Pub 1 2023 Issue 1


Contents 4 President’s Message Advocating for Community Banks By Kathy Swenson, CBW President and CEO 6 LEAD FWD 2023 CBW — Banking on the Leaders of Tomorrow 9 The Myth, Lure and Reality of AI By Charles E. Potts, Executive Vice President and Chief Innovation Officer, ICBA 10 Home Equity Line of Credit Scams By Travelers 12 Value Added High Baseline Yields Accompany Surprisingly Wide Spreads By Jim Reber, President and CEO, ICBA Securities 14 Securing Your Data Advice From an Award‑Winning Cybersecurity Team By BHG Bank Network 16 Checks & Balances ICBA Successfully Defends Against FDIC Special Assessment By Stephen Keen 18 Welcome New CBW Associate Members 20 2023 CBW Membership Annual Convention & Trade Show SUMMER 2023 © 2023 Community Bankers of Washington | The newsLINK Group, LLC. All rights reserved. Currency is published by The newsLINK Group, LLC for CBW 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 Community Bankers of Washington, 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. Currency is a collective work, and as such, some articles are submitted by authors who are independent of Community Bankers of Washington. While Currency 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. OFFICERS CHAIRMAN Tony George Kitsap Bank CHAIRMAN ELECT John Manolides Commencement Bank VICE CHAIRMAN Jim Arneson Community First Bank SECRETARY/TREASURER Leanne Antonio Yakima Federal Savings PAST CHAIRMAN Andy Hunter SaviBank ICBA STATE DIRECTOR Denise Portmann Bank of the Pacific PRESIDENT/CEO Kathy Swenson DIRECTORS Dwayne Aberle Security State Bank Joe Adams 1st Security Bank of Washington Dean Brydon Timberland Bank Josh Deck Olympia Federal Savings Greg Deckard State Bank Northwest Rick Darrow Liberty Bank Russ Keithley Coastal Community Bank Kevin Lycklama Riverview Bank Jolene Riggs Baker Boyer Bank Neil Zick Twin City Bank (360) 754-5138 CURRENCY | 3


Welcome to the first issue of Currency — CBW’s re‑branded quarterly magazine. Our purpose is to highlight the wealth of knowledge, resources and opportunities provided by and for Community Bankers of Washington’s members. CBW’s raison d’etre is to advocate for Washington’s community banks and only for community banks. You cannot find this singular mission for community banks from any other organization in our state. We partner with ICBA to advocate for community banks on the federal level in addition to our state efforts. In this interesting year for banking, we have been busy. CBW worked closely with other stakeholders on several critical issues, most notably legislation to protect prior liens and legislation to redefine digital asset services (DAS) subject to taxation. HB 1240, protecting the rights of first lien holders, was signed into law in May. Prior to the next session, we will review the case for also protecting junior lien holders. We’re already discussing the DAS issue with the WA Department of Revenue and will decide on further legislative action pending the outcome of those meetings. The cover photo of this issue of Currency features the CBW delegates who visited with nine of our twelve congressional delegates in Washington, D.C., as part of ICBA’s Capital Summit. Just like community banks do with their customers, establishing a relationship with your state and federal elected officials fosters a better understanding of your business and your community. CBW worked in coordination with ICBA and community banking associations from other states to curtail and correct misinformation about community banks after the failures of large regional banks this spring. In the last six months, we’ve joined with the same group to send letters to Congress and various agencies to: • Oppose the credit card competition act • Support Access to Credit for our Rural Economy act (ACRE) • Exempt community banks from FDIC special assessment • Support RES. 50 to nullify section 1071 of the CFPB’s data collection rule • Support TRID Sandbox proposal • Support funding for new farm bill • Support Congressional committee hearings on NCUA oversight I encourage you to develop a relationship with your state and federal elected officials to add your voice as a voter, employer and community business, supporting these and other important legislative issues. A phone call or a short meeting can establish you as their go-to expert on banking matters. In the words of Edmund Burke, “Nobody made a greater mistake than he who did nothing because he could only do a little.” CURRENCY | 5

