Randy Scott is the president and chief operating officer of Farmers Bank & Trust in Blytheville. A 26-year veteran of banking, he has worked the last 16 years at Farmers. He was appointed to the six-member State Banking Board on June 8, and his term runs through Dec. 31, 2020.
Scott grew up near Hornersville, Missouri, and graduated from Southeast Missouri State University in Cape Girardeau, majoring in finance with a minor in accounting. After college, Scott went through the management training program at Mercantile Bank of St. Louis and returned to the Missouri Bootheel, where he worked at several banks in Sikeston. He is a director at the Arkansas Bankers Association and serves on the board of trustees at Arkansas Northeastern College in Blytheville.
Farmers Bank & Trust, established in 1908, is a $485 million-asset lender.
What happened to turn your career compass toward banking?
Some people switch careers several times in their lifetime. I’ve been fortunate to know that I have always wanted to be a banker. I grew up on a family farm, and both of my older brothers became farmers. Very early on, I knew that I didn’t want to be a farmer. I set my goal to become a banker in eighth grade, and on my high school senior spotlight, under ambition it stated “Bank President.”
What is your biggest challenge as an east Arkansas banker?
I think we face the same challenges that bankers all across rural America face. Rural America is drying up. Small towns are getting smaller, which provides fewer business opportunities for us as bankers. We are not only bankers; we also serve as economic developers, civic leaders, youth sports directors, church leaders, etc.
If you could make one change in the banking industry, what would it be?
Less federal regulation!
Every time there is an economic crisis, a mass of regulations is placed on all banks, regardless of their size. No regulations are ever removed. Arkansas banks have always outperformed their peers in other states and rarely get into the risky lending issues that have affected the banking industry in the past; however, we get the same regulations that are imposed on the Wall Street banks. This, in turn, hurts our consumers. When I started my banking career 26 years ago, a consumer had to sign eight times to get a home loan. Today, that consumer would have to sign over 80 times to get the same loan.
What is your favorite part of being a banker?
Helping people achieve their goals, whether it is home ownership, starting a new business, expanding a business or planning for retirement. I love to hear their success stories and know that I helped play a small part in their success.
Agri lending is a big component of operations at Farmers Bank & Trust. What are some of the big issues in this lending sector?
There’s no doubt that this sector of the economy is soft right now. With lower commodity prices and increased input expenses, the farmers’ cash flows are very tight. Fortunately, our farmers have had several very successful years, allowing them to build up equity in their land and equipment. They are in good shape to weather a few bad years.
It is important for our bank and our regulators not to panic when they have a losing year or two. We are in it for the long term with our farmers. We have banked several generations of farmers, and they have had their good years and their bad years, just like any industry sector.
Mistakes are said to deliver some of the most meaningful lessons. What was your biggest career mistake and how has it helped shape your career?
I was young and eager and accepted my very first lending job for a bank that was desperate for a lender. Little did I know at the time, the bank had major lending problems with a toxic loan portfolio. I spent the first two years attending foreclosures and bankruptcies. I learned everything not to do as a banker. It turned out to be a great learning experience for me.