ISSUE 3 2024 Official Publication of the Community Bankers Association of Kansas COMMUNITY BANKERS ASSOCIATION 2024 Convention & Trade Show
CONTENTS Issue 3 www.cbak.com © 2024 Community Bankers Association of Kansas | The newsLINK Group, LLC. All rights reserved. In Touch is published six times each year by The newsLINK Group, LLC for the Community Bankers Association of Kansas 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 Community Bankers Association of Kansas, 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 Community Bankers Association of Kansas is a collective work, and as such, some articles are submitted by authors who are independent of the Community Bankers Association of Kansas. While In Touch 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. 4 FLOURISH WHY THE COMMUNITY BANK STORY MATTERS IN ADVOCACY By Rebeca Romero Rainey, President and CEO, ICBA 6 2024 CONVENTION & TRADE SHOW 8 2024’S TOP CYBERSECURITY THREATS By Steve Sanders, Chief Risk Officer and Chief Information Security Officer, CSI 12 DIALING IT BACK Simple Bonds Find Favor with Portfolio Managers in 2024 By Jim Reber, President and CEO, ICBA Securities 14 LEARNING FROM REDLINING ENFORCEMENT ACTIONS By William J. Showalter, CRCM, Senior Consultant, Young & Associates Inc. 17 INNOVATION STATION HOW CORE PROVIDERS ARE BECOMING CORE TO INNOVATION By Charles E. Potts, Executive Vice President and Chief Innovation Officer, ICBA 19 CBA VENDOR MANAGEMENT PLATFORM 20 ANNOUNCEMENTS 21 ANNIVERSARIES IN EVERY ISSUE: 23 OFFICERS AND DIRECTORS 23 PRODUCTS AND SERVICES REFERENCE LIST 26 BANK TRAINING WEBINARS 62024 CONVENTION & TRADE SHOW 14LEARNING FROM REDLINING ENFORCEMENT ACTIONS 82024’S TOP CYBERSECURITY THREATS 3 In Touch
As we wrap up Community Banking Month, I am thrilled to honor the ways community banks step up to champion the needs of their communities. Whether it’s through personal interactions or modern-day conveniences, community banks hit that sweet spot where relationships meet today’s technology to provide unparalleled support to the customers and communities they serve. No other financial entity comes close to offering that high-tech, high-touch relationship that’s integral to who we are as community bankers. It’s not just about the deposits deployed in the form of loans, the contribution of thousands and thousands of dollars to the community or the countless hours spent supporting local families and businesses — it’s a combination of them all. These traits make it such an amazing industry to advocate for, because we are simply asking for what’s right so community banks can continue to work for the common good. And therein lies the difference that policymakers need to understand. When we share our personal stories with legislators on Capitol Hill or with rulemakers, we make it real for them. The community bank story takes what may be an academic theory, rulemaking concept or well-intentioned law-in-the-making and ensures it’s relatable on an individual level. It plainly demonstrates where emerging regulations may have merits or pitfalls and how they really will affect businesses and consumers in their communities. [Community bankers’] storytelling pulls concepts out of the theoretical into reality. When you can demonstrate how these topics affect the lifeblood of the community, it’s transformational. BY REBECA ROMERO RAINEY, PRESIDENT AND CEO, ICBA WHY THE COMMUNITY BANK STORY MATTERS IN ADVOCACY Flourish 4 In Touch
Community bank stories also demonstrate why legislators and regulators can’t paint with a broad brush across the financial services landscape. Our ability to differentiate ourselves and explain our relationship-based approach shows who we are as businesses and how we prioritize customer needs. This storytelling pulls concepts out of the theoretical into reality. When you can demonstrate how these topics affect the lifeblood of the community, it’s transformational. For instance, our ability to convey how community banks differ from Silicon Valley Bank and other failed large banks enabled us to effectively advocate to keep most community banks out of the FDIC special assessment. We made it real for regulators, ultimately ensuring that the rule was being written to differentiate community banks from the rest of the industry — because we inherently are different. So, it’s with a spirit of community bank pride that I invite you to share your story during Capital Summit (icba.org/capital-summit), taking place in Washington, D.C., from April 28 to May 1. Seize this opportunity to ensure legislators recognize the community bank difference. And in the meantime, take this month to celebrate all that you do. In the eyes of all who know your story, it’s well-earned. Where I’ll Be This Month I’ll be heading to Memphis for meetings with ICBA Securities and state partners, and then I’ll be attending the ICBA Capital Summit at the end of the month. I hope you will join us! 5 In Touch
Game Night Looking for a fun-filled night that the whole family can enjoy? Come and join us at Frank & Lola’s Game Room on Friday, July 18, at 6:00 p.m.! You’ll love their delicious pizzas and refreshing beers that are perfect for a night of entertainment. With their wide range of exciting games, including darts, billiards, air hockey and bowling (including bumper bowling), you’re sure to have a great time. Bring your family and get ready to have a blast at Frank & Lola’s Game Room! 2024 Convention Trade Show Steve Gilliland “It Is What You Make It” More than ever, people must rely on collective strength, think differently and find ways to make themselves stronger and more complete. How you respond to challenges is founded on your mindset. This relevant and timely keynote speech reveals how to produce a specific mindset that directly impacts your behavior in different situations. It shows the keys to solving the problem instead of accepting it and shares how to readjust your thinking and react in any situation to impact your success positively. It’s time to let go of it is what it is. It’s time to embrace a new mindset: it is what you make it! • How to overcome the common barriers to thinking and accepting situations as they are. • How to maintain a positive attitude while teaming with others to explore new possibilities and generate various effective solutions. • How to fuel your passion and enthusiasm to help you think critically and imaginatively to achieve goals that push you beyond challenges. 6 In Touch
