacts our industry. As we
November 2010 | 4
are fast approaching the end of 2010 we
must resolve to make a commitment to
provide our PAC with the resources it
needs to advocate on our behalf.
Our industry is constantly going through
some sort of change and normally runs
through Frankfort and Washington. The
KBA PAC is a non-partisan political action
committee organized by members of the
Kentucky Bankers Association to benefit
the entire banking industry through politi-
cal contributions to candidates for federal
and state elected positions. While banks
are not permitted to make contributions
to the PAC, employees, officers and direc-
tors are encouraged to support the PAC.
The KBA PAC allows us to support candi-
dates for the Kentucky Legislature as well
as the United States Senate and House of
Representatives whose views and posi-
tions on banking issues are compatible
with the interest of our industry. We
need the support of bankers representing
all 210 banks. Can you imagine the mes-
sage it would send to candidates for office
and others if we could say that our PAC
raised $300,000 or $500,000?
We bear a great responsibility as bankers
to do all that we can for the interests of
our stakeholders. We know our custom-
ers because they are our neighbors and
friends. Support for our PAC provides
us with the opportunity to influence the
future of our industry and banking in
Kentucky.
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phone: 888.969.1399
fax: 859.986.5836
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 Straight Talk
Dodd-Frank Testimony in Frankfort
At the specific request of the Kentucky
Interim Joint Banking and Insurance
committees, Debra and I testified at
their meeting held on October 26, 2010,
regarding the probable consequences
of the Dodd-Frank Act on Kentucky
community banking. This provided
us with a ideal opportunity to speak
on your behalf to key legislators in
Frankfort, much like September’s
meeting with Senator Mitch McConnell.
These opportunities are very important
and we have to be sure we make the most
of them.
When writing the testimony it was
difficult to hold back my anger and
frustration. I am, we all are, angry
at the outcome of this bill, but we
remember that occasions such as this
testimony create the sparks that ignite
the fires of necessary modification and
help to shape how the new law goes into
effect.
With the amount of new faces set to
hit Washington in January (thanks to
a historic election night in terms of
turnover), it is more important than
ever to make sure that our voice is
heard in Congress and in Frankfort. To
help ensure that we are all on the same
page, I want to reiterate what I told the
legislators in Frankfort during the KBA
testimony. These are the same messages
that we should all look to echo to our
local legislators and our congressmen
and women and senators alike over the
next several months.
Regulation is Necessary, but the Passed
Regulations Missed Their Mark
I think we all understand that regulation
was necessary following the economic
“perfect storm” that struck our country
in the fall of 2008. Our problem with
the passed legislation is that it failed to
indentify and address the real causes of
our economic collapse. Rather, it has
punished community banks like those in
Kentucky who had no part in creating
the mess to begin with. Kentucky
bankers are not opposed to logical and
fair regulations; we just want the new
regulations to address the real problems
that plague the financial industry, i.e.
the shadow lending industry and firms
gambling with depositor’s money- none
of which are the actions or motives of
Kentucky banks.
Kentucky Banks are/were Not Part of the
Problem
We must also make it clear that
Kentucky banks were not part of the
problem, but we are committed to being
part of the solution. All Kentucky
banks are considered community banks,
as defined in Washington, and our banks
are integral catalysts for community
growth and are time-tested foundations
for community stability. The average
Kentucky Banker Association member
bank has been in existence for 80 years,
over half have been around for more
than 100 years, supporting and growing
their communities. Legislators must
