2026 ISSUE 2 A PUBLICATION OF THE INDEPENDENT COMMUNITY BANKERS OF COLORADO BUILDING ON THE PAST, BANKING ON THE FUTURE. Building the Foundation for Effective AI Closing the Data Readiness Gap
©2026 The Independent Community Bankers of Colorado (ICBC) | MBR Connect™, formerly The newsLINK Group LLC. All rights reserved. Independent Report is published four 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 ICBC, 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. Independent Report is a collective work, and as such, some articles are submitted by authors who are independent of ICBC. 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 (801) 676-9722. 6732 W. Coal Mine Ave., #640 • Littleton, CO 80123 • (303) 832-2000 2025-2026 OFFICERS ICBC CHAIRMAN Mike Hurst President Del Norte Bank ICBC PRESIDENT Joe Martinez President & CLO San Luis Valley Federal Bank ICBC PRESIDENT-ELECT Jeff Walker President & COO Redstone Bank ICBC ICBA STATE DIRECTOR PJ Wharton President & CEO Yampa Valley Bank ICBC STAFF EXECUTIVE DIRECTOR Mike Van Norstrand mvannorstrand@icbcolo.org ADMINISTRATION DIRECTOR/ TREASURER Maelynn Lewis mlewis@icbcolo.org ADMINISTRATIVE SUPPORT MANAGER Lori Arellano larellano@icbcolo.org LEGAL COUNSEL Christian Otteson Partner Otteson Shapiro LLP LOBBYIST Mary Marchun Founding Partner The Capstone Group 2025-2026 DISTRICT DIRECTORS DISTRICT A Kent Jones, President & CEO, Flatirons Bank Jamie Santistevan, COO, Native American Bank Mark Sheeley, President & CEO, RNB State Bank/Front Range State Bank Molly Kufeldt, Executive Vice President & Regional President, InBank DISTRICT B Mark Brase, President, Points West Community Bank Tim Croissant, Market President, Bank of Colorado Travis Goeglein, Senior Vice President, First FarmBank Scott Applegate, President & CEO, Bank of Estes Park DISTRICT C Ben Johnson, President, First National Bank Colorado Miles McClure, CEO, Rocky Mountain Bank & Trust Peter Page, Executive Vice President & COO, Frontier Bank Kathryn Perry, Senior Vice President, Park State Bank & Trust DISTRICT D Dan Ebert, Vice President, Evergreen National Bank John Stelzriede, Market President — Colorado River Region, Alpine Bank Niki Stotler, President & CEO, High Country Bank Chad Zummach, Executive Vice President, Gunnison Bank & Trust ICBC ADVISORY BOARD MEMBERS Eric Budreau Partner Eide Bailly Jim Hall Managing Director Bond & Specialty Insurance — Financial Institutions, Travelers Bill Mitchell CEO Bankers’ Bank of the West Christian Otteson Partner Otteson Shapiro LLP 2 | INDEPENDENT REPORT
20 CONTENTS 7 14 CONNECT Email us mlewis@icbcolo.org Like us on Facebook ICBColo Connect with us ICBColo Follow us on X ICBColo Give us a call (303) 832-2000 Follow us on Instagram ICBColo 2026 PUB. 5 ISSUE 2 4 Support the ICBC’s Associate Members! 5 ICBC Preferred Providers FLOURISH 6 Battling Check Fraud Together By Rebeca Romero Rainey, President and CEO, ICBA FROM THE TOP 7 Turning Fraud on its Head By Alice P. Frazier, ICBA Chair, President & CEO, Potomac Bank 8 Vendor Consolidation as a Modernization Strategy Fixing Fragmentation in Financial Institutions By Monica Moore, Chief Technology Officer, Alogent, ICBC Associate Member 10 Building the Foundation for Effective AI Closing the Data Readiness Gap By Ajay John, VP of Data Science & AI, CSI, ICBC Associate Member 13 Congratulations ICBC High School Scholarship Recipients 14 Why Community Bank Managers Need Better Conversations By Connie West, Gallup Certified Strengths Coach, High Performance Coach, Regional Vice President, The James Paul Group, ICBC Associate Member 16 Secure Real-Time Payments With Smarter Controls By Ben LeClaire, Principal, and Matt Babicz, Senior Manager, Plante Moran, ICBC Silver Associate Member 18 The Comeback of Direct Mail How Tangible Marketing Outperforms Email By Bella Ruscheinski, Spry, ICBC Associate Member 20 Culture, Career Purpose and Retention The New Competitive Advantage for Community Banks By Emanuel Wilder, Program Manager, Watson Institute, ICBC Associate Member 22 Driving Community Prosperity with Reciprocal Deposits By Joe Hooker, Chief Sales Officer, IntraFi, ICBC Associate Member SAVE THE DATE 24 53rd Annual Convention 25 B:Side Assist Launches AI-Powered Financial Platform for Small Business Owners By B:Side Capital INDEPENDENT REPORT | 3