Register today at www.cbak.com! The Community Bankers of Kansas is getting ready for another exciting and memorable Convention & Trade Show, to be held July 1820, 2024. We hope you join us for this threeday event at Margaritaville Lake Resort Lake of the Ozarks in Osage Beach, Missouri. You won’t want to miss the outstanding speakers, including Keynote Speaker Steve Gilliland, networking opportunities and the night of family fun at Frank & Lola’s Game Room! Thank You, Sponsors! CBA offers special recognition and appreciation to the following companies who have committed to convention sponsorship: SHAZAM Bankers’ Bank of Kansas Bank Compensation Consulting BHG Financial DCI ICBA ICBA Payments ICBA Securities RESULTS Technology Advanced Business Solutions FHLBank Topeka Oppliger Banking Systems SJC Marketing Travelers UNICO Group Inc. 7 In Touch
2024’S TOP CYBERSECURITY THREATS BY STEVE SANDERS, CHIEF RISK OFFICER AND CHIEF INFORMATION SECURITY OFFICER, CSI As the process of protecting systems, networks and endpoints from attack, cybersecurity is critical to any organization. Since banks must protect customer data, keeping up with evolving cyber threats and concerns is vital. In its annual Banking Priorities survey, CSI asked bankers across the country about their views on top cybersecurity challenges. This article explores how bankers view the changing cybersecurity landscape. Exploring Bankers’ Top Cybersecurity Concerns As part of our country’s critical infrastructure, financial institutions are prime targets of cyberattacks and must navigate an evolving threat landscape. Let’s examine the breakdown of bankers’ top cybersecurity concerns in this year’s survey: • Adapting to Changes in the Cyber Insurance Market: The results reveal that 19% of bankers view this as their top concern, which is unsurprising as cyber incidents continue to rise. In addition to cybersecurity monitoring solutions and increased personnel training, cyber liability insurance provides another layer of protection for institutions in the event of an attack. This result highlights a potential uncertainty about upcoming developments in the cyber insurance market, whether regarding price increases or coverage exceptions. Institutions should carefully review their coverage, and some are seeking assistance from IT governance services to evaluate their needs. 8 In Touch
• Being Unprepared to Respond to a Cyber Attack: 18% of bankers expressed concern with their preparedness for cyberattack responses. As incidents evolve, institutions must ensure they plan accordingly, including developing and testing robust incident response plans (IRPs) that detail the steps to take in the event of a cybersecurity incident. Having an established IRP makes it easier for institutions to act decisively and minimize negative consequences if faced with a cyberattack. • Lack of Compliance with Cybersecurity Frameworks: 17% of bankers selected lack of compliance with cybersecurity frameworks as a top concern. Implementing robust cybersecurity frameworks, such as the National Institute of Standards and Technology’s Cyber Security Framework (NIST CSF), helps institutions identify and apply solid controls in high-risk areas. Proven frameworks also enable banks to maximize compliance initiatives and cybersecurity spending. • Cyber Risks Not Being a Priority for Executive Leadership: This year, 17% of respondents indicated concern that cyber risks are not a priority for their institution’s executive leadership. Institutional leadership should recognize cybersecurity as a business issue, and a chief information security officer (CISO) plays an important role in guiding cybersecurity spending. Are Bankers Ready to Respond to Cybersecurity Threats? Preparing for the inevitable cyberattack is a never-ending responsibility. Let’s gain insight into banking executives’ perspectives on their own cybersecurity readiness: • Improving Cybersecurity Education: 92% of respondents agree — with 50% strongly agreeing — that their bank could improve cybersecurity education. If your employees receive a suspicious email, do they know the proper steps to report it? Educating employees on evolving threats and the latest social engineering schemes is one of the most effective ways to mitigate cyber risk. • Understanding Cyber Risk: Most respondents (89%) agree they understand their institution’s cyber risk. But as risk continues to evolve, are banks keeping up with the latest threats? Understanding recent cyber incidents provides key insight into how bad actors execute attacks and helps institutions stay one step ahead. As discussed previously, consider implementing a cybersecurity framework to guide risk mitigation if you haven’t already. • Producing a Business Case for Cyber Spending: An overwhelming majority (92%) of respondents feel their CISO can produce a strategic business case for cyber spending. Since cybersecurity affects the entire organization, it should be viewed as a business issue. IT governance helps your institution ensure your technology Mortgage Investment Services Corporation 22316 Midland Drive • Shawnee, KS • 66226 • 913-390-1010 NMLS# 194708 • A Kansas licensed mortgage company #MC 0001182 Missouri Residential Mortgage Loan Broker Licence # 10-1912 Oklahome Mortgage Broker #MB001953 Colorado License #100044344 Nebraska Licensed Mortgage Company NMLS#194708 Arkansas Licensed Mortgage Company License #124530 20+ Years! Depend On Us! For 20+ years, community banks in the Midwest have depended on MISC’s expert mortgage services for their customers. • Free Loan Officer Training & Webinars •Offer all secondary market loan programs: VA, FHA, USDA/RD, Conventional & Jumbo •Earn more fee income with less risk Call or email today. Let’s discuss how MISC can help you! Andrew Holtgraves, Senior Vice President Cell: 913-558-2555 Email: Andrew@MISCHomeLoans.com 9 In Touch
