2026 ISSUE 1 MIBA Mid‑Winter Seminar
BETTERTOOLS SERVICE BANKING Call Chris or Andrew today to find out how much you could save. Chris Bryan 816-500-6253 Andrew Lee 314-630-8554 Why do community banks make the switch to MIB? Innovation & Technology: We continually enhance our services through a forwardthinking tech culture and strategic investments. User-Friendly Systems: Intuitive systems and easy-to-use services save customers time, effort, and stress. Superior Service: We go above and beyond—our experts will even visit onsite during service transitions. Operational Efficiency: Streamlined operations allow us to offer high-value services at highly competitive prices. mibanc.com MEMBER FDIC Lending Services Operational Services Audit Services*
INSIDE THIS ISSUE PO Box 1765 Jefferson City, MO 65102 (573) 636-2751 | miba.net Editor: MATTHEW S. RUGE Executive Director ©2026 The Missouri Independent Bankers Association (MIBA) | Memberlink Solutions DBA The newsLINK Group LLC. All rights reserved. The Show-Me Banker is published six times per year by The newsLINK Group LLC for MIBA 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 MIBA, 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 Show-Me Banker is a collective work, and as such, some articles are submitted by authors who are independent of MIBA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. Published for the Missouri Independent Bankers Association 4 PRESIDENT’S MESSAGE Setting the Course 5 FROM THE TOP Setting Our Priorities for 2026 6 FLOURISH Let’s Continue the Course in the New Year 8 BACKGROUND ON Ben Polen CEO, Carroll County Trust Company 10 MEET YOUR MISSOURI BANKER Julie Parrish Vice President, Information Technology & Audit Officer, Exchange Bank of Missouri 12 IT as an Ecosystem What It Takes To Build an IT Solution That Drives Business Growth 13 Welcome New Endorsed Vendor 14 MIBA Winter Board Meeting December 8-9, 2025 16 Off and Running Community Banks Set for a Robust 2026 17 MIBA Lobbying Report 18 Strategic Approaches to Executive Compensation and BOLI 19 SAVE THE DATE MIBA's 49th Annual Convention & Expo 20 MIBA Mid‑Winter Seminar January 10-17, 2026, Ixtapa 22 News From You 23 Welcome New Associate Member 24 2025 PAC Honor Roll 25 MIBA Community Bankers for Compliance Program 26 Upcoming Events 2026 27 MIBA’s Endorsed Vendors Are Ready to Help You Go Further 28 MIBA Associate Members 30 Upcoming Webinar Schedule 32 REGISTRATION IS OPEN 2026 Directors & Officers Seminar April 28-29, 2026 10 4 16 20 The Show-Me Banker Magazine | 3
PRESIDENT’S MESSAGE Setting the Course Strategic planning can mean different things from one bank to another, and its complexity often varies based on size and goals. Some banks lean more toward short-term operational planning and may not look out five years. Others incorporate operational planning as part of a broader strategic process. In any case, planning is essential to understanding where the bank is today, where leadership and shareholders envision the bank in five years, how those goals are communicated across departments, and how the organization will get there. A strategic plan should establish a clear direction with input from all levels of the bank. The process should leverage appropriate resources throughout the organization to drive progress toward the bank’s long-term vision and goals. In my opinion, a strategic plan should look out over a one- to five-year period. While years four and five can be more uncertain due to the many challenges a bank may face, they remain tied to the direction established in the plan. The near-term years, meanwhile, serve as the roadmap for reaching the five-year objective. To begin the strategic planning process, I recommend reviewing the bank’s mission and vision to ensure they still align with where the organization stands today. All employees should know and understand these statements, as they help define the bank’s values and guiding principles. Open communication around the mission and vision also builds shared ownership across the organization. The next step we use at our bank is a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. This exercise identifies the strengths to leverage, organizational weaknesses to improve, opportunities to pursue and threats to prepare for as the bank charts its long-term direction. After completing these foundational steps, the process of defining strategic goals and how to achieve them becomes clearer. While short-term operational planning may involve numerous actions and objectives, the strategic plan should focus on a smaller number of initiatives that will have the greatest long-term impact on the bank. Once the strategic goals are established, the bank should develop strategies and processes to achieve them, incorporating input from multiple departments. A well-designed strategic plan aligns all levels of the organization and clarifies how each contributes to long-term success. Curt Brumley MIBA President, Community Point Bank After implementation, it is important to assign accountability, track progress, and adjust as conditions change. At our bank, we review the plan’s goals and SWOT analysis around midyear to determine whether any updates or course corrections are needed. Strategic planning requires time, effort and ongoing reassessment. While no one has a crystal ball to predict the future, a thoughtful strategic plan provides the best framework for establishing long-term direction and priorities. From both research and experience, I have found that strategic planning varies widely among organizations. No plan is one-size-fits-all, and the level of detail should reflect your bank’s unique needs and goals. What matters most is not the format of your strategic plan, but the discipline behind it — setting clear direction, engaging the organization and consistently measuring progress. When strategic planning becomes an ongoing leadership practice rather than a periodic exercise, it strengthens decision-making, builds alignment and positions the bank to adapt and succeed in a changing environment. 4 | The Show-Me Banker Magazine