SUPPORT THE ICBC’S ASSOCIATE MEMBERS! ACCOUNTING | COMPLIANCE EideBaillyLLP. . . . . . . . . . . . . . . . . . . . . . . . . .(303)770‑5700 Fortner Bayens PC . . . . . . . . . . . . . . . ........ (303) 296‑6033 Forvis Mazars . . . . . . . . . . . . . . . . ......... (303) 861‑4545 Plante Moran** . . . . . . . . . . . . . . . . ........ (303) 740‑9400 ADVERTISING | EQUIPMENT | PRINTING | SUPPLIES Kristopher James Company . . . . . . . . . . . . . . . . . (800) 274‑9212 Spry.. .. .. .. .. .. .. .. .. .. ............ (303) 323‑4341 ATM | DATA PROCESSING | CARD PROCESSING Select Bankcard . . . . . . . . . . . . . . . . ........ (855) 943-5763 CAREER ADVANCEMENT Graduate School of Banking at Colorado . . . . . . . . (800) 272‑5138 CONSULTING | HUMAN RESOURCES AND MANAGEMENT | MARKETING | STRATEGIC PLANNING BankStrategiesLLC . . . . . . . . . . . . . . . . . . . . . . (303)291‑3700 (A Bankers’ Bank of the West Bancorp Inc. Subsidiary) Expert Business Development . . . . . . . . . . ..... (610) 771‑2121 Hopkins Leadership . . . . . . . . . . . . . . . . . . . . . . (225) 773-4528 *ICBA CRA Solutions .. .. .. .. .. .. ........ (877) 232-0859 *ICI Consulting Inc. .. .. .. .. .. .. .......... (316) 201‑8590 Impact Retirement Advisors . . . . . . . . . . ...... (952) 248-3713 Iskratek Consulting . . . . . . . . . . . . . . ........ (660) 238-0105 TheJamesPaulGroup . . . . . . . . . . . . . . . . . . . . (877)584‑6468 The NaviTrust Group . . . . . . . . . . . . . . ....... (801) 438-1842 Piper Sandler & Co. . . . . . . . . . . . . . . ........ (415) 978‑5057 *S&P Global .. .. .. .. .. .. .. .. ........... (434) 951‑6948 CORRESPONDENT BANKING SERVICE *Bankers’ Bank of the West .. .. .. .. .. ....... (303) 291‑3700 BellBank. . . . . . . . . . . . . . . . . . ........... (701) 371‑3355 Citizens Bank Farmington . . . . . . . . . . . . ...... (505) 599‑0100 INTRUSTBank . . . . . . . . . . . . . . . . ......... (800) 732‑5120 PCBB.. .. .. .. .. .. .. .. .. .. ........... (888) 399‑1930 TIB — The Independent BankersBank . . . . . . . . . . . (972) 650‑6000 CYBERSECURITY | IT CONSULTING AND SERVICES | SECURITY Alarm Detection Systems Inc . . . . . . . . . . ...... (720) 594-8330 Alogent..............................(719)583‑8004 Botdoc.. .. .. .. .. .. .. .. .. ............ (719) 960-4475 CivITas Bank Solutions . . . . . . . . . . . . . ....... (303) 291‑3700 (A Bankers’ Bank of the West Bancorp Inc. Subsidiary) Cook Solutions Group . . . . . . . . . . . . . ....... (503) 260‑8562 Federal Protection Inc. . . . . . . . . . . . . . ....... (800) 299‑5400 M.R.Solutions. . . . . . . . . . . . . . . . . . . . . . . . . .(303)296-3328 RMCyber***...........................(303)721-6131 DATA PROCESSING | EFT | ATM | CARD PROCESSING | MERCHANT SERVICES *Bankers’ Bank of the West .. .. .. .. .. ....... (303) 291‑3700 *BluePoint ATM Solutions LLC .. .. .. .. ....... (540) 335‑2848 Computer Services Inc. . . . . . . . . . . . . . . . . . . . . (970) 212‑7104 DCI.................................(620)694-6800 *IBT Apps . . . . . . . . . . . . . . . . . . . . . . . . . . . . (512) 606‑1100 *ICBA Bancard / TCM Bank .. .. .. .. .. ....... (800) 242‑4770 Jack Henry & Associates . . . . . . . . . . . . ....... (417) 235‑6652 SHAZAM.. .. .. .. .. .. .. .. .. ........... (515) 288‑2828 VisaInc.. . . . . . . . . . . . . . . . . . ........... (415) 238‑3682 INSURANCE | BENEFIT SERVICES Bank Compensation Consulting . . . . . . . . . . . . . . (303) 482‑1844 First Insurance Services Inc. . . . . . . . . . . . ...... (719) 456‑2303 *ICBA Reinsurance . . . . . . . . . . . . . . . . . . . . . . (888) 790‑6615 *Travelers .. .. .. .. .. .. .. .. ............ (720) 200‑8416 INVESTMENTS | FUNDING AND LENDING PARTNERS B:SideCapital. . . . . . . . . . . . . . . . . . . . . . . . . .(303)657‑0010 TheBakerGroup. . . . . . . . . . . . . . . . . . . . . . . . (405)415‑7200 *BHG Financial Institutional Network*** .. .. .... (954) 263‑6399 Citizens Bank Farmington . . . . . . . . . . . . ...... (505) 599‑0145 Colorado Enterprise Fund . . . . . . . . . . . . ...... (303) 860‑0242 Colorado Housing and Finance Authority . . . . . . . . (303) 297‑7329 D.A.Davidson..........................(303)764‑6000 FHLBank Topeka — Denver Office . . . . . . . . ..... (720) 212‑9873 First Bankers’ Banc Securities Inc. (FBBS) . . . . . . ... (720) 709‑7613 GillCapital............................(303)296‑6260 *ICBA Mortgage .. .. .. .. .. .. .. .......... (800) 253‑5356 *ICBA Securities . . . . . . . . . . . . . . . . . . . . . . . . (800) 422‑6442 IntraFi Network . . . . . . . . . . . . . . . . ......... (303) 706‑9265 Northland Securities Inc. . . . . . . . . . . . . . . . . . . . (303) 801‑3380 Olsen Palmer LLC . . . . . . . . . . . . . . . ........ (202) 803‑2620 Performance Trust Capital Partners . . . . . . . .... (312) 521-1000 Preferred Lending Partners . . . . . . . . . . . ...... (303) 861-4100 RocketPro. . . . . . . . . . . . . . . . . . .......... (704) 650-0622 USDA Rural Development . . . . . . . . . . . . ...... (720) 544-2916 Vantage Financial LLC . . . . . . . . . . . . . ....... (763) 213-9015 West Gate Bank Mortgage . . . . . . . . . . . ...... (402) 434‑4116 LEGAL SERVICES Alliance Growth Legal Advisors . . . . . . . . . ..... (970) 368-0606 Arnold&Porter. . . . . . . . . . . . . . . . . . . . . . . . .(303)863‑1000 Godfrey Law Group LLC . . . . . . . . . . . . ....... (303) 802‑6336 Markus Williams Young & Hunsicker LLC. . . . . . . . . (303) 830‑0800 Otteson Shapiro LLP (ICBC Counsel) . . . . . . . .... (720) 488‑0220 Spencer Fane LLP . . . . . . . . . . . . . . . ........ (303) 839‑3838 StinsonLLP . . . . . . . . . . . . . . . . . .......... (303) 376‑8400 Womble Bond Dickinson** . . . . . . . . . . . ...... (303) 623‑9000 LOAN REVIEW SERVICES EideBaillyLLP. . . . . . . . . . . . . . . . . . . . . . . . . .(303)770‑5700 Fortner Bayens PC . . . . . . . . . . . . . . . ........ (303) 296‑6033 ICBC LOBBYING AND PUBLIC RELATIONS The Capstone Group (ICBC Lobbyists) . . . . . . . . . . (303) 860‑0555 *ICBC Preferred Providers **Silver Associate Member ***Gold Associate Member 4 | INDEPENDENT REPORT