investments support your unique goals while mitigating IT- and cybersecurity-related risk. IT governance experts can also supplement your CISO’s efforts in making a business case for cyber spending. While these responses are encouraging, many financial institutions stand to benefit from hosting internal discussions between their CISO and other C-suite executives to ensure everyone is on the same page and confident surrounding cybersecurity preparedness. Additionally, they should focus on resource optimization, streamlined processes and a commitment to ongoing education to fortify their institution against the everchanging threat landscape. How Do Bankers Feel about Cybersecurity Compliance? As cybersecurity threats increase, so does regulators’ emphasis on cybersecurity compliance, which involves fulfilling necessary regulatory requirements and implementing security controls for protection. This enhanced focus requires banks to uphold a secure IT infrastructure and proactively address risks. Given regulators’ increased focus on this area, it’s no surprise that 87% percent of bankers reported being at least somewhat concerned about cybersecurity compliance. Survey results reveal that bankers are using a variety of methods and tools to stay compliant. The top tools used for cybersecurity compliance are conducting risk assessments and impact analysis studies (46%). Well-executed risk assessments are a key component of a cybersecurity plan because they help organizations identify and manage financial, operational and other risks associated with internal and external incidents. Why Institutions Should Understand Top Cybersecurity Threats Dealing with cybersecurity threats is nothing new for financial institutions. Still, institutions should exercise constant vigilance and stay abreast of the latest threats to ensure they mount the most effective defenses. By keeping a pulse on current threats and where the cybersecurity landscape is headed, your institution will be better positioned to keep your network, data and users secure. Steve Sanders serves as CSI’s chief risk officer and chief information security officer. In his role, Steve leads enterprise risk management and other key components of CSI’s corporate compliance program, including privacy and business continuity. He also oversees threat and vulnerability management as well as information security strategy and awareness programs. With more than 15 years of experience focused on cybersecurity, information security and privacy, he employs his strong background in audit, information security and IT security to help board members and senior management gain a command of cyber risk oversight. 10 In Touch
What Was … For more than two decades, one of the most predictable features of high-performing bond portfolios was the sector weighting for municipal securities. When we divided the bond accounting banks into four quartiles, sorted by yield, we would consistently see that the more munis a bank owned, the higher the yields relative to the rest of the population. There was also a correlation between yield and duration. Of course, the top quartile would have the longest average lives. But that didn’t necessarily translate into greater price risk. Tax-free securities have about 80% of the price volatility of taxables due to the way in which tax-free interest rates affect market prices (which is a column for another month). The point to be made is that a higher allocation to munis translated into better relative performance. As recently as December 2021, 52% of the top quartile’s holdings were in tax-frees. Such is most assuredly not the case today. … Is No Longer By December 2023, the top quartile had an allocation to munis of 26%, or just half what it had only 24 months earlier. Some of those dollars migrated into various types of amortizing securities, but the bulk of the reinvesting went into — wait for it — treasury bonds. The numbers are quite astonishing. In the fourth quarter, fully 60% of new purchases were treasuries. They weren’t necessarily long maturities, either, as the treasury holdings, on average, had a duration of well under two years. And remember that we’re talking about the top quartile. A skeptic would suppose that the erstwhile long-duration, heavy tax-free portfolios — and their built-in yield advantage — have given up some ground to the more conservative lower quartiles. One would be even more confident of that supposition knowing that the effective duration of the top quartile has shrunk in the past two years from 4.5 years to 3.9. One would be wrong. The yield gap between quartiles one and four was 124 basis points (1.24%) in December 2021; now, the difference is 173 basis points or 1.73%. KISS in this column does not refer to the pancake-makeup-wearing, androgynous rock ‘n’ roll band from the 1970s. I’m pleased to report it’s the acronym for “Keep It Simple, Stupid.” I mean no disrespect to the readers; in fact, it’s a compliment to community bank bond buyers, who once again have demonstrated their inclination to relativevalue propositions and their ability to react quickly to changing market forces. ICBA Securities’ exclusive broker, Stifel, provides several complementary services to its stock-in-trade of debt securities for community banks. Not least is bond accounting, which more than 400 ICBA members use to document their portfolio holdings. In aggregate, these banks own more than $76 billion in bonds, so it’s a large enough sample size to reasonably suggest they represent the industry as a whole. And you might be pleasantly surprised to learn that the highest-performing banks in this group are not achieving their results through any complex, convoluted, risk-addled means. In 2024, simplicity has rewards. DIALING IT BACK Simple Bonds Find Favor with Portfolio Managers in 2024 BY JIM REBER, PRESIDENT AND CEO, ICBA SECURITIES 12 In Touch