FROM THE TOP Setting Our Priorities for 2026 Jack E. Hopkins Chairman, ICBA T here’s something about the new year that brings with it a clean slate and a fresh start. As we kick off 2026, we have the opportunity to shape where we want to go. For my community bank this year, the strategic focus is on efficiency. Making the Leap It’s one thing to set the objective, and another to implement it. So, we’re evaluating and investing in solutions that start with the back office. For us, it’s a purposeful decision so that we can update our technology before we revamp it for customers. We’ve established a team to assess departmental operations at the bank and determine where we can streamline them. Within that team, we’ve recruited some younger, more digitally native bankers from middle management who are technology-savvy and will be the staff who must navigate these solutions into the future. We’re also exploring areas with higher turnover. Those numbers tell a story that the jobs aren’t as satisfying as they could be. We are using this opportunity to identify how we can make them more engaging and support greater retention in the process. As we move into implementation, we are looking to identify solutions that are specifically geared toward community bank challenges. We’re focusing our search on ICBA ThinkTECH Accelerator alumni, Preferred Service Providers and Corporate Members. We plan to do a deeper dive at ICBA LIVE and leverage past showcases in which we’ve participated, as well as previous LIVEs we’ve attended, to help narrow our shortlist of potential partners. Additional Priorities In addition to efficiencies, we are prioritizing digital assets and stablecoin knowledge-gathering this year. With the way the landscape is heading, we need to keep up to date on policy discussions to make sure we’re not behind the eight ball. We are also taking advantage of ICBA Education to learn about the implications of these developments for the future and how these technologies might be applied to our banks. With these strategic priorities in mind — which I bet are on many of your lists as well — I encourage you to come to ICBA LIVE, taking place March 6-9 in San Diego, to attend the sessions and identify possible partners. Also, join us in D.C. for the ICBA Capital Summit, May 4-7, to ensure your voice is heard on these and other percolating issues. Although we have a blank canvas to shape the year ahead, we are in a time where what you do now will affect your community bank for years to come. Thankfully, we have ICBA as a resource to help us navigate what’s next. My Top 3 (Wishful-thinking) predictions for 2026. Even if I get one out of three, I’ll be elated! 1. Vikings will win the Super Bowl. 2. Twins will win the World Series. 3. Wild will win the Stanley Cup. The Show-Me Banker Magazine | 5
FLOURISH Let’s Continue the Course in the New Year Rebeca Romero Rainey President and CEO, ICBA Each day in community banking seems to dawn with a new issue, but taking a step back, our challenges are all in a day’s work. The common theme among all our battles is that they aren’t new; they are ones we’ve faced for decades, just with new faces. For example, whether we’re talking about credit unions, industrial loan companies (ILCs) or crypto firms, we’re battling against entities trying to call themselves “banks” without a level playing field and the rules to support it. While their models and approaches might look a little different from one another, the core issue remains the same. Our focus, as it always has been, is to address unfair advantages, advocate for the mission of community banking and center on ways we can better support our local communities. How, amid these battles, will we retain capital to serve our local communities? That answer stands at the core of all of our positions. Supporting Your Community Through ICBA’s Core Pillars As the landscape around us changes, so, too, do our opportunities. Knowledge is power, and being armed with the right information gives us the ability to address new potential. That’s why ICBA Education offers ways to support you in deepening your understanding of pivotal subjects. With deeper insights into technologies such as digital assets and stablecoins, AI, and more, you can unveil ways to institute proactive strategies at your community bank. Of course, innovation also plays a key role in supporting our communities, so ICBA Innovation continues to seek out providers that build solutions for community banks. We work to introduce options that help you to achieve your goals in line with what makes sense for you and your market. On the advocacy front, we continue to ensure clear pathways for community banks to engage with rulemakers. We will drive conversations with Congress, the administration and regulators as we continue to protect the distinction between community banks and other entities. One Topic at a Time In some ways, it’s reassuring that today’s issues are a varietal of what we have faced for years, but there is no question that the pace of change has accelerated. It is more important than ever to ensure you, your team and your board are actively engaged in these conversations and leveraging the power of the tools ICBA provides. Just as I’m certain that 2026 will introduce new issues, I also know that as a community of community banks, we are prepared to tackle them together, one topic at a time. Where I’ll Be This Month I’ll be spending time with volunteer leaders from the Nominating Committee at an association leadership symposium, alongside our chairman and incoming chairman, as well as attending new officer orientation. What a great way to kick off the year, working with those who do so much for ICBA! 6 | The Show-Me Banker Magazine
MARCH 6-9, 2026 San Diego Convention Center Community. Learning. Innovation. Discover What Makes ICBA LIVE Unforgettable San Diego sets the stage for the largest gathering of community bankers in the world. This is the event where connections are made, ideas are sparked, and strategies are shaped. From powerful keynote speakers and immersive learning labs to high-energy networking events and cutting-edge fintech showcases, ICBA LIVE offers something for every attendee. Register Today At icba.org/live
