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4 FLOURISH Battling Check Fraud Together By Rebeca Romero Rainey, President and CEO, ICBA 6 PORTFOLIO MANAGEMENT In With the New Introducing ICBA Securities’ New Endorsed Broker-Dealer By Jim Reber, CPA, CFA, Managing Director of ICBA Relations, and Ryan W. Hayhurst, President, The Baker Group 8 INNOVATION STATION Leveling up Fraud Mitigation By Wayne Miller, Executive Vice President and Chief Innovation Officer, ICBA 10 Building the Foundation for Effective AI Closing the Data Readiness Gap By Ajay John, VP of Data Science and AI, CSI 12 Community Bank Bond Portfolios Are Finally Turning the Corner By Ryan W. Hayhurst, Managing Partner and President, The Baker Group 14 Risk Assessment Is the BSA Key By William J. Showalter, CRCM, CRP, Senior Consultant, Young & Associates Inc. 17 Get Involved with a 2026 CBA Committee 18 REGISTER TODAY 2026 Annual Convention & Trade Show July 22-24, 2026 21 Welcome to Our New Associate Members! 22 Anniversaries 23 Products and Services Reference List 25 Officers and Directors 26 Real Training For Real Community Bank Challenges 40+ Live & On-Demand Webinars | Summer 2026 CONTENTS ISSUE 3 cbak.com ©2026 The Community Bankers Association of Kansas (CBAK) | MBR Connect™, formerly The newsLINK Group LLC. All rights reserved. In Touch is published six times per year 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 BUILDING THE FOUNDATION FOR EFFECTIVE AI 14 RISK ASSESSMENT IS THE BSA KEY 4FLOURISH BATTLING CHECK FRAUD TOGETHER 3 In Touch
FLOURISH BATTLING CHECK FRAUD Together By REBECA ROMERO RAINEY President and CEO, ICBA It’s becoming a frequent and unfortunate occurrence to hear community bankers recounting stories of fraud, and the attacks range from sophisticated digital scams to paper-based fraud rings. On one hand, we’re dealing with AI-induced deep fakes and advanced phishing scams. On the other, we’re having a real “Back to the Future” moment as old-school check washing makes a comeback, supported by digital image-altering technology that makes it simpler than ever before. But with all we’re fighting, check fraud remains one of the largest single contributors to our fraud problem. Industry data puts check fraud losses over the course of a year at $21 billion, and organized crime continues to ratchet up the intensity of the attacks. Despite these constant issues, checks remain a payment instrument of choice for our customers. In fact, the latest survey from the Association for Financial Professionals (AFP) found that while 63% of businesses experienced attempted or actual check fraud in 2024, 91% reported using checks, and more than 75% said they had no immediate plans to stop using them. Thus, we still see a steady volume of checks flowing through our organizations, a rate that our customers demand. To continue offering checks safely, we all must seek out advanced risk mitigation efforts. Fortunately, that’s where ICBA can help. For one, we offer our Check Fraud Resource Center, which provides guides and online courses to help community banks better prepare for emerging fraud scenarios. We also have delivered a way to connect with technology providers via our Solutions Directory, which aggregates community bank-supportive service providers that can help to address fraud. In addition, to aid customer awareness and education, we developed a customizable news release and check fraud prevention flyer that can be shared within your communities. Perhaps one of the most powerful tools at our disposal, ICBA Community has a members-only fraud subgroup, which allows community bankers to share information on the latest scams and offer heads-up alerts on emerging threats. This important information sharing helps community banks to be on the lookout for fraud that might affect them. Fraud is ever-present, and locking arms as a community will empower us to address all that is coming this way today and all that is on the horizon for tomorrow. While we can always count on new threats, together with the right knowledge and tools, we can mitigate and lessen losses, supporting a safer, more secure environment for our customers and the communities we serve. 4 In Touch
PORTFOLIO MANAGEMENT IN WITH THE NEW Introducing ICBA Securities’ New Endorsed Broker-Dealer By JIM REBER, CPA, CFA, Managing Director of ICBA Relations, and RYAN W. HAYHURST, President, The Baker Group Jim Reber: Ryan, what a difference a couple of months makes. Last fall, ICBA Securities’ board of directors asked management to study the depository fixed-income broker market and make a proposal for a relationship that would carry ICBA and its members into the future. From that, we identified The Baker Group as the first, best option. The board agreed, and after a couple of months of negotiations, we sealed the deal in early March. Tell us about The Baker Group and your multi-decade career with one firm. Ryan Hayhurst: The Baker Group was founded in 1979 by a community banker who saw a need for a firm that could help community banks manage their interest rate risk through investment portfolio management. Today, we have grown to one of the largest, independently owned, full-service broker-dealers serving community banks nationwide with a focus on education, asset-liability management and investment portfolio management. Much like how our clients are community banks, I like to think of us as a “community broker-dealer” focused on the needs of the customers we serve rather than an out-of-state owner that only cares about the bottom line. As for me, I joined The Baker Group in 1991 as a wet-behind-the-ears college intern, and I immediately fell in love with the people and culture that make up the Baker family. Thirty-five years later, I couldn’t imagine ever working for another company. Jim: Next, what can you tell us about Baker’s interest in and response to ICBA’s