2025-2026 Pub. 15 Issue 2

OVER A CENTURY: BUILDING BETTER BANKS — Helping Coloradans Realize Dreams September/October THE HIDDEN GROWTH TOOL IN YOUR LOAN PORTFOLIO How to Spot SBA 504 Opportunities Before Your Competitors Do

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©2025 The Colorado Bankers Association (CBA) | The newsLINK Group LLC. All rights reserved. Colorado Banker is published six times per year by The newsLINK Group LLC for CBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. 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 circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of CBA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Colorado Banker is a collective work, and as such, some articles are submitted by authors who are independent of CBA. While a first-print policy is encouraged, 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. Jenifer Waller President & CEO Alison Morgan Director of State Government Relations Brandon Knudtson CFO & Director of Membership Lindsay Muniz Director of Education Parker Terrell Communications Specialist Megan Carruth Executive Assistant Margie Mellenbruch Bookkeeper* Melanie Layton Lobbyist* Garin Vorthmann Lobbyist* Caroline Woodhouse Lobbyist* *Outsourced 140 E. 19th Ave., Ste. 400 Denver, Colorado 80203 Office: (303) 825-1575 coloradobankers.org colorado-banker.thenewslinkgroup.org BUILDING BETTER BANKS — Helping Coloradans Realize Dreams 10 18 2025-2026 Issue 2 4 PRESIDENT’S MESSAGE Federal and State Legislative Update By Jenifer Waller, President and CEO, CBA 6 Compensation and Executive Benefits Strategies for Attracting and Retaining Top Talent By Ken Derks, Consultant, NFP Executive Benefits 10 A Passwordless Future for Financial Services By Ben LeClaire, Plante Moran 12 How Lenders Are Risking Major Losses On Untracked Collateral By MeKelee LaFoy, CP Insurance Associates 14 CBA Centerpoint Going Beyond the Desk to Hear the Stories of Colorado Bankers 16 AI Use Cases in Banking A Roadmap to Smarter Decisions and Stronger Outcomes By Sriram Tirunellayi, Director of Applied AI, Abrigo 18 The Hidden Growth Tool in Your Loan Portfolio How to Spot SBA 504 Opportunities Before Your Competitors Do By B:Side Capital 20 The State of Ransomware 2025 By Sally Adam, Vice President, Solution Marketing, Sophos 22 Choosing a Deposit Network and Maximizing Its Value for Your Bank By Steve Kinner, Senior Managing Director, IntraFi 23 Tired of Outdated, Static ATM Drive-Up and Branch Signage? Discover How Digital Signage Is Transforming the Branch and ATM Drive-Up Experience By Cook Solutions Group 3 Colorado Banker

PRESIDENT’S MESSAGE Federally, the pace of legislative and regulatory change is overwhelming — some of it is good, some is not. This is always the case with a change in administration or political party control. When we have regulatory change versus Congressional action, banks are always susceptible to counteractions with the next administration. This whiplash effect can be challenging for banks. But let’s dive right in. D.C. has been busy. Let’s start with the GENIUS Act. Congress passed this legislation, and President Trump signed it into law on July 18. The law requires issuers to maintain a one-for-one reserve and disclose the redemption policy. The bill allows foreign issuers of stablecoins to offer, sell or make available in the United States stablecoins using digital asset service providers, subject to requirements, including a determination by the Department of the Treasury that they are subject to comparable foreign regulations. Issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes. Issuers are explicitly prohibited from paying interest or yield to holders of their stablecoins. This prohibition does not apply to affiliates. This is a significant loophole that we are seeking a correction in the market structure bill. 1. Strengthen the prohibition on interest payments for payment stablecoins by extending it to brokers, dealers, exchanges and affiliates of payment stablecoin issuers. 2. State Chartered Depositories: Repeal Section 16(d) of the GENIUS Act to restore state authority over out-of-state-chartered financial institutions. Many are acting as money transmitters. 3. Non-Financial Company Activity: Close loopholes in the prohibition on non-financial companies being payment stablecoin issuers by removing all approval pathways and prohibiting both public and private non-financial entities. Deposit insurance is ripe for reform. The best time to work on this is when there isn’t a banking crisis. Sen. Hagerty (R-TN) introduced an amendment to the National Defense Authorization Act (odd place for a DIF amendment), increasing insurance coverage for non-interest-bearing accounts up to $20,000,000 for banks under $250,000,000,000. The amendment is silent regarding the cost of the increase. The ABA DIF working group has recommended more comprehensive reforms outlined in the following. Emergency Actions and Authority Congressional pre-approval for enhanced FDIC coverage to mitigate severe stress events is needed. Congress should pre-approve authority for the FDIC to create a program similar to the transaction account guarantee program that would guarantee bank and holding company liabilities during times of severe stress. This step could help reduce the risk of contagion. Improve transparency of systemic risk determinations and special assessments. Congress should require the FDIC to develop guidelines on specific considerations that warrant a systemic risk determination and the methodology it will use to identify beneficiaries for purposes of a special assessment. Deposit Insurance Coverage, the Deposit Insurance Fund and Assessments Ensure the coverage limit and any modifications to it are empirically based and indexed to inflation. Any change in coverage should be data-driven, with significant input from the banking industry and other stakeholders. Once a limit is established, it should be indexed to inflation. Federal and State Legislative Update By Jenifer Waller, President and CEO, CBA Colorado Banker 4