CBW — Banking on the Leaders of Tomorrow The future of our industry hinges on tomorrow’s community bank leaders. Each year, the Community Bankers of Washington (CBW) awards one NextGen Scholarship, and two additional applicants receive a John Collins Leadership Award to ensure that future industry leaders are being prepared for the jobs of tomorrow. The scholarship and awards provide a pathway to help prospective bank leaders achieve their career aspirations, refine business acumen and seek innovative solutions to the challenges facing community banks. These deserving recipients have the opportunity to attend ICBA’s LEAD FWD Summit, which provides training and insights rooted in leadership development, technical banking, advocacy and a multitude of hot-topic banking issues. CBW is excited to help you nurture the top talent at your bank! 6 | CURRENCY

Requirements To Qualify for Scholarship/ Award and To Receive Funds • Submit application by Aug. 8, 2023 • Must be a community banker employed at a community bank that is a member of both CBW and ICBA at the time the LEAD FWD Summit takes place • Must complete a post-event survey before receiving funds • NextGen Scholarship winner must submit receipts for travel (airfare, hotel, etc.) to qualify for reimbursement. NextGen Scholarship Includes: Complimentary registration (and all benefits conveyed with conference registration) to participate in the ICBA LEAD FWD Summit, Sept. 18-19, 2023, in Kansas City, Missouri. Plus, up to $1,350 in travel costs. John Collins Leadership Award Includes: 50% discount on registration (and all benefits conveyed with conference registration) to participate in the ICBA LEAD FWD Summit, Sept. 18-19, 2023, in Kansas City, Missouri. Plus, $1,000 to be paid to the sponsoring bank to help cover costs. DUE BY AUGUST 8. SUBMIT YOUR APPLICATION TODAY! nextgen-scholarship-2023.html Here is what past attendees have to say … ICBA’s LEAD FWD Summit was a great opportunity to learn what being a community banker is all about. It was an honor to receive CBW’s NextGen Scholarship and to be able to attend an event where I gained valuable leadership skills, participated in strategic brainstorming and discussions surrounding several current banking issues, and had the opportunity to connect and foster lasting relationships with other community bankers from around the country. — Ryan Deckard, AVP/Commercial Relationship Officer, State Bank Northwest Attending the ICBA leadership conference through the NextGen Scholarship was a game-changing opportunity for me. Without this support, I would not have had the opportunity to attend the event. By seizing this chance, I was able to enhance my leadership abilities and establish lasting connections with fellow professionals in the banking industry, many of whom I still maintain contact with today. These newfound skills and relationships have not only propelled my personal growth but have also made me a more valuable asset to my organization. The conference boasted an impressive lineup of speakers who delivered insightful talks on introspection, leadership and various pertinent banking subjects. Whether it was the captivating keynote address or the engaging breakout sessions, every aspect of the conference provided me with valuable knowledge and fresh perspectives. The broad range of topics and ideas that were shared left a lasting impact on me. One of the conference’s focal points was exploring different facets of leadership, including effective employee recruitment and retention, as well as fostering a positive organizational culture that embraces growth and individuality. The sessions delved into practical strategies for nurturing professional development and urged us to devise plans within our respective institutions to foster growth and innovation. Overall, the NextGen Scholarship enabled me to access a wealth of knowledge and networking opportunities at the conference, empowering me to refine my leadership skills and contribute more effectively to my organization’s success. — Karah Cowan, Director of Digital Banking and Deposit Operations, Community First Bank CURRENCY | 7

