Pub 12 2023 Issue 6

OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION NOVEMBER/DECEMBER ISSUE 6 2023 From Your KBA Staff! Holiday Greetings ASSURANCE / TAX / CONSULTING FOR unmatched industry insight, VISion matters FORward VISion counts We applaud that the dreams you finance begin with a vision of making a positive impact in the communities you serve. Our vision is helping make yours a reality. Whether you’re looking to stay compliant, manage risk, or grow strategically, our forward-thinking professionals can help you prepare for what’s next. FORVIS ranks among the nation’s top 10 public accounting firms, helping unlock the potential of our clients, people, and communities. We deliver an Unmatched Client Experience® with assurance, tax, and consulting services that reflect our exceptional capabilities and uncommon commitment to excellence. FORVIS is a trademark of FORVIS, LLP, registered with the U.S. Patent and Trademark Office.

Executive Doug Wareham, President & 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 Sara Blubaugh, SVP, Administration and Board Secretary Julie Taylor, VP, Computer & Information Systems Bree Hull, Communications & Marketing Manager, YBOK Division Manager J.W. Wells, Ag Division Coordinator/ Government Relations Assistant 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 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 Clinton Moore, KBA Insurance , Inc Legal/Compliance Jackie Kuhn, JD, VP, Staff Attorney Gwen Hill, JD, VP, Staff Attorney Jamie Sheik, 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 Heather Williams, Compliance Operations Specialist/Auditor Sarah Weltmer, Compliance Operations Specialist Meridith DeForest, Administrative Legal Assistant Sarah Lynch-Chaput, Legal Intern Gabe Walker, 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. CONTENTS 6 2023 KBA Federal Affairs Committee, KBA Board and KBA’s Bank Leaders of Kansas (BLOK) Class March on Washington, D.C., a Success! 8 Washington Update: The High Cost of Too Much Capital By Rob Nichols, President and CEO, American Bankers Association 9 KBA Trust Conference 12 2023 Economic Outlook & Risk Management Conference 15 2023 YBOK Annual Conference 18 Surviving Versus Thriving in Today’s Market By Data Center, Inc. 21 Are You Ready to Lower Your Privilege Tax Obligation This Filing Season? By FORVIS 23 Kansas Bankers Proudly Serve the American Bankers Association 26 Congratulations 2023 GSB Graduates from Kansas 27 More Than $175,000 In Scholarships Available Annually 28 Briefly in Kansas Banking 30 In Memory: Harold Allen Stones 32 Relationship Banking in the Digital Age By Brian Hoffart, nbkc bank 34 2024 Conference Preview 18 21

2023 KBA Federal Affairs Committee, KBA Board and KBA’s Bank Leaders of Kansas (BLOK) Class March on Washington, D.C., a Success! embers of the KBA Federal Affairs Committee, KBA Board of Directors and the 2023 KBA BLOK class embarked on a multi-day journey in our nation’s capital to engage with Kansas’ Congressional representatives and federal banking regulators, discussing vital matters concerning the banking industry. The event kicked off on Sunday evening, September 17, when the BLOK class commenced their visit with an enlightening guided night tour of Washington, D.C.’s iconic memorials and monuments. Monday morning sessions began with an ABA 101 session hosted at the American Bankers Association’s new office. The day continued with a panel featuring two Chiefs of Staff from Kansas’ Congressional offices. On Tuesday, the entire delegation reconvened at the ABA office to engage in dialogues with key regulatory bodies, including the FDIC, the OCC and CFPB. The discussions centered around regulatory priorities, covering topics such as DIF modernization, bank capital levels and Section 1071 compliance. In addition, bankers received a comprehensive Farm Bill briefing from ABA staff and gained insights into the FHFA’s System 100 report. ABA Government Relations Team members (L-R) Chris Fisher, Kirsten Sutton and Ginny O’Neal updated Kansas bankers on KBA’s legislative priorities, giving important advice and talking points for each issue. Leonard Wolfe, President/CEO of United Bank & Trust in Marysville, expressed his gratitude to Kansas U.S. Senator Jerry Moran, who serves as the lead sponsor of the ACRE Act in the Senate (S. 237). Kansas U.S. Senator Roger Marshall reaffirmed his strong support for the ACRE Act (S. 237). During this important moment, Mark Schifferdecker, President/CEO of GNBank in Girard, extended his heartfelt gratitude to Senator Marshall for his steady dedication to the cause. Bankers urged Representative Sharice Davids (3rd District) to co-sponsor the ACRE Act (HR 3139). Alex Goodpaster, a member of the 2023 KBA BLOK class and VP at Equity Bank, emphasized the Act’s importance given rising interest rates. M 6