Maintain a Deposit Insurance Fund that is stable and properly calibrated to risk. The FDIC should continue to use a risk-based approach when setting assessments and ensure its methodology is based on modern risk principles. Make deposit insurance assessments tax-deductible. Congress should reverse the Tax Cuts and Jobs Act of 2017’s sliding-scale method for determining the deductibility of FDIC assessments. Evaluate the potential costs and benefits of offering additional insurance for purchase by individual banks. Allowing banks to purchase excess deposit insurance would likely result in lower costs for banks relative to excess deposit insurance products provided by the private sector. The FDIC should evaluate the potential costs and benefits of such an approach. Bank Resolutions Broaden the scope of considerations applied in the determination of “least cost” to include potential contagion or other unwanted impacts. Congress should allow the FDIC to consider the cost of resolutions strategy on a wider range of banks or the industry, not just the deposit insurance fund. Enhance community bank participation in resolutions to preserve essential banking services. Congress should allow the FDIC to consider the cost of resolutions strategy on communities and provide the FDIC with the power to balance the least cost test for community bank failures with options to mitigate negative impacts, such as loss of essential banking services, on the relevant communities. Open resolution-associated asset auctions to a greater diversity of investors. This FDIC change would enhance fairness to the failed bank bidder qualification process, increasing the spectrum of institutions permitted to bid on failed institution franchises and assets. Publicly release resolution approaches considered in a given case and their respective estimated costs. FDIC should release the resolution approaches considered and the estimated costs of each failure to improve the transparency and accountability associated with failed institution resolutions. The Treasury has announced they are looking to reform Currency Transaction Reporting requirements. Currently, only 3-6% of reports are ever viewed — the system is flooded with reports, making it hard to detect actual criminal activity. We are urging an increased threshold for reporting. The $10,000 threshold has been in effect since the origination of the requirement. If increased by inflation, it would be $73,000. We are asking for an increase and that the increase be indexed to more in accordance with inflation. We are also seeking streamlining of the exemption and reporting processes. Bills have been introduced to increase regulatory asset thresholds and index them for inflationary growth. Congressman Barr (R-KY) has a draft that increases the current $10 billion threshold to $50 billion. The Senate doesn’t appear eager to take the threshold that high. Congressman Barr is trying to find what increase would pass. The Supervisory Modifications for Appropriate Risk-Based Testing Act of 2025 by Reps. Timmons (R-SC) and Foster (D-IL) would increase the threshold under for a limited-scope examination after an on-site, full-scope exam from $3 billion to $6 billion. The Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act), sponsored by Reps. Moore (R-NC) and Torres (D-NY), would increase the total asset threshold under which institutions qualify for an 18-month exam cycle from $3 billion to $6 billion. In Colorado, we just wrapped up a five-day special session called by Gov. Polis. The session addressed the budget shortfall and artificial intelligence. In 2024, Colorado passed the first AI law with 24-205. In his signing letter, Gov. Polis stated the structural flaws in the legislation would have to be addressed. During the 2025 General Session, legislation failed to pass committee to fix gaps in artificial intelligence law. During the special session, tech and business groups could not reach a consensus on language to fix the law. A bill was passed to extend the implementation deadline for the effective date of the AI law to June 30, 2026. We will now debate artificial intelligence during the 2026 General Session. Despite the fast pace of change, we stand ready to defend the industry. If you have questions on these or any other issues, don’t hesitate to contact Alison at alison@coloradobankers.org or me at jenifer@coloraobankers.org. 5 Colorado Banker

