OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION Bank Leaders of Kansas Class MARCH/APRIL ISSUE 2 2023 Photo Credit: Elizabeth Walker, Capitol Federal Savings Bank, Topeka
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Executive Doug Wareham, President and CEO Kathy Taylor, EVP, General Counsel Terri D. Thomas, EVP, COO Administration Alex Orel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Mary Taylor, SVP, Director of Communications & Marketing Julie Taylor, VP, Computer and Information Systems Sara Blubaugh, VP, Executive Assistant to the President and CEO Tommy Powell, KBEF/Robbins Banking Institute Director Bree Magee, Communications & Marketing Manager, YBOK Division Manager Education and Conferences Brenda L. Unruh, SVP, Director, Education & Conferences/ Strategic Partnerships Becky Milne, VP, Assistant Director Education & Conferences LeAnn Mott, VP, Education & Conferences Natalie Wareham, Events Manager J.W. Wells, Ag & Trust Division Manager Alana Seelbach, Receptionist/Special Projects Insurance Alex Greig, President, KBA Insurance, Inc. Kent Owens, SVP, KBA Insurance, Inc. Elizabeth Roche, SVP, Employee Benefits Administration Jenny Figge, SVP, Operations Cari Charter, AVP, KBA Insurance, Inc. Cole Thompson, Accounts Manager Legal/Compliance Jackie Kuhn, JD, VP, Staff Attorney Gwen Hill, JD, VP, Staff Attorney Allison Carpenter, JD, VP, Legal Dept. Manager Dylan Serrault, JD, VP, CFBS Manager Bobby Young, JD, VP, Staff Attorney Adeel Syed, JD, VP, Staff Attorney Kelly VanZwoll, JD, VP, Staff Attorney & Gov’t Relations Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kerry Clark, JD, Staff Attorney & Publications Editor Lewis Walton, JD, Compliance Specialist/Auditor Erica Friedt, Compliance Operations Specialist Nathan Stumme, Compliance Operations Specialist Heather Williams, Compliance Operations Specialist/Auditor Meridith DeForest, Administrative Legal Assistant Sarah Lynch-Chaput, Legal Intern Gabe Walker, Legal Intern Miaeda Hutchinson, Legal Intern Tom Thomsen, Legal Intern © 2023 Kansas Bankers Association | The newsLINK Group, LLC. All rights reserved. The Kansas Banker is published six times each year by The newsLINK Group, LLC for the KBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Kansas Bankers Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Kansas Banker is a collective work, and as such, some articles are submitted by authors who are independent of the Kansas Bankers Association. While the The Kansas Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 6 Washington Update: Meeting in the Middle(ware) Rob Nichols, President and CEO, American Bankers Association 8 2023 Bank Leaders of Kansas Class Convenes for Session 1 10 Harold A. Stones Government Relations Conference 14 2023 Kansas Ag Bankers Conference 18 Slip, Trip and Fall Prevention By Travelers Insurance 21 Photo Contest 22 Briefly in Kansas Banking 24 In Memory 26 2023 Bank Technology and Operations Conference and Showcase 28 Save the Date: 2023 CEO & Senior Management Summit & Annual Meeting 29 Be the Chatbot By Alex Greig, President, KBA Insurance, Inc. 30 If Ever There Was a Need For Crisis Management Marketing, This Is It By Neal Reynolds, President, BankMarketingCenter.com 32 Using IT Governance to Achieve Your Bank’s Business Goals By Mike Gilmore, Chief Compliance Officer, RESULTS Technology 34 Corporate Transparency Act By Murphy Ray Jr., FORVIS 36 What the MIP Cut Means to MBS Investors By Andrea F. Pringle, Financial Strategist and MBS Analyst, The Baker Group 38 Education Calendar
WASHIINGTON UPDATE or community banks seeking to remain competitive in today’s crowded financial services marketplace, innovation is imperative. A relationship with a core provider can make or break an institution’s innovation goals, and for too many community banks, legacy core technologies are holding them back. This is a critical challenge that ABA set out to solve through its Core Platforms Committee, which was founded in 2018 to engage the top players in core processing and to help break down the barriers that impede banks’ ability to offer customers the products and services they want. Since the committee was founded, we have improved the lines of communication with the core providers, and we remain optimistic about the commitments we’ve received from many of these firms to improve in this area. But for many banks, innovation remains a struggle. In fact, it’s estimated that more than two in five U.S. banks are still running core banking processes on legacy systems that were designed nearly four decades ago. In a recent ABA survey, 42% of bankers expressed dissatisfaction with the service they receive from their core provider, identifying several pain points including a limited ability to customize offerings and subpar integration capabilities with other technologies. However, undergoing a complete core conversion is a massive undertaking that comes with significant costs, complexities and risks, and many banks are understandably hesitant to abandon their longtime core provider. So how can community banks bridge the gap? One possible alternative to a “rip and replace” strategy is to employ the use of middleware — a solution that leaves existing core systems in place, while wrapping the core with a new layer of technology, typically an API architecture. This architecture enables banks to reduce reliance on their legacy core to deliver products faster; collect, maintain and use customer data more effectively; and foster partnerships with fintech companies. It’s a strategy that can considerably reduce the timeline for bringing new products and services to the market while reducing reliance on a legacy core system. ABA’s Office of Innovation highlights the case for middleware in a newly released whitepaper, “Exploring Banking Middleware Solutions.” The paper provides an in-depth look at how banks can benefit from incorporating a F By Rob Nichols, President and CEO, American Bankers Association MEETING IN THE 6