KBA officers had the opportunity to capture a moment with Congressman LaTurner. Pictured (L-R) are KBA Vice-Chairman Julie Hower, President/CEO of Farmers and Drovers Bank in Council Grove; KBA Chairman Mark Schifferdecker, President/CEO of GNBank in Girard; Congressman LaTurner; and KBA ChairmanElect Gene Dikeman, President/CEO of Bank of the Plains in Hutchinson. U.S. Congressman Jake LaTurner of the 2nd District offered his insights on the impending budget crisis and reiterated his support for the Kansas Bankers Association’s legislative priorities. Congressman Ron Estes (4th District) discussed a host of KBA-supported initiatives in the Capitol Visitor Center meeting space and offered his insights on the difficulties of finding consensus on the government’s budget. KBA President/CEO Doug Wareham moderated a panel featuring (seated) Braden Dreiling, Chief of Staff to Congressman LaTurner, and James Kelly, Chief of Staff to Senator Moran. They discussed the role of a Chief of Staff, communication strategies and their career paths in D.C. Ryan Gilliland (standing), Vice President with FHLBank Topeka, sponsored the panel. Congressman Tracey Mann (1st District) discussed issues important to the banking industry as well as shared his insights into the upcoming Farm Bill with bankers from Kansas’ Big First. Congressman Mann is a member of the House Agricultural Committee, which will be putting the Farm Bill together. The 2023 KBA BLOK class took a memorable photo at the ABA’s new office building during Monday night’s reception, capturing a breathtaking view. The itinerary continued Wednesday when this group of nearly 60 dedicated bankers visited Capitol Hill. Their discussions spanned a range of critical issues, including the ACRE Act, the Credit Card Competition Act, the potential repeal of Section 1071 Small Business Reporting, and the SAFE Banking Act, among others. The journey concluded with an evening reception held at the Mayflower Hotel, open to all members of the Kansas Congressional Delegation and their respective staff. 7

WASHIINGTON UPDATE n early October, I sat down with Federal Reserve Vice Chairman for Supervision Michael Barr at ABA’s Annual Convention in Nashville. The topic of our conversation was bank capital. The failures of Silicon Valley Bank, Signature Bank and First Republic Bank have prompted regulators to begin clamoring for major capital increases at larger banks. My question to Vice Chairman Barr was: why? Why, when the spring bank failures were attributed to a combination of idiosyncratic liquidity challenges, poor risk management practices and oversight missteps, did regulators put capital in the crosshairs? Why, when policymakers — including the vice chairman himself — have repeatedly stated that the banking system is strong, resilient and well-capitalized, is a major change in capital levels suddenly warranted? While I appreciated the vice chair’s willingness to engage in the conversation, I found the answers I received unsatisfying, to say the least. He echoed a common argument among proponents of the so-called “Basel III endgame,” namely that the last set of capital changes — instituted after the 2008 financial crisis — did not lead to dramatic economic declines and that the banking system continued to grow, even while holding higher amounts of capital in reserve. While these statements aren’t false, they’re a poor justification for additional capital increases now. The truth is the post-crisis capital changes did affect economic growth, and they succeeded in driving business outside of the regulated banking sector. Just look at bank mortgage originations in the years since 2007. The share of mortgage originations by banks has declined steadily since the post-crisis rule changes, plummeting from around 80% to just under 30% in 2022. That’s just one example — there are others. Here are the facts: • We already have an effective framework in place that requires regulators to sensibly tailor rules based on a bank’s risk profile and business model. • Banks are already holding sufficient capital, as evidenced by the industry’s collective weathering of several significant events in recent years, from a global pandemic to a period of rapidly rising interest rates to resiliency in the face of the isolated bank failures in the spring. • The proposed rules on the table would return our current framework to a one-size-fits-all approach that would put U.S. banks at a competitive disadvantage to their foreign peers. They have the potential to drive more business away from banks and into the less regulated shadow banking sector. They also fail to appropriately consider the potential economic consequences of forcing banks to hold even more capital in reserve. • Bankers know there is a cost to holding too much capital — and it’s paid by both consumers and businesses who need credit. To ignore these realities would be a misstep, especially since history tells us that any capital increase for larger banks will eventually affect community banks as well. That’s why ABA has been so vocal in calling on regulators to conduct a thorough quantitative impact study to determine the full extent of potential economic consequences — which they agreed to do in mid-October, alongside an extension of the comment period. However, simply collecting the data is not enough. Regulators and the public need ample time to review and evaluate the data to understand the full picture — and the current timeline, even with the comment deadline extension, does not allow for that. Given the wide-ranging effect this rulemaking could have, the only appropriate course of action is for regulators to withdraw and repropose the rule after the data can be fully assessed. Changes to capital rules — even if they are only intended for the largest banks — will inevitably affect all parts of the banking system. This is too important to get wrong. I The High Cost of Too Much Capital By Rob Nichols, President and CEO, American Bankers Association Email Rob at 8