BACKGROUND ON Ben Polen CEO, Carroll County Trust Company If you ask Ben Polen how long he’s been in community banking, he might pause for a moment, smile and then tell you he’s lost track of the exact number of years. What he won’t hesitate to tell you is why he’s stayed. For Ben, banking has never been about numbers alone. It’s about the people. It’s about the relationships built over decades, watching customers grow from their first small loan into thriving businesses, and seeing employees develop into confident leaders. It’s about showing up, day after day, in a community that feels like home. A Childhood on the Move Ben was born in Topeka, Kansas, but he didn’t stay put for long. His father was a Methodist minister, which meant the family moved about every five years to serve different congregations across eastern Kansas. At the time, moving wasn’t always easy. Leaving friends behind rarely is. But looking back, Ben sees it as a gift. Each move meant meeting new people, learning how to adapt and discovering that relationships don’t have to end just because geography changes. “It felt like a fresh start sometimes,” he recalls. “I ended up with more friends, not fewer.” Ben grew up in Ottawa, Overland Park and eventually Baxter Springs, where he graduated from high school. A Love Story and a Leap of Faith Ben met his wife, Leann, while they were both in college. “Our story sounds like something out of a movie,” Ben said. They met in February, and just a few months later, on Aug. 1, 1987, they were married. What followed was 35 years of marriage filled with family, shared dreams and a true partnership. Ben fondly speaks of Leann with deep gratitude and love, acknowledging both the joy of what they had and the heartbreak of losing her to cancer two years ago. “There’s not a day that goes by that I don’t think about her,” he said. “But I was incredibly blessed. A lot of people don’t get what we had at all, let alone for 35 years.” Together, they built a life rooted in commitment, resilience and faith — values that continue to guide Ben today. Discovering Community Banking After college, with a baby on the way and a job opportunity in front of them, Ben and Leann moved to Hale, Missouri, a town of about 500 people. “The streets weren’t even paved, and at first, it felt very small,” Ben said. But that little town became home for 17 years — and it is where Ben truly fell in love with community banking. The job itself came through a connection with Larry Freeman, then president of Carroll County Trust Company, and a long-time family friend who would eventually become Ben’s mentor. Before ever stepping into banking full-time, Ben sought Larry out to learn what the profession really involved. That early guidance turned into a lasting professional relationship built on trust and mutual respect. Over time, Ben learned that community banking wasn’t just about managing money. It was about being present in people’s lives, financing first homes, first trucks, first businesses and sometimes just offering steady reassurance during uncertain times. 8 | The Show-Me Banker Magazine
Leadership Built on Trust In the mid-2000s, Larry called Ben with a life-changing question: “I’m getting ready to retire. Do you want my job?” Ben said yes — with one condition. The small bank in Hale that he had spent so many years at would need to come with him. Ben worried that tiny banks, standing alone, wouldn’t survive long term. The solution was a merger, and in 2007, Ben moved to Carrollton and joined Carroll County Trust Company. Larry stayed on for a few years, and his leadership style ensured a seamless transition. “He told me, ‘Go make decisions and practice. If you hang yourself, you hang yourself. I’m here if you need me,’” Ben laughed. That trust shaped Ben’s own leadership philosophy: Empower people, let them grow and support them without micromanaging. Growing People, Not Just Banks Ask Ben what he enjoys most about his job, and he won’t mention titles or accomplishments. He’ll talk about his employees. “Watching people grow professionally and personally has been one of the most rewarding parts of my career,” Ben said. One of his proudest examples is Tracey Woodward, now president of the bank. She started as a college intern and teller, later joined Ben at the Hale bank, and eventually followed him to Carrollton. “Watching her grow, watching her succeed — that’s been one of the best parts of my job,” Ben said. “I like to think I played a small part in that.” Ben takes the same pride in watching customers succeed. He remembers a client who started with a modest $2,500 loan and, over the years, built businesses generating over a million dollars in annual revenue. “That first loan can change everything,” Ben said with a smile. To him, those stories are the heart of community banking. Facing Modern Banking Challenges While Ben’s heart is firmly rooted in tradition, his eyes are wide open to the future. Today’s banking challenges look very different from those he faced early in his career. Technology, particularly artificial intelligence and cybersecurity, weighs heavily on his mind. His attention to data protection, ransomware threats and how easily one wrong click can create chaos for banks and customers alike is always top of mind. “Money is data now,” he explained. “Our job is safeguarding people’s information.” “But this is an area where community banks shine. Knowing customers personally, educating them directly, and being available when something goes wrong gives banks like Carroll County Trust Company a meaningful advantage,” Ben said. Service Through MIBA Ben has been a member of the Missouri Independent Bankers Association (MIBA) for most of his banking career. In recent years, with strong leadership in place at his bank, he’s been able to become more involved, serving on committees and the board. He values MIBA’s advocacy, education and scholarship programs, but what stands out most to him are the people. “They’re just good people,” Ben said simply. That sense of shared purpose and community mirrors what he’s spent his entire career building at the local level. Family at the Center Family has always been at the core of Ben’s life. He and Leann raised three sons — Dallas, Spencer and Luke — all of whom live within a few miles of him today. After a few years of “empty nest,” Dallas and his daughter, Savannah, now 13, moved in with Ben and Leann, turning a quiet house into a lively home once again. Ben is learning first-hand the joys and challenges of raising a teenage girl — something he never expected after raising three boys. Add in three more grandchildren — a toddler, a baby, and a newly minted three-year-old — and Ben’s life is full in all the best ways. “I don’t know what I was thinking,” he jokes. “I should’ve skipped parenting and gone straight to being a grandpa.” A Life Well Lived Outside of banking, Ben enjoys restoring classic cars, riding his Harley on sunny days, hunting with dogs and getting lost in a good book. Whether it’s history, action novels or self-improvement, reading has always been his escape. You will often find Ben reading on his well-worn Kindle. When asked for some parting wisdom, Ben turns to one of his favorite figures, Benjamin Franklin. “Well done is better than well said,” he quotes. It’s a fitting reflection of his own life. Ben Polen doesn’t seek attention. He builds quietly, leads steadily and invests deeply — in people, in community and in the belief that relationships still matter. In community banking and in life, that may be the most valuable currency of all. The Show-Me Banker Magazine | 9
MEET YOUR MISSOURI BANKER Where are your bank and its branches located? What is the market like? Exchange Bank of Missouri is headquartered in Fayette, Missouri, with branches serving Fayette, Marshall, Slater, New Franklin, Fulton and Hallsville. Our market is largely rural and community-driven, made up of hardworking families, farmers, small businesses and local organizations who value relationships and trust. While technology and customer expectations continue to evolve, our communities still appreciate face-to-face service and a bank that truly knows them. What is something unique about your bank? What truly sets Exchange Bank of Missouri apart is our people and our commitment to relationships. We are a hometown bank in the truest sense: locally owned, locally managed and deeply invested in the success of our communities. We blend that personal service with modern technology, ensuring our customers never have to choose between convenience and connection. Vice President, Information Technology & Audit Officer, Exchange Bank of Missouri How did you get started in the banking business? I started my banking career early on and quickly realized how impactful community banking can be. Banking gave me the opportunity to combine problem-solving, technology and service, all while making a meaningful difference for customers and the communities we serve. Community banks play a vital role in local economies, and I wanted to be part of an organization where my work could directly support families, businesses and future growth. What is the most interesting thing you have learned from your transition to the banking industry? One of the most interesting and rewarding things I have learned is how much behind-the-scenes work goes into keeping a bank safe, compliant and innovative. From cybersecurity to internal controls, there is a constant balance between protecting customers and providing them with seamless, modern services. Julie Parrish 10 | The Show-Me Banker Magazine
Tell us about your bank’s community investment efforts. Community involvement is at the heart of Exchange Bank of Missouri, and it’s something I am personally passionate about. Beyond the bank’s financial support of local initiatives, our team actively serves our communities through leadership and volunteerism. I am heavily involved with the Fayette Chamber of Commerce, Rotary Club, Optimist Club, the Fayette Area Common Fund and the Central Methodist University Alumni Board of Directors. These roles allow me to help strengthen partnerships between the bank, local organizations and the people we serve. We believe community investment goes far beyond donations: It’s about showing up, building relationships and helping our towns thrive. What is your bank’s biggest challenge in the area of online/mobile banking? One of the biggest challenges is keeping pace with rapidly changing technology while maintaining strong security and customer education. As digital banking continues to grow, we focus heavily on cybersecurity, vendor management and helping customers understand how to use these tools safely and confidently. What’s your favorite thing about your bank/banking in general? My favorite part of banking is knowing that what we do truly matters. Whether it’s helping a customer protect their account, supporting a local business or ensuring systems run smoothly, our work has a real impact. At Exchange Bank of Missouri, I’m proud to work alongside people who genuinely care about doing the right thing and helping our communities have a strong future. The Show-Me Banker Magazine | 11
IT as an Ecosystem What It Takes To Build an IT Solution That Drives Business Growth By JMARK, MIBA Endorsed Vendor Most businesses outgrow their IT before they even realize it. They often rely on one employee to manage infrastructure, security, onboarding, compliance, innovation, user support, etc. The reality is that this setup is only sustainable for small businesses with no more than 20 employees. Once your organization is responsible for more employees, the needs shift from managing a few endpoints to addressing compliance requirements, shadow IT, cloud platforms, hybrid infrastructure, and employee policy and education. To unlock IT as a lever of growth for your bank, it’s crucial to understand that IT is a living, interdependent ecosystem where every weak link creates a slower experience, higher risk and growing frustration among your team. This article breaks down what that ecosystem really looks like, why hiring another generalist won’t solve your pain, and what it takes to turn IT from a bottleneck into a sustainable engine for institutional growth. The Core Components of a Healthy IT Structure What Most People Think Makes a Healthy IT Structure We all know the basics, like ticket management, security, service technicians and client relationship management, but there’s so much more to IT than what happens on the surface. The issue many