OVER A CENTURY: BUILDING BETTER BANKS — Helping Coloradans Realize Dreams May/June Colorado Bankers Association Announces NEW LEADERSHIP APPOINTMENTS for 2025-26
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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 Michelle Provan Director of Communications Megan Carruth Executive Assistant Margie Mellenbruch Bookkeeper* Melanie Layton Lobbyist* Garin Vorthmann Lobbyist* Andrew Wood 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 6 16 2024-2025 Issue 6 4 PRESIDENT’S MESSAGE 2025 Legislative Session Recap By Jenifer Waller, President & CEO, CBA 6 2025 Women in Banking Conference Recap 8 What Will Happen to FinCEN’s Priorities? How Financial Institutions Should Prepare Under the New Administration By Terri Luttrell, CAMS-Audit, CFCS, Abrigo 10 Bridging Colorado’s Financial Talent Gap The Watson Institute Career Accelerator Fellowship 12 CBA Centerpoint Going Beyond the Desk to Hear the Stories of Colorado Bankers 14 CRA Made Easy Earning Credit While “Doing Good” via Innovative New Program By IntraFi 16 Colorado Bankers Association Announces New Leadership Appointments for 2025-26 18 7(a) Changes in SOP 50 10 8 What’s New and How It Impacts You By B:Side Capital 19 A Layered Approach to ATM Security By Levi Daily, CTO, Cook Solutions Group 20 Year of the Credit Card Why Credit Cards Are Driving Consumers To Open New Accounts in 2025 and How You Can Capture New Business By Corey Wrinn, Managing Director, Rivel Banking Research 22 Carrots Over Sticks Building Trust and Boosting Security By Chris Tuzeneu, CivITas Bank Solutions 3 Colorado Banker
2025 Legislative Session Recap By Jenifer Waller, President & CEO, CBA PRESIDENT’S MESSAGE CBA had significant wins during the 2025 legislative session, and unfortunately, reforming the artificial intelligence (AI) regulation bill (SB24-205) was not one of them. CBA defeated an attempt by credit unions to have the ability to purchase banks, and we defeated a bill to restrict interchange and prohibit interchange from being charged on the tax or tip portion of any transaction. The lobby team brought the same fierce advocacy to the AI fight, but the AI fight isn’t just about banking; it impacts every business in the state. The 2024 AI bill was introduced late in the session. The intent of the bill is to prevent algorithmic discrimination. All business groups, including CBA, were asked not to amend the bill because the governor was going to veto the bill. The governor did not veto the 2024 bill but promised that the bill would be amended/corrected in the 2025 legislative session. During the interim, a task force met to discuss revisions to the bill. The task force met even during the early months of the session, and a subcommittee of the task force worked to craft SB25-318, which was finally introduced late in the session. The 2024 bill required both developers and deployers (all banks are deployers) to test and audit AI to ensure there is no algorithmic discrimination. The bill gives the attorney general authority to enforce the law. Customers must be notified of AI use and given the opportunity to opt-out. Violations of the law are a deceptive trade practice. The law goes into effect in February of 2026. The bill, introduced in 2025, extended the effective date to January 2027. It had significant changes in definitions and notification requirements. For example, a consequential decision was amended to include denial of goods or services. This change would have required that every debit card, credit card and checking account transaction where AI is used for fraud prevention be subject to the law — requiring a notice for every transaction. And offering customers the opportunity to not only appeal but to opt out. We lobbied for a Gramm Leach Bliley (GLB) exemption, exempting entities that are subject to the GLB. Every activity a bank takes is examined to ensure there is no discrimination. It should not matter what tool we use — the end product must be discrimination-free. Issues we lobbied for include: • GLB exemption. • Exempting AI used for fraud prevention. • AI used for regulatory compliance. • Limiting the bill to consumers. • Limiting the bill to lending activities. • Ensuring notices could be sent on a monthly statement. The hearing for the 2025 bill was held on May 5. The sponsor was frustrated and killed his own bill. That action meant the 2024 bill remains in effect as of February 2026. We expect this issue to be included in the call for a special session. The legislature will have to return to address budget issues, and the AI bill should be included during that special session. We will keep you posted as we continue to work on this issue. Colorado Banker 4
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2025 WOMEN IN BANKING Conference Recap Colorado Banker 6
The 2025 Women in Banking Conference, held May 12-13 at The Broadmoor, brought together banking professionals from across Colorado for two days of leadership development, networking and insight into the issues shaping the banking industry. Thank you to our sponsors for making this event possible: • Presenting: Womble Bond Dickinson, FHLBank Topeka • Gold: Preferred Lending Partners, GSB Colorado, GSB Wisconsin, Crowe, Stinson, NFP, B:Side Capital • Supporters: Plante Moran, Godfrey Law Group, First Southwest Bank, BHG Financial We appreciate everyone who made this year’s event a success, and we hope to see you next year in Steamboat Springs, Colorado, on Aug. 3-4, 2026! 7 Colorado Banker
