Pub.4 2023 Issue 1

ISSUE 1 2023 Official Publication of the Community Bankers Association of Kansas INNOVATION TRENDS FOR 2023 TOP 5

CONTENTS Issue 1 | cbak.com © 2023 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 of f icial 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. Irv Mitchell Chairman Wilson State Bank Joe Rottinghaus Chairman-Elect Conway Bank Tom Pruitt Secretary/Treasurer Peoples Bank & Trust Company Michele C. (Mickey) Lundy Immediate Past Chairman Tampa State Bank DIRECTORS Josh Bailey Security State Bank Cheri Fahrbach First National Bank of Hutchinson Brandon Lee Union State Bank Jack Rowden Citizens State Bank Kent Culbertson First National Bank and Trust Margaret Nightengale Grant County Bank Jim Wayman ESB Financial STATE ICBA DIRECTORS Tanner Johnson Swedish-American 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 2023 CBA OFFICERS AND DIRECTORS IN EVERY ISSUE: 18 ANNIVERSARIES 23 BANK TRAINING WEBINARS 24 PRODUCTS AND SERVICES REFERENCE LIST 5 FLOURISH By Rebeca Romero Rainey, President and CEO, ICBA 6 INNOVATION STATION: TOP 5 INNOVATION TRENDS FOR 2023 By Charles Potts, Executive Vice President and Innovation Officer, ICBA 8 CBS ENDORSES RESULTS TECHNOLOGY By Shawn Mitchell, President and CEO, CBAK 12 FIXED RATE OR FLOATING? HYBRID ARMS GIVE AN INVESTOR BOTH FEATURES BY Jim Reber, President and CEO, ICBA Securities 14 THE 2023 COMMUNITY BANKERS FOR COMPLIANCE PROGRAM 16 CFPB ISSUES GUIDANCE ABOUT ILLEGAL JUNK FEES ON DEPOSIT ACCOUNTS By William J. Showalter, CRCM, CRP, Senior Consultant; Young & Associates, Inc. 19 NEW ASSOCIATE MEMBER: OLSEN PALMER LLC 21 ICBA CONVENTION 16 3 ISSUE 1 | 2023

» Call Rick Gerber or Ryan Gerber at 1-866-282-3501 or email rickg@chippewavalleybank.com ryang@chippewavalleybank.com 1. Calling us is the first step. 2. You email us the appropriate documents of information. 3. CVB preparing the loan documents generally within 5 to10 days. 4. Meeting the customer. We will come to you to sign loan documents. 5. CVB wires the funds. 6. Wow that was easy. IS YOUR BANK SUFFERING UNREALIZED SECURITY PORTFOLIO LOSSES? ARE YOU IN NEED OF A CAPITAL INJECTION? Bank Stock and Bank Holding Company Stock Loans up to $50 Million Done the Simple Way

BY REBECA ROMERO RAINEY, PRESIDENT AND CEO, ICBA FLOURISH Connect with Rebeca on Twitter @romerorainey. Where I’ll Be this Month I’ll be holding down the fort at ICBA headquarters, helping our government relations team as we welcome new members of Congress and gearing up for ICBA LIVE March 12–16 — register today at icba.org/live. “As we enter a new chapter and start a new financial statement cycle, know that ICBA will be there to support you with tools, resources, and advocacy efforts.” The beginning of a new year feels like a fresh start, a new chapter in our stories. We have a blank page on which we can write our narrative over the course of the year, with new milestones filling the pages ahead. And with 2023, we have no shortage of adventures awaiting us. Consider industry evolution. I’m amazed at the pace of changes occurring in all areas of financial services, from instant payments to more digital solutions and beyond. This will be a pivotal year for embracing new opportunities and exploring how we can set ourselves up to succeed, even with looming challenges. Think about the uncertainty of the economic environment. It’s a challenge to be sure, but it’s one that community banks have previously faced with strength. Time and time again, you have demonstrated resiliency in the face of difficult financial conditions. In fact, this is when community banks shine, bringing stability to customers simply by being relationship bankers who see them and know them. Looking at it through a different lens, there’s opportunity in this economic climate; it's a way to double down on your strengths and unique people-first approaches to banking. T Yet, amid these external influences, you may be asking, “What actions can we take to ensure we’re identifying the right next step for our bank?” That’s where ICBA can provide support. Whether it’s the information that comes in NewsWatch Today or Independent Banker, convening with other community bankers to discuss strategies at ICBA LIVE or proactive engagement with lawmakers at the Capital Summit, we offer opportunities to not just react but to respond to this dynamic environment with your mission and vision at the center. We have increased our offerings to support you and to further differentiate our industry. For example, we have moved the ThinkTECH Accelerator in-house to ensure year-round innovation programming and to find new fintech partners who are bringing market solutions that respond directly to community bank needs. We’re expanding classes and programs provided by Community Banker University, and as the government relations team prepares to welcome new members of Congress to D.C., they are ready and excited to tell your story and ensure your voices are heard. So, as we enter a new chapter and start a new financial statement cycle, know that ICBA will be there to support you with tools, resources, and advocacy efforts. Together, we will write our 2023 story, one that will set up community banks for success.  5 ISSUE 1 | 2023

