2025 ISSUE 3 Official Publication of the Community Bankers Association of Kansas 2025 CONVENTION & TRADE SHOW
CONTENTS ISSUE 3 www.cbak.com ©2025 The Community Bankers Association of Kansas (CBAK) | The newsLINK Group LLC. All rights reserved. In Touch is published six times per year by The newsLINK Group LLC for CBAK 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 CBAK, 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. In Touch is a collective work, and as such, some articles are submitted by authors who are independent of CBAK. 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. 6 FANNIE AND FREDDIE 3.0 8CHANGING FOR THE BETTER 12 2025 CONVENTION & TRADE SHOW 4 FLOURISH YOUR ADVOCACY IMPACT By Rebeca Romero Rainey, President and CEO, ICBA 6 PORTFOLIO MANAGEMENT FANNIE AND FREDDIE 3.0 The Trump Administration Begins the Process of Reprivatizing the Housing GSEs By Jim Reber, ICBA Securities, and Ron Haynie, ICBA 8 PAYMENTS PULSE CHANGING FOR THE BETTER By Jacob Eisen, ICBA Payments 10 COMMITTEE VOLUNTEER OPPORTUNITY 12 2025 CONVENTION & TRADE SHOW 14 COMMUNITY BANKER APPRECIATION TAILGATE Sept. 6, 2025 KSU vs. ARMY 16 TOP 10 ACH AUDIT FINDINGS OF 2024 By Trista Woolston, AAP, APRP, EPCOR Electronic Payments Core of Knowledge 18 COMPLIANCE Q&A By Bill Showalter, Senior Consultant, Young & Associates Inc. 20 CBA EDUCATIONAL CRUISE Where Relaxation, Entertainment and Education Meet 22 ANNIVERSARIES 23 OFFICERS AND DIRECTORS 23 PRODUCTS AND SERVICES REFERENCE LIST 26 BANK WEBINARS Live & On-Demand 3 In Touch
Every phone call we make to our members of Congress, every trip to Capitol Hill and every letter we send falls on open ears and has an impact. Sometimes in life, we’re fortunate enough to see our labor yield results, and that’s precisely what’s been happening with our advocacy efforts. The first quarter of 2025 has boasted great successes for community banking, including: • We saw congressional efforts to overturn the Consumer Financial Protection Bureau’s 1071 and overdraft rules. ICBA-supported legislation introduced by the House Committee on Small Business Chairman Roger Williams (R-Texas) would repeal the statute that underlies the CFPB’s Section 1071 rule, while Senate Banking Committee Chairman Tim Scott (R-South Carolina) and House Financial Services Committee Chairman French Hill (R-Arkansas) have introduced ICBA-backed Congressional Review Act resolutions to overturn the CFPB’s overdraft rule. • The first House Financial Services Committee hearing of the year focused solely on community banking. At the “Make Community Banking Great Again” hearing, I was able to testify and highlight policy proposals from our “Repair, Reform and Thrive” advocacy plan. • The first House Committee on Small Business hearing of the year focused on small business lending. At the “Hope on the Horizon” hearing, ICBA Chairman-Elect Alice Frazier — president and CEO of Bank of Charles Town, in Charles Town, West Virginia — encouraged policymakers to pass Chairman Roger Williams’ 1071 Repeal to Protect Small Business Lending Act, preserve and expand a pro-growth tax environment by extending Section 199A of the Tax Cuts and Jobs Act for pass‑through business, and more. Moments like these affirm the importance of community banking to our nation’s economy and in the halls of Congress. We need to keep this momentum, driving forward the issues of right-sized regulation, a level regulatory playing field and flexibility to support our communities. Now more than ever, our successes serve as a call to action: Every phone call we make to our members of Congress, every trip to Capitol Hill and every letter we send falls on open ears and has an impact. We must maintain continued and persistent engagement to ensure our issues remain a priority in today’s legislative landscape. With that in mind, I hope you will join us for Capital Summit (icba.org/capital-summit), which will take place May 12-15 in Washington, D.C. When we come together on Capitol Hill, it demonstrates to members of Congress just how serious we are about advancing community banking for the betterment of their districts and our communities, and we need your voice. Hard work is what it takes to achieve results. And with more hard work on our part, the rest of the year will get better for community banking. FLOURISH YOUR ADVOCACY IMPACT BY REBECA ROMERO RAINEY PRESIDENT AND CEO, ICBA 4 In Touch
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PORTFOLIO MANAGEMENT FANNIE AND FREDDIE 3.0 The Trump Administration Begins the Process of Reprivatizing the Housing GSEs Sept. 7, 2008, was a watershed in the history of housing finance. On that day, as housing market conditions deteriorated, Fannie Mae and Freddie Mac, the two massive housing government-sponsored enterprises (GSEs), were placed in “temporary” conservatorship. The shareholders, both common and preferred, were essentially wiped out. The bondholders, who included community banks, ironically had their positions preserved, as the federal government all but guaranteed the GSEs’ debt. Fast forward to 2025, and not much has changed. You and I still own Fannie and Freddie. Their bonds, still a staple of community bank investment portfolios, are considered safe by investors and banking regulators. What has changed is the new presidential administration, which seems highly interested in completing the job of reprivatizing these entities. We’ll investigate what this strategy may look like, and how this could affect your community bank. Ending the GSE Conservatorship During the first Trump administration, Treasury Secretary Steven Mnuchin and Federal Housing Finance Agency (FHFA) Director Mark Calabria initiated the process of ending the conservatorship but were not able to complete it. However, they did finalize a robust capital framework for the GSEs and directed the GSEs to retain earnings to build capital. Under the Biden administration’s watch, with no new actions to end the conservatorship, the GSEs continued to build capital in accordance with the Enterprise Capital Framework, which calls for very robust levels of capital and will make exiting the conservatorship easier. Currently, the GSEs have far more capital than in 2008, before they were placed into conservatorship. We should clarify that the GSEs are not government agencies. Rather, they are government-chartered, shareholder-owned private companies, like national banks. However, during the past 16 years, their regulator, FHFA, has run both companies. Imagine if the Federal Reserve or the Office of the Comptroller of the Currency (OCC) did that to banks. Like many private companies — including some automobile manufacturers, insurance BY JIM REBER ICBA SECURITIES AND RON HAYNIE, ICBA 6 In Touch