What Will Happen to FinCEN’s Priorities? HOW FINANCIAL INSTITUTIONS SHOULD PREPARE UNDER THE NEW ADMINISTRATION By Terri Luttrell, CAMS-Audit, CFCS, Abrigo Just as financial institutions have worked to integrate FinCEN’s National AML/CFT Priorities into their compliance programs, a new administration could bring significant policy shifts. Banks and credit unions should closely monitor these potential changes to proactively manage risk. Potential Regulatory Shifts: What Financial Institutions Need to Know The new administration has already signaled key regulatory changes that could reshape how financial institutions approach AML/CFT compliance. The following are the areas that compliance teams should be prepared to monitor and adapt to in 2025. Policy Re-Evaluation and Regulatory Freeze On Jan. 20, 2025, a Presidential Action directed federal agencies to: • Pause all new rulemaking until a Trump-appointed official reviews and approves it. • Withdraw unpublished rules from the Federal Register for further review. • Delay the effective date of recent regulations for at least 60 days, including AML/CFT-related rules. This broad review could slow down or revise pending financial crime regulations, impacting how institutions approach transaction monitoring, reporting requirements and enforcement actions. Implementation of the AML Act and Rollback of Beneficial Ownership Rules The Anti-Money Laundering Act of 2020 (AML Act) mandates FinCEN to update AML/CFT priorities every four years, with the next update expected in mid-2025. The administration may introduce new priorities or refine existing ones, requiring financial institutions to remain agile and adjust their compliance programs accordingly. One key area of change is the Corporate Transparency Act (CTA), which requires businesses to disclose their beneficial owners to FinCEN. The new administration has suspended CTA enforcement, and it’s possible that the rule could be modified or repealed entirely. Financial institutions should assess the impact of a rollback in beneficial ownership transparency, as it could increase the risk of illicit funds flowing through shell companies. Shifting FinCEN Priorities: What Could Change? While FinCEN’s current AML/CFT priorities remain in effect, the administration may redefine key areas of focus. This could include heightened attention to cybercrime, transnational crime or financial fraud. Additionally, recent presidential action has paused enforcement of the Foreign Corrupt Practices Act, which could signal changes to the priority of corruption, especially domestically. Compliance teams must stay ahead of these developments to ensure ongoing alignment with regulatory expectations. Other Regulatory Areas to Watch Law Enforcement and National Security The new administration is expected to maintain a strong emphasis on AML/CFT compliance as a tool for safeguarding national security. One way we’ve already seen this is with a recent FinCEN Geographic Targeting Order (GTO) requiring money services businesses (MSBs) to file currency transaction reports on any cash transaction over $200 in specific southwestern border zip codes. Financial institutions that provide financial services to these MSBs should ensure that their customers are adhering to these new requirements and support law enforcement efforts by ensuring timely and accurate reporting of suspicious activity when necessary. Drug Trafficking and Trade-Based Money Laundering (TBML) Drug trafficking remains a top concern for the new administration, as evidenced by the Department of Justice’s noteworthy cases against TD Bank and Brinks. FinCEN issued an alert in June 2024 highlighting the risks associated with the illicit fentanyl supply chain and the deceptive financial practices used to obscure these transactions. Colorado Banker 8
More recently, the administration issued a Presidential Action designating certain cartels as Foreign Terrorist Organizations, followed by the State Department’s formal designations on Feb. 19, 2025. These actions signal increased regulatory scrutiny on financial flows linked to drug trafficking and reinforce the need for strong AML/CFT measures for financial institutions. With the U.S. imposing new tariffs on Canada and Mexico, experts predict that drug cartels will adapt by increasing trade-based money laundering (TBML) efforts. Mexico remains a key transit point for fentanyl entering the U.S., with precursor chemicals sourced from China. Investment Advisor Sector and AML/CFT Compliance FinCEN recently issued a final rule aimed at addressing illicit finance risks in the investment advisor sector. This rule is meant to assist in the fight against terrorist financing and corruption. The new administration may refine these regulations further, increasing compliance obligations for financial institutions that interact with investment advisors. As previously mentioned, the administration may delay the effective date, currently scheduled for Jan. 1, 2026, until a review of the rule can be conducted. Virtual Assets and Cryptocurrency Regulation The regulatory landscape for cryptocurrency and virtual assets continues to evolve, with a focus on preventing illicit finance activities. The administration has already issued an Executive Order to support the growth of the cryptocurrency industry with a lighter touch on regulations. Financial institutions involved in this space should review their policies on virtual asset risk management. Cybercrime and Financial Fraud Cybercrime is a growing concern for financial institutions and regulators. Cybercrime continues to be a significant global problem, with costs projected to reach $10.5 trillion annually by 2025. The administration may expand efforts to combat cyber-enabled financial crimes through new reporting requirements and cybersecurity expectations. Financial institutions should assess their cybersecurity controls and fraud detection capabilities to mitigate risks. How Financial Institutions Can Prepare for Changing