OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION SEPTEMBER/OCTOBER ISSUE 5 2026 2026 CEO & Senior Management Summit and Annual Meeting Highlights
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©2026 The Kansas Bankers Association (KBA) | MBR Connect™. All rights reserved. The Kansas Banker is published six times per year and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of KBA, 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. The Kansas Banker is a collective work, and as such, some articles are submitted by authors who are independent of KBA. 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. Executive Doug Wareham, President & CEO Terri D. Thomas, JD, EVP — General Counsel Alex Greig, President, Bankers Insurance Solutions Brenda L. Unruh, EVP — Director of Education & Strategic Partnerships Administration Kelly VanZwoll, JD, SVP, Government Relations/Staff Attorney Eric Stofer, SVP, Chief Financial Officer Sara Blubaugh, SVP, Administration & Board Secretary Julie Taylor, VP, Computer & Information Systems Manager Tel Wittmer, VP, Government Relations Alana Seelbach, AVP, Events/Office Coordinator J.W. Wells, Ag Division Coordinator/ Government Relations Assistant Emma Thompson, Administration Intern Education & Conferences LeAnn Mott, VP, Education & Conferences Communications & Marketing Natalie Wareham, VP, Communications & Events Meridith DeForest, AVP, Communications & Marketing Rayanna Breshears, Communications & Special Projects Coordinator Insurance Elizabeth Roche, SVP, Employee Benefits Administration, Bankers Insurance Solutions Jenny Figge, SVP, Operations, Bankers Insurance Solutions Kent Owens, SVP, Bankers Insurance Solutions Cole Thompson, VP, Bankers Insurance Solutions Samantha Lee, AVP, Employee Benefits, Bankers Insurance Solutions Clinton Moore, Agency Service Representative, Bankers Insurance Solutions Legal Services Jamie Cosgrove, JD, SVP, Legal Services Director Sarah Lynch-Chaput, JD, VP, Legal Department Manager Gwen Hill, JD, VP, BCS Attorney Hannah Schroller-Simpson, JD, VP, Staff Attorney Bobby Young, JD, VP, BCS Attorney Adeel Syed, JD, VP, BCS Attorney Compliance First Banking Solutions Dylan Serrault, JD, SVP, CFBS Manager Jeff Narron, VP, CFBS Assistant Manager Neal Barclay, VP, Auditor Sarah Weltmer, VP, Compliance Operations Specialist Lew Walton, JD, AVP, Auditor Heather Williams, AVP, Compliance Operations Specialist Gabe Walker, JD, AVP, Auditor Lindsay Bryant, AVP, Compliance Operations Specialist Kat Eusey-Zuckerman, JD, Auditor CONTENTS 5 A MESSAGE FROM PRESIDENT & CEO DOUG WAREHAM Jim Maag Golf Classic Honors a Legacy of Leadership By Doug Wareham, President & CEO, Kansas Bankers Association 6 WASHINGTON UPDATE It’s Time to Talk Tokenization By Rob Nichols, President and CEO, American Bankers Association 8 2026 CEO & Senior Management Summit and Annual Meeting Highlights 13 Briefly in Kansas Banking 15 In Memory 19 Stress Testing Should Shape Decisions, Not Just Document Risk By Regan Camp, Vice President of Portfolio Risk Sales and Services, Abrigo 22 Picturing Kansas 23 Introducing the New KBA Board Members 26 50-Year Club Awards 3
A Message From President & CEO Doug Wareham Jim Maag Golf Classic Honors a Legacy of Leadership The Jim Maag Golf Classic, held in conjunction with KBA’s CEO Summit and Annual Meeting, was once again a “sell out” this past August with 144 Kansas bankers enjoying The Broadmoor’s breathtaking mountain views and glass-like greens that golfers at every skill level can find challenging. About halfway through this summer’s outing, it dawned on me that I should take the opportunity to honor the namesake (Mr. Jim Maag) for this tournament for three very important reasons. Reason #1: Kansas bankers who had the pleasure of working with Jim during his 24-year career at the KBA knew Jim was an avid and very competitive golfer. He was a talented athlete in his youth, and that athleticism carried through with his golf game until very late in his 85-year lifespan. Jim enjoyed wagering when he played, and he was adept at keeping the daily tally so he could inform everyone who would be collecting or paying debts after each round on the links. Reason #2: When Jim passed peacefully, surrounded by his wife Kathy, his children and grandchildren on May 18, 2025, I sent an email notice to Kansas bankers informing everyone of the loss of one of the most trusted and respected leaders that had ever served this great association. But I subsequently realized I had failed to note Jim’s passing in The Kansas Banker, a publication that I truly believe Jim Maag loved more than anyone since the magazine’s first edition, published in 1911. Jim was a writer, and his pen and keyboard kept Kansas bankers equally informed and entertained. Simply put, Jim’s passing deserved to be noted in The Kansas Banker magazine, so I’m taking this opportunity to honor his legacy. Reason #3: I realize there are a lot of Kansas bankers who play in the annual Jim Maag Golf Classic who didn’t have the opportunity to know Jim or understand the positive impact he had on the KBA, the KBA staff and so many Kansas bankers. Jim was a skilled political and policy advocate, he was a master scribe and orator, and his leadership and vision led to the construction of KBA’s current headquarters in Topeka, where banking industry leaders set the course for the future of our industry. The Jim Maag Golf Classic isn’t just a golf tournament. It’s a testament to a great leader who fought passionately for Kansas banks and Kansas bankers. It’s a testament to the legacy of steady, thoughtful leadership that KBA benefited from thanks to a very, very good golfer who went by the name of Jim Maag. 5
