OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION HAPPY HOLIDAYS From Your KBA Staff NOVEMBER/DECEMBER ISSUE 6 2024
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©2024 Kansas Bankers Association | The newsLINK Group LLC. All rights reserved. The Kansas Banker is published six times each year by The newsLINK Group LLC for the KBA 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 the Kansas Bankers Association, 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 the Kansas Bankers Association. While The Kansas Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS Message from KBA President & CEO Doug Wareham 6 Course Change Expected for Bank Regulators & Regulations Message from SVP of Government Relations Alex Orel 8 Kansas Legislature Expands Republican Supermajority in Kansas House and Senate 10 Strategic Reset for KBA’s Vision, Mission and Top Initiatives 12 2024 KBA Board of Directors, Federal Affairs Committee and Bank Leaders of Kansas (BLOK) Class March on Washington, D.C. 18 2024 YBOK Annual Conference Recap 24 Briefly in Kansas Banking In Memory 26 Leonard Dale Sprague 28 2024 KBA Trust Conference 32 Kansas Bankers as Leaders 34 2024 Economic Outlook & Risk Management Conference November 6-7, Hilton Garden Inn, Manhattan Endorsed Vendor 39 How a Financial Services Firm Gained Efficiencies and Cut Costs by Outsourcing Business Print Services By Ryan Roberts, ODP Business Solutions, KBA Endorsed Vendor 42 2025 Conference Preview Executive Doug Wareham, President & CEO Kathy Taylor, JD, EVP, General Counsel Terri Thomas, JD, EVP, COO Alex Greig, President, KBA Insurance Inc. Administration Alex Orel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Sara Blubaugh, SVP, Administration & Board Secretary Julie Taylor, VP, Computer & Information Systems Kelly VanZwoll, JD, VP, Staff Attorney & Government Relations Alana Seelbach, AVP, Administration & Special Projects J.W. Wells, Ag Division Coordinator/ Government Relations Assistant Emma Thompson, Admin Intern Communications & Marketing Mary Taylor, SVP, Director of Communications & Marketing Bree Hull, AVP, Communications & Marketing Rayanna Breshears, Marketing & Strategic Partnerships Coordinator Education and Conferences Brenda L. Unruh, SVP, Director, Education & Conferences/Strategic Partnerships LeAnn Mott, VP, Education & Conferences Natalie Wareham, AVP, Education & Conferences Insurance Alex Greig, President, KBA Insurance Inc. Kent Owens, SVP, KBA Insurance Inc. Elizabeth Roche, SVP, Employee Benefits Administration Jenny Figge, SVP, Operations Cole Thompson, AVP, KBA Insurance Inc. Clinton Moore, Agent Services Representative, KBA Insurance Inc. Samantha Lee, Employee Benefits Specialist Legal/Compliance Jackie Kuhn, JD, VP, Staff Attorney Gwen Hill, JD, VP, Staff Attorney Jamie Cosgrove, JD, VP, Legal Department Manager Dylan Serrault, JD, VP, CFBS Manager Bobby Young, JD, VP, Staff Attorney Adeel Syed, JD, VP, Staff Attorney Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kerry Clark, JD, AVP, Staff Attorney & Publications Specialist Lew Walton, JD, AVP, Compliance Specialist/Auditor Meridith DeForest, AVP, Administrative Legal Assistant Sarah Weltmer, AVP, Compliance Operations Specialist Shannon Capps, AVP, Compliance Operations Specialist Heather Williams, Compliance Operations Specialist Lindsay Bryant, Compliance Operations Specialist Sarah Lynch-Chaput, JD, Staff Attorney Gabe Walker, JD, Compliance Specialist, Auditor Tom Thomsen, Legal Intern Kat Eusey-Zuckerman, Legal Intern Darby Leitch, Legal Intern
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Course Change Expected for Bank Regulators & Regulations MESSAGE FROM KBA PRESIDENT & CEO DOUG WAREHAM President Trump has wasted little time building a cabinet that will help him advance his “America First” agenda, which appears focused on strong border security, broadening the scope of federal tax cuts enacted during the President’s first term, and dramatic reductions for the size and scope of our federal government with the help of well-known entrepreneurs Elon Musk and Vivek Ramaswamy. President Trump’s return to the White House, with a very strong total of 312 electoral college votes, appears to have given the new administration ample momentum for a course change for America. Included in that change of course, will be the removal of Rohit Chopra as Director of the Consumer Financial Protection Bureau (CFPB), as well as the removal of Michael Hsu, the Acting Comptroller of the Currency. The anticipated departures of Chopra and Hsu, combined with the fact that current FDIC Chairman Martin Gruenberg has already announced his retirement effective Jan. 19, 2025, means new leadership for the CFPB, OCC and FDIC is a given. Since Gruenberg, Chopra and Hsu all sit on the five-member FDIC Board, this also assures a shift of political control for the FDIC Board from a 3-to-2 Democratic-appointee majority to a 3-to-2 Republican-appointee majority. Identifying new leaders for federal bank agencies will take time, and the appointments will require confirmation by the U.S. Senate. But once the dust settles, the Trump-led course change for federal bank regulators should be a game-changer for our industry. The election of President Trump will also bring changes to the makeup of the seven-member Federal Reserve Board, but it might take time for a shake-up at the Fed to occur. While historically there have often been Fed Board resignations coupled with a change at the White House, Federal Reserve Board Chairman Jerome Powell has stated publicly that he doesn’t intend to vacate his post atop the Fed Board. Powell’s current term as Fed Chair doesn’t expire until May 2026 and his current 14-year term on the Board doesn’t expire until January 2028. You’ll find the leadership and service terms for current fed governors on the next page, along with the breakdown of leadership