companies and Wall Street firms — the GSEs received government assistance to help them through the worst of the Great Recession. And like those other entities, the GSEs paid their bailout back in full. Unlike those other entities, the government never relinquished control of the GSEs, even though they repaid their federal assistance, plus an additional $100 billion in earnings. Also, in exchange for government assistance, the GSEs gave the Treasury stock warrants equating to 79.9% ownership — which are, in a sense, senior preferred stock. This means that once they are released from conservatorship, the government will again benefit from selling all or some of those preferred shares. The Trump administration has indicated it wants to finish the job of releasing the GSEs from a perpetual conservatorship, which would be great news for taxpayers and the housing market in general. Taxpayers would no longer be on the hook if any future housing bubbles resulted in exposure for the GSEs, and Fannie and Freddie would be free to support the secondary mortgage market as publicly owned enterprises. So, now what needs to happen? First, the Treasury and the FHFA need to formally agree to end the conservatorship. The new Treasury secretary will need to work with the new FHFA director to amend the federal preferred stock purchase agreements and resolve the government’s ownership, which would declare the bailout paid in full and the sweep of GSE earnings eliminated. This would allow the GSEs to access the capital markets, raise equity, become fully recapitalized and, finally, exit conservatorship. Once this occurs, FHFA’s role in the operations of the companies will end. Its role will convert to that of a prudential regulator responsible for safety and soundness. Bond Market Considerations Before we start a game of “what if,” let’s look at “what is.” Community banks own a lot of debt securities issued by Fannie and Freddie; nearly half of all the bonds in bank portfolios are obligations of the two GSEs. This includes all manner of mortgage-backed securities, as well as straight agency bonds. Immediately after their default in 2008, Fannie’s and Freddie’s debt values plummeted. This was despite the Treasury bonds’ prices spiking, in a classic flight to quality. It took both the Treasury and the Federal Reserve to calm down the debt markets. The Treasury, under Hank Paulson, all but guaranteed the GSEs’ debt in an arrangement that remains in place today, while the Fed, then chaired by Ben Bernanke, began buying then-record sums of bonds through open market operations. By mid-2009, credit spreads had returned to pre-panic levels. Back to the current era. If the GSEs successfully navigate the road back into private hands, what will bond investors demand for adequate compensation? The feeling is, “It depends.” It depends on whether the implied government backing of Fannie and Freddie’s debt is underwritten into their recapitalization. Other factors include how much regulatory oversight is mandated, as well as more traditional measures of safety and soundness, such as levels of capital and subordinated debt. The GSEs’ capital framework requires almost bank-like capital requirements, which should put their ratings similar to those of the largest national banks. However, the bigger question for the U.S. economy is if the GSEs under private ownership will be able to provide efficient housing finance. Somewhat wider credit spreads for a time should be expected. Headwinds already exist for homebuyers due to high prices and elevated rates, so this could add another challenge to the housing market. It could also be years before this complicated offloading is finally completed. The best outcome would be a trifecta: 1. The GSEs move off taxpayers’ balance sheet; 2. The federal government reaps a windfall on the transaction; and 3. Fannie and Freddie continue to subsidize mortgage rates. Here’s hoping for a successful third iteration of the housing GSEs. 7 In Touch
PAYMENTS PULSE CHANGING FOR THE Winston Churchill famously said, “To improve is to change, so to be perfect is to have changed often.” If that’s true, the community banking industry must be edging close to flawlessness because change has become second nature over the past few years. We respond to market shifts and regulatory demands with resilience and tenacity, precisely because we place our communities and customers at the center of what we do, creating better experiences for them. Now ICBA Payments is asking you to consider making changes once again, with the goal of introducing a better solution for your customers and your bottom line. A New Card Partner As we announced at ICBA LIVE, ICBA Payments and Mastercard have built a new partnership model centered on empowering community banks to deliver outstanding experiences to their cardholders while boosting the banks’ card program profitability. This change will both enhance the value of your card program for your bank and extend enhanced, modern payment capabilities to your customers. Specifically, as part of this transition, ICBA Payments negotiated the following upgrades to your program: • Modern, contactless plastics. • Tokenization to digital wallets. • Industry standard eight-digit BINs. • Enhancements to business BINs. In short, you will be able to offer a modern card experience that better supports your bank and your customers now and into the future. Expanding Profitability But it’s not just about the experience. We’re also introducing greater revenue potential. One of the most exciting components of this shift lies in the marketing support Mastercard will bring, resulting in an uptick in cardholder engagement and spending. In fact, Mastercard reports that by introducing its best practices, community banks can see an average increase of more than 18% in debit spending, along with an increase in overall activation rates and provisioning for recurring payments. BY JACOB EISEN ICBA PAYMENTS BETTER 8 In Touch