invitation to submit a proposal last year? Ryan: We were thrilled when ICBA reached out and asked us to submit a proposal to become the newly endorsed broker-dealer for ICBA Securities. As you know, The Baker Group was a finalist back in 1988 when ICBA selected its first endorsed broker, and unfortunately, we came in second place. But we didn’t give up. We developed new and better tools, we expanded our education platform, doing 50 to 70 events a year, and we focused on what community banks needed. Thirty-seven years later, the opportunity came around again, and we jumped on the chance to submit a proposal. Community banks are the lifeblood of America, and this endorsement will allow us to take our shared mission of serving and supporting community banks to an even bigger audience. Jim: Many of our readers know there has been another twist to this ICBA Securities-Baker Group arrangement, which is that I joined the Baker team effective April 1. I, too, have had a terrific run with one broker. I started as an ICBA Securities sales rep in 1992 and succeeded the legendary C.J. Pickering as president and CEO in 2005. ICBA was a fantastic employer, and I got the best of both worlds in my view: a position in the bond business where I’ve got some history (notoriety?) and continued collaboration with some of the best in the business among all three ICBA pillars: advocacy, innovation and education. So, there’s a lot to be said for continuity. (And I’m working on the “we” and “they” pronouns as I transition, so be patient.) Ryan: I can’t tell you how excited we are to have you join the Baker team. Your experience, reputation and integrity are unparalleled in this industry. In fact, once the announcement was made that we would become the new endorsed broker for ICBA Securities, the very first question every banker and state association asked me was, “Is Jim Reber coming to Baker?” I am proud to say, “Yes!” Jim: We should also tell our readers they’ll be seeing some changes to this Portfolio Management column. One of the many reasons Baker was invited to contract with ICBA is its deep bench of strategists and speakers. What are your plans for this column and what can you tell us about Baker’s commitment to community bank bond education? Ryan: Education is one of our pillars, along with investment portfolio and asset-liability management. We remain committed to continuing our long history of providing in-person and virtual education programs designed specifically for community banks. As for this column, we plan to continue your legacy of providing valuable (and entertaining!) investment insight, but through a range of contributors. You’ll be hearing from not only me but also several other members of our Financial Strategies Group. Jim: Let’s not forget about Baker’s capacity to partner with ICBA’s state affiliates, 6 In Touch
which was a matter of high rank in the selection process. Ryan: That’s right. We understand just how important state banking associations are to community banks. We are bringing endorsements from ICBA state affiliates in Illinois, Texas, Indiana and Alabama into the mix, so we know what it takes to work with these associations as they fight for community banks in their state. We have partnered with state banking associations for more than four decades to provide industry-leading education and financial support, and we look forward to working with all 34 state associations that endorse ICBA Securities. Jim: Very good. I am honored that The Baker Group offered me this position, and I intend to remain visible to ICBA members and attend conventions whenever practicable. In the near term, my objective is to get Baker integrated into the ICBA extended family as efficiently as possible. I’m beyond excited about this new chapter for ICBA Securities and The Baker Group. Ryan: I couldn’t agree more, Jim. Welcome aboard! Jim Reber, CPA, CFA, is managing director of ICBA relations at The Baker Group. Ryan W. Hayhurst is president of The Baker Group, ICBA Securities’ endorsed broker-dealer. 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. 7 In Touch
When asked why he robbed banks, notorious 1930s-era bank robber Willie Sutton famously replied, “Because that’s where the money is.” While his response was purposely tongue-in-cheek, stopping criminals is a reality that community banks face daily. For as long as banks have existed, fraudsters have been targeting them. Today, a complicated mix of attacks that range from old-school check washing to AI-based deepfake scams and everything in between plagues our defenses. It’s not just whack-amole defense; it’s manning multiple fronts. Community banks must address analog fraud while defending against new digital threats — a tall order no matter how you look at it. Fortunately, community banks are in a state of constant vigilance, so fraud mitigation has become second nature. From historical safeguards like Positive Pay to new solutions like advanced anomaly detection, community banks execute fraud mitigation strategies using all the tools in their toolboxes. From Reactive to Proactive These resources now include solutions that help community banks move from a reactive to a proactive stance in addressing fraud. For instance, ICBA ThinkTECH Accelerator alum Socratix AI enables community banks to build secure, enterprise-grade AI agents that help fraud and risk teams investigate alerts in real-time and deliver structured insights. Meanwhile, Sardine, another ThinkTECH Accelerator participant, monitors thousands of signals to predict the likelihood of a scam in progress, resulting in more robust fraud detection protocols. FRAUD MITIGATION Leveling up By WAYNE MILLER Executive Vice President and Chief Innovation Officer, ICBA INNOVATION STATION 8 In Touch