Washington Update It’s Time to Talk Tokenization By Rob Nichols, President and CEO, American Bankers Association For much of 2026, the conversation around digital assets has been dominated by stablecoins, as regulators worked to implement the GENIUS Act, the 2025 law governing stablecoins, and lawmakers debated the Clarity Act, a more comprehensive regulatory framework for all digital assets. To be clear, ABA supports establishing clear rules of the road for digital assets, but the version of the Clarity Act under consideration when the Senate recessed in August needs to be strengthened. With help from bankers, our state association partners and other business groups, we’re engaged in an all-out push to protect local lending and the economic growth it fuels by ensuring crypto companies aren’t allowed to incentivize deposit flight from banks by offering yield-like rewards on payment stablecoins. While we continue our work to improve the Clarity Act and ensure crypto firms seeking to compete with banks face the same rigorous rules as banks, it’s also time to bring the opportunities that digital assets present for our sector to the center of the conversation, including opportunities around tokenized money. Simply put, “tokenization” is the process of representing ownership of an asset on a blockchain and “tokenized money” refers to programmable digital tokens — like stablecoins, tokenized deposits and central bank digital currencies — that represent ownership of money on a blockchain. The first thing to understand about tokenization is that it’s happening right now. Capital markets are already shifting bonds, funds and collateral onto shared ledgers, so it follows that tokenized securities will need tokenized money to work efficiently. Whether in capital markets or treasury management and payments scenarios, customers are looking to take advantage of blockchain’s ability to support always-on tech, instant settlement and programmability. Bankers need to get up to speed on what’s happening — or risk getting left behind. Most bankers I speak to understand that tokenized money is important, but they aren’t sure what to do about it. That’s understandable, given the pain points currently standing in the way: Many banks find that they don’t have the scale to act alone; there are unsolved issues related to convertibility, fungibility and liquidity; “know your customer” and anti-money laundering challenges and so on. But there are also potential advantages to things like tokenized deposits: They provide stable value, improve capital efficiency, offer regulatory certainty, are recorded as “deposits” on the liability side of the balance sheet and enable credit intermediation. Across the industry, work is underway to determine how tokenized money could support faster settlement, better liquidity management and new treasury services for customers. You’ve probably seen recent announcements about banks, consortia and others launching initiatives in this space. These are important developments, but the point is not that every bank needs to build its own solution. Rather, banks of all sizes need a path to participate safely and at scale, and ABA, as well as state bankers associations and other industry partners, are focused on helping chart that path. ABA’s Office of Innovation has been at the leading edge of efforts to better understand how tokenization can benefit the banking industry from a strategic perspective. You’ll be hearing much more from us in the coming days on our work to help ABA members chart a path forward, including at the 2026 ABA Annual Convention, Oct. 25-27 in Salt Lake City. I encourage you to join us in Salt Lake to stay a step ahead. America’s banks have always been pioneers in payments innovation — and we aren’t stopping now. Email Rob at nichols@aba.com. 6
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2026 CEO & Senior Management Summit and Annual Meeting HIGHLIGHTS The KBA CEO & Senior Management Summit and Annual Meeting at The Broadmoor in Colorado Springs was an outstanding week of leadership, learning and networking with banking industry leaders from across Kansas and beyond! A record-breaking crowd of more than 560 attendees joined to hear an outstanding lineup of speakers and connect with our incredible sponsors. KBA Chairman’s Address To begin the event, KBA Chair Julie Hower, Farmers & Drovers Bank, Council Grove, shared her Chairman’s Address, highlighting a year of accomplishments for the Kansas banking industry. Hower shared KBA-spearheaded achievements ranging from pushing back on federal credit card policy mandates and price controls to the adoption of state legislation designed to help prevent scams and protect vulnerable bank customers from fraud. Hower encouraged Kansas bankers to look to the KBA for their education, insurance, legal and compliance needs, and she applauded the dramatic