And this change is happening now. Current ICBA Payments clients have already received an acknowledgment form to confirm their agreement to comply with all necessary transition requirements. Once that form is returned to ICBA Payments, details on the implementation timeline and resources to assist with the transition are provided. We hope community banks that are not already ICBA Payments clients will consider joining us at this stage, with all the new potential this change brings. Just reach out to mastercardupgrade@icba.org for more information. I’ve always felt that change for the sake of change is foolish, but when it brings with it new opportunities, innovative potential and a better business return, it’s an educated, worthwhile pursuit. And that’s what we see in this new partnership. We look forward to working with each of you as we create an exciting, profitable future with Mastercard as a key partner. Jacob Eisen (jacob.eisen@icba.org) is CEO of ICBA Payments and its wholly owned subsidiary TCM Bank, N.A. “To improve is to change, so to be perfect is to have changed often.” For more information on ICBA Payments’ new partnership with Mastercard, visit icba.org/payments. 9 In Touch
CBA is welcoming volunteers to join its 2025 committees. Participating allows you to help guide your association and get to know other bank members along the way. The more committee participation we have, the more effective we can be. Here are some benefits of serving on one of CBA’s committees: A voice and participation in CBA projects. A significant role in advancing the profession of CommunityBanking. An opportunity to enhance the value of CBA to Kansas banks. Access to up-to-date information about challenges facing financial institutions. The opportunity to exchange ideas and perspectives with colleagues. Yes, I’d like to get involved! I am volunteering for the following committee(s): CBPAC Education and Events Legislative/Regulation Name: Email: Bank: City: Please send this form to nikki@cbak.com or mail to CBA at 5897 SW 29th St., Topeka, KS 66614 the state level. and conceptualize educational activities banks. Review proposed agency regulations Committee Volunteer Opportunity CBA is welcoming volunteers to join its 2025 committees. Participating allows you to help guide your association and get to know other bank members along the way. The more committee participation we have, the more effective we can be. Here are some benefits of serving on one of CBA’s committees: A voice and participation in CBA projects. A significant role in advancing the profession of CommunityBanking. An opportunity to enhance the value of CBA to Kansas banks. Access to up-to-date information about challenges facing financial institutions. The opportunity to exchange ideas and perspectives with colleagues. Yes, I’d like to get involved! I am volunteering for the following committee(s): CBPAC Education and Events Legislative/Regulation Name: Email: Bank: City: Please send this form to nikki@cbak.com or mail to CBA at 5897 SW 29th St., Topeka, KS 66614 the state level. and conceptualize educational activities banks. Review proposed agency regulations Committee Volunteer Opportunity
2025 CONVENTION & TRADE SHOW The Community Bankers of Kansas is getting ready for another exciting and memorable Convention & Trade Show, to be held July 7-9, 2025. We hope you join us for this three-day event at the Kansas City Marriott Downtown in Kansas City, Missouri. You won’t want to miss the outstanding speakers, including Gov. Michelle Bowman, networking opportunities, and the night of fun, music and entertainment at Howl at the Moon! 12 In Touch
GOVERNOR MICHELLE BOWMAN, INVITED GUEST Michelle W. Bowman took office as a member of the Board of Governors of the Federal Reserve System on Nov. 26, 2018, to fill an unexpired term ending Jan. 31, 2020. She was reappointed to the Board on Jan. 23, 2020, and sworn in on Jan. 30, 2020, for a term ending Jan. 31, 2034. Prior to her appointment to the Board, Gov. Bowman served as the state bank commissioner of Kansas from January 2017 to November 2018. She also served as vice president of Farmers & Drovers Bank in Kansas from 2010-17. In addition to her experience in the banking industry, Gov. Bowman worked in Washington, D.C., for Sen. Bob Dole of Kansas from 1995 to 1996 and served as a counsel to the U.S. House Committee on Transportation and Infrastructure and the Committee on Government Reform and Oversight between 1997 and 2002. In 2002, Gov. Bowman became director of congressional and intergovernmental affairs at the Federal Emergency Management Agency. From 2003-04, she served as deputy assistant secretary and policy advisor to Homeland Security Secretary Tom Ridge. Following her time in Washington, D.C., Gov. Bowman led a government and public affairs consultancy based in London before returning to Kansas in 2010. Gov. Bowman received a BS in advertising and journalism from the University of Kansas and a JD from the Washburn University School of Law. She is a member of the New York Bar. DINNER AND ENTERTAINMENT GET READY TO HOWL WITH US! Howl at the Moon isn’t just any dueling piano bar — it’s an electrifying nightlife adventure in the heart of the Kansas City Power & Light District! Prepare yourself for a high-energy experience packed with live music and dancing that you won’t forget. The incredibly talented musicians will put a fresh spin on your favorite songs, rocking out with dueling pianos, guitars, drums, synths, horns and so much more! From the classics of Buddy Holly to the hits of Katy Perry, Howl’s dueling pianos will have you singing, dancing and howling with joy all night long! Come join the fun! THANK YOU, SPONSORS! CBA offers special recognition and appreciation to the following companies who have committed to convention sponsorship: SHAZAM Bankers’ Bank of Kansas Bank Compensation Consulting BHG Financial ICBA ICBA Payments ICBA Securities Olsen Palmer RESULTS Technology FHLBank Topeka Oppliger Banking Systems Travelers UNICO Group Inc. Register today by scanning the QR code. https://www.cbak.com/ convention-and-trade-show 13 In Touch