As fast as the fraud landscape evolves, so, too, do the solutions to stop it in its tracks. Another ThinkTECH Accelerator graduate, Overwatch Data, offers dark web monitoring to alert community banks to compromised card and check numbers, helping to prevent fraud campaigns, data breaches and cyberattacks before they affect customers or staff. And because so much of what takes place today is on cell phones, we can use tools that identify behavior that seems out of sync with normal activities. ICBA Support I share these solutions with you not to push certain products, but to raise awareness of the growing number of resources available to your bank. As fast as the fraud landscape evolves, so, too, do the solutions to stop it in its tracks. ICBA Innovation is here to support your fraud mitigation efforts. In every cycle, the ThinkTECH Accelerator selection and advisory committee seeks out the latest technologies that support fraud prevention and mitigation, because fraud is a constant consideration for all bankers. We encourage you to engage with us as we launch future cohorts. Join other bankers at the Accelerator to hear from the companies that will be part of the next generation of fraud solutions. While we can’t eliminate fraud completely, we can minimize its impact. And with new technologies at our disposal, we’re poised to be stronger than ever. Wayne Miller is executive vice president and chief innovation officer at the Independent Community Bankers of America. 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 9 In Touch
Building the Foundation for Effective AI Artificial intelligence is quickly transforming financial services. For community banks, this shift brings both opportunity and challenge. It can strengthen fraud prevention, improve efficiency and deliver deeper customer insight. At the same time, it is accelerating AI-driven fraud and social engineering threats. Adopting AI isn’t just about adding new tools. To truly benefit and stay protected, banks need to address underlying data readiness gaps. Understanding the Data Readiness Gap Despite having access to vast amounts of data, many institutions struggle to generate timely, reliable insights. Fragmented systems, inconsistent data quality and legacy infrastructure limit their ability to use data effectively. As a result, AI initiatives frequently stall before delivering meaningful results. This challenge is especially pronounced for community and regional financial institutions, which often operate with leaner teams and fewer data resources while facing growing competition from fintechs and larger banks investing heavily in AI. At the core is the growing volume of data. While it should enable better decisions, many organizations lack the foundation to make it usable. Without unified, well-governed data, even strong strategies fail to translate into actionable insight. Several common obstacles contribute to this gap: • Siloed Systems Across Departments: Disconnected platforms prevent a unified view of customers and transactions, limiting visibility across the organization. • Inconsistent or Poor-Quality Data: Inconsistent formats, duplicate records and incomplete fields reduce reliability and undermine confidence in analytics. • Legacy Core Infrastructure: Older systems limit integration and data sharing, making it harder to support modern applications and real-time access. • Lack of Clear Data Ownership and Governance: Lack of ownership leads to inconsistent standards, reducing trust in data and complicating compliance. These challenges collectively create the data readiness gap, and without the infrastructure needed to connect and structure this data, institutions will struggle to unlock its full value. A Strategic Framework for Building AI-Ready Data To compete in a data-driven landscape, institutions must close the data readiness gap. This starts with understanding how data flows across the organization and identifying where visibility is limited. 1. Start With Visibility: Understand Where Insight Breaks Down Before ramping up AI initiatives, identify where the data is being roadblocked. Mapping data flows across systems and departments helps uncover integration gaps and bottlenecks, allowing organizations to prioritize high-impact improvements. Putting this into practice starts with a few essential actions: • Integrate Siloed Systems: Disconnected systems fragment the customer view. Integrating them through APIs or modern platforms helps unify data into a consistent, usable view. • Modernize Data Pipelines: Outdated pipelines slow data movement, which limits responsiveness, while modern tools streamline data flow between systems to improve speed and reliability. • Align Analytics With Business Workflows: Tie insights to clear actions and owners so they drive daily processes, not just sit in dashboards. Closing the Data Readiness Gap By AJAY JOHN, VP of Data Science and AI, CSI 10 In Touch
A successful AI-readiness effort begins with a clear use case, defined ownership, measurable outcomes, and strong controls for data quality and access. Understanding these friction points helps prioritize improvements that will deliver measurable business value while creating a clearer path toward unified, decision-ready data. 2. Establish Strong Data Governance Once visibility into data flows is established, the next step is implementing strong data governance. However, many institutions are still working to mature these capabilities. According to CSI’s 2026 Banking Priorities Executive Report, only 11% of community banking leaders rate their data strategy as highly effective, highlighting the need for stronger governance and data management practices. To strengthen governance, institutions should focus on several key areas: • Establish Operational Data Governance: Effective governance means each critical data element has a business owner, a technical owner, a clear definition, a defined lineage path, a quality expectation and an access policy. • Implement Data Quality Monitoring and Controls: Regular validation catches errors early. As banks adopt AI through partners, this also requires strong vendor governance, data-sharing controls and ongoing monitoring. • Embed Compliance and Security from the Start: Strong governance ensures data meets regulatory and cybersecurity requirements. Strong governance improves data quality but also builds the trust necessary to confidently adopt AI-driven insights. 