Independent Banker - September 2024 - 10

CURRENCIES
THE CHECKLIST
5 stages of a thirdparty
relationship
life cycle
Federal bank regulators released
Third-Party Risk Management: A Guide
for Community Banks to help banks
navigate third-party relationships.
United Bank has
worked with its
customer Slay's
Nursery since 2004.
NEWS
Growing with a plant nursery
As of 2024, United Bank in Atmore, Ala., has worked with Slay's
Nursery in nearby Elberta, Ala., for two decades, having helped its
owners launch and grow their nursery and gardening store.
The $1.2 billion-asset community bank established its relationship
with Slay's Nursery in 2004 when the owners, Theresa and Richard
Slay, were looking to expand their wholesale business with the
addition of a retail nursery. Rachel Holland, senior vice president of
agricultural lending at United Bank, was the Slays' loan officer.
" They're in the nursery business; they're a wholesaler, " Holland
said. " They sell to farmers markets along the southern part of
Alabama and into Mississippi as well. They primarily specialize in
flowers, plants [and] ferns. They started out smaller and were able to
grow and be successful today. "
The community bank's longstanding relationship with Slay's
Nursery reflects United Bank's agricultural roots, which date back to
the bank's inception in 1904.
" Agriculture is a big part of what we do. Our first loan was an ag
loan, so it's one of our missions to grow the agriculture community, "
said Holland, " and we consider horticulture and the nursery in the ag
sector. We try to provide resources and funding to help the farmers
and the nursery owners to grow their businesses. "
United Bank's relationship with the Slays also allows the bank's
work as a community development financial institution to shine
through. " Our mission really is [to support] underserved rural areas
[and try] to bring economic activity and viability to areas, no matter
what that looks like, " said Leigh Anne Jones, United Bank's chief
financial officer. " I think the nursery business is a good example
of that. " -Victoria Schutz
10 // ICBA Independent Banker // September 2024
PLANNING
Before engaging with providers,
evaluate the legal requirements,
financial and information security
implications, technology integration
and if the expected benefits exceed
the potential risks.
DUE DILIGENCE AND
THIRD-PARTY SELECTION
Is the third party able to perform the
activity as expected, adhere to the
bank's policies and comply with laws
and regulations?
CONTRACT NEGOTIATION
Meet with the third party to discuss
risk management and oversight,
both sides' obligations, and
arrangements for the sharing and
use of information, technology and
intellectual property.
ONGOING MONITORING
Set aside time to evaluate and
determine if the third party is
performing as required for the
duration of the contract to adapt and
refine risk management practices.
TERMINATION
If the third party is underperforming,
consider how the termination
will affect the bank's operations,
handling of intellectual property,
access removal and associated risks.
Read the report at
federalreserve.gov
Photo (this page): Drew Drohan/United Bank. Photos (opposite, clockwise from top left): Bank of Brest (1837)/American Numismatic Society; $20 Augusta Insurance and Banking Co. banknote
(1858), Manuscripts and Archives Division/The New York Public Library/digitalcollections.nypl.org; Bank of Saline three dollar note/Saline, Michigan (1837)/Wystan/Flickr; Erie & Kalamazoo Rail Road
Bank (1853); Allegany County Bank, 10 dollars (1860)/Baker Library/Harvard Business School/Historical Collections/American Currency Collection; Agricultural Bank/Specimen of Wildcat Currency/
History of Iowa From the Earliest Times to the Beginning of the Twentieth Century Volume 1; Bank note from the Bank of De Soto (Nebraska)/History Nebraska

http://www.federalreserve.gov

Independent Banker - September 2024

Table of Contents for the Digital Edition of Independent Banker - September 2024