Retaining talent is one of the greatest challenges bankers face, along with adapting to their executive compensation plans in this changing economy. Bank leaders across the country are facing a familiar but intensifying challenge: economic unpredictability. With 93% of survey respondents revealing in the 2025 NFP U.S. Executive Compensation and Benefits Trend Report that they are unsure whether to expect a downturn or growth, the old playbook, relying on salary bumps and broad perks, is being rewritten.1 Instead, banks are turning to executive benefits as a more stable, strategic lever. As baby boomers retire and succession pipelines thin, the financial services sector is feeling the pressure. 54% of key employees are delaying retirement, up from 44% just a year ago.1 This shift isn’t just about demographics; it’s about continuity, leadership and the future of banking. In addition, a high priority for bankers is recruiting new talent. Bankers who participated in the 2024 Pearl Meyer National Banking Compensation Survey2 indicated that the top positions they are planning to recruit included the following: Position Percentage Commercial Lenders 72.1% Top Executives (e.g., C Suite) 25.6% Compliance Management 20.9% Technology Management 18.6% Risk Management 16.3% Wealth Management 7.0% Other 9.3% 2025 Pearl Meyer National Compensation Survey Report Compensation is one of the most important drivers of success in recruiting key talent, particularly in a tight labor market. Comprehensive compensation plans that are successful in landing key talent include not only an attractive base and performance bonus plan but also tailored mid- to longer-term incentives, nonqualified benefit plans and other executive benefits. See the following chart about executive benefit plans regarding the impact of the success of these plans, especially related to nonqualified benefit plans, where 82% of respondents of the NFP Executive Compensation and Benefits Trend Report indicated a high/moderate impact of plan success. Benefits Offered Percent Offered High/Moderate Impact on Plan Success Nonqualified Deferred Compensation Plans 69% 82% Performance-Based Incentive (Short or Long-Term) 64% 91% Employment/Severance Agreements 38% 69% Signing Bonus 37% 72% Fringe Benefits (e.g., First-Class Air Travel, Legal Planning Services) 31% 69% Supplemental Executive Life Insurance 28% 75% Stock/Equity 27% 88% Supplemental Executive Disability Coverage 26% 45% Split-Dollar Life Insurance 24% 69% Financial Planning/Wealth Management 18% 55% Long-Term Care or Hybrid Life With Long-Term Care 10% 54% Supplemental Executive Medical Insurance 9% 65% Loans to Buy/Payback Stock, a Home, Loans, Other Debt, etc. 8% 40% College Tuition for Children 2% ** 2025 NFP U.S. Executive Compensation and Benefits Trend Report Compensation and Executive Benefits STRATEGIES FOR ATTRACTING AND RETAINING TOP TALENT By Ken Derks, Consultant, NFP Executive Benefits Colorado Banker 6

Employers increasingly recognize and understand the link between well-designed executive compensation and benefit packages and overall organizational performance. Creating effective strategies for attracting and retaining key employees across multiple generations can be the game-changer that ensures your most valuable and strategic employees stay and thrive within your bank. It requires structuring compensation packages with flexible options in order to address varying generational priorities. The following are three strategies that your bank can implement to retain and reward top talent. 1. Supplemental Executive Retirement Plans According to the American Bankers Association’s 2024 Compensation & Benefits Survey3, nearly 67% of banks report utilizing deferred compensation plans for key positions. These plans can include supplemental executive retirement plans (SERPs), providing a defined post-retirement benefit. SERPs are widely popular with baby boomers and Gen X generations. Unlike similar broad-based qualified plans, a SERP has no contribution limit or rules that mandate that all employees must be able to participate. They are purposely designed for highly compensated executives and key employees for whom the 401(k) contribution limits act as a form of “reverse discrimination” toward retirement. Also, SERPs are generally fully funded by the bank. 2. Strategic Deferred Compensation Plans These plans are used when a bank wants to create both a recruiting and retention incentive for top talent. A strategic and customizable deferred compensation plan (DCP) is fully funded by the bank. These are defined contribution plans, with contributions often based on performance criteria designed to support the bank’s strategic goals. These programs are not usually “all or nothing” in nature. In other words, there is a range of contribution levels tied to performance levels, including no contributions in down years. Strategic DCPs can allow for contributions and earnings to be credited to balances based on ROA, ROE or another metric, thereby tying the long-term value of contributions to the performance of the bank. See examples in the following chart. 2024 Pearl Meyer National Compensation Survey Report If Institution Performance or Department/Functional Performance is considered, are the following specific performance measures used for short-term or annual incentive plans? A deferred compensation plan often includes a vesting schedule for bank contributions, designed to incentivize participants to remain employed in order to fully benefit from the plan. This serves as a mechanism to not only align your top performers with the goals of the bank but also retain those top performers. For younger generations, a popular feature is one that allows for in-service distributions. “In-service” DCP payment schedules are customizable and can be made at any point, e.g., three, five or 10 years, or even to coincide with certain life events. These can include a home purchase, student loan repayments or a child entering college. 3. Phantom Stock/Stock Appreciation Rights Plans Long-term incentive plans can be an important part of an officer’s compensation package. However, while many privately owned banks are reluctant to share actual tangible equity with their employees, some have been more open to a strategy that is tied to the appreciation of the bank’s value over time. Phantom stock and SARs are ways to provide an equity-like benefit to employees without having them own actual stock. These plans can be designed to pay key officers bonus compensation tied to an increase in the bank’s stock or book value. In a SAR plan, the bank determines a hypothetical stock price through an internal or external valuation of the bank. Officers are awarded some number of hypothetical or “phantom” shares that include specific terms 7 Colorado Banker