3. Establish Semantic Context for AI Beyond governance and consolidation, institutions must also ensure that their data carries meaningful context. AI systems interpret data based on the information they are given. If data elements lack clear definitions or relationships, AI models may struggle to understand how different data points connect to real-world outcomes. Establishing semantic context helps solve this problem. Semantic context becomes critical when AI must interpret business meaning rather than just process raw data. For instance, in lending, statuses such as “past due,” “deferred” and “restructured” may appear similar across systems but reflect very different levels of risk. Without clear semantic definitions, AI may misclassify borrowers and trigger the wrong actions. By defining what these terms mean, how they relate and where they apply, institutions enable AI to generate more accurate risk insights and support more effective decision-making. With clear semantic context in place, institutions are better positioned to translate data into insights that drive more confident, consistent decisions. Where to Start: Practical First Steps for Growing Teams For community banks with limited staff and tight budgets, closing the data readiness gap doesn’t require a large-scale transformation. The key is to start focused and intentional. A successful AI-readiness effort begins with a clear use case, defined ownership, measurable outcomes, and strong controls for data quality and access. Rather than trying to modernize everything at once, banks can prioritize a high-impact use case, connect only the systems that support it and standardize a small set of critical data. This targeted approach allows institutions to demonstrate value quickly while building a foundation to scale over time. Unlock AI’s Potential Through Data Readiness Artificial intelligence offers financial institutions significant opportunities to improve decision-making, efficiency and customer experience. However, capturing this value requires data that is unified and ready for action. For deeper insights into the technology priorities shaping the industry, scan the QR code to explore the 2026 Banking Priorities Executive Report. https://www.csiweb.com/docs/banking-priorities-2026/ Ajay John is VP of data science and AI, leading teams that build data and AI solutions for financial institutions. He provides over 15 years of experience across banking, insurance and technology. 11 In Touch
Community Bank Bond Portfolios ARE FINALLY TURNING THE CORNER By RYAN W. HAYHURST, Managing Partner and President, The Baker Group For more than a decade, community bank bond portfolios languished under the weight of the Fed’s zero interest rate policy (ZIRP). Portfolios filled with higher-yielding bonds that matured or got called saw their yield slowly erode as the average bank portfolio yield fell from more than 5% in 2007 to less than 2% in 2021. In fact, bank holdings of low-yielding bonds (I’ll define that as less than 2%) have exceeded their holdings of high-yielding bonds (greater than 4%) for the last 13 years. But the Fed’s aggressive tightening cycle of 2022-2023 and the subsequent surge in bond yields have helped banks turn the page on the era of low-yielding bonds. For the first time since 2012, the percentage of bonds yielding 4% or more has surpassed the percentage yielding less than 2% (see chart). It’s a crossover that most bankers didn’t dare imagine just a few years ago. And it represents both a milestone worth celebrating and a call-to-action portfolio managers can’t afford to ignore. or prepaid ahead of schedule, banks reinvested the proceeds into a market offering historically low yields. By 2012, the percentage of sub-2% bonds owned by banks had surpassed the share of bonds yielding more than 4% — and it stayed that way for more than a decade. The pain was compounded further when rates finally did rise sharply in 2022-2023. Banks sitting on portfolios stuffed with 1-2% bonds watched their unrealized losses balloon, constraining capital, complicating balance sheets and limiting strategic flexibility. It was, for many institutions, the worst of both worlds. How We Got Here To understand where bond portfolios stand today, it helps to rewind to the era before the financial crisis. In 2007, nearly 90% of the bonds held by community banks carried yields above 4%. Rates were high, yield was plentiful and the idea that the Federal Reserve could actually cut rates to zero was considered crazy. Then came 2008. The Federal Reserve slashed rates to zero in response to the financial crisis and kept them there for years. As higher-yielding bonds matured, got called 12 In Touch