Compliance Requirements With the potential for significant regulatory changes, financial institutions should take proactive steps to strengthen their AML/CFT programs: • Refresh AML/CFT Risk Assessments: Identify areas that may be affected by shifting priorities. • Enhance Transaction Monitoring: Ensure systems are equipped to detect trade-based money laundering, drug trafficking and cyberfraud. • Monitor Regulatory Updates: Keep up with FinCEN announcements, rule changes and enforcement actions. • Review Compliance Controls: Align AML/CFT programs with the latest FinCEN enforcement trends. • Invest in Compliance Technology: Use robust transaction monitoring and automation to adapt to evolving risks. • Engage With Regulators: Participate in industry discussions and provide feedback on proposed rules. The direction of FinCEN’s priorities in 2025 will depend on the administration’s policy goals and approach to financial crime enforcement. While some regulations may be paused or revised, others, such as those addressing drug trafficking, trade-based money laundering and cybercrime, could remain top priorities. By staying informed and adapting compliance strategies accordingly, financial institutions can proactively manage risk, maintain compliance and support efforts to combat financial crime.
The Challenge: Colorado’s Financial Services Talent Crisis The financial services sector in Colorado faces an unprecedented talent shortage. With job skill requirements evolving rapidly and expected to change by 41% in 2025, banks are struggling to find qualified candidates who can meet their current and future needs. For Colorado financial institutions, particularly community banks like Alpine Bank, this talent gap threatens their ability to serve diverse communities effectively and maintain competitiveness in an increasingly digital marketplace. A Legacy of Internal Development Alpine Bank led the way as the inaugural partner of the Career Accelerator Fellowship, bringing decades of experience in developing talent from within. As Regional President Matt Teeters explains, “20 years ago, I personally started with the bank in the bank’s Officer Trainee Program. This program allowed me to learn all areas of the bank, from operations to lending, and with a personal desire to find proficiency in each of these different areas, I’ve been able to ascend from the role of trainee to regional president.” This culture of internal development made Alpine Bank the perfect founding partner for a program designed to identify promising talent who could grow within the organization. The Fellowship extends this proven approach by providing structured support and training that accelerates career progression while ensuring candidates develop the specific skills needed in today’s financial landscape. A Powerful Partnership with Significant Benefits The Fellowship has achieved an important milestone by becoming a Registered Apprenticeship in partnership with the Boulder Chamber. This designation unlocks powerful financial incentives through Colorado’s New and Emerging Industries Apprenticeship Tax Credit (HB24-1439), allowing participating banks to offset program costs completely. As Matt Wiggins, associate VP of economic vitality for the Chamber, explains, “The more employers involved, the stronger these programs become.” With potential tax benefits of up to $126,000 in a single year, financial institutions can invest in talent development while simultaneously reducing their tax burden — creating a compelling business case for participation. How the Fellowship Works The Career Accelerator Fellowship operates through a comprehensive four-stage process: 1. Source and Screen: Watson Institute identifies high-potential job seekers across the Front Range who are committed to building careers within the financial industry. Candidates are screened based on career aspirations, relevant experience and employment barriers. 2. Prepare: Selected candidates join Watson Institute’s Talent Pool and receive personalized career coaching focused on career clarity, networking, personal branding and interview preparedness. In 2023, Watson Institute launched the Career Accelerator Fellowship with a strategic mission: to identify, develop and place high-potential talent in leadership-track roles at Colorado financial institutions facing critical workforce shortages. Addressing the widening gap between rapidly evolving industry demands and available skillsets, the fellowship provides a comprehensive solution that transforms qualified candidates into long-term financial professionals. By focusing on both technical expertise and professional development, Watson Institute created an innovative pathway that simultaneously solves employers’ pressing talent needs while accelerating career trajectories for ambitious job seekers. Bridging Colorado’s Financial Talent Gap THE WATSON INSTITUTE CAREER ACCELERATOR FELLOWSHIP Colorado Banker 10
