2026 ISSUE 2 Official Publication of the Community Bankers Association of Kansas REGISTER TODAY 2026 ANNUAL CONVENTION & TRADE SHOW July 22-24, 2026
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4 FLOURISH Community Banking Strategy for Growth By Rebeca Romero Rainey, President and CEO, ICBA 6 Staying Power Fed’s Balance Sheet Has Some Duration, for Better or Worse By Jim Reber, President and CEO, ICBA Securities 8 AI’s Future in Banking Preparing for CECL Automation By Kate Randazzo, Content Marketing Manager, Abrigo 10 2026 Industry Outlook Community Bankers’ Top Challenges, Investments and Opportunities By Jason Young, Vice President of Product Management, CSI 11 2026 CBA Annual Golf Classic Tee Up for a Day of Golf, Networking & Fun 12 Accountability: The Key to Compliance Success By William J. Showalter, CRCM, CRP, Senior Consultant, Young & Associates Inc. 15 REGISTER TODAY 2026 Annual Convention & Trade Show July 22-24, 2026 16 ICBA Capital Summit May 4-7, 2026 | Washington, D.C. 17 Driving Deposit Growth Through Better Digital Banking Experiences By Terry Gore, Shazam 20 Why SBA Lending Holds Steady When the World Does Not By B:Side Capital 22 Anniversaries 23 Products and Services Reference List 25 Officers and Directors 26 Bank Webinars Live & On-Demand CONTENTS ISSUE 2 www.cbak.com ©2026 The Community Bankers Association of Kansas (CBAK) | MBR Connect DBA 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. 10 2026 INDUSTRY OUTLOOK 20 CONFIDENCE IN THE PROGRAM 4FLOURISH COMMUNITY BANKING STRATEGY FOR GROWTH 3 In Touch
FLOURISH COMMUNITY BANKING STRATEGY FOR GROWTH By REBECA ROMERO RAINEY President and CEO, ICBA As financial services continue to shift, community banks are positioned to be the anchors for the industry, supporting our customers and communities with a resiliency that transcends the environment. By continuing to lean into the personal relationships we build, we differentiate ourselves and bring immense value to those we serve. Doubling down on our relationship-based model means we’re supporting our customers by deploying new, efficient technology. We’re speeding up processes, enhancing our customers’ experiences and growing our connections with them, while retaining the attributes that are at the core of who we are and what we do. We simply need to fast-forward the tenets that already exist to address growing demands. Individually, community banks might need to have hard conversations to determine which solutions warrant their time and attention and which might not best serve their customers. The beauty of community banking is that it’s not one-size-fits-all, and each community bank can identify the new technologies and solutions that best support it. A Personalized Community Banking Strategy for Customer Growth For instance, as we think about customer retention and acquisition, and by extension, bank marketing, the needs of the individual communities we serve are paramount in today’s environment. Agricultural banks have established different services to support their farm-based communities than banks more attuned to the construction industry. Each of these segments has unique needs, and community banks shine by addressing them. It’s about identifying the personal needs of the collective, which is what we have always done. But now, with the pace of change, community banks must scale their services to maximize potential sooner rather than later. Maybe you are launching a new solution that speaks to a particular niche you serve, or a new process that simplifies customer engagement. Perhaps you are using existing technology more or in new ways. With any new opportunity, it’s about leaning into strengths and taking them to the next level for your customers. So, I encourage you to identify incremental actions you can take to expand your prospects. Look at what your peers are doing for inspiration. Post a question to ICBA Community. Seek out colleagues at ICBA LIVE. Engage with ICBA Preferred Service Providers, corporate members and ThinkTECH Accelerator participants. Whatever direction you choose, take steps to lean into community banking and this community. Without a doubt, we will shape the future of financial services one relationship-based solution at a time. 4 In Touch
Staying Power It appears that, if the nominee for the next Federal Reserve chairman is confirmed by the Senate, he will have to roll up his sleeves to achieve some of his monetary policy priorities. Not that Kevin Warsh isn’t up to the task. He served on the Fed’s board of governors for five years, from 2006 to 2011, before returning to academia, and so has first-hand experience with the workings of the board. This is unusual, but not unprecedented; two recent Fed chairmen, Ben Bernanke and Janet Yellen, served as governors, left and returned to lead the Fed. What makes Warsh’s expected confirmation intriguing are his past words and actions regarding the development and conduct of policy, juxtaposed with the Fed’s current balance sheet position. It could make for some interesting dialogue in upcoming meetings, and subsequent statements and press conferences. Here’s some background. First Lap Gov. Warsh was known as an inflation hawk during his years at the Fed, which coincided with the start of, and then proceeding through, the Great Financial Crisis (GFC). He participated in a shift of monetary policy from a restrictive stance to pop the real estate bubble in 2007, hiking fed funds all the way to 5.50% in the process, to a wholly stimulative policy in which the overnight rate dropped to 0.25% in barely over a year. The Fed under Chairman Bernanke initiated novel strategies to prevent financial markets from seizing up. Included were the first large-scale applications of the massive bond-buying scheme known as “quantitative easing” (QE). So, within 24 months of being a Fed governor, Warsh voted on tightening, easing and the purchase of over $1 trillion in government bonds. Along the way, he consented with the Fed’s Balance Sheet Has Some Duration, for Better or Worse By JIM REBER President and CEO, ICBA Securities 6 In Touch