understand how important each and
every one of our member banks is to
their respective community’s prosperity.
The Unintended Consequences Threaten
Bank Stability
The Dodd-Frank Act has many potential
unintended consequences for traditional
banks like those in Kentucky. The
most direct negative impacts will
derive from the increased compliance
and regulatory burdens and the costs
associated. The worst thing about all
of the bill’s unintended consequences
is that rarely do we know their true
impact until it’s too late. Studies have
concluded that 5,000 new pages of
regulations will be promulgated as a
result of Dodd-Frank, in addition to
the already 50 new regulations that
were promulgated during the two years
prior to FinReg. The cost alone of
complying with these new regulations
threatens the stability and well-being
of Kentucky banks. It is ironic that
the new regulations were intended to
make sure that banks were more stable,
yet they are directly compromising the
stability of community banks across
the Commonwealth and country. This
is a point we must make sure to echo to
our politicians in both Frankfort and
Washington- Kentucky banks cannot
afford to pay for others’ sins.
continued on next page...
 The $10 Billion Question
We must also clarify the confusion
regarding the $10 billion exemption.
No matter a bank’s size, they will be
required to comply with new regulation
set by the CFPB and this is not
commonly understood in Washington or
Frankfort. The new law clearly states
that there are no exceptions for smaller
banks; rather, all banks will be subject to
the CFPB’s ruling power if they deem it
necessary. The CFPB’s reach and power
is unchecked and is dangerous to the free
market system.
Regulating Agencies Tug -o -War
There is a power struggle brewing
between the banking regulatory bodies
and it will threaten the stability of the
banking industry in both Kentucky and
nationally. For example, the OCC may
tell a bank that they have to operate
one way and the CFPB can direct
something completely different. It is
like a quarterback being given one play
from his offensive coordinator, another
play by his head coach and a completely
different play call by his quarterbacks
coach. How does the quarterback know
which play to call in the huddle? That is
the confusion that our bankers will come
to know as the CFPB comes to power
and circumvents banks established
regulatory body. Our banks will be
caught in a government agency power
struggle with Kentucky banks standing
to lose the most. This power struggle
will also threaten the stability of the
whole industry and thus the growth
of our nation. The last thing we need
during a time like now is to hinder
economic growth and stability due to a
governmental budget dog fight.
While the above summary is not a
totality of testimony topics covered
during the KBA testimony to the
Interim Joint Banking and Insurance
committees, it does help reiterate many
of the points we must continue to make
over the next several months. As you
can imagine, we covered a lot of ground
regarding the Dodd-Frank act and
informed the Committee of just how
dangerous the law is to the stability
and future of Kentucky banking. The
testimony was well received and we were
honored to be asked to testify.
I also want to make sure that every
banker in Kentucky understands how
great of a job both Senator Tom Buford
and Congressman Jeff Greer are doing
at chairing both the Senate and House
Banking and Insurance committees
respectively. It is no easy assignment
and both men handle the responsibility
with intelligence and understanding.
The Kentucky Banking and Insurance
committees have always acted fairly
in matters involving Kentucky banks
and I am confident that under the
leadership of Senator Tom Buford and
Representative Jeff Greer this will
continue to be the case.
With that said, it is imperative for each
of you to develop a relationship with
your district’s legislators so that our
collective voice can be echoed across
the Kentucky Chamber. Opportunities
for our voice to be solicited are rare, so
it is us up to each and every Kentucky
banker to make our collective voice
heard from Paducah to Pikeville-
Kentucky’s growth and development
depend on it.