institutions face is the belief that they can rely on an IT generalist who does just enough to keep them afloat. Suddenly, your technician is also in charge of your cybersecurity, compliance, network infrastructure, hardware refreshes, etc. This not only places the burden on a single individual, increasing the likelihood of burnout, but it also creates a single point of failure for your entire organization. What a Healthy IT Structure Actually Looks Like So what really goes into IT beyond the typical help desk support? Here’s a breakdown of the core functions needed to create a best-in-class IT infrastructure: 1. Finance 2. Growth 3. Security 4. Projects 5. Onboarding 6. Field Services 7. Audit and Compliance 8. Business Intelligence 9. Product Development 10. Proactive Health and Automation 11. Vendor Relationship Management Why Every Piece is Essential to Your Business Remember the part about IT being an ecosystem? The reason most organizations struggle with IT support as they scale is that they don’t view it as a connected ecosystem. Security needs proactive monitoring and automation to effectively identify threats before they shut down your operations. Project rollouts can easily veer into scope creep without the due diligence performed during the onboarding phase that ensures hardware readiness. Business intelligence loses impact without strategic leadership and clean data. Compliance falls apart without well-documented financial planning, and you can’t stay up to date on what your bank needs without consistent communication and visibility from vendors. Without each component working together, IT workers burn out, issues begin to multiply and your growth slows to a crawl. 12 | The Show-Me Banker Magazine
What to Do Next Now, it’s easy to sit back and suggest that everyone build this powerhouse of technical expertise internally, but that requires a lot of work with time that you don’t have, not to mention the overhead cost for the headcount you’d need to make this run smoothly. That said, it doesn’t mean that you can’t have it. The benefit of working with a partner like JMARK is that you gain access to a team of specialists across each department, battle-tested and ready to deploy without the overhead cost. This way, your internal IT leader is not drowning in help desk support tickets and “Hey, do you have a sec?” conversations that derail their focus. Instead, they can focus on driving the strategy to ensure your technology is helping you create more revenue, protect your assets and proprietary data, and make your employees happier and more productive with fewer disruptions. If this sounds like a solution that could help your team, let’s schedule a conversation to explore how IT can reduce risk, save your time and contribute to revenue. Scan the QR code to book a time to meet with JMARK. https://meetings.hubspot.com/tnielsen/ ae-calendar?uuid=257a1511-924e-4bd6-a6f392a425608771 End-to-End Security, Missouri-Ready Compliance. Get end-to-end security plus hands-on exam support designed for Missouri community banks. Gain access to JMARK's award-winning security platform FORTIFY and clean compatability with core environments. Clients report 11% fewer remediation tasks on average and 19.72% average asset growth over two years.* All managed by JMARK—so you can get back to banking. COMPREHENSIVE IT SOLUTIONS See how MO banks cut remediation with JMARK: JMARK.com/banking 844-44-JMARK JMARK.com *Figures represent client-reported outcomes across JMARK banking clients (2023-2025), on average. Results vary. Welcome New Endorsed Vendor Ncontracts (888) 370-5552 | www.ncontracts.com Ncontracts provides comprehensive vendor, compliance, risk management and lending compliance solutions to a rapidly expanding customer base of 4,000 financial institutions in the United States. We help financial institutions achieve their compliance and risk management goals with a powerful combination of user-friendly cloud-based software and expert services. The Show-Me Banker Magazine | 13
MIBA Winter Board Meeting December 8-9, 2025 14 | The Show-Me Banker Magazine
Thank You, Sponsors! The Show-Me Banker Magazine | 15
I’m hopeful that those New Year’s Resolutions are intact and having their desired effects. In taking one more look back into 2025, it dawns on me that the further we got into the year, the better the bankers’ comments were about their bank’s performance. The industry seems to be hitting on all cylinders (to use a hackneyed expression), but it seems to be true. Between continued solid credit quality metrics, reasonable loan demand and an interest rate scenario that looks to favor continued margin expansion, prospects are encouraging for a successful year for community banks. ICBA Successes Late last year, ICBA President/CEO Rebeca Romero Rainey and ICBA Chairman Jack Hopkins had a conversation about the state of the industry, and they also talked about the momentum in the industry. Legislation on mortgage “trigger leads,” proposals to lower the leverage ratios for community banks, and tax exemptions on 25% of ag and rural lending through the ACRE Act are all expected to help profitability. Also, making the 2018 Tax Cuts and Jobs Act marginal tax rates permanent for both C corps and S corps has provided clarity about portions of the balance sheet that have tax-affected assets — namely, municipal bonds. There is no debate that the Act has helped community bank earnings, though the composition of high-performance portfolios has shifted away from tax-frees into taxable instruments. You can view Rebeca and Jack’s conversation at www.icba.org. Bond Portfolios Are Helping It was documented here last year that portfolio yields are at a many-year high, thanks to the harsh doses of interest rate therapy in 2022-2023, and the slow-to-recede levels of market rates ever since. Community bankers continue to say they’re able to roll out of bonds yielding 1% or less that are finally, mercifully maturing, and whatever the proceeds are used for, net interest margins are improved. Which brings up the second half of this NIM equation. Deposits grew at community banks by about 4% last year, which is near the long-term run rate, and costs of funds have retreated in the past 18 months. Industry-wide, FDIC calculated community bank COFs have fallen by about 30 basis points (0.30%) since mid-2024. The net margin between bond portfolio yields and costs of funds is now over 1% for the first time in about three years. Yield Curve Thoughts Yes, Virginia, there is a Santa Claus. The same is true for the other 49 states and the District of Columbia. For community banks, it came in 2025 in the form of a steep(er) interest rate curve. We closed out the year with the “2s to 10s” spread around 67 basis points (0.67%), which is the best we’ve seen in four long years. Recall too that the average slope for the full 21st century so far has been right at 100 basis points, and it’s entirely possible we’ll get there sometime this year. Community Banks Set for a Robust 2026 By Jim Reber, President and CEO, ICBA Securities, MIBA Endorsed Vendor Off and Running 16 | The Show-Me Banker Magazine