at all of the prudential bank regulators. The expected course change for federal bank regulatory agencies does open the door for reconsideration, review and even repeal of various bank regulations that have been promulgated during the past four years under President Biden’s administration. The sidebar highlights a number of proposed and recently Proposed banking rules that could be withdrawn, delayed or amended: • Regulation II (debit card interchange) (Fed) • Overdraft Restrictions (CFPB) • Mortgage Servicing (CFPB) • Board Governance (FDIC) • Brokered Deposits (FDIC) Recent Final Banking Rules that could be revisited through the rulemaking process: • Community Reinvestment Act (Fed, FDIC, OCC) • 1071 Small Business Reporting (CFPB) • Credit Card Late Fees (CFPB) • 1033 Rule — Open Banking (CFPB) • Bank Merger Guidelines (FDIC and OCC) adopted rules and regulations that could get a second look or a rewrite in the months ahead. 6
Federal Bank Regulatory Boards and Leadership Breakdown Federal Reserve Chair Jerome H. Powell Term ends January 31, 2028 Chair until May 2026 Vice Chair Philip N. Jefferson Term ends January 31, 2036 Vice Chair until September 2027 Vice Chair for Supervision Michael S. Barr Term ends January 31, 2032 Vice Chair until July 2026 Governor Michelle Bowman Term ends January 31, 2034 Governor Lisa Cook Term ends January 31, 2038 Governor Adriana D. Kugler Term ends January 31, 2026 Governor Christopher J. Waller Term ends January 31, 2030 FDIC Board Chair Martin Gruenberg Resigning effective January 19, 2025 Vice Chair Travis Hill Term ends January 5, 2029 Vice Chair until January 2028 Director Jonathan McKernan Term ends January 5, 2029 Director Michael Hsu Acting Comptroller of the Currency Director Rohit Chopra Director of the Consumer Financial Protection Bureau (CFPB) 7
Kansas Legislature Expands Republican Supermajority in Kansas House and Senate MESSAGE FROM SVP OF GOVERNMENT RELATIONS ALEX OREL With time to review the election results of Kansas, little has changed from the state-level projections on Nov. 5. Kansas had a strong turnout, though it fell short of record-breaking numbers. Johnson County led with over 325,000 votes, followed by Sedgwick County with 200,000. Together, these counties accounted for more than 40% of the statewide vote. Republicans will retain their supermajority in both the state House and Senate, expanding their lead with three additional seats in the House and two in the Senate. The Kansas Senate will have a four-seat supermajority advantage (31 Republicans to 9 Democrats), and the Kansas House will have a similar advantage (88 Republicans to 37 Democrats). These supermajorities will be pivotal as the legislature prepares for the final two years of Democratic Governor Laura Kelly’s second term. With this advantage, legislative leaders are likely to push for more aggressive tax and regulatory reforms, including the potential for more constitutional amendments, knowing they have the buffer to override potential vetoes. This outcome may also pave the way for more policy discussions on issues like abortion, Second Amendment rights and other social topics. Conversely, it strengthens opposition to proposals like Medicaid expansion and medical marijuana. Some takeaways from Nov. 5: Trump’s presence on the ballot (for the third consecutive presidential election) drove turnout, even as Johnson County voted against him, 53% to 45%. U.S. Representative Sharice Davids (KS-3) performed well, winning by 14 points against Dr. Prasanth Reddy. However, down-ballot Democrats generally underperformed by 3-4%, and two races remain close but are unlikely to change outcomes. Interestingly, some voters supported Kamala Harris, but, Republican state candidates or only voted in the presidential race. Overall, Democratic voter turnout was lower than in 2020. State-level votes cast by party over the last three presidential cycles: • 2016: Republicans: 671,000; Democrats: 427,000 • 2020: Republicans: 771,000 (+100,000); Democrats: 570,000 (+143,000) • 2024: Republicans: 735,000 (-36,000); Democrats: 523,000 (-47,000) In 2020, both parties saw turnout growth, with Democrats nearly doubling the growth rate of Republicans, likely influenced by Governor Laura Kelly’s 2018 win and support for mail-in voting during COVID-19. However, Democrats saw a decline in 2024, particularly in counties like Johnson, Wyandotte and Shawnee — a factor likely contributing to the stability of the Republican supermajority. Kansas legislative leadership elections took place on Monday, Dec. 2, at the state capitol, where newly-elected members chose House and Senate leaders who will shape the legislative agenda. 8
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Strategic Reset for KBA’s Vision, Mission and Top Initiatives With input from bank CEOs from across Kansas, KBA’s Board of Directors worked arm-in-arm this fall with the KBA staff team to reaffirm the vision, mission and top strategic initiatives that will guide our association for the next three years. KBA’s triannual strategic planning process was guided by Dr. Sean Payant, EVP & Chief Strategy Officer with Haberfeld, who is no stranger to Kansas bankers as the one-time Executive Director of the Schools of Banking. A summary of this strategic work product is highlighted on the next page, and statements from KBA Chairman Gene Dikeman and KBA President & CEO Doug Wareham are featured below. “I am proud of the results of the 2022–2024 strategic plan, which was well executed by the strong leadership of Kansas Bankers and the KBA’s highly skilled and hardworking staff. This has led our association to be financially strong, capable of expanding services for bankers, and standing our ground for community banking, helping to protect the communities we serve. The next three-year strategic plan will be executed from a stronger financial position