As we turn the page to a new year, the innovation evolution continues. ICBA is leaning into it, bringing its ThinkTECH Accelerator program and innovation efforts in-house to provide community bankers with targeted solutions tailored to meet their needs. Here at ICBA, we’ve been tossing around a quote from author Courtney C. Stevens’ novel, The Lies About Truth, that captures our ethos heading into 2023: “If nothing changes, nothing changes. If you keep doing what you’re doing, you’re going to keep getting what you’re getting. You want change, make some.” For ICBA and its community bankers, I believe 2023 will continue our industry’s forward momentum as our members position themselves to be the agents of change that find and champion new opportunities. Here are what I believe will be the top five trends and opportunities in the year ahead: 1. Targeted fintech initiatives focused on meeting community bankers' unique needs. Much like we saw some concentrated initiatives in 2020 with the Paycheck Protection Program (PPP) and the CARES Act, 2023 will bring a more granular focus to community banks’ lines of business. Agtech, age tech, payments and financial inclusion are top of mind for ICBA, as well as revenuegenerating opportunities for community banks. 2. Momentum around faster payments, real-time payments and FedNow. Faster and real-time payments activity and deliverables will become tangible and imperative in the year ahead. With the launch of the FedNow Service in 2023, new use cases for faster and real-time payments will continue to emerge, providing community banks with a groundswell of opportunities in this space. 3. Continuing digital transformation. Digital transformation shows no signs of slowing down. In response, ICBA is expanding its digital education programming and resources to ensure community bankers have what they BY CHARLES POTTS, EXECUTIVE VICE PRESIDENT AND INNOVATION OFFICER, ICBA INNOVATION STATION TOP 5 INNOVATION TRENDS FOR 2023 cbak.com 6 In Touch

need to differentiate themselves from the competition and vie for market share. By bringing its innovation initiatives in-house, ICBA will continue to support these efforts, including identifying robust, cuttingedge solutions to solve community bank pain points and meet evolving customer needs. 4. An increase in embedded payment. Embedded finance is expected to increase exponentially over the next few years, opening up new markets and enhancing customer experiences. According to Plaid, a financial services company, embedded financial services will produce $320 billion in revenues in 2025 — a 10-fold increase over the $22.5 billion in 2020 revenues. Expect increased demands from business customers and new revenue-generating opportunities for community banks. 5. The emergence of chief innovation officers or digital strategists. With growing talent demands and the pace of innovation, expect to see the emergence of in-house community bank chief innovation officers and digital strategists. Community banks are investing in these new skill sets, bringing in top talent from other industries, so we expect to see an uptick in this trend in the year ahead. In 2023, community banks must remain agile and focused on making change to secure their place as their customers’ preferred financial partner. As the new year unfolds, we would do well to remember Stevens’ mantra, "If nothing changes, nothing changes."  Charles Potts (charles.potts@icba.org) is ICBA executive vice president and chief innovation officer. 7 ISSUE 1 | 2023