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November 2010 | 8
Exiting Chairman’s Article
Since I recently completed my term
as Chairman of the KBA Board of
Directors, I wanted to make some final
comments about the year. Needless
to say 2009-2010 was a “unique” year
for the banking industry. Perhaps the
most general troubling fact was/is the
uncertainty of the ending effect(s) of
what the new regulations will have
on each of our institutions. I can
honestly say that the year was a learning
experience for me. I sincerely enjoyed
talking with many Kentucky bankers
whether by phone, e-mail, or in person.
Naturally, we do not all agree on the
best solution(s) to these most difficult
situations. One thing we mostly agree
upon is that community banking is
receiving unwarranted bad publicity and
“We’re mad as hell, and we’re not taking
it anymore!”
The large majority (almost 100%)
of Kentucky bankers supported the
association’s efforts and many were and
still are willing to join in the battle. The
support of Ballard’s leadership continues
Garland Certain to be extremely strong. I can and do
affirm that he constantly thinks, works,
and acts on behalf of the members of
President & CEO the Kentucky Bankers Association. He
has built a strong (perhaps the strongest
United Community Bank of in the nation) state banking organization
which I believe will eventually lead us to
West Kentucky an acceptable level of “living with” these
regulations.
Morganfield
I cannot stress enough the fact that
all Kentucky bankers need to stay
united and respond to Ballard’s and
Debra’s requests to make phone
KBA Past Chairman
calls, e-mails, or write letters when
needed. Also, please do not forget your
contributions to KBPAC. This avenue
of financial support to “friendly to
bankers” candidates or elected officials
has never been more important. I’ve
observed and listened to several people
in Frankfort and Washington who are
always complimentary of John Cooper’s
ability to deliver the Kentucky bankers’
messages and positions on each issue! He
has their ears! Another important lesson
I’ve learned is to keep my directors,
management, and staff abreast of
what’s happening and how it will affect
our bank.
This year has been most rewarding to
me, both personally and professionally.
My wife Kat and I have gotten to meet
many wonderful people and developed
several new friendships which, hopefully
will last for years to come. Similarly,
I’ve met many successful, knowledgeable
bankers who made deep impressions
upon me which will help me run a better
bank. Kentucky’s great performance as
an industry (20 years without a failure)
falls back on these individuals and their
predecessors. I have mixed feelings
about the termination of serving as
your chairman as I’ve been honored;
however, I strongly believe that it’s time
for the next person to enjoy the position.
Pedro Bryant will be a strong leader of
our association and I look forward to
working with him and the entire KBA
board.
In closing, may I share the final
paragraph of “A Prayer for Bad Times”
by Richard Cardinal Cushing in which
he paralleled a sporting event to the
game of life. “And when I finish the final
inning, I ask for no laurels. All I want
is to believe in my heart that I played as
well as I could and that I didn’t let you
down.”
Garland Certain
November 2010 | 9
 PRODUCTS AND SERVICES
America 2010: The Latest Demographic Trends
Each year Bancography updates its
software tools and analytic databases
with current year demographics in order
to most accurately describe the markets
our clients serve. And each year, the
demographic update reveals interesting
trends about the American landscape.
Several notable trends emerged in 2010.
Household Growth
• Florida is no longer a growth market.
As recently as 2007, six of the 25 fastest