3. Match and Hire: Candidates are matched with aligned roles at banking partners and guided through each partner’s formal hiring process. Banking partners retain final hiring authority, selecting candidates that best meet their specific needs. 4. Accelerate and Retain: Hired candidates become fellows and receive eight months of dynamic workshops, expert coaching, individualized career mapping and access to monthly sessions led by subject matter experts. This structured approach ensures both candidates and employers receive maximum value from the program while building a foundation for long-term success. Early Success Stories The program’s effectiveness is already evident through the experiences of its first fellows. Brandon Gutierrez and Alex Aleman joined Alpine Bank in 2024 and have quickly proven their value. Alex has since been promoted from teller to personal banker and leads his region in both new account openings and quarterly sales. Brandon has expanded his teller role to include greater responsibilities and leadership opportunities. These early successes validate the Fellowship’s approach to identifying high-potential candidates who might otherwise be overlooked by traditional recruiting processes. As Matt Teeters notes, “We recognize that to best engage with all communities along the Front Range, it’s critical that we recruit and employ individuals who live and work in each of the communities we desire to serve.” Creating Value Through Diversity The Fellowship emphasizes finding talent who reflects the communities that banks serve, helping financial institutions build more authentic connections with diverse populations. By demystifying the financial sector and making it more accessible, the program attracts candidates who might not otherwise consider banking careers. For banks like Alpine, this represents an opportunity to accelerate growth while strengthening community relationships. “Given the Watson Institute’s work with the Boulder Chamber, its proven track record of recruiting, developing and mentoring individuals from diverse communities throughout metro Denver, and its strong reputation, we identified the Watson Institute as a natural partner,” explains Teeters. A Model for the Future The Career Accelerator Fellowship represents more than just a training program — it’s a comprehensive talent ecosystem that addresses immediate workforce needs while building a pipeline of future leaders. Through its registered apprenticeship status, the program aligns with state priorities around workforce development while providing tangible benefits to both individuals and employers. As Wiggins explains, “As a whole, adult apprenticeships and Career Accelerator Fellowships support individuals who aim to find success in a new career path — not just a job. When we have the opportunity to build tiered apprenticeships with employers — one path leading to the next, scaling work-ready skills — we do.” The Watson Institute Career Accelerator Fellowship offers a powerful solution to Colorado’s financial services talent gap. By combining personalized development, expert coaching and strategic matching with financial incentives for employers, the program creates a win-win scenario for all stakeholders. For financial institutions looking to strengthen their talent pipeline while diversifying their workforce, the Fellowship provides a proven, cost-effective approach. For job seekers aiming to build meaningful careers in the financial sector, it offers a structured pathway to success with ongoing support. To learn more or explore partnership opportunities, contact Emanuel Wilder at emanuel@watson.is or visit watson.is/career-accelerator. Watson Institute is a place where rising entrepreneurs and leaders can find their community, discover their calling and accelerate their careers. In partnership with leading corporations and foundations, Watson Institute powers Fellowships to support highly promising, historically disenfranchised rising entrepreneurs and leaders. The Career Accelerator Fellowship provides award-winning leadership skills training, dedicated coaching, long-term alumni support and access to a global community of peers, mentors and opportunities. 11 Colorado Banker
Chris Nicholl Senior Community Bank Division Leader, SVP Vectra Bank Colorado How did you get started in the banking industry? I originally worked at a non-bank lender. I interviewed at a bank when my co-worker turned down their offer. That was 29 years ago, and I feel as if I have had several different careers working in banking. I have been in retail banking, private banking, treasury management and business banking, and now I oversee several markets and a credit analysis team. What is the most rewarding aspect of your job? The most rewarding aspect of my job is helping people reach their goals and their next steps. For some clients, it is the acquisition of equipment or a building to grow their company. For other clients, it is a deep dive into their financial situation and working on a plan with them to reach whatever the next steps are: debt consolidation, dream vacation, new car, new house … It is very satisfying to hear the stories from the clients and be a small part in the success of their planning What is the most important thing you’ve learned from a career in banking? I think the most important thing I have learned from banking is the importance of leveraging your team and having a great network. We all work in several different teams on a daily basis. Knowing the strengths of your teams, where you need help and who to ask in your organization will help your client and team in the most efficient way possible. Growing your network inside and outside of your organization will give you access to different points of view and various ways to solve problems, and it helps me feel I have a larger community. Who is one of the most influential figures in your life? My grandfather Barry McCallan. Pops, as the family named him, moved his wife and seven children to Denver to start a company with his next-door neighbor. I believe his entrepreneurship is what draws me most to working with clients and helping them achieve their dreams. CBA Centerpoint Lauren Kvamme Vice President Treasury Management MidWestOne Bank How did you get started in the banking industry? I never expected to end up in banking. While working as a waitress, one of my customers — a branch manager — saw something in me and encouraged me to apply. I got hired at a bank that’s no longer in business, where I received three months of training. Shortly after, I helped open 