with an expanded KBA team of industry leaders, a staff with a clear vision of how to support our member banks, and a reputation that has earned the respect of the industry. KBA President & Chief Executive Officer Doug Wareham and the entire team have embraced this strategic plan, and our whole board will support it and do its part to ensure the plan delivers the expected benefits to our members.” — Gene Dikeman, KBA Board Chairman “I’ve learned a great deal about the recipe for success for a trade association during the past 20 years. I’ve had the honor of serving as a member of the KBA staff team, but the two most important ingredients remain the same: banker input and strategic action. I’m confident this strategic plan will serve as a guiding force for our staff team as we work to advance KBA policy initiatives and strengthen the services and support we provide to our member banks. Thank you to the bank CEOs who provided their insights on the challenges and opportunities we will collectively face as an industry moving forward, and special thanks to KBA’s Board of Directors for investing their time and energy in this vitally important process.” — Doug Wareham, KBA President & CEO 10
KBA Strategic Plan 2025-2027 Communities need banks. Banks need community. MISSION STATEMENT: The Kansas Bankers Association will continue to be the leading advocate for a resilient, innovative, and community-focused banking industry that drives economic growth and financial stability across the state. VISION STATEMENT: The Kansas Bankers Association strengthens and supports the Kansas banking industry by advocating for sound financial policies, promoting innovation, and fostering economic growth across the state to ensure a vibrant financial future for all Kansans. www.ksbankers.com Goal #2: Increase the KBA’s long-term financial stability. • Implement growth strategies for KBA subsidiaries, programs and events. • Evaluate and strengthen KBA strategic partnerships. • Strengthen the role of the Kansas Bankers Educational Foundation (KBEF). Goal #3: Strengthen KBA’s commitment to legislative and regulatory advocacy. • Advocate for a business and regulatory environment that sustains the competitiveness and profitability of Kansas banks. • Develop an advocacy tool kit to increase regulatory and legislative engagement from Kansas bankers. • Grow the positive impact of BankPAC and its capacity to elect pro-banking candidates. • Enhance communication and interaction with state and federal bank regulatory agencies. Goal #1: Bolster KBA employee development and retention. • Document and maintain short and long-term succession plans that meet association needs. • Evaluate and implement strategies to strengthen ongoing staff development. • Implement IT and HR solutions to accommodate a growing KBA staff team. Goal #1: Foster membership growth and value. • Implement a membership recruitment and retention campaign targeting out of state banks with a presence in Kansas. • Reevaluate KBA’s member outreach and business development efforts. • Ensure representation from banks of all sizes on the KBA’s Board of Directors, Division of Boards, and/or Committees.
2024 KBA Board of Directors, Federal Affairs Committee and Bank Leaders of Kansas (BLOK) Class March on Washington, D.C. The KBA Board of Directors, members of the KBA Federal Affairs Committee and the 2024 KBA Bank Leaders of Kansas (BLOK) spent several days last week in the nation’s capital to lobby Kansas’ members of Congress and to visit with Federal banking regulators about issues of importance to the banking industry. The BLOK class started their visit with a guided night tour of Washington, D.C.’s memorials and monuments on Sunday evening, Sept. 15. Morning sessions began on Monday, Sept. 16, with an ABA 101 at the American Bankers Association’s new office and a panel with two of Kansas’ Congressional Chiefs of Staff. On Tuesday, Sept. 17, the entire group resumed meetings at the ABA office, having a dialogue with the FDIC, the OCC and the CFPB on regulatory priorities, including Section 1071 compliance, CRA modernization, credit card late fees, overdraft and NSF fees and modernizing deposit insurance. Bankers also heard a Farm Bill briefing from ABA staff and learned more about the new tax plan that is being drafted for whoever is the next president. On Wednesday, Sept. 18, a group of almost 60 bankers visited Capitol Hill to talk about the ACRE Act, the Farm Bill, the Credit Card Competition Act, the potential repeal of Section 1071 Small Business Reporting, and prohibiting selling mortgage trigger leads, among other issues. The trip concluded with an evening reception at the ABA Rooftop open to all Kansas Congressional Delegation members and their staff. The following are highlights from the trip. U.S. Senator Jerry Moran Kansas bankers met with Senator Jerry Moran in the Senate Appropriations Committee Room to express their thanks to the senator for his continued support of ACRE! They also discussed his efforts to repeal overreaching CFPB regulations, and his continued work on the development of a Farm Bill that addresses the financial conditions in the agricultural sector. 12
U.S. Senator Roger Marshall Senator Roger Marshall’s banking liaison, Bill Birsic, and Legislative Director Taylor LaJoie met with the group to discuss issues, including Farm Bill priorities and ag conditions in the state. Kansas bankers thanked him for his continued support of ACRE and encouraged him to co-sponsor a bill to prohibit selling mortgage trigger leads and a bill to reduce the impact of the CFPB’s 1071 Small Business reporting rule. U.S. Representative Tracey Mann Kansas bankers met with U.S. Representative Tracey Mann and thanked him for his continued support of our many priority issues such as the ACRE Act, prohibit selling mortgage trigger leads, and promoting a study on Reg II’s cap on debit card interchange fees. Also discussed were the Farm Bill, ag conditions in the state, and overreaching CFPB regulations. U.S. Representative Jake LaTurner Kansas bankers had the opportunity to meet with Congressman Jake LaTurner. As Congressman LaTurner prepares to retire at the end of this year, we would like to thank him and his family for their dedicated years of service. Beginning with his tenure in the Kansas Senate and continuing through his time in the U.S. House, Jake has consistently advocated for individual Kansans and the Kansas banking industry. His unwavering support will be missed, and we wish him all the best in his future endeavors. 13