ICBC PREFERRED PROVIDERS ICBC Preferred Providers are selected by bankers just like you, so give them special consideration when considering their proposals for your bank! To learn more about ICBC’s Preferred Providers, contact the ICBC at (303) 832-2000. Please note: ICBC endorses the listed companies but not all products offered by the company. Contact: Scott Wintenburg | swintenburg@bbwest.com | (303) 291-3700 or (800) 601-8630 Merchant services from Bankers’ Bank of the West help you grow customer relationships with mobile payments technology, competitive unbundled pricing, efficient approvals and startups, responsive support and training. Contact: Keith Gruebel | kgruebel@bhg-inc.com | (954) 263-6399 Creator of the largest community bank loan network in the country. ICBC members can access the BHG Loan Hub, a secure, state-of-art loan delivery platform and the number-one source for professional loans. Contact: Wade Zirkle | wade@bluepointatm.com | (720) 295-9142 Colorado-based BluePoint ATM Solutions provides cost-efficient, reliable, branch and off-site ATM equipment and managed services to community banks across the Mountain West. From equipment sales/leases to custom installations, CIT, and ongoing service and maintenance — BluePoint provides dependable, cost-efficient ATM programs tailored to meet your bank’s needs. Contact: Phil Layher | phil.layher@ibtapps.com | (512) 616-1188 IBT Apps® is an empowering core partner to community banks nationwide, offering end-to-end core and digital banking solutions that meet today’s customer demands. Their adaptable i2Suite banking system enables your bank to streamline operations, control costs and mitigate risks. Transform your bank with the power of one total solution. Contact: solutions.icba.org | (866) 843-4222 The ICBC supports and recommends the following products and services supplied by our national association, the ICBA: ICBA Bankcard and TCM Bank, N.A.; ICBA Compliance & Risk Management; ICBA Mortgage; ICBA Reinsurance; and ICBA Securities. Contact: Lance Tappa | lance.tappa@ici-consulting.com | (414) 255-4944 Since 1994, ICI Consulting has helped banks and credit unions to assess, cost justify, evaluate and convert core processing, digital banking, EFT, lending, document imaging, CRM and branch solutions. Contact: Kyle Norman | kyle.norman@spglobal.com | (719) 661-3560 S&P Global combines exclusive analysis and in-depth data in real time for the banking, financial services and insurance industries. From bank branch data and government assistance programs to executive compensation and league tables, S&P is the final word in business intelligence on financial institutions. Contact: Madeline Dickman | mdickman@travelers.com | (720) 200-8293 Offering a wide range of customized insurance protection, Travelers SelectOne+® for financial institutions is designed to respond to the most recent trends in banking. INDEPENDENT REPORT | 5
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 this community of community bankers to share information on the latest scams and offer heads-up alerts on emerging threats. This important information sharing helps community banks 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. FLOURISH Battling Check Fraud Together By Rebeca Romero Rainey, President and CEO, ICBA 6 | INDEPENDENT REPORT
Turning Fraud on its Head FROM THE TOP By Alice P. Frazier, ICBA Chair, President & CEO, Potomac Bank When it comes to fraud, what I worry about most is what we don’t know. Each day, there’s a new method of attack, and we must train ourselves and our teams to not only watch for it but to proactively combat it. Earlier this year in a monthly all-hands-on-deck team meeting at Potomac Bank, we shared with every employee how much fraud cost us last year, how many attempts there were and how many reports about suspicious activity we filed. In addition, we dove into incidents in which we prevented a loss and how we did it, emphasizing what worked. As we all know, when there are fraud losses, something didn’t go to plan. Fortunately, that becomes a learning opportunity. “Sometimes you win — sometimes you learn,” wrote John C. Maxwell in his book of the same name. Every time my bank experiences fraud, we do