INNOVATION STATION The Myth, Lure and Reality of AI BY CHARLES E. POTTS, EXECUTIVE VICE PRESIDENT AND CHIEF INNOVATION OFFICER, ICBA When it comes to artificial intelligence (AI), as the great Wizard of Oz once said, “Pay no attention to the man behind the curtain.” There’s been a lot of hype about AI and its offshoots like ChatGPT, and while it’s an exciting technology, it’s not new. The first patents on AI algorithms came out more than 30 years ago, and they have been baked into many of the solutions community banks are already using for back-office operations, risk and fraud monitoring and much more. For instance, Paycheck Protection Program (PPP) solutions were fueled by versions of AI. Credit reporting details are unearthed by AI technology. Fraud anomaly flagging runs algorithms, the basis of AI, to detect out-of-character transactions. So, what’s with today’s heightened attention on this technology? The answer is simple: AI has become more advanced, but in a cost-effective manner, making it available to the masses. Businesses and consumers alike have newfound access, and that breeds broader awareness and interest. Fortunately, this level of attention brings with it new potential. Consider current ThinkTECH Accelerator participant Micronotes, Inc., a cloud-based marketing automation solution that addresses loan, deposit and retention opportunities using data. The solution connects banking and credit information to the customer, helping ensure the right product is getting provisioned in the right way. It’s an internal use of AI that culls banks’ data to identify target solutions for their customers. And that’s just one use of this technology. AI’S FUTURE FOCUS What AI really does is create a path for community banks to be more future-focused. Banks are asking how they can do more with less, and now is the time to focus on innovation to answer that question. In today’s landscape, banks need to identify what they can be doing to prepare for the next economic cycle, when market conditions swing back, and they can return to a more proactive lending stance. By keeping a keen eye toward the future, banks can explore the technological investments they can make now so that when it’s time to turn up the volume, they can do so without adding headcount. Today, they can be focusing on backoffice and operational efficiencies that replace redundant tasks and set up new potential for the future. And AI has a firm hand in that evolution; it serves as the intersection of technology and future needs and capabilities. So, as you read this month’s issue, do it with an eye toward if and how AI can offer a foundation for your next steps, keeping in mind that it is not a silver bullet to be feared or exalted. AI is simply a technology to be leveraged in support of strategy because, after all, it is just a version of the man behind the curtain. Charles E. Potts is ICBA’s Executive Vice President and Chief Innovation Officer. CURRENCY | 9

Home Equity Line of Credit Scams BY TRAVELERS Home Equity Line of Credit (HELOC) scams continue to be a costly and challenging issue for financial institutions. Wire transfer fraud can easily reach millions of dollars, and with advancements in technology, such as online databases for county clerk records, online banking and online title searching, data commonly used by financial institutions to verify customer identity for wire transactions is routinely and easily compromised. Several financial institutions have fallen victim to losses arising out of wire transfer and check forgery schemes targeting HELOC accounts and have taken action to mitigate the risk of future loss experience. Institutions that place a high value on their customer service and customer confidence in the institution’s security against wire transfer fraud have implemented risk mitigation upgrades to their operations to help solidify customer confidence. According to Travelers, the following steps are initiatives that can help to avoid, or at least significantly reduce, losses arising out of HELOC fraud scams: • Place greater emphasis on getting full account numbers from callers; • Phrase verification questions so that the caller is providing the information, rather than simply confirming what the financial institution has on file; • Remove items from the list of authentication options (such as mother’s maiden name and date of birth) that have become “public information” through social media websites and venues; • Train employees who field calls to verify authentication items in a specific order and not skip to other items if the caller cannot verify the requested information; • Train personnel with an updated full fraud-awareness module to help employees identify warning signs of fraud; • Encourage customers to set up PIN numbers if the automated phone system allows it; • Update customer account files with driver’s license numbers, if not copies of the entire driver’s license (or other government-issued ID if there is no driver’s license); • Utilize a mandatory callback procedure for all customernot-present wire transfer requests; • Use a password to authenticate customers rather than commonly compromised information and only allow in-person modification of passwords and key account information; 10 | CURRENCY