and conditions. At a pre-determined time, the officer receives a cash payment equal to the difference between the original price and the appreciated price. For example, let’s assume the officer receives 1,000 phantom shares with a beginning price of $50. At the end of three years, the bank calculates the phantom stock price to be $75, and then pays the officer any positive difference; in this example, the bank would pay the participant $25,000. The Bottom Line The article highlights the importance of bankers reviewing current programs and, where necessary, implementing new executive benefit plans that address the evolving needs of today’s multi-generational workforce and are strategically focused. Based on NFP’s experience and research, we know that comprehensive benefits packages are key to providing the financial incentives needed to attract, retain and reward top talent and put both employers and employees on the path to success. If your bank has previously implemented some type of non-qualified plan or retention plan, perhaps it’s time to re-evaluate the design and the related benefit agreements. Items to periodically assess include (1) compliance with IRC §409A, (2) revisions to benefit amounts given participant promotions and salary changes, and (3) accounting and tax considerations, including Change in Control (IRC §280G) provisions. Based on our experience, several Colorado banks have been successful in attracting and retaining key talent with these types of executive benefit plans. Whether your bank has executive benefit plans in place or not, the planning process for any new or revised compensation plans, to be implemented effective Jan. 1, should start now. Ken Derks is a consultant with NFP Executive Benefits, which is also a Premier Partner with the ABA. He is a registered representative with Kestra Investment Services, Member FINRA/SIPC. NFP and Kestra Investment Services are not affiliated. To learn more, contact Ken Derks at ken.derks@nfp.com. Insurance services provided through NFP Executive Benefits LLC. (NFP EB), a subsidiary of NFP Corp. (NFP). Doing business in California as NFP Executive Benefits & Insurance Agency LLC. (License #OH86767). Securities offered through Kestra Investment Services LLC, member FINRA/SIPC. Kestra Investment Services LLC is not affiliated with NFP or NFP EB. Investor disclosures are available at https://bit.ly/KF-Disclosures. 1. Source: 2025 NFP U.S. Executive Compensation and Benefits Trend Report 2. Source: 2024 Pearl Meyer Compensation Survey Report, survey of banks was conducted by Pearl Meyer with data collected as of April 1, 2024 3. Source: 2024 Community Banks Compensation and Benefits Survey, survey of banks was conducted by ABA with data collected as of March 31, 2024 Colorado Banker 8

| Bank Stock Loans | Loan Participations | ATM/Debit | International Services | | Cash Management | Securities Safekeeping | Merchant Services | 800-873-4722 | NE: 888-467-5544 | www.bbwest.com Where community banks bank Est. 1980 – 45 years of service to community banks “As a service provider exclusively focused on community banks, Bankers’ Bank of the West is here to help strengthen our clients and the communities they serve.” Across the western states and Great Plains, we’re the place where community banks bank. That’s because we provide the services, technology, and expertise to help you extend your resources, deliver for your customers, and stand out in your market. 5 reasons to partner with us BBW - President and CEO - Bill Mitchell 1. You can unlock efficiencies and cost savings. We can provide sophisticated solutions and economies of scale because we’re powered by hundreds of community banks across our region. 5. Our priorities are aligned with yours. 2. You can expand your capabilities. 4. We’ll never compete for your customers. 3. You can count on prompt, reliable service. • Independent loan review • Loan and credit administration consultation • Strategic planning facilitation • Management, staffing, & succession planning • Acquisition & expansion • BSA/AML compliance • Regulatory risk consultation President, Jim Swanson President, Anne Benigsen • Consulting • Phishing Tests • Vulnerability Management • Security Monitoring Cyber/information security, strategic planning, independent loan review, AND MORE. Consulting Services $ 8.45B assets under management $ 1.9B daily transaction value processed/settled Serving more than 60% of community banks across 7 states

A Passwordless Future for Financial Services By Ben LeClaire, Plante Moran Major technology providers, including Microsoft, Google and Apple, are shepherding a new standard of user authentication: passwordless authentication — a security method for validating a user’s identity without using a password. This group of methods, including biometrics, passkeys, security keys and out-of-band authentication (such as via SMS or email), offers a more secure, efficient approach than conventional authentication methods. As cyberthreats grow more sophisticated, conventional authentication methods such as passwords and even multifactor authentication (MFA), once a best-practice improvement for passwords, have become targets for hackers, exposing credential-based systems to undue risk. Passwordless authentication eliminates the risk of a credential-based attack, enhancing overall security, usability and compliance. Financial institutions are exploring this new security strategy in an evolving compliance landscape, as Big Tech pushes for industry standards to reinforce passwordless solutions. Regulatory bodies have also begun updating their guidance to encourage passwordless (phishing-resistant) authentication as a stronger standard, reflecting a broader industry shift beyond traditional MFA. As the industry moves into a new era of security standards, institutions should anticipate and prepare for future security policies that support stricter authentication requirements. Early adopters will be better positioned to meet future compliance expectations while improving security and efficiency for their users. The Benefits of Going Passwordless Passwordless authentication can help protect your financial institution from security breaches, streamline operations and minimize noncompliance risk as the regulatory frameworks evolve to reflect modern authentication methods. Top benefits of this new approach include: • Enhanced Cybersecurity: Passwords are often the weakest link in an institution’s security chain, exposing your data and systems to phishing, account takeovers and other forms of credential-based attacks. Phishing-resistant authentication methods like biometrics, security keys or passkeys can help reinforce your security and guard against unauthorized users and cyberattacks. • Streamlined User Experience and Operations: Passwordless authentication removes the need for password resets, support tickets and security incidents related to compromised passwords. Going passwordless simplifies the login experience for employees and customers by eliminating password-fatigue and reducing drain on IT support and financial resources caused by password-related support requests. • Strengthened Compliance Posture: Passwordless authentication methods can help future-proof your authentication system as regulatory bodies and compliance rules evolve to reflect industry best practices for authentication. A Security Pivot Isn’t Without Challenges Strategic adoption is critical to minimize operational challenges and new risks that come with passwordless technology. Your implementation strategy should consider the following: • Outdated Compliance Standards: Many financial regulations refer to password-based controls, making it unclear how institutions should navigate compliance requirements like FDICIA, ICFR and FFIEC guidelines. However, as authentication methods evolve, so will regulatory guidance. Financial institutions need to review their authentication methods against the latest requirements and be prepared to adapt their systems and policies to remain compliant. • User Adoption: Employees and customers may be resistant to, or challenged by, new authentication methods. Comprehensive training and user education can help you achieve buy-in across your institution and minimize disruption. • Security Gaps: If not implemented correctly, passwordless solutions can create new security vulnerabilities. For instance, fallback mechanisms (password resets, security questions or 2FA) that are poorly implemented can easily be bypassed by hackers. • Legacy Systems: As passwordless becomes the overarching technology, more systems than not are going to be compatible with this new security approach. However, some institutions still have legacy systems in place that Colorado Banker 10

