Pub. 7 2016 Issue 1

www.wvbankers.org 4 West Virginia Banker 18 8 © 2016 West Virginia Bankers Association The newsLINK Group, LLC. All rights reserved. West Virginia Banker is published four times each year by The newsLINK Group, LLC for the West Virginia Bankers As- sociation and is the official publication for this association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the West Virginia Bankers Association, its board of directors, or the publisher. Likewise, the appear- ance of advertisements within this publication does not constitute an endorsement or recommendation of any product or serviced advertised. West Virginia Banker is a collective work and as such some articles are submitted by authors that are independent of the West Virginia Bankers Association. While West Virginia Banker encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at: 855-747-4003. 6 69th Annual School of Banking By Joe Ellison, President & CEO 8 Back Testing and Validation of A/L Reporting Systems For a number of years, bank regulators have focused on the adequacy and soundness of ALCO processes used by banks to manage interest rate risk exposures By Jeff Caughron and Chris Wilson, The Baker Group LP 10 The EEOC Wants Your Compensation Data The Equal Employment Opportunity Commission (EEOC) annually collects workforce data from employers with more than 100 employees, otherwise known as an EEO-1 Report. By Justin M. Harrison, Esq. / Bowles Rice LLP 12 The Importance of Monitoring Federal Tax Liens When it comes to determining “who’s on first” among competing lien holders, the “first to file” rule typically governs. By David M. Thomas and Paige K. Vagnetti, Dinsmore & Shohl LLP 14 Importance, Issues Encountered, Monitoring and Compensating Controls Data security breaches continue to garner headlines, and criminals continue to engage in targeted activities to steal millions of dollars in unauthorized funds. By Chris Joseph, CPA, CISA, CRISC, CITP, Arnett Carbis Toothman LLP 18 Cyber Risks – A Board Primer Cyber-risk is a witch’s brew of reputational, operational, legal and financial dangers. It is a statistical certainty that your financial institution will suffer a cyber-intrusion at some point. By Timothy R. Moore, Spilman Thomas & Battle 19 Bank Notes 20 Crime-as-a-Service = Hackers for Hire Most “hackers” are just like you and me. Hacking has evolved from kids trying to figure out how the internet works to an everyday business. By Jon Waldman, Secure Banking Solutions, LLC 23 Calendar of Events 24 What’s Ahead for Bank Technology in 2016— and How Will Your Peers Use it? It’s fitting that we pause to reflect on the ways in which technology has evolved recently, as well as what’s in store for bank technology in 2016—and how, according to our survey, your fellow bankers will leverage it. By Steve DuPerrieu, CSI 26 Creating “Amazon Prime” For Your Bank Community banks have a dilemma. Under significant market pressure to boost profitability, they need growth. By Chris Nichols, Chief Strategy Officer 28 Assessing the “Real Return” of the Bond Portfolio The risk-adjusted return on any asset should be conducive to its risk. If a bank makes two loans, it prices each loan based on the risk of the underlying borrower. 30 Building a Better 401(K) Part Two The first of these involves adding a Roth 40(k) feature. Such an option combines the features of a traditional 401(k) with a Roth IRA, providing participants with a source of tax-free retirement income. By Mark Hogan, Pentegra Retirement Service