What Just Happened The reasons for the “dump munis, buy treasuries” trade can be summarized in these three factors: 1. The shape of the curve: The inverted curve, which has persisted since July 2022, has made longer-yielding bonds less attractive than shorter ones. The longest securities in a typical community bank portfolio are munis, which is a good news/bad news proposition for inverted curves. They have lost less value than others since 2022, but the current market yields for them are below those of lower-duration bonds. 2. The supply/demand dynamics of the municipal market: Munis really haven’t held much value for corporations since 2018, when the marginal tax rates for C Corps dropped to 21%. The retail demand for munis has continued apace, as individual tax rates didn’t drop as much. And finally, as we’ve discussed in this space before, the entire municipal bond universe has not grown for well over 10 years. This has pushed yields on even 10-plus-year munis below those of similar maturity treasuries. 3. The “higher for longer” narrative: Some portfolio managers are buying into the “higher for longer” narrative for short-term interest rates. The first quarter of the year saw expectations for actual cuts to fed funds pushed into the second half of 2024, and the number and size of the cuts declined, too. This has kept the inverted curve intact and has made even money-market treasuries the choice of engaged portfolio managers. The result is that the highest-yielding and more risk-averse bank portfolios these days have a heavy dose of short treasuries. The top quartile at the start of 2024 had a full 14% allocation, which is a high-water mark for the past quarter century. As our friends from KISS might say, community bankers can buy short treasuries all night, and enjoy the results every day. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks. Education On Tap Bond Accounting at Your Service ICBA Securities’ exclusive broker, Stifel, offers an industry-leading bond accounting package that’s scalable to your community bank’s portfolio at very competitive prices. For more information or to see a demo, contact your Stifel sales rep. FMSI www.fmsiconsulting.com 913.955.3355 FMSI is a small business founded and located in Kansas, specializing in assisting community banks to succeed, a mission consistent with core CBA values. We have partnered with community banks for nearly 25-years providing core advisory services including asset/ liability, investment, and liquidity management. FMSI advisors actively assess market conditions and bank balance sheets of different size, mix, and capital levels. Market conditions are constantly changing presenting opportunities and challenges for CBA member banks. Interest rates are increasing for the first time in nearly a decade and now is a perfect time to partner with a trusted, industry leader. Establishing an FMSI relationship provides confidence your bank is optimizing the balance sheet, deploying necessary strategies, maximizing profitability, and managing balance sheet risks. FMSI is a Kansas CBA Endorsed Provider 13 In Touch
The concept of “redlining” as a form of illegal discrimination has been around for at least 30 years. Redlining is a form of illegal disparate treatment based on geography. Consumers receive unequal access to credit or receive credit on unequal terms due to the demographic characteristics of a geographic area — the neighborhood either where they live or where the security property is located. The Department of Justice (DOJ) and banking regulators have alleged that lenders involved in these enforcement actions redlined majority-minority neighborhoods through their marketing, sales and hiring actions. The lender’s actions discouraged prospective applicants from applying for mortgage and refinance loans in a particular area’s majority-minority neighborhoods, in violation, in some combination, of the Fair Housing Act (FHA), Equal Credit Opportunity Act (ECOA), Regulation B and the Consumer Financial Protection Act of 2010 (CFPA). These enforcement actions have been comprised of settlement agreements to resolve allegations of lending discrimination by redlining detailed in complaints filed in courts. New Initiative The DOJ recently announced the start of its new Combatting Redlining Initiative. The new initiative represents the DOJ’s most aggressive and coordinated enforcement effort to address redlining. LEARNING FROM REDLINING ENFORCEMENT ACTIONS BY WILLIAM J. SHOWALTER, CRCM, SENIOR CONSULTANT, YOUNG & ASSOCIATES INC. 14 In Touch