COMMUNITY BANKER APPRECIATION TAILGATE Sept. 6, 2025 KSU vs. ARMY Get Ready To Be Our Guest! Enjoy complimentary food and drinks starting three hours before kickoff at the CBA tent, situated at the Bill Snyder Family Stadium at Kansas State University (2201 Kimball Ave., Manhattan, KS). KSU tailgates are set up at the northeast lawn of the stadium or the lawn of the rowing center. Kindly provide a contact name and email address to receive the exact location before game day. RSVP for the CBA Tailgate Register online at www.cbak.com or complete this form and email it to nikki@cbak.com. Please note you do not have to have game tickets to attend the Tailgate. (To purchase tickets, contact KSU.) REGISTER to attend the Tailgate below! Contact Name: Contact Email: Names of Attendees: Bank: City: 5897 SW 29th Street • Topeka, Kansas 66614 • Phone: (785) 271-1404 • Email: info@cbak.com • www.cbak.com Tailgate Registration Deadline is August 15! 14 In Touch
TOP 10 ACH AUDIT FINDINGS OF 2024 BY TRISTA WOOLSTON, AAP, APRP EPCOR ELECTRONIC PAYMENTS CORE OF KNOWLEDGE A uditing ACH transactions is an essential part of ensuring compliance and maintaining the integrity of your organization’s payments. It can often feel overwhelming, but fear not! EPCOR’s expert team is here to transform that chaos into a streamlined process. The following are the top 10 common ACH audit findings with practical solutions to tackle them. 1. Annual ACH Compliance Audits Finding: Neglecting to complete your annual ACH Compliance Audit could put your organization at risk of non-compliance with the ACH Rules. Solution: Schedule your annual ACH Compliance Audit ahead of the Dec. 31 deadline as required by Subsection 1.2.2.1, General Audit Requirements. Ensure that audit reports are securely stored for at 16 In Touch
least six years, as required by Subsection 1.2.2.2, Proof of Completion of Audit. 2. Periodic Risk Assessments Finding: Skipping regular ACH Risk Assessments could leave your organization unaware of potential emerging risks. Solution: Perform an ACH Risk Assessment periodically to identify and mitigate potential risks in accordance with Subsection 1.2.4, Risk Assessments. We recommend you complete a risk assessment every 12-18 months. Develop a comprehensive risk management program that addresses the risks of your ACH activities — such as operational, credit and fraud risks — to ensure ongoing compliance. 3. Security Policies and Procedures Finding: Outdated or inadequate security policies may leave ACH data vulnerable to breaches or cyber threats. Solution: Develop and regularly update security policies in line with Section 1.6, Security Requirements. Stay ahead of emerging threats by adapting your policies to meet the latest industry standards and ensure the safety of ACH transactions. 4. Origination Agreements Finding: Missing or incomplete language in origination agreements can lead to compliance gaps or operational challenges. Solution: Review your origination agreements to ensure they include all necessary provisions required by Subsection 2.2.2.1, ODFI Must Enter Origination Agreement with Originator and Subsection 2.2.2.2, ODFI Must Enter Origination Agreement with Third-Party Sender. This includes risk management clauses, indemnification language and proper authorizations. Secure signed copies of these agreements for your records. 5. Training and Education Finding: The ACH Rules are complex! Without adequate training, employees may lack the necessary understanding of ACH operations and compliance obligations. Solution: Implement an ongoing ACH training program so your staff can receive regular updates on the latest ACH requirements. 6. Incoming NOCs and Correcting NOCs Finding: Improper handling of Notifications of Change (NOCs) can result in inaccurate data and compliance issues. Solution: Establish clear procedures for managing incoming NOCs and instructing Originators to make corrections in a timely manner, ensuring compliance with Section 2.12, Notifications of Change. Originators must make the changes specified in the NOC or corrected NOC within six banking days of receipt of the NOC information or prior to initiating another Entry to the Receiver’s account, whichever is later. 7. Exposure Limits Finding: Not setting or reviewing exposure limits can leave your organization vulnerable to financial risks. Solution: Define and regularly review exposure limits based on your organization’s risk profile, as required by Subsection 2.2.3, ODFI Risk Management. These limits help manage financial exposure and minimize the risk of significant losses. 8. Return Handling Finding: Improperly managed ACH returns can lead to delays and potential compliance issues. Solution: Develop efficient return handling procedures in accordance with Section 3.8, RDFI’s Right to Transmit Return Entries. Ensure your team processes returns promptly to minimize delays and stay compliant. 9. Record Retention Finding: Not retaining ACH-related records for the required duration can cause complications during audits or compliance reviews. Solution: Implement a record retention policy that aligns with Subsection 1.4.1, Retention Requirement for Records of Entries. Ensure ACH transaction records are securely stored for at least six years and can be easily accessed when necessary. 10. ODFI Due Diligence Finding: Inadequate due diligence on originators and third-party senders can expose your organization to unnecessary risks. Solution: Conduct thorough due diligence on all originators and third-party senders as outlined in Subsection 2.2.3, ODFI Risk Management. We recommend this include background checks, creditworthiness assessments and ongoing monitoring to manage potential risks. By tackling these common ACH audit findings with actionable solutions, you’ll not only ensure compliance with the ACH Rules but also help streamline your ACH operations and safeguard your organization from potential risks. 17 In Touch