15 new branches in Denver in one day. That experience taught me invaluable lessons about sales, entrepreneurship and how to navigate chaotic, high-pressure environments. What makes your bank unique? MidWestOne Bank’s uniqueness lies in its history and mission. Founded in 1934 by “Grandpa” Ben Summerwill, the bank was built on a foundation of trust and community. That legacy continues today through the bank’s mission: “Take care of our customers and those who should be.” This guiding principle shapes everything we do, ensuring that our customers are always the top priority. In 2024, MidWestOne strengthened its presence in Denver by acquiring Denver Bankshares, the parent company of the Bank of Denver. This move allowed us to offer even more personalized services to the Denver community, staying true to our commitment to exceptional service. What topic could you give a 20-minute presentation on without any preparation? If I had to give a 20-minute presentation with no prep, it would be on fraud prevention. Fraudsters are constantly getting more creative, and their only job is to exploit businesses and steal money. Meanwhile, business owners juggle so many other responsibilities. Helping them protect their assets and focus on growth is something I’m deeply passionate about. I believe banks should equip their clients with the knowledge and tools to stay ahead of fraudsters. Tell us something about yourself most people don’t know. I once worked as a houseboat instructor at Lake Powell. It’s funny because I had no boating experience at the time! I was hired despite it and quickly learned to navigate 50-foot boats. The experience taught me a lot about confidence, adaptability and handling the unexpected. Colorado Banker 12
GOING BEYOND THE DESK TO HEAR THE STORIES OF COLORADO BANKERS Mike Steppenbacker Colorado Market President Kirkpatrick Bank What is the most rewarding aspect of your job? The greatest joy I find in my work is helping business owners and investors achieve their goals. It’s not just about the final payout when a business or real estate property is sold; it’s about the entire journey. Throughout my career, I’ve had the privilege of working with individuals who were approaching retirement or reaching a significant financial milestone, and being part of the process that helped them get there is incredibly fulfilling. Celebrating those moments with my clients is the most rewarding aspect of my job — it never loses its impact, no matter how many times I experience it. One of the most touching aspects of my career is hearing people say, “I couldn’t have done this without your partnership.” Knowing that I’ve played a role in their success is a wonderful feeling. I love helping people navigate the path from Point A to Point B, and seeing their hard work pay off is deeply gratifying. What are you most proud of in your professional life? One of my greatest professional achievements was building a strong, cohesive team. At my previous financial institution, I had the opportunity to assemble an incredible group of individuals who genuinely enjoyed working together. I believe I have a talent for recognizing people with the right combination of humility, work ethic and a genuine desire to serve and support each other. As a former athlete, I’ve always appreciated the importance of teamwork. There’s something special about a group coming together, setting aside egos and working hard toward a shared goal. The team I built in my last job was truly exceptional, and I still hold deep admiration and appreciation for the people I worked with. What’s the most important lesson you’ve learned in your career in banking? One of the most valuable lessons I’ve learned is the importance of using leverage wisely. Leverage can be a powerful tool when managed responsibly, but it must be utilized with caution. I’ve seen individuals overextend themselves and end up in challenging situations, and I’ve also seen those who were too hesitant and missed out on great opportunities. As bankers, we have the ability to help people make informed financial decisions, but we also have a responsibility to ensure they are not placed in precarious positions. Striking the right balance with leverage can make a significant difference in helping customers realize financial success. Who has been the most influential figure in your life? I don’t believe there is just one person who has shaped my life. Instead, I often encourage young professionals to look around them — at colleagues, mentors, family members — and learn from the best qualities each person has to offer. That’s the approach I’ve taken in my own life. For example, I admire one person’s work ethic, another’s generosity and someone else’s leadership skills. Rather than placing the weight of influence on a single individual, I believe in drawing inspiration from multiple sources. I also remind young people that by embodying these qualities, we can one day become a source of inspiration for someone else. 13 Colorado Banker