he 2023 KBA Trust Conference occurred on October 19-20 at the DoubleTree by Hilton in Lawrence, KS. Trust Division President Chris English, The Trust Company of Kansas, and Mark Schifferdecker, the current KBA Chairman from GNBank, extended a warm welcome to all attendees at the conference and introduced the speakers. Economic and Market Outlook — John Tousley, Goldman Sachs In 2022, economic conditions underwent a dramatic shift, causing both stocks and bonds to suffer. The Federal Reserve had been telegraphing significant tightening in 2023, and recessionary expectations reached historic levels. Tousley, Senior Strategist within Goldman Sachs Asset Management, reviewed the economic conditions we were set to face in 2023 and beyond. He examined major economic factors, discussed asset allocation outlooks and talked about risks on the horizon, equipping attendees with valuable information. Transfer of Wealth & Tax Strategies — Brenda Benning and Mitch Caddell, CPAs, FORVIS Brenda Benning and Mitch Caddell, representing FORVIS, emphasized the significance of educating customers on various aspects of financial planning, including income tax, estate planning, wealth trust planning and common transfer planning. They delved into wealth transfer issues spanning generations and explored tax strategies such as charitable contributions, the utilization of diverse trust vehicles and inherited IRAs. The Guide to Retirement — Mike Conrath, J.P. Morgan Asset Management Mike Conrath explained that as people continue to live longer, market forces are changing, and the retirement landscape is shifting. Planning for a successful retirement is increasingly becoming more complex. The role of a financial advisor has never been more important in helping clients navigate these challenges and keep them on a path to achieving their retirement goals. Now in its 11th year of publication, J.P. Morgan’s Guide to Retirement serves as the go-to resource for financial professionals to simplify complex topics and facilitate retirementled conversations. Retirement Reimagined — Carrie Horn, Ascensus Carrie Horn's comprehensive overview of the impact of Secure 2.0 on retirement planning provided valuable insights into the evolving landscape of financial preparation for the golden years. With over 90 retirement provisions embedded within this legislation, its reach extends across not only the core players but also those on the periphery of retirement planning. These provisions, which encompass areas such as IRAs, qualified retirement plans, and health KBA Trust Conference Mitch Caddell and Brenda Benning, representing FORVIS, following their enlightening session on Tax Strategies. Incoming Trust Division Chair Lori Bone of Fidelity State Bank & Trust Company in Dodge City expresses gratitude to outgoing Chair Chris English of The Trust Company of Kansas, Wichita, for his dedicated year of leadership. Attorney Tim O’Sullivan, Senior Partner at Foulston Siefkin, shares valuable insights on best estate planning practices. Bradley Walters of Fifth Third Institutional Services, Columbus, Ohio, engages in a conversation with Amy Barber of Central National Bank, Topeka. Chairman Mark Schifferdecker warmly welcomes attendees, appreciates sponsors and introduces staff, setting the stage for a day of collaboration and learning. T 9

and welfare plans, are poised to influence a broad spectrum of individuals and professionals. As we embrace this paradigm shift in retirement planning, understanding the implications of Secure 2.0 becomes increasingly crucial in guiding both industry veterans and newcomers toward securing their financial future. The KBA Trust Division's annual meeting marked a significant moment at the conclusion of the first day of the conference. During this assembly, an essential transitional milestone unfolded as the new slate of officers and directors for the 2023-2024 year was officially approved. This transition embodies the ongoing commitment of the KBA Trust Division to uphold excellence and visionary leadership. The elected officers, through their dedication and collective expertise, are well-positioned to steer the division toward its goals for the forthcoming year. Their role not only represents a commitment to the division's mission but also serves as a testament to the dynamic and evolving landscape of trust services and financial stewardship. Federated Hermes Fixed Income Market Outlook — Jerry Conner, CFA The second day commenced with Jerry Conner, who provided a comprehensive outlook on the economic and credit markets, along with updates on Federal Reserve Policy. The session also touched on ethical considerations when collaborating with multiple professionals. This well-rounded approach ensured attendees gained valuable insights into both the financial and ethical aspects of their work. Ethical Considerations When Multiple Professionals Serve a Mutual Client — Tim O’Sullivan, Foulston Siefkin, LLP Tim O’Sullivan addressed ethical considerations when multiple professionals from various disciplines serve a mutual client in estate planning. These factors include managing conflicts of interest, ensuring competence, maintaining confidentiality, transparent Chris Kuckelman of Midwest Trust Company, Leawood, and Pam Ryser from the Trust Company of Kansas, Wichita, engage in a friendly catch-up during the break. Presenting your dedicated 2023-2024 KBA Trust Division Board of Directors, whose tireless commitment is deeply appreciated. Goldman Sachs’ Tom Loukas has a conversation with associate John Tousley. 10

fees, effective communication, adhering to ethical rules and resolving disputes when necessary, all while prioritizing the client's best interests. Human Connection in a Digital World — Curtis Waltermire Successful businesses often strike a delicate balance between nurturing human connections and harnessing digital assets. While digital tools enhance client service, they can inadvertently distance us from genuine human interaction. In an engaging and insightful presentation, Curtis Waltermire explored the reasons behind this disconnection and offered strategies to avoid it. He shared fun and remarkable methods to connect with people, inspiring us to enhance the quality of human connections in our own lives. Ethical Obligations of Tax Practitioners: Understanding the Rules to Protect Yourself and Your Clients — Stephen Mazza, University of Kansas Navigating the fine line between legitimate tax avoidance and unlawful tax evasion presents a significant challenge. Those who venture across this boundary, including practitioners and their clients, risk facing a broad spectrum of penalties enforced by the Internal Revenue Code, the Treasury Department and regulatory bodies overseeing the ethical conduct of practitioners. This presentation delved into the diverse governing standards applicable to taxpayers and tax practitioners alike, shedding light on incongruities that had the potential to generate conflicts between advisors and clients. Thanks to this year’s sponsors! Their expertise, support and dedication were instrumental in the success of our conference. Mortgage Investment Services Corporation 22316 Midland Drive • Shawnee, KS • 66226 • 913-390-1010 NMLS# 194708 • A Kansas licensed mortgage company #MC 0001182 Missouri Residential Mortgage Loan Broker Licence # 10-1912 Oklahome Mortgage Broker #MB001953 Colorado License #100044344 Nebraska Licensed Mortgage Company NMLS#194708 20+ Years! Depend On Us! For 20 years, community banks in the Midwest have depended on MISC’s expert mortgage services for their customers. • Free Loan Officer Training & Webinars • Offer all secondary market loan programs: VA, FHA, USDA/RD, Conventional & Jumbo • Earn more fee income with less risk Call or email today. Let’s discuss how MISC can help you! Joan Emas, Account Executive Andrew Holtgraves, Vice President Cell: 816-810-8878 Cell: 913-558-2555 Email: Email: NMLS: #276932 Associate Member 11