Q&A COMPLIANCE The following questions and answers (Q&A) are drawn from questions asked by bankers calling Young & Associates’ Compliance Hot Line. Please note that Young & Associates Inc. is not engaged in the practice of law. The answers given here apply to individual situations that may differ from one institution to another. The advice of legal counsel should be sought on specific situations. EFTA. Q: We issued a provisional credit to a customer for an online card-not-present transaction while we investigated the error they alleged. The dispute for the transaction was filed through our EFT system provider. The merchant denied the dispute based on the methods used to verify the customer at the time of initiating the transaction. The merchant provided us with a copy of the bank customer’s driver’s license as well as a “selfie” photo which the merchant requires when initiating a transaction. We recognize the selfie as being a picture of our customer. In your opinion, is the evidence of a driver’s license and selfie photo sufficient evidence to revoke the provisional credit? A: We cannot make the final decision regarding the legitimacy or not of the “error” for the bank. It does sound like the merchant’s evidence is compelling, but only the bank can determine if it is “enough” since that can depend on the bank’s risk appetite. One step you could take (if not done already) is to contact the customer with this information and see what they say. It may very well be that this will jog their memory, and they may ask to end the dispute process. If this happens (or if the bank otherwise determines that the evidence proves the correctness of the EFT transaction), debiting the provisional credit from their account would seem appropriate while complying with Regulation E requirements for notifying the customer and honoring items and preauthorized transactions initiated based on the provisional credit for five business days after notifying the customer. TILA. Q: Currently, we disclose the fee for the automobile title on an auto loan, even if we do not do the titling ourselves. Do we have to disclose the fee, or can we stop doing that? A: Regulation Z generally requires disclosing only amounts that are paid from/with a loan transaction. One exception to that is “security interest charges” (translation: filing fees). Generally, anything paid by the customer to perfect the lender’s security interest is a finance charge unless particular steps are taken. This applies whether the lender collects the fee(s) and pays them to the relevant government agency itself, a dealer collects the fee and pays it to the relevant government agency, or the customer goes directly to the government agency and pays them to file the lender’s lien. If there are security interest charges (filing fees) involved in a transaction that are required to perfect the bank’s security interest, they are a finance charge unless the fee(s) is (are) “itemized and disclosed” by the lender on/with the disclosure statement given BY BILL SHOWALTER SENIOR CONSULTANT, YOUNG & ASSOCIATES INC. 18 In Touch
to the borrower. The covered security interest charges are pretty broad, including any fees or taxes specified by relevant law to be paid to a government agency or premiums for insurance obtained in lieu of filing a lien (generally only in states where such insurance costs less than the governmental security interest changes). Whether the fee for the title itself is included would depend on your state’s process for issuing titles and notating liens. If a new title must be obtained to file the bank’s lien (with a fee for the title issuance), then the title fee would need to be included in the filing fees disclosure — unless the fee would be paid in a comparable cash transaction. This last criterion generally means that a title fee paid as part of an auto purchase transaction will not be included in the disclosed filing fee, while the same fee for a non-purchase transaction would have to be included in the “filing fee” disclosure. As you can see, how this process is handled in your state impacts what needs to be disclosed as “filing fees.” Flood Insurance. Q: Can the bank use a previous flood determination if it is not more than seven years old when we do an extension with no new money added to the loan? I read that you can rely on previous determination if the Federal Emergency Management Administration (FEMA) has made no map revisions or updates. Is there a way for the bank to check if revisions or updates have been done since the flood determination was performed if it is within the seven years? Should the bank put this step into the processes when extending the loan? A: A lender may rely on a previous flood hazard determination when increasing, extending or renewing a loan on the same property. The previous determination must be no more than seven years old and meet the three following conditions: original determination was made on FEMA’s standard flood hazard determination form (SFHDF); the basis for the determination is set forth on the SFHDF; and there have been no map revisions affecting the property since the original determination. A new determination is required when either a different lender refinances or assumes the loan or when the original lender is making a new loan. So, for the extension of an existing loan you describe, you may rely on the previous flood determination (as long as it meets the previous criteria). As for determining if there have been any flood map changes, there are a couple of ways to do this. If you paid the nominal fee for life-of-loan monitoring from your flood determination vendor, they would have notified you of any changes. Of course, you can always contact them to verify that no changes have occurred. Another way to find any map changes is you can go to fema.gov to their flood map utility, input the address and see for yourself. RESPA. Q: We recently sent out annual escrow account statements, and we have a customer who paid his shortage in a lump sum. He was only $220 short, but dropped off $250 to have put into his escrow account. Based on what I’m reading in the regulation, I believe we are allowed to accept the additional funds and credit them to the escrow account. We would not be required to run a new analysis based on the overpayment, and in the event that it creates a surplus in his account, we would just have to credit him if the surplus exceeded $50 during the next annual analysis in 2026. Am I understanding