an extensive review after the fact, asking the tough questions. Then, we explore ways we can catch and prevent that scam moving forward. Is there new technology we need? Should we evolve our procedures? How can we prepare better? It’s about turning that fraud experience on its head and utilizing information to enhance safety and security protocols. In conducting these fraud evaluations, we’ve also realized the power of communicating what we know. Because if we know about it, we can act against it. For example, in the fourth quarter of 2025, Potomac Bank experienced treasury check fraud. When it occurred, I was able to reach out to my peers at other local community banks, share what happened, offer photos of the perpetrators and provide details that could help them enhance their own procedures. But we went one step further and worked together to partner with the FBI, ultimately resulting in the capture of the individuals responsible. It was information sharing at its best. In addition, resources like ICBA Community help us connect with bankers throughout the U.S. A couple of years ago, a fraudulent check came through on a customer’s account, and we needed to connect with other banks. I suggested we try ICBA Community as a resource and requested contacts at three large banks. Within minutes, we had them and were able to reach out and resolve the issue. That’s the power of this community of community bankers. When it comes to fraud, “Sometimes you win — sometimes you learn.” If you have an opportunity to learn, share your experience. It can be embarrassing to admit your processes failed and your bank experienced a loss, but the benefits to the larger group of community bankers far outweigh the discomfort. The more we work together and share, the more we know and the better positioned we all will be to combat what emerges next. QUOTE OF THE MONTH “Sometimes you win — sometimes you learn.” — John C. Maxwell INDEPENDENT REPORT | 7
Vendor Consolidation as a Modernization Strategy Fixing Fragmentation in Financial Institutions By Monica Moore, Chief Technology Officer Alogent, ICBC Associate Member As technology leaders in banking and financial services, we rarely inherit a clean slate. We inherit technology environments built over decades, with systems added to solve urgent needs at specific moments in time. A spike in check fraud required a new solution. A new payment rail demanded rapid integration. A regulatory deadline forced a workaround. A commercial lending team needed speed to compete. Individually, these decisions made sense. Collectively, they create fragmentation. What begins as agility quietly turns into a complex web of platforms, vendors and integrations supporting the operation. These environments can be costly to maintain, difficult to scale and increasingly out of step with modern banking expectations. Today, fragmentation is not just a technical issue. It is a strategic constraint and a clear signal that modernization can no longer be postponed. THE HIDDEN COST OF FRAGMENTATION IN BANKING TECHNOLOGY Best of breed solutions often look compelling in isolation. In practice, fragmentation introduces friction across core banking functions. Line-of-business systems frequently operate in silos. Data does not move easily across platforms, leaving teams to bridge gaps manually. Technology and operations spend more time managing integrations and resolving exceptions than improving account holder experiences or reducing risk. When change is required, whether due to fraud events, audits or volume surges, coordination across multiple vendors slows response and blurs accountability. Fragmentation amplifies complexity and complexity increases operational risk, especially as transaction volumes grow and fraud tactics evolve. Over time, disconnected systems compound technical debt, which surfaces as slower product launches, higher per transaction costs, manual exception handling and limited visibility across the institution. LEGACY SYSTEMS ARE NOT THE PROBLEM — UNMANAGED TECH DEBT IS Modernization is often framed as replacing old systems with new ones, but that oversimplifies the challenge. Many legacy platforms still perform critical functions reliably, including deposit processing, document management and loan servicing. The real issue arises when those systems are surrounded by one-off integrations, overlapping tools and manual workarounds that sit outside core controls. At that point, tech debt becomes operational debt. Technology teams become consumed with maintaining fragile connections and reconciling data across systems that were never designed to work together. Innovation slows as IT shifts from enabling the business to remediating gaps. Modernization is not about “ripping and replacing” everything; it is about simplifying the ecosystem so legacy strengths can coexist with modern capabilities without introducing