growth of the Kansas Bankers Educational Foundation, which is having a positive impact on bank workforce development, financial literacy and fraud protection. (L-R) Mark Schifferdecker, President and CEO of GNBank, Girard; Rob Nichols, President and CEO of the American Bankers Association; and Doug Wareham, President and CEO of the Kansas Bankers Association Mountainside Policy Chat Rob Nichols, President and CEO of the American Bankers Association, joined Mark Schifferdecker, President and CEO of GNBank, Girard, and Doug Wareham, President and CEO of the KBA, for the Mountainside Policy Chat. Nichols provided updates on key federal policy issues, including the CLARITY Act, ongoing efforts to include an ACRE Act fix in a year-end tax extender package, and the Credit Card Competition Act. He concluded with a look ahead at the 2026 election cycle and its potential implications for the banking industry. 8
Jesse Sugarman, AVP of Public Policy Initiatives with Travelers, gave attendees a broader perspective on today’s economic landscape by examining how trade policies, global conflicts and presidential agendas have shaped the economy over the past century. Drawing on more than 100 years of historical data, he helped bankers separate short-term headlines from long-term trends. His presentation sparked thoughtful discussion and received outstanding feedback from attendees, who appreciated the historical perspective and practical takeaways from his session. KBA leadership welcomed ABA President and CEO Rob Nichols and Rebecca Nichols to The Broadmoor to connect with Kansas bankers. State Bank Commissioner David Herndon received the Kansas Bankers Association Flint Factor Award on day one of the event! Commissioner Herndon has been a passionate advocate for Kansas banking for more than 30 years, including 22 years as President and CEO of First State Bank of Kansas City, service as KBA Chairman from 2008-2009, and the past seven years as State Bank Commissioner. His leadership, dedication and commitment to Kansas banks have helped strengthen and advance our industry. 9
Securing Tomorrow’s Banking Workforce Following golf, attendees enjoyed the “Securing Tomorrow’s Banking Workforce” panel, where Kansas State University President Dr. Richard Linton and University of Kansas Chancellor Dr. Doug Girod shared how their institutions are preparing the next generation of banking and business leaders. Facilitated by John Dicus, President and CEO of Capitol Federal Savings, Topeka, and Julie Hower, President and CEO of Farmers & Drovers Bank, Council Grove, the discussion explored workforce trends, talent development and how the universities are harnessing the power of AI. Congressional Panel Kansas bankers then welcomed Congressman Ron Estes, Congressman Tracey Mann, and Congressman Derek Schmidt for a federal policy update focused on issues shaping the banking industry and the communities it serves. Facilitated by Chairman Kendal Kay, Stockgrowers State Bank, Ashland, and Doug Wareham, the conversation covered topics including the SCAM Act and efforts to fight financial fraud, the CLARITY Act, prospects for a tax reconciliation package, and progress toward a new Farm Bill. 2026 Jim Maag Golf Classic Golfers were welcomed to the annual Jim Maag Golf Classic on Friday. Thank you to Central States Capital Markets for sponsoring the time-honored tradition of the traveling trophy! The winning team was Carston Cooper and Scott Cooper with Patriots Bank, Garnett, and Tyson Oakes and Brad Oakes with FirstOak Bank, Independence, who ended the day with a score of 59. (L-R) John Dicus, President & CEO, Capitol Federal Savings, Topeka; Dr. Doug Girod, University of Kansas Chancellor; Dr. Richard Linton, Kansas State University President; Julie Hower, President & CEO, Farmers & Drovers Bank, Council Grove (L-R) KBA President & CEO Doug Wareham; Congressman Tracey Mann; Congressman Ron Estes; Congressman Derek Schmidt; Kendal Kay, President & CEO, Stockgrowers State Bank, Ashland
Annual Meeting and Election of KBA Officers On the closing day of the event, Kendal Kay, President and CEO of Stockgrowers State Bank, Ashland, assumed the KBA Board Chairmanship during KBA’s 139th Annual Meeting. Meet Your 2026-2027 Officers: (L-R) Julie Hower, Past Chairman, Farmers & Drovers Bank, Council Grove; John Dicus, Vice Chairman, Capitol Federal Savings Bank, Topeka; Kendal Kay, Chairman, Stockgrowers State Bank, Ashland; Kyle Campbell, Chairman-Elect, Astra Bank, Abilene; and Doug Wareham, KBA President & CEO U.S. Navy Veteran and retired Southwest Airlines Pilot Tammie Jo Shults delivered an inspirational closing keynote session for day two of the Summit. Shults took the audience through her career as one of the first female F/A-18 Hornet Pilots in the United States Navy, then becoming a Southwest Airlines Pilot where she heroically saved the lives of 148 people during an air catastrophe. Attendees ended day two of the event with a KBA Leadership Reception and Dinner at the Cheyenne Mountain Lodge. 11