chairman’s recommendations 100% of the time, which wasn’t unusual, as most proposals were unanimously approved by the Federal Open Market Committee (FOMC), of which each governor is a member. Toward the end of his tenure, his speeches began to voice at least caution in the continued buildup of the balance sheet, indicating concern about overstimulating an economy that was already borrowing at effectively zero interest rates. While by no means being radical, Warsh was considered by most fed-watchers in the “hawk” category. What’s Transpired Since Fast forward a decade to 2021. We had navigated past the GFC, only to face the COVID-19 pandemic. The Fed, now under the chairmanship of Jay Powell, once again cut overnight borrowing costs to near zero and, more pertinently, launched another QE phase that made all previous bond-buying escapades look timid. From March 2020 to August 2022, the Fed added more than $4 trillion in bonds to its balance sheet, for the expressed purpose of lowering the cost of borrowing for all of us. As it continued to buy at ever lower yields, the Fed’s escape route once the pandemic played out was always going to be fraught with peril. Since the balance sheet peaked at nearly $9 trillion in August 2022, the Fed has run off over 25% of its holdings. By “run off,” I mean they’ve let short-term Treasury bonds simply mature, without replacing them. The Fed’s bond collection has had a “barbell” structure: lots of short Treasuries and lots of very long mortgage-backed securities (MBS). As the shortest bonds have gone away, and the very longest bonds are now more highly weighted, the average maturities have correspondingly increased. Also, the MBS portfolio, which is nearly one-third of its holdings, is dominated by very low coupons. Currently, 93% of its MBS have stated interest rates of 3.5% or lower. Work To Do Why this matters: Warsh has written about his expectations to further shrink the balance sheet, even though the organic cash flows have decreased. He has been quoted as saying, “By draining as much as $2.5 trillion in excess reserves, the Fed would mitigate inflation …” So, it seems relevant to investigate how quickly (or slowly) it will take for $2.5 trillion to roll off. Here’s the tall task: The Treasury portfolio will shed about $2 trillion by 2031, and the MBS portfolio, depending on prepayments, will shrink by about $200 billion per year. So, if the Fed simply sits on its current holdings, we’re looking at a multiyear proposition to get the balance sheet to roughly $4 trillion. The alternative is to sell some of its holdings, which can be easily accomplished as the portfolio consists of high-quality, highly liquid bonds. The rub is that interest rates are likely to be under at least temporary pressure to rise, as the supply would need to be digested. That, of course, would be a means of ultimately keeping inflation under wraps, but it’s hard to see how the FOMC could be in a rate-cutting cycle during this wind-down; it would mean the Fed would be injecting and removing stimulus simultaneously. Conundrum indeed. Stay tuned! Chairman Warsh’s fed promises to deliver some headlines in 2026 and beyond. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities. 7 In Touch
AI’s Future in Banking Preparing for CECL Automation By KATE RANDAZZO Content Marketing Manager, Abrigo AI Assistance for the CECL Calculation Is Moving from Theoretical to Practical For community financial institutions, the conversation around the future of AI in banking is no longer theoretical. Leaders are asking practical questions about how AI helps banks operate more efficiently, where it delivers measurable value and how it can be applied while maintaining transparency and trust. Nowhere is transparency more important than in a community financial institution’s CECL calculation. Strengthening CECL Processes with AI Advances in automation and AI are creating new opportunities for teams to strengthen their CECL processes while maintaining the governance the standard requires. Now that the initial CECL implementation period is behind us, banks and credit unions are entering a new phase of figuring out how to manage their calculations most efficiently. The impact of AI on CECL processes will be most visible through enhancements that make complex processes easier to execute, explain and defend. The Evolving Role of AI in Banking and Why It Matters for CECL Across the industry, AI is helping banks reduce manual effort, improve consistency and find insights more efficiently. In areas like CECL, where accuracy, governance and documentation carry significant weight, these benefits are especially meaningful. Most community financial institutions (CFIs) have already made the foundational CECL decisions: • Which methodologies are appropriate for a portfolio • How reasonable and supportable forecasts should be applied • What governance framework supports consistent qualitative adjustments But making those decisions was only the beginning. Many institutions are discovering that CECL’s real challenge lies in execution. Manual workflows, disconnected systems and spreadsheet-driven processes can limit an institution’s ability to fully leverage the insight CECL is meant to provide. As portfolios grow and regulatory expectations mature, execution becomes the primary challenge. This is where many of the advantages of AI in banking begin to take shape, especially when paired with purpose-built CECL solutions. Using Automation and AI to Strengthen CECL Execution One of the most immediate benefits of AI in banking is its ability to reduce friction in operationally intensive processes. When it comes to CECL, automation streamlines data ingestion, accelerates calculations and standardizes workflows across portfolios and reporting periods. These capabilities help support more reliable reporting cycles and enable teams to manage documentation requirements more effectively. For decision-makers, this is where AI begins to deliver a tangible return on investment. Faster close cycles, fewer errors and greater confidence in results all contribute to stronger operational outcomes and better use of expert time. CECL teams no longer need to spend excessive time navigating tools or managing workarounds. Instead, they can focus on understanding results and making informed decisions. Platforms that incorporate AI will evolve from calculation engines into end-to-end systems that support analysis, documentation and review — without sacrificing human control or judgment. 8 In Touch