drag. VENDOR SPRAWL VERSUS PLATFORM STRATEGY Vendor consolidation is one of the most effective ways CIOs can reduce fragmentation, but only when it is done intentionally. The objective is not to have fewer vendors for appearances, but to achieve architectural coherence. A platform-oriented strategy prioritizes shared data models across payments, fraud, lending and content management. It enables consistent security and governance, reduces integration points and supports a roadmap that evolves with the institution. Vendor sprawl forces IT into a reactive posture, coordinating service levels, resolving conflicts and absorbing risk when gaps appear between transaction processing, document workflows and fraud controls. Consolidation done right transforms technology from a collection of tools into a connected system of record and insight. 8 | INDEPENDENT REPORT
MODERNIZATION IS A BUSINESS CONVERSATION CIOs do not modernize technology for their own sake. We modernize because fragmentation eventually impacts the business. Modern platforms create leverage by allowing teams to automate once and scale across the institution, rather than solving the same problem repeatedly in different systems. THE BOTTOM LINE Financial institutions do not need more tools. They need fewer, better aligned systems that support scale, resilience and change. Vendor consolidation is not a cost-cutting exercise. It is a modernization strategy that reduces tech debt, simplifies operations, strengthens fraud defenses and enables sustainable innovation. This is where Alogent’s solution suites come into focus. By streamlining deposits, fraud mitigation, enterprise content management and commercial lending within a cohesive strategy, Alogent helps financial institutions reduce fragmentation, simplify operations and modernize with confidence. In an environment defined by constant change, focus is what turns complexity into success. Talk to Team Alogent to see how we can help you move forward with confidence. INDEPENDENT REPORT | 9
Building the Foundation for Effective AI Closing the Data Readiness Gap 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. By Ajay John, VP of Data Science & AI CSI, ICBC Associate Member 10 | INDEPENDENT REPORT
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. 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 INDEPENDENT REPORT | 11
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/ 12 | INDEPENDENT REPORT
William Doherty Branson High School InBank Hayden Annand Eaton High School Bank of Colorado Addison Knowles Meeker High School Mountain Valley Bank Ryann Svoboda Caliche High School Bank of Colorado Corbin Jagers McClave High School McClave State Bank Congratulations ICBC HIGH SCHOOL SCHOLARSHIP RECIPIENTS
Community banking continues to evolve rapidly. Customer expectations are changing. Employee expectations are changing. Leadership expectations are changing. Yet many organizations continue trying to solve leadership challenges through additional meetings, more oversight or increased operational pressure. The stronger solution is often much simpler: better leadership conversations. Managers influence nearly every aspect of the employee experience: engagement, morale, accountability, development, confidence, retention and customer relationships. The challenge is that many managers were promoted because they were technically strong performers — not because they were trained to coach and develop people. As a result, leadership conversations often become reactive, rushed, transactional and corrective instead of developmental. Over time, this creates disengagement and inconsistency. Employees begin feeling overlooked. Coaching only happens when mistakes occur. Development conversations disappear. Burnout quietly increases. The strongest community banks are shifting toward coaching-based leadership cultures. Managers are learning how to recognize employee strengths, improve accountability conversations, support employee resilience, develop future leaders, strengthen customer conversations and build business development confidence. These leadership conversations do not need to be complicated. In fact, small, consistent conversations often create the greatest impact. Even a three-minute substantive conversation counts! A branch manager who consistently recognizes employee strengths improves engagement. A supervisor who coaches instead of simply correcting builds confidence and ownership. A leader who discusses career growth improves retention. A manager who proactively supports resilience reduces burnout. The cumulative effect of this type of engagement shapes workplace culture. Community banks that intentionally develop managers as coaches gain significant advantages such as stronger engagement, improved retention, better customer relationships and stronger workplace cultures. As workforce expectations continue to change, coaching-based leadership is becoming less of a competitive advantage and more of a necessity. The future of community banking leadership will belong to organizations that develop managers capable of leading intentional, consistent, people-focused conversations. Your best talent and your customers will thank you! Connie West can be reached by email at cwest@jamespaulgroup.com or toll-free at (877) 584-6468. Follow her on LinkedIn for tips on developing coaching leaders and keeping awesome employees. Why Community Bank Managers Need Better Conversations By Connie West, Gallup Certified Strengths Coach, High Performance Coach, Regional Vice President The James Paul Group, ICBC Associate Member 14 | INDEPENDENT REPORT
| Bank Stock Loans | Loan Participations | ATM/Debit | International Services | | Cash Management | Securities Safekeeping | Merchant Services | 800-873-4722 | NE: 888-467-5544 | www.bbwest.com Where community banks bank Est. 1980 – Over 45 years of service to community banks “As a service provider exclusively focused on community banks, Bankers’ Bank of the West is here to help strengthen our clients and the communities they serve.” Across the western states and Great Plains, we’re the place where community banks bank. That’s because we provide the services, technology, and expertise to help you extend your resources, deliver for your customers, and stand out in your market. 5 reasons to partner with us BBW CEO and Vice Chair – Bill Mitchell 1. You can unlock efficiencies and cost savings. We can provide sophisticated solutions and economies of scale because we’re powered by hundreds of community banks across our region. 5. Our priorities are aligned with yours. 2. You can expand your capabilities. 4. We’ll never compete for your customers. 3. You can count on prompt, reliable service. • Independent loan review • Loan and credit administration consultation • Strategic planning facilitation • Management, staffing, & succession planning • Acquisition & expansion • BSA/AML compliance • Regulatory risk consultation President, Jim Swanson President, Anne Benigsen • Consulting • Phishing Tests • Vulnerability Management • Security Monitoring Cyber/information security, strategic planning, independent loan review, AND MORE. Consulting Services $ 8.45B assets under management $ 1.9B daily transaction value processed/settled Serving more than 60% of community banks across 7 states
Secure Real-Time Payments With Smarter Controls By Ben LeClaire, Principal, and Matt Babicz, Senior Manager Plante Moran, ICBC Silver Associate Member Real-time payment increases speed and fraud risk. However, layered controls, smart friction and continuous operations help financial institutions manage threats while keeping payments fast and reliable. WHAT ARE REAL-TIME PAYMENTS? Real-time payments are instant, account-to-account payment transactions that settle and post within seconds, operate 24 hours a day, 365 days a year and are generally irrevocable once authorized. This speed improves customer experience and liquidity, but it also compresses fraud detection and response windows, requiring controls and operations that function in real time rather than in batch cycles. The arrival of real-time payments and the FedNow Service, a relatively new instant payment infrastructure through the Federal Reserve, has transformed payment processing for community banks. Settlement now happens in seconds, and so does payment fraud. ARE INSTANT PAYMENTS SAFE? Yes — but only when they’re operated with controls built for speed. The challenge isn’t to slow down; it’s to make speed safe and to prove it with metrics and evidence that stand up to scrutiny from customers, auditors and examiners. Financial institutions need to build in real-time controls that pair instant settlements with 24/7 monitoring, clear decision rights and trained teams who can act quickly. FRAUD MOVES FAST — YOU NEED TO MOVE FASTER Picture this: It’s late on a Friday night. A member calls, saying, “This transfer isn’t mine.” The payment is already settled. Your team has only minutes, sometimes seconds, to validate the alert, reach the member and trigger a hold or recall. Real-time payment rails reward institutions that can act at 2:00 a.m. as well as 2:00 p.m. The difference between a contained incident and a write-off lies in your operating model and in whether your controls are built for seconds, not days. Traditional, batch-era controls don’t generalize to irrevocable push payments. Decision windows have collapsed, and fraud can move as fast as the money. Community institutions have a local trust advantage, but preserving it requires controls that are both effective and explainable. REAL-TIME FRAUD DETECTION: HOW TO BUILD A LAYERED CONTROL STACK Successful institutions don’t rely on a single defense. Instead, they build a layered stack that applies just enough friction to stop fraud without taxing legitimate customers. 1. Establish Network and Participant-Level Limits Start with hard guardrails: network and participant-level limits sized by customer segment, dynamic negative lists that update in real time and velocity thresholds that flag unusual patterns. These controls should be tuned to treat a new device and payee after-hours differently from a routine payroll transaction. 2. Add Intelligent Friction Contextual step-ups, like callbacks or out-of-band confirmations, should trigger only when risk spikes, not on every bill pay. Behavioral analytics layered with rules help surface mule-account patterns, account takeovers and social engineering attempts — giving you both lift and explainability. 3. Collect Audit-Ready Evidence Finally, operational proof matters. Unified dashboards, service-level agreement (SLA) timed alert queues and runbooks for freeze/recall decisions ensure your team can act quickly and consistently. After-action kits, including logs, thresholds, change tickets and customer communications, should be ready for audit or exam review. Evidence isn’t a byproduct; it’s part of the control. 16 | INDEPENDENT REPORT
PROTECT YOUR CUSTOMERS AND BRAND WITH SMARTER BRAKES Blanket friction is expensive and alienates good customers. Smart friction — targeted, explainable and auditable — protects customers and the brand without taxing everyday behavior. The right 30 seconds at the right time beats three days of post-loss cleanup. Controls on paper don’t act in real time; people and processes do, and 24/7 coverage is essential. Decide whether you’ll use in-house shifts, shared services with your core or fintech partner, or an on-call rotation with explicit SLAs. Decision rights must be clear: Who can pause an outbound? Authorize a one-time limit lift? Contact the member, and from what number? Treat threshold changes like code: ticketed, peer-reviewed and rolled back if friction spikes. Train your team to handle authorized push-payment scams and after-hours escalations until their responses are muscle memory. A 90-DAY BLUEPRINT FOR AUDIT READINESS Examiners and boards want clarity, cadence and control. They expect a one-page program map showing channels in scope, control families, owners and SLAs. Metric trends, including false-positive ratio, true-fraud intercepts, time-to-detect, time-to-recover and loss avoided, should be tracked and reported. Show a playbook excerpt from a real incident and ensure third-party alignment in writing, including transparency, testing rights, change notification and incident notice commitments. • First 30 days: In the first month, inventory every real-time channel and its controls, lock in baseline limits and negative lists, and stand up a single fraud dashboard. • Next 30 days: In the second month, introduce contextual step-ups and behavioral analytics, and run after-hours tabletop exercises with your partners. • Last 30 days: By the third month, tune thresholds based on live data, produce a board or exam packet with metrics and an anonymized case, and set a quarterly cadence for reviews and evidence refresh. This is what “good” looks like to examiners and your board — with these practices in place, you can foster clarity and greater trust. THE BOTTOM LINE Real-time payment rails raised the bar. The institutions that keep their trust advantage will pair speed with discipline: layered controls that act in seconds, an operating model that never sleeps and evidence that stands up on the toughest day. Build the brakes to match the rails, and then show the math — without it, speed becomes risk instead of value. For more industry insights from Plante Moran, scan the QR code. https://www.plantemoran. com/industries/financialservices/banks?utm_source=qrcode&utm_ medium=association&utm_campaign=PENFSG-2026_ICBC We’re here to help. Reach out today! Juliene Wynn, Director of Lending & Compliance (303) 861-4100 juliene@preferredlendingpartners.com preferredlendingpartners.com COLORADO'S BOUTIQUE SBA 504 LENDER SINCE 1984! Preferred Lending Partners is your creative financing connection — helping small businesses to become fixtures in the communities they serve. INDEPENDENT REPORT | 17
The Comeback of Direct Mail How Tangible Marketing Outperforms Email By Bella Ruscheinski Spry, ICBC Associate Member For years, digital marketing has dominated the conversation. Email campaigns, automation flows and inbox optimization have been the go-to strategies for brands looking to scale quickly and efficiently. As inboxes grow crowded and attention spans shrink, something unexpected is happening, and it’s that direct mail is making a powerful comeback. Far from being outdated, tangible marketing is proving to be one of the most effective ways to cut through the noise, build trust and drive real engagement. Here’s why direct mail is not just “coming back” — it’s outperforming email in key ways.