The Crossover Moment But along with unrealized losses came significantly higher reinvestment opportunities and the same forces that once worked against banks are now working in their favor. Low-yielding bonds have continued to mature while the 2021-2023 surge in bond yields opened a window — one that many proactive banks took advantage of aggressively — to purchase bonds at yields that hadn’t been available since before the financial crisis. Data from more than 600 community banks on The Baker Group’s Baker Bond Accounting (BBA) system now shows that high-yielding bonds have finally reclaimed the lead, exceeding holdings of low-yielding bonds for the first time in over 13 years. The banks that moved decisively during that window are the ones seeing the strongest improvement in their yields today. The message is clear: Activity matters. The more bonds a bank has purchased over the last three years, the better their portfolio composition looks right now. The Corner Isn’t the Finish Line Turning the corner is meaningful — but it’s not the moment to ease off. The Federal Reserve has already cut rates by 175bp and ultimately wants to lower rates to around 3% once the threat of higher inflation subsides. Any further rate cuts and subsequent slide in bond yields may give way to reinvestment opportunities that look more like the post-2008 era than the post-2022 era. We’ve seen this movie before, and banks that hesitated last time spent years wishing they hadn’t. The good news is that most institutions still have meaningful options today. The question is whether they’ll act on them and act quickly enough to matter. Keep the Momentum Going If your portfolio still carries a heavy concentration of sub-2% bonds, or if you simply want to press the advantage while the rate environment still allows it, there are some concrete steps you can take today: • Deploy Cash: Many banks are still holding excess liquidity at the Federal Reserve or in overnight instruments. This may have seemed like the best option when the yield curve was inverted and cash yielded more than bonds, but that has changed. The yield curve is positively sloped once again and banks can earn 50-150bps more yield by deploying cash into the bond portfolio. Every dollar sitting in cash is a dollar that could be working harder in the investment portfolio for years to come. Extending even a portion of that liquidity into intermediate-term, higher-yielding securities locks in today’s rates before the market moves away from you. It’s the lowest friction move available and a natural place to start. • Consider Bond Restructurings (Swaps): Selling low-yielding securities at a loss and immediately reinvesting into higher-yielding alternatives, often called a bond swap, is one of the most effective tools available for accelerating the improvement in your portfolio’s yield profile. Yes, it means realizing a loss today. But if the math works, you recoup that loss through higher earnings in a relatively short period and emerge with a meaningfully better portfolio. With today’s rate environment still offering yields well above historical averages, the spread between what you’re selling and what you’re buying can make the numbers very compelling. • Build a Systematic Reinvestment Discipline: Rather than waiting for the “perfect” moment to buy, consider a disciplined reinvestment program that consistently deploys cash flows from maturing bonds, calls and prepayments into new purchases at current yields. Consistency compounds over time, and staying active keeps your portfolio moving in the right direction even when markets feel uncertain. • Update Your Investment Policy and ALCO Process: Perhaps the most durable thing you can do is embed this momentum into your institution’s governance. Make sure your investment policy explicitly allows tax-loss swaps when the earn-back math is favorable and the new securities improve your overall risk metrics. Many policies are silent on this, which creates unnecessary hesitation at exactly the wrong moment. Portfolio managers can also add a quarterly “portfolio refresh” item to every ALCO agenda: Review the investment portfolio and ensure performance is meeting or exceeding your expectations. If it isn’t, set a realistic target for the next 12 months and take action. What gets measured gets managed, and making this process a standing agenda item ensures the progress you’ve made doesn’t quietly erode between cycles. The Bottom Line The improvement you’re seeing in community bank yields isn’t just a chart; it’s a roadmap. It shows that the banks willing to act during a challenging rate environment are building portfolios that will serve them well for years. Turning the corner is a real achievement. Staying on course after you’ve turned the corner is the harder discipline, and the more important one. The window is still open. Make the most of it while the opportunity remains. Ryan W. Hayhurst serves as a managing partner and president of The Baker Group. Since joining the firm in 1991, he has led the design and implementation of investment and asset/liability strategies for financial institutions. He also plays a central role in the ongoing development of the firm’s proprietary software, which helps clients manage both their investment portfolios and overall interest rate risk. 13 In Touch
RISK ASSESSMENT IS THE BSA KEY Your bank has an opportunity to frame your next Bank Secrecy Act/Anti-Money Laundering/Countering the Financing of Terrorism (BSA/AML/CFT) examination, much as you do your Community Reinvestment Act (CRA) exam, by preparing a summary of the “performance context” within which you operate. The agencies state that a well-developed BSA/AML/CFT risk assessment assists the bank in identifying money laundering, terrorist financing and other illicit financial activity risks and in developing appropriate internal controls — policies, procedures and processes. Understanding its risk profile enables the bank to better apply appropriate risk management processes to the BSA/ AML/CFT compliance program to mitigate and manage risk and comply with BSA regulatory requirements. The BSA/AML/CFT risk assessment process also enables the bank to better identify and mitigate any gaps in controls. Risk-Focused Exam Process The interagency examination procedures provide that the extent of BSA/AML/CFT examination activities necessary to assess the bank generally depends on the bank’s risk profile and the quality of risk management processes to identify, measure, monitor and control risks, as well as to report potential money laundering, terrorist financing and other illicit financial