Maintaining Oversight and Trust as AI Adoption Grows Any discussion about the future of AI in banking must address governance and control. AI should not select methodologies, determine forecasts or apply qualitative adjustments. Those responsibilities must remain firmly within management’s purview. Where AI adds value in CECL is by supporting execution around established management decisions. One of the most resource-intensive parts of the process is documentation. Allowance results must be supported by clear, regulator-ready explanations that answer questions such as: • Why did the allowance change this period? • How were economic conditions incorporated? • Which assumptions had the most impact? AI offers a practical way to improve consistency and ensure compliance when answering these questions. Generative AI can help transform structured CECL data into complete, standardized narratives, making explanations easier to produce, review and maintain across reporting periods. The result is stronger documentation quality with fewer opportunities for omission or unfounded assertions. When used thoughtfully within well-governed systems, AI becomes a natural extension of modern CECL platforms. It The future of CECL closely mirrors the future of AI in banking as a whole. reinforces process discipline, supports audit readiness and helps institutions operate more efficiently without compromising transparency or control. This approach reflects the broader future of AI in banking: responsible innovation that strengthens oversight, improves outcomes and builds confidence with regulators and stakeholders. The Broader Impact of AI on CECL and Banking Strategy Looking ahead, the future of AI in banking will be shaped by usability and integration. Institutions that combine CECL expertise with modern automation and applied AI will be better positioned to reduce risk, improve efficiency and communicate results with confidence. For CECL teams, this means seeking solutions that simplify execution, support consistent analysis and help derive greater value from the decisions they have already made. These capabilities reflect a broader shift across banking, where AI is becoming a practical tool for improving efficiency, accuracy and insight across core processes. The future of CECL closely mirrors the future of AI in banking as a whole. Progress will continue to be driven by thoughtful innovation that improves outcomes while maintaining strong governance and professional judgment. Kate Randazzo is a content marketing manager at Abrigo, where she works with industry thought leaders to create digital content that helps financial institutions better serve their customers. Before joining Abrigo, Kate managed social media and produced articles for Campbell University’s quarterly magazine and other university content initiatives. She earned her bachelor’s degree in strategic communication and professional writing from Miami University. 9 In Touch
2026 Industry Outlook Community Bankers’ Top Challenges, Investments and Opportunities By JASON YOUNG Vice President of Product Management, CSI Rising competition and consumer expectations mean community financial institutions must operate more efficiently while delivering modern, personalized services. Meanwhile, advances in AI, open banking, cybersecurity and regulatory change are reshaping the industry and creating new opportunities for those who adapt. CSI recently surveyed banking leaders nationwide about how they are preparing for the year ahead. Their responses revealed cautious optimism and a focus on strengthening core capabilities while adopting new technologies. Foremost Challenge in 2026: AI Leaders increasingly view AI through a dual lens: a powerful driver of efficiency and automation across operations, but also a potential catalyst for fraud, scams and operational risk. Naturally, it remains a top concern for many in 2026. Institutions are gaining greater confidence in where AI can deliver real value, from automating routine tasks to strengthening security and supporting relationship-driven work. That confidence is most pronounced among larger community institutions, with 97% of banks holding $5 billion to $10 billion in assets saying they understand how AI can be applied in banking. As a result, the conversation has shifted from whether to adopt AI to how to integrate it responsibly. Success will depend on data readiness, governance frameworks and aligning AI use cases with existing workflows and risk management practices. Secondary Challenge in 2026: Cybersecurity and Data Privacy While the average cost of a financial services data breach declined from $6.08 million in 2024 to $5.56 million in 2025, cyberattacks still carry serious financial, reputational and regulatory consequences for institutions of all sizes. To remain secure, institutions must continue to prioritize investments in advanced monitoring and proactive threat-detection tools. Foundational practices, such as employee training and ongoing risk assessments, also remain essential to strengthening overall cyber resilience. Bankers’ Top Technology Investments The report shows that 2026 technology investments will be spread across multiple modernization efforts, signaling a balanced and diversified approach. Leading Investment in 2026: Efficiency Drivers Like Automation or AI Efficiency technologies remain the top investment priority, with 37% of bankers citing automation or AI as critical to improving operations, especially in improving back-office processes. As community banks face increased competition from all sides, they look to AI and automation to do more with less. Conversational AI is gaining momentum, but many institutions are still searching for its most valuable use cases. The real differentiator ahead will be how prepared institutions are to use their data, both to support AI initiatives and strengthen decision-making. Secondary Investment in 2026: Data Analytics/Actionable Insights & Digital Account Opening Many institutions recognize the value of analytics but are still working through data silos and integration challenges that limit the insights that can be gained. AI and clear analytics dashboards can be useful tools for turning data into action. Smart use of data helps institutions understand account holder behavior and identify areas to better serve them, including customizing offerings and promoting them digitally. Interpreting data to create a personalized experience also helps institutions solidify relationships and decrease attrition. 10 In Touch