Following the annual meeting, James Kelly, Chief of Staff to Senator Jerry Moran, joined attendees and shared his journey to serving as Chief of Staff. Kelly provided an in-depth update on the CLARITY Act and where it stood in the Senate as they went into their August recess. The KBA was honored to welcome back Kansas native Miki Bowman, Vice Chair for Supervision of the Federal Reserve Board of Governors. Joined by KBA Chair-Elect Kyle Campbell, Bowman participated in a candid conversation on regulatory priorities, the future of community banking, current economic conditions and factors influencing interest rate decisions. She also highlighted efforts to bring together banks, technology platforms, telecommunications providers and other stakeholders to combat the growing threat of fraud. This year’s event was a success, and we hope to see everyone there again next August 5-7, 2027! 22318 Midland Drive • Shawnee, KS 66226 • NMLS #194708 YEARS 26 Local Partners, Shared Values, Stronger Communities We’re not a national giant – we’re your local wholesale lending partner. Together, we bring your customers the best of both worlds: • Fannie Mae Seller/Servicer • Government programs – FHA, VA, and USDA-GRH • Local expertise – We live and work in your community • Trusted partnership – Backed by 26 years of service • More options – Flexible lending without losing the personal touch Andrew Holtgraves Senior Vice President 913-558-2555 andrew@mischomeloans.com PARTNER WITH US 12
Bank of the Flint Hills Receives Kansas Regional Housing Champion Award Bank of the Flint Hills, headquartered in Wamego, received the Kansas Regional Housing Champion Award at FHLBank Topeka’s regional meeting. Along with its foundational mission to provide liquidity to members to support communities, FHLBank Topeka also supports affordable housing and community development in its district of Colorado, Kansas, Nebraska and Oklahoma. FHLBank set aside 15% of its income in 2026 to support these community-building efforts through its 638 member financial institutions. Bank of the Flint Hills, an FHLBank member since 1998, has used four FHLBank Topeka housing and community development programs to support their members and community. • They used the Mortgage Rate Reduction Product (MRRP) to make homeownership more affordable in the communities they serve. Through MRRP, they helped seven households reduce their mortgage rate, making their payments more affordable by an average of $174 per month or more than $437,000 in interest over the life of the loans. • They also used the TurnKey down payment assistance program to provide $375,000 in down payment and closing cost assistance grants to 35 households. • They took advantage of the Lending Enhancement Advance Program (LEAP) discounted BRIEFLY in Kansas Banking Bank of the Flint Hills and FHLBank Topeka staff gather at the August 31 Kansas Regional Meeting in Topeka. advances to support small business lending in their community. • They also supported 14 housing units through Community Advance Product (CAP) advances. “Any time you can lower the cost of a loan or payment, it’s a good thing for our customers,” said Lance White, President and CEO of Bank of the Flint Hills. “FHLBank Topeka’s programs were created to solve a need in communities. We appreciate these opportunities to strengthen the communities we serve.” Bank of the Flint Hills takes their commitment to the community to heart. Each February, they host a class for potential homeowners to educate them on available programs, including FHLBank Topeka grants and other programs, to help them reach their dream of homeownership. As a part of the Regional Housing Champion award, Bank of the Flint Hills selected a nonprofit to receive a $1,000 donation in their honor. Bank of the Flint Hills selected one of the causes supported by their donor-advised fund called “Casual for a Cause” — Laundry Love in Manhattan, Kansas. Laundry Love helps 30 to 40 families wash and fold their laundry each month, allowing them to redirect their limited financial resources toward other needs. As the Kansas Regional Housing Champion, Bank of the Flint Hills will be represented with the other three state winners in FHLBank Topeka’s district at the 2027 Annual Member Conference in April. One overall champion will be selected through a vote on LinkedIn. “We are proud to honor Bank of the Flint Hills and appreciate their commitment to the communities they serve,” said Kylie Mergen, Community Investment Officer, Director of Housing and Community Development at FHLBank Topeka. “We appreciated partnering with them to help many households in Kansas realize the dream of homeownership.” 13
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MARTIE FLOYD Martie Brent Floyd, 78, of Johnson, Kansas, a lifelong southwest Kansas farmer, cattleman, businessman and community leader, passed away Aug. 26, 2026, at his home, surrounded by his family and friends. Martie was born on Aug. 7, 1948, in Syracuse, Kansas, to R.D. Floyd and Evelyn Winger Floyd. He grew up on the family farm in Stanton County with his younger siblings, Roetta and Gary, surrounded by parents, grandparents, aunts, uncles and cousins. After high school, Martie enrolled at the University of Kansas. Diane Nonken had transferred to KU and happened to be the roommate of Martie’s cousin and good friend, Melva Jo Winger. Martie later remembered that Diane was pretty and smart — and, perhaps most importantly, laughed at his smart remarks. On June 13, 1970, Martie and Diane were married at Trinity