lack the infrastructure to support passwordless methods, which can prolong the transition. With the rise of artificial intelligence and deepfakes, biometric spoofing, such as fingerprints or facial recognition, poses a serious threat without proper countermeasures. Liveness detection and other countermeasures can help reinforce biometric authentication. Lack of secure recovery options can also make it challenging for users if they lose access to their accounts. Well-designed passwordless authentication processes should include secure account recovery methods. Steps For Building a Passwordless Ecosystem As passwordless technology comes to dominate the authentication landscape, strategic planning is critical to ensure your institution meets industry standards and future regulatory scrutiny. Consider these steps to help your institution prepare for the transition. 1. Assess Technology Readiness: Identify systems within your technology stack that rely on password-based methods. Plan for upgrades where needed to support a cohesive implementation across your systems. 2. Build Your Passwordless Technology Stack: Replace password-based controls across your systems with phishing-resistant authentication methods like biometrics, security keys or passkeys. FIDO2 passkeys — an authentication method that combines device-based authentication (smartphone, security key) with biometrics or another passwordless credential — is largely upheld as the benchmark for authentication standards. Understanding which combination of methods works best for your institution is critical to ensuring a successful and secure rollout. 3. Develop a Hybrid Transition Model: Develop a plan to phase in passwordless authentication while maintaining compliance with existing password policies. A phased approach can help ensure smoother adoption and set you up for a successful transition as regulatory policies are updated to reflect these new methods. 4. Review Internal Policies: Review your current security policies and audit practices to ensure they support a passwordless ecosystem. Updating policies and procedures can help signal the significance of adopting this type of authentication to employees and stakeholders. 5. Establish Trainings and User Education: A passwordless system only operates as securely as its users, which is why it’s critical to get your employees on board with your new system once in place. Providing trainings and user education for employees promotes smooth adoption and minimizes operational disruptions. A Passwordless Future Is Coming — Strategic Adoption Is Key In an increasingly complex and sophisticated cyberthreat landscape, passwords are no longer enough to protect the security of your data and systems. It’s important that you start the conversation within your institution and explore authentication methods that align with your systems and institution. Starting the process for going passwordless now will help you maintain compliance and resiliency in the long term. For more insights from our trusted advisors at Plante Moran, scan the QR code. https://www.plantemoran.com/explore-ourthinking?utm_source=cba2025&utm_ medium=email&utm_campaign=PENFSG-2025_CBA Passwordless authentication eliminates the risk of a credential-based attack, enhancing overall security, usability and compliance. 11 Colorado Banker

How Lenders Are Risking Major Losses On Untracked Collateral By MeKelee LaFoy, CP Insurance Associates Risks are inherent to the business of lending and protections, like credit reporting, income verification, appraisals and others, are in place to help mitigate risks. Yet, many lenders unknowingly risk major losses by failing to properly track collateral insurance compliance. Untracked collateral exposes lenders to uninsured losses, repossession challenges and regulatory penalties. The Hidden Risks of Untracked Collateral Relying on manual processes or outdated systems to manage collateral insurance is a silent profit killer. When a borrower lets their insurance lapse, the lender’s asset is no longer protected. Without a robust tracking system, these lapses can go unnoticed for weeks or months. This delay increases exposure to uninsured losses due to accidents, theft or damage. Regulatory Pressures and Compliance Gaps Financial institutions are under increasing pressure to demonstrate compliance with both federal and state regulations. Manual tracking leaves room for error, inconsistent documentation and audit nightmares. From the CFPB to state-level oversight, regulators expect rigorous tracking and proof of action when coverage lapses. Failure to comply can result in heavy fines and reputational damage that takes years to repair. The Case for Automation in Insurance Tracking Automated insurance tracking services on your collateral offer a reliable, scalable and audit-ready solution. These platforms monitor insurance status in real time, identify coverage lapses immediately and trigger automated lender-placed insurance (LPI) processes. Automation reduces human error, ensures consistent communication and supports regulatory compliance with detailed reporting and data trails. This automatic protection becomes especially valuable when binding restrictions are triggered during major weather events, such as named windstorms or wildfires. In these scenarios, insurers may temporarily suspend the issuance of new policies or changes to existing ones, leaving collateral exposed. Additionally, homeowner’s insurance policies are increasingly introducing exclusions or raising deductibles for named windstorms and significant wildfire events in high-risk zones. In such cases, lender-placed policies can help fill critical coverage gaps, offering an extra layer of protection when it’s most urgently needed. Take Control of Your Portfolio Risk The potential costs of untracked collateral are simply too high to ignore. With the right tools in place, lenders can protect their portfolios, streamline operations and stay ahead of compliance demands. If you’re still relying on outdated methods, it’s time to explore how a partnership with experts in insurance tracking can transform your risk strategy. These are some great questions to ask when vetting providers for automated insurance tracking services: 1. How do you monitor insurance coverage and detect lapses in real time? Ensure the provider uses automated, real-time tracking rather than batch updates or manual entry. 2. What types of insurance policies and collateral types do you support? Confirm they can track auto, mortgage, commercial and specialty asset portfolios. 3. Can your platform integrate seamlessly with our core systems and LOS (Loan Origination System)? Ask whether APIs or middleware are available for smooth data exchange. 4. How do you handle borrower notifications and communication compliance? Ensure their notification process complies with federal and state regulations and includes tracking/archiving of correspondence. 12 Colorado Banker