Continued focus on digital account opening suggests that even institutions with established solutions see opportunities to streamline onboarding and back-office processes, with open banking increasingly serving as an enabling layer that accelerates integration. Bankers’ Top Opportunities for 2026 Bankers are strategically engaging with consumers and embracing transformative trends that promise to redefine banking operations and customer service in the years to come. Greatest Opportunity in 2026: Harnessing the Power of AI AI is increasingly top of mind for executives as they explore ways to transform operations, drive efficiency, fight fraud and sharpen decision-making. AI-powered tools present a unique opportunity to level the playing field against big banks by offering assistance and smart automation. Generative AI applications, in particular, hold the promise of hyper-personalized, around-the-clock service, allowing banks to leapfrog their capabilities and retain a competitive edge. From virtual assistants to content creation tools, the applications of generative AI are vast, offering financial institutions newfound agility and efficiency in meeting customer needs. Secondary Opportunity in 2026: Digital Assets 20% of bankers surveyed named digital assets (including stablecoins, tokenized deposits and cryptocurrencies) as one of their top opportunities, signaling growing curiosity about how these technologies could fit into future banking models. While most institutions remain in the early stages of exploration, interest is being driven by potential use cases around payments, efficiency and new revenue streams as the market continues to evolve. While interest in these assets grows, the regulatory landscape for stablecoins and tokenization is still evolving. At the end of 2025, the FDIC released its first rule for the recently passed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Most near-term applications remain limited, primarily in cross-border transactions, and any strategic engagement will require careful analysis and strong compliance frameworks. Navigating the Road Ahead for Community Banking As community banks look toward 2026, strategic focus and adaptability will be essential. While challenges remain, 86% of bankers report optimism about the future, signaling confidence in the industry’s direction. By strengthening foundational capabilities and embracing emerging technologies, institutions can position themselves not just to adapt, but to compete. This article only scratches the surface. For a more complete picture, scan the QR code to read the 2026 Banking Priorities Executive Report. https://www.csiweb.com/docs/banking-priorities-2026/ Jason Young serves as vice president of product management, helping guide the development of solutions that support CSI’s vision and strategy. With extensive experience in product development and integration, he plays a key role in advancing CSI’s products and services. 2026 CBA Annual Golf Classic Tee Up for a Day of Golf, Networking & Fun Join CBA Chairman Tanner Johnson and fellow bankers for a premier day on the course in Salina! Who Should Join the Par Tee? Everyone! CBA Members, Associate Members, bank staff and officers, prospective customers, spouses and guests are welcome. Event Details Monday, June 1, 2026 Salina Country Club, Salina, KS 9:30 a.m. shotgun start, 4-person scramble format Registration & Pricing $250 Early Bird Rate (Register by May 11!) $280 Regular Rate Registration includes: • 18 holes of golf • Golf cart and green fees • Boxed lunch • Post tournament reception • Prizes, food and drinks Scan the QR code to register today! https://www.cbak.com/events/2026annual-golf-classic/register 11 In Touch
Accountability: The Key to Compliance Success By WILLIAM J. SHOWALTER, CRCM, CRP Senior Consultant, Young & Associates Inc. Compliance is recognized by the financial industry as a high-risk function. Failure to manage it effectively can result in high costs to an institution, as witnessed by many supervisory enforcement actions and fair lending settlements over the years. Compliance management is an important element of an institution’s overall risk management efforts. It makes sense to ensure that it is “owned” by line managers, those whose operations will generate either compliance or noncompliance, just as with all other elements of the institution’s overall risk. To make compliance management work well — effectively and efficiently — line personnel need to be given the tools to succeed at compliance and then held responsible for their results. When senior management establishes accountability and all staff believe it, and compliance performance is measured meaningfully, positive compliance results can occur. As with other aspects of compliance management, identifying and categorizing levels and types of compliance risks are critical to both efficient operations and effective outcomes in any system of enforcing accountability. Noncompliance as Risk In recent years, federal agencies have made a fundamental shift in how they examine financial institutions for compliance within their overall examination process, adopting a risk-based methodology. The agencies’ programs are designed to focus 12 In Touch