Methodist Church in Hutchinson, Kansas. After Diane graduated in 1971, they returned to Johnson and the farm. Their marriage would span more than 56 years and become the foundation of the family and life they built together. In 1976, Martie and his brother Gary formed M&G Farms. Through droughts, hail, wind, blowing dirt, high prices, low prices and tremendous changes in technology, Martie never lost his confidence in or love of southwest Kansas agriculture. For decades, Martie was also involved in his family’s banking interests. In 1990, he became a director of the First National Bank of Liberal and Kansas Bank Corporation. As the family’s banking interests evolved, Martie remained involved with Dream First Bank and Legacy Financial Co. and had the satisfaction of watching the next generation of the family take increasingly important roles in the business. Martie believed strongly in giving back to the community and industry that had given so much to him. He became involved in the American Agriculture Movement during the farm crisis of the late 1970s, traveling throughout Kansas to advocate for farmers. Later, his service included the USD #452 School board, Johnson Cooperative and Skyland Grain boards, Farmland Industries, Pioneer Electric Cooperative, the Stanton County Hospital Board, WEKANDO economic development organization and the Stanton County Commission. He was also a member of the Kansas Agricultural Rural Leadership Class One and served on the board in later years. His years of service to agriculture and the cooperative system were recognized in 2021 with his induction into the Kansas Cooperative Hall of Fame, an honor that genuinely surprised him and that he described as both humbling and deeply appreciated. For all the boards, businesses and accomplishments, nothing mattered more to him than his family. Martie and Diane raised two children, Chris and Jennifer. He was proud of Chris and his wife, Dara, and enjoyed watching them raise their family and continue the family’s involvement in community banking. He was equally proud of Jennifer, not only for her career but also her involvement in her church and community, and the sons she raised. Their five grandchildren — Haley, Jayden, Dylan, Jarren and Jaxson — brought an entirely new dimension to Martie’s IN MEMORY 15
life. Then came the first great-grandchild; Martie and Diane welcomed Hogan Samuel Forrest to their family in January 2025. Martie loved his children, grandchildren and great-grandchildren and delighted in spending time with them. Martie was passionate about farming and cattle. Even after experiencing enough southwest Kansas weather to know better, he remained optimistic about next year’s crop. As much as Martie liked farming and cattle, he loved people more. He would often reminisce about all the different business owners and consultants who grew alongside his and Gary’s farm. Martie leaves behind land he cared for, organizations he helped strengthen, friendships measured in decades and generations of a family who will continue telling his stories. For someone who spent a lifetime planting things and watching them grow, perhaps the best measure of his life is what grew around him: a family, a farm, friendships, a community and generations who will carry his stories forward. That’s a pretty good crop. WILLIAM ELWOOD OAKES On Sept. 3, 2026, William Elwood Oakes, 92, of Independence, passed peacefully with all of his family surrounding him. He was a loving and devoted husband, father and grandfather. Bill was born in Wichita on March 26, 1934, to Elwood (William) Oakes and Rose (Wolverton) Oakes. He was an only child. Bill graduated from Wichita North High School, went on to Wichita State University and earned his degree in business administration. In his senior year of high school, a pretty gal caught his eye, Jacqueline Claire LaPorte. They dated for five years before getting married on April 8, 1955, after which Bill entered the Air Force. He was a Bombardier and Navigator on the B-52 Bomber. He was in the military for four years before returning home to Wichita. In 1957, Bill and Jacque purchased the bank in Yates Center. He was active in the community, serving on Rotary, Lions and many other local clubs. He served on the Home Savings Bank board for over 30 years, along with many committees with the Kansas Bankers Association. In 1984, he purchased the First National Bank (now FirstOak Bank) in Independence and Elk City, Kansas, and later was involved in adding the Pueblo and Fredonia banks into the fold. He served on the bank board for close to 40 years as Chairman of the Board. Bill was an avid hunter and fisherman. Many vacations always included hunting and fishing. When Bill was younger, his parents bought a farm in Fall River, Kansas, where his father, Elwood, grew up. They spent many weekends and summers just getting away from the city life. After moving to Yates Center, he bought a couple of farms so he could continue to enjoy his favorite pastimes. Bill was preceded in death by his wife, Jacqueline Claire Oakes and his parents, Elwood and Rose Oakes. He will be forever lovingly remembered by his family: his son, Brad (Tracy) Oakes; daughter, Lesley (Marty) Fiser; grandchildren: Tyson (Shannon) Oakes, Kyndon (Jenny) Oakes, Nate (Alisa) Fiser, Jessica (Derrick) Melton, and Ryan (Abbi) Fiser; great-grandchildren: Brynlon Oakes, Kannon Oakes, Stetson Oakes, Bryson Frazier, Kate Fiser, Wesley Fiser, Kendall Melton, Colbie Melton, Macklin Fiser, Wynn Fiser, Faye Fiser, and Wesley Nguyen-Oakes; and great-great grandchildren: Ryder Frazier and Aubrey Frazier. He will be missed by a plethora of family and friends. Jacque and Bill were blessed with many achievements, but their greatest achievement was to have been married for over 70 years, a feat that very few of us can put on our life’s resume. 16