This initiative will be led by the Housing and Civil Enforcement Section in the DOJ Civil Rights Division and will work in partnership with U.S. Attorney’s Offices. It will build on the longstanding work by the division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. Allegations Typically, redlining complaints have alleged that the lender involved in the action took some combination of the following actions: • Avoided locating branches or other offices in majorityminority areas within the financial institution’s market area. • Avoided serving the credit needs of borrowers in majorityminority census tracts, or borrowers seeking credit in those tracts, from obtaining mortgage (or other) loans while acting to serve the credit needs for mortgage loans in majoritywhite census tracts. • Engaged in discriminatory conduct that would discourage loan applications from prospective applicants who are residents of or seeking credit in majority-minority census tracts in the geographic area. • Used a compensation policy that contains disincentives to make loans in majority-minority areas. • Adopted and maintained internal fair-lending policies and procedures that are inadequate to ensure that the bank provides equal access to credit to majority-minority communities. • Employed few (if any) minority loan officers/originators. • Failed to use advertising media that are directed toward or oriented to a majority-minority community. • Avoided sending loan officers to market to majorityminority neighborhoods. • Developed marketing campaigns and advertisements that discouraged and ignored minority mortgage loan applicants, particularly by use of individuals pictured in marketing materials — both models and financial institution employees — that appear to be white. • Distributed racist language and messages about certain neighborhoods — e.g., emails containing racial slurs and racist content, using racist tropes and terms, pejorative content specifically related to real estate properties’ locations and appraisals, and/or targeting people living in majority-minority neighborhoods. Continued on page 16 15 In Touch
Settlements The settlements of redlining cases have included some combination of the following remedial actions that the involved financial institutions commit to undertake: • Operate in compliance with the FHA and the ECOA and not engage in redlining or any other acts or practices that discriminate on the basis of race, color, national origin or any other “prohibited basis” in violation of the FHA or ECOA. • Invest a prescribed amount of money in the areas allegedly redlined for special mortgage loans, usually at favorable terms and often in conjunction with some loan subsidy fund and/or grants to be applied toward down payments and closing costs. • Open branches/offices in the allegedly redlined area and maintain full-time mortgage lending personnel to serve the area. • Advertise bank services in the areas involved and target sales calls to real estate professionals serving those areas. • Continue to assess the credit needs and lending opportunities in majority-minority census tracts in the area involved on an ongoing basis. • Meet annually with community partners, government officials, real estate agents and brokers, among others, to understand the credit needs of the majority-minority communities in the target area. • Initiate/continue efforts to recruit minority individuals for employment in management and loan production positions. • Adopt/employ/maintain fair lending compliance management programs, policies and practices. • Develop and deliver fair-lending training on the financial institution’s obligations under ECOA, Regulation B and the FHA, as well as the settlement with the DOJ to relevant bank staff and officials. • Designate a qualified, full-time employee to direct community lending, particularly targeting the formerly redlined area. • Partner with one or more community-based or governmental organizations that provide the residents of majority-minority census tracts in the affected area with services related to credit, consumer financial education, homeownership and foreclosure prevention. • Submit regular reports to the government agencies involved in the settlement to memorialize its efforts to assess community needs and comply with the terms of the agreement. Avoiding Redlining Problems Generally, no financial institution would want to intentionally discriminate against members of its community through redlining or any other means. One way to avoid such situations is to survey the list of alleged wrongdoings above and ensure that your financial institution is not falling into one or more of these practices. Additional steps a financial institution can take to avoid redlining problems include the following: • Examine your institution’s Home Mortgage Disclosure Act (HMDA), if applicable, and other lending data. • Evaluate your geographic and racial lending patterns in light of your community demographics. • Evaluate your branch locations and other delivery mechanisms, marking and advertising programs, sales call programs and employee diversity. Lenders should look at these issues and make appropriate adjustments, if needed, as well as explore other ways to increase lending to all members of their community, including minority individuals. William J. Showalter, CRCM, is a senior consultant with Young & Associates Inc. (www.younginc.com), with over 35 years’ experience in compliance consulting, advising and assisting financial institutions on consumer compliance and compliance management issues. He authors and edits compliance publications and articles for Young & Associates. He can be reached at wshowalter@younginc.com. Continued from page 15 16 In Touch
On Feb. 5, the ICBA Innovation team conducted our first core day with our AP5 Accelerator cohort. CSI, DCI, FIS, Fiserv, Jack Henry and Q2 all came to Atlanta to join us for what we dubbed a “reverse pitch” to explain how to best partner with them to serve the needs of community banks and their customers. These respected and well-established companies generously shared their innovation strategies and objectives in pursuit of enhanced collaboration between community banks and their preferred fintechs and third-party providers. That day will go down as a major inflection point for community banks and their relationships with both fintechs and core providers. I commend every one of the cores for their candor and ongoing efforts in creating an environment conducive to advancing community bank innovation. They seek to provide the solutions you need to succeed and have demonstrated a willingness to engage in new ways. The work