he Wichita Marriott Hotel was the location for the 2023 Economic Outlook & Risk Management Conference on November 8-9. With many CEOs, CFOs and investment bankers on hand, the program provided high-level and timely information for bank development and planning. KBA Chair-Elect Gene Dikeman, Bank of the Plains in Hutchinson, welcomed attendees, thanked conference sponsors and gave special recognitions before introducing the first keynote speaker, Sean Payant with Haberfeld. In his fast-paced and entertaining talk titled “Under Pressure: Cost of Funds Strategies in a Rising Rate Environment,” Payant shed light on the enduring significance of low-cost funding in the banking realm. He emphasized that even during periods of historically low interest rates, low-cost core deposits retained their value. As rates began to climb, the attention returned to the importance of low-cost funding. Payant's session provided practical strategies that can be implemented by teams today, irrespective of the financial climate. These strategies not only ensure success in the present but also pave the way for a secure future. “Navigating Economic Uncertainties,” presented by Dr. Chris Kuehl, posed the question, “Why, despite earlier predictions, has a recession remained elusive?” Delving into the factors at play, he examined whether inflation is truly under control, the intricacies of the supply chain and how the shortage of workers impacts remarkably low unemployment rates. Global trade and geopolitics also took center stage in Dr. Kuehl's analysis as he unraveled their implications. Perhaps most crucially, Dr. Kuehl shed light on how this intricate web of economic factors shapes the banking sector and the economy, particularly in the diverse state of Kansas. Following lunch, the conference had breakout sessions that included: Concurrent Session I • “Compliance Hot Topics” Dylan Serrault, Kansas Bankers Association • “Credit Reporting and Dashboarding to Solve Risk” Zach Langley, Abrigo • “Top 10 Cyber Threats and How to Mitigate Them” Brandon Gettert, Curated Cyber Concurrent Session II • “Compliance Hot Topics” Dylan Serrault, Kansas Bankers Association • “Fraud Risk Management Best Practices” John Meyer, Cornerstone Advisors • “Preparing for a Focus on Process and Efficiency” Brady Chianciola, PRI In the final session of the day, “Asset/ Liability Management in Today’s Environment,” Dale Sheller with The Baker Group explained that in early 2022, the Federal Funds Rate was close to zero, T Dr. Ed Seifried, a renowned expert, delivered the opening keynote on the conference’s final day. Based on his extensive market research, he asserted that we’ve hit peak rates after enduring the highest rate hikes in 22 years. His presentation decoded the economic complexities, offering strategic insights and prompting thoughtful reflection among attendees. 2023 Economic Outlook & Risk Management Conference KBA Chair-Elect Gene Dikeman of the Bank of the Plains in Hutchinson extended a warm welcome to all attendees, embracing the opportunity to kick off this year’s event with enthusiasm and appreciation. He acknowledged the invaluable support of our sponsors, whose commitment and generosity have played a pivotal role in making this event possible. 12

After his presentation on effective strategic planning tactics, Market Insight’s Jim Perry took questions from Addison Cokely (left) and Julie Graber (right) from INTRUST Bank in Wichita. (L-R) Jason Weiler, John Kilroy and Lance Caldwell with UMB Bank, Kansas City, MO. KBA President & CEO Doug Wareham engaged in a discussion regarding the banking industry and the economy in Kansas with Dr. Chris Kuehl, a renowned expert from Armada Corporate Intelligence. Kelly Gillespie and Adam Boyle with Networks Plus in Manhattan invited attendees to their booth for a game of Blackjack. Both cybersecurity and playing blackjack involve strategic decision-making, risk management and an understanding of probability. but by the end of the year, the Federal Reserve had raised interest rates by 500 basis points in nine months to combat near 40-year high inflation. While these measures benefited financial institutions by expanding margins, concerns emerged about balance sheets and overall performance due to dwindling liquidity and increased pressure on deposits. The session addressed these concerns and offered strategies to help institutions better navigate the uncertainties ahead. Day two of the conference began with popular economist Dr. Ed Seifried in his session, “Can the Fed Win the War Against Inflation Without Causing a Recession.” Although Dr. Seifried believes that the current period of inflation is almost over, continually monitoring GDP reports will be critical for bankers to ensure that their institution remains able to support growth through loan quality and liquidity. Additionally, utilizing various techniques to monitor the economy will allow bankers to explore appropriate solutions for their bank and remain in the know on current topics that impact their communities, according to Dr. Seifried. Dr. Sean Payant with Haberfeld was the opening keynote speaker. He highlighted the current impact of rising interest rates on the financial sector, emphasizing the renewed significance of low-cost funding. His address provided a comprehensive exploration of economic challenges and opportunities, offering valuable insights for navigating the evolving financial landscape. 13