this correctly? A: You are correct. There is no prohibition against the bank accepting the (slight) overpayment and that there is no requirement to perform a new escrow account analysis in this situation. You can just let it ride, so to speak, until the next annual escrow account analysis and statement. BSA. Q: I want to clarify something regarding the procedure related to a Suspicious Activity Report (SAR) filing and later receiving a subpoena. Several months ago, we filed a SAR. We received a phone call today from the U.S. Secret Service informing us that they were notified of the SAR filing through the Financial Crimes Enforcement Network (FinCEN) and are going to need copies of the documents referenced in the narrative of the SAR. The agent stated he would be sending us a subpoena for the documents but was giving us a verbal heads-up that it would be coming. Since the subpoena is coming from a law enforcement agency, do we still have to notify FinCEN? I think not but want to make sure I am not overlooking a step. A: You are correct that the bank does not need to notify FinCEN in this case — providing supporting documentation for a SAR to a law enforcement agency under a subpoena. FinCEN issued guidance on SAR filings in its release FIN-2007-G003. Of course, there is also no prohibition against the bank reaching out to FinCEN for guidance, even when notification is not required. Compliance Policies. Q: The bank does not have a separate Fair Lending Policy. We have always felt we had this covered in our Loan Policy; Unfair, Deceptive, and Abusive Acts of Practices (UDAAP); and Equal Credit Opportunity Act (ECOA) policies. Is it necessary to have a separate policy? A: There is not a specific mandate for financial institutions to have a separate fair lending policy. However, at least some examiners or agencies seem to prefer individual policies for each law/regulation. Young & Associates provides banks and thrifts with support for their compliance programs, independent reviews and in-bank training, as well as a full menu of management consulting, loan review, IT consulting and policy systems. 19 In Touch
CBA EDUCATIONAL CRUISE Where Relaxation, Entertainment and Education Meet Feb. 8-15, 2026 Puerto Rico, British Virgin Islands, Antigua, Barbados, St. Lucia, St. Maarten and U.S. Virgin Islands CBA invites community bankers, directors, employees, associate members, family and friends to join us for an unforgettable journey to tropical islands throughout the Caribbean. This “All-Inclusive at Sea” adventure is the perfect opportunity to relax in the sun while also networking with banking professionals. Visit www.cbak.com for more details. For more information, contact Marilyn Boeding at (785) 336-6383 or by email at pm_boeding@yahoo.com. 20 In Touch
FMSI www.fmsiconsulting.com 913.955.3355 FMSI is a small business founded and located in Kansas, specializing in assisting community banks to succeed, a mission consistent with core CBA values. We have partnered with community banks for nearly 25-years providing core advisory services including asset/ liability, investment, and liquidity management. FMSI advisors actively assess market conditions and bank balance sheets of different size, mix, and capital levels. Market conditions are constantly changing presenting opportunities and challenges for CBA member banks. Interest rates are increasing for the first time in nearly a decade and now is a perfect time to partner with a trusted, industry leader. Establishing an FMSI relationship provides confidence your bank is optimizing the balance sheet, deploying necessary strategies, maximizing profitability, and managing balance sheet risks. FMSI is a Kansas CBA Endorsed Provider YOU WANT IT! (801) 676-9722 SALES@THENEWSLINKGROUP.COM DON’T ROLL THE DICE ADVERTISE HERE! CONTACT US TODAY
Congratulations to the banks celebrating May and June anniversaries as chartered institutions! ANNIVERSARIES May 149 years First National Bank of Hutchinson — Hutchinson 139 years Citizens Bank of Kansas — Kingman 136 years State Bank of Bern — Bern 125 years Citizens State Bank & Trust Co. — Ellsworth 124 years Union State Bank — Uniontown 102 years First National Bank — Hope 64 years First Bank Kansas — Salina 35 years The Trust Company of Kansas — Wichita June 124 years Union State Bank — Clay Center 116 years Farmers State Bank — McPherson 114 years Astra Bank — Scandia 22 In Touch
PRODUCTS AND SERVICES REFERENCE LIST 2024‑2025 CBA OFFICERS AND DIRECTORS Joe Rottinghaus Chairman Conway Bank Tanner Johnson Chairman‑Elect Swedish‑American Bank Tom Pruitt Secretary/Treasurer Peoples Bank & Trust Company Irv Mitchell Immediate Past Chairman Wilson State Bank DIRECTORS Jeff Caudle Union State Bank Kent Culbertson First National Bank and Trust Matt Engel Farmers State Bank Cheri Fahrbach First National Bank of Hutchinson Chris Floyd Dream First Bank Brandon Lee Union State Bank Margaret Nightengale Grant County Bank Steven Suellentrop Legacy Bank Michele C. (Mickey) Lundy Past Chairman Tampa State Bank STATE ICBA DIRECTOR Blake Heid First Option Bank CBA STAFF Shawn Mitchell President and CEO shawn@cbak.com Nikki Dohrman Senior Vice President/ Executive Director nikki@cbak.com Yvonna Hansen Vice President of Member Services yvonna@cbak.com Stuart Little Little Government Relations LLC OFFICERS AND DIRECTORS The following CBA Associate Members are ready to serve you when you need them. Please keep this list handy, and the next time you’re looking for a specific service, you’ll know where to look first! Remember, this is just a sampling of what each company provides. The “*” represents an agreement for a specific endorsed product with that company. Not all products that these companies offer are endorsed by CBA. To see a detailed list and explanation of endorsements, visit CBA at www.cbak.com. Keep in mind that the services listed by each company on this page may only be a sampling of the many services they offer. By their CBA Associate Membership, these companies have shown their commitment to serving community banks. Please look to these companies first, whenever possible, to meet your banking needs. ABSTRACTING Security 1st Title Wichita, KS . . . . . . . . . . ...........