• Consider requiring full balance transfers (or transfers up to a certain percentage of the available funds) to be made in person while placing a reasonable monetary limit (or percentage limit) on customer-not-present wire transfer requests; • Establish a reporting procedure that refers all suspicious wire transfer requests to a higher level of authority for confirmation/processing; • Require a dual telephone confirmation procedure where the financial institution calls the home phone of the customer as well as an alternate number, such as a mobile phone or work phone; • Establish an automatic two-day holding pattern anytime a request is made to initiate a wire transfer from a HELOC account to a foreign bank account within which time the financial institution ensures accurate verification and deters fraudsters seeking immediate processing; • Verify change of address or phone number requests with a call to the customer’s phone number on file; • Customize specific and unique verification questions and procedures with an account holder/customer that can only be modified in person; and • Consider performing a verification call back when a purported customer calls the bank to set up online banking for the first time. Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers. That’s why financial institutions must utilize robust authentication procedures to protect their customers — and themselves — from wire transfer fraud. This includes greater awareness, updated and vigilant policies, procedures and training, and implementing imaginative and unique verification procedures to help reduce the risk of loss arising out of wire transfer fraud targeting HELOC accounts. Travelers is committed to managing and mitigating risks and exposures and does so backed by financial stability and a dedicated team — from underwriters to claim professionals — whose mission is to insure and protect a company’s assets. For more information, visit Technology has made it easier than ever for bad actors to obtain data that is commonly used by financial institutions to verify the identity of their customers. CURRENCY | 11

If your responsibilities include your community bank’s bond portfolio, you’ve been confounded by several elements of its performance in the last 18 months. To the extent your portfolio has mortgage-backed securities (MBS) and government agency bonds, and the clear majority of all bonds owned by banks are in these two categories, they’ve certainly lost value since 2022. It is easy enough to put the “blame” on the Fed’s Federal Open Market Committee (FOMC), which as of this writing has taken overnight rates up fully 500 basis points (5%) since March of last year. However, something else has occurred in period that’s contributed to the decline in bond prices: Yield spreads have actually widened during this time frame, which is highly unusual for a rising rate scenario. It has aggravated the market losses in community bank portfolios, which stood at around 8% as of June 30. About one-fifth of the market losses can be attributed to spread widening. What’s going on here? Maybe it’s time to review why spreads widen and tighten, and why the various bond market sectors behave differently. If we can conclude with the notion that there are some opportunities for long-term benefit for your bank, all the better. SPREAD BASICS First, a refresher on “spreads” in this context. It is the incremental yield for a collection of bonds, over and above VALUE ADDED High Baseline Yields Accompany Surprisingly Wide Spreads BY JIM REBER, PRESIDENT AND CEO, ICBA SECURITIES the benchmarks. The benchmarks are comparable maturity Treasuries, which are presumed to be risk-free. (We don’t have time here to revisit the recent elaborate game of chicken over the debt ceiling. Notice I said “elaborate” and not “elegant.”) Incremental spreads on bonds will tend to widen as rates fall, as lower yields accompany an economy that is losing momentum. This slowdown brings with it a higher likelihood of debt service problems, so lenders, including bond investors, ask for additional yield protection. In 2023, there’s no slowdown, yet, and so the FOMC has now hiked overnight rates to their highest levels in 15 years in its quest to get inflation under control. And still, spreads are wider in virtually all bond sectors, so something different is in play. One factor is the Fed’s posturing related to its own balance sheet. Currently, the Fed is removing $95 billion per month from its own Treasury inventory. It has reserved the right to actually shed some of its $2.5 trillion MBS portfolio, but hasn’t yet. Another difference this time around is the well-documented decline in excess liquidity on bank balance sheets, which I hasten to add is not the same thing as deposit runoff. Globally, 12 | CURRENCY