BY SHAWN MITCHELL, PRESIDENT AND CEO, CBAK The mission of Community Bankers Services of Kansas (CBS) is to enhance the profitability of Kansas Community Banks by marketing quality products and services. As part of that mission, the CBS Board of Directors continually researches promising new programs. I wanted to bring to your attention that the Board has selected a new endorsed provider for technology services, RESULTS Technology. RESULTS Technology is a family-owned company that is headquartered in Overland Park, Kansas. They specialize in providing IT infrastructure, compliance, and cybersecurity services to the Community Banking industry in order to help Community Banks reduce risks and achieve operational efficiency. The selection of RESULTS Technology comes after a rigorous vetting process by the CBS Board of Directors that included competition from numerous other IT providers from across the nation. RESULTS’ endorsement was awarded because of their expertise in FFIEC technology compliance and cybersecurity regulations in addition to their dedication to and familiarity with small-town banks. RESULTS Technology is owned by the John French family. John French was the former owner of Bankline, a bank service organization that provided data processing services to the banking industry in the 1980s. Bankline is now part of FIS. RESULTS has also been endorsed by core providers Data Center, Inc. (DCI) and Automated Systems, Inc. (ASI). I personally evaluated RESULTS and came to the conclusion that they are a great fit for our members. Please contact them if you need help with your technology or visit www.resultstechnology.com to learn more. If you have any questions, feel free to email me at shawn@cbak.com  ShawnMitchell CBS ENDORSES RESULTS TECHNOLOGY cbak.com 8 In Touch

IT COMPLIANCE & SECURITY FOR COMMUNITY BANKS Watch our video! www.resultstechnology.com/bank-solutions/ Managed IT Cybersecurity Backup & Business Continuity Audit & Exam Support IT Planning & Budgeting Security Awareness Training RESULTS Technology is a family-owned, award-winning provider of managed IT compliance, infrastructure & cybersecurity services for banks. We have been helping banks reduce risks and achieve operational efficiency for more than 20 years. RESULTS Technology | 12022 Blue Valley Parkway, # 524, Overland Park, Kansas 913.928.8300 | info@resultstechnology.com www.resultstechnology

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FIXED RATE OR FLOATING? HYBRID ARMS GIVE AN INVESTOR BOTH FEATURES What’s your choice for the term of the decade so far (that is, other than COVID-19)? In the last three years, a number of expressions have come into fashion, some of which have been worn out, used out of context, and deemed to be a blight on our vocabulary by linguists. I’m sorry to say these may be around for a while. Here are a few: • Virtual • Social distancing • Pivot • PPP • Zoom (which I’ve noticed has become a verb as well) • Supply chain • Hybrid Let’s stick with “hybrid” for a few minutes. This has gained popularity in several circles. Hybrid cars, powered by both fuel and electricity, now account for over 5% of new vehicle sales, and all major auto manufacturers are ramping up their capacity. Hybrid education programs, which have both in-person and virtual components, are likely to be with us for some time. And, in the investment world, hybrid bonds can offer an attractive risk/reward profile for community banks. Not a ‘20s Innovation Adjustable-rate mortgages (ARMs) have been around since the 1980s, and portfolio managers have coveted these investments that “wrap” the loans into a liquid security. ARM pools backed by Fannie Mae, Freddie Mac, and Ginnie Mae (GNMA) deliver all the normal benefits of mortgage-backed securities (MBSs) and more. In addition to the monthly cash flow, ARMs also can help control interest rate risk for banks that are exposed to rising rates. “In addition to the monthly cash flow, ARMs also can help control interest rate risk for banks that are exposed to rising rates.” BY JIM REBER, PRESIDENT AND CEO, ICBA SECURITIES Endorsed Partner cbak.com 12 In Touch