growing large counties (at least 50,000
households) in the U.S. were in Florida;
in 2010 none. America’s onetime growth
capital has been supplanted due to
reduced immigration, deferred retirement
migration (a consequence of eroded
retirement savings accounts) and an
uncertain real estate market. Taking its
place, the Mountain states of Colorado,
Utah and Wyoming each show high-
growth forecasts throughout, as do the
coastal counties of the Carolinas and
Georgia. Among metropolitan areas,
Phoenix remains a growth magnet but
former hotspots such as Riverside – San
Bernardino and Las Vegas have cooled.
• Despite Florida’s slowdown, growth
expectations remain high in many major
Southeast and Southwest metros. Raleigh
– Durham, Atlanta and Nashville each
rank among the nation’s fastest-growing
markets, as do the Texas quartet of
Dallas, Houston, Austin and San Antonio.
In other regions, the Washington DC
suburbs continue to show high growth
prospects, hosting four of the15 fastest
growing large counties; as do the Seattle
and Portland metros in the Northwest.
The overall U.S. household base is
projected to grow by 4.8% over the next
five years, well below the 7% rate that
held prior to the economic downturn of
2008.
November 2010 | 10
Income
• Income remains sharply concentrated
along the Northeast corridor, with
nearly every county from Washington to
Boston ranking among the top 10% of
all U.S. counties in terms of affluence. In
other parts of the nation, top ranking
income levels are found in the San
Francisco Bay Area, Portland, Seattle and
Denver; in Houston and Dallas; and in
the major metros of the Midwest such
as Chicago and Minneapolis. Affluence
is highly correlated with urbanicity, with
most of the lowest-income areas spread
across rural areas of the deep South,
the Appalachian states and the sparsely
populated West Texas – New Mexico
region.
Age
• America’s heartland continues to age,
with the oldest regions spanning the
midsection of the country through the
Dakotas, Nebraska, Kansas, Oklahoma
and central Texas. The coal mining
communities of western Pennsylvania and
West Virginia also show older household
bases; as do traditional retirement
hubs such as Florida, the Blue Ridge
Mountains and the lakefront towns of
northern Michigan. In contrast, western
states such as California, Washington,
Colorado and Wyoming attract younger
household bases, a trait shared with major
employment centers such as Atlanta,
Chicago, Houston and the Northeast
corridor cities.
Minority Population
• The traditional U.S. melting pot appears
less evident than in prior years, as
minority populations remain concentrated
in specific regions of the country rather
than spread across the nation. A broad
corridor from southern California to
Texas contains the nation’s largest
Hispanic-American concentrations, while
a corridor from the Mississippi Delta
through central Alabama, rural Georgia
and South Carolina contains the nation’s
largest African-American concentrations.
Three-hundred and seventy of the 3,141
U.S. counties are now “majority minority,”
i.e., non-white residents (including census
reporting categories Hispanic, Black,
Asian, Aleut, Native American and Pacific
Islander) represent more than 50% of
residents. This compares to 350 counties
in 2007.
For detailed maps and tables showing
the fastest growing counties, most
affluent counties and other interesting
2010 demographic statistics, visit www.
bancography.com/bancology.html. And
if you need detailed information on your
institution’s markets, contact us at info@
bancography.com or 205-252-6671
For More Information on this article
and other KBA endorsed products and
services, please contact:
Selina Parrish
502.582.2453
sparrish@kybanks.com
 119th Annual Convention Wrap-up
By: Kyle Elmore