CRA Made Easy EARNING CREDIT WHILE “DOING GOOD” VIA INNOVATIVE NEW PROGRAM By IntraFi Federal regulators expect banks to make innovative CRA investments, so one bank in West Virginia elected to try a new program designed to place deposits at Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) in underserved communities. “We are aware that CRA regulations encourage banks to make a variety of different CRA investments,” said the investing bank’s treasurer. “So, when we heard about this program, we thought it would be a great way to earn CRA credit while also enhancing a low-income market.” The Advancing Communities TogetherSM (ACTSM ) Deposit Program offers banks a secure, efficient way to place funds into CDFI banks and MDI banks and earn CRA credit under the regulation’s investment and community development tests. “The ACT Deposit Program is a promising new tool for community and regional banks to earn CRA credit,” says Brian Blake, chief public policy officer at the Community Development Bankers Association and a former CRA officer. “ACT excels at meeting both the spirit and the letter of the CRA, and I believe it is very competitive compared with more complex, costly or time-consuming alternatives.” ACT’s minimum deposit is $1 million, and the CDFIs and MDIs in the program pay near-market rates on the funds. ACT deposits remain liquid and are eligible for millions in FDIC insurance across IntraFi® network banks because they are placed through the IntraFi Cash Service®. IntraFi has built a network of more than 3,000 banks, including CDFIs and MDIs, that can help keep funds local and provide much-needed financial access in rural, suburban and urban communities across the nation. Scan the QR code for a list of MDIs and CDFIs participating in the ACT Deposit Program. https://www.intrafi.com/act-deposit-program#find-a-bank The $3.4-billion-asset investing bank in this case study used the ACT Deposit Program to place $1 million into an MDI in Ohio for several reasons. “First, the interest rate on the deposit is much better than an alternative we had been evaluating,” said the bank’s treasurer. “We also wanted flexibility on the amount invested, so the $1-million minimum appealed to us. “And another thing that is attractive about the program is if you need access to the funding for some reason, you can bring the funds back at any time. All these factors were extremely attractive to our bank.” There are no MDIs in the bank’s home state of West Virginia, so it looked to neighboring Ohio to find a relatively new MDI. “The deposits we receive under the ACT Deposit Program are fuel for the bank to help the community grow and meet its financing needs,” said the MDI’s chairman and CEO. Opened in May 2023, the MDI is the reincarnation of a bank chartered in the early 20th century during the Great Migration of Black people moving north. “We named our bank after a historic bank that created the first Black hospital here, financed a theater that hosted every Jazz great and helped all those newly arriving workers get credit,” the MDI’s chairman and Colorado Banker 14
CEO said. “We want to extend that legacy by financing the revitalization that is happening here.” The MDI’s mission to help the people in its community build wealth is yet another reason the investing bank decided to make its deposit. “This investment is very visible,” said the investing bank’s treasurer. “It is helping to grow [the Ohio-based MDI] and its community. That’s more satisfying than buying another municipal water and sewer bond.” Placing funds through the ACT Deposit Program was easy, the treasurer added, and his bank may increase its deposit in the future. “It was extremely simple and a fast process,” he said. “[The MDI] provided all the paperwork, and it was very, very easy. We will consider further deposits.” When asked if other bankers should use the ACT Deposit Program to help bolster their CRA credit, the treasurer did not hesitate. “I would recommend it,” he said. “It’s an opportunity to do something a little different, and the regulators are looking for folks to do something new — not the same old, tired thing.” IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. Deposit placement in the ACT Deposit Program within ICS (the “Program”) is subject to the terms, conditions, and disclosures in the applicable agreements, including the ACT Addendum to the Deposit Placement Agreement. A portion of a deposit placed in the Program may be allocated to IntraFi network banks that are not community development financial institutions or minority depository institutions. The interest rate earned on Program deposits will likely be lower than the interest rate available on deposits outside of the Program. Deposit placement through an IntraFi service is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through an IntraFi service at FDIC-insured banks in IntraFi’s network are eligible for FDIC deposit insurance coverage at the network banks. The depositor may exclude banks from eligibility to receive its funds. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (SMDIA) at any one bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits. IntraFi, ICS, IntraFi Cash Service, and the IntraFi logo are registered service marks, and Advancing Communities Together and ACT are service marks, of IntraFi LLC. YOUR DEBT PORTFOLIO MAY NOT BE KEPT IN HERE, BUT IT’S STILL AN ASSET They may not be currency, but debt portfolios which include credit card, auto deficiency, overdraft, judgements or commercial and consumer loans definitely have value. We’ll buy your debt portfolio from the last four years, with minimum sizes of $100k on at least ten accounts and no maximums. We’ll even walk you through the sales process to help with compliance and data integrity. To offload your debt portfolio, contact Craig Geisler at cgeisler@cherrywoodenterprises.com or (321) 247-5066. 15 Colorado Banker