activity. Given that banks vary in size, complexity and organizational structure, the agencies acknowledge that each bank has a unique risk profile, and the scope of a BSA/AML/CFT examination varies by bank. The first step in a BSA/AML/CFT examination is a scoping and planning process. At this preliminary stage of the activity, examiners analyze existing information about the bank — off-site monitoring information, previous examination reports and workpapers, BSA-reporting databases, other communications with the bank, and independent reviews or audits. Examiners also scrutinize request letter items completed by bank management and, perhaps most important in some ways, the bank’s BSA/AML/ CFT risk assessment. BSA examiners are charged with determining the BSA/AML/ CFT risk profile of the bank as a part of the scoping and planning process. The preferred method for accomplishing this goal By WILLIAM J. SHOWALTER, CRCM, CRP, Senior Consultant, Young & Associates Inc. 14 In Touch
centers on a review of the bank’s risk assessment. While banks are not required to perform such an assessment, it is central to ensuring that a BSA/AML/CFT program is appropriate for the bank, given its product and customer mix, as well as location risk factors. The agencies consider that an effective risk assessment should be a composite of multiple factors, and depending on the circumstances, certain factors may be weighed more heavily than others. The information contained in the BSA/AML/CFT risk assessment assists examiners in developing an understanding of the bank’s risk profile, risk-focusing the examination scope, and assessing the adequacy of the bank’s overall BSA/AML/CFT compliance program and its compliance with BSA regulatory requirements. Examiners are directed to focus, when evaluating the bank’s BSA/ AML/CFT risk assessment, on whether the bank has effective processes resulting in a well-developed risk assessment. They are not to take any single indicator as determinative of the existence of a lower- or higher-risk profile for the bank. Any assessment of risk factors is bank-specific, and a conclusion regarding the bank’s risk profile is to be based on a consideration of all pertinent information. Examiners are to assess whether the bank has developed a BSA/ AML/CFT risk assessment that identifies its money laundering, terrorist financing and other illicit financial activity risks. Examiners are also to assess whether the bank has considered all its products, services, customers and geographic locations in its assessment, and whether the bank analyzed the information relative to those risk categories. If a bank has not prepared a BSA/AML/CFT risk assessment, or if its assessment is deemed inadequate, the examiner is directed to discuss this fact with management, as well as prepare their own risk assessment. The reason for this emphasis on a bank-prepared risk assessment is that the bank’s BSA/AML/CFT program should be tailored to the risks it faces, and the agencies see an assessment as an important tool to assist the bank in effectively managing BSA risks and critical in developing appropriate internal controls. Using Your Risk Assessment An appropriate BSA risk assessment provides the bank with a foundation on which to build a successful compliance program addressing this area. This risk assessment is not a static document. You will have to monitor changes in the bank’s product offerings (e.g., virtual currency-related services), business environment, regulatory changes, bank personnel and so forth — and make appropriate changes to policy and procedure — to ensure that the foundation remains strong under the bank’s BSA/AML/CFT compliance program. The agencies expect that the bank will structure its BSA/AML/ CFT compliance program to address its risk profile, based on the bank’s assessment of risks, as well as to comply with BSA regulatory requirements. Specifically, the bank should develop appropriate policies, procedures and processes to monitor and 15 In Touch
control its money laundering, terrorist financing and other illicit financial activity risks. For example, the bank’s monitoring system to identify, research and report suspicious activity should be risk-based to incorporate any necessary additional screening for higher-risk products, services, customers and geographic locations as identified by the bank’s BSA/AML/CFT risk assessment. Also, independent testing (audit) should review the bank’s BSA/ AML/CFT risk assessment, including how it is used to develop the BSA/AML compliance program. Banks that choose to implement a consolidated or partially consolidated BSA/AML/CFT compliance program should assess risk within business lines and across activities and legal entities. Consolidating money laundering, terrorist financing and other illicit financial activity risks for larger or more complex banking organizations may assist senior management and the board of directors in identifying, understanding, and appropriately mitigating risks within and across the banking organization. To understand money laundering, terrorist financing and other illicit financial activity risk exposures, the banking organization should communicate across all business lines, activities and legal entities. Identifying a vulnerability in one aspect of the banking organization may indicate vulnerabilities elsewhere. Conclusion The importance of a BSA/AML/CFT risk assessment cannot be overstated. A bank-prepared assessment can establish the direction a bank’s BSA/AML/CFT program will take, as well as guide BSA exams and other reviews/audits. Just as with a CRA performance context, preparing your own BSA/AML/CFT risk assessment can provide the roadmap to guide your compliance and examiners’ evaluation of your program. And the agencies have given you a roadmap to guide your risk assessment — the BSA/AML/CFT examination procedures. Use it, if you have not already, before the examiners come for their next visit. William J. Showalter, CRCM, CRP, is a senior consultant with Young & Associates Inc. (younginc.com), with over 40 years’ experience in compliance consulting, advising and assisting financial institutions on consumer compliance and compliance management issues. He has also developed and conducted 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 wshowalter@younginc.com. COMPETITIVE RATES We take pride in our operational efficiency which results in MIB being able to provide valuable services at highly competitive prices. Call us to find out how much you could save. Lending Services Operational Services Audit Services mibanc.com MEMBER FDIC HIGH VALUE SERVICES, Chris Bryan 816-500-6253 Travis Anderson 402-440-2448 16 In Touch