Bankers, guests and vendors joined

together at the French Lick Resort from
September 18-20 to take part in the
KBA’s 119th Annual Convention.

The convention was packed full

of dynamic speakers, informative
presentations and plenty of networking
opportunities. Highlights included having
both Ted Koppel and Stuart Varney speak
on the same day, within 8 hours of one
another. It is unique to have one speaker
as great as either Mr.Varney or Mr. Koppel,
but two in the same day is unbelievable.
The convention also saw a new chairman,
Pedro Bryant, take the reins and attendees
witnessed the introduction of the new
KBA board members. WHO’S HELPING
The convention had many phenomenal YOU THROUGH IT?
speakers in addition to Mr. Koppel and On top of a slow economy, banks now face a maze of new regulations and
Mr.Varney. Mitch Barnhart, University
requirements. The Financial Institutions Services Team at Mountjoy Chilton
of Kentucky Athletic Director, made the
opening remarks for the prayer breakfast. Medley LLP specializes in helping you find your way through it all so you
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quit throwing pity parties and a wide help your institution.
range of speakers covered many hot
topic issues inside the banking industry
today. The convention again had a
member roundtable segment that allowed
attendees to interact with their peers
regarding the state of the industry and
give feedback to the KBA directly.

The convention was once again a huge 888.587.1719 | www.mcmcpa.com

success. The KBA cannot wait to see
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November 2010 | 12
GOLF

Opening Reception

Prayer Breakfast

Exhibit Hall
 Thank You 2010 Annual Convention Sponsors

Affinion Group BKD, LLP Investors Title Insurance Company

Alexander, Thompson, Arnold, BSC, Inc. Morgan & Pottinger, PSC
CPAs Computer Services, Inc. Morgan Keegan & Company, Inc.
Anthem Blue Cross Blue Shield Crowe Horwath LLP Mountjoy Chilton Medley, LLP
Kentucky Deluxe Financial Services National Processing Company
Arison Insurance Services, Inc. Dynamic Card Solutions, LLC Norman Backues & Associates, Inc.
ATM Solutions, Inc. Federal Home Loan Bank of PNC Bank, N.A.
The Baker Group Cincinnati Professional Bank Services, Inc.
Baldwin CPAs, PLLC Fidelity National Information PULSE
KY Banker
BancInsure, Inc.
TIB ad- Services Ross, Sinclaire & Associates
NOV.Bancography
2010 Financial Data Technology Software Information Systems, Inc.
7.5 xBank
5 On Hold Corporation Southwest Financial Services, Ltd.
The Bankers’ Bank of Kentucky, Frost Brown Todd LLC Stifel, Nicolaus & Company, Inc.
Inc. FTN Financial TransUnion LLC
BBVA Compass Housing Equity Funds of Kentucky Travelers

November 2010 | 14
 Mark Your Calendar

Sandestin’s naturescape is a sacred trust to be savored. With miles of biking and hiking paths amid a vast range of plantings and vegetation,
the ecotourism at Bayside will leave you spellbound. Sandestin Golf and Beach resort features the largest span of bayside property in
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120th Annual Convention

September 24-27, 2011
Sandestin Golf and Beach Resort
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November 2010 | 15
 Education
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Fraud Protection – Debit Card and
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 Making News
Republic Bank Donates Kentucky State Fair
Grand Champion Ham to West End School
Republic Bank who had the co-winning high
bid of $800,000 for the 2010 Kentucky State
Fair’s Grand Champion Ham donated the ham
to the West End School.
In turn, students from the West End School
along with community volunteers from Manna
House served the ham sandwiches to West
End residents on Tuesday, October 19, as
part of the weekly community food outreach
program.
Starting in 2005, the West End School is now
a year-round free boarding school serving the
academic and residential needs of 13 middle
school boys, and is located at the former
Carter Elementary School at 36th and Virginia
in Louisville’s West End. The West End School
was founded to address the need of alternative
forms of education particularly for the increas-
November 2010 | 18
ing number of children in our community who
are experiencing issues of social dislocation
or homelessness. Middle school age students
were chosen because they are believed to be
at the “tipping point” both academically and
socially, and felt that a three year middle school
program would provide sufficient time to
remediate academic deficiencies.
Manna House, located at the West End School,
is supported by the New Zion Baptist Church’s
Mission Council and other members of the
church and serves 30 – 40 members of the
community every Tuesday. New Zion Baptist
Church is located at 1501 South 34th Street.
“As Kentucky’s largest community bank, Re-
public Bank is committed to the communities
in which we work and live. We are, therefore,
extremely pleased to present this ham to
the West End School,”,stated Bernard Trager,
founder of Republic Bank.
“We are proud to partner with Republic Bank,
a community-minded company. The actions
of their founder, Bernard Trager, are those of
a true community leader, and his donation
indicates his desire to impact the lives of those
in need,” stated Robert Blair, founder and
administrator of the West End School.
“As a community volunteer, I’ve seen first-hand
the work that the West End School has done
with these young men. I’m proud that Repub-
lic Bank has donated the ham to the West End
School and that, in turn, the school is donat-
ing the ham to their local community,” stated
Amy Trager, volunteer and wife of Steve Trager,
Republic Bank’s Chairman and CEO.
First Federal Sponsors Senior Crimestoppers
First Federal Bank and the Bluegrass Care “We do view this partnership as a way The Senior Housing Crime Prevention
and Rehabilitation Center announced for First Federal Bank to give back to Foundation (SHCPF) presented the Char-
today that they have partnered to bring the community in a very important way,” ter to Bluegrass Care and Rehabilitation
the Senior Housing Crime Prevention stated William W. James, bank president. Center, and to First Federal Bank, repre-
Program to the residents of the Center. “Our commitment in this program will senting participation of the Center and
The Senior Crimestoppers Program pro- help further strengthen the fight against the Bank in the Program.
vides on-going crime prevention programs crime perpetrated on the elderly.”
designed to deter incidents of crime in
long-term care and senior housing facili-
ties. The Program will provide the Center
a proven system for further preventing
crime against its patients and staff includ-
ing ongoing education for residents and
their families and for staff members, lock
boxes for the residents’ personal property
and medication, access to an anonymous
tip-reporting hotline, and cash rewards
for information that could help the facility
solve or prevent a crime.