If you’re still relying on outdated methods, it’s time to explore how a partnership with experts in insurance tracking can transform your risk strategy. 5. Do you offer LPI? And how is it triggered? The best providers offer seamless LPI integration with automatic policy issuance upon lapse detection. 6. What audit and reporting tools are available to support compliance reviews? Look for automated audit trails, historical data access and customizable reports that align with CFPB and OCC expectations. 7. How do you ensure data security and compliance with regulations like GLBA and GDPR? Confirm they follow strict encryption, access control and data governance practices. 8. What is your process for onboarding and training our internal teams? A thorough implementation and training plan can make or break adoption success. 9. What support services do you provide? Ensure there’s a responsive support team, ideally with account-specific liaisons. 10. How scalable is your solution as our loan portfolio grows or changes? Ensure the platform can handle portfolio expansion, asset diversity and geographic growth without service degradation. Educating Professionals, Creating Leaders 2025 Sponsored by: GSB.ORG CONGRATULATIONS GRADUATES FROM COLORADO! Julia Flockhart First FarmBank Greeley Dan Frasier ANB Bank Colorado Springs Casey McDaniel The Eastern Colorado Bank Burlington Andrew Neal FirstBank Arvada Jorge Rojas Lopez FirstBank Glenwood Springs 13 Colorado Banker

CBA Centerpoint Cindy Deckerd Vice President, Treasury Management Sales Vectra Bank How did you get started in the banking industry? In my senior year, through the work study program at my high school, I was hired as a receptionist in the HR department of the Central Bank of Denver. I was very fortunate to have such a rewarding opportunity at such a young age! After 16 years, I transitioned to an IT company that was building the eligibility system for Colorado Medicaid — another rewarding experience! The bank called me back to bring a system that is Y2K-compliant, and I’ve remained in banking ever since. What do you like to do to give back to the community (either personally, as a bank representative or both)? I have a heart for the Mile High United Way Bridging the Gap program, which supports young adults transitioning out of the foster care system. Vectra Bank is very engaged in giving back to the community we serve and is very supportive of its employees volunteering as a bank representative as well as our personal volunteer interests! What is the most rewarding aspect of your job? The most rewarding aspect of my job is the relationships I’ve developed. I’ve learned to get out of my comfort zone, raise my hand, and say, “Pick me, I’ll do it!” This has afforded me the opportunity to develop relationships with people I would never have met. What do you geek out about? The ever-changing world of technology and problem-solving with my internal and external clients. Don’t get me started down a rabbit hole! Who is one of the most influential figures in your life? My mom; she is my rock! In addition, one manager took me under her wing, mentored me and taught me so much about the corporate world. She helped me discover and develop skills personally and professionally. Erica Herman Director, Community Banking First National Bank of Omaha How did you get started in the banking industry? I walked into my bank to open new checking/savings accounts, and when asked about my employer, I indicated I was applying for jobs. They indicated they were hiring tellers, and I thought, “I will work at the bank until I find another job.” Many, many years later, I am still in banking! What makes your bank unique? First National Bank of Omaha (FNBO) is one of the largest privately-owned banks in the country. With over 165 years of experience meeting customers’ financial needs, FNBO considers itself the “great big, small bank,” large enough to provide the expertise and resources necessary to handle any financial need, yet small enough to know customers personally. FNBO encourages employees to be active in our communities through financial support, volunteering and serving on nonprofit boards. What is the most rewarding aspect of your job? The most rewarding aspect of my role is the meaningful impact I can make through financial partnerships. I gain significant fulfillment from enabling businesses to achieve their financial objectives and goals. My position allows me the privilege of building relationships across diverse industries and business scales. The professional connections I develop and the satisfaction of delivering effective financial solutions give me a deep sense that my work matters and is important. Who is one of the most influential figures in your life? My parents served as my primary role models, demonstrating the values they wished to instill through their actions. Their unwavering work ethic was complemented by their allocation of both their time and financial resources within our community. They ingrained in me the fundamental importance of civic contribution — a principle that continues to guide me today. Their consistent example established clear expectations that their children would similarly embrace these values of hard work and community investment. What do you listen to on your morning commute? Nothing. The morning commute is my time to wake up and start preparing for the day. Colorado Banker 14