CBA is now inviting members to volunteer for its 2026 committees. Serving on a committee gives you a direct role in shaping the Association while building valuable relationships with fellow community bankers. Strong participation strengthens the impact of our work. Why serve on a CBA committee? Have a voice in key CBA initiatives and projects Play a meaningful role in advancing the Community Banking profession Help strengthen the value and impact of CBA for Kansas Banks Stay informed on emerging challenges and regulatory issues affecting financial institutions Connect and exchange insights with peers from across the industry 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 5897 SW 29th Street, Topeka KS 66614 and help develop educational programs, conferences, and events, and support CBA
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 18 In Touch
A Discussion Panel of Industry Leaders on AI in Banking AI & Community Banking: Innovation, Insight and Responsible Implementation CBA of Kansas proudly presents a distinguished panel of leaders: Jill Druse, OSBC; Patrick Dix, SHAZAM; Josh Dunlap, RESULTS Technology; and Carey Ransom, BankTech Ventures. Moderated by Amy Mount, this panel of experts in artificial intelligence, banking technology and governmental regulation will come together to discuss the rapidly evolving role of AI in community banking. Attendees will benefit from thought-provoking conversations on the state of AI in banking, practical solutions tailored for community banks and actionable strategies for implementing AI responsibly and effectively. This dynamic panel will delve into the latest industry trends, address critical ethical considerations and share insights on leveraging AI to elevate customer experiences and improve operational efficiency. With dedicated time for audience questions, you’ll have the unique opportunity to connect directly with leading experts and gain valuable perspectives. Don’t miss this chance to learn, engage and be inspired by the best minds in the industry! Honoring a Legacy of Excellence We announce with gratitude Shawn P. Mitchell’s retirement from the Community Bankers Association of Kansas (CBAK) after over 17 years of dedicated service. Since joining in January 2009, Shawn has been a vital leader, guiding CBAK through growth and challenges. His retirement on Dec. 31, 2026, marks the end of an era. As Shawn prepares for retirement with his wife, Tammy, after 37 years of marriage, CBAK remains strong and optimistic about the future. Please join us in thanking Shawn for his immense contributions and wishing him the best in this new chapter. Together, we will continue to thrive. Thank You to Our Sponsors Bank Compensation Consulting (BCC) Bankers’ Bank of Kansas (BBOK) Community Bankers Webinar Network Diebold Nixdorf FHLBank Topeka ICBA LendingStandard Inc. Midwest Independent BankersBank Olsen Palmer LLC RESULTS Technology S&P Global SHAZAM Inc. Stifel The Baker Group The Bankers Bank Travelers UNICO Group Inc. 19 In Touch
ICBA Insurance Program COMMUNITY BANKS Key ICBA member benefits Through the Travelers ICBA Insurance Program, member banks get access to all of the advantages of a Travelers policyholder, along with these benefits: • Opportunity to earn a “safety group” dividend – an incentive that has provided dividends to eligible member banks on property casualty coverages since the program began in 1983. • Peace of mind knowing that the program is endorsed by the ICBA and that nearly half of ICBA members already participate. Policyholders’ dividend Member banks purchasing qualifying property casualty and workers compensation coverage may be eligible for a “safety group” dividend.* The dividend may be distributed if group loss experience is favorable and other criteria are met.** travelers.com/ICBA Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy. Coverages are subject to individual insureds meeting our underwriting qualifications and to state availability. © 2025 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. 59281 Rev. 10-25 Why Travelers • We’ve provided effective insurance solutions for more than 170 years and address the needs of a wide range of industries. • We consistently receive high marks from independent ratings agencies for our financial strength and claims-paying ability. • Our dedicated underwriters and Claim professionals offer extensive industry and product knowledge. Since 1983, Travelers has held the endorsement of the Independent Community Bankers of America (ICBA) as the preferred service provider for property casualty and management liability insurance. Dividend payouts of more than $88 million since the program began in 1983. Travelers knows community banks. To learn more, talk with your independent insurance agent or broker, or visit travelers.com/ICBA. * All property casualty coverages may not be available in certain areas. Countrywide, umbrella, mail and equipment breakdown coverages are not eligible for dividend payout. ** Dividends are not guaranteed and are subject to the approval of Travelers’ board of directors.