“First Federal Bank’s five year commit-

ment to this program demonstrates their
belief in giving back to the community that
they serve,” said George Clinard, SHCPF
Vice President.

Helping Kentucky bankers

invest wisely for over 20 years!

Municipals • Agencies • BABS • MBS

Bill Barker
800.292.4563
bbarker@rsanet.com
Louisville ~ Lexington ~ Cincinnati
-KBA Associate Member-

November 2010 | 19
 Community
Community Ventures
Ventures Corporation’s
Corporation’s
SBA 504 Loan Program
EXCITING NEW FEDERAL LEGISLATION UPDATES
Recent legislation passed by Congress and signed into law by the President adds some exciting enhancements to the
SBA 504 Loan Program.
• Larger Size Businesses Now Qualify – Businesses with net worth of $15M and less and net income
(after federal income taxes) that averages no more than $5M over the last two years are now eligible for 504 loan
financing. Previously the thresholds were $8.5M and $3M respectively.
• Refinancing of Existing Debt – Community Ventures Corporation, a Certified Development Company, can
partner with banks to finance maturing business debt without a business expansion project being associated with
the refinancing. This new refinance rule is in effect for two years and the debt being refinanced must have been
for a 504 Loan Program qualifying purpose. (Example: purchase of the business’s building)
• Fee Relief – Effective October 1, 2010, and through the earlier of December 31, 2010 or when the $505
million (fee relief ) allocation is exhausted, certain fees normally paid by 504 loan borrowers and participating
bank partners, are waived.
• Higher Lending Limits – Community Ventures Corporation can now lend more money to business expansion
and refinancing projects. Community Ventures Corporation’s loan limit (up to 40% of the total project costs) is
now $5M. For small manufacturing firms and projects that meet certain energy consumption requirements,
Community Ventures Corporation’s lending limit is $5.5M. Community Ventures Corporation can participate
in projects as large as $12.5M and in some cases $13.75M on a day-to-day basis.
• Benefits of 504 Loans to Banks – When banks partner with Community Ventures Corporation to structure
business expansion and refinance deals using the SBA 504 loan, they continue to realize the following benefits:
 Banks have a 1st lien position on the collateral; Community Ventures Corporation and SBA
will have a 2nd lien position.
 Bank’s permanent financing facility will be at 50% Loan-to-Value.
 With the exception of term, Banks can price and structure their 1st lien loan according to their
own underwriting guidelines.
 Banks maintain the business borrower’s deposit relationship (Community Ventures Corporation
is not a depository institution.)
 Bank has no SBA “red tape” to deal with. Community Ventures Corporation handles that exclusively.
• Benefits of 504 Loans to Borrowers – When borrowers partner with Community Ventures Corporation to
structure business expansion and refinance deals using the SBA 504 loan, they continue to realize the following benefits:
 Low capital injection requirements – Typically it’s 10%, and never higher than 20%
 Long-term financing – 20 year term on real estate projects; 10 year term on equipment
 Low fixed interest rate – Current 20-year fixed interest rate is 4.5%!!