Jim Perry, Senior Strategist at Market Insights, presented a talk on “Supercharging your 2023 Strategic Plan for Future Growth.” Harvard Business Review tells us some 60-90% of strategic plans never fully launch. Perry explained for a successful strategic plan, setting the stage is vital. Choose a diverse strategy team, communicate your methodology clearly and encourage open debate. Embrace varied perspectives, granting permission for candid discussions while anchoring decisions in relevant data. This approach ensures a robust and effective strategy, combining diverse expertise with data-driven insights. The conference concluded with “Priority Mastery: Strategic Execution on What Matters” by Eric Papp. Boost focus on top priorities, avoid the urge to do everything, accelerate project progress, have the courage to reject irrelevant tasks and make room for strategic thinking. In a world of increasing complexity, Papp emphasized that individuals need to prioritize effectively, enabling them to achieve greater impact and regain a sense of control. Resist the misconception that you can do it all, and embrace the idea that success involves making tradeoffs. As life becomes more demanding, creating mental space for critical thinking becomes essential — time to identify unnecessary tasks, rescue stalled projects and build the courage to decline non-essential commitments. Mark your calendars for next year’s conference on November 6-7 in Manhattan! Thank you to our special guest Rep. Dan Hawkins, Speaker — Kansas House of Representatives, for making a special appearance. We appreciate you providing an update on next session initiatives! 14

hank you to the 120+ Kansas bankers who attended the 2023 Young Bank Officers of Kansas (YBOK) Annual Conference Oct. 11-13 in Mulvane, KS! It was a record crowd for the 15th anniversary, and we believe attendees came away with some great tools and connections to take back to their respective institutions to better the communities and customers they serve! These are the 2023-2024 YBOK Division Board of Directors: • President — Nick Wolfe, United Bank & Trust, Marysville • Vice President — Francis Scheuerman, UMB Bank, Kansas City • Secretary/Treasurer — Rocky Anderson, Kaw Valley Bank, Topeka • Past President — Cameron Cooper, Patriots Bank, Garnett • Region 1 — Nick Gideon, Silver Lake Bank, Lawrence • Region 1 — Alex Jones, Bank of Commerce, Neodesha • Region 2 — Greg Thiessen, First Bank of Beloit, Beloit • Region 2 — Tom Sheik, State Bank of Bern, Bern (nominated for a second three-year term) • Region 3 — Victoria Pruitt, First National Bank of Hutchinson, Hutchinson • Region 3 — Brock Stuhlsatz, Citizens Bank of Kansas, Derby (nominated for a first three-year term) • At-Large Rep. — Amanda Williams, Bankers’ Bank of Kansas, Wichita nominated for a first three-year term • At-Large Rep. — Beth Masterson, Legacy Bank, Wichita • At-Large Rep. — Jordan Lauer, Farmers State Bank, Westmoreland • Ambassador — Andrew Holtgraves, Mortgage Investment Services Corporation, Shawnee (nominated for a first three-year term) • Ambassador — Tyler Walden, Allen Gibbs & Houlik CPAs & Advisors, Wichita • Ambassador — Jason Hatfield, Security First Title, Wichita YBOK President Cameron Cooper and KBA Board Chairman Mark Schifferdecker, GNBank N.A. in Girard, kicked off the conference by welcoming the attendees. Chairman Schifferdecker discussed his priorities as Chairman, the essential roles young bankers play in their institutions and communities and why it is important to continue to grow as a professional, engage in the political process and be a KBA volunteer leader. KBA Chairman Mark Schifferdecker, GNBank, NA in Girard, kicked off the 2023 YBOK Annual Conference by welcoming attendees at the Kansas Star Casino in Mulvane. Eric Papp was the first speaker with “Managing Multiple Priorities,” which teaches the seven secrets of top performers that will propel attendees from procrastination to execution! Lee Smith, SVP of Economic Research at the Federal Reserve Bank of Kansas City, provided the YBOK attendees with the Economic Update. T 2023 YBOK Annual Conference 15