(316) 267‑8371 ACCOUNTING/TAX RETURNS Allen, Gibbs & Houlik LC Wichita, KS . . . . . . . . . . ........... (316) 267‑7231 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . . ......... (785) 537‑2202 ACH *SHAZAM Johnston, IA . . . . . . . . . . .......... (515) 288‑2828 ADVERTISING SPECIALTIES *SJC Marketing Susan: St. Joseph, MO . . . . . ...... (816) 396‑8575 *Works24 Brian: Edmond, OK . . . . . ....... (800) 460‑4653 ALARMS & SECURITY PRODUCTS Federal Protection Springfield, MO . . . . . . . ....... (800) 299‑5400 Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . . . . . . . . . . . . ..(800) 487‑7875 ARTIFICIAL INTELLIGENCE *Agent IQ Drew: Austin, TX . . . . . . . ....... (830) 708‑9370 ASSET LIABILITY MANAGEMENT *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS (913) 955‑3355 See ad pg. 21 *QwickRate Dan: Marietta, GA . . . . . . .......(800) 285‑8626 ATM EQUIPMENT (NEW/USED) Federal Protection Springfield, MO. . . . . . . . ....... (800) 299‑5400 Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . . . . . . . . . . . . . (800) 487‑7875 AUCTION Purple Wave Manhattan, KS . . . . . . . . ......... (785) 537‑7653 BACK ROOM SERVICE Modern Banking Systems Ralston, NE . . . . . . . . . .......... (800) 592‑7500 BALANCE SHEET CONSULTING *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS (913) 955‑3355 See ad pg. 21 BANK OPERATIONS The Baker Group Oklahoma City, OK . . . . . . ....... (800) 937‑2257 *QwickRate Dan: Marietta, GA . . . . . . .......(800) 285‑8626 BANK/PEER PERFORMANCE *QwickRate Dan: Marietta, GA . . . . . . .......(800) 285‑8626 BANKRUPTCY Spencer Fane LLP Overland Park, KS . . . . . . .......(800) 526‑6529 BANK STOCK LOANS & LOAN OVERLINES Commerce Bank Kansas City, MO . . . . . . . ........ (800) 821‑2182 *S&P Global Stacy: Charlottesville, VA . . . . ..... (434) 951‑4419 BOND ACCOUNTING First Bankers Banc Securities Overland Park, KS . . . . . . ....... (913) 469‑5400 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . . .......(800) 422‑6442 COMPLIANCE ASSISTANCE/REVIEWS *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . . . .(913) 340‑7041 Allen, Gibbs & Houlik LC Wichita, KS . . . . . . . . . . ........... (316) 267‑7231 *BHG Bank Group Tom: Syracuse, NY . . . . . . . ........ (315) 372‑4510 *MPA Systems David: Fort Worth, TX . . . . . .....(888) 233‑1584 23 In Touch
Purple Wave Manhattan, KS . . . . . . . . ......... (785) 313‑2094 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . . ......... (785) 537‑2202 Young & Associates Inc. Kent, OH . . . . . . . . . . ........... (800) 525‑9775 CONSULTING *Bank Compensation Consulting (BCC) Rich: Plano, TX | (303) 482‑1844 See ad pg. 11 *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . . ............. (914) 656‑8643 Young & Associates Inc. Kent, OH . . . . . . . . . . ........... (800) 525‑9775 CORRESPONDENT SERVICES Commerce Bank Kansas City, MO . . . . . . . ........ (800) 821‑2182 First National Bank of Hutchinson Hutchinson, KS | (800) 293‑0683 See ad pg. 15 The Bankers Bank Oklahoma City, OK . . . . . . ......(800) 522-9220 CORE SERVICES Data Center Inc. (DCI) Hutchinson, KS | (620) 694‑6800 See ad pg. 27 Modern Banking Systems Ralston, NE . . . . . . . . . .......... (800) 592‑7500 *SHAZAM Bill M. Johnston: IA . . . . . . . .......(515) 306‑8012 CRA/COMPLIANCE *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . . ............. (914) 656‑8643 CREDIT AND PORTFOLIO RISK MANAGEMENT Young & Associates Inc. Kent, OH . . . . . . . . . . ........... (800) 525‑9775 CREDIT CARD PROGRAM *ICBA Payments Heather: Washington, D.C. . . . ...(800) 242‑4770 CREDIT SUPPORT *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . . . .(913) 340‑7041 DATA ANALYTICS KlariVis Roanoke, VA . . . . . . . . . .......... (540) 357‑0011 *QwickRate Dan: Marietta, GA . . . . . . .......(800) 285‑8626 DATA PROCESSING Data Center Inc. (DCI) Hutchinson, KS | (620) 694‑6800 See ad pg. 27 Modern Banking Systems Ralston, NE . . . . . . . . . .......... (800) 592‑7500 DEBIT/ATM CARD SERVICES *ICBA Payments Heather: Washington, D.C. . . . ...(800) 242‑4770 *SHAZAM Matt M. Johnston: IA . . . . . . ...... (515) 480‑5767 DIGITAL LENDING *BHG Bank Group Tom: Syracuse, NY . . . . . . . ........ (315) 372‑4510 DIGITAL RELATIONSHIP BANKING *Agent IQ Drew: Austin, TX . . . . . . . ....... (830) 708‑9370 DIRECTORS AND OFFICERS INS. *Travelers Danielle: St. Louis, MO . . . . ..... (800) 255‑5072 *UNICO Group Inc. Diana: Lenexa, KS | (800) 755‑0048 See ad pg. 28 DIRECTORS EXAMS Allen, Gibbs & Houlik LC Wichita, KS . . . . . . . . . . ........... (316) 267‑7231 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . . ......... (785) 537‑2202 DISASTER RECOVERY FACILITY PROGRAM *MPA Systems David: Fort Worth, TX . . . . . .....(888) 233‑1584 DOCUMENT MANAGEMENT *Trust Exchange Leo: Austin, TX . . . . . . . . ......... (888) 777‑8434 EDUCATION *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . . ............. (914) 656‑8643 EMERGENCY FACILITIES/MODULAR BANK BUILDINGS FOR LEASE *MPA Systems David: Fort Worth, TX . . . . . .....(888) 233‑1584 EMPLOYEE AND EXEC. BENEFITS *Bank Compensation Consulting (BCC) Rich: Plano, TX | (303) 482‑1844 See ad pg. 11 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . . ........... (785) 235‑5330 ESCROWS Security 1st Title Wichita, KS . . . . . . . . . . ...........(316) 267‑8371 FINANCIAL INST. BOND *Travelers Danielle: St. Louis, MO . . . . ..... (800) 255‑5072 *UNICO Group Inc. Diana: Lenexa, KS | (800) 755‑0048 See ad pg. 28 HUMAN RESOURCES *UNICO Group Inc. Diana: Lenexa, KS | (800) 755‑0048 See ad pg. 28 INFORMATION TECHNOLOGY Integris Olathe, KS . . . . . . . . . . ........... (325) 947‑5550 Kansas Bankers Technologies Salina, KS . . . . . . . . . . ............ (888) 752‑8435 KlariVis Roanoke, VA . . . . . . . . . .......... (540) 357-0011 RESULTS Technology Overland Park, KS . . . . . . . .......(877) 435‑8877 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . . ......... (785) 537‑2202 INSURANCE — BANK *Bank Compensation Consulting (BCC) Rich: Plano, TX | (303) 482‑1844 See ad pg. 11 *Travelers Danielle: St. Louis, MO . . . . ..... (800) 255‑5072 *UNICO Group Inc. Diana: Lenexa, KS | (800) 755‑0048 See ad pg. 28 INTEREST RATE RISK SERVICE *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS (913) 955‑3355 See ad pg. 21 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . . .......(800) 422‑6442 INTERNAL AUDIT *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . . . .(913) 340‑7041 24 In Touch