Call your local Community Ventures Corporation office today for more information!!
Lexington - 859-231-0054 (Headquarters)
1450 N Broadway; Lexington, KY 40505
Bowling Green - 270-904-0323
923 College Street; Bowling Green, KY 42101
Campbellsville - 270-849-2323
107 W Broadway; Campbellsville, KY 42718
Frankfort - 502-696-9444
www.cvcky.org 975 Riverbend Rd; Frankfort, KY 40601
Henderson - 270-826-7196
1990 Barrett Ct; Henderson, KY 42419
Louisville - 502-566-6076
811 S 2nd St; Louisville, KY 40203
Paris - 859-340-4028
509 High St; Paris, KY 40361
 ON THE MOVE

Susan Forsythe Ryan Atkins Kevin Welsh

Kentucky Bank adds two new Mortgage Lenders. Kevin Welsh has been named to the Kentucky Bank Board of Directors for
Clark County, Welsh has has over 23 years of manufacturing experience in Clark
Susan Forsythe has joined Kentucky Bank’s Lending Department, bringing twenty- County.
five years of mortgage lending experience.

Ryan Atkins has also joined Kentucky Bank’s Lending Department. He brings ten
years of experience in commercial, residential, and construction lending.

The Accounting
Experience You Need
Certified Public Accountants
Whether you are a
community bank with fifty Our Offices Serving
branches or two, Alexander Financial Institutions:
Thompson Arnold has the Murray, Kentucky
Phone: 270.753.2424
experience, quality and Rick Melton, CPA, PFS
services your financial
Milan, Tennessee
institution is seeking. Phone: 731.686.8371
With our wide range of Jack Matthis, CPA, CBA
programs and services, our Dyersburg, Tennessee
team’s industry experience, Phone: 731.285.7900
Steve Carmichael, CPA
& our state-of-the-art tools, Glendora Greenway, CPA
we provide a wide-range of Kevin Howell, CPA
premier services . Plus, you Union City, Tennessee
get the personal attention you deserve! Phone: 731.885.3661
Judy Rainey, CPA

www.atacpa.net
Our Other Offices:
Fulton, Henderson, Jackson, Martin,
McKenzie, Paris & Trenton.

November 2010 | 21
 UPCOMING KBA EVENTS
Internal Audit Under Today’s Risk Management Workshop: Two-day Program
November 18 & 19, 2010, 9 am – 4 pm, $425 per person
Holiday Inn Louisville Airport South, I-65 at Fern Valley Road (Exit 128),
6551 Paramount Park Drive, Louisville, Kentucky
KENTUCKY BANKERS ASSOCIATION
SEPTEMBER 2010
FDICIA, SOX and today’s Regulatory Reform continue to reshape the role of internal audit in the current community bank risk
management and oversight. This program is designed to provide an overview of effectively addressing today’s demand of the

We a l t h Tr a n s f e r
internal audit function including business performance, risk identification, assurance and compliance. The following will be
addressed over the two day program:
• Regulatory Reform
• Regulatory Examination / Enforcement Actions
An Innovative New Opportunity for Fee Income
• Risk Assessment (Audit, Compliance, Credit, ACH, Information Systems)
• Control Matrix Development (Control Objectives and Related Supporting Procedures)
• Efficient and Effective Internal Audits (Design, Procedures, Reporting)
Thursday November 18, 2010 Exclusive Invitation for our Members only
• Effective Communications (Practice Aids, Reports, Minutes)
11:00
• Hot AM
Button until
Issues 2:00
(Credit PM
Administration/ALLL, Interest Rate Risk/Liquidity Review, by:
Sponsored Information Systems, Electronic Bank-
ing, Fraudulent Activities)
KENBANC

D
• Best Practices
Griffin Gate Marriott Resort Insurance Services, Inc.
Lexington,
Who Should AttendKY 40511
This program will prove to be a valuable experience for those bank personnel associated with internal audit and risk management
iscover new ways to:
responsibilities. In addition, certain Audit Committee and Risk Management Committee members will benefit from the program.
LOCATION:
Speakers GrifÞn Gate Marriott Resort Help
Henry Hawkins, CPA (Financial Institutions your
Services Group customers efÞciently
Director and Partner) and Rick Taylor, transition
CISA (Financial Institutions
1800 Newtown Pike
Services Group Principal) of Mountjoy Chilton Medley LLP (MCM) will lead a team of MCM industry seasoned professionals in
speaking Lexington,
at the Internal Auditing program.
KY 40511
wealth and provide for Long Ter m Care.