MIDDLE(WARE) middleware layer into their core systems and gives a snapshot of the middleware vendor landscape in the U.S., as well as considerations banks should take into account when engaging with a middleware vendor. I urge you to read the whitepaper, which you can access at https://aba.com/middleware, and check out the other resources the Core Platforms Committee has made available at https://www.aba.com/core. ABA is deeply committed to helping its member banks succeed — regardless of where they are in their innovation journey. Our Office of Innovation works exhaustively to stay on top of the latest trends, connect banks with strategic partners and pave the way for responsible innovation policy in Congress and at the regulatory agencies. Successful innovation is key to the preservation of the broad and diverse community banking sector that makes our nation’s financial services industry the envy of the world. Email Rob at nichols@aba.com. Successful innovation is key to the preservation of the broad and diverse community banking sector that makes our nation’s financial services industry the envy of the world. 7
KBA started the Bank Leaders of Kansas (BLOK) program in 2006 with a vision of developing Kansas bankers and exposing them to a wide range of topics that influence the industry while building a collaborative networking community. The 17th BLOK class convened for their first session in Topeka at the KBA Office on Feb. 7, 2023. This year’s class is comprised of: 2023 Bank Leaders of Kansas Class Convenes for Session 1 Amy Barber Trust Fiduciary & Compliance Manager Central National Bank, Topeka Crystal Boyer Treasury Banking Analyst First Interstate Bank, Shawnee Kelsey Burdiek Assistant Vice President United Bank & Trust, Seneca Jen Cocking Vice President, Assistant General Counsel Capitol Federal Savings Bank, Topeka Dena Flach Vice President/Loan Officer Stockgrowers State Bank, Maple Hill Alex Goodpaster Vice President, Commercial Lending Equity Bank, Overland Park Mike Hamilton EVP — Ag Banking Adams Bank & Trust, Colby Victoria Hamilton Officer & Financial Center Manager First National Bank of Hutchinson, Hutchinson Kristie Henry Controller Community National Bank, Seneca Dustin Hickel Managing Director — Commercial Real Estate Lending INTRUST Bank, N.A., Prairie Village Brett Hubka Community Bank President GNBank, N.A., Clay Center Sarah Keeny Moon Accounting Analyst Citizens Bank of Kansas, Derby Carl Keith Regional President Solutions North Bank, Hill City Garet King Vice President Fusion Bank, Overland Park Matt Koupal SVP, Chief Legal and Ethics Officer, Corporate Secretary FHLBank Topeka, Topeka James Leftwich Sales Representative Security 1st Title, LLC, Wichita Katrina Loader SVP Chief Retail Officer & BSA Officer Astra Bank, Abilene Rex Reynolds Executive Vice President Legacy Bank, Wichita Elizabeth Roche SVP — Employee Benefits Kansas Bankers Association, Topeka Justin Sparks EVP — Chief Credit Officer Bankers' Bank of Kansas, Wichita Adeel Syed VP — Staff Attorney Kansas Bankers Association, Topeka 8
2023 BLOK Sponsors INTRUST Bank, N.A. FHLBank Topeka KBA Insurance, Inc. Professional Bank Consultants, LLC Bankers’ Bank of Kansas Deputy Bank Commissioner Tim Kemp (right, standing) and members of his team gave the BLOK Class an overview of the Office of the State Bank Commissioner. After an overview of the program by KBA’s SVP — Government Relations Alex Orel, the class got to know each other during an ice-breaker exercise where many laughs and personal stories were shared. Next, a complete summary of the history, structure, and governance of the KBA was outlined followed by staff spotlights, allowing senior management to share their roles and areas of expertise and how each department at the KBA can assist them and their banks. The BLOK class then enjoyed dinner and more time to get acquainted with the KBA staff. Day two focused on state advocacy and began with an interactive presentation on the legislative process led by Orel and KBA AVP — Government Relations Kelly VanZwoll. The BLOK class then participated in the KBA Harold A. Stones Government Relations Conference, followed by a legislative reception at the Topeka Country Club. The third day of Session 1 started with the class networking with KBA Board members and sitting in on the first hour of the board meeting. The class then transitioned to downtown Topeka to hear from Deputy Bank Commissioner Tim Kemp about the role of the Office of the State Bank Commissioner as our state financial institutions regulator. The class was then treated to a legislative panel in a Statehouse committee room. The panel featured Senate Financial Institutions and Insurance Committee Chair Sen. Jeff Longbine; House Appropriations Chair Rep. Troy Waymaster; House Financial Institutions & Pensions Committee Chair Rep. Nick Hoheisel; and House Financial Institutions & Pensions Committee Member Rep. Rebecca Schmoe. Following the legislative panel, the group received a behind-the-scenes tour of the Capitol building, including a tour of the House chamber by Speaker of the House Dan Hawkins. During the visit to the Senate chamber, Senator Longbine recognized the class during the Senate’s general session. The 2023 BLOK Class will have their second session in Kansas City on May 24–26. Kelsey Burdiek, United Bank & Trust, Seneca, (left) and James Leftwich, Security 1st Title, Wichita, share a laugh as the class breaks the ice. Garet King, Fusion Bank, Overland Park, (right) demonstrated how a bill becomes a law in an exercise facilitated by KBA’s SVP Government Relations, Alex Orel. 9