U.S. Representative Ron Estes Representative Ron Estes met with Kansas banker constituents from the 4th Congressional District. With his role on the Ways and Means Committee, he was able to give a first-hand update on the tax discussion happening in D.C. Kansas bankers also thanked Estes for his continued support of ACRE and discussed overreaching CFPB regulations, such as the 1071 Small Business Loan Reporting rule and the UDAAP rule as applied by the CFPB, and the need to prohibit selling mortgage trigger leads. U.S. Representative Sharice Davids Kansas bankers from the 3rd Congressional District met with Representative Sharice Davids to discuss some of the KBA’s legislative priorities. With her role on the Agriculture Committee, the group discussed the Farm Bill, Kansas ag conditions and encouraged her to support the ACRE act. We also thanked her for continued support of the SAFE Banking Act. Briefing at ABA’s Headquarters The KBA Board of Directors, Federal Affairs Committee, and 2024 BLOK Class began their Monday meetings in Washington, D.C., with a meeting with the American Bankers Association Congressional Relations team. This meeting was focused on discussing legislative and regulatory priorities within the banking industry. The group’s discussions helped prepare them for meetings on Capitol Hill and with bank regulators. This collaborative effort demonstrates the commitment of these key stakeholders to advocating for the interests of the banking industry and ensuring that their voices are heard in the policymaking process. 14
ABA EVP — Congressional Relations Kirsten Sutton Kirsten Sutton (left), EVP of Congressional Relations at the American Bankers Association, participated in a briefing session with the group before our regulatory and legislative visits. During the session, Sutton discussed the industry’s priorities and provided guidance on advocating directly and effectively telling their story to policymakers in Washington, D.C. ABA Tax Policy ABA tax policy experts gave the KBA an update on tax cuts and increases being discussed on the hill. With 2024 being an election year, taxes are a hot topic, and there will be a new tax plan for the next president. We must continue to remind our legislators that a tax increase on banks is a tax increase on our customers. ABA Credit Unions With tax policy up for discussion, the ABA and KBA are asking for the Financial Services Committee to hold a hearing to review the credit union federal tax exemption, and the fact that many large credit unions have exceeded their initial mission of serving disadvantaged communities. ABA Credit Card Policy Council ABA updated the group on debit and credit card issues, including ongoing opposition of the Credit Card Competition Act and new Reg II proposed caps on interchange fees. FDIC Board Vice Chairman Travis Hill Travis Hill, Vice Chairman of the Federal Deposit Insurance Board of Directors met with the KBA at the FDIC headquarters to discuss various topics, including brokered deposits, Basel III and modernizing the FDIC deposit insurance fund. During the meeting, Vice Chairman Hill provided valuable insights into the composition of the board and the length of terms and shared details about his career path that led to the FDIC. 15
Consumer Financial Protection Bureau (CFPB) The KBA met with representatives from the Consumer Financial Protection Bureau (CFPB) to discuss various topics, including 1071, small business lending reporting, credit card late fees, and overdraft and NSF fees. Kansas bankers emphasized the negative effects these regulations can have on our customers and the communities we serve. Congressional Chiefs of Staff Panel The 2024 BLOK Class was joined by U.S. Senator Moran’s Chief of Staff, James Kelly, and Congressman Jake LaTurner’s Deputy Chief of Staff, Jake Middlebrooks, for a behind-the-scenes look at the life of a Chief of Staff on Capitol Hill. The panel, moderated by KBA’s President & CEO Doug Wareham and sponsored by FHLBank Topeka’s Jeff Steiner, discussed industry engagement with elected officials, balancing campaign and official duties, and Congress’ priorities for the year. 2024 Bank Leaders of Kansas Class The 2024 Bank Leaders of Kansas class gathered at the FDIC Headquarters in Washington, D.C. 16
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2024 YBOK Annual Conference recap Thank you to the 100+ Kansas bankers who attended the 2024 Young Bank Officers of Kansas Annual Conference! There was a great crowd in Hays at the Robbins Center at Fort Hays State University. We believe attendees came away with some great tools and connections to take back to their respective institutions to better the communities and customers they serve! The following is a brief recap of the conference, including the new YBOK Board of Directors. Thank you to our very generous sponsors who helped make this conference happen! We hope to see you all again at next year’s annual conference in Lawrence! 18