The first speaker of the day was Eric Papp, author and keynote motivational speaker, with his presentation, “Managing Multiple Priorities,” which taught the seven secrets of top performers that would help propel attendees from procrastination to execution. Up next was Lee Smith, SVP of Economic Research at the Federal Reserve Bank of Kansas City, with the Economic Update. Smith talked about how stubbornly high inflation has led to a swift tightening in monetary policy and how it has come down recently but remains too high. He also talked about how the labor market has shown surprising resilience in the face of higher interest rates and that reaching and sustaining 2% inflation will likely require further easing labor market tightness. Kansas State Treasurer Steven Johnson provided an update on his office’s efforts and his vision as the banker for the state! Treasurer Johnson gave an overview of his 2024 legislative agenda, fiscal services offered by his office, and the state of cash reserves for Kansas. Johnson also talked about his efforts in coordination with the KBA on how best to invest public funds directly back into Kansas and the longterm economic impact that makes. This year’s YBOK Corporate Citizenship Effort recipient was Harbor House! YBOK President Cameron Cooper, Patriots Bank in Garnett, and KBA’s SVP — Government Relations Alex Orel presented Keri McGregor and Brittany Loomis with Harbor House with a $1,500 donation. Thank you to 2023 YBOK President Cameron Cooper, Patriots Bank in Garnett, for your dedication and service to the division. We are excited to announce Nick Wolfe, United Bank & Trust in Marysville, as the 2024 YBOK President! This year’s YBOK Corporate Citizenship Effort recipient is Harbor House! YBOK President Cameron Cooper, Patriots Bank in Garnett, and KBA’s SVP — Government Relations Alex Orel presented Keri McGregor and Brittany Loomis with Harbor House with a $1,500 donation. KBA Government Relations Team member Alex Orel, SVP — Government Relations, gave an update on state and federal government issues and legislative priorities for 2024. This year’s CEO panel is (L-R) Julie Hower, Farmers & Drovers Bank in Council Grove; Eric Kurtz, Union State Bank in Arkansas City; Aaron Bastian, Fidelity Bank in Wichita and moderator Tyler Walden with Allen Gibbs & Houlik, LC in Wichita. The panel conversation focused on industry trends, workforce development initiatives and their experiences in running their respective institutions. Thank you to Kansas State Treasurer Steven Johnson for providing an update on his office’s efforts and his vision as the banker for the state! Harbor House at Catholic Charities is more than a safe shelter for survivors of severe violence. Harbor House uses outreach advocacy services to guide survivors of abuse through the judicial, medical and DCF systems. Harbor House provides a variety of services each year to hundreds trying to leave abusive relationships but who never step foot in the shelter. All services are provided with the goal of breaking the cycle of violence against women and their children. This year’s CEO panel was Julie Hower, Farmers & Drovers Bank in Council Grove; Eric Kurtz, Union State Bank in Arkansas City; Aaron Bastian, Fidelity Bank in Wichita and moderator Tyler Walden with Allen Gibbs & Houlik LC in Wichita. The panel conversation focused on industry trends, workforce development initiatives and their experiences in running their respective institutions. KBA Government Relations Team Alex Orel and Kelly VanZwoll gave an update on state and federal government issues and legislative priorities for 2024. They talked about the need for the younger generation to get involved in the political process and how essential that is for success. Alex and Kelly walked through the efforts to pass a comprehensive tax plan at the state level. They asked the attendees to take action in the KBA Mobile App to answer the call to action to 16

Thank you to Debbie Peterson, Self-Leadership Keynote Speaker & Performance Consultant and Author, for closing the 2023 YBOK Conference with her presentation, “Getting to Clarity: A Roadmap to Your Career,” which taught the five steps to gain unparalleled clarity and direction in attendee’s careers, business, leadership and even life! 2023 YBOK President Cameron Cooper, Patriots Bank in Garnett, announced scholarship winners with Vice President Nick Wolfe, United Bank & Trust in Marysville. Keri McGregor (left) and Brittany Loomis (right) from Harbor House at Catholic Charities in Wichita thanked attendees for their gracious contributions to the corporate citizenship donation and how their efforts support Harbor House’s goal of breaking the cycle of violence against women and their children. KBA Chairman Mark Schifferdecker thanked Kansas State Treasurer Steven Johnson for providing a snapshot of the financial condition of the state of Kansas to attendees. The YBOK Conference had a record crowd of 120+ attendees to celebrate 15 years as a division of the KBA! oppose the credit card competition action act being considered in Washington, D.C., and being pushed by U.S. Senators Roger Marshall (Kansas) and Dick Durbin (Illinois) that would jeopardize the security of financial information and wipe out credit card rewards. Closing out the conference was Debbie Peterson, self-leadership keynote speaker, performance consultant and author of Getting to Clarity: A Roadmap to Your Career. This taught the five steps to gain unparalleled clarity and direction in attendees’ careers, business, leadership and even life! We hope to see you all again next year in Hays for the next year’s Annual Conference scheduled for Oct. 9-11, 2024.

Surviving Versus Thriving in Today’s Market By Data Center, Inc. ommunity bankers have long been community changers. Through their service to small businesses and local economies, their impact on the lives of their customers and neighbors is undoubtedly far-reaching. Nevertheless, the community of community bankers and changers is, in and of itself, changing rapidly — enough for some to declare it under attack. Why is that? Today’s digital age has posed, to some extent, challenges for all financial institutions. Not least of which, however, are community banks. Many in the community banking industry watch as digital evolution takes wind and ask themselves, “How am I to keep up?” They face the challenge of providing a competitive rate of return. They wonder how to maintain efficient operations with limited resources. Often, they turn to what they perceive as the only clear solution: merging. They do this because one look at today’s technology tells them they are being left behind, and in some cases, they are. The question is not whether technology renders community banks vulnerable in today’s market, but rather, what are we to do about it? Driven by the passionate belief that community banking is worth fighting for, we look beyond the bounds of the traditional core ecosystem to find our answer: opportunities to innovate and diversify income streams. Consider these examples: • BaaS • Fintech partnerships • Digital banking/expanded market reach • Robust product offerings In capitalizing on these opportunities, the importance of choosing the right technology partner is stronger than ever. For community bankers who want their foot in the door of new markets, a trusted partnership yielding new technologies, product offerings, and more is invaluable. Accordingly, the answers to the following questions must inform community bankers’ decisions: 1. Which partner can provide the most consistently innovative and agile technology? 2. Which partnership will equip my bank with the most robust set of product offerings and capabilities? C 18