the banking sector has gone from too much uninvested cash, to probably about right. Again, this has removed some demand from the fixed-income markets as the banking sector has purchased very few bonds in 2023. SOME SECTORS ARE NOT LIKE OTHERS The callable agency market gives us a good example of how spreads are historically wide. Way back in 2021 (hyperbole), a bond that matured in three years and could be called in a year (“3/1 callable” in bond-speak) would have had a stated rate of interest of around 0.50%, which was about 10 measly basis points (0.10%) over the curve. Today, the “coupon” for the same bond would be around 5.50%, which has a full 1% spread over the three-year Treasury. Similarly, popular mortgage securities have improved yields and spreads today over just a few months ago. A staple of community bank portfolios is a 15-year MBS issued by Fannie Mae or Freddie Mac. A “current coupon” pool has right at a 5% yield to maturity, again around 1% over the Treasury curve. A year ago? A current coupon would have been about 3.5%, and its spread around half of today’s. It’s time to speak into the microphone and state that things can get worse before they get better. ACT NOW; THANK YOU It’s time to speak into the microphone and state that things can get worse before they get better. Which is to say, Treasury yields, and spreads, can continue to gap higher and wider before coming back in line. The Fed sure doesn’t sound like it’s finished with tightening, and even though banks are making use of wholesale funding sources to maintain liquidity levels, banks aren’t likely to become deluged with excess cash in the near future. Nonetheless, we have a baseline of yields (Treasury curve) that is at a 15-year high, coupled with spreads that are nearly unprecedented for this stage of the rate cycle. This causes me to suggest that your portfolio will thank you later for bonds you purchase in mid-2023. If more yield is considered good, then it’s summertime, and the livin’ is easy. Jim Reber is President and CEO of ICBA Securities, ICBA’s institutional, fixed‑income broker-dealer for community banks. He can be reached at CURRENCY | 13

SECURING YOUR DATA Technology continues to insinuate itself into almost every facet of our daily lives, whether it is personal or work-related. As a result, protecting data privacy has become increasingly more relevant to every consumer and business. In 2022, 422 million people were affected by data breaches at U.S. companies with an average of 4.8 breaches per day.1 Stolen data included bank account numbers, medical histories, Social Security numbers and more. Personal data is continuously being collected, shared or sold, so it is crucial that everyone understands how to protect it. In today’s world, it is incumbent upon companies to ensure they have the information security protocols in place to protect customer data and electronic assets from the growing global threat of hackers. This requires a keen focus on increasing the adoption of new technological innovations and following industry best practices in the evolving world of cybersecurity. Companies with an established history of successfully safeguarding electronic data often share similar characteristics, such as: • A significant investment in people and technological resources • Executive leadership that has demonstrated its mission to make information security and data privacy top priorities • Next-generation firewall and encryption technology to protect internet connections and Wi-Fi networks • Best-in-class security software installed and updated automatically • Industry certifications and acknowledgments that appropriate security controls are in place to protect the confidentiality, integrity and availability of all data assets BHG Financial is a noteworthy financial services provider, boasting a team of seasoned cybersecurity professionals who have been recognized for their outstanding contributions to the industry. In this article, we will be sharing insights from BHG Financial’s cybersecurity experts on simple yet critical tasks that businesses should not overlook. In acknowledgment of its dedication to cybersecurity, BHG and its Information Security Team recently received several industry accolades. First, it was honored with a 2022 Fortress Cyber Security Award for organizational excellence.2 In addition, the company has been certified SOC 2® Type 2 compliant in accordance with standards set forth Advice From an Award-Winning Cybersecurity Team BY BHG BANK NETWORK 14 | CURRENCY

by the American Institute of Certified Public Accountants. SOC for service organizations is a compliance standard that demonstrates that BHG Financial is safeguarding customer data throughout its services and is meeting standards for strong operational effectiveness. SECURITY TIPS TO PROTECT YOUR DATA FROM BHG FINANCIALS’ SECURITY TEAM In the spirit of driving awareness about the importance of being cyber-aware, and helping you protect the integrity of your data, here are some simple tips not to be overlooked: • Avoid uploading sensitive or confidential data (personal or customer account information, Social Security numbers, etc.). If you must, all information should only be uploaded to a trusted, secure source or database. • Be aware of any suspicious emails and do not click on unfamiliar embedded links. Be especially wary if an email contains misspelled words within the body and/or subject line of the message. Other suspicious indicators include unfamiliar email domains or enticements to act or respond immediately. Report these emails to your organization’s IT support team right away. • Lock your screen when you are away from your desk to prevent others from accessing sensitive information. • Beware of public Wi-Fi. It can expose your data to scammers monitoring internet activity. It also greatly increases the risk of malware being transferred to your devices. If you must access a public Wi-Fi network, use a virtual private network (VPN) to add a helpful layer of security. • Find out if your personal information has been targeted in a data breach. It is quick and quite easy to do. Simply enter your email or phone number at The system will respond almost immediately, detailing when and where your data was breached. • Before disposing of old IT equipment, ensure no personal data remains on the system. Consider hiring a specialist to wipe the data from the device or use deletion software such as BitRaser File Eraser or File Shredder. YOUR ROLE IN DATA PRIVACY Cybersecurity is everyone’s business. With a little discipline and practice, protecting the integrity of your data can become second nature. Nobody wants to be the person who accidentally downloads malware onto their company’s systems, or who leaves their online banking credentials vulnerable to external threats. Following and regularly repeating a few simple security protocols is well worth the time to remain cyber-safe at home and at the office. 1. 2. With a little discipline and practice, protecting the integrity of your data can become second nature. CURRENCY | 15