KBA Board Vice Chairman Kendal Kay, Stockgrowers State Bank, Ashland, and YBOK President Nick Wolfe, United Bank & Trust, Marysville, kick off the 2024 conference Thank you to KBA Board Vice Chairman Kendal Kay and YBOK President Nick Wolfe for opening the 2024 YBOK Annual Conference! KBA Board Vice Chairman Kendal Kay thanked the bankers in attendance for their willingness to attend the conference and for committing to grow as a Kansas banker. Kay emphasized that events like these are critical for the development, growth and networking of bankers across the state and challenged the attendees to take what they learned back to their bank and community to get more engaged in pushing the industry forward and thanking their bank for investing in them to attend. 2024-25 YBOK Division Board of Directors • Francis Scheuerman, President, UMB Bank, Kansas City • Rocky Anderson, Vice President, Kaw Valley Bank, Topeka • Beth Masterson, Secretary/Treasurer, Legacy Bank, Wichita • Nick Wolfe, Past President, United Bank & Trust, Marysville • Nick Gideon, Region 1, Silver Lake Bank, Lawrence • Alex Jones, Region 1, Bank of Commerce, Neodesha (nominated for second three-year term) • Greg Thiessen, Region 2, First Bank of Beloit, Beloit • Tom Sheik, Region 2, State Bank of Bern, Bern • Victoria Pruitt, Region 3, First National Bank of Hutchinson, Hutchinson • Brock Stuhlsatz, Region 3, Citizens Bank of Kansas, Derby • Amanda Williams, At-Large Representative, Bankers’ Bank of Kansas, Wichita • Jenell Hulse, At-Large Representative, Bank of the Plains, Salina (nominated for first three-year term) • Jordan Lauer, At-Large Representative, Farmers State Bank, Westmoreland (nominated for second three-year term) • Andrew Holtgraves, Ambassador, Mortgage Investment Services Corp., Shawnee • Tyler Walden, Ambassador, AGH, Wichita • Jason Hatfield, Ambassador, Security 1st Title, Wichita “Leading with Emotional Intelligence: The Heart of Effective Leadership” Dr. Emily Lehning, Roots and Legacies Consulting Dr. Emily Lehning, Roots and Legacies Consulting, was the day’s first speaker, delivering an insightful session on effectively leading with emotional intelligence. Dr. Lehning emphasized to attendees that their ability to connect with colleagues and customers of all ages and backgrounds will be the game changer in the future, professionally and personally. 19
A View from Washington, D.C. U.S. Congressman Tracey Mann In our third session of the conference, we had the privilege of hearing from U.S. Congressman Tracey Mann. His insights from Washington, D.C., provided a valuable perspective on Congress’ current priorities, including the development of a new Farm Bill, his office’s continued opposition to the Consumer Financial Protection Bureau’s proposed 1071 Rule, and his election outlook. We sincerely thank Congressman Mann for taking the time to speak with us and share his expertise and his service to Kansas! (L-R) AGH’s Tyler Walden, Jordan Lauer and Chris Wente (L-R) KBA’s Alex Orel, Dr. Dosse Toulaboe, Dr. Emily Breit, W.R. Robbins and Jason Williby “Training & Retaining the Next Generation” KBA/Fort Hays State University (FHSU) Robbins Banking Institute (RBI) Panel The second session of the conference featured a dynamic panel discussion with W.R. Robbins, Chairman & CEO of Farmers Bank & Trust; Jason Williby, President & CEO of the FHSU Foundation; Dr. Dosse Toulaboe, Chair & Professor of Robbins College of Business & Entrepreneurship; and Dr. Emily Breit, Professor of Finance. The panel focused on strategies for training and retaining the next generation of bankers in Kansas. W.R. Robbins shared his vision and inspiration for establishing RBI and how it would address the needs of the banking industry and prepare future professionals. Dr. Toulaboe and Dr. Breit talked about the impact RBI is already having on the industry and the option available for current Kansas bankers to continue their education and training online and at a reasonable price. Jason Williby talked about the partnerships RBI has created for the University and how it has attracted the industry to support the University’s initiatives to train the next generation. Special thanks to Alex Orel, SVP of Government Relations, for moderating the session. President/CEO Panel During the President/CEO Panel, attendees heard from Chris Wente, President & CEO of Golden Belt Bank, and Jordan Lauer, President & CEO of Farmers State Bank and current YBOK Board Member. The panelists shared their insights on industry trends, what they are doing at their institution to combat fraud, how they got to their current positions within the bank, and valuable advice from their mentors along the way that attendees could also learn from. A special thank you to YBOK Board Ambassador Tyler Walden with Allen Gibbs & Houlik, CPA, and Advisors who moderated the panel. 20
(L-R) KBA’s Rayanna Breshears, Brooke Renshaw, Nick Wolfe and Francis Scheuerman Caption: (L-R) Francis Scheuerman, Nick Wolfe Corporate Citizenship Recipient Kansas Bankers Educational Foundation/Robbins Banking Institute Every year, the YBOK Board and conference attendees select a Corporate Citizenship Recipient to receive $1,500 to help advance their organization’s mission. This year, through funds raised from conference attendees and the division, the Kansas Bankers Educational Foundation/Robbins Banking Institute partnership was selected to help fund a $500 scholarship for the next three semesters to the FHSU student who is working for the partnership as a liaison between the industry/KBA and university students. This student will help recruit current students to the banking program and be a representative of the industry/KBA at school-wide events. This year’s liaison is Brooke Renshaw, who is currently a senior at FHSU, double majoring in accounting and finance. 2025 YBOK President Announced Francis Scheuerman, UMB Bank Thank you to 2024 YBOK President Nick Wolfe, United Bank and Trust in Marysville, for your dedication and service to the Division. The Division is excited to announce Francis Scheuerman, UMB Bank in Kansas City, as the new 2025 YBOK President! In this role, Francis will not only lead the YBOK Division but will also be YBOK’s representative on the KBA Board of Directors for the next year, where he will be able to share valuable insight with the board on the developments and priorities of young bankers across the state. Economic Update Brent Bundick, Vice President & Senior Advisor, Kansas City Federal Reserve Bank Brent Bundick, Vice President & Senior Advisor at the Kansas City Federal Reserve Bank, provided an insightful economic update on inflation, the labor market, and the Fed’s recent action to lower interest rates. Brent talked about the likelihood of the continued rate decreases over the next year, the current strength of the industry in the Fed’s district, and how the ag economy is responding to continued low commodity prices and high input costs. Thank you, Brent, for your expertise! 21