By Andy Arnold, Arnold & Associates MIBA Lobbying Report By the time you read this, the 2026 Missouri Legislative session will be well underway. With 2026 being an election year, during which all state representative seats and 17 state senate seats are up for grabs, we have already seen more legislation filed in the first month of pre-filing than was filed during the last session. As a midterm election, the policies of the current state and federal administrations, along with their effects on voters, are front and center. In the banking world, legislation has already been filed to allow credit unions to reduce membership fees, hold meetings electronically and expand their field of membership. The latter has already been met with fierce opposition from the banking community, leading the Senate bill sponsor to withdraw the bill and refile an updated version that addresses only fee reductions and online meetings. MIBA played an instrumental role in this achievement through its efforts to educate the bill sponsor on the controversy and harm that the expansion of credit union memberships poses to community banks. We will continue to monitor this issue should it appear in the House or later in the session. Additionally, with 10 Senate seats (including SD4-May, SD6-Bernskoetter, SD8-Cierpiot, SD14-Williams, SD16-Justin Brown, SD18-O’Laughlin, SD22-Coleman, SD28-Crawford, SD30-Hough and SD34-Luetkemeyer) and 42 House seats now vacant due to term limits or early retirements, we anticipate being actively involved in vetting candidates for most of the year. With Missouri’s 34 Senate seats and 163 House seats, nearly 30% of the Senate and 26% of the House will have new occupants by the end of the year, so we expect the MIBA PAC to be very active throughout this election cycle. As always, we greatly appreciate the MIBA staff and your continued confidence in our abilities to represent your interests with the Missouri Legislature. Steeper yield curves have all sorts of latent and tangible benefits for the banking industry. The most obvious is that managers can more properly price relative risk into the balance sheets. Thirty-year mortgages are supposed to be priced higher than 15-year mortgages. A ten-year municipal bond is supposed to have a higher yield than a 7-year bond. And a 36-month CD is supposed to pay more than a 24-month CD. All those notions were set on their heads during the two-year stretch of 2022-2024 when yield curves were upside down. Banking fundamentals hopefully will prevail this year, which can only mean more profitability. Bond Swap Prospects Commensurate with the positively sloped yield curve are opportunities for actively managing the bond portfolio. One strategy is to sell certain securities and simultaneously purchase others in a “bond swap.” Lately, since most positions are still underwater, bonds have been sold at losses, with the improved reinvestment yields making up the ground in less time than the remaining average lives. This strategy is known as “loss-earnback.” Two pieces of good news: First, early in the year is a popular time to execute these bond swaps, for the simple reason that the bank has a full year to enjoy the higher yields with which to eat away at the realized loss. Secondly, the steeper the yield curve, the less extension risk needed to make the bond math work. So, my suggestion is to work with your brokers to model such potential trades and document your objectives and rationales. And let me remind readers that the positive forecast for industry profits might make such loss-earnbacks more tenable. Lots to like here as we embark on an ambitious 2026. I look forward to seeing many of you at ICBA LIVE, March 6-9, in sunny (and warm) San Diego. For more information, visit www.icba.org/icba-live. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks. The Show-Me Banker Magazine | 17
By Rob Barton, JD, MBA, Managing Director, BCC, MIBA Endorsed Vendor As we continue through the beginning of the year, many who are still tackling year-end to-do lists now also face the tasks of end-of-year reporting, employee evaluations, promotions and bonuses. However, the first quarter is also an opportune time to look at your bank’s deferred or executive compensation plans and reevaluate them if necessary. Most independent community banks offer some form of executive compensation, whether through long-term retirement/wealth accumulation plans or short-term incentive plans. Long-term plans are typically designed to pay out after the executive has finished employment with the bank. They are considered “top hat” plans and are usually limited to the top 15-20% of employees based on compensation. Commonly known as Supplemental Executive Retirement Plans (SERPs) or Salary Continuation Plans (SCPs), these plans are designed to retain and reward the bank’s top executives by contractually promising a payout, or stream of payments, at the time of retirement. While some plans are based on a percentage of final salary, others use a fixed amount instead. In such cases, they may need to be reevaluated every few years to determine if the contractual payment amount remains appropriate, especially for executives who may have received multiple promotions or raises over the years. The most common short-term plans, rather than focusing on retirement, provide