Checks & Balances ICBA Successfully Defends Against FDIC Special Assessment BY STEPHEN KEEN, ICBA It’s not every day a financial crisis unfolds, and it’s certainly not something community bankers expect while attending the industry’s leading convention, ICBA LIVE. But that’s exactly what happened in the aftermath of the failure of Silicon Valley Bank (SVB) and Signature Bank in March. It set the stage for a successful fight against the effort to force community banks to pay the price for the mismanagement of much larger, riskier financial institutions. ICBA’s national convention in Honolulu was already guaranteed to be one of the most memorable community banking events of the year. Community bankers from across the country arrived with plans to learn from industry experts, network with peers and explore products and services. But as news of the failure of Signature Bank sparked fears of contagion, community bank leaders found themselves taking on a new task: calming outside fears and protecting their banks from a special assessment to restore the Federal Deposit Insurance Corporation (FDIC) deposit insurance fund (DIF) after the second and third largest bank failures in U.S. history. A typical crisis would require conference calls to coordinate logistics. With the majority of the nation’s community bankers gathered in one hotel, they were able to confer and act in real-time. REASSURANCE AND DIFFERENTIATION ICBA’s government affairs team quickly sprang into action, engaging in emergency meetings with bankers, staff, lobbyists and regulators. Recognizing that a special FDIC assessment was imminent, ICBA asserted that community banks should not have to pay for the sins of the largest banks. ICBA argued As soon as the news broke about Silicon Valley Bank and Signature Bank, ICBA sprang into action, shielding community banks from paying for the failures of the megabanks. 16 | CURRENCY

to bear the costs of replenishing the DIF. ICBA thanked the White House for its support and sent a letter to the FDIC urging that it use discretion. “Community banks and their customers shouldn’t have to pay for the miscalculations and speculative practices of large financial institutions like SVB and Signature,” ICBA president and CEO Rebeca Romero Rainey wrote. “If any assessment increase is warranted, it should be imposed on the institutions that pose the most risk to the DIF—not community banks.” ICBA claimed victory for community banks on May 11 when the FDIC proposed to fully exempt community banks under $5 billion in assets from the assessment. ICBA commended the FDIC for the proposal, which shields the majority of ICBA members. ICBA’s efforts to protect community banks from paying for the mistakes of larger, riskier banks highlights the value of a trade association that exclusively represents the interests of community banks. ICBA acted swiftly with a clear and decisive message that recognized the likelihood of a special assessment and the potential impact it would have on community banks. It’s a powerful reminder of the power of collective action and effective advocacy play in safeguarding the interests of community banks. Stephen Keen is Vice President of Congressional Relations for ICBA. He can be reached at that the responsible management of community banks should not be overshadowed by the poor practices of the big players — the only national trade association to advocate this position. The phone calls from congressional staff, Senate offices, committee staff and leadership offices began immediately after Signature Bank collapsed. Having long relied on ICBA for insights into banking, the economy and Main Street, they wanted to know if community banks would remain safe and sound. ICBA staff and bankers reassured that community banks remained strong, with no run on deposits. They also went on the offense to gain allies in the fight against a potential special assessment levied against community banks whose prudent stewardship stood in contrast with the risky behavior that led to the big-bank failures. THE FIGHT CONTINUES The effort continued after community bankers flew home with grassroots efforts playing a key role. Community bankers maintain excellent relationships with both regulators and legislators. Leveraging these relationships while using tools such as the ICBA Grassroots Action Center ( to send messages and engaging with the media allowed community bankers to effectively share their message and ensure it was heard by those who needed to hear it. The state associations also played a crucial role in supporting ICBA’s efforts. Their involvement added a local voice that amplified ICBA’s lobbying. ICBA’s message was heard. In Senate and House hearings in late March, members of Congress repeatedly asked FDIC chairman Martin Gruenberg about the possibility of an exemption for community banks. Noting that the FDIC can tailor the special assessment as it sees fit, Gruenberg said the FDIC is “keenly sensitive to potential impact on community banks.” On March 30, President Biden released a statement calling on the FDIC to ensure community banks would not be required “Community banks and their customers shouldn’t have to pay for the miscalculations and speculative practices of large financial institutions like SVB and Signature.” — Rebeca Romero Rainey, ICBA CURRENCY | 17