3. Which partner recognizes the true value of community banking and intends to uphold and build on my bank’s identity and legacy? 4. Which partner can be trusted to expertly guide this journey and deliver the information my bank needs to excel in the digital age? As community bankers make the careful choice of whom to partner with in charting their future course, settling for a provider who falls short in their answer to one or more of these questions is simply not enough. Too often, for example, a provider will attempt to sell community bankers the assurance of technology that is not yet live. They market the anticipation of forward-thinking innovation without the active, proven products to back it. Remaining mindful of such deception is important. When a partnership signifies an investment in the continued success of a community bank, there is no room for false promises. In exceeding expectations through ever-evolving, cutting-edge technology, a community bank’s partner should of course augment the products and services offered both locally and digitally. Trusted guidance and a customized, consultative approach should help determine exactly how that is executed. Doing so successfully, however, demands a commitment to customer-centricity. Larger institutions may have the technological advantage, but a community bank’s dedication to strong customer relationships will always be its greatest differentiator. As such, a technology partner who recognizes, values, and upholds this standard of people-first banking is essential — that is how community banking endures and prospers. Sarah Fankhauser, President and CEO of DCI (the privatelyowned developer of core processing, digital banking and Fintech processing solutions), shares her insight on the matter, saying, “DCI’s community banking partners might come to us for our technology, but our commitment to customer service is why they stay. In addition to innovative offerings, finding a technology provider who cares enough to be your partner through it all is what makes a successful collaboration. It’s the difference between surviving versus thriving in today’s market.” The task of adapting and advancing in a financial landscape where technology dominates is certainly a challenge for community banks. More than that, however, it is an opportunity. By embracing innovation and building partnerships with trusted technology providers, community banks can expand their reach, diversify their income streams, and thrive in the digital age. With regard to the challenges ahead, there is no doubt that leveraged technology and a continued commitment to customer service will lead this vital force for our economy far. Rest assured: the future of community banking is bright. By embracing innovation and building partnerships with trusted technology providers, community banks can expand their reach, diversify their income streams, and thrive in the digital age. To learn more, please visit More options for your customers, without more risk to your bank. Why Partner With Us? Ag Resource Management offers an innovative solution to lenders by mitigating your risks with watch list and nonperforming loans. We can help you take these assets off of your balance sheet and increase your lending ability. We achieve this with a blend of proprietary technology and data validation in valuing a growing crop, monitoring that crop, and keeping track of collateral as it approaches maturity. Loans are processed swiftly and we communicate with you throughout the process. We’re just a call away. Get started today with our teams in Kansas. Ryan Schreibvogel 1805 East Mary Street, Suite B Garden City, KS 67846 (620) 371-4858 Wade Simpson 5506 Corporate Drive, Suite 1760 Saint Joseph, MO 64507 (816) 226-4574 ARM is an equal opportunity provider. 19

IT COMPLIANCE & SECURITY FOR COMMUNITY BANKS Watch our video! 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 |

any banks have heard interest income in Kansas may not be taxable for the coming year, and you may be wondering, is it all interest? Interest is a broad term. Is it interest from new loans? Is it cash or accrualbased interest? Good news! The Kansas Department of Revenue (KDOR) and the Kansas Bankers Association have worked together to provide guidance on these questions and others like them. If you have not heard, during the 2021 Legislative Session, Senate Bill 15 was passed and signed into law. Section 10 of the Bill amended K.S.A. Section 79-1109 to add a new deduction on form K-130 for certain interest income. The deduction is available for tax years starting after Dec. 31, 2022, and is specifically available to national banking associations, state banks, trust companies and savings and loan associations. So, what is “certain interest income,” and how is the deduction calculated? For this purpose, Kansas defines interest as: “…interest on indebtedness attributed to Kansas and incurred in the ordinary course of the active conduct of any business and interest on indebtedness incurred that is secured by a single-family residence.” 1 The KDOR additionally stated that origination fees on the applicable loans constitute interest income for the computation of this deduction. The interest income used in the calculation will need to follow the same method of accounting that is used on the tax return, and the applicable loans apply to more than just loans created after Dec. 31, 2022 (although the deduction only applies to the interest earned on the loan during the year). Are You Ready to Lower Your Privilege Tax Obligation This Filing Season? By FORVIS M 21