INTERNET BANKING Data Center Inc. (DCI) Hutchinson, KS | (620) 694‑6800 See ad pg. 27 *ICBA Payments Heather: Washington, D.C. . . . ...(800) 242‑4770 KlariVis Roanoke, VA . . . . . . . . . .......... (540) 357-0011 INTERNET WORLD WIDE W.E.B. Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . . . . . . . . . . . . . (800) 487‑7875 INVESTMENTS Central States Capital Markets Kansas City, MO . . . . . . . ....... (800) 851‑6459 Commerce Bank Kansas City, MO . . . . . . . ........ (800) 821‑2182 *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS (913) 955‑3355 See ad pg. 21 First Bankers Banc Securities Overland Park, KS . . . . . . ....... (913) 469‑5400 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . . .......(800) 422‑6442 IT SECURITY Integris Olathe, KS . . . . . . . . . . .......... .(325) 947‑5550 Kansas Bankers Technologies Salina, KS . . . . . . . . . . ............ (888) 752‑8435 *RESULTS Technology Darla: Overland Park, KS . . . . ....(877) 435‑8877 LEGAL SERVICES Spencer Fane LLP Overland Park, KS . . . . . . .......(800) 526‑6529 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . . ...........(785) 235‑5333 LENDING *BHG Bank Group Tom: Syracuse, NY . . . . . . . ........ (315) 372‑4510 LOAN COLLECTIONS AND WORKOUTS Spencer Fane LLP Overland Park, KS . . . . . . .......(800) 526‑6529 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . . ........... (785) 235‑5330 LONG RANGE PLANNING The Capital Corporation LLC Overland Park, KS . . . . . . . ........ (913) 498‑8188 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . . ......... (785) 537‑2202 MARKETING Harland Clarke Newton, KS . . . . . . . . . .......... (800) 322‑0818 *SHAZAM Johnston, IA . . . . . . . . . . .......... (515) 288‑2828 *SJC Marketing Susan: St. Joseph, MO . . . . . ...... (816) 396‑8575 *Works24 Brian: Edmond, OK . . . . . ....... (800) 460‑4653 MERCHANT PROCESSING *SHAZAM Johnston, IA . . . . . . . . . . .......... (515) 288‑2828 MERGERS/ACQUISITIONS The Capital Corporation LLC Overland Park, KS . . . . . . . ........ (913) 498‑8188 Olsen Palmer Kansas City, MO . . . . . . . ........ (816) 379‑4029 Spencer Fane LLP Overland Park, KS . . . . . . .......(800) 526‑6529 MOBIL CUSTOMER ENGAGEMENT *Agent IQ Drew: Austin, TX . . . . . . . ....... (830) 708‑9370 NETWORK SECURITY Kansas Bankers Technologies Salina, KS . . . . . . . . . . ............ (888) 752‑8435 PAYMENTS *ICBA Payments Heather: Washington, D.C. . . . ...(800) 242‑4770 PORTFOLIO MANAGEMENT Central States Capital Markets Kansas City, MO . . . . . . . ....... (800) 851‑6459 *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS (913) 955‑3355 See ad pg. 21 PROMOTIONAL PRODUCTS Harland Clarke Newton, KS . . . . . . . . . .......... (800) 322‑0818 RETIREMENT PLANNING Central States Capital Markets Kansas City, MO . . . . . . . ....... (800) 851‑6459 First Bankers Banc Securities Overland Park, KS . . . . . . ....... (913) 469‑5400 SECONDARY MORTGAGE MARKET LENDING FHLBank Topeka Topeka, KS . . . . . . . . . . .......... (800) 933‑2988 Mortgage Investment Services Shawnee, KS . . . . . . . . . .......... (913) 390‑1010 SECURITY MONITORING Federal Protection Springfield, MO . . . . . . . ....... (800) 299‑5400 SUPPLEMENTAL HEALTH INSURANCE *UNICO Group Inc. Diana: Lenexa, KS | (800) 755‑0048 See ad pg. 28 TECHNOLOGY SERVICES Integris Olathe, KS . . . . . . . . . . ........... (325) 947‑5530 Kansas Bankers Technologies Salina, KS . . . . . . . . . . ............ (888) 752‑8435 KlariVis Roanoke, VA . . . . . . . . . .......... (540) 357-0011 *RESULTS Technology Darla: Overland Park, KS . . . . ....(877) 435‑8877 *QwickRate Dan: Marietta, GA . . . . . . .......(800) 285‑8626 *S&P Global Stacy: Charlottesville, VA . . . . ..... (434) 951‑4419 TELECOMMUNICATIONS CONSULTING Verge Network Solutions Inc. Oklahoma City, OK . . . . . ....... (405) 782‑8400 TELECOMMUNICATIONS SERVICES Verge Network Solutions Inc. Oklahoma City, OK . . . . . ....... (405) 782‑8400 TELECOMMUNICATIONS SYSTEMS Verge Network Solutions Inc. Oklahoma City, OK . . . . . ....... (405) 782‑8400 THIRD PARTY COMPLIANCE MANAGEMENT *Trust Exchange Leo: Austin, TX . . . . . . . . ......... (888) 777‑8434 THIRD PARTY RISK MANAGEMENT & CONSULTING *Trust Exchange Leo: Austin, TX . . . . . . . . ......... (888) 777‑8434 TITLE INSURANCE Security 1st Title Wichita, KS . . . . . . . . . . ...........(316) 267‑8371 WEBSITE DEVELOPMENT *S&P Global Stacy: Charlottesville, VA . . . . ..... (434) 951‑4419 WHOLESALE LENDING FHLBank Topeka Topeka, KS . . . . . . . . . . .......... (800) 933‑2988 Mortgage Investment Services Shawnee, KS . . . . . . . . . .......... (913) 390‑1010 Last Update: Sept. 10, 2024 Visit CBA online at www.cbak.com. 25 In Touch
x In partnership to grow Kansas’s community banks. www.fin-ed.info/cbak BANK WEBINARS Live & On-Demand 1 -JULY 2-JULY 7-JULY 8-JULY 9-JULY 10-JULY 14-JULY 15-JULY 16-JULY 17-JULY 18-JULY 21 -JULY 22-JULY 23-JULY 24-JULY 28-JULY 29-JULY 30-JULY 31 -JULY Advanced C&I Lending: Optimize & Expand Your Portfolio ACH Fundamentals & Best Practices Proven Steps to Successful Business Development in Any Economic Environment Mastercard Debit Card Chargebacks: Rules, Rights & Challenges Identifying ACH Third-Party Senders Writing Concise, Complete & Effective Loan Presentations Medallion & Signature Guarantee Risks, Rules & Best Practices Safe Deposit Box Disclosures, Due Diligence & Drilling Creating a Unique Strategic Plan for Your Financial Institution Volatile Lending: Navigating Tariffs, Immigration Shifts & Inflation TRID: Changed Circumstances & Revised Loan Estimates Unpacking Credit Reports for Mortgage & Consumer Lenders ACH Boomerang: Exceptions from the ODFI Perspective ACH WSUDs vs. Stop Payments: Clarifying the Confusion Frontline Series: Identifying Fraud on the Frontline Cybersecurity Incident Response & Mitigation Strategies 2-JUNE 3-JUNE 4-JUNE 5-JUNE 9-JUNE 10-JUNE 1 1 -JUNE 12-JUNE 16-JUNE 17-JUNE 18-JUNE 23-JUNE 24-JUNE 25-JUNE 26-JUNE 30-JUNE
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