KBA’s Rayanna Breshears (L) and Sam Jackson (R), First State Bank, networked with current Robbins Banking students during the conference. Students were encouraged to attend the conference as an opportunity to meet bankers and learn about the banking industry. (L-R) Fred Elmer, Ashton Bornholdt, Victoria Pruitt, First National Bank of Hutchinson. The Annual YBOK Golf Tournament took place on Friday at Smoky Hills Country Club following the conference. KBA and Government Relations Update Alex Orel, SVP of Government Relations KBA’s SVP of Government Relations gave an association and government relations update to attendees. Alex Orel emphasized that the association is firing on all cylinders to provide the best possible service to all Kansas bankers. Orel mentioned that the KBA is in the middle of developing a new three-year strategic plan that will give the strategic direction to the KBA for the next couple of years. Orel also talked about the priorities of the government relations team, including the push to modernize the state’s investment philosophy and drive more state investment back to Kansas banks, which will be KBA’s No. 1 priority in next year’s state legislative session. “Creating Team Engagement and Connection: Transforming Organizational Culture with the L.E.A.D. Operating System” Neil Stevens, President & CEO, Oconee State Bank We wrapped up our annual YBOK conference with an engaging session with Neil Stevens, President and CEO of Oconee State Bank, on fostering team engagement, connections and a vibrant work culture. A heartfelt thank you to all our young bankers who attended, and a special shoutout to Fort Hays State University Foundation for hosting us at the Robbins Center! Mark your calendars for next year, Oct. 8-10 in Lawrence! As a young banker, getting involved in the political process is critical, and we need your voice to help us keep fighting the fight in Topeka and Washington, D.C.! As a YBOKer, you can attend the Annual Government Relations Conference in Topeka on Feb. 5 at a discounted rate. Please go ahead and mark your calendars; we will see you in Topeka! 22
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BRIEFLY IN KANSAS BANKING PBT Bancshares Inc. to Acquire KANZA Bank PBT Bancshares Inc., the holding company of Peoples Bank and Trust Company, and KANZA Financial Corporation, the holding company of KANZA Bank, have jointly announced the signing of a stock purchase agreement whereby PBT Bancshares Inc. will acquire KANZA Bank. Following the closing of the transaction, KANZA Bank will be merged with and into Peoples Bank and Trust Company, with Peoples Bank and Trust Company as the surviving entity. The transaction has been approved by the board of directors of each company and is expected to close in the second quarter of 2025, subject to customary closing conditions, including shareholder and regulatory approvals. Lifetime Achievement Award Recipient Natalie G. Haag The Lifetime Achievement Award is bestowed on graduates whose careers have been highly distinguished, and whose achievements and contributions are widely recognized as significant and outstanding in their field of endeavor, whether it be in the practice of law, the judiciary, business, public service, education or otherwise. Natalie G. Haag is currently General Counsel and Executive Vice President of Capitol Federal Savings Bank in Topeka. Before tackling the banking industry, Haag’s career ran the gamut of legislative, governmental affairs, corporate, constitutional, civil litigation and criminal prosecution with a nine-year stint at Security Benefit Corporation, seven years in government for the state of Kansas and 10 years practicing law in Topeka, Wichita and Cowley counties. Her lifetime of service has garnered her the Jennie Mitchell Kellogg Attorney Achievement Award in 2021, Chief Justice Kay McFarland Attorney of Achievement Award in 2019, Henry A. Bubb Distinguished Service Award in 2019, Washburn Law Alumni Fellow Award in 2016, YWCA Woman of Excellence Award in 2016, the Topeka Swim Association’s Dedicated Service Award in 2015, the Topeka Bar Association Newton Vickers Professionalism Award in 2013, the Kansas Bar Association Outstanding Service Award in 2008 and the Security Benefit Living the Values Community Service Award in 2007. Haag is deeply involved with the Kansas Bar Association, Kansas Women’s Attorneys Association and Women’s Attorneys Association of Topeka, and is a Kansas delegate to the American Bar Association. She has been a member of the board of governors since 2019 and is a Trustee of the Washburn University Alumni Association and Foundation. Ausmus Honored by American Bankers Association with Emerging Leader Award Rachael Ausmus, Director of Private Banking at Country Club Bank, was honored with the 2024 ABA Emerging Leader Award by the American Bankers Association at its Annual Convention in New York. This award recognizes rising bank leaders committed to excellence in their industry and local communities. Joe Close, President of Country Club Bank, praised Rachael’s dedication, leadership and mentoring, highlighting her role as a commercial lender serving various sectors and her commitment to teamwork and innovation. Rachael began her tenure at Country Club Bank in 2018 as Vice President of Commercial Lending, specializing in relationships with nonprofits and professional services. Her career, which began in 2006, has included roles at Fidelity Bank, Alterra Bank and American Heritage National Bank. She also serves on the Missouri Banker’s Association Next Gen in Banking board and volunteers with local organizations, demonstrating her dedication both professionally and in her community. 24