Not all loans will qualify for the deduction. Taxpayers will need to search their loan portfolio for “qualified agriculture real estate loans” and “single-family residence loans,” defined respectively as: 2) … Loans made on real property that is substantially used for the production of one or more agricultural products and that: A) Have maturities of not less than five years and not more than 40 years; B) are secured by a first lien interest in real estate, except that the loans may be secured by a second lien interest if the institution also holds the first lien on the property; and C) have an outstanding loan balance when made that is less than 85% of the appraised value of the real estate, except that a loan for which private mortgage insurance is obtained may exceed 85% of the appraised value of the real estate to the extent the loan amount in excess of 85% is covered by such insurance; 3) … A residence that: A) Is the principal residence of its occupant; B) is located in Kansas, in a rural area as defined by the United States Department of Agriculture that is not within a metropolitan statistical area and has a population of 2,500 or less as determined by the most recent census for which data is available; and C) is purchased or improved with the proceeds of the loan2 So, what is “certain interest income,” and how is the deduction calculated? Based on the language of the statute, the interest on crosscollateralized with non-agricultural real estate loans should qualify for the exclusion calculation, provided the loan is for the qualified rural residence or agricultural real estate. K.S.A. 79-1109(c) states that the qualified agricultural real estate loan only needs to be attributable to Kansas, which means either property located in Kansas or a qualified loan made to a Kansas resident for property outside of Kansas. Home equity loans used to improve the property would also be eligible. How do you know if a single-family residence is located within a community of 2,500 people or less? The definition of a nonmetropolitan statistical area is patterned after federal law. Federal resources are available to assist with determining areas that meet this definition. Additionally, federal law states that “area” can mean community, township, city, county or other contained region. Now that the loans have been identified, you can calculate the deduction. You will perform the calculation separately using agricultural loans for one and residential loans for the other. You will take the ratio of the net interest earned on the qualified loans divided by the total interest income earned for the year and multiply that ratio by net income without regard to the deduction. Net income is defined in K.S.A. Section 79-1109 and is net income after apportionment plus income from U.S. obligations or securities and exempt income from the state or political subdivision, less dividends received from stock issued by Kansas Venture Capital, Inc., interest paid on time or borrowed money, and dividends paid on withdrawable shares of savings and loan associations, to the extent not already included in Kansas taxable income. If you have questions, reach out to a professional at FORVIS. 1Kan. Stat. Ann. § 79-1109-(c)(1) (2021) 2Kan. Stat. Ann § 79-1109-(c)(2) & (3) (2021) 22

Kansas Bankers Proudly Serve the American Bankers Association We are proud to recognize our Kansas bankers who are currently serving on American Bankers Association’s committees, councils and working groups. Your dedication and hard work in serving our industry are greatly appreciated. Thank you for your commitment and contributions. Agricultural and Rural Bankers Committee The Agricultural & Rural Bankers Committee provides information, programs and policy recommendations that offer an opportunity for improvement and profitable management of banks providing financial products and services to agricultural and rural America. David White, Commercial Relationship Manager INTRUST Bank N.A., Wichita Reaffirmed State Alliance Executive Committee The American Bankers Association and 51 autonomous state bankers associations collaborate in an alliance to more effectively represent the banking industry and promote the varied interests of our members, particularly in the area of advocacy. ABA and state associations work together to improve the competitive positions of America’s banks. Doug Wareham, KBA President & CEO New Appointee BankPac Committee The Political Action Committee is the largest PAC representing the banking industry and consistently one of the largest trade association PACs in the nation. BankPac operates in full compliance with the Federal Election Campaign Act (FECA) and the Bipartisan Campaign Reform Act (BCRA) and files monthly public disclosure reports with the Federal Election Commission (FEC). Jeff Emmot, Business Development Manager INTRUST Bank N.A., Wichita New Appointee Emerging Leaders Council Alex Orel, SVP Government Relations Kansas Bankers Association New Appointee Emerging Leaders Council The mission of the council is to attract, connect and develop the current and next generation of bankers to lead our industry. The council will guide ABA in the creation of new opportunities to engage emerging leaders in leadership development, networking, mentoring and advocacy. They will seek to complement, reinforce and integrate the emerging leader programming developed by state bankers associations and identify opportunities to build on existing financial literacy and community engagement programs. Emerging Leaders Council Brian Whitesell, SVP Commercial Banking Landmark National Bank, Manhattan Reaffirmed 23

Community Bankers Council Jonathon Johnson, President & CEO Home Savings Bank, Chanute Reaffirmed Community Bankers Council & CBC Administrative Committee David Brownback, President & CEO Citizens State Bank & Trust, Ellsworth Reaffirmed FHLBank Topeka, Board of Directors Lance White, Chairman, President & CEO Bank of the Flint Hills, Wamego FHLBank Topeka, Board of Directors FHLBank Topeka’s board of directors oversees policy decisions and ensures that FHLBank’s senior managers prudently operate the Bank. Currently, 17 directors serve on the board. Kent Needham, Chairman & CEO First Security Bank, Overbrook Government Relations Council The Government Relations Council (GRC) is the leadership committee with the exclusive responsibility for recommending annual policy priorities to ABA’s Board of Directors. The council provides ongoing policy guidance to ABA leadership as policy issues arise during the year. Its diverse membership is reflective of the industry at large, representing banks from across the country of varying asset size, charter type and business structure, making it a critical committee in representing both the specific interests of the industry segments and the broader industry. Kyle Campbell, President & CEO Astra Bank, Belleville Reaffirmed Government Relations Council Doug Wareham, KBA President & CEO New Appointee Community Bankers Council The council’s role is to increase community banker involvement in ABA by identifying and responding to community bank priorities, aggressively representing community banking in ABA’s government relations policymaking process, developing a broad range of association products and services to make community banks more competitive and publicizing ABA’s commitment to community banking. Membership on this committee is through appointment by the Chair. Craig Heideman, President & CEO Kaw Valley Bank, Topeka Reaffirmed Community Bankers Council Mike Ewy, CEO Community State Bank, Coffeyville New Appointee 24