examiner attention on areas within financial institutions that may pose the most significant risks, including compliance. The agencies work to promote a sound risk-management process at each regulated financial institution, one centered on the evaluation and management of risks. The agencies try to help financial institutions implement compliance programs that focus on anticipating, evaluating, managing and communicating about key compliance risks. “Compliance risk” is defined as that risk to earnings or capital that arises from violations of or nonconformance with laws, rules, regulations, prescribed practices or ethical standards. The agencies’ examination procedures provide that compliance risk can damage an institution through any or all of the following consequences: • Regulatory or judicial fines and penalties • Payments of damages to aggrieved parties • Voiding of contracts • Diminished reputation • Reduced franchise value (due to monetary and reputation losses or penalties) • Diminished business opportunities • Lessened expansion potential (e.g., when fair lending or Community Reinvestment Act problems delay or disallow corporate changes, mergers or acquisitions) The supervisory agencies recognize that an important element in avoiding these risks and their resultant costs is an effective accountability system, in which institution staff feel they own their roles in the overall program. Establishing Accountability An effective accountability system has to be built around a solid design. A few key elements are needed to make it succeed: management commitment; appropriate training of and communication to all staff; regular, independent testing of performance; and consistent enforcement of responsibility. Management Commitment Solid support from both the board of directors and senior management is vital to the success of any compliance (or other) management function. It should also be seen as in their best interests since the risks and penalties for noncompliance are tremendous, and the board and management are ultimately responsible for the institution’s compliance (and other) performance. Management and the board need to understand the true importance of compliance — it is not a job to be relegated to one person, or a small group, and ignored by everyone else. “Everyone else” includes those who drive the institution’s compliance performance, and they must be given the tools to succeed and held accountable for their results. Training and Communication Training is the foundation for effective compliance and accountability, since employees cannot be expected to comply Establishing and enforcing accountability can produce the lowest-cost compliance — compliance that is embedded in the institution’s normal operations rather than added on, with everyone working to get it right the first time. with the plethora of laws and regulations that govern banking today if they have not been given appropriate instruction on what is required of them. In structuring a compliance training program, the first step is a needs assessment — the types of products and services offered, current level of staff knowledge, problems identified in audits and examinations, and so forth. The goal of the compliance training is to provide line officers and other staff with the information they need to produce positive compliance results in their particular area or job. It is not to be an exercise in information overload. Therefore, the person in charge of training (whether classroom, online, etc.) needs to scope out the relevant laws and regulations to be covered, determine how to tie the rules into the institution’s functions, decide which media and tools to use, and so forth. Regular communication of compliance information is an important complement to regular training. It helps keep staff aware of changes in the compliance rules and expectations, as well as keeping compliance issues on their “radar screens.” Testing A robust internal compliance review program, including both periodic audits and ongoing monitoring, can serve several purposes. These include giving early warning of problems, providing a defense against litigation, meeting regulatory expectations, and furnishing measurements of department/area or individual performance. Enforcement Without consistent enforcement of accountability for compliance performance, all the other elements are pretty much for naught. If individual line managers and other personnel are “let off the hook” for poor compliance performance because, for example, of high loan production volume, the system is likely to fail. Making It Work Human nature being what it is, there needs to be incentives for good compliance performance and, perhaps more importantly, disincentives for poor results. In addition, if all staff are not held to the same standards, then any exhortations for good results and performance will ring hollow to everyone. Those that the 13 In Touch
institution tries to hold to proper standards will begin to resist, since they are expected to meet standards that others are not. Such a “program” is not fair and cannot succeed. Compliance performance elements should be factored into job descriptions, performance evaluations and incentive pay. It needs to be clear that line managers are ultimately responsible and accountable for compliance performance in their areas, and that compliance is an explicit part of everyone’s job. If there are line managers who cannot or will not take responsibility for their own or their area’s compliance performance and, therefore, expose the institution to risk, the institution should send them packing and replace them with managers who are positive about compliance issues and willing to take on this important obligation. Otherwise, the institution has to pay for expensive, redundant processes to check the work of that person(s) or area and fix their errors. Running such a “fix-it” shop is not an efficient way to manage compliance. Establishing and enforcing accountability can produce the lowest-cost compliance — compliance that is embedded in the institution’s normal operations rather than added on, with everyone working to get it right the first time. A useful tool for running an accountability system is an accountability matrix, which can be customized to fit an institution’s particular situation, structure and needs. It can help assure management that someone or an area has been designated as responsible for each compliance rule or issue that impacts its lines of business. The matrix should outline