Paul Roberts, Bank of Denton, Celebrates 50 Years in Banking Congratulations to Paul W. Roberts for achieving 50 years of employment at his family-owned bank, The Bank of Denton, in Denton, Kansas. He is a third-generation banker of the Roberts family that has owned the bank for over 100 years. Paul graduated from Midway High School in Denton in 1966. He then attended and graduated from the University of Kansas in 1970 with a degree in business. For the next four years, Paul served in the Navy and returned home after his service to begin working alongside his father, Thomas J. Roberts, as a teller at the bank. Through the years, Paul worked his way up to Cashier and Director and became President in 2013 upon his father’s stepping down from the role. Paul married the local school’s home ec teacher, June Stewart, in 1976. Paul and June raised three boys: David (Beth) Roberts of Uruguay, Douglas (Emily) Roberts of Knoxville, Tennessee, and Darren Roberts of Pittsburg, Kansas. They have six grandchildren. Paul enjoys photography, archaeological digs and spending time with his grandchildren. KBA 1024 An independent licensee of the Blue Cross Blue Shield Association. Bring well-being to your workplace Benefits include: • Improved productivity • Lower health care costs • Less turnover • Enhanced recruitment Our wellness programs help your employees live healthy. Learn more: bcbsks.com/behealthy Help your employees live healthy. 25
On Feb. 14, 1954, Dale married Fern C. Huggins. Together, they raised three children: Lonnie Dale, Latricia Bethine and Shayla Daline. In 1975, Dale and Fern purchased the Farmers State Bank in Blue Mound. They later divorced. On Easter Sunday, when Dale was 29 years old, he accepted Jesus as his Lord and Savior. Dale had been conflicted for some time, going so far as to make sure he was behind the barn when he knew a certain neighbor would be driving by on his way to church each Sunday. On Aug. 6, 1982, Dale married Janice Brock Johanning, adding another daughter, Elaine (Johanning) Jaeger, and a son, Fred Johanning, to the family. They spent most of their married life on a farm northeast of Blue Mound. Dale had a lifelong love of livestock, raising cattle, elk and buffalo over the years. Farmers State Bank continued to grow under Dale’s leadership, and branches were added in Pleasanton in 1989 and Garnett in 1990. He often said that his greatest joy in banking was seeing his customers succeed using funds borrowed from the bank. He served as Chairman of the Board of the bank until his death. He loved his kids and grandkids and was very proud of each one of them. As great-grandkids joined the family, they brought him much joy as well. He loved to work and said that work was his “hobby,” but as he got older, time with his kids and grandkids became more and more precious. Dale was preceded in death by his parents; siblings Virgie, Wilbur, Maxine and his baby sister, Faye; and a granddaughter, Nicole Jaeger. Dale is survived by his wife of 42 years, Janice; son, Lonnie (Jo Helen); daughter, Trish Gaynor (Ron); daughter, Shayla Sprague (Jody); daughter, Elaine Jaeger (Erik); and son, Fred Johanning. Also surviving are 10 grandchildren, 13 great-grandchildren and his brothers, Ernest and Clyde. IN MEMORY Leonard Dale Sprague Leonard Dale Sprague passed away on Sunday, Aug. 18, 2024, at Parkview Heights Care Home in Garnett, Kansas. He was born on March 17, 1934, at his family home near Lone Elm, Kansas. Old Doc Kennedy, from Blue Mound, came to the farm west of Kincaid to deliver the sixth of seven children born to Arthur G. and Ester Jean (Roberts) Sprague. The doctor had stopped on his way to the farm to treat a patient with scarlet fever and administered his first sulfa drugs to that patient. Unfortunately, he infected Dale with scarlet fever; however, Dale went on to enjoy 90 years of good health. 26
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2024 KBA Trust Conference The KBA Trust Division hosted its annual Trust Conference on Oct. 24-25 at the Wichita Marriott Hotel. This conference provides attendees with valuable, up-to-date insights on the latest trends and advancements in trust and estate management, equipping them with practical tools and knowledge. 2024-25 Trust Division Board of Directors • Mark Kennedy, President, Citizens State Bank & Trust Co., Ellsworth • Tasha Bucher, President-Elect, The Trust Company of Kansas, Arkansas City • Amy Barber, Vice-President, The Trust Company of Kansas, Arkansas City • Lori Bone, Immediate Past President & MOKAN Treasurer, Fidelity State Bank & Trust Co., Dodge City • Chris English, Past President, The Trust Company of Kansas, Lawrence • Sherri Gormley, Director, First National Bank of Hutchinson, Hutchinson • Grant Paitz, Director, INTRUST Bank, N.A., Wichita • Chris Kuckelman, Director, Midwest Trust Company, Overland Park • Debbie Newman, Director, Southwest National Bank, Wichita • Jeff Wacker, Director, Advantage Trust Company, Salina • Joe Karnes, Legislative Representative, Central National Bank, Lawrence “On the Economic, Business, and Political Climate” Dr. Roger Tutterow, Kennesaw State University In this session, Dr. Roger Tutterow provided a timely overview of activity in the national and regional economies, including a discussion of the role of supply chain disruptions on the construction and retail sectors, the long-term effect of COVID-19 on labor markets and real estate, the connection between fiscal stimulus, monetary policy and the recent surge in inflation, policy responses by the Federal Reserve, and effects of changes in the competitive landscape on performance in the public and private sectors. 28
