Independent Banker - December 2018 - 23

Next: Recovering from a leadership setback
Heartland Bank's formal program includes an offsite,
two-day orientation where McComb and other staff
members share their expertise on a wide variety of topics,
including delinquency, underwriting and collections.
Directors can also access the board portal, which offers
other relevant information, such as definitions of key
banking terms. McComb also mentors new directors by
periodically meeting with them to address their questions
and concerns.
" I don't understand why [some] banks don't have an
onboarding program, " he says. " If the management team
and board chair are not providing it, they're doing their
shareholders and board a big disservice. "
Built-in training
Five years ago, Bank of the Prairie in Olathe, Kan., developed
a director onboarding program with a built-in
training component, says Chris Donnelly, president and
CEO of the $145 million-asset community bank.
Donnelly or the bank's chief financial officer deliver
30 minutes of training at the end of each monthly board
meeting on topics ranging from compliance and bank
liquidity to interest rate sensitivity. New directors also
attend a full-day, offsite seminar covering their core
responsibilities and actively engage in weekly or monthly
bank committee meetings.
Donnelly says directors are often also shareholders and
must learn to place the community bank's interests ahead
of their own to avoid potential conflicts of interest. He
says that's one of the most difficult concepts for them to
grasp. " If they're not learning, not engaged on a constant
basis and don't have input into what's going on, how can
they help you, how can they perform and move forward
into the future? " Donnelly says. " You need to get them
engaged in all of the different components of the bank and
[understand] what their responsibilities are. "
Steady stream of information
There are many resources community banks can use to
create an onboarding program. ICBA offers a bank director
program that includes a bimonthly newsletter, 20
online education courses, access to attorneys through a
governance helpline and discounts on live events, explains
Shirley Ringhand, ICBA vice president of certification,
seminars and the bank director program.
At the minimum, she says programs must include
documents that describe the bank's structure, corporate
culture, strategic plan and common banking acronyms,
while exposing directors to key compliance components
and regulatory requirements.
Likewise, she says community banks should make sure
that new directors serve on bank committees that best suit
their background, knowledge and expertise.
" Provide them with the tools and information prior
to their first board meeting, " says Ringhand. " Get them
immersed in banking, much like a brand-new bank
employee. Tell them what to expect during the first board
" Provide them with the tools
and information prior to
their first board meeting.
Get them immersed in
banking, much like a brandnew
bank employee. "
-Shirley Ringhand, ICBA
meeting, what they will encounter, and to ask questions to
understand what the issues are. "
Some community banks prepare a welcome manual for
directors to use as a reference tool, says Jeffrey Gerrish,
an attorney and chairman of the board at Gerrish Smith
Tuck, a consulting and law firm focusing exclusively on
community banks in Memphis, Tenn.
He suggests including materials in the manual that
describe how the board works, hot-button issues, compliance
concerns, the member evaluation process,
committees supported by the bank and what they do,
key state and federal regulations, the chairperson's role,
director responsibilities and instructions for accessing
last month's online board package.
Other community banks overlap incoming and outgoing
members as part of an onboarding strategy, he says,
even though that results in a temporary increase in director
payments.
" Individual directors will be much more effective more
quickly if you have an onboarding program, " says Gerrish,
who authored a book containing banking acronyms and
definitions, Gerrish's Glossary for Bank Directors. " Otherwise,
it's just on-the-job training. "
Carol Patton is a writer in Nevada.
independentbanker.org Q 23
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Independent Banker - December 2018

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