NANCY KATHERINE BRUMMER Nancy Katherine Brummer passed away peacefully at her longtime home in Downs, Kansas, on Tuesday, July 28, 2026, at 79 years of age. Nancy was born June 25, 1947, in Osborne, Kansas, and grew up on her parents’ farm in rural Osborne County, Kansas. She graduated in 1965 from Downs High School in Downs, Kansas. Shortly after graduating, she began working at the State Bank of Downs in the position of Bookkeeper. She worked for the State Bank for 47 years, retiring in 2013. She loved her bookkeeping work and engaging with the community she served at the bank. Nancy was known as a quiet and kind person. She was fiercely independent and deeply loved her family, her home and her pets. To use the words of William Shakespeare, though she was but little, she was fierce. Nancy will be deeply missed and will live on in the hearts of her loved ones. 17
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By Regan Camp, Vice President of Portfolio Risk Sales and Services, Abrigo For some banks, stress testing is simply an annual exercise that often follows this pattern: run a scenario, summarize the results for leadership and file the materials. I’ve personally seen stress testing decks that come out once a year, usually right before a meeting, and then disappear until the next cycle — untouched, unquestioned and slightly out of date. This pattern made sense when stress testing served primarily as documentation, but today, regulators expect answers to a specific management question: What should the bank do differently because of what the test revealed? The OCC’s 2026 Comptroller’s Handbook states that “all banks can benefit from applying stress testing to their loans and portfolios.” It also emphasizes asking plausible “what if ” questions and incorporating the results into broader risk management processes. Increasingly, examiners and auditors are looking for a clearer connection between portfolio-level results and what’s actually happening within the loan portfolio. They want insight into where losses originate, which segments are most sensitive to changing conditions and how risk migrates as the environment deteriorates. As a result, when presentations of portfolio-level stress testing results start to sound a little too high level, you might see an examiner, auditor or even someone on the institution’s own risk team lean forward and ask, “Okay … but which loans actually Stress Testing Should Shape Decisions, Not Just Document Risk 19
move first?” The question is less about the numbers themselves and more about whether the institution truly understands how its portfolio behaves under stress. CECL reinforces this need. Stress testing and allowance work are different, but both rely on forward-looking assumptions about credit loss. If scenarios, segmentation, economic drivers and credit migration logic bear little relationship to the allowance methodology, management may struggle to explain the difference. Aligned assumptions create a consistent way to discuss risk across credit, finance, capital planning and accounting. Use Stress Testing To Challenge Growth Plans Growth targets should be tested before they become budgets. When a bank plans expansion by product, market or borrower segment, stress testing should show how those new loans would perform under varying degrees of economic pressure, not simply applying an average loss rate to higher volume. Stress testing analyses can show whether a target adds earnings without materially changing risk, or whether it introduces exposure that deteriorates quickly. It can also clarify the effect on provision expenses, risk-weighted assets, liquidity needs and capital ratios, helping directors and management decide whether a target is achievable, needs guardrails or should be redirected. Translate Stress Results into Capital Decisions Interagency guidance for banking organizations above $10 billion says stress-test results should be “clear, actionable, well supported and inform decision-making.” For decision-makers at institutions of all sizes, understanding the relationship between projected losses, earnings and balance sheet growth should be simplified through stress testing. A severe-scenario capital ratio is useful, but it’s also essential to see how much pressure comes from credit losses or weaker earnings, and whether planned asset growth would consume capital faster than retained earnings can replenish it. Recent FDIC data show why growth and capital should be evaluated together: Loan and lease balances rose 6.8% year over year in Q2 2026, while the industry’s Tier 1 risk-based capital ratio declined 17 basis points from the prior quarter to 13.75%. Thresholds established by stress testing may influence dividend