GOING BEYOND THE DESK TO HEAR THE STORIES OF COLORADO BANKERS Dan Kapustka SVP, Lender Alpine Bank What is the most rewarding aspect of your job? The most rewarding part of my job is getting to meet people from all walks of life and doing so as a representative of a bank that I feel genuinely has their best interests at heart. Knowing that what we do in the day-to-day makes a truly positive impact and seeing that reflected in our customers’ experiences and feedback is truly rewarding. What are you most proud of in your professional life so far? I am most proud to have been an employee of Alpine Bank for close to 10 years, as of January 2026, and to have worked in markets from Telluride and Breckenridge to Fort Collins. It has been quite a decade! What is the most important thing you’ve learned from a career in banking? The most important thing I’ve learned is that trust is one of the most valuable things in business and life, and that integrity will always see you through any uncertainty. What is your favorite movie or book, and why? “The Lord of the Rings” — both the books and the movies are excellent, but the literature especially, due to the epic scale with which Tolkien thought and imagined, and his deep appreciation for the beauty of creation. Who is one of the most influential figures in your life? As a martial artist of 20 years, I would say it is my Sabumnim (instructor), Grandmaster Fuechsel, who has proven a pillar of virtue like few others. He is a great example of strength, discipline and honor and has made a great impact on my life and identity. Christopher McPhail SVP, Commercial Relationship Manager SouthState Bank What are you most proud of in your professional life so far? Early in my career, I was very proud of being commissioned as an Army officer. Now that I have been in banking for 30 years, I am proud of the relationships I have built with customers and teammates. What is the most important thing you’ve learned from a career in banking? The most valuable thing I have learned in my banking career is the importance of keeping your word. Keeping your word and doing what you say is important because it builds trust, credibility and strong relationships. When you consistently follow through on your promises, others see you as reliable and dependable, which fosters respect in personal, professional and financial contexts — like relationship banking, where trust is key to long-term partnerships. What topic could you give a 20-minute presentation on without any preparation? I could give a 20-minute presentation on a 1031 Exchange. The 1031 Exchange is a tax deferral strategy that enables property owners to sell an investment or business property and reinvest the proceeds into another similar property without incurring immediate capital gains taxes. When you were a child, what did you want to be when you grew up? When I was a child, I wanted to become an FBI agent. I’m not sure what drove me in that direction. What’s important to you personally? My family and my faith are the most important things to me. Together, they create stability, community and purpose.

A Framework for AI Opportunity in Financial Institutions AI is no longer a future-facing technology — it’s a present-day differentiator. Across banking, AI is reshaping how financial institutions operate, compete and deliver value. From marketing to compliance, the most promising AI use cases in banking help organizations improve decision-making, reduce operational risk and grow more efficiently. This article explores a sample of opportunities where AI creates the most value today by showing major areas of banking where artificial intelligence (either predictive or generative) can be useful. It also explains how financial institutions can safely begin or accelerate their AI journey and Examples of Current AI Applications Across Banking There are two primary forms of AI driving transformation: predictive AI, which forecasts outcomes and detects patterns, and generative AI, which creates new content from existing data sources. Current applications of artificial intelligence across banking fall into six core areas of opportunity, described below along with examples of how financial institutions are already benefiting from AI on these fronts: 1. Marketing and Sales AI enables personalized engagement and smarter targeting for bank and credit unions’ marketing and sales. ○ Predictive models forecast customer lifetime value. ○ Generative tools create hyper-personalized messaging and offer recommendations. ○ AI segments audiences for cross-sell campaigns and streamlines onboarding. For example, a large national bank reported that personalizing content on its mobile phone apps helped increase engagement rates by 25%. AI Use Cases in Banking A ROADMAP TO SMARTER DECISIONS AND STRONGER OUTCOMES By Sriram Tirunellayi, Director of Applied AI, Abrigo 2. Prospecting and Onboarding AI can reduce friction in early-stage customer interactions for banking services. ○ Automate document verification and identity validation. ○ Prepopulate onboarding forms and streamline KYC workflows. ○ Use chatbots for initial data collection and customer guidance. Costs to verify investment bank clients are down 40% where AI is being deployed across the workflow, according to a large national bank. 3. Credit Risk Underwriting and Review AI enhances accuracy and speed in credit decisions, helping lenders make good decisions quickly. ○ Predictive models analyze cash flow, credit scores, and risk thresholds. ○ Generative AI assists in drafting credit memos and narrative summaries for loan reviews. ○ Real-time data integration supports more holistic, dynamic underwriting. A bank in Texas reduced its commercial loan process for certain loans from two weeks to three to five days using Abrigo’s loan origination for smaller commercial loans, which automates decisioning and features AI-powered loan scoring. And Abrigo’s Loan Review Assistant allows credit risk review staff to evaluate credit quality and document insights in minutes rather than days. 4. Operations Financial institutions can improve back-office efficiency with AI automation. ○ AI routes payments, classifies documents, and extracts insights. ○ Automated financial spreading saves hours of manual entry. ○ Collections strategies are optimized through borrower-level pattern recognition. NVIDIA’s latest survey of financial institutions’ use of AI found that more than 60% of respondents credited AI with helping reduce annual costs by 5% or more. Colorado Banker 16