ICBA and its member banks have done over the past several years has helped foster this environment, and every core openly gives their time to provide a level of insight not typically available in support of our mutual goal. Yet, the onus is not simply on the core providers and fintechs to make these relationships work: community banks have a responsibility to drive the dynamics. We’re entering uncharted territory. It’s not easy for any large company to shift historical processes and look to become more cutting-edge. As the evolution occurs, you must communicate your needs and expectations diligently. Take charge of this conversation and confirm they know how you as the banker — the client — want this to work. Be the inquisitive child who keeps asking why until you’ve gotten the answers you need. Lean into resources like ICBA, our preferred service providers, corporate associate members, ThinkTECH alumni and other partners in this space to identify best practices. And never forget, you’re stronger together. Like any business relationship, unified voices speak louder and that’s important to embrace to advance your innovation agenda. Leverage peers who share the same core provider or fintech and work together to push for important technology offerings. Let your collective voice drive your partners’ priorities. Outside of labor costs, the biggest expense a bank has comes in its technology stack, so these are critically important relationships, and they have to be top of mind when evaluating your strategy. With so much potential for new forms of innovation emerging through this new fintech/core paradigm, it may be simpler than ever before. So, let’s take them at their word and execute. Innovation Station HOW CORE PROVIDERS ARE BECOMING CORE TO INNOVATION BY CHARLES E. POTTS, EXECUTIVE VICE PRESIDENT AND CHIEF INNOVATION OFFICER, ICBA Charles E. Potts is ICBA’s executive vice president and chief innovation officer. Potts drives ICBA’s innovation initiatives and financial technology strategies. 17 In Touch
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Lance Liby has been selected as the new chief business officer for FHLBank Topeka, a wholesale bank that serves as a source of credit for member financial institutions in Colorado, Kansas, Nebraska and Oklahoma. “We are pleased to promote Lance to this new role,” said Jeff Kuzbel, president and CEO of FHLBank Topeka. “Lance’s work as a former chief credit officer provided numerous opportunities to engage with our members. His strong commitment is essential to our collective success and ability to serve members and communities across our district through our member-owned cooperative.” As chief business officer, Liby will lead many of the member-facing areas. He joined FHLBank Topeka in May 2013 as director of credit analytics and served as chief credit officer since 2017. Prior to joining FHLBank, he was vice president at Mortgage Liquidity Solutions and a consultant with the Rochdale Group. In addition, he was the senior manager of credit risk at U.S. Central Federal Credit Union for eight years. He has a bachelor‘s degree in business administration from Kansas State University and a master’s degree in business administration from the University of Missouri, Kansas City. “As chief credit officer, I had the pleasure of getting to spend time collaborating with members on pledging collateral to FHLBank to help facilitate their liquidity and funding needs,” said Liby. “In this new role, I’m excited to spend more of my day thinking about how we might continue to improve our various products and services to ensure we are meeting the liquidity and funding needs of our members, so that they can continue to build stronger communities.” ANNOUNCEMENTS 20 In Touch
Congratulations to the banks celebrating May and June anniversaries as chartered institutions! ANNIVERSARIES May 148 years, est. 1876 First National Bank of Hutchinson — Hutchinson 138 years, est. 1886 Citizens Bank of Kansas — Kingman 135 years, est. 1889 State Bank of Bern — Bern 124 years, est. 1900 Citizens State Bank & Trust Co. — Ellsworth 123 years, est. 1901 Bison State Bank — Bison 123 years, est. 1901 Union State Bank — Uniontown 101 years, est. 1923 First National Bank — Hope 63 years, est. 1961 First Bank Kansas — Salina 34 years, est. 1990 The Trust Company of Kansas — Wichita June 127 years, est. 1897 Outdoor Bank — Manhattan 123 years, est. 1901 Union State Bank — Clay Center 122 years, est. 1902 KansasLand Bank — Quinter 115 years, est. 1909 Farmers State Bank — McPherson 113 years, est. 1911 Astra Bank — Scandia 21 In Touch
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Products and Services Reference List 2024 CBA OFFICERS AND DIRECTORS Joe Rottinghaus Chairman Conway Bank Tanner Johnson Chairman-Elect Swedish-American Bank Tom Pruitt Secretary/Treasurer Peoples Bank & Trust Company Irv Mitchell Immediate Past Chairman Wilson State Bank DIRECTORS Josh Bailey Security State Bank Kent Culbertson First National Bank and Trust Cheri Fahrbach First National Bank of Hutchinson Brandon Lee Union State Bank Margaret Nightengale Grant County Bank Steven Suellentrop Legacy Bank Jim Wayman ESB Financial Michele C. (Mickey) Lundy Past Chairman Tampa State Bank STATE ICBA DIRECTOR Blake Heid First Option Bank CBA STAFF Shawn Mitchell President and CEO shawn@cbak.com Nikki Dohrman Senior Vice President/ Executive Director nikki@cbak.com Yvonna Hansen Vice President of Member Services yvonna@cbak.com Stuart Little Little Government Relations, LLC Officers and Directors The following CBA Associate Members are ready to serve you when you need them. Please keep this list handy, and the next time you’re looking for a specific service, you’ll know where to look first! Remember, this is just a sampling of what each company provides. The “*” represents an agreement for a specific endorsed product with that company. Not all products that these companies offer are endorsed by CBA. To see a detailed list and explanation of endorsements, visit CBA at www.cbak.com. Keep in mind that the services listed by each company on this page may only be a sampling of the many services they offer. By their CBA Associate Membership, these companies have shown their commitment to serving community banks. Please look to these companies first, whenever possible, to meet your banking needs. ABSTRACTING Security 1st Title Wichita, KS . . . . . . . . 