the rules or issues, who is responsible for them, which areas they affect, and so forth. Conclusion As discussed, accountability for compliance performance — good or bad — is essential for an institution’s success in effectively managing its compliance function. Properly structured and enforced, a strong accountability program helps ensure cost-effective, positive compliance results. William J. Showalter, CRCM, CRP, is a senior consultant with Young & Associates Inc. (www.younginc.com), with over 30 years of experience in compliance consulting, advising and assisting financial institutions on consumer compliance and compliance management issues. He also develops and conducts compliance training programs for individual banks and their trade associations, and has authored or co-authored numerous compliance publications and articles. Bill can be reached at (330) 678-0524 or wshowalter@younginc.com. MEMBER FDIC 40years GROWING STRONGER TOGETHER Lending Services Operational Services Audit Services* 800-347-4MIB mibanc.com * Audit Services are offered thru MIB Banc Services, LLC, a subsidiary of our holding company. 14 In Touch
REGISTER TODAY 2026 Annual Convention & Trade Show July 22-24, 2026 Sheraton Overland Park Hotel at the Convention Center 6100 College Blvd. Overland Park, KS 66211 Scan the QR code to register today! https://www.cbak.com/ convention-and-trade-show
Join community bankers from across the country in Washington, D.C., to champion the role of community banking. Connect directly with lawmakers and regulators, share the real-world stories behind your work, and influence policies that strengthen your community. REGISTRATION IS FREE FOR ALL OF OUR NATION'S COMMUNITY BANKERS. ICBA Capital Summit May 4–7, 2026 | Washington, D.C. Register Today. icba.org/capitalsummit Community Banks Power Local Economies Join us in Washington to share your story with policymakers.
Driving Deposit Growth Through Better Digital Banking Experiences By TERRY GORE Shazam Deposit growth isn’t as simple as it used to be. Community banks across the country feel that shift every day. For decades, competitive interest rates and strong local relationships were enough to bring in new deposits. Today, those factors still matter, but they’re no longer the whole story. Modern banking consumers expect something more: a seamless digital experience that fits naturally into their everyday lives. Whether they’re opening an account, checking balances on their phone or exploring new financial products, they want the process to be quick, intuitive and personalized. When it’s not, they won’t hesitate to move on. That’s why digital banking is no longer just a convenience — it’s one of the most powerful drivers of deposit growth. Community banks that invest in thoughtful, user-friendly digital experiences are discovering they can strengthen customer relationships, attract new accountholders and grow deposits in ways that weren’t possible before. The New Realities Shaping Deposit Growth Just five years ago, community banks operated within an environment where incremental technology upgrades could sustain customer expectations. That is no longer the case. Several converging trends have fundamentally changed deposit-growth dynamics. 1. Intensifying Competitive Pressure Traditional banks now compete not only with each other but with a broad ecosystem of financial service providers: • Online-only banks offering streamlined digital interfaces • Large national institutions with advanced technology infrastructures • Fintech providers emphasizing highly specialized, intuitive experiences • Nontraditional firms entering financial services through embedded banking Many competitors differentiate on digital convenience rather than geography or relationships. For customers, switching providers is faster and easier than ever, reducing the historical “stickiness” of deposit accounts. 2. Rising Expectations Shaped by Broader Digital Experiences Consumers engage daily with high-performing digital platforms in retail, transportation, entertainment and communication. Their expectations for ease of use, personalization and immediacy extend into financial services. When banking tools feel outdated or require unnecessary steps, frustration occurs quickly — and often leads to abandonment. The gap between what customers experience digitally in other sectors and what many community institutions provide has widened. Addressing that gap is now essential to attracting and retaining deposits. 3. Rate Sensitivity Is No Longer the Primary Differentiator Competitive pricing remains a factor, but it no longer drives most deposit decisions. Customers increasingly prioritize: • The speed of opening an account • The simplicity of everyday banking • Personalized financial insights • A consistent experience across devices In many cases, customers will accept slightly lower interest rates if the digital experience is materially stronger. The Digital Experience as a Strategic Growth Engine Digital banking used to be treated as just another service channel — something accountholders could use alongside branches and call centers. It now plays a central role in nearly every stage of the accountholder lifecycle — from discovery to onboarding to long-term engagement. Institutions that treat digital capabilities as a strategic investment rather than a functional requirement are better positioned to strengthen relationships and grow deposits sustainably. Seamless Account Opening Drives Higher Conversions For many prospective accountholders, the first direct interaction with a bank occurs through a digital account-opening process. Even small points of friction — poor mobile optimization, unclear instructions, lengthy data entry — can cause abandonment. On the other hand, a streamlined onboarding experience increases application completion rates, reduces time to funding, minimizes manual intervention and captures deposits that might otherwise shift to digital-first competitors. Given that account opening is often the most vulnerable point in the customer journey, optimizing this process delivers immediate and measurable returns. Mobile Banking as the Primary Engagement Channel Mobile is now the dominant channel for day-to-day banking. Customers rely on their phones to monitor balances, review transactions, initiate payments, receive alerts and access financial management tools. 17 In Touch