“Culture is Key” Jeff Kropschot, Kropschot Consulting Partners LLC During this session, attendees explored critical elements of a strong compliance culture and the compliance, operational, reputational and other benefits enjoyed by organizations that maintain a strong compliance culture. Jeff also shared illustrative examples of companies and individuals who have embraced and not embraced these essential principles. “Make Politics Boring Again” Linda Duessel, Federated Hermes This presentation explored the setup for the presidential election, where opinions about Biden and Harris are set in stone. Independent voters and a handful of swing states will likely determine the outcome. Still, the historical precedent is clear that the chances rest on the state of the economy and voter’s pocketbooks. Congressional races are so boring, but most important for the country’s future path. Politics may never be boring again. “Conflicted” Jeff Kropschot, Kropschot Consulting Partners LLC In this session, attendees explored examples of traditional and emerging conflicts of interest and self-dealing scenarios that arise in delivering fiduciary services. Attendees also discussed the risks and liabilities related to these scenarios and permissive exceptions to the duty of loyalty that may allow a fiduciary to engage in conflict of interest and self-dealing activities legally. Finally, attendees discussed actual conflicts of interest and examples of self-dealing, as seen through the eyes of a former Examiner and Chief Compliance Officer. “Fixed Income for All Landing Scenarios in 2024” Austin Stockfish, First Trust Advisors Two years had passed since the Fed’s first interest rate hike of this cycle, and roughly eight months had passed since the Fed’s last rate hike. While interest rates indeed remained higher for longer, interest rate volatility declined as the Fed shifted from an “increasing rate regime” to a “peak rate regime.” Austin sifted through the fixed-income markets, highlighting risks and opportunities at the time. “The Times They Are Changin’” Noah Helm, First Trust Advisors Growth crushed value and technology outperformed everything. COVID-19 and government intervention had huge implications for markets. The question became: Where would we go from there? Investors who stayed focused on fundamentals minimized risk and avoided emotional decisions. This mattered more than ever. Noah Helm shared First Trust’s view on where markets might head next. “Creating Team Engagement and Connection: Transforming Organizational Culture with the L.E.A.D. Operating System” Neil Stevens, Oconee State Bank, and Caleb Stevens, SouthState Bank With employee engagement at critical lows, as highlighted by recent Gallup findings, the need for effective, actionable solutions has never been greater. In this talk, Neil and Caleb Stevens introduced the L.E.A.D. Operating System, which is a groundbreaking approach designed to revolutionize workplace culture. They provided proven strategies to dramatically reduce turnover, increase retention, enhance sales and boost profitability. 29
“Top Retirement Plan Issues for 2024 for the Baby Boomer Generation and Eight Retirement Distribution Strategies that Will Make Their Money Last” Larry Divers, Canon Financial The presentation addressed specific ways for individuals and households to create a lifetime income stream that neither the individual nor their spouse could outlive. It also covered methods for distributing remaining assets to beneficiaries in the most tax-sensitive manner. “Retirement Update: SECURE 2.0 and Required Minimum Distribution Rates” Larry Divers, Canon Financial The presentation included a discussion on Individual Retirement Accounts, including Traditional, SEP, and SIMPLE IRAs; 401(k), 403(b) and 457(b) Plans; required minimum distribution aggregation rules for each type of account; and strategies for lowering required minimum distributions. Topics covered included qualified distributions, Roth conversions, qualified charitable distributions and net unrealized appreciation on company stock. Pictured is Mark Kennedy, incoming President of the KBA Trust Division at Citizens State Bank & Trust Co. in Ellsworth, thanking Lori Bone, of Fidelity State Bank & Trust Co. in Dodge City, for serving as President of the board and presented her with a gift. Thank you, Lori, for your leadership! More opt ions for your customers, without more risk to your bank. Why Partner With Us? Ag Resource Management offers an innovative solution to lenders by mitigating your risks with watch list and non-performing loans. We can help you take these assets off of your balance sheet and increase your lending ability. We achieve this with a blend of proprietary technology and data validation in valuing a growing crop, monitoring that crop, and keeping track of collateral as it approaches maturity. Loans are processed swiftly and we communicate with you throughout the process. We’re just a call away. Get started today with our teams in Kansas. Ryan Schreibvogel 1805 East Mary Street, Suite B Garden City, KS 67846 (620) 371-4858 RSchreibvogel@armlend.com Wade Simpson 7505 NW Tiffany Springs Pkwy. Suite 220 Kansas City, MO 64153 (816) 226-4574 WSimpson@armlend.com ARM is an equal opportunity provider. DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. the-kansas-banker.thenewslinkgroup.org 30
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