Welcome to Our Rocket ProSM empowers financial institutions to accelerate their growth in the intricate, technology-driven landscape of mortgage lending. By partnering with Rocket Pro, institutions gain access to advanced solutions that are trusted nationwide, thus driving new avenues for business expansion. Rocket Pro is designed to support the unique strengths of your institution, enhancing operations without disrupting existing workflows. The platform seamlessly integrates with your teams and systems, facilitating growth while maintaining the high level of service your clients expect. Rocket Pro offers innovative solutions that enable your bank to expand its mortgage market presence, strengthen client relationships and enhance overall profitability. For further information, please visit our website at rocketpro.com/financial-institutions or contact Stephanie Nunn at stephanienunn@rocketmortgage.com. Welcome to LendingStandard Inc. as a new member servicing the banking community in Kansas. LendingStandard is a Kansas City-based fintech company providing a modern, end-to-end loan origination platform designed specifically for community banks and financial institutions. Founded in 2015, the company’s software connects and streamlines the full loan lifecycle, from origination and underwriting through closing and ongoing management, replacing fragmented, manual processes with a single, unified system. By improving workflow efficiency, enhancing compliance visibility and delivering a more transparent borrower experience, LendingStandard helps community banks scale their lending operations, reduce operational risk and strengthen customer relationships in an increasingly competitive market. Interested in learning more? Contact Jack Kenny at (913) 568-1362 or visit lendingstandard.com. New Associate Members! While our n me h s ch nged under new ownership, the he rt of our comp ny rem ins the s me — including the reli ble, friendly te m you’ve lw ys worked with. Our go l is to be trusted p rtner for tr de nd profession l ssoci tions, strengthening membership nd connecting member businesses with their future customers. We look forward to what’s to come! New name. Same people. Renewed commitment. We’re excited to nnounce th t is now mbr-connect.com (801) 676-9722 hello@mbr-connect.com 21 In Touch
MAY 150 years First National Bank of Hutchinson — Hutchinson 140 years Citizens Bank of Kansas — Kingman 137 years State Bank of Bern — Bern 126 years Citizens State Bank & Trust Co. — Ellsworth 125 years Union State Bank — Uniontown 103 years First National Bank — Hope 65 years First Bank Kansas — Salina 36 years The Trust Company of Kansas — Wichita Congratulations to the banks celebrating May and June anniversaries as chartered institutions! ANNIVERSARIES JUNE 125 years Union State Bank — Clay Center 117 years Farmers State Bank — McPherson 115 years Astra Bank — Scandia Your magazine: On your phone, on your tablet, on your schedule. connected stay 22 In Touch
PRODUCTS AND SERVICES REFERENCE LIST 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 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 *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. 9 *OptimaFI (Formerly QwickRate) Pam: Memphis, TN . . . . . . .......(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 BALANCE SHEET CONSULTING *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS | (913) 955‑3355 See ad pg. 9 BANK OPERATIONS The Baker Group Oklahoma City, OK . . . . . . ....... (800) 937‑2257 *OptimaFI (Formerly QwickRate) Pam: Memphis, TN . . . . . . .......(800) 285-8626 BANK/PEER PERFORMANCE *OptimaFI (Formerly QwickRate) Pam: Memphis, TN . . . . . . .......(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 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. 15 *ICBA CRA Solutions 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. 5 The Bankers Bank Oklahoma City, OK . . . . . . ......(800) 522-9220 CORE SERVICES Data Center Inc. (DCI) Hutchinson, KS | (620) 694‑6800 See ad pg. 27 *SHAZAM Bill M. Johnston: IA . . . . . . . .......(515) 306‑8012 CRA/COMPLIANCE *ICBA CRA Solutions Kristine . . . . . . . . . . . ............. (914) 656‑8643 CREDIT AND PORTFOLIO RISK MANAGEMENT Young & Associates Inc. Kent, OH . . . . . . . . . . ........... (800) 525‑9775 23 In Touch
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