decisions, growth limits, contingency actions or the capital the bank wants to maintain above minimum requirements. Capital planning decisions should account for a range of outcomes and retain appropriate margins for uncertainty. Make Concentrations Visible Before They Become Losses Risk can build quietly, and portfolio totals can hide important differences. A commercial real estate stress scenario may show higher losses overall, but the management discussion should quickly move to the drivers: office versus owner-occupied properties, construction versus stabilized assets or higher loan-to-value loans versus stronger collateral positions. The same principle applies to industry, geography, loan structure, borrower type and other relevant characteristics. Segment-level results help management distinguish a large concentration from one that is especially vulnerable, which might inform limits, monitoring frequency, portfolio mix and relationship-level action. A concentration report shows where exposure exists; stress testing can show how it may behave. Bring Stress Results into Underwriting Underwriting and pricing conversations should reflect how loans behave under pressure. If certain loan characteristics show early deterioration, credit leaders can evaluate whether standards, pricing, covenants, structure or monitoring requirements match the risk. A stressed segment may still offer worthwhile opportunities. The bank should be able to explain when it is willing to lend and what protections it expects in return. Stress results can support differentiated decisions: tighter terms for higher-risk structures, stronger repayment analysis for vulnerable industries or pricing that better reflects expected loss and capital usage. The connection should work in both directions, turning stress testing into a learning tool. Underwriting changes should be reflected in future stress tests so management can evaluate whether the revised standards improve outcomes over time. The Bottom Line: Make The Analysis Actionable An effective stress testing program can be both straightforward and intentional. Run scenarios relevant to the portfolio, at multiple severity levels, and update when economic conditions or portfolio composition change. Results should show which segments are most sensitive and, when appropriate, trace those results to loan-level characteristics. Most importantly, management should be able to state what changed as a result of the analysis. Did the bank adjust a growth target, capital buffer, concentration limit, underwriting standard or monitoring plan? If the answer is no, the next question should be whether the stress test is providing enough decision-useful information. Effective stress testing demonstrates that the bank understands how its portfolio may behave when conditions do not align with the plan. 20
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KBA Board Members INTRODUCING THE AMY BARBER Amy Barber is Trust Fiduciary and Compliance Manager with Central National Bank in Topeka, where she has served for nearly 30 years. Amy has been active on the Trust Acceptance & Account Review Committee and the KBA Trust Division Board, where she currently serves as President. Amy is a 1996 graduate of Kansas State University with a bachelor’s degree in business administration and a concentration in accounting. She is also a 1997 graduate of the School of Trust & Financial Services. Amy has two children: Zane and Jazmyn. Aside from her work, Amy enjoys gardening, being active and singing with her church. FRANK CARSON IV Frank Carson IV has more than two decades of banking experience and is currently President & CEO of Carson Bank. Frank is an active member of KBA, having previously served on the KBA Board of Directors and as President of the Young Bank Officers of Kansas (YBOK) Division. He earned his Bachelor of Science in business management from Kansas State University and is also a graduate of the Graduate School of Banking at the University of Wisconsin-Madison. Frank and his wife Kourtney have four children: Frank V, Henry, Kit and Greta. Outside of the bank, Frank can be found enjoying KSU sports, hunting, fishing or spending time outdoors with family and friends. JOHN DICUS John Dicus is Chairman and CEO of Capitol Federal Savings Bank in Topeka. John brings more than 40 years of banking experience to the KBA Board, having been with Capitol Federal since February 1985. John earned his bachelor’s degree in business and his MBA from the University of Kansas. He and his wife Brenda have three grown daughters: Ellen, Emily and Laura. In his spare time, John can be found on the golf course. STEPHEN HENDRICKSON Stephen Hendrickson is with Citizens State Bank of Marysville, where he is Branch President of the Hanover location. Stephen has been with the bank since 1991. He has been active with the KBA, having previously served on the Lending Committee, State Affairs Committee and the Kansas Ag Bankers Division, where he currently serves as the division’s President. Stephen is a graduate of the 2018 Bank Leaders of Kansas class. He is also an active community member serving on various foundations and as a volunteer fire department member. Stephen is a graduate of Kansas State University with a bachelor’s degree in agronomy and soil and water conservation. He is also a 1996 graduate of the Graduate School of Banking at Colorado. Stephen and his wife Brenda have three grown children. Aside from banking, Stephen enjoys traveling with his wife and spending time with his grandkids. New 23