executives with deferred cash compensation while they are still employed at the bank. Commonly known as Deferred Cash Incentive Plans (DCIPs), they can be structured to award an employee an annual grant that may be based on a percentage of salary, or an amount determined by the bank’s performance (or the individual employee’s performance) via an annual scorecard. That grant is then deferred for some years (typically three to five) while earning interest. After the deferral period, the employee is paid the award plus interest. These plans tend to be popular and effective with the second or third tier of employees who may have more immediate cash needs than a retirement plan would provide. As opposed to the SCP, these DCIP plans are not “top hat” plans and can be offered to everyone in the bank. If a bank is using the scorecard method, the annual scorecard should be determined by the first month or two of the year to provide employees with a clear understanding of the metrics that will affect their grant. Deferred compensation plans are offered at a bank’s expense, and many banks with such plans utilize Bank-Owned Life Insurance (BOLI) as an indirect cost offset to these expenses. BOLI is a bank asset, where the bank is both the owner and beneficiary of the policy, generating earnings on a tax-preferred basis. Banks book tax-free earnings monthly, and if held until the contracts mature, all gains and death benefits of the BOLI policy are tax-free to the bank. The spread between BOLI and other alternative assets determines the amount of excess funds the bank is earning, which can be used to offset the expenses of deferred compensation plans. A strategically designed plan can even generate excess earnings over the costs of executive compensation plans, which flow directly to the bank’s bottom line and its shareholders. With a deep understanding of the BOLI market and a veteran team with over 100 years of combined experience, BCC specializes in tailoring efficient strategies to support banks’ individual policies and objectives. Don’t hesitate to reach out if you’d like to learn more. Strategic Approaches to Executive Compensation and BOLI 18 | The Show-Me Banker Magazine
MIBA’s 49 Annual Convention & Expo th DATE SAVETHE Lodge of Four Seasons - Lake Ozark, MO September 14-16, 2026
MIBA Mid‑Winter Seminar January 10-17, 2026, Ixtapa 20 | The Show-Me Banker Magazine
Thank You, Sponsors! The Show-Me Banker Magazine | 21
News From You Community Bank of Raymore Delivers Holiday Cheer to Deployed Service Members Community Bank of Raymore, including branches in Peculiar and Harrisonville, and its sister bank, Community Bank of Pleasant Hill, recently concluded their 7th annual Operation: Gratitude initiative. The program aims to strengthen community bonds by expressing gratitude, sharing holiday cheer and providing active-duty service members with the comforts of home as they spend the holidays away from their families. Initiatives like these are rarely possible without the support of the community. Community Bank is immensely grateful to every school group, organization, business, customer and friend who wrote thank-you notes, helped with shipping costs or donated personal hygiene products, snacks and holiday fun! This year, the bank once again had the pleasure of partnering with Mrs. Huff’s class from Ray-Pec High School to transform plain shipping boxes into festively decorated holiday packages. Local schools and youth groups contributed by providing handwritten letters and ornaments to send to the troops. Thanks to the combined efforts of local daycares, schools and the community, over 1,200 notes of appreciation and 300 ornaments were included in the finished packages. Fundraising partnerships with local restaurants helped cover the considerable shipping costs, including events at Culver’s in Harrisonville, HTeaO, Johnny’s Tavern, Texas Roadhouse, Pleasant Hill Nutrition, Mojito’s and Sonic locations in Raymore, Harrisonville, Pleasant Hill and Peculiar. Bank employees helped assemble the packages, adding special touches like handmade keepsake boxes, personalized ornaments, and other tokens from home. They also hosted a bake sale that raised over $1,000 in a single day! Customers also pitched in — one bank customer generously donated 200 hand-sewn stockings filled with goodies. In the end, the Operation: Gratitude team assembled 316 festive packages full of beef jerky, macaroni and cheese, snack bars, coffee, hydration drink packets, Christmas trinkets, and messages of gratitude and appreciation. Those packages were packed into 47 large boxes and shipped to members of the U.S. Army, Navy, Air Force and National Guard stationed in Abu Dhabi, Germany, Korea, Iraq, Rota and Spain. “We started this program to honor and show appreciation for the people who choose to defend our nation, no matter the sacrifice. We understand that they’re away from home and we want to send a piece of that to them,” said Tina Graef, Community Bank vice president and co-chair of the Operation: Gratitude committee. “This is my fifth year participating in this event, and every year, community involvement has increased. This year, we collected more than 1,200 letters and cards from local schools, churches, and even our Community Bank of Raymore clients. It’s the most we’ve collected in the five years I’ve served on the committee, and it brings me so much joy,” said Darcie Gray, operations associate and Operation: Gratitude committee member. Collections for the next Operation: Gratitude initiative will take place from Nov. 1-15, 2026. To partner with Community Bank or learn how you can get involved with Operation: Gratitude, contact Shauna Stephenson or Tina Graef at (816) 322-2100. 22 | The Show-Me Banker Magazine