ICBA Live 2023 ICBA Securities and its exclusive broker Stifel will present several Learning Labs at ICBA LIVE in Honolulu this March. For more information and to register, visit icba.org/live. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks. “For many community banks, fast prepayments are exactly what they want in 2023.” 2020 versions of ARMs are, at least initially, hybrids. This means there is a fixed rate period for between three and 10 years, after which the remaining principal will adjust frequently, either semi-annually or annually. The volume of ARMs that are true floaters right out of the box is so small that the agencies have a hard time pooling them. Also, there are periods in which hybrids are not particularly attractive for community banks, due mostly to (no surprise here) the price levels. I’m pleased to announce that 2023 is a year in which hybrid ARMs are available at market prices that an investor will probably like over the next few years. Borrower Profile Still, the vast majority of new mortgage loans are fixed-rate for the full term, whether 30, 20, 15, or 10 years. Over the last decade or so, only about 6% of new loans are adjustable, and that includes hybrids. So who are these borrowers who are statistical outliers? They really line up into two groups. The first are those who are barely on the cusp of qualifying for conventional (or FHA/VA) financing from a debt-load standpoint. Hybrid ARMs will typically be offered at a lower rate than fixed, as the lender has to incentivize the borrower to accept some interest rate risk. The second group consists of homeowners who expect to be in their homes for a defined, relatively short period of time of ten years or less. These may be soon-to-be empty nesters, or possibly expect to move for employment reasons. If the borrowers do prepay before the first reset date arrives, they’ve saved some interest costs and didn’t expose themselves to higher reset rates. Current Examples Given the profiles and behaviors of the borrowers, the cash flows that hybrids produce are substantial. The loans have fully amortizing 30-year terms, so not a lot of principal is scheduled to amortize initially, but an investor can expect some early activity. Then, as the first reset date approaches, the prepayments speed up even more, sometimes dramatically. Some models predict paydowns of 25% or more annually during the fixed rate window, and even faster in the last few years before the initial reset. For many community banks, fast prepayments are exactly what they want in 2023. Clearly, this was not the case in 2020 and 2021 when banks were drowning in liquidity and interest rates were at record lows. Another piece of good news is that current market prices for these newly-issued hybrids are near par, usually between 100 and 101. This means that significant paydowns won’t have much impact on your yields. Perhaps even better: The inverted yield curve makes the hybrids with the shortest first reset date (weighted average roll, or WAR) the highest yielding, at least until the WAR. For example, a GNMA hybrid with a 36-month roll date, that starts with a full 5% coupon, is currently available at just a slight premium. This significantly out-yields some longer MBS, at least for the next three years. There’s more to the ARMs story that we have time and space for here (e.g., rate caps), but it’s fair to say hybrids are worth a portfolio manager’s look in early 2023. You may decide they’re virtual bargains, and that your security inventory should pivot and take down a supply.  13 ISSUE 1 | 2023

Sponsored by CBA members still receive nearly 60% off the cost of your basic enrollment in Community Bankers for Compliance Program! In recognition of the rapidly changing regulatory landscape, CBA, will be offering 2 new additional services for the coming year. See the full brochure for all the details. THE 2023 COMMUNITY BANKERS FOR COMPLIANCE PROGRAM Check Out the New Enhanced and Extended Levels of the Program. Your Solution for Compliance Challenges is Here. Are you a Member of ICBA, and hold the Community Banker University Compliance Certification? Receive CPE credits for your participation in live events. SAVE 60% Presented by Webinars-Regulatory Update: February 23, 2023 May 11, 2023 September 7, 2023 November 9, 2023 Live Regulatory Seminars: April 18, 2023 Salina, KS October 17, 2023 Salina, KS

“As a CBC Member, I use the 800-number Compliance Hotline and the team is professional while providing quick answers. This is a very practical and useful feature of the CBC program.” Margaret Nightengale, Senior Vice President, Grant County Bank, Ulysses, Kan. “Most of us expect regulation measures to be tighter in the future, and we have to be ready. Using the CBC program helps our bank handle and control our compliance processes efficiently and more cost effectively.” Tim Matlack, President, FNB Washington, Washington, Kan. For additional information, please contact: Yvonna Hansen Vice President of Member Services Phone: (785) 271-1404 E-mail: yvonna@cbak.com cbak.com CBC Basic Program includes: • 2 Live Seminars • Quarterly Regulatory Update Webinars • Monthly Newsletter • Compliance Hotline • CBC Members-Only Web Page CBC Extended Program includes (Level 2): Membership includes all Basic services, PLUS: • Recorded IN DEPTH Quarterly Regulatory Update • Each subject is discussed in much greater detail than can occur in the live presentation • Each subject is in its own mini webinar • Recordings are available for download for 90 days from the date of the live seminar • Recordings are placed in a password protected area of the CBC Enhanced Members Only Web Page. CBC Enhanced Program includes (Level 3): Membership includes all Basic & Level 2 services, PLUS: • Weekly emailed Compliance News Flash Listing all new pronouncements • Guarantees that you will not "miss" something • Includes brief descriptions and potential bank departmental impacts • Includes website addresses for each pronouncement • $200 credit toward the purchase of individual Young & Associates, Inc. compliance products purchased during the program year. • Quarterly Conference Call. The calls will be interactive - all participants will be able to share important information with others. CBC Program Membership includes the following: CBA of Kansas members receive 60% off the enrollment fee! CBA Member Rate: $4,174.25 Annual Program Fee ($3,176.25) Less CBA Member Subsidy $1,198.00 Total CBC Program Fee

CFPB ISSUES GUIDANCE ABOUT ILLEGAL JUNK FEES ON DEPOSIT ACCOUNTS BY WILLIAM J. SHOWALTER, CRCM, CRP, SENIOR CONSULTANT; YOUNG & ASSOCIATES, INC. Associate Member

The Consumer Financial Protection Bureau (CFPB) has issued guidance about two junk fee practices that are likely unfair and unlawful under existing law. The first is surprise overdraft fees, including overdraft fees charged when consumers had enough money in their account to cover a debit charge at the time the bank authorizes it. The second is the practice of indiscriminately charging depositor fees to every person who deposits a check that bounces. The penalty is an unexpected shock to depositors who thought they were increasing their funds. The CFPB states that these overdraft and depositor fees likely violate the Consumer Financial Protection Act prohibition on unfair practices when consumers cannot reasonably avoid them. This Consumer Financial Protection Circular on surprise overdraft fees and the CFPB’s compliance bulletin on surprise depositor fees lay out when a financial institution’s back-end penalties likely break the law. Surprise Overdraft Fees An overdraft fee can become a surprise fee, according to the CFPB, when the customer does not reasonably expect their actions to incur an overdraft fee. For instance, even if a person closely monitors their account balances and carefully manages their spending to avoid overdraft fees, they can easily incur penalties when financial institutions employ processes that are unintelligible or manipulative. This latest Consumer Financial Protection Circular explains that when financial institutions charge surprise overdraft fees, sometimes as much as $36, they may be breaking the law. The circular provides some examples of potentially unlawful surprise overdraft fees, including charging penalties on purchases made with a positive balance. These overdraft fees occur when a bank displays that a customer has sufficient available funds to complete a debit card purchase at the time of the transaction, but the consumer is later charged an overdraft fee. Often, the financial institution relies on complex back-office practices to justify charging the fee. For instance, after the bank allows one debit card transaction when there is sufficient money in the account, it nonetheless charges a fee on that transaction later because of intervening transactions that depleted account funds. In September 2022, the CFPB took action against Regions Bank for charging William J. Showalter can be reached at (330) 678-0524 or wshowalter@younginc.com. Resources Consumer Financial Protection Circular 2022-06, Unanticipated overdraft fee assessment practices, may be downloaded at https://files.consumerfinance.gov/f/documents/ cfpb_unanticipated-overdraft-fee-assessment- practices_circular_2022-10.pdf. CFPB Bulletin 2022-06, Unfair Returned Deposited Item Fee Assessment Practices, is available at https://files.consumerfinance.gov/f/documents/cfpb_returneddeposited-item-fee-assessment-practice_compliancebulletin_2022-10.pdf. More information about the CFPB’s work on junk fees may be found at https://www.consumerfinance.gov/rules-policy/junk-fees/. surprise overdraft fees known as authorized positive fees. As early as 2015, the CFPB, as well as other federal regulators including the Federal Reserve, began cautioning financial institutions against charging certain types of authorized positive fees, such as the ones used by Regions to unlawfully penalize customers. Regions is required to, among other consequences, reimburse consumers all the funds it unlawfully charged since August 2018 (estimated at around $141million) and pay a $50 million penalty. Surprise Depositor Fees When a consumer deposits a check that bounces, banks sometimes charge a fee to the depositor, usually in the range of $10 to $19. However, a person trying to deposit a check has no idea or control over whether the check will clear, and sometimes that person is the victim of check fraud. In fact, there are many reasons deposited checks can bounce, and the most common reason is that the check originator does not have enough money available in their account. Charging a fee to the depositor penalizes the person who could not anticipate the check would bounce while doing nothing to deter the originator from writing bad checks. The CFPB bulletin explains that indiscriminately charging these depositor fees, regardless of circumstances, likely violates the Consumer Financial Protection Act. Financial institutions can generally stay on the right side of the law, according to the CFPB, when they employ more tailored fee policies that charge depositor fees only in situations where a depositor could have avoided the fee, such as when a depositor repeatedly deposits bad checks from the same originator. Junk Fee Initiative The CFPB notes that this Consumer Financial Protection Circular on surprise overdraft fees and the agency’s bulletin on surprise deposited item fees are just the latest announcements as part of its junk fee initiative, one of many efforts across the federal government to increase competition and reduce unnecessary financial burdens on American families. In January 2022, the CFPB launched an initiative to scrutinize back-end junk fees that cost Americans billions of dollars. Tens of thousands of people responded to a CFPB Request for Information with their stories and complaints about unnecessary fees in banking. Since then, the CFPB has taken action to constrain “pay-to-pay” fees and has announced a rulemaking proceeding on credit card late fees. In the last year, the CFPB has also published several research reports on overdraft fees and an analysis of college banking products. The CFPB has observed that financial institutions have started to compete more when it comes to fees. Earlier this year multiple banks announced they were eliminating overdraft fees or updating their policies to be more consumer friendly. And in recent months, multiple large banks announced that they are eliminating non-sufficient fund fees on their checking accounts. The CFPB estimates that these changes mean $3 billion in savings for consumers.  17 ISSUE 1 | 2023