The Colorado Bankers Association (CBA) is pleased to announce the election of new leaders to its Board of Directors for the upcoming terms, highlighting the exceptional talent and dedication within Colorado’s banking sector. Jennifer Luce, executive vice president at FirstBank, has been named chairwoman-elect of the CBA Board of Directors and will serve as chairwoman for the 2026-27 term. With more than two decades at FirstBank, Jennifer leads the South Market, overseeing a $1 billion division with 10 branches and over 100 employees. Her leadership has driven consistent growth, supported by a strong focus on mentorship, operational excellence and community engagement. “Jennifer brings an incredible breadth of experience and a collaborative spirit that makes her an ideal leader,” Waller said. “Her commitment to advocacy and advancing the industry has made a lasting impact.” Jennifer’s accomplishments include founding FirstBank’s internal advocacy program, mentoring hundreds of emerging officers, contributing to multiple internal committees and serving as an instructor in key training programs. Brett Wyss, president and CEO of Integrity Bank & Trust, has been named chairman of the CBA Board of Directors for the 2025-26 term. With more than 20 years at Integrity Bank & Trust, Brett has led with a focus on strategic planning, leadership development and organizational growth. Since becoming president and CEO in 2017, he has helped guide the bank’s success through clear communication and proactive leadership. “Brett is a respected leader whose vision and experience are invaluable as we advocate for sound public policy,” said Jenifer Waller, president and CEO of the Colorado Bankers Association. “His passion for developing people and building relationships across the industry is evident. I look forward to his chairmanship.” Colorado Bankers Association Announces New Leadership Appointments for 2025-26 Colorado Banker 16
TAKE US ANYWHERE! Scan to read the most recent publication. Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website Place this indd file at 100% and place an image or pdf of THIS ISSUE’S COVER in a frame that is 12p9 by 16p6 (2.125” x 2.75”) to cover this text. Then proportionally resize the whole thing as needed. Matthew Propst, senior vice president and credit risk review manager at ANB Bank, has been named treasurer of the CBA Board of Directors. With a career spanning commercial lending, credit risk and business banking, Matthew brings a client-focused, service-driven approach to his work. He is a graduate of the CBA’s Center for Bank Advocacy and a graduate of the Graduate School of Banking in Colorado. In addition to his professional role, he serves on the boards of the Tennyson Center for Children, the Cherry Creek School Foundation and Colorado SecureSavings. “Matthew is a leader in Colorado’s banking community and a thoughtful advocate for the industry,” said Waller. “His passion for service, both inside and outside the bank, will make him an asset in this leadership role.” 17 Colorado Banker
7(a) Changes in SOP 50 10 8 WHAT’S NEW AND HOW IT IMPACTS YOU By B:Side Capital Okay, we get it — just hearing “SOP 50 10 8” might make your eyes glaze over. But stick with us for a minute because the latest update to the SBA’s standard operating procedures is more than just a mouthful of numbers. First Off, What Is SOP 50 10 8? For those who don’t live and breathe SBA loans, the SOP 50 10 is the Small Business Administration’s (SBA’s) guidebook for how lenders help small businesses secure funding. Version 50 10 8 is the latest edition, and B:Side is here to help you incorporate the changes into your process. What’s in the New Version? Here are a few highlights from the updates that caught our eye: • Business Ownership Rules: The SBA will require 100% of the business to be owned by U.S. citizens or legal permanent residents. We are also back to disclosing 100% of the business ownership structure. • Processing Change: Lenders that have delegated authority (PLP status) will now use it exclusively, with a couple of minor exceptions. SBA will have a dedicated email box for these lenders to ask specific, deal-related questions. • Equity Injection: The new SOP includes updates that revert back to requiring at least 10% equity on new businesses, changes to the definition of equity injection and changes to seller carry debt as equity — back to having to be on standby for the life of the loan. • “Small Loan” Definition: Returns to $350,000 or less and minimum SBSS score of 165. • Franchise Directory: It’s back but slightly revised, with SBA working directly with franchisors. • Environmental: For uncontaminated properties, the SBA will not be reviewing the reports. • Partial Changes of Ownership: Any selling owners who remain an owner MUST provide a limited guaranty for a period of two years. How B:Side Can Help • If you’re a delegated lender, these changes mean more autonomy. Our LSP services can ensure you’re ready for this! • If you’re a partner or referral source, call us to help you map out any new project. The Bottom Line The updates in SOP 50 10 8 bring meaningful changes that will impact how lenders and partners approach SBA 7(a) loans — from ownership requirements to equity injection and delegated processing. Staying compliant and competitive means understanding the nuances, and that’s where we come in. Whether you’re adjusting your internal processes or helping a client navigate their loan structure, B:Side Capital is here to support you with the expertise and resources to move forward with confidence. Colorado Banker 18