he rebranded Harold A. Stones Government Relations Conference (formerly called Public Affairs Conference) concluded on Wednesday, February 8 at the Topeka Country Club and had record high attendance! More than 150 Kansas bankers convened in Topeka to hear and talk about state and federal legislative and regulatory policy affecting the banking industry. The conference started with a welcome and an update from KBA Board Chairman Shan Hanes, Heartland Tri-State Bank in Elkhart. It was followed by KBA President & CEO Doug Wareham and KBA SVP–Government Relations Alex Orel, who took a deep look at both state and federal issues the industry is working on. Other highlights included the Legislative Leadership Panel, the 2022 Bank Leaders of Kansas (BLOK) Class Graduation, and the introduction of the 2023 BLOK Class. In the afternoon, attendees received a Federal Issues Update from the ABA, plus a Regulatory Update that included the OCC, FDIC, and Federal Reserve. Wichita State Economist Jeremy Hill gave an economic update, and newly elected Kansas State Treasurer Steven Johnson closed the conference out before the annual legislative reception, where more than 100 Kansas lawmakers and special guests attended to network and hear directly from Kansas bankers. Thank you to all those who made the trip to Topeka, and we look forward to seeing you again next year on Feb. 7, 2024! Harold A. Stones Government Relations Conference T Legislative Leadership Panel Senate President Ty Masterson, Senate Minority Leader Dinah Sykes, Speaker of the House Dan Hawkins, and House Minority Leader Vic Miller participated on a panel moderated by KBA AVP–Government Relations & Staff Attorney Kelly VanZwoll. Legislative leaders talked about state issues impacting the Kansas economy and the banking industry. They covered various topics, including taxes, water, medical marijuana, and Environmental, Social, and Governance (ESG). 2022 BLOK Graduation & 2023 BLOK Class Introduction Congratulations to the 2022 BLOK class! These bank leaders completed the four-session BLOK program and now head back to their banks with a better understanding of: 1. The structure and governance of the KBA; 2. The state and federal legislative process; 3. The variety of state and federal agencies that govern the banking sector; and 4. The importance of their role as a volunteer KBA leader. And a big welcome to the 2023 BLOK class. Your journey has just begun! 10
3 Federal Legislative Update Ed Elfmann, SVP of Agriculture and Rural Banking Policy at American Bankers Association, participated on a panel with KBA Board Chairman Shan Hanes, Heartland Tri-State Bank in Elkhart, with KBA President & CEO Doug Wareham to discuss hot topics in Washington D.C., including Access to Credit for our Rural Economy (ACRE) that will lower interest rates for farmers and ranchers on agricultural real estate and rural housing loans! Regulatory Update Kathy Taylor, KBA EVP–General Counsel, and Kent Buer, President & CEO of First Bank Kansas, led a regulatory panel with representatives from the OCC, FDIC and Federal Reserve. They answered questions about inflationary pressures, fair lending, climate risk, and crypto-asset risk for bankers. State Treasurer's Report Kansas State Treasurer Steven Johnson closed out the Harold A. Stones Government Relations Conference. He gave an update on his office's priorities, the status of KPERs, and potential Environmental, Social, and Governance (ESG) legislation impacting the banking industry. 11
Government Relations Conference and Legislative Reception Photos (L-R) Kent Buer, First Bank Kansas, Salina; Calvin Coady, Bankers’ Bank of Kansas, Wichita; and Mike Beck, KS StateBank, Leawood. (L-R) Seth MacKinney, Legislative Assistant for Sen. Jerry Moran, and Derek Bailey, Central Bank of the Midwest, Lawrence. (L-R) Representative Doug Blex, District 12 and Jay Meyer, Centera Bank, Sublette. (L-R) Earl McVicker, Central Financial Corporation, Hutchinson; Harold A. Stones, Topeka; and Quintin Ostrom, Security Bank of Kansas City, Overland Park. ABA’s SVP of Agriculture & Rural Banking Policy Ed Elfmann (center) highlighted the rebranded Access to Credit for Rural America (ACRE) Act during his address. Also pictured L to R: Leonard Wolfe, Shan Hanes, Kyle Campbell and Doug Wareham. (L-R) Mike Ewy, Community State Bank, Coffeyville and Representative Ron Bryce, District 11. 12
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his year’s 2023 Kansas Ag Bankers Conference had an exceptional lineup of presenters, 290 attendees, and 19 tradeshow sponsors in attendance. Dr. David Kohl kicked off the conference with the Business and Economic Outlook, a discussion of how 2023 could be best described as a transitional year as we move from the black swan pandemic with adaptive business and personal life strategies to position ourselves to navigate the world of uncertainty and chaos. Next up, Ed Elfmann, SVP of Agriculture and Rural Policy at the American Bankers Association, shared the Federal Ag Policy update along with President & CEO Doug Wareham. Elfmann provided a preview of the 2023 Farm Bill debate and highlighted other federal issues that could impact Kansas bankers in the coming year. Elfmann shared that two of ABA’s top legislative priorities are the Access to Credit for our Rural Economies (ACRE) Act, which is designed to trigger more competitive interest rates for ag real estate and rural housing loans, and the Secure and Fair Enforcement (SAFE) Act, which would enable banks to provide banking services to legitimate cannabis-related businesses. Jason Henderson, Purdue University, presented “Easy to Print Money, Hard to Undo: What’s the Impact on US Agriculture?” Jason Henderson believes the value of the dollar vs. other currencies might make U.S. ag assets like farmland even more attractive to foreign buyers. Keep an eye on this one as these trends unfold. 2023 Kansas Ag Bankers Conference T “Putin, Russia and Ukraine” was presented by James Olson, Former CIA Chief of Counterintelligence and Faculty of the Bush School of Government and Public Service at Texas A&M University. James Olson talked about life as a spy, espionage threats and the potential fallout of the war in Ukraine. He had a 31-year career with the CIA, including a tour in Moscow. Randy Blach from CattleFax, presented “Livestock and Protein Situation and Outlook” which shared that prices and profitability will again favor cattle producers in 2023. The cattle industry is entering 2023 with the smallest cattle supply since 2015 as drought caused the industry to dig deeper into the supply of feeder cattle and calves. “Ag Market Update, What Gear to Use in 2023?” was presented by Paul Mussman, AgWest Commodities, who gave an ag market update on Thursday morning. Paul stated that ag marketing is becoming more and more difficult for producers as the world evolves. Higher volatility and large annual swings can make even the best decisions feel wrong. The 2023 Pioneer Award was given to Leonard Wolfe, United Bank & Trust in Marysville. KAB Division President David White praised Wolfe for his leadership and dedication to advancing policies that have strengthened the ability of community banks to thrive and better serve their ag and rural customers. Congratulations, Leonard! Eric Snodgrass, Nutrien Ag Solutions, closed out the conference with “High Impact Weather”. He covered how disasters and their effects are impacting the agricultural industry. Droughts, floods, freezes, severe storms, wildfires and winter storms all play a role in the ag market. Dr. David Kohl, Professor Emeritus, Virginia Tech, AgriVisions Solutions, LLC, presented a Business and Economic Outlook. Congratulations to Leonard Wolfe, United Bank & Trust, Marysville, for winning the 2023 Pioneer Award! 14
Ed Elfmann, SVP of Agriculture and Rural Policy at the American Bankers Association, and Doug Wareham, President & CEO of KBA discuss banking priorities in the 2023 Farm Bill. Based upon surveys of farmers, many of them see trouble ahead in 2023, with most predicting crop input prices will be up and crop prices will be flat to down according to Dr. Jason Henderson, Purdue University. According to James Olson, former CIA Chief of Counterintelligence, Putin had reportedly expected to conquer Ukraine in three days’ time in February 2022. Randy Blach, CattleFax, discussed that in prime cattle feeding areas there’s concerns about the corn basis, and he questions whether or not these high prices will ever go away. Paul Mussman, AgWest Commodities, feels given strong levels of farm income in 2022, the sector, as a whole is expected to see above average levels of farm income in 2023 and is well positioned to handle some turbulence though the year. Eric Snodgrass, Nutrien Ag Solutions shared for many people, weather is the ultimate small-talk topic. But for the farmers who feed the world, weather is huge – it can be the difference between a bumper crop and a total loss – so weather talk is anything but small. 15
Kansas Ag Bankers Conference Tradeshow Pictures 16
Education is the foundation of performance for investment portfolio managers. This is the reason The Baker Group continues to bring our history of educational experience to a bond school designed specifically for new portfolio managers and those needing to learn the fundamentals of fixed income investing. The Baker Bond School will give attendees the knowledge to better understand the various types of securities available, how to analyze them effectively, and how to use that knowledge to build and manage a highperformance investment portfolio within the framework of the entire balance sheet. What You Will Learn • Fundamentals of bonds and bond market investing • Understanding the impact of the economy, monetary policy, and interest rates on the bond portfolio • Demystifying the complex world of bond analytics including pricing, duration, convexity, and total return • Characteristics of high performance portfolios and how industry allocations have changed over the years • Introduction to bond types, and the pros and cons of including each in your investment portfolio • How to develop an effective municipal credit analysis process The Baker Group pioneered asset/liability management (ALM) more than forty years ago when we developed the first computer based ALM program designed specifically for community banks in 1979. Since then, we have spent four decades educating financial institutions how to effectively use ALM strategies to manage risk and maximize performance. The Baker Group has developed an Asset/Liability Management School designed specifically for members of the ALCO and those needing to learn the fundamentals of ALM. The Baker ALM School will give attendees the knowledge to better understand the “who, what, why, and how” of ALM and the ALCO process. What You Will Learn • Fundamentals of asset/liability management including what it is and why we do it • Understanding the impact of the economy, monetary policy, and interest rates on the earnings and capital of the institution • Regulatory expectations to ensure you are always in compliance with the latest guidance and prepared for your next exam • Practical methodologies and recommendations for how to develop assumptions that are institution specific and regularly reviewed, stress-tested, and back-tested Baker Schools Great Educational Opportunities 2 August 8-9, 2023 Oklahoma City, OK Omni Oklahoma City Hotel Cost: $495 Baker ALM School Baker Bond School May 10-11, 2023 Oklahoma City, OK Omni Oklahoma City Hotel Cost: $495 12.5 hours of CPE credits will be earned for your attendance. 10 hours of CPE credits will be earned for your attendance. For more information and to register, go to GoBaker.com/alm-school-2023. For more information and to register, go to GoBaker.com/bond-school-2023. Who Should Attend These schools are designed for presidents, CEOs, CFOs, and members of the ALCO committee. Directors and anyone else involved in the asset/liability management process will also benefit from The Baker Group schools. Member: FINRA and SIPC www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Dallas, TX | Houston, TX Indianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL
Slip, Trip and Fall Prevention By Travelers Insurance ccording to the National Safety Council, slips, trips and falls are the third leading cause of injury in the workplace. Some of these incidents occur at banks with employees or customers. While these mishaps might be commonplace, there is a proactive approach banks can take to help reduce the risk of their employees and customers being injured in a slip, trip and fall. A smart place to start: analyze both the physical conditions of the premises and usage and traffic flow patterns, which can often identify potential hazards that should be addressed. Some of the accident causes are well known: wet spots on floors, uneven walking surfaces, and dirty doormats. Other factors, such as poor lighting, might not be as noticeable but can be equally dangerous. “Banks should be aware of the potential for people falling and getting injured, and should take steps to ensure the premises are as safe as possible,” said Laura Lundin, Vice President of Financial Institutions P&C at Travelers. “There are many ways to do this — maintain clean floor surfaces, ensure the space is well lit, schedule regular maintenance during low traffic times and conduct periodic walkthroughs to confirm everything looks safe. A little attention can go a long way.” Working with an insurance carrier is also recommended. Insurance providers can work with banks to: • Help identify and assess exposures; • Develop loss control strategies and improvements to A minimize the frequency and severity of slip, trip and fall incidents; and • Provide training to help with slip, trip and fall prevention efforts. If an accident does take place, be sure that it is documented and reported. This information can help prevent future incidents and may be essential if a claim is filed against the bank. A standard, printed incident report is helpful in ensuring that all details are recorded. Documenting the details of the incident, collecting the names and a brief statement from the injured party and any witnesses, even taking photographs of the incident site can help. Slips, trips and falls rarely “just happen.” Implementing effective slip, trip and fall improvements requires the right tools, people and communications. The right insurance carrier can help your slip, trip and fall prevention team define and document the policies, procedures, roles and responsibilities needed to effectively reduce these incidents. They also can help your team develop the tools and communication materials needed to implement this process. Travelers is committed to managing and mitigating risks and exposures and does so backed by financial stability and a dedicated team — from underwriters to claim professionals — whose mission is to insure and protect a company’s assets. For more information, visit www.travelers.com. 18
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PHOTO CONTEST KANSAS BANKERS ASSOCIATION ANNUAL SCENES of KANSAS CALENDAR CALL FOR PHOTOS WHO CAN ENTER: Bank employees, executives, directors, and their immediate families are encouraged to send in their favorite horizontal photos of Kansas. Prizes awarded for first, second and third place. The Kansas Bankers Association is creating its biggest annual Scenes of Kansas Calendar, and we need your help capturing the unique side of Kansas. We want your horizontal photos of the state’s rolling landscapes, rich seasons, colorful community events, expressive faces and more. If selected, your photo(s) will be published in KBA’s 2024 Scenes of Kansas Calendar and seen by thousands across the state. While we only have room for a limited number of photos in the calendar, your pictures could also appear in an upcoming issue of The Kansas Banker. ENTRY DEADLINE: MAY 26 HOW TO ENTER: • With the information form below, e-mail high-resolution digital photo files (300 dpi at 5"x7” minimum in JPEG format) to: Julie Taylor at jtaylor@ksbankers.com. Or with a printed copy of this form, mail in either a CD that contains highresolution digital files or professional prints. Digital photos are preferred. SPECIAL NOTE: Photographs taken with cell phones typically only have a 72 or 96 dpi and therefore do not meet the requirement required for submission. • To enter multiple photos, complete multiple entry forms electronically at www.ksbankers.com, located under Publications, Scenes of Kansas Calendars. Type your entry information directly onto the PDF and print. (Note: Unless you have Adobe Acrobat Professional, you may not be able to save the completed form.) • All entries must have been taken by bank employees, executives, directors, or their family members. • Entrants will be limited to five (5) entries of their favorite horizontal photos, and each must be original, untouched photos taken between June 1, 2022, and May 26, 2023. • Entry deadline: May 26, 2023. • Prizes will be awarded for the top three entries: $250 for first place, $125 for second place and $75 for third place. You will be notified by the end of July if your photo has been chosen and was a first, second or third-place winner. • Entered photos may be used to promote the Scenes of Kansas Calendar, featured in The Kansas Banker magazine or displayed at KBA events. By entering the contest, you consent to these uses. • CDs will not be returned. Prints will not be returned unless requested. • Contact Julie Taylor at 785-232-3444 or jtaylor@ksbankers.com with questions. 2024 Scenes of Kansas Calendar Photo Contest Entry Form Bank Employee Bank/City Home Address Home City, State, Zip Phone Photo taken by Relationship to employee (Spouse, Son, Daughter, Mom, Dad, Sibling, etc.) Photo of Location and month taken Email Mail/email entries to: Julie Taylor | Kansas Bankers Association | PO Box 4407 Topeka, KS 66604 | jtaylor@ksbankers.com Background photo taken by Kelsi Furnish, First National Bank, Louisburg
BRIEFLY IN KANSAS BANKING Kansas Chamber Announces 2023 Ad Astra Award Honoree The Kansas Chamber announced INTRUST Bank is the Chamber’s 2023 Ad Astra Award honoree. Each year during the Chamber’s annual dinner, it and its members recognize a Kansas company with the Ad Astra Award. The award identifies a Kansas business for its unique contributions to the economic health and welfare of the state. This honor is presented to a business that exemplifies both business and civic excellence within the state. “For more than 145 years, INTRUST Bank and its employees have focused on advancing the enterprising spirit of Kansas,” said Chamber President and CEO Alan Cobb. “The bank’s ‘Tradition For Today’ philosophy underscores its commitment to innovation, service, and community involvement, leading it to become one of our state’s largest banks headquartered in Kansas.” White Elected to FHL Bank Board Lance L. White, Wamego, has been elected to the board of directors of the Federal Home Loan Bank of Topeka — a wholesale bank that serves as a source of credit for member financial institutions in Colorado, Kansas, Nebraska, and Oklahoma. White will serve on the Operations