ANNIVERSARIES Congratulations to the banks celebrating January and February anniversaries as chartered institutions! January 152 years First National Bank — Fredonia 147 years Bank of the Flint Hills — Wamego 139 years Citizens State Bank — Cheney 136 years The Bank of Holyrood — Holyrood 119 years Bendena State Bank — Bendena 118 years Gorham State Bank — Gorham 115 years Citizens State Bank of Marysville — Marysville 109 years Cottonwood Valley Bank — Cedar Point 103 years Farmers State Bank — Dwight 100 years First Option Bank — Osawatomie 38 years Heartland Tri-State Bank — Elkhart February 137 years Legacy Bank — Wichita 122 years Denison State Bank — Holton 122 years Tampa State Bank — Tampa 110 years Citizens State Bank — Hugoton

CBA 2023 Annual Convention July 19 - 21, 2023 MARRIOTT, OVERLAND PARK, KS To make your hotel reservations call (800) 228-9290 and remember to mention you are with the CBA room block. The room block consists of single/double hotel guest rooms starting at $149/night. The CBA room block ends June 16, 2023. SAVE DATE! Olsen Palmer LLC is an independent, nationally-recognized investment banking firm that exclusively advises financial institutions across the full spectrum of Mergers & Acquisitions. They combine the extensive M&A expertise of a traditional diversified investment banking firm with the agility, creativity, and responsiveness of a boutique firm. For more information, visit them online at www.olsenpalmer.com or contact Frank Berndt at fberndt@olsenpalmer.com. NEW ASSOCIATE MEMBER Associate Member

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 cbak.com 20 In Touch

MARCH 12-16 REGISTRATION IS OPEN HAWAII HILTON HAWAIIAN VILLAGE ICBA LIVE is your destination for the latest in community bank education and innovation. Network with fellow community bankers, hear from inspiring speakers, and soak up the latest industry insights and fintech solutions. REGISTER TODAY I CBA . ORG/L I VE

CBA EDUCATIONAL Getaway 13 NIGHT GREEK ISLES & ITALY CRUISE August 14 to 27, 2023 Greek Isles & Italy Cruise This is our version of “All-Inclusive at Sea” WHO SHOULD ATTEND? Community Bankers, Directors, Employees, Associate Members, Family and Friends Book Early. Space will sell out quickly! https://www.cbak.com/wp-content/uploads/2022/08/2023-Greek-Isles-Cruise.pdf Visit the QR code for the full brochure

1 - F E B 2 - F E B 7 - F E B 8 - F E B 9 - F E B 1 4 - F E B 1 4 - F E B 1 5 - F E B 2 1 - F E B 2 2 - F E B 2 2 - F E B 2 8 - F E B 1 - M A R 2 - M A R 6 - M A R 7 - M A R 7 - M A R 9 - M A R 1 4 - M A R 1 5 - M A R 2 0 - M A R 2 1 - M A R 2 3 - M A R 2 7 - M A R 2 8 - M A R 2 9 - M A R 3 0 - M A R M o r t g a g e D e f a u l t s : W o r k o u t s , A l t e r n a t i v e s , F o r e c l o s u r e s , S h o r t S a l e s & M o r e R e g u l a t o r y U p d a t e f o r t h e C r e d i t A n a l y s t T o p F i v e M a r k e t i n g T r e n d s f o r 2 0 2 3 & B e y o n d M a s t e r c a r d D e b i t C a r d C h a r g e b a c k s : R u l e s , R i g h t s & C h a l l e n g e s S A R L i n e - b y - L i n e : C o m p l i a n c e & I n s i g h t s C a s h F l o w A n a l y s i s P a r t 2 : D e e p e r A n a l y s i s , B a l a n c e S h e e t & E x t e r n a l F a c t o r s Q u a l i f y i n g B o r r o w e r s U s i n g P e r s o n a l T a x R e t u r n s P a r t 2 : S c h e d u l e s D , E & F B S A f o r F r o n t l i n e S t a f f F i v e R e a s o n s t o P r e p a r e f o r 1 0 7 1 R u l e s : S m a l l B u s i n e s s R e p o r t i n g f o r W o m e n & M i n o r i t y O w n e d B u s i n e s s e s C o m p l i a n c e O f f i c e r s : A d v a n c e d D e p o s i t & C o n s u m e r C o m p l i a n c e T r a i n i n g T D R C o m e b a c k : Q u a l i f i c a t i o n U n d e r C E C L & E n d o f C A R E S A c t B a n k i n g M i l i t a r y P e r s o n n e l : M L A , S C R A & R e c e n t C i t a t i o n s C o m m e r c i a l L o a n s : W o r k o u t s , R e s t r u c t u r i n g & R e d u c i n g L o a n L o s s e s I R A B e n e f i c i a r y D e s i g n a t i o n s & D i s t r i b u t i o n s P a r t A : P r o p e r H a n d l i n g , R e s p o n s i b i l i t i e s & C o m p l i a n c e R T P & F e d N o w F A Q s A g r i c u l t u r a l L e n d i n g B a s i c s E s c r o w E x c e l l e n c e : F r o m L o a n E s t i m a t e t o A n n u a l A n a l y s i s B S A O f f i c e r P a r t 2 : B S A R e p o r t i n g t o t h e B o a r d V i s a D e b i t C a r d C h a r g e b a c k s : R u l e s , R i g h t s & C h a l l e n g e s H a n d l i n g D i f f i c u l t P e o p l e : W a r n i n g S i g n s & E f f e c t i v e T a c t i c s A C H R i s k A s s e s s m e n t s f o r R D F I s & O D F I s S t a n d a r d F l o o d H a z a r d D e t e r m i n a t i o n F o r m L i n e - b y - L i n e S u p e r v i s o r y P r i o r i t i e s 2 0 2 3 2 0 2 3 A C H R u l e s U p d a t e , I n i t i a t i v e s & I n s t a n t P a y m e n t s C & I L e n d i n g f o r C R E L e n d e r s P r o v i s i o n a l C r e d i t U n d e r R e g E : R u l e s , B e s t P r a c t i c e s & F A Q s I R A B e n e f i c i a r y D e s i g n a t i o n s & D i s t r i b u t i o n s P a r t B : S u c c e s s o r B e n e f i c i a r i e s & D e a t h s A f t e r J a n . 1 , 2 0 2 0 x B A N K T R A I N I N G W E B I N A R S Visit fin-ed.info/cbak for over 200 live & on-demand webinars fin-ed.info/cbak 23 ISSUE 1 | 2023

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 *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 ASSET LIABILITY MANAGEMENT *Financial Management Services, Inc. (FMSI) Chuck, Overland Park, KS. . . . .913-955-3355 *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 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 . . . . . . .913-731-6007 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 CONSULTING *Bank Compensation Consulting (BCC) Rich, Plano, TX . . . . . . . .303-482-1844 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 Modern Banking Systems Ralston, NE . . . . . . . . . 800-592-7500 *SHAZAM Bill M. Johnston, IA . . . . . . . . . . . .515-306-8012 CREDIT AND PORTFOLIO RISK MANAGEMENT Young & Associates, Inc. Kent, OH . . . . . . . . . 800-525-9775 CREDIT CARD PROGRAM *ICBA Bancard & TCM Bank Heather, Washington, DC . . . .800-242-4770 CREDIT SUPPORT *Advanced Business Solutions (ABS) Sandy, Olathe, KS . . . . . . .913-731-6007 DATA PROCESSING Data Center, Inc. (DCI) Hutchinson, KS . . . . . . . 620-694-6800 Modern Banking Systems Ralston, NE . . . . . . . . . 800-592-7500 DEBIT/ATM CARD SERVICES *ICBA Bancard/TCM Bank Heather, Washington, DC . . . .800-242-4770 *SHAZAM Matt M. Johnston, IA . . . . . 515-480-5767 DIGITAL LENDING *BHG Bank Group Tom, Syracuse, NY . . . . . . 315-372-4510 DIRECTORS AND OFFICERS INS. *Travelers Danielle, St. Louis, MO . . . . 800-255-5072 *UNICO Group, Inc. Diana, Lenexa, KS . . . . . . 800-755-0048 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 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 Woner, Reeder & Girard, P.A. Topeka, KS . . . . . . . . . 785-235-5330 Products and Services Reference List Each asterisk (*) 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 online at cbak.com. Keep in mind that the services provided by each company on this list 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. 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. cbak.com 24 In Touch