A Layered Approach to ATM Security By Levi Daily, CTO, Cook Solutions Group ATM security requires more than just traditional surveillance. A comprehensive strategy involves real-time monitoring, intelligent analytics and proactive threat detection to address a variety of vulnerabilities. The following are some of the common threats and how they can be mitigated through a layered security approach: • Hook and Chain, Physical Attacks: These involve brute force attempts to physically extract cash from terminals. Reinforced hardware and physical protections help deter these types of attacks. • Card Skimming and Cash Harvesting: Criminals use devices to illegally capture card data or access cash. Anti-skimming technologies and secure software protocols can reduce this risk. • Regulation E Claims: In cases of disputed transactions, security systems can support compliance efforts by providing transaction data and video verification. • Terminal Jackpotting: This involves manipulating terminal software to fraudulently dispense cash. Monitoring for software anomalies and applying security patches regularly helps prevent this. • External Dispenser Manipulation: Criminals may attempt to tamper with cash dispensing mechanisms. Hardware protections and tamper detection can alert institutions to these risks. • Software Vulnerabilities: Malware and cyber threats often exploit outdated or unprotected systems. AI-based endpoint security tools can help safeguard ATM operating systems. • Cash Dispensing and Cash Trapping: Devices placed on ATMs can trap cash during a transaction. Physical sensors and tamper alerts can detect and respond to these threats. • Data Compliance: Encryption of hard drive data ensures that sensitive information is protected, supporting data integrity and privacy requirements. • Transaction Reversal Fraud: Criminals may try to reverse transactions after receiving cash. Monitoring transaction patterns can help identify and mitigate this type of fraud. • Man-in-the-Middle (MITM) Attacks: Attackers may intercept or alter communications between the ATM and its host. Secure communication channels and encryption help guard against interception and impersonation. Integrating ATMs, ITMs and point-of-sale systems into the surveillance network — ATM Terminal Security allows for seamless monitoring of transactional operations. Terminal Security Suite Overview The Terminal Security Suite addresses common security concerns related to ATMs and ITMs by integrating a range of advanced tools: • PikoVIDEO • PikoTERMINAL • PikoVERIFY • PikoANALYTICS • RemoteView Electronic Journals and Security Plus • SAN Camera and Fraudulent Detection Engine This system combines AI-based surveillance, transaction validation and screen recording to help monitor and respond to both physical and digital threats. Key features include real-time monitoring and automated threat detection, which support terminal security operations and assist in dispute investigations. 19 Colorado Banker
Year of the Credit Card WHY CREDIT CARDS ARE DRIVING CONSUMERS TO OPEN NEW ACCOUNTS IN 2025 AND HOW YOU CAN CAPTURE NEW BUSINESS By Corey Wrinn, Managing Director, Rivel Banking Research 2025 is shaping up to be a landmark year for credit cards, driven by shifting consumer preferences and evolving business needs. Recent Federal Reserve data shows credit card applications hitting their highest levels since pre-pandemic times, with approval rates climbing steadily. Major issuers like Chase and American Express reported record-high application volumes in Q4 2024, indicating sustained momentum into 2025. Rivel’s new research digs deeper into the reasons why credit cards are in demand right now and how financial institutions can advocate for new business, to the right audiences. Opportunities for Growth Within the last year, 43% of U.S. consumers have opened a new credit card account — highest among Gen Z (68%) and millennials (35%). With prices remaining elevated, more households are turning to credit cards for both everyday purchases and large expenses. It also continues to be highly sought after for businesses as it becomes a more common format for vendor payments and cashflow management. In Rivel’s semi-annual research of banking consumers, the credit card has been the most in-demand banking product across both retail and commercial for the last two years. For consumers, the demand is higher than checking accounts, savings accounts, and loan products, including mortgages and auto loans. For businesses, credit cards are outpacing credit lines, checking accounts and treasury management in demand. Looking to the future, the opportunity on the retail side lies with those younger consumers who have not yet established their credit or spending habits fully, and those slightly older consumers who need access to credit today. Demand for a new card is generational, as the following chart shows: Seeking a New Credit Card This Year Currently Has Only One Credit Card Gen Z 44% 55% Millennials 35% 38% Gen X 22% 27% Baby Boomers 12% 22% Just over half of consumers (52%) pay off their credit card balances in full each month, leaving a significant portion carrying debt. The rise of buy-now-pay-later services like Affirm and Klarna has fundamentally shifted how younger consumers view credit-based purchases, making installment payments feel more accessible and less daunting. This shift is particularly pronounced among Gen Z consumers, who are pushing the boundaries of credit utilization. More than half now use between 20-60% of their available credit monthly, a notably higher rate than other generations. Getting to Why Understanding Gen Z’s credit motivations is crucial, as they currently show the highest credit utilization rates and strongest appetite for new financial products. Their primary reasons for opening new credit cards reveal clear priorities — 68% aim to build credit history, 31% seek to increase their credit limits and 24% are attracted by better reward programs. Notably, traditional assumptions about credit card adoption don’t hold true. Factors like upcoming large purchases, diverse card benefits or dissatisfaction with existing cards play minimal roles in consumers’ decisions to open new accounts. An interesting pattern emerges in rewards preferences, as well — while older, established consumers prioritize maximizing reward benefits, younger consumers focus primarily on building credit access and achieving financial stability. Colorado Banker 20
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