When the mobile experience is reliable, intuitive and consistent, engagement naturally increases. Higher engagement correlates strongly with deeper deposit relationships and improved retention. Personalized Insights Strengthen Loyalty One of digital banking’s biggest advantages is the ability to present meaningful insights tailored to each accountholder. For example, customers might see their spending trends for the month, alerts about unusual activity, suggestions for saving opportunities or personalized product recommendations. When presented thoughtfully, these insights shift digital banking from a transactional tool to an advisory resource, enhancing accountholder’s trust and positioning the institution as a partner in the customer’s financial life. What Today’s Accountholders Expect From Digital Banking Features alone do not define an effective digital experience. Customers evaluate digital banking based on broader qualities that determine whether they perceive the institution as modern, trustworthy and easy to work with. • Effortless Navigation: Customers expect essential functions to be accessible within seconds; they don’t want to hunt for basic functions or navigate confusing menus. The most successful platforms translate complex tasks into simplified, intuitive workflows. • Personalization: Customers want to feel like their bank understands them. Generic dashboards and one-size-fits-all messaging no longer resonate. Personalized content fosters a sense of being understood and valued. • Cross-Device Accessibility: Modern consumers move fluidly between smartphones, tablets, laptops and desktops. They expect the banking experience to feel consistent across devices. • Security and Transparency: Security remains a top priority. Strong authentication, clear fraud-prevention measures and transparent alerts are essential to maintaining trust. When these elements align, the digital banking experience feels trustworthy and convenient, reinforcing long-term deposit stability and strengthening the bank-customer relationship. How DigiHive™ Digital Banking Supports Modern Deposit-Growth Strategies For community banks seeking digital capabilities that align with their strategic objectives, platform design and flexibility are critical. DigiHive™ digital banking, developed by SHAZAM®, focuses on enabling financial institutions to deliver modern digital experiences while maintaining the personal service that differentiates community banking. The platform offers flexible capabilities that help institutions strengthen relationships with accountholders while supporting measurable growth. 1. A Seamless, Consistent Experience Across Devices Accountholders interact with digital banking in diverse contexts. They might check balances on their phone, review transactions on a tablet and apply for a loan on a laptop. DigiHive is designed to deliver a unified experience across all these environments, reducing confusion and minimizing friction. A consistent interface encourages self-service and reinforces accountholders’ sense of reliability — both key drivers of deposit satisfaction and retention. 2. Meaningful Personalization Through Actionable Insights Rather than relying on static dashboards, DigiHive surfaces relevant information tailored to each accountholder’s behavior. For example, a customer logging in might immediately see a snapshot of recent spending patterns, reminders about upcoming bills, opportunities to save more effectively or suggestions for relevant financial products. These capabilities move beyond informational alerts to support proactive financial decision-making, which strengthens engagement and helps customers derive greater value from the institution. 3. Data-Driven Marketing And Cross-Selling Community banks sit on a wealth of valuable accountholder data but often lack the tools to translate it into targeted, actionable opportunities. DigiHive helps bridge that gap by transforming account data into opportunities for smarter marketing and cross-selling. Instead of broad, generic campaigns, banks can identify moments when accountholders are most likely to benefit from specific products and show them recommendations for higher-yield accounts, relevant lending options or investment tools These targeted recommendations feel helpful rather than promotional and can lead to stronger relationships and higher deposit balances. 4. Streamlined Account Servicing Everyday banking tasks — from updating personal information to transferring funds or opening an additional account — must feel straightforward. When servicing processes are simplified, accountholders are more likely to complete transactions independently. This not only decreases the operational burdens on staff but also encourages deeper connections with the institution, translating directly into more stable and expandable deposit relationships. 5. Technology That Levels the Field Large banks continue to invest heavily in technology. For community institutions, matching that scale directly is unrealistic. However, advanced platforms like DigiHive allow them to offer modern digital capabilities without sacrificing the personal attention that differentiates local banking. 18 In Touch