From marketing to compliance, the most promising AI use cases in banking help organizations improve decision-making, reduce operational risk and grow more efficiently. 5. Customer Support With artificial intelligence, financial institutions boost service quality while scaling support teams. ○ Chatbots answer common questions and reduce call center volume. ○ AI listens to and analyzes call transcripts to coach agents and spot risk indicators. ○ Personalized engagement improves retention and satisfaction. One large national bank reported that AI capabilities reduced calls into the IT service desk by more than 50%. Similar support improvements can benefit clients. 6. Risk and Compliance Both predictive AI and generative AI enable institutions to meet regulatory demands with precision and agility. ○ Alert narratives and ongoing due diligence tasks can be automated. ○ AI helps detect fraud patterns across transactions. ○ Compliance checks are embedded into loan review and audit workflows. A Texas-based bank using Abrigo’s AI-driven check fraud detection to identify fraudulent checks before they are cashed found that within just two months, the bank identified and prevented over $377,000 in fraudulent check transactions. Altogether, these banking AI use cases drive measurable business benefits: faster loan decisions, higher operational efficiency, improved accuracy and reduced churn. How To Prioritize Projects When Implementing AI The range of available AI use cases in banking can feel overwhelming. But successful institutions typically begin with focused, high-impact projects that align with their data readiness and staffing capacity. To start: • Partner with trusted providers who understand regulatory frameworks and can integrate AI into existing systems. Abrigo prioritizes data security and privacy by developing AI technology with stringent data protection measures, using encrypted data environments and robust access controls to secure client data. Make sure that any vendors you choose have similar controls in place. You may choose to consider vendors that specifically work with financial institutions so that you can be sure their solutions fully comply with banking regulations. Vendors should be continuously monitoring regulatory landscapes to ensure their solutions meet legal and regulatory requirements. • Experiment with pilot programs such as automating credit memos or onboarding flows to introduce AI one process at a time. Identify and prioritize low-risk, high-value pilot projects, and make sure that leaders from across the organization are united when assessing the feasibility, risks and intended outputs before starting a project. Once an AI tool is adopted, conduct ROI analysis regularly to make sure the new process is working as intended. • Educate your team on what AI is and what it isn’t to build buy-in across departments. While AI automates certain tasks, it primarily augments the capabilities of banking staff by allowing them to focus on more complex and strategic activities. Done well, this enhances job satisfaction and productivity. Make sure staff are well-trained and emphasize that a human-in-the-loop is always necessary to keep AI processes running smoothly. From AI’s Value Potential to AI’s Value Creation Long-term AI success requires thoughtful governance, clean data inputs and strategic planning. With the right use cases and the right partners, banks and credit unions can unlock the true value of AI: accelerating growth, reducing risk and improving every interaction. 17 Colorado Banker

The Hidden Growth Tool in Your Loan Portfolio HOW TO SPOT SBA 504 OPPORTUNITIES BEFORE YOUR COMPETITORS DO By B:Side Capital For lenders, the SBA 504 program isn’t just another product to place on the shelf. It’s a lever for deeper relationships and stronger portfolios. The most successful institutions are the ones that anticipate borrower needs before the client even recognizes the opportunity, positioning themselves as both advisor and capital partner. With this in mind, how will you know when you’ve come across a potential SBA 504 project? We’ve compiled a list of quick tidbits on what to look out for. • How to Spot an SBA 504 Borrower ○ Owner-occupied commercial real estate at least 51% occupied by the borrower’s business (60% for new construction). ○ Businesses looking for long-term, fixed-rate financing to stabilize cash flow. ○ Owners wanting to preserve working capital with a low down payment (as little as 10%). • More Than Just New Purchases. Think Refinance. ○ The SBA 504 Refinance with Expansion Program allows for refinancing existing qualified commercial real estate or heavy equipment debt while funding the new expansion. ○ Expansions (including bank, closing and professional fees) must be at least 50% of the total project costs and can include building additions, facility upgrades or new equipment purchases. ○ Project Example: A manufacturer can refinance their current owner-occupied building loan and add a new production line in one transaction. • 504 Refinance Without Expansion: Property Refinance + Cash Out ○ Allows refinancing of existing qualified commercial real estate debt without a requirement for expansion. » Borrowers can consolidate debt from multiple lenders into a single long-term fixedrate package. » Cash Out Available: Give your borrower the ability to use property equity to pay off business credit cards, lines of credit or cover up to 18 months of operating expenses, all while locking in a stable long-term rate. Financing is available up to 90% loan-to-value, based on a current appraisal. » Project Example: A medical practice can refinance its current building loan, pay off its stale line of credit and access additional working capital for growth initiatives, all in one SBA 504 transaction. Colorado Banker 18

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