316-267-8371 ACCOUNTING/TAX RETURNS Allen, Gibbs & Houlik L.C. Wichita, KS . . . . . . . . 316-267-7231 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . 785-537-2202 ACH *SHAZAM Johnston, IA . . . . . . . . 515-288-2828 ADVERTISING SPECIALTIES *SJC Marketing Susan: St. Joseph, MO . . . . 816-396-8575 *Works24 Brian: Edmond, OK . . . . . . . . . . 800-460-4653 ALARMS & SECURITY PRODUCTS Federal Protection Springfield, MO . . . . . . .800-299-5400 Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . .800-487-7875 ARTIFICIAL INTELLIGENCE *Agent IQ Drew: Austin, TX . . . . . . 830-708-9370 ASSET LIABILITY MANAGEMENT *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS 913-955-3355 See ad pg. 13 *QwickRate Dan: Marietta, GA . . . . . . 800-285-8626 ATM EQUIPMENT (NEW/USED) Federal Protection Springfield, MO. . . . . . . .800-299-5400 Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . . 800-487-7875 AUCTION Purple Wave Manhattan, KS . . . . . . . 785-537-7653 BACK ROOM SERVICE Modern Banking Systems Ralston, NE . . . . . . . . . 800-592-7500 BALANCE SHEET CONSULTING *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS 913-955-3355 See ad pg. 13 BANK OPERATIONS The Baker Group Oklahoma City, OK . . . . . 800-937-2257 *QwickRate Dan: Marietta, GA . . . . . . 800-285-8626 BANK/PEER PERFORMANCE *QwickRate Dan: Marietta, GA . . . . . . 800-285-8626 BANKRUPTCY Spencer Fane LLP Overland Park, KS . . . . . .800-526-6529 BANK STOCK LOANS & LOAN OVERLINES Commerce Bank Kansas City, MO . . . . . . . 800-821-2182 *S&P Global Stacy: Charlottesville, VA . . . 434-951-4419 BOND ACCOUNTING First Bankers Banc Securities Overland Park, KS . . . . . . 913-469-5400 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . 800-422-6442 COMPLIANCE ASSISTANCE/REVIEWS *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . 913-340-7041 Allen, Gibbs & Houlik L.C. Wichita, KS . . . . . . . . 316-267-7231 *BHG Bank Group Tom: Syracuse, NY . . . . . . 315-372-4510 *MPA Systems David: Fort Worth, TX . . . . 888-233-1584 Purple Wave Manhattan, KS . . . . . . . 785-313-2094 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . 785-537-2202 Young & Associates Inc. Kent, OH . . . . . . . . . 800-525-9775 23 In Touch
CONSULTING *Bank Compensation Consulting (BCC) Rich: Plano, TX | 303-482-1844 See ad pg. 15 *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . 914-656-8643 Young & Associates Inc. Kent, OH . . . . . . . . . 800-525-9775 CORRESPONDENT SERVICES Commerce Bank Kansas City, MO . . . . . . . 800-821-2182 First National Bank of Hutchinson Hutchinson, KS . . . . . . . 800-293-0683 CORE SERVICES Data Center Inc. (DCI) Hutchinson, KS | 620-694-6800 See ad pg. 27 Modern Banking Systems Ralston, NE . . . . . . . . . 800-592-7500 *SHAZAM Bill M. Johnston: IA . . . . . . 515-306-8012 CRA/COMPLIANCE *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . 914-656-8643 CREDIT AND PORTFOLIO RISK MANAGEMENT Young & Associates Inc. Kent, OH . . . . . . . . . 800-525-9775 CREDIT CARD PROGRAM *ICBA Payments Heather: Washington, D.C. 800-242-4770 See ad pg. 22 CREDIT SUPPORT *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . 913-340-7041 DATA ANALYTICS KlariVis Roanoke, VA . . . . . . . . 540-357-0011 *QwickRate Dan: Marietta, GA . . . . . . 800-285-8626 DATA PROCESSING Data Center Inc. (DCI) Hutchinson, KS | 620-694-6800 See ad pg. 27 Modern Banking Systems Ralston, NE . . . . . . . . . 800-592-7500 DEBIT/ATM CARD SERVICES *ICBA Payments Heather: Washington, D.C. 800-242-4770 See ad pg. 22 *SHAZAM Matt M. Johnston: IA . . . . . 515-480-5767 DIGITAL LENDING *BHG Bank Group Tom: Syracuse, NY . . . . . . 315-372-4510 DIGITAL RELATIONSHIP BANKING *Agent IQ Drew: Austin, TX . . . . . . 830-708-9370 DIRECTORS AND OFFICERS INS. *Travelers Danielle: St. Louis, MO . . . . 800-255-5072 *UNICO Group Inc. Diana: Lenexa, KS | 800-755-0048 See ad pg. 28 DIRECTORS EXAMS Allen, Gibbs & Houlik L.C. Wichita, KS . . . . . . . . 316-267-7231 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . 785-537-2202 DISASTER RECOVERY FACILITY PROGRAM *MPA Systems David: Fort Worth, TX . . . . 888-233-1584 DOCUMENT MANAGEMENT *Trust Exchange Leo: Austin, TX . . . . . . . 888-777-8434 EDUCATION *CRA Partners | SHCP Foundation Kristine . . . . . . . . . . 914-656-8643 EMERGENCY FACILITIES/MODULAR BANK BUILDINGS FOR LEASE *MPA Systems David: Fort Worth, TX . . . . 888-233-1584 EMPLOYEE AND EXEC. BENEFITS *Bank Compensation Consulting (BCC) Rich: Plano, TX | 303-482-1844 See ad pg. 15 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . 785-235-5330 ESCROWS Security 1st Title Wichita, KS . . . . . . . . 316-267-8371 FINANCIAL INST. BOND *Travelers Danielle: St. Louis, MO . . . . 800-255-5072 *UNICO Group Inc. Diana: Lenexa, KS | 800-755-0048 See ad pg. 28 HUMAN RESOURCES *UNICO Group Inc. Diana: Lenexa, KS | 800-755-0048 See ad pg. 28 INFORMATION TECHNOLOGY Integris Olathe, KS . . . . . . . . . 325-947-5550 Kansas Bankers Technologies Salina, KS . . . . . . . . . 888-752-8435 RESULTS Technology Overland Park, KS . . . . . . 877-435-8877 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . 785-537-2202 INSURANCE — BANK *Bank Compensation Consulting (BCC) Rich: Plano, TX | 303-482-1844 See ad pg. 15 *Travelers Danielle: St. Louis, MO . . . . 800-255-5072 *UNICO Group Inc. Diana: Lenexa, KS | 800-755-0048 See ad pg. 28 INTEREST RATE RISK SERVICE *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS 913-955-3355 See ad pg. 13 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . 800-422-6442 INTERNAL AUDIT *Advanced Business Solutions (ABS) Sandy: Olathe, KS . . . . . . . . . . . . 913-340-7041 INTERNET BANKING Data Center Inc. (DCI) Hutchinson, KS | 620-694-6800 See ad pg. 27 24 In Touch