That combination of human connection and strong digital performance creates a compelling value proposition — one that resonates with consumers seeking both convenience and trust. Why Now Is the Right Time to Invest in Digital Banking The financial landscape is evolving rapidly. Tight margins, rising competition and shifting customer expectations elevate the importance of digital transformation. Incremental improvements to legacy systems are unlikely to meet the demands of the next five years. Strategic investment in digital banking now offers several advantages: • Higher engagement through intuitive interfaces and personalized content • Better conversion through streamlined onboarding • Improved cross-selling via data-driven recommendations • Enhanced customer loyalty through consistent and user-friendly interactions • Sustainable deposit growth supported by deeper, more digitally connected relationships Digital banking has become foundational — not optional — for long-term deposit growth planning. Looking Ahead: Digital Experience as a Core Competitive Asset New technologies such as predictive analytics, AI-driven insights and advanced personalization will further expand what digital banking can deliver. Early adopters who integrate these capabilities will gain significant advantages: • Anticipating customer needs before they arise • Delivering more tailored financial experiences • Increasing retention in a competitive environment • Strengthening their brand as a modern, relationship-centered institution Community banks have a unique strength: their deep relationships and community presence. When paired with modern digital capabilities, these strengths create a differentiated competitive model — one well-suited for sustainable deposit growth. Platforms like DigiHive enable institutions to bring this model to life, transforming everyday digital interactions into meaningful engagement moments that reinforce trust and loyalty. For more information, contact Terry Gore, director of sales, digital banking at tgore@shazam.net or visit shazam.net/digihive. Compliance. Confidence. Credibility. When it comes to outsourcing HR, not all partners are created equal. Syndeo is the only IRS-certified, ESAC accredited PEO serving your region’s bank. syndeohro.com Your premier HR partner. 19 In Touch
There is no shortage of reasons to feel uneasy right now. Economic signals are mixed. Politics are loud and unresolved. Geopolitics remain unsettled. Social institutions feel stretched thin. None of this is new, but the overlap is what makes this moment feel heavier. History would call this a pressure phase. A period where systems are tested not by a single shock, but by sustained strain. In moments like this, the instinct is to retreat. Capital pulls back. Decision-making slows. Risk tolerance collapses into caution. Yet history also shows that some systems do not just survive these periods. They quietly prove their value. SBA lending is one of those systems. Across crisis eras, from the financial crisis to the pandemic and into the current adjustment cycle, SBA lending has played the same role again and again. It acts as connective tissue between lenders who want to lend and businesses that still need to build, buy, hire and adapt. That role matters most when uncertainty is highest. Part of what makes SBA lending stable is structural, not emotional. The guarantee mechanism lowers lender exposure without eliminating discipline. Banks still underwrite real businesses with real cash flow. The SBA simply absorbs a portion of the downside risk, which allows capital to move when it otherwise would not. Stability comes not from avoiding risk, but from distributing it intelligently. That distinction matters in an era defined by asymmetry. Capital markets now reward scale, speed and technological leverage. Small businesses do not compete on those terms. They compete on durability, local knowledge and long-term horizons. SBA programs align with those realities by offering longer terms, predictable Why SBA Lending Holds Steady When the World Does Not By B:SIDE CAPITAL 20 In Touch
pricing and financing structures that match how small businesses actually operate. The current macro environment only reinforces this role. A weaker dollar raises input costs and pressures margins. Tariffs and supply chain realignments force operational changes. Labor dynamics continue to shift. These are not reasons to stop investing. They are reasons to invest with patience and structure. SBA lending provides both. For lenders, SBA loans create portfolio balance during volatile cycles. Guarantees reduce loss severity. Secondary market liquidity supports capital efficiency. Fee income adds consistency when traditional commercial pipelines slow. This is not theoretical. In past downturns, regions with active SBA lending recovered faster, maintained higher employment and preserved more small businesses through the cycle. For borrowers, SBA lending offers breathing room. Longer amortizations lower the monthly pressure. Working capital and refinance options stabilize balance sheets. Access to capital during uncertain periods allows owners to focus on operations rather than survival. That space is often the difference between endurance and failure. Confidence in a program does not come from slogans or headlines. It comes from repetition. From watching a system Confidence in a program does not come from slogans or headlines. It comes from repetition. 22318 Midland Drive • Shawnee, KS 66226 • NMLS #194708 YEARS 26 Local Partners, Shared Values, Stronger Communities We’re not a national giant – we’re your local wholesale lending partner. Together, we bring your customers the best of both worlds: • Fannie Mae Seller/Servicer • Government programs – FHA, VA, and USDA-GRH • Local expertise – We live and work in your community • Trusted partnership – Backed by 26 years of service • More options – Flexible lending without losing the personal touch Andrew Holtgraves Senior Vice President 913-558-2555 andrew@mischomeloans.com PARTNER WITH US perform its function across different political administrations, regulatory climates and economic regimes. SBA lending has done that work quietly for decades. At B:Side Capital, our confidence in the SBA is not abstract. It is earned through cycles. Through deals completed when sentiment was negative and liquidity was tight. Through partnerships with banks who understand that serving small businesses is not about timing the cycle but staying in the game long enough to matter. We are not blind to the noise. We simply refuse to let it dictate our posture. Crisis eras reward institutions that stay disciplined, boring and consistent while others chase novelty or freeze in fear. SBA lending is not flashy. It does not promise shortcuts. It offers structure, patience and continuity. In times like these, that is not a weakness. It is an advantage. 21 In Touch
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