WELCOME New CBW Associate Members BUILDINGMETRIX Scott Elliott (206) 273-7141 BuildingMetrix knows property. For over a century, our parent company, WSRB, has provided insurance carriers with powerful data, enabling them to evaluate risk effectively and efficiently. BuildingMetrix, a wholly owned WSRB company, aims to provide that same level of expertise to industries outside insurance. Our proprietary algorithm aggregates and analyzes varied data sources, delivering a real-time data feed of applicable information directly relating to the clients’ request. That means lightning-fast risk concentration and exposure analysis, helping you make more informed decisions in a fraction of the time. The insurance industry has benefited from our tools; banking can as well. BMX tools facilitate the identification of catastrophic risk in your portfolio, illuminating saturation levels geospatially. Knowing is half the battle. The insights we provide can help you adopt strategies to improve your bottom line. OTTESON SHAPIRO, LLC Christian Otteson (720) 488-5425 The attorneys of Otteson Shapiro are nationally recognized for understanding our clients’ businesses, in-depth knowledge of the law, responsiveness to client needs and cost-effective representation. In our practices relating to the financial services industry, we assist with federal and state regulatory issues, corporate governance, mergers and acquisitions, capital structuring, financial and lending transactions, litigation and dispute resolution, anti-money laundering, compliance solutions and vendor management. In the area of mergers and acquisitions, our transactional attorneys are adept at successfully navigating the big-picture issues at stake in a transaction and structuring transactions to achieve optimal results in a timely fashion. The firm is proud to be consistently included in the annual “Best Law Firms” list from U.S. News & World Report and Best Lawyers,® including in the most recent 2021 edition. 18 | CURRENCY