*ICBA Payments Heather: Washington, D.C. 800-242-4770 See ad pg. 22 INTERNET WORLD WIDE W.E.B. Oppliger Banking Systems Inc. Lenexa, KS . . . . . . . . . 800-487-7875 INVESTMENTS Central States Capital Markets Kansas City, MO . . . . . . .800-851-6459 Commerce Bank Kansas City, MO . . . . . . . 800-821-2182 *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS 913-955-3355 See ad pg. 13 First Bankers Banc Securities Overland Park, KS . . . . . . 913-469-5400 *ICBA Securities Corporation Jim: Memphis, TN . . . . . . 800-422-6442 IT SECURITY Integris Olathe, KS . . . . . . . . ..325-947-5550 Kansas Bankers Technologies Salina, KS . . . . . . . . . 888-752-8435 *RESULTS Technology Darla: Overland Park, KS . . . 877-435-8877 LEGAL SERVICES Spencer Fane LLP Overland Park, KS . . . . . .800-526-6529 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . 785-235-5333 LENDING *BHG Bank Group Tom: Syracuse, NY . . . . . . 315-372-4510 LOAN COLLECTIONS AND WORKOUTS Spencer Fane LLP Overland Park, KS . . . . . .800-526-6529 Woner, Reeder & Girard P.A. Topeka, KS . . . . . . . . . 785-235-5330 LONG RANGE PLANNING The Capital Corporation LLC Overland Park, KS . . . . . . 913-498-8188 Varney & Associates, CPAs LLC Manhattan, KS . . . . . . . 785-537-2202 MARKETING Harland Clarke Newton, KS . . . . . . . . 800-322-0818 *SHAZAM Johnston, IA . . . . . . . . 515-288-2828 *SJC Marketing Susan: St. Joseph, MO . . . . 816-396-8575 *Works24 Brian: Edmond, OK . . . . . . . . . . 800-460-4653 MERCHANT PROCESSING *SHAZAM Johnston, IA . . . . . . . . 515-288-2828 MERGERS/ACQUISITIONS The Capital Corporation LLC Overland Park, KS . . . . . . 913-498-8188 Olsen Palmer Kansas City, MO . . . . . . . 816-379-4029 Spencer Fane LLP Overland Park, KS . . . . . .800-526-6529 MOBIL CUSTOMER ENGAGEMENT *Agent IQ Drew: Austin, TX . . . . . . 830-708-9370 NETWORK SECURITY Kansas Bankers Technologies Salina, KS . . . . . . . . . 888-752-8435 PAYMENTS *ICBA Payments Heather: Washington, D.C. 800-242-4770 See ad pg. 22 PORTFOLIO MANAGEMENT Central States Capital Markets Kansas City, MO . . . . . . .800-851-6459 *Financial Management Services Inc. (FMSI) Chuck: Overland Park, KS 913-955-3355 See ad pg. 13 PROMOTIONAL PRODUCTS Harland Clarke Newton, KS . . . . . . . . 800-322-0818 RETIREMENT PLANNING Central States Capital Markets Kansas City, MO . . . . . . .800-851-6459 First Bankers Banc Securities Overland Park, KS . . . . . . 913-469-5400 SECONDARY MORTGAGE MARKET LENDING FHLBank Topeka Topeka, KS . . . . . . . . . 800-933-2988 Mortgage Investment Services Shawnee, KS | 913-390-1010 See ad pg. 9 SECURITY MONITORING Federal Protection Springfield, MO . . . . . . .800-299-5400 SUPPLEMENTAL HEALTH INSURANCE *UNICO Group Inc. Diana: Lenexa, KS | 800-755-0048 See ad pg. 28 TECHNOLOGY SERVICES Integris Olathe, KS . . . . . . . . . 325-947-5530 Kansas Bankers Technologies Salina, KS . . . . . . . . . 888-752-8435 *RESULTS Technology Darla: Overland Park, KS . . . 877-435-8877 *QwickRate Dan: Marietta, GA . . . . . . 800-285-8626 *S&P Global Stacy: Charlottesville, VA . . . 434-951-4419 TELECOMMUNICATIONS CONSULTING Verge Network Solutions Inc. Oklahoma City, OK . . . . . 405-782-8400 TELECOMMUNICATIONS SERVICES Verge Network Solutions Inc. Oklahoma City, OK . . . . . 405-782-8400 TELECOMMUNICATIONS SYSTEMS Verge Network Solutions Inc. Oklahoma City, OK . . . . . 405-782-8400 THIRD PARTY COMPLIANCE MANAGEMENT *Trust Exchange Leo: Austin, TX . . . . . . . 888-777-8434 THIRD PARTY RISK MANAGEMENT & CONSULTING *Trust Exchange Leo: Austin, TX . . . . . . . 888-777-8434 TITLE INSURANCE Security 1st Title Wichita, KS . . . . . . . . 316-267-8371 WEBSITE DEVELOPMENT *S&P Global Stacy: Charlottesville, VA . . . 434-951-4419 WHOLESALE LENDING FHLBank Topeka Topeka, KS . . . . . . . . . 800-933-2988 Mortgage Investment Services Shawnee, KS | 913-390-1010 See ad pg. 9 Last Update: April 25, 2024 Visit CBA online at www.cbak.com. 25 In Touch
www.fin-ed.info/cbak Dissecting Beneficial Ownership Access: Regulation & Compliance Guide Accepting Powers of Attorney on Deposit Accounts Consumer First: Regulation E for Debit Cards Analytics to Measure Website & Digital Marketing Activity: A Year into GA4 Developing & Enforcing an Effective Social Media Policy Liquidity Risk Management Consumer Loan Underwriting 101 Accurately Completing the CTR Line-By-Line Hire Right the First Time Troubled Loan Modifications: Evaluating, Tracking & Reporting Check Breach of Warranty Blues Successful Compliance Auditing & Monitoring 3-JUN 4-JUN 5-JUN 6-JUN 1 1 -JUN 12-JUN 13-JUN 18-JUN 20-JUN 25-JUN 26-JUN 27-JUN www.fin-ed.info/cbak x In partnership to grow Kansas’s community banks. BANK TRAINING WEBINARS Live & On-Demand ACH Warranties & Indemnities Identity Theft Red Flags & FACT Act Compliance Real Estate Loan Documentation Basics CIP & CDD: Regulations, Exam Procedures & FAQs Internal Compliance Monitoring & Risk Assessment Wire Transfers: Establishing Strong Internal Controls Reg CC: Check Holds, Check 21, Remote Deposit Capture & Reg D Advertising Compliance Part 1: Text, Print, TV & Radio Contacting Delinquent Borrowers: Following the Spirit & Intent of the FDCPA Commercial Lending: Risks, Rewards, Controls & Common Mistakes Five Vital Financial Factors All Credit Analysts & Lenders Must Master Handling Trusts & Other Fiduciary Accounts Managing Instant Payment Risk & Fraud in the FedNow & RTP Networks 2-JUL 3-JUL 9-JUL 10-JUL 1 1 -JUL 16-JUL 17-JUL 18-JUL 23-JUL 24-JUL 25-JUL 30-JUL 31 -JUL
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