2022 BLOK CLASS Page 13 MONUMENT ROCKS , GOV E COUNT Y K ANSAS
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4 E x e c u t i v e © 2022 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 Kansas Banker 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 8 10 11 13 14 18 22 24 26 27 28 30
To be successful in today's financial climate, you must have not only the proper partner, but also the proper approach to achieve high performance. TheBakerGroup is thispartner, andour approach is to offer sound strategies and accurate information to guide your institution to the next level. This is the reason we’ve been the industry’s recognized leader in innovation for more than forty years. To experience The Baker Approach in meeting your financial objectives, call your Baker representative or RyanHayhurst at 800.937.2257. Member: FINRA and SIPC www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Dallas, TX Indianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc. The Baker Approach OUR SERVICES Investment Portfolio Services Balance Sheet Management Education Public Finance Strategic Planