An Exceptional NMBA Annual Convention By Max Myers Page 4 A Stress Test For America’s Legal System By Mark Anderson Page 10 Leading New Mexico Bankers Forward By John W. Anderson Page 6 PUB 23 | ISSUE 2 PUBLISHED BY NEW MEXICO BANKERS ASSOCIATION, FOUNDED IN 1906
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OVER A CENTURY: BUILDING BETTER BANKS — HELPING NEW MEXICO REALIZE DREAMS Our Mission The mission of the New Mexico Bankers Association (NMBA) is to serve member bank needs by acting as New Mexico banking’s representative to government, the public and the industry; providing resources, education and information to enhance the opportunities for success in banking; promoting unity within the industry on common issues; and seeking to improve the regulatory climate to the end that banks can profitably compete in the providing of financial and related products and services. ©2026 New Mexico Bankers Association (NMBA) | MBR Connect. All rights reserved. New Mexico Bankers Digest 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 NMBA, 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. New Mexico Bankers Digest is a collective work, and as such, some articles are submitted by authors who are independent of NMBA. 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. 4 PRESIDENT’S MESSAGE An Exceptional NMBA Annual Convention By Max Myers, President, New Mexico Bankers Association 5 114th Annual Convention Wrap-Up 6 EXECUTIVE VICE PRESIDENT’S MESSAGE Leading New Mexico Bankers Forward By John W. Anderson, Executive Vice President, New Mexico Bankers Association 8 WASHINGTON UPDATE The Legacy of American Banking By Rob Nichols, President and CEO, American Bankers Association 10 A Stress Test for America’s Legal System By Mark Anderson, Legal and Legislative Assistant, New Mexico Bankers Association 11 NMBA’s Mark Anderson Receives Statewide Writing Award 12 Three Questions Banks Should Ask About Moving Deposits Off Balance Sheet A Strategic Decision — NOT a Reaction By H.D. Barkett, Senior Managing Director, IntraFi 14 Tokenized Deposits vs. Stablecoins Understanding the Difference By Michael A. Johnson, SVP & Southwest Regional Manager, PCBB 16 Housing New Mexico Recognizes Its 2026 Top Lenders Helping Thousands of New Mexico Families Become Homeowners Each Year By Kristie Garcia, Housing New Mexico 19 Stronger Together Joining Forces to Advance Payments and Financial Access By Jeff Foote, CTP, President & CEO, and Lonnie C. Talbert, Chief Industry Executive, ePayResources 21 IN MEMORIAM Bob Forrest 21 SW Graduate School of Banking Announces 162nd Assembly for Bank Directors 22 B:Side Assist Launches AI‑Powered Financial Platform for Small Business Owners CONTENTS 2026-2027 NMBA Board of Directors President Aaron Emmert Pioneer Bank 3000 N. Main St. Roswell, NM 88201 President-Elect Liz Earls Capra Bank 400 Tijeras Ave. NW Albuquerque, NM 87102 Secretary-Treasurer Scott Czarniak First National 1870 7300 Jefferson St. NE Albuquerque, NM 87109 Immediate Past President Max Myers Century Bank 100 S. Federal Pl. Santa Fe, NM 87501 Executive Vice President John Anderson NM Bankers Association 7801 Academy Rd. NE, Bldg. 2, Ste. 202 Albuquerque, NM 87109 TERMS EXPIRING 2027 Nicole Noto Wells Fargo Bank N.A. 200 Lomas Blvd. NW, 12th Fl. Albuquerque, NM 87102 Jay Jenkins CNB Bank PO Box 1359 Carlsbad, NM 88220 Jason Wyatt Western Commerce Bank 212 N. Canal St. Carlsbad, NM 88220 TERMS EXPIRING 2028 Paul Mondragon Bank of America 2125 Louisiana Blvd., Ste. 120 Albuquerque, NM 87110 Mark Horn Pinnacle Bank PO Box 1729 Gallup, NM 87305 Ken Clayton Western Bank 320 W. Texas St. Artesia, NM 88210 TERMS EXPIRING 2029 Richard Rowley Bank of Clovis 300 Main St. Clovis, NM 88101 Sheila Mathews Four Corners Community Bank 500 W. Main St., Ste. 101 Farmington, NM 87401 J. Chesley Steel Southwest Capital Bank 1410 Central Ave. SW Albuquerque, NM 87104 3
The NMBA is an excellent organization that has improved our industry and strengthened our communities throughout our state. PRESIDENT’S MESSAGE An Exceptional NMBA ANNUAL CONVENTION MAX MYERS President New Mexico Bankers Association The NMBA 114th Annual Convention was a huge success. Many thanks to John and Mark Anderson for all their help in putting it together. The historic La Fonda Hotel was a great location for us, as it’s situated right on the Plaza, and provided great hospitality, food and close proximity to all the great shops and restaurants in downtown Santa Fe. The speakers generated thoughtful discussion on the state of healthcare in New Mexico, discussed ongoing and evolving aggressive fraud tactics, and finished with Dale Dekker’s analysis on future business opportunities for our state. Our Annual Golf Tournament at Black Mesa Golf Course was a hit. Our winning team scored under par despite the tough terrain the course provides. Then, we had 22 foodies enjoy a cooking class with James Beard Award-winning cookbook writer Cheryl Jamison at the Santa Fe School of Cooking. Cheryl did an amazing job of demonstrating how to make some great Southwestern dishes, which were enjoyed by all. Cheryl also signed her most recent books for all the participants. Thanks again to the board members who attended and helped with the convention, and especially Mark and John for their commitment to the association. This will be my final President’s Message. It has been an honor to serve as president of the New Mexico Bankers Association. The NMBA is an excellent organization that has improved our industry and strengthened our communities throughout our state. I know that Aaron Emmert, Pioneer Bank, will do a fantastic job as NMBA president in the coming year. Congratulations to him and thank you! 4
114TH ANNUAL CONVENTION WRAP-UP The NMBA held its 114th Annual Convention on Thursday, June 18, and Friday, June 19, in Santa Fe at the La Fonda Hotel. The convention’s theme was a celebration of the 100th anniversary of Route 66. Max Myers, NMBA president and lifetime resident of Santa Fe, wanted to showcase his hometown and did so spectacularly. Thank You, Convention Sponsors Diamond Sponsor ($5,000) BHG Financial Emerald Sponsor ($3,000) Federal Home Loan Bank of Dallas Gold Sponsors ($2,000) American Bankers Association Capital CDC Silver Sponsors ($1,000) B:Side Capital Housing New Mexico/MFA NFP Wespay Rep. Christine Chandler speaks at the Friday event. Keith Edwards of Payday HCM discusses Payday’s company profile. Shiela Finley of Advantage by JMFA discusses JMFA’s company profile. Max Myers presents John Anderson with gifts at the President’s Dinner. Max Myers speaks at the President’s Dinner. Dr. Barbara McAneny speaks at Thursday’s dinner. Black Mesa Golf Course, the site of the NMBA’s Annual Golf Tournament 5
EXECUTIVE VICE PRESIDENT’S MESSAGE LEADING NEW MEXICO BANKERS FORWARD JOHN W. ANDERSON Executive Vice President New Mexico Bankers Association 2026 Annual Convention The NMBA held its 114th Annual Convention on Thursday, June 18 and Friday, June 19 in Santa Fe at the La Fonda Hotel. The convention’s theme was a celebration of the 100th anniversary of Route 66. Max Myers, NMBA president and lifetime resident of Santa Fe, wanted to showcase his hometown, and his efforts exceeded all expectations. The La Fonda is a fantastic venue for a convention. As you walk out the front entrance, you are only a few blocks from four major museums, limitless shopping and over 25 nearby restaurants. Our out-of-state attendees were overwhelmed by the charm of the city. We had two events prior to calling the convention to order. First, a golf tournament was held at the Black Mesa Golf Course in Española, a few miles outside of Santa Fe. The course was recently named one of the “Ten Most Spectacular Courses in the World” by LINKS Magazine. If you do play a game, make sure to bring plenty of golf balls. One of our golfers lost eight balls on one hole, but he wasn’t fazed because he was playing with range balls. It is a difficult, but fun, test for players of all skill levels. The second event was a cooking class at the Santa Fe School of Cooking. The class instructor was James Beard Award-winning chef and author Cheryl Jamison, and, not surprisingly, we had many attendees. A multicourse lunch was served, which was described by all participants as “superb.” During our President’s Dinner on Thursday evening, new NMBA Officers and Board Members were elected: • Aaron Emmert (Pioneer Bank) — President • Liz Earls (Capra Bank) — President-Elect • Scott Czarniak (First National 1870) — Treasurer • Rick Rowley (Bank of Clovis) — Board • Chez Steel (SW Capital Bank) — Board • Sheila Mathews (Four Corners Community Bank) — Board The dinner’s keynote speaker was Barbara McAneny, MD, CEO of New Mexico Oncology and Hematology Consultants Ltd., and former president of the American Medical Association. Her presentation, “The Health Care Crisis — Is There a Doctor in the House?” was excellent and incredibly informative. The second day of the convention featured four fantastic speakers. First, Srinivas Mukkamala, Ph.D., gave a thorough overview of artificial 6
intelligence. Then, Rep. Christine Chandler (D-Los Alamos) discussed the major accomplishments of the 2026 State Legislature. Following Rep. Chandler, Raymond Olsen, WinTrust, outlined methods for tackling fraud. Then, to conclude the proceedings, Dale Dekker, DPS Design, provided a fascinating overview of what is going on in New Mexico. No convention is possible without tremendous sponsors and vendors. We want to give a major shoutout to the following: • Abrigo • Advantage, Powered by JMFA • American Bankers Association • B:Side Capital • Banc Consulting Partners • BHG Financial • Capital CDC • Cook Solutions Group • ePayResources • Everon Solutions • Federal Home Loan Bank Dallas • Housing New Mexico/MFA • New Mexico Finance Authority • NFP • PayDay HCM • Wespay Also, a very special thanks to BHG and Kathleen Connellan for sponsoring the President’s Dinner. Legislative Update To our surprise, New Mexico State Sen. Peter Wirth (Santa Fe) announced that he will not seek the Senate majority floor leadership position again after next year’s legislative session nor seek a sixth term in 2028. Wirth has served in the state Senate since 2009 after a stint in the state House of Representatives and has served as majority floor leader for 10 years. In a statement, he said he decided not to seek re-election to his leadership position or Senate seat because it was “the right moment” to pass the torch. “I have always believed that strong institutions outlast any individual leader, and that one of the most important things a leader can do is prepare the ground for what comes next,” he said. “The New Mexico Senate Democratic Caucus has never been stronger. This is the right moment to make way for a new majority leader, not because the work is done, but because the work must continue, and continue well.” Rep. Marian Matthews (D-Albuquerque) was defeated in the 2026 primary. She is a great supporter of business and the banking industry, and she also sponsored a number of bills on behalf of the NMBA. She will certainly be missed. Six incumbent state House members did not run for re-election in 2026: • Joanne Ferrary (D-Las Cruces) • Susan Herrera (D-Embudo) • Matthew McQueen (D-Santa Fe) • Mark Murphy (R-Roswell) • Martin Zamora (R-Clovis) • Jimmy Mason (R-Artesia) Senators are not up for re-election in 2026. 2028 Legislature The 2028 Legislature opens on Tuesday, January 19 and adjourns on Saturday, March 20. There is no limitation on issues that can be addressed during the 60-day session, nor a limit on the number of bills that individual legislators can introduce. Issues likely to be considered include AI regulation, interchange, public bank, state tax reform, health care and criminal justice. 7
THE LEGACY OF AMERICAN BANKING On July 4, cities and towns across the nation celebrated 250 years of American independence. By and large, Americans all know our founding story: how a group of 13 original colonies broke free from Great Britain, formed a union and grew over two and a half centuries into a global superpower. But perhaps a lesser-known part of that story is the critical role that banks played in securing American independence and transforming this nation into what it is today. Great Britain forbade its American colonies from operating their own banks — just one of the many restrictions that pushed the colonies to rebel. With no established banking system, the colonists found themselves at a disadvantage, and the Revolutionary War effort faltered until the Bank of North America was chartered by the Second Continental Congress in 1781. WASHINGTON UPDATE ROB NICHOLS President and CEO American Bankers Association 8
bside.org hello@bside.org DAWN BECK 505.492.8120 WE’LL ROCK YOUR SOCKS OFF Partner with B:Side on your next SBA 504 or 7(a) project. Based in Philadelphia, the bank began operations in 1782, and was an immediate success, paying strong dividends to investors, and providing a critical line of credit to the fledgling Congress. The Bank of North America was the first commercial bank in the U.S. While it refashioned itself in the 1780s, it served as a model for the First Bank of the United States, which Alexander Hamilton founded in 1791 to help stabilize a nascent U.S. financial system beleaguered by heavy war debts. Hamilton believed in the power of the private banking model for maintaining discipline; when the Bank of the United States was opened, it marked the first IPO in American history. Private investors owned 80% of the Bank of the United States, with the government owning the remaining 20%. While the Bank of the United States charter lapsed, briefly at first and then permanently in 1836, it demonstrated to young leaders like Abraham Lincoln what a diverse, well-capitalized banking system could do to grow our economy. Throughout moments that followed — the Civil War, the growth of the United States as an industrial superpower, our victory in two world wars — banking was what helped propel America forward and into new stages of growth and development. Throughout our history, Americans have relied on banks of all sizes to provide the credit needed for individuals and businesses to thrive. Our financial ecosystem is unique in terms of the diversity of institutions that operate today — from small community banks, mutuals and minority depository institutions that serve niche markets, to midsize and regional banks, to the largest global financial institutions operating on multiple continents. Our country has thrived thanks to that interconnected network of financial institutions, and it’s helped create the opportunity for Americans from sea to shining sea to participate in the economy and pursue their dreams. And that’s an American tradition worth protecting and worth celebrating. Email Rob at nichols@aba.com. 9
A STRESS TEST FOR AMERICA’S LEGAL SYSTEM By Mark Anderson, Legal and Legislative Assistant, New Mexico Bankers Association The United States’ legal system and the notion of the law have long existed in a rarified air among its most celebrated practitioners, with decorated lawyers often seeing the discipline as something closer to part of the natural order than a man-made practice subject to human fallibility. We are currently in a frightening, albeit fascinating, time where the traditional posture of American law as a sanctified craft is under a complete assault from individuals with extreme financial and political power. If there’s an overriding theme of the American legal system in 2026, it’s the looming threat of foundational destruction due to the lawlessness and impunity of the wealthy and powerful. In observing how Americans process information and current events, it is striking that a strong opposition to street-level crime runs in parallel with an apathy toward crimes committed by financial, political and social elites. Obviously, street crime is deleterious to societal well-being and should be handled as such by the law, but crimes committed by individuals in positions of extreme power are also extraordinarily harmful. Unfortunately, in America, we seem to have a massive blind spot when it comes to criminality among the elite, particularly in the financial realm. Notably, the level of impunity and rapaciousness in white-collar criminality is increasing to such an extent that it’s becoming difficult not to notice. In April of this year, independent investigative reporters at ProPublica found that the Trump administration is shutting down criminal investigations, particularly white-collar cases, at a record pace. As ProPublica’s article details, “In the first days after Pam Bondi was appointed attorney general last year, the Department of Justice began shutting down pending criminal cases at a record pace. The cases included an investigation into a Virginia nursing home with a recent record of patient abuse; probes of fraud involving several New Jersey labor unions, including one opened after a top official of a national union was accused of embezzlement; and an investigation into a cryptocurrency company suspected of cheating investors. In total, the DOJ quietly closed more than 23,000 criminal cases in the first six months of President Donald Trump’s administration, abandoning hundreds of investigations into terrorism, white-collar crime, drugs and other offenses as it shifted resources to pursue immigration cases, according to an analysis by ProPublica. The bulk of these cases, which were closed without prosecution and known as declinations, had been referred to the DOJ by law enforcement agencies under prior administrations that believed a federal crime may have been committed. The DOJ routinely declines to prosecute cases for any number of reasons, including insufficient evidence or because a case is not a priority for enforcement. But the number of declinations under Bondi marks a striking departure not only from the Biden administration but also the first Trump term, according to the ProPublica analysis, which examined two decades of DOJ data, including the first six months of Trump’s second term. ProPublica determined the increase is not the result of inheriting a larger caseload or more referrals from law enforcement. “In February 2025 alone, which included the first weeks of Bondi’s tenure, nearly 11,000 cases were declined, the most in a month since at least 2004. The previous high was just over 6,500 cases in September 2019, during Trump’s first administration.” It’s important to note that even before the Trump administration’s aggressive shift away from DOJ prosecutions in numerous areas, the United States was remarkably gentle and conciliatory toward wealthy, white-collar criminals. It’s no secret that many countries fit this mold, but America is certainly at the front of the pack. An article from the BBC that explores the harms of white-collar crime offers a few possible explanations. Georgie Weatherby, a professor of sociology and criminology at Gonzaga University, argues in the article 10
that the American public holds misconceptions about the seriousness of white-collar crimes. “The costs to society of white-collar crime are immense, but people don’t feel them directly,” she said. “How safe they feel in their homes, where they can walk at night, these are the issues people feel. They are tangible.” As the BBC piece further outlines, “The FBI estimates that white-collar crimes cost the U.S. economy more than $350 billion per year and can have serious impacts on people’s lives. When companies or individuals illegally avoid paying taxes, there is less money for public services such as schools and infrastructure. In the U.S., white-collar crime also increases the cost of healthcare. The FBI predicts that ‘losses due to fraudulent activity approached 10% of the amount of money that we expend in healthcare.’ While Ms. Weatherby notes that some high-profile white-collar criminal cases have caught the attention of the American public, such as the Enron scandal, she suggests people have short memories, and any outrage quickly dies down. Weatherby adds that society romanticizes white-collar criminals and the money and power they often accrue, which affects the treatment they receive. She also told the BBC that white-collar criminals are conceptualized as the American Dream gone wrong, not as doing something intentionally illegal.” One major cause of Americans’ apathy toward elite lawlessness and impunity is that, before our current era, such abuses were largely carried out behind the scenes by people intelligent enough to conceal their most egregious abuses. Prior to this era, we had extraordinarily wealthy people who, at a minimum, understood the give-and-take that must be conducted with a restless public. However, particularly over the past decade, America’s elite have adopted a different posture, one marked by defiance and the belief that they owe absolutely nothing to the society that enabled them to accumulate such enormous wealth. Their behavior has heightened the contradictions within our system and has made even ostensibly apolitical citizens aware that the rule of law, when one has enough money and power, can be manipulated to one’s own ends. Ultimately, few conditions herald societal decay more than a collective loss of trust in the legal system and shared belief that the law applies only to some. Practitioners of the law need to be fully aware that this is an existential fight for the foundations of our legal system, not a high-minded philosophical discussion. There is a group of extremely wealthy, powerful people in this country who feel they are quite literally above the law, and if that isn’t rectified, then no theoretical defense of our legal system will matter. If the most powerful people in a society are allowed to run roughshod and commit crimes with impunity, that society has more in common with an organized crime syndicate than it does a democracy with a just legal system. Increasingly, extremely powerful people are getting away with crimes beyond the financial realm and committing even darker abuses of the law. We have many intelligent, decorated legal professionals in this country, and it is crucial that they realize that some of the most powerful figures in society view the law not as a high-minded pursuit of philosophical virtue, but as something to be manipulated when convenient or discarded when not. If the legal community can unite with an increasingly informed and impassioned citizenry, we will be better positioned to defend our legal system and protect its promise of justice for all. NMBA’S MARK ANDERSON RECEIVES STATEWIDE WRITING AWARD Mark Anderson, legal and legislative assistant for the NMBA, was recently awarded first place in the “Writing — Editorial/Op-Ed” category of the New Mexico Press Women’s 2026 Professional Communications Contest. His winning column, “NAFTA and Its Enduring Legacy,” originally appeared in 2025 Pub. 22 Issue 2 of New Mexico Bankers Digest. The statewide contest, judged by accomplished female journalists, is held each spring. Mark’s column is now eligible for the National Federation of Press Women (NFPW)’s 2026 National Communications Contest. The results of that contest will be announced at the NFPW’s National Communications Conference Award Banquet on September 26 in Ellicott City, Maryland. Scan the QR code to read Mark’s award-winning column. https://new-mexicobankers-digest.thenewslinkgroup.org/ nafta-and-its-enduring-legacy/ 11
THREE QUESTIONS BANKS SHOULD ASK ABOUT MOVING DEPOSITS OFF BALANCE SHEET A Strategic Decision — NOT a Reaction By H.D. Barkett, Senior Managing Director, IntraFi Deposit networks are often described as funding tools, enabling banks to access funds and depositors to access FDIC insurance on large amounts. But they are far more than that. Deposit networks can also be balance sheet levers — mechanisms that allow banks to manage timing, risk and optionality without sacrificing customer relationships. One crucial benefit offered by deposit networks is flexible liquidity management — including the opportunity to move deposits off balance sheet by selling them to network banks in exchange for fee income while retaining the customer relationship. There are several reasons why your bank might consider moving deposits off balance sheet: • Liquidity surges that outpace near-term loan demand • Timing mismatches between asset growth and deposit inflows • Heightened scrutiny of uninsured deposits and concentration risk following banking stress events • Regulatory attention to large depositors and funding stability When facing these circumstances, partnering with a large-capacity, established bank network to move deposits off balance sheet can give your bank a competitive advantage by creating flexible liquidity. By treating moving deposits off balance sheet as a strategic decision, rather than as a reactive outlet for excess balances, your bank can profitably retain control over future growth. The question is not whether your bank should move deposits off balance sheet — but when, why, and under what constraints. That starts with three core questions. What Opportunities Can Be Created by Moving Deposits Off Balance Sheet? Your bank can profitably move deposits off balance sheet for a number of reasons, including: • Managing deposit concentration limits, especially tied to large commercial or municipal accounts • Smoothing out seasonal or event-driven liquidity surges • Controlling where the bank stands relative to key assets, reporting or regulatory thresholds • Compensating for temporary mismatches between deposit inflows and loan demand Federal banking regulators have made clear that large depositors and uninsured balances warrant prudent management.1 Selling deposits to other banks in a deposit network allows your bank to retain the customer relationship while addressing balance-sheet, liquidity and regulatory pressures — moving the funding, not the depositor relationship. What Economic and Pricing Guardrails Should Be Considered? Are you getting paid appropriately to move deposits off balance sheet? At its core, the economics hinge on three variables: 1. The rate paid to the customer 2. The applicable deposit sell rate 3. The resulting spread and fee income Defining these up front, alongside the amount of deposits to be sold, helps ensure profitability. Establishing Pricing Guardrails Effective programs define clear guardrails, including minimum acceptable spread thresholds, and establish competitive monitoring to ensure pricing and market rate changes do not undermine the relationship. 12
Market volatility makes static assumptions dangerous. As interest rates change, economics that once worked can quietly deteriorate unless actively reviewed. Governance and Accountability Strong governance can position your bank to make strategic, rather than reactive, decisions to move deposits off balance sheet. A best practice is to establish clear ownership of pricing decisions — your bank’s asset-liability committee is one possible owner — and a defined approval path for exceptions to ensure that your deposits are priced intentionally, not deployed reflexively. Are You Operationally Ready — and Able to Pivot Back? Regulators increasingly expect deposit programs to be repeatable and auditable. To ensure you can start moving deposits off balance sheet without issue, ensure your bank has assembled and codified the following: • Customer consent and disclosures • Documentation and reporting accuracy • Settlement and reconciliation workflows • Clear ownership across treasury, operations and relationship teams Define the Trigger to Move Deposits Off Balance Sheet — Before You Need It Before moving deposits off balance sheet, clearly define the dollar magnitude of a given sell trigger, the consequences of keeping deposits on balance sheet and the expected duration of funds moved off balance sheet — weeks, quarters or a defined strategic window. Plan Your Exit Before Entry The most disciplined institutions define exit triggers in advance. These could include increasing loan demand, on-balance-sheet funding regaining strategic value or other changes in liquidity or capital needs. Moving Deposits Off Balance Sheet Is a Powerful Option When your bank needs more liquidity, it’s much easier to redeploy deposits from existing customers than it is to source new relationship deposits. Deposit networks make that flexibility possible. Other cash management offerings for customers, such as money market mutual funds and wholesale funding, are less flexible and more expensive. Ultimately, deposit networks (and using them to move deposits off balance sheet) are about control and timing. Banks that successfully use their deposit network as a liquidity management tool consistently ask: 1. What issue are we solving? 2. Are the economics disciplined and defensible? 3. Can we execute cleanly — and exit deliberately? Used well, an off-balance-sheet strategy can allow your bank to win relationships and manage risk today and preserve the option to fund growth tomorrow. That optionality is the true value of a deposit network. H.D. Barkett is senior managing director of treasury desk and program management at IntraFi. He has been involved in banking and financial services for more than 30 years, working with financial institutions on issues involving asset/liability management, liquidity management, risk assessment and management, and portfolio hedging. Deposit placement through IntraFi Services is subject to the terms, conditions and disclosures in applicable agreements. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. 1 Federal Deposit Insurance Corporation, “Section 6.1: Liquidity and Funds Management,” in Risk Management Manual of Examination Policies, https://www. fdic.gov/risk-management-manual-examination-policies/section-61-liquidity-andfunds-management.pdf; “RISK MANAGEMENT—Interagency Policy Statement on Funding and Liquidity Risk Management,” https://www.federalreserve.gov/ frrs/guidance/interagency-policy-statement-on-funding-and-liquidity-riskmanagement.htm#ANCHOR1. 13
TOKENIZED DEPOSITS VS. STABLECOINS Understanding the Difference By Michael A. Johnson, SVP & Southwest Regional Manager, PCBB Today, “tokenized deposits” and “stablecoins” are being treated much the same way. They’re used interchangeably in vendor pitches, trade press and board presentations. For most audiences, that’s fine. For community bank leaders, a deeper understanding is necessary. The two instruments differ in who issues them, what backs them, how they’re regulated and what they mean for your balance sheet. Confusing one for the other doesn’t just lead to potentially awkward conversations; it can also lead to misinterpreted risk assessments and poorly evaluated vendor relationships. Lesson 1: Two Instruments, Two Very Different Structures Tokenized deposits are what they sound like: digital tokens that represent bank deposits. They’re issued by a regulated bank, denominated in fiat, backed 1-to-1 by funds on the bank’s balance sheet, and accessible only to customers who have completed standard KYC onboarding. They live on a permissioned network, so participation is controlled and restricted to known parties. Structurally, they’re deposits with new infrastructure. Stablecoins are digital tokens pegged to a currency (usually USD) and issued by a non-bank entity. Stablecoins like USDC or USDT are backed by reserves such as Treasury bills or cash equivalents, but those reserves do not sit on a bank’s balance sheet and are not treated as insured deposits. They operate on public or open blockchain networks, accessible to anyone with a digital wallet, no banking required. A February 2026 New York Fed staff report captures the structural distinction plainly: Stablecoins intermediate safe assets into a medium of exchange, while tokenized deposits allow banks to keep funding loans and supporting credit creation, just on digital rails. It’s worth noting that bank-issued stablecoin models are beginning to emerge under frameworks like the GENIUS Act, but the comparison above reflects the common forms community bank leaders are most likely to encounter in vendor conversations today. Takeaway for Banks: Before engaging with any “digital money” pitch, establish which instrument is actually being discussed. The answer changes the regulatory, risk and balance sheet conversation entirely — and vendors don’t always make the distinction clear on their own. Lesson 2: How Each Functions in Practice Tokenized deposits are built for closed, regulated environments. Their natural use cases are interbank settlement, corporate treasury management and on-network payments between known participants. Indeed, a five-bank consortium of First Horizon, Huntington, KeyCorp, M&T and Old National has already started building shared tokenized deposit infrastructure. Their network will initially move money only between their customers. Stablecoins are built for open ecosystems. Their natural use cases are crypto trading, decentralized finance, cross-border transfers to markets underserved by traditional rails, and platform-based payments where participants may not have banking relationships at all. Stablecoins solve the portability problem by providing a form of money that can move anywhere, to anyone, without third-party permissions. They generally don’t appear on balance sheets unless the bank is directly issuing or holding them. A 2025 estimate put cross-border stablecoin volume at $9 trillion, much of it in markets where correspondent banking is slow, expensive or unavailable. That’s a genuinely different use case from what tokenized deposits are designed to do. The two instruments are solving different problems, not competing over the same one. 14
Takeaway for Banks: The use cases reflect fundamentally different designs. An instrument built for open, permissionless ecosystems carries different counterparty, regulatory and operational risks than one built for closed, regulated networks. Knowing which you’re evaluating matters to every downstream question. Lesson 3: The Regulatory Differences Tokenized deposits sit inside existing banking law. They are deposits that remain on your balance sheet, subject to the same supervision, examination standards and consumer protections as any other deposit liability. They affect funding costs, liquidity ratios and interest expense the same way as any other deposit. Stablecoins currently occupy a more fragmented framework. The GENIUS Act established a federal framework for payment stablecoins, but much remains unsettled, including how state money-transmitter regimes interact with federal rules and how reserve requirements will be enforced in practice. Notably, no equivalent legislative push exists for tokenized deposits, which regulators appear to view as an evolution of existing deposit law rather than a new category requiring new rules. The Conference of State Bank Supervisors asked the Fed, FDIC and OCC for clearer guidance. There’s also a customer and reputation dimension worth considering. Community banks don’t need to be stablecoin issuers to have exposure. If customers use stablecoin platforms that fail, face regulatory action or freeze withdrawals, they’ll bring their questions to their banker first. Takeaway for Banks: The regulatory and balance sheet differences aren’t footnotes. They determine how examiners will view any involvement, how risk should be categorized internally, and what governance your institution must put in place before engaging with either instrument in any capacity. Lesson 4: Putting the Distinction to Work Understanding these differences is only useful if it changes how community bank leaders operate on a day-to-day basis. Here are three concrete applications: Interpreting Vendor and Fintech Pitches The terminology in vendor decks is often imprecise by design. After all, “digital assets,” “tokenized money,” and “blockchain-based payments” can refer to very different things. A short checklist of questions cuts to the chase: Are you describing a tokenized deposit, a stablecoin or something in between? Where do the liabilities sit — on our balance sheet, yours or a third party’s? Which regulators oversee this activity, and under what framework? These questions should be the baseline due diligence that any bank should apply before conversations go further. Framing Board and Customer Conversations When these topics come up in the boardroom or across the counter, clear language matters. Tokenized deposits can reasonably be described as an evolution of existing deposits. They fall within the existing regulatory perimeter. Certain stablecoins warrant a more cautious approach due to different issuers, different regulatory status and reserves that don’t carry deposit insurance. The distinction gives board members and customers a coherent mental model without requiring a deep technical explanation. Building a Monitoring Habit Neither instrument requires immediate action from most community banks, but both certainly require ongoing attention. A standing quarterly or biannual agenda item is a low-cost way to stay current and keep the topic going among your leadership team and board. Track what your correspondents and core providers are building. Watch for any regulatory guidance that specifically mentions bank involvement with stablecoins or tokenized deposit networks. The landscape is moving fast enough that a six-month gap in attention can mean missing something material. A Clearer Lens for the Next Conversation The Reserve Primary Fund didn’t fail because money market funds were inherently dangerous. It failed in part because its similarity to bank deposits led too many participants — institutional and retail alike — to treat them as the same. The confusion itself was part of the risk. That same tension is playing out today with tokenized deposits and stablecoins. They share enough surface similarities (e.g., digital, dollar-denominated, blockchain-based, etc.) that many are bound to mix them up. For community bank leaders, that isn’t an option. These instruments differ in structure, regulation, risk profile and strategic implications. Understanding these differences doesn’t require becoming a blockchain expert; it just requires a consistent conversation. To continue this discussion, or for more information, contact Michael A. Johnson at mjohnson@pcbb.com. Dedicated to serving the needs of community banks, PCBB’s comprehensive and robust set of solutions includes cash management services such as settlement and liquidity for the FedNow Service, international services, lending solutions and risk management advisory services. 15
HOUSING NEW MEXICO RECOGNIZES ITS 2026 TOP LENDERS By Kristie Garcia, Housing New Mexico Thousands of New Mexico families realized the dream of homeownership in 2025 thanks to Housing New Mexico’s participating lenders and the mortgage programs offered by the organization. Housing New Mexico announced the 2026 Achievement Award recipient, as well as its Top Metro and Rural Lenders, as part of its lender recognition program. For the third year in a row, John Gabaldon with Waterstone Mortgage Corporation in Albuquerque received the Housing New Mexico Achievement Award, which is presented to mortgage originators who produce 100 or more Housing New Mexico loans in a year. “I have been working with Housing New Mexico/MFA for well over a decade now, and we have a relationship that is like family,” said Gabaldon. “We serve the common goal of wanting to help New Mexico families get into affordable housing to have a good quality of life and build generational wealth. I love working with Housing New Mexico/MFA!” Marty Padilla, also with Waterstone Mortgage Corporation in Albuquerque, was named Top Metro Lender for the second consecutive year. “My first loan using the New Mexico Mortgage Finance Authority (Housing New Mexico) program was in 1991, and over the years, I’ve had the privilege of helping what I believe to be well over 2,000 families use this program to achieve the dream of homeownership,” said Padilla. “I have seen firsthand how powerful this program is in opening doors for people from all walks of life. It has helped veterans, single mothers and fathers, retirees purchasing homes later in life, families living on Social Security, rideshare and delivery drivers, and professionals working at our national laboratories. Although there are income limits based on family size, the program has proven that homeownership is possible for many hardworking New Mexicans. It has helped people of all backgrounds and circumstances, and it continues to be one of the most impactful tools we have to help families overcome the challenges of a down payment and closing costs. “Housing New Mexico recently celebrated its 50th year of helping families across our state, and I am grateful to have been a small part of that mission. My success as one of the top lenders in New Mexico is due in large part to the opportunities this program creates for the families we serve. At the end of the day, it’s never about the award. It’s about the moment a family is handed the keys to their new home — the smiles, sometimes the tears of joy and the pride in their eyes when they realize they finally have a place to truly call their own.” Nikki Sandoval-Belt with Cornerstone Home Lending in Farmington was named Top Rural Lender for the second time in three years. “Housing New Mexico programs play a pivotal role in making homeownership a reality for so many New Mexicans,” said Sandoval-Belt. “These programs not only empower individuals and families to achieve their dreams of owning a home, but they also strengthen our communities by fostering stability and growth. The transformative impact of Helping Thousands of New Mexico Families Become Homeowners Each Year 16
Housing New Mexico’s commitment to accessible housing inspires me to continue serving the people of New Mexico with passion and dedication. Together, we are building a brighter future for all New Mexicans!” Housing New Mexico partnered with about 250 participating mortgage lenders in fiscal year 2025 to provide $555.2 million in first mortgage financing to 2,287 families and $28 million in down payment assistance, totaling 3,311 loans. In its 50-year history, Housing New Mexico has helped 72,668 families become homeowners through its first mortgage and down payment assistance programs. Metro Lender Awards are granted to those operating within the Albuquerque Metropolitan Statistical Area (MSA), while Rural Lender Awards recognize lenders outside of the Albuquerque MSA. Awards are based on the number of loans originated throughout the year, with top lenders recognized in platinum, gold and silver tiers. The following is a complete list of the 2026 Housing New Mexico Lender Award recipients. All the awards are based on 2025 numbers, and the companies listed are the companies the lenders worked for in 2025. Housing New Mexico Achievement Award (Lenders who originate 100 or more Housing New Mexico loans) • John Gabaldon (Waterstone Mortgage Corporation) Top Rural Lender (Rural lender who originates the most Housing New Mexico loans) • Nikki Sandoval-Belt (Cornerstone Home Lending) Rural Platinum (Lenders who originate 20 or more Housing New Mexico loans) • Dani Alpers (Gateway First Bank) • Donice Barnes (PrimeLending, A Plains Capital Company) • Ted Bishop (CMG Mortgage Inc.) • Nancy Black (PrimeLending, A Plains Capital Company) • Dustin Caroland (Bell Bank Mortgage) • Luis Gonzalez (loanDepot.com LLC) • Patricia Lewis (Guild Mortgage Company) • Eliot Rodriguez (loanDepot.com LLC) • Chris Wood (Primary Residential Mortgage) Rural Gold (Lenders who originate 15 or more Housing New Mexico loans) • Daniel Anderson (VIP) • Brynn Atencio (Waterstone Mortgage Corporation) • Rafael Figueroa (Guild Mortgage Company) • Susie Nelson (Guild Mortgage Company) • Socorro Rodriguez (Waterstone Mortgage Corporation) • Lindsay Rollins (Bell Bank Mortgage) Rural Silver (Lenders who originate 10 or more Housing New Mexico loans) • Phil Chavez (Guild Mortgage Company) • Donna Cline (Evergreen Moneysource Mortgage Company) • Kathi Giguere (VIP) • Priscilla Gonzalez (Movement Mortgage LLC) • Terri Martinez (Guild Mortgage Company) Top Metro Lender (Metro lender who originates the most Housing New Mexico loans) • Marty Padilla (Waterstone Mortgage Corporation) Marty Padilla with Waterstone Mortgage Corporation in Albuquerque was named Top Metro Lender for the second consecutive year. (Photo courtesy Marty Padilla) For the third year in a row, John Gabaldon with Waterstone Mortgage Corporation in Albuquerque received the Housing New Mexico Achievement Award, which is presented to mortgage originators who produce 100 or more Housing New Mexico loans in a year. (Photo courtesy John Gabaldon) Nikki Sandoval-Belt with Cornerstone Home Lending in Farmington was named Top Rural Lender for the second time in three years. (Photo courtesy Nikki Sandoval-Belt) 17
Metro Platinum (Lenders who originate 25 or more Housing New Mexico loans) • Tabitha Gallegos-Kahn (Directors Mortgage Inc.) • Sarah Gmyr-Maez (Calcon Mutual Mortgage LLC dba One Trust Home Loans) • Oscar Medrano (Waterstone Mortgage Corporation) • Paul Parsons (CMG Mortgage Inc.) • Jason Pike (Waterstone Mortgage Corporation) • Chris Russo (Waterstone Mortgage Corporation) • Steven Sheldon (Guild Mortgage Company) Metro Gold (Lenders who originate 20 or more Housing New Mexico loans) • Tina Krupar (Gold Star Mortgage Financial Group Corporation) • Lisa Lopez (Guild Mortgage Company) • Elizabeth O’Daly (Guild Mortgage Company) • Shannon Schroeder (Waterstone Mortgage Corporation) • Christine Turpen-Patton (Primary Residential Mortgage Inc.) Metro Silver (Lenders who originate 15 or more Housing New Mexico loans) • Mia Fatima Aguilar (CMG Mortgage Inc.) • Michael Bowen (Waterstone Mortgage Corporation) • Burgandy Casias (Guild Mortgage Company) • Iris Guzman (PrimeLending, A Plains Capital Company) • Sydney Lukes (HomeTrust Mortgage) • Renee Maestas (Evergreen Home Loans) • Michael Martin (Mortgage Solutions) • Ross Murray (Neighborhood Loans Inc.) • Lynette Turpen (Primary Residential Mortgage Inc.) As part of the recognition, lenders receive a commemorative certificate and year-long recognition by having a digital badge on their listing on the Housing New Mexico website. To explore a comprehensive list of Housing New Mexico-approved lenders, scan this QR code. https://housingnm.org/programs/homebuyers/ mfa-participating-lenders For more information about any of Housing New Mexico’s Homeownership Programs, scan this QR code. https://housingnm.org/programs/homebuyers Partnerships made inNew Mexico We’ve made history together — now let’s make the future even greater. With integrity at our core, since 1887. Come see us! Century Bank’s trusted Northern New Mexico leadership team, committed to your success. Standing left to right: Rose Hare, SVP | Administrative Executive Officer, Thomas Martinez, SVP | Market President, Eileen Tyrrell, EVP | CHRO, John Brichetto, President | CEO, Leroy Baca, EVP | NNM Market President, Jeff Szabat, SVP | Director of Private Banking, Karen Easton, SVP | Managing Director of Retail Banking Seated left to right: Fernando Baca, SVP | Commercial Relationship Manager, Anne Kain, EVP | CFO, Anna Maggiore, VP | Director of PR, Kenneth Romero, EVP | COO, Anita Dunmar, SVP | Digital Services Director, Floyd Morelos, EVP | CMO, Christy Majors, SVP | Commercial Relationship Manager MyCenturyBank.com 505.995.1200 18
STRONGER TOGETHER Joining Forces to Advance Payments and Financial Access By Jeff Foote, CTP, President & CEO, and Lonnie C. Talbert, Chief Industry Executive, ePayResources At the heart of every financial transaction is a customer, a business or a community that depends on reliable, secure and accessible financial services. Whether those services are delivered through electronic payments, self-service technologies or cash access points, the organizations that enable them carry an enormous responsibility. Our role, as industry associations, is to ensure our members have the knowledge, tools, advocacy and connections they need to fulfill that responsibility. That shared commitment to members, customers and the communities they serve is what brought ePayResources and ATMIA together. The merger between our organizations marks an important milestone not only for ePayResources and ATMIA, but for the industries and global markets we collectively support. From the outset, this decision has been guided by a clear objective: expanding the value we deliver by combining complementary strengths across payments, cash access, education, advocacy and industry leadership. As financial services continue to evolve, collaboration across the ecosystem is essential to helping members navigate complexity, seize opportunity and better serve those who rely on them every day. Both organizations have long supported distinct but increasingly interconnected parts of the financial ecosystem. ePayResources has built its reputation as a trusted payments association, helping financial institutions, businesses, and government organizations navigate ACH and payment operations through education, compliance guidance, risk management and industry engagement. ATMIA has established itself as the global nonprofit trade association representing the ATM and cash opportunities for financial institutions, independent ATM deployers, manufacturers, processors and technology providers worldwide. As payments channels converge and financial access evolves, the intersection between these domains has become more pronounced. Institutions that depend on electronic payments also operate ATM networks. Technology providers innovate across both digital and physical channels. Policymakers increasingly view payment choice, financial inclusion and cash access as interconnected priorities. Bringing our organizations together reflects this industry reality and positions members to benefit from a more integrated perspective. One of the most immediate advantages for members is expanded access to expertise. ePayResources’ deep knowledge of payments rules, compliance and operational risk now sits alongside ATMIA’s global leadership in ATM operations, cash management, security and self-service financial technology. This combined insight creates a more comprehensive resource for organizations navigating challenges that span multiple channels, from fraud mitigation and regulatory compliance to customer experience and operational resilience. Advocacy also becomes stronger and more coordinated. ATMIA’s global presence and experience engaging policymakers complement ePayResources’ relationships with U.S. regulators, payments networks and industry stakeholders. Together, we are better positioned to represent member interests on issues such as payment choice, fraud prevention, regulatory modernization and financial inclusion. Members benefit when their perspectives are supported by broader expertise, stronger data and a more influential collective voice. Education and professional development will expand in equally meaningful ways. Both organizations are recognized for delivering high-quality training, certifications, conferences and research. Aligning these capabilities enables richer programming that reflects how the industry operates today, connecting payments, cash, technology and innovation rather than treating them as separate disciplines. This integrated 19
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