Branson Bank Raises Over $34,000 for CAM Food Pantries In January, Branson Bank presented a check for $15,000 to Michele Dean, executive director of Christian Action Ministries (CAM), in support of CAM’s efforts to combat food insecurity in the Ozark Mountain Region. Between online and in-person donations and a $15,000 match from Branson Bank, the bank’s “Heartfelt Deposits” campaign raised a total of $34,614.71. Branson Bank launched the Heartfelt Deposits fundraiser last November, enlisting the community to help raise money for CAM food pantries. Every dollar donated would be matched by Branson Bank up to $10,000. The campaign was the bank’s response to local food insecurity resulting from the government shutdown and subsequent lack of SNAP benefits. “When SNAP benefits were interrupted, Branson Bank showed what it truly means to be a community partner,” said Michele Dean. “Their matching funds helped bridge a critical gap, while advocating for our neighbors and helping raise awareness about food insecurity in our community.” When the $10,000 match limit was met in the first week of December, Branson Bank didn’t hesitate to raise it to $15,000. “After only a few weeks, our neighbors met our challenge … so we raised the bar,” said Bill Jones, CEO of Branson Bank. “2025 has been a year of celebration for us at the bank. On March 22, we celebrated our 25-year milestone, and through hard work, continued growth and standing firm in our values, we were able to end the year by helping meet the needs of our community with this contribution to CAM. We are so thankful to those who supported the Heartfelt Deposits initiative.” CAM partners with Ozarks Food Harvest to provide nutritious food through two food pantries in Branson and Forsyth, as well as mobile distribution sites across Taney and Stone Counties. Michele Dean added, “The funds raised through Heartfelt Deposits will help us provide over 100,000 meals to our community by utilizing resources through Ozarks Food Harvest. We are sincerely thankful for Branson Bank’s leadership and generosity.” Welcome New Associate Member Northwestern Mutual (573) 235-7578 | www.northwesternmutual.com Northwestern Mutual provides financial planning solutions focused on risk management, retirement planning and long-term financial security. With a commitment to building trusted relationships and helping individuals and businesses achieve their financial goals, Northwestern Mutual is a valued partner to community banks and the clients they serve. BANCMAC COMMUNITY BANC MORTGAGE CORP. YOUR COMMUNITY BANK MORTGAGE PARTNER bancmac.com mortgages@bancmac.com 888.821.7729 | NMLS# 571147 BancMac provides correspondent and wholesale lending and is your Community Bank Mortgage Partner to help your financial institution originate fixed-rate secondary market loans including: PROGRAMS • Conventional Loans • USDA Rural Development Loans • Rural Living (Hobby Farm) Loans • VA Loans • Jumbo Loans • FHA Loans OUR PARTNERS RECEIVE: • Superior Service & Competitive Pricing • No Minimum Volumes • Significant, Non-Interest Fee Income • Non-Solicit Protections & More The Show-Me Banker Magazine | 23
Contributors to the MIBA Political Action Committee are recognized for their generosity on the Association’s website and at the MIBA Annual Convention and Exhibition. Different levels of contribution have been set to recognize supporters of our Political Action Committee fund and to make the Association’s membership more aware of this important facet of our work on behalf of the political agenda of community banks across Missouri. PAC HONOR ROLL 2025 December 1, 2025 NOTE: PERSONAL or CORPORATE CAMPAIGN CONTRIBUTIONS TO ANY PAC ARE NOT DEDUCTIBLE IN ANY AMOUNT FOR FEDERAL TAX PURPOSES. President’s Fair Share Level $10 per Mil in Deposits and up Adrian Bank Bank of Advance Bank of Old Monroe Bank of Salem Blue Ridge Bank and Trust Co., Independence BTC Bank, Bethany Community Bank of Pleasant Hill Community Bank of Raymore Community State Bank of Missouri, Bowling Green Exchange Bank of Missouri, Fayette Exchange Bank of Northeast Missouri, Kahoka Farmers & Merchants Bank, St. Clair FCNB Bank, Steelville First Bank of the Lake First Independent Bank, Auroa First State Community Bank, Farmington Jonesburg State Bank Metz Banking Company, Nevada Mid America Bank, Wardsville Midwest Independent BankersBank, Jefferson City Midwest Regional Bank, Clayton New Frontier Bank, St. Charles Northeast Missouri State Bank, Kirksville Peoples Bank & Trust Co., Troy Peoples Bank of Altenburg Peoples Bank of Wyaconda, Kahoka Peoples Savings Bank, Hermann Preferred Bank, Rothville Regional Missouri Bank, Marceline Security Bank of the Ozarks, Eminence Sherwood Community Bank, Creighton The Missouri Bank, Warrenton Tipton Latham Bank, NA Town & Country Bank, Salem United State Bank, Lewistown Verimore Bank, Brookfield Platinum Level $750 and up Citizens Bank, New Haven F&C Bank, Holden Gold Level $400- $749 1st Advantage Bank, St. Peters Community Point Bank, Russellville Farmers State Bank, Cameron Legends Bank, Linn Silver Level $200- $399 Bank of Crocker Chillicothe State Bank Silex Banking Company State Bank of Missouri, Concordia Individual Donations John Allee, Tipton Don & Lisa Becker, Tipton Calen Bestgen, Tipton H.E. Blankenship, California Carl Blochberger, Tipton David Johansen, Syracuse Sue Ann Loesch, Jefferson City Karen Messerli, California Bobby Schatzer, Latham Lori Woratzeck, California 24 | The Show-Me Banker Magazine
For more information contact Rebecca Young at ryoung@miba.net or Visit our website at www.miba.net This is the best money we’ve ever spent on compliance. My compliance officer gets so much good out of this and utilizes the call-in feature for questions frequently. Our bank would hate not to have this available. -Dave Alderton, Peoples Bank of Wyaconda Stronger Compliance. Less Stress Join the Program in 2026 Your all-in-one, year-round resource for compliance support Missouri Independent Bankers Association (MIBA) is proud to sponsor the Community Bankers for Compliance (CBC) Program)—the longest-running and most successful compliance training program in the country. CBC provides community banks with the tools, expertise, and ongoing support needed to navigate today’s ever-changing regulatory environment with confidence. CBC gives your bank: Up-to-date training on evolving regulations Guidance on building and maintaining your in-bank compliance program Practical tools and examples you can implement immediately Access to experts you can contact with compliance questions A peer network of community bank compliance professionals
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy MTg3NDExNQ==