Tag Archives: AzBA

Lynne Herndon - 50 Most Influential Women in AZ Business

Lynne Herndon – 50 Most Influential Women in Arizona Business

Lynne Herndon – Phoenix city president, BBVA Compass Bank

Herndon, who has worked in the banking industry for roughly 25 years, oversees the business lending activities in Phoenix for commercial lending and commercial real estate lending, including treasury management and deposits. Total loans outstanding under management are $950 million. Herndon also serves as the 2012-2013 chairman of the board of directors for the Arizona Bankers Association (AzBA). She earned her bachelor’s degree and MBA from the University of Alabama.

Surprising fact: “I love rock ’n’ roll music and I go to about 20 concerts a year.”

Biggest challenge: “Keeping the sales team motivated during the 2008 downturn was challenging. Frequent communication as well as positive feedback for good work was critical.”

Fifty Most Influential Women in Arizona Business – Every year in its July/August issue Arizona Business Magazine features 50 women who make an impact on Arizona business. To see the full list, read the digital issue >>

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Enterprise's Barry joins AzBA board

The Arizona Bankers Association today announced Jack Barry, chairman of Enterprise Bank & Trust’s Arizona region, was recently elected to the association’s board of directors.

“Jack is well-respected for his leadership at Enterprise as well as for his long-standing commitment to the Phoenix community,” said Lynne Herndon, AzBA board chairman. “We are delighted to welcome him to the board as we continue to expand the scope and reach of AzBA, the voice of Arizona’s banking industry for more than 100 years.”

Barry joined Enterprise in 2008 as President of the Bank’s Arizona Region. Previously, he served as Executive Vice President and Market Leader for the former M&I Bank in Phoenix, where he was responsible for all commercial banking operations in the Phoenix area. He has also held senior management positions at the former Southwest Bank in Arizona and Mark Twain Bancshares in St. Louis, Missouri.

Barry earned a BS from the University of Missouri and holds a Certificate of Accountancy from the State of Missouri. He is past President of the Arizona Chapter of the RMA, is a former director of the Arizona Chapter of the Association for Corporate Growth, is on the board of the Boys & Girls Club of Metropolitan Phoenix and is vice president of Phoenix Country Club.

Jack Barry 9607

Enterprise’s Barry joins AzBA board

The Arizona Bankers Association today announced Jack Barry, chairman of Enterprise Bank & Trust’s Arizona region, was recently elected to the association’s board of directors.

“Jack is well-respected for his leadership at Enterprise as well as for his long-standing commitment to the Phoenix community,” said Lynne Herndon, AzBA board chairman. “We are delighted to welcome him to the board as we continue to expand the scope and reach of AzBA, the voice of Arizona’s banking industry for more than 100 years.”

Barry joined Enterprise in 2008 as President of the Bank’s Arizona Region. Previously, he served as Executive Vice President and Market Leader for the former M&I Bank in Phoenix, where he was responsible for all commercial banking operations in the Phoenix area. He has also held senior management positions at the former Southwest Bank in Arizona and Mark Twain Bancshares in St. Louis, Missouri.

Barry earned a BS from the University of Missouri and holds a Certificate of Accountancy from the State of Missouri. He is past President of the Arizona Chapter of the RMA, is a former director of the Arizona Chapter of the Association for Corporate Growth, is on the board of the Boys & Girls Club of Metropolitan Phoenix and is vice president of Phoenix Country Club.

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Anatomy of a bank

Paul Hickman, president and CEO of the Arizona Bankers Association, sat down with Arizona Business magazine to dissect the anatomy of a bank and what makes the industry click.

What is the model of a bank?
The fundamental business model of a bank is to give customers a safe, secure place to deposit their earnings and savings, and to lend money to borrowers for small businesses, homes, education, cars, etc. . . .  Banks pay interest on deposits and charge interest on loans.

Why do banks need to make a profit?
Like most other business enterprises, if banks are not profitable they cannot sustain themselves and stay in business. Additionally, their deposits are insured by the FDIC, which is funded by bank premiums.  A bank that continuously loses money would become uninsurable and lose its charter.

What is a common misconception about banks?
One of the most common misconceptions is that banks don’t need to charge fees for certain services. A prime example is the fees card issuers charge merchants for debit card transactions.  The fees support a safe, secure, ubiquitous medium of exchange that operates 24/7, on a global scale.

Who establishes and enforces the regulations that banks have to follow?
A bank’s primary regulator is determined by whether it is a commercial or savings institution and whether it has a national or state charter.  The primary federal regulatory agencies are the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve.  Additionally, every state has a regulatory agency that oversees state chartered banks.

What regulatory structures inhibit banks’ flexibility in modifying loans?
Banks are required to maintain certain risk-weighted asset to capital ratios.  Once a loan is modified it must be reclassified at a higher risk weight, requiring more capital.  Given the current challenges many firms are facing raising capital, this regulatory structure can act as a disincentive to modify loans.

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Q&A with Lynne Herndon

Lynne Herndon, city president for BBVA Compass, will serve as the 2012-2013 chairman of the board of directors for the Arizona Bankers Association (AzBA).  Herndon succeeds James Lundy, president and CEO of Alliance Bank of Arizona, as chairman of the association.

“I am excited to step into the chairman role and work with the other board and association members,” said Herndon.  “These last few years have required steadfast legislative attention and advocacy at all levels.  We have also had to respond to heightened regulatory attention and pressures.  Acting with a single voice has made a larger impact.  I look forward to continuing to strengthen the unified voice of the bankers within the state.”
Herndon sat down with Az Business magazine for a far-reaching Q&A.

AB: Why did you choose banking as a career?
Lynne Herndon: I chose banking because it allowed me to utilize both my interpersonal and analytical skills. I enjoy meeting with customers and I enjoy analyzing a business situation and offering a solution. Bankers help companies accomplish their goals of growth and expansion.  It’s a perfect fit.

AB: Tell us one thing about you that would surprise most people?
LH: My two favorite things are college football, namely Alabama football, and rock ’n’ roll music.  My husband and I go to at least 20 concerts a year, both in and out of state.

AB: What’s the biggest change you’ve seen in the banking industry since you started?
LH: Regulation.  Banks are held to a much higher standard in areas of underwriting, appraisals, and compliance. Our required level of due diligence is therefore deeper.

AB: What has been your biggest challenge in the banking industry?
LH: Winning business in a highly competitive market. Arizona has many, many banks. And many banks are chasing the same deals.

AB: What has been your greatest accomplishment in banking?
LH: Lending when times are good is easy. Lending when economic times are tough is hard. I’m proud of the fact that BBVA Compass was able to lend money during 2009 and 2010, two very difficult years.

AB: The Valley is home to many female banking leaders. Why have so many more women risen to the top of the industry here in Arizona compared with other parts of the country?
LH: There are more women in banking today because more women are seeking and aspiring to senior management positions in this industry. In particular, more women are pursuing positions in commercial banking.

AB: What do you hope to accomplish as chairwoman of the Arizona Bankers Association?
LH: Our marquee issue is amending Arizona’s anti-deficiency statute.

AB: The banking industry has been beaten up a bit over the last few years thanks in part to Wall Street, what does the industry need to do to begin to mend its public perception?
LH: Bankers need to proactively speak to clients about what we are doing.  We are in business to make loans and we are looking for ways to loan money to individuals and businesses.  Our workforce is also very active in our communities giving both time and treasure.  We need to tell our story.