and Risk Oversight committees. White has served as President and CEO of Bank of the Flint Hills since 2007, George Karnaze Receives 50 Year Club Award George Karnaze retired in January from First National Bank in Louisburg. He has been in banking for 53 years — since 1970! He’s held positions as Cashier, V.P./Cashier, Senior V.P., President, Board Director, and Vice Chairman. He continues to serve as Chairman after his retirement. George’s wife, Etta, was employed at FNB KC and worked in the same department with him. They have been married for 47 years. They have two children, Chris and Kelly, and one grandchild, Emma. Congrats, George! Vickie Logiudici, GNBank in Girard, Receives 50 Year Club Award Congratulations to Vickie Logiudici for her 50 years in banking! Vickie began her banking career in 1971 at The Girard National Bank in Girard as a Teller/Operations. From 1981 to 2005, Vickie was the Teller/Operations at The First State Bank of Arma in Arma, KS. From 2005 to 2016, she worked at the University Bank in Pittsburg, KS, as a Teller/Customer Service. Vickie finished out her banking career from 2016 to 2022 as a Teller/ Customer Service at GNBank in Girard. Vickie was presented with a 50 Years in Banking Award plaque by Mark Schifferdecker, GNBank President and CEO, and Ken Bloom, Community Bank President. 22
where he had previously served as a loan officer since 2000. He began his banking career at Commerce Bank in Kansas City, MO, in 1997. White served as a committee member of the Community Depository Institutions Advisory Council for the Federal Reserve in Kansas City from 2017 to 2019, a board member for Ascension Health from 2001-2018, and a board member of the Wamego Chamber of Commerce from 2003-2012. GSBWisconsin's Dunn Has a New Job Title First-year students attending the Graduate School of Banking at the University of Wisconsin-Madison have annually been greeted at check-in by Erin Dunn of the GSB staff. She makes a point each year of welcoming every incoming student when they arrive in Madison. Dunn, who joined GSB in June 2014 and works closely with incoming students ahead of the Graduate School of Banking program, also often serves as a first point of contact for bankers inquiring about GSB online seminars and other programs. She also works closely with GSB’s Vice President, marketing and communications, to assist with targeted marketing projects including database queries, proofing content and creative support. In keeping with the nature of her role, Dunn’s position title — formerly Administrative Assistant — was changed on Jan. 1, 2023, to Student Engagement and Outreach Coordinator. BankBeat Magazine Names Michael Felts Amazing Outside Director Michael Felts, a businessman who — until recently — operated a string of convenience stores across rural Kansas, had already served on the board of Citizens Bank of Kansas for a decade when the unthinkable happened: the man who’d recruited him, longtime owner and Board Chair Max Deterding, died unexpectedly. Deterding had been a larger-than-life figure in Kansas banking. Yet, as he built up his family’s community bank network, Deterding kept many of its most critical credit decisions on a “need-to-know basis,” explained his daughter, Jane Deterding, Chair and Chief Strategic Marketing Officer. Max Deterding was the “ultimate credit cop,” she explained. “Someone who regulators held in the highest regard.” But with Deterding suddenly gone, examiners from the Office of the Comptroller of the Currency placed the institution under a memorandum, requiring it to formalize its credit policies. So while family members, leadership and rankand-file employees grieved, they also had to roll up their sleeves and write loan policies, develop lending structures, form committees and submit lengthy quarterly reports on their progress. Felts was an integral part of that process, and he has served on the bank’s loan committee ever since. For this and his other contributions to the board, he has been named a BankBeat magazine 2023 “Amazing Outside Director.” Citizens Bank of Kansas Receives Scholarship The 2023 Graduate School of Banking at Colorado + Kansas Bankers Association Bolder Banking Scholarship has been awarded to Citizens Bank of Kansas. They were specifically chosen for their innovative Derby High School Finance Project. CBK has selected the bank’s Chief Development Officer/SVP Stacy Gear to attend GSBC’s Annual School Session. Stacy Gear recently celebrated nine years with Citizens Bank of Kansas. As Chief Development Officer and member of the Executive Management Team, Stacy is responsible for the Human Resources department in the bank and serves as unofficial head cheerleader for all things at Team CBK! Kansas Emerging Leaders in Washington D.C. Deron O’Connor, Astra Bank in Hays, and Lindsey Snider, Central National Bank in Junction City, recently attended the American Bankers Association’s (ABA) Emerging Leaders Forum, held in conjunction with the ABA’s Washington Summit on March 20–22 in Washington D.C. The purpose of the Emerging Leaders Forum is to connect and develop the current and next generation of bankers to lead the industry. After the Forum, O’Connor and Snider were able to hear from national banking regulators, economists, and Congressional leaders speaking at the Washington Summit. On the final day of the event, they joined other Kansas bankers in making office visits with the Kansas Congressional delegation members. Farmers Bank & Trust has New President Brad Zimmerman, who has been working at Farmers Bank & Trust since 23