While email still plays an important role, it’s clear that relying on it alone leaves opportunities on the table. THE POWER OF INTEGRATION This isn’t about choosing direct mail instead of email — it’s about using both strategically. The most effective marketing campaigns today combine digital and physical touchpoints to create a cohesive experience. For example: • Send a direct mail piece followed by an email reminder. • Use QR codes or personalized URLs to bridge offline and online. • Retarget mail recipients with digital ads. By integrating channels, brands can reinforce their message and stay top-of-mind across multiple touchpoints. PERSONALIZATION AT SCALE Modern direct mail is not the “batch and blast” approach of the past. Advances in data and printing technology allow for highly personalized mailers tailored to individual recipients. From variable images and messaging to dynamic offers, brands can now deliver relevant, targeted experiences — just like digital marketing, but with the added impact of physical presence. WHY NOW IS THE MOMENT Ironically, the rise of digital marketing has made direct mail more effective. As fewer brands invest in physical campaigns, those that do face less competition and gain more visibility. Consumers also crave more authentic, less intrusive interactions. Direct mail meets that need by offering a slower, more intentional form of communication. FINAL THOUGHTS Direct mail isn’t a relic of the past — it’s a powerful tool for the modern marketer. In a landscape dominated by fleeting digital impressions, tangible marketing offers something rare: attention that lasts. For brands looking to break through the noise, build stronger connections and drive meaningful results, the comeback of direct mail is an opportunity worth seizing. The question isn’t whether direct mail works; it’s whether you’re using it to its full potential. For brands looking to break through the noise, build stronger connections and drive meaningful results, the comeback of direct mail is an opportunity worth seizing. THE PROBLEM WITH THE INBOX The average professional receives over 100 emails per day, including promotions, newsletters and automated sequences. They all compete for a split second of the user’s attention. The result? Declining open rates, lower click-through rates and a growing sense of fatigue. Even well-crafted email campaigns face challenges: • Spam filters block visibility. • Promotions tabs hide messages. • Consumers skim or delete within seconds. In a world where digital saturation is the norm, standing out in the inbox has never been harder. WHY DIRECT MAIL STANDS OUT Direct mail operates in a completely different environment — one with far less competition. When a thoughtfully designed piece arrives in someone’s mailbox, it commands attention in a way digital simply can’t replicate. 1. It’s tangible and memorable. Physical mail engages multiple senses. The feel of the paper, the visual design and even the act of opening it create a more immersive experience. Studies consistently show that people remember physical marketing materials better than digital ones. 2. It builds trust. There’s an inherent credibility to printed materials. In an era of phishing emails and digital scams, a well-produced mail piece feels more legitimate and trustworthy. 3. It drives higher engagement. Direct mail often achieves significantly higher response rates compared to email. Recipients are more likely to read, keep and act on something they can physically hold. THE PSYCHOLOGY BEHIND TANGIBLE MARKETING Direct mail taps into something digital marketing struggles to replicate, which is emotional connection. Receiving mail feels personal. It signals effort and intention. Unlike an automated email blast, a physical piece suggests that a brand invested time and resources to reach you specifically. That perception alone can elevate brand value. Additionally, people tend to spend more time with physical materials. Instead of a quick glance, they might flip it over, set it aside and revisit it later, extending the life of your message. DATA THAT SUPPORTS THE COMEBACK The resurgence of direct mail isn’t just anecdotal — it’s backed by performance data. • Higher Open Rates: Nearly all direct mail gets opened, compared to a fraction of emails. • Stronger Response Rates: Direct mail response rates can outperform email by several times. • Better Conversion: Physical touchpoints often lead to higher purchase intent. INDEPENDENT REPORT | 19
Culture, Career Purpose and Retention The New Competitive Advantage for Community Banks By Emanuel Wilder, Program Manager Watson Institute, ICBC Associate Member The community banking industry has long offered stable, meaningful careers built on trust, relationships and community impact. Yet many banking professionals today are quietly struggling with a growing internal disconnect. They no longer see a clear connection between the work they do each day and the future they hope to build for themselves. This growing “identity gap” has become one of the most overlooked workforce challenges facing financial institutions, leading to increased turnover. Entry-level retail banking roles continue to face persistent retention challenges, with approximately 12% of banking employees leaving within their first six months and retail banking turnover averaging roughly 18% annually, significantly higher than many other banking segments (WiFiTalents, February 2026). Employees are meeting expectations and serving customers, but many are asking deeper questions: Am I growing here? What larger industry problem is my skill set uniquely designed to solve? Is this organization helping me solve it? When employees cannot envision long-term growth inside an organization, engagement begins to decline. Research from Gallup consistently shows that employees who feel connected to purpose at work are more engaged, productive, resilient and loyal. Purpose-driven employees are also less likely to experience burnout or seek opportunities elsewhere. For community banks already navigating talent shortages, leadership succession concerns and rapid industry change, this challenge carries significant consequences. Employees do not remain loyal simply because they receive a paycheck. They remain loyal because they can see themselves contributing meaningfully to the organization’s mission while developing a stronger sense of professional identity. Unfortunately, many traditional banking development models focus almost entirely on technical competency. Employees are trained to process transactions, manage compliance and mitigate risk, but are rarely taught how to build leadership presence, strengthen emotional intelligence, communicate strategically, navigate workplace culture or discover long-term career purpose. As a result, many professionals become technically capable but emotionally disconnected. That is precisely why purpose-centered workforce development initiatives are becoming increasingly valuable across the banking industry. The Career Accelerator Fellowship, powered by Watson Institute, was designed to address this widening gap between evolving industry demands and the professional growth employees need to thrive long term. Rather than focusing solely on technical performance, the fellowship approaches development holistically, helping professionals reconnect with confidence, adaptability, communication, initiative and career purpose. Structurally, employees participate in a dynamic, eight-month immersive experience that includes interactive workshops, one-on-one coaching and thoughtful discussions led by subject matter experts. For partners seeking to leverage Colorado’s $126K tax incentive, the program can be structured 20 | INDEPENDENT REPORT
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