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 HUMAN RESOURCES *UNICO Group, Inc. Kansas City, KS . . . . . . . 800-755-0048 INFORMATION TECHNOLOGY CalTech Olathe, KS . . . . . . . . . 325-947-5550 Computer Services, Inc. (CSI) Paducah, KY . . . . . . . . 800-545-4274 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 *Travelers Danielle, St. Louis, MO . . . . 800-255-5072 *UNICO Group, Inc. Diana, Lenexa, KS . . . . . . 800-755-0048 INTEREST RATE RISK SERVICE *Financial Management Services Inc. (FMSI) Chuck, Overland Park, KS . . . 913-955-3355 *ICBA Securities Corporation Jim, Memphis, TN . . . . . . . . . . . . 800-422-6442 INTERNAL AUDIT *Advanced Business Solutions (ABS) Sandy, Olathe, KS . . . . . . .913-731-6007 INTERNET BANKING Data Center Inc. (DCI) Hutchinson, KS . . . . . . . 620-694-6800 *ICBA Bancard/TCM Bank Heather, Arlington, VA . . . . .800-242-4770 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 First Bankers Banc Securities Overland Park, KS . . . . . . 913-469-5400 *ICBA Securities Corporation Jim, Memphis, TN . . . . . . . . . . . . 800-422-6442 IT SECURITY CalTech Olathe, KS . . . . . . . . . .325-947-5550 Computer Services, Inc. (CSI) Paducah, KY . . . . . . . . 800-545-4274 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 25 ISSUE 1 | 2023

MARKETING Harland Clarke Newton, KS . . . . . . . . 800-322-0818 *SHAZAM Johnston, IA . . . . . . . . . 515-288-2828 *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 Washington, D.C. . . . . . . 703-969-4754 Spencer Fane, LLP Overland Park, KS . . . . . . 800-526-6529 NETWORK SECURITY Kansas Bankers Technologies Salina, KS . . . . . . . . . .888-752-8435 PAYMENTS *ICBA Bancard Heather, Washington, DC . . . .800-242-4770 PORTFOLIO MANAGEMENT Central States Capital Markets Kansas City, MO . . . . . . . 800-851-6459 *Financial Management Services, Inc. (FMSI) Chuck, Overland Park, KS . . . 913-955-3355 Products and Services Reference List 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 SECURITY MONITORING Federal Protection Springfield, MO . . . . . . . 800-299-5400 SUPPLEMENTAL HEALTH INSURANCE *UNICO Group, Inc. Diana, Lenexa, KS . . . . . . 800-755-0048 TECHNOLOGY SERVICES CalTech Olathe, KS . . . . . . . . . 325-947-5530 Computer Services, Inc. (CSI) Paducah, KY . . . . . . . . 800-545-4274 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 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 ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: in-touch.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. cbak.com 26 In Touch

Happy New Yield. Tom Badolato SVP, Institutional Relationships 315.372.4510 thomas@bhg-inc.com BHGLoanHub.com/KBAEV Scan to LEARN MORE Since May of 2015 when our relationship first started, BHG Financial has been a valued partner for McClain Bank as they have provided us with an attractive option of purchasing C & I loans for our Loan / Investment portfolio that normally a bank our size would not have the opportunity to originate in-house. Kelly Nemecek SVP, McClain Bank, OK Testimonial(s) based on unique customer experience. Individual customer experiences may vary. Earn 7.5%+ Start your New Year with a strong pipeline of top-quality professional loans from BHG. Take advantage of recordhigh spreads, paired with the unmatched credit quality of BHG loans, backed by 20+ years of credit experience and analytics. Discover the income opportunities we bring to our 1,500+ network banks daily!

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