BRIAN HOBAN Brian Hoban has been with Country Club Bank, a division of FNBO, since 2020, where his current role is Managing Director, Corporate Banking. Brian has served on multiple committees aside from KBA, including the Supporting Kids Foundation where he is a Past Board President, and Boys Hope Girls Hope. He earned his Bachelor of Science in accounting from Rockhurst University and is also a graduate of the Executive Development Institute, Graduate School of Banking at Colorado. Brian and his wife Megan have three children: Ally, Carly and Brock. Aside from banking, Brian’s hobbies include golf and youth sports. He enjoys leading a training process that grows franchise value and market share through the development of talent. TROY HUTTON Troy Hutton is President, CEO & Chairman of the Board with First National Bank of Hutchinson, where he has served since 2013. Prior to his current position, Troy was President & CEO of Heritage Bank Arizona. Troy has also served on KBA’s Federal Affairs Committee and the KBSI Board. He is also the 2026 Chair of the Reno County Chamber. Troy received his bachelor’s degree from St. Mary of the Plains College. Troy and his wife Nikki have a daughter, Alexis. When he isn’t working, Troy likes spending time with his family, traveling or golfing. BETH MASTERSON Beth Masterson is Commercial Loan Officer — Vice President with Legacy Bank in Wichita. Prior to her current role, Beth managed the bank’s loan operations team for 12 years. Beth also currently serves as the Young Bank Officers of Kansas (YBOK) Division Board President. Beth received her bachelor’s degree in business administration from Wichita State University. She is also a 2025 graduate of the Bank Leaders of Kansas (BLOK) program. Beth is passionate about advocating for the future of community in Kansas by building strong relationships, supporting local businesses and strengthening the communities we serve. Beth and her husband Kyle have two children. They enjoy supporting their kids’ numerous activities and traveling with friends and family. VANCE RUGGELS Vance Ruggels has been in banking since 1988 and is currently President of Southwind Bank in Natoma. Vance has been an active KBA member, having previously served on the KBA Education Committee. He earned his Bachelor of Business Administration in accounting from Fort Hays State University. Vance and his wife Stephani reside in Russell and have three children. Outside of the office, Vance can be found spending time with his grandchildren, traveling with family or playing on the golf course. JUSTIN SPARKS Justin Sparks is President & CEO of Bankers’ Bank of Kansas and brings more than 20 years of banking experience to the KBA Board. Justin has also served on KBA’s Federal Affairs Committee. He earned his Bachelor of Science in business marketing and management from New Mexico State University, as well as an associate degree from Cowley Community College. Justin and his three children, Jade, Peyton and Cale, reside in Wichita. Outside of the office, you can find Justin spending time with his kids and friends or working on his fitness and yard. Having grown up in a small Kansas town, Justin believes in community banks and the value they bring to their customers and communities served. 24
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Great Work Begins With Great People … Contact us today to place your announcement. Call (801) 676-9722 or scan the QR code to fill out the form. Let’s Celebrate Them! This magazine is a perfect place to recognize your employees for: » Awards » Promotions » Anniversaries » Achievements » Retirements Rebecca A. Hawk, Exchange Bank & Trust Congratulations to Rebecca A. (Becky) Hawk on reaching an extraordinary milestone of 50 years in Kansas banking! Becky began her career at Exchange National Bank in Atchison on Aug. 2, 1976, as a teller and has dedicated her entire banking career to what is now Exchange Bank & Trust. Over the past five decades, she has served in numerous roles, developing expertise in bank operations, investments, public funds pledging, repurchase agreements, corporate governance and human resources. Today, she serves as Vice President & Chief Human Resource Officer, Cashier and Secretary. A lifelong resident of Atchison County, Becky is known for her unwavering dedication, deep institutional knowledge and steady leadership. Her ability to remain calm under pressure and her commitment to both the bank and its employees have earned the respect of colleagues throughout her career. Becky’s 50 years of service reflect a remarkable commitment to her community, her coworkers and the customers she has served along the way. The Kansas Bankers Association is excited to recognize Becky Hawk for this outstanding achievement and to welcome her into the KBA 50-Year Club. Her five decades of dedication represent an incredible legacy of service to Exchange Bank & Trust and the Kansas banking industry! 50-YEAR CLUB Awards 26
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