INNOVATIVE HOME LOANS Michael Standard (360) 690-5278 Do you know seniors who need more cash flow today? Why not mention the HECM loan to them and see if it’s a good fit? All they need is over 50% equity on their home. The HECM loan is the New Reverse Mortgage by the FHA, and it is now a Federally Insured loan. Now the heirs inherit the home, and they have 12 months to sell the home and keep the equity. What to look for in your senior clients: • Over 50% equity in their primary residence • Over 62 years of age • Home is not in a trailer park • They want to stay in their home • They need more cashflow or no mortgage payment BANKTECH VENTURES Sarah Hovde (847) 707-2863 BankTech Ventures — Our name says it all. We are a strategic venture capital fund focused solely on investing in bankenabling early-stage tech companies. Our General Partners are bankers themselves (including your CBW peer, Coastal Community Bank), and our full-time team is deeply entrenched in community banking. We make sure the companies we invest in work effectively with our Limited Partner banks to deliver maximum value and impact. The ecosystem we’ve developed is our greatest strength, and that is why 100+ leading community banks have joined us, plus the leading tech entrepreneurs want to work with us. To date, we’ve invested in 14 companies and have made hundreds of introductions between our fintech companies and limited partner banks, creating new synergistic vendor relationships. And this is just 1.5 years into the Fund, so there is a lot more activity to come! THE PLATEAU GROUP, INC. Greg Janssen (800) 752-8328 The Plateau Group is a Community Bank focused company specializing in Debt Cancellation and Credit Insurance programs to help you drive profitability in lending. The Plateau Group is an A- Excellent Rated by AM Best and endorsed business partner of the ICBA. We have the personalized service and expertise to help you drive fee income strategies. At Plateau, we market, administer and reinsure products that meet the needs of our customers while providing the highest levels of service and courtesy in the business. At Plateau, we strive to be “Your First Choice.” SUNCADIA RESORT Michele Oliveri (206) 697-0015 With more than 6,000 acres of forested mountain landscape, Suncadia’s wealth of year-round activities makes for a perfect escape. A picturesque resort with 40+ miles of hiking and biking trails, three championship golf courses, local wining and dining and world-class spa treatments. The perfect place to get the most out of your group event or meeting. A place that puts the fun back into meetings and naturally encourages cooperation, team building and inspiration. CORE10 Laura Day Core10 is a leading U.S.-based provider of banking and lending products and financial technology services. We’re all about being the trusted, easy button for banking innovation and transformation. We do this by offering a range of solutions including Mesh, a middleware layer to connect a bank’s technology partners to its core and streamline operations, and Accrue, an omnichannel digital lending and deposit account opening solution. Additionally, we extend our expertise through professional services, encompassing custom API and software product development. CURRENCY | 19

2023 CBW MEMBERSHIP Annual Convention & Trade Show SEPTEMBER 13-15 Northern Quest Resort Spokane, WA REGISTER TODAY! cbw-2023-convention.html 360-754-5138 20 | CURRENCY

CONVENTION AGENDA TUESDAY SEPTEMBER 12 4:00 PM Pre-Convention Cocktail Reception and Whiskey Tasting Experience Dinner on your own WEDNESDAY SEPTEMBER 13 8:00 AM Golf Tournament at Kalispel Golf Club 5:00 PM-6:30 PM Welcome Reception & Trade Show 7:30 PM VIP Tickets Counting Crows Concert (open to bankers & concert sponsors) or Top Golf Swing Event in EPIC Lounge THURSDAY SEPTEMBER 14 8:00 AM-11:45 AM ICBA Working for Community Banks Brad Bolton, ICBA Past Chairman In Chaos Lies Opportunity: Investing Throughout the Interest Rate Cycle Michael Benedict, Stifel Financial DFI Update Roberta Hollinshead Communicating During a Crisis Patrick Dix, Shazam The Naked Truth of Lease Accounting Adoption & Painful Lessons from the SVB Failure Roger Jones, Hauser Jones & Sas 12:00 PM-1:30 PM Lunch featuring Sen. Mark Mullet, Mullet for Governor Campaign 1:30 PM-4:00 PM Protecting Your Bank, Board & Employees in 2023’s Tech‑focused Climate Justin Corey, NFP FinTech Partnership Panel — What We Wish We Knew Pam Kaur, Moderator 5:30 PM-7:00 PM Trade Show & Silent Auction 7:00 PM Dinner Evening on your own FRIDAY SEPTEMBER 15 8:00 AM CBW Annual Meeting & Election of 2023/24 Board 8:30 AM State Legislative Update Brad Tower, Nichols Group 9:30 AM FDIC Update Paul Worthing, FDIC 10:30 AM Liar Liar Pants on Fire Traci Brown, Fraud Busting Body Language Expert 12:00 PM Adjourn CURRENCY | 21


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Join us at The Oxford Hotel for a one-day in-depth business meeting. Gain valuable insights on how BHG Financial can help Community Bankers thrive through the current financial environment by leveraging the BHG Loan Purchase Program and our reliable suite of innovative solutions. Keith Gruebele EVP, Institutional Relationships 954.263.6399 Meeting with BHG Executives – Denver, CO REGISTER TODAY AUGUST 14–15, 2023 Community Bankers of Washington 325 Washington Ave S #67 Kent, WA 98032 This magazine is designed and published by The newsLINK Group, LLC | 855.747.4003