Henry Hawkins has over 26 years of experience in public accounting, including managing and supervising the audit, tax and
consultingDATE:
includes18,
Thursday, November providing
2010
Increase Fee Income with
services for financial institutions to working closely with owners and managers of small to medium-sized businesses.
Henry’s experience consulting in areas such as improving financial performance, establishing risk manage-
ment oversight, reviewing operational procedures and assisting in regulatory matters.
TIME: Innovative Insurance Products
Rick Taylor has more than 30 years of information systems experience with regional accounting firms, national corporations
(including11:00 AM until 2:00 PM
AEGON USA and YUM! Brands, Inc.), and
Wealth Transfer
❖ financial institutions (PNC Bank, Great Single Premium
❖ Financial Bank, and Star Bank. Rick
oversees MCM’s Financial Institution’s Services Group’s internal audit practice and is an integral part in the performance of
Fixed Annuities
information systems, electronic banking, ACH and❖related internal audits. ❖ SimpliÞed Issue
Internal Audit Workshop Registration Form - - - - - - - - Use one form per person, copy as needed. - - - - - - - - - - -
Yes, register me for the November 18 & 19, 2010, Long Term Care
❖ Internal Audit Workshop in Louisville!
PDF1008
Online registration is available at www.kybanks.com (go to Education, then Seminars).
Complimentary Lunch will be Served
RSVP Today as Seating is Limited
Name __________________________________________________________________ Title __________________________________________________________________
4 Easy Ways to Register Below
Bank Name _____________________________________________________________________________________________________________________________________

CLICK HERE TO FILL IN THIS FORM AND EMAIL TO FILL IN THIS

Address __________________________________________________________________________ City, FORM AND
State and PRINT OUT FORM AND
Zip ____________________________________________
REGISTER ONLINE AWHITAKER@KYBANKS.COM FAX IT TO (502)584-6390 MAIL TO ADDRESS BELOW
Telephone ___________________________________________________ Email ___________________________________________________________________________

CHECK ONE:N‰Check
OT FOR CONSUMER USE
enclosed_______________________________________ ‰Send invoice

‰Pay with Credit Card type and # _________________________________________________________________________ Exp date ______ Three digit sec code ______

Name___________________________________Bank__________________________
Mail or Fax (502-584-6390)
Address________________________________________________________________
Completed form to Kentucky Bankers Association, 600 West Main Street, Suite 400, Louisville, KY 40202.
City________________________________State_______________Zip_____________
November 2010 | 22
Email________________________________Phone_______________Cell__________
 Superior M. Deane Stewart
Shareholder

legal service Deane focuses

his practice on

from start finance and lending

transactions and

to finish.
commercial real
estate matters. He
represents banks and
other institutional
Morgan & Pottinger has lenders in senior debt financing, floor
plan and dealer finance and commercial
represented financial real estate loans. He has significant
experience in the acquisition, disposition
institutions in Kentucky and and leasing of real property.

Indiana with tailored, cost-

effective solutions since 1974.
James I. Murray
Shareholder

Jim is a member of
the firm’s Executive
Committee and a
past president of
the Fayette County
Bar Association.
A substantial
LouiSviLLe LeXiNGToN amount of his
601 West Main Street 133 West Short Street practice involves representing lenders
(502) 589-2780 (859) 253-1900 in commercial real estate loan and
construction loan documentation. Jim
also represents commercial landlords
www.morganandpottinger.com
and documents and closes residential
real estate transactions.
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