BRIEFLY IN KANSAS BANKING October, has recently been named its president. He comes to Atwood from Scott City, where he was president of First National Bank. Zimmerman, a native Kansan, grew up in Mullinville and received his college education at Fort Hays State University. His working career has been in accounting and banking. “I like numbers,” he said with a chuckle.” I am enjoying getting to know this community and working with a great staff here at the bank.” He and his wife, Marla, are living in Ludell. She is a retired nurse and RHIT specialist in medical records. They have three grown children, a son and family in Andale, Kansas, a son and family in Elkhorn, Nebraska, and a daughter in New Jersey. They have six grandchildren as well. Bank of Tescott Promotes Schwerdtfager to EVP/COO The Bank of Tescott promoted Kathy Schwerdtfager to EVP/ Chief Operating Officer. Schwerdtfager joined the bank in 2009 as SVP/Lender at the Lincoln Branch. Since 2019, she has been serving as EVP/Chief Credit Officer. She also is currently on the bank’s Board of Directors. Schwerdtfager will continue to serve as CCO until the role is filled. She will also oversee the bank’s audit, compliance, training, HR, marketing, and deposit operations functions. She is a McPherson College graduate with a Bachelor of Science in Business Administration with an emphasis on Finance and a Kansas State University graduate with a Master of Science in Personal Financial Planning and a Certificate in Financial Therapy. Schwerdtfager is also a graduate of the Graduate School of Banking in Colorado and is currently a faculty member. Schwerdtfager serves on the Board of Directors of the Greater Salina Community Foundation and is a Blue Coat Ambassador for the Salina Area Chamber of Commerce. Humphreys “Hump” Dean Hodge Humphreys “Hump” Dean Hodge, 88, of Augusta, KS, passed away Saturday, Dec. 3, 2022, at home. Hump was born in Ft. Worth, TX, on Oct. 30, 1934, to Martha (Humphreys) and Clifford Hodge, and grew up in Leawood, KS. Hump graduated from the University of Kansas with a degree in journalism and remained a passionate and loyal Jayhawk fan. He also served in the U.S. Air Force. He was in banking insurance sales, owning Financial Insurance Group in Augusta, and finally retiring from the Kansas Bankers Association. Hump dedicated himself to many charitable causes and made many dear, lifelong friends along the way. On Feb. 11, 1978, he married his soulmate, Barbara (Seba), in Wichita, KS, who survives him. He is also survived by his daughters, Julie Colahan (Jim), Marty Winkelman, Missy McCarthy (Kent), Alison Brake (J.D.); son, Kent Owens (Lalanie); 16 grandchildren; and 18 great-grandchildren. He was preceded in death by his son, Kevin Owens, and granddaughter, Brooke Owens. Hump was blessed with a large family and many friends. He loved life, never knew a stranger, and had a heart of gold. He simply was one of the kindest people you could meet. In Memory 24
In Memory John Thomas "Tom" Fellers John Thomas “Tom” Fellers was born on August 20, 1937, and went to join his Heavenly Father on April 2, 2023. Tom’s life was defined by his commitment to service and to his community, including being elected as the Mayor of Ashland. Through the years, Tom was a member of various committees, including the Kansas Banking Association, USD220 School Board, Ashland Hospital Endowment Board, Kiwanis Club, and a limited partner of the Elm Grove Apartments. Tom was an active member of the Ashland United Methodist Church where he sang in the choir for much of his life. Tom was born in Dodge City, Kansas, to Francis and Pauline Fellers, and moved to Ashland, Kansas, in 1946. Tom was a lifelong Kansas resident. He graduated from Ashland High School and then attended Fort Hays State University, graduating in 1960 with two degrees, a bachelor’s degree in biology and a master’s degree in counseling. After completing his studies, Tom accepted his first professional job as a math and science teacher in Scott City, a position he held for two and a half years. In 1981, Tom accepted a new position as an entry-level Assistant Cashier at Stockgrowers State Bank. The next 50+ years of his career were devoted to the bank, where he worked his way through the ranks to President and CEO. Under his stewardship, Tom expanded the bank’s service area with the purchase of Bank IV in Meade, Coldwater Bank, and Brook-Howell Insurance Agency, and through his participation in the development of the Bankers Bank of Kansas. One of his crowning achievements was the construction of the new bank building in Ashland, which was completed in 1985. Tom is survived by his wife of almost 62 years, Phyllis Ruth Fellers of Goddard, Kansas; his children Jacquelyn Cherie Stearns and husband Jim of Goddard, KS; Thomas Scott Fellers and wife Ellea of Lawrence, KS; and Elizabeth Ann Wager and husband Jeff of Wichita, KS. Tom and Phyllis were blessed with seven grandchildren and six great-grandchildren. In Memory Fred Dunmire Fred Arthur Dunmire of Overland Park, KS passed away on March 17, 2023. He was born March 5, 1933, in Spring Hill, KS, to Ray Allen Dunmire and Margaret Null Dunmire. Fred was a graduate of Spring Hill High School and the University of Kansas (class of 1955) with a degree in Business Administration. He was a member of the Phi Kappa Psi fraternity. He later completed The Graduate School of Banking at the University of Wisconsin. Following graduation from KU, he served in the Army, stationed in Korea from 1955–1957. After returning from Korea, he began his career at Commercial National Bank in Kansas City, KS. He remained there until he retired as President in 1994. While at CNB, he also became President of the State Bank of Spring Hill in 1961 after the passing of his father. He continued his work there as Chairman of the Board until his passing. Other involvements include Campaign Chairman of United Way of Wyandotte County, Director of the American Royal Association, Trustee and Chairman of the Board of Bethany Medical Center, President and Director of YMCA in KCK, and Chairman of Kaw Valley Tri-County Heart Association. He was a 57-year member of Milburn Country Club, and Director and past President of Wolf Creek Golf Club. Survivors include wife Catherine Campbell, who he married in 1957; son David Dunmire (Terri) of Overland Park and their children Brian Dunmire and Megan (Matt) Swaback; daughter Laura Klotz (Gary) of Eudora, KS, and their children Catherine Broksieck (Derek), Melissa Klotz and Erin Klotz; as well as three great-grandchildren. Also surviving are sister-in-law Marion Dunmire and brother-in-law Darrell Rhudy. Fred deeply loved his family and was well respected by his friends and colleagues. He was especially happy spending time on the golf course.
ankers and vendors gathered for the first time in the Little Apple. Our 27th annual conference was held February 10–11 at the Manhattan Hilton Garden Inn. Following opening remarks by current KBA Chairman Shan Hanes, he introduced one of KBA’s highest-rated presenters, Lee Wetherington. In his presentation, “Looking Ahead: Forces Shaping Banking Over the Next Decade,” Wetherington shared that strategy is best done from the future backwards. He entertained the group with a long view on the future of banking and what opportunities and threats the future presents now, soon, and later. The conference then transitioned to two concurrent sessions followed by a facilitated peer group discussion period where bankers divided up based on the asset size of the bank. Discussion groups were assigned as $100 million and under, $101–$200 million, $201–$400 million, and over $400 million. Concurrent Session I • What Keeps You Up at Night When Protecting Over $20 Billion in Assets and Over 5,500 Users? — Eric Durbin, Caltech • Managing Your Managed Service Provider: 12 Questions to Ask Your MSP — Jon Waldman, SBS Cybersecurity, LLC • What’s Going on in Banking 2023 — James Davis, Cornerstone Advisors Additional concurrent sessions rounded out the day of meetings. Concurrent Session II • What Keeps You Up at Night When Protecting Over $20 Billion in Assets and Over 5,500 Users? — Eric Durbin, Caltech • Key Terms of Banks’ Third Party Agreements — Tom Witherspoon, Stinson • Preparing for a Focus on Process and Efficiency — Mike Holt & Mikelle Brady, Profit Resources, Inc. B Day one concluded with an interactive tradeshow with 43 exhibitors on hand to demonstrate a multitude of industry products. Attendees were afforded ample time to talk with showcase exhibitors and, in some cases, to play cool games to win prizes. Bank Technology Conference Exhibitors 2023 Bank Technology and Operations Conference and Showcase • Automated Systems, Inc. • American Bank Systems • American Digital Security • Arctic Wolf • Ascensus • Bankers’ Bank of Kansas • Bankers Security • BMA • Caltech/Integris • CBK, Inc. • CES Systems • CoNetrix • Cornerstone Advisors • Cox Business • Data Business Equipment, Inc. • DCI (Data Center, Inc.) • Federal Protection, Inc. • Federal Reserve Banks • Fileinvite • Fiserv • Grad. School of Banking — WI • Granite • Hydeman Company • ICI-Core Consulting • JMARK • KBA Insurance, Inc. • Mainstar Trust • MEA Financial Enterprises, LLC • MOCA Financial • Network Plus KBA Technology Committee Chairman Jeff Martin, First Heritage Bank in Centralia, welcomed the group on day two. KBA Chairman Shan Hanes then moderated a regulatory panel with Kylee Fine, OSBC; Lacey Peters, Federal Reserve of Kansas City; Robert Hurd, OCC; A.J. Steiger, FDIC; and David Sanders, FDIC. The group transitioned into a very energetic presentation, “Connection to Disconnection: The Evolution of Digital Banking,” by Eric Cook of WSI Digital and the LinkedBanker. Cook reminded us that, as consumers have become more comfortable with digital and online alternatives for activities that were performed in person just a short time ago, the world of banking needs to wake up and pay attention. To some, this 26
shift to digital has caused a disconnection from traditional means of serving customers, building relationships, and adding value — the reality is the successful community bank will embrace this change and figure out ways to connect in this seemingly disconnected world. After the awarding of exhibitor prizes, the conference concluded with Retired Marine Lt. Colonel Robert Darling telling his story of what it was like in the White House bunker on 9/11, where the Vice President and other administration officials gathered intel and made decisions minute-by-minute. Some of those decisions were not only life and death, but historically, they never had to be made before. The 2024 Bank Technology and Operations Conference and Showcase will be February 12–13 at the Wichita Hyatt Regency Hotel. According the Lee Wetherington with Jack Henry, the best strategy is done from the future backwards. He shared a look at the future of banking and what opportunities and threats that the future presents now, soon and later. Lt. Col. USMC Robert Darling, retired, shared his experience of working in the White House Military Office on the fateful day of Sept. 11, 2001, and his assistance with the evacuation of the U.S. President. (L-R) Moderator: Shan Hanes, KBA Chairman; Panelist: Kylee Fine, OSBC; Lacey Peters, Federal Reserve of Kansas City; Robert Hurd, OCC; A.J. Steiger, FDIC; and David Sanders, FDIC. We need to continually be thinking of new and innovative ways to connect with our customers, especially in today's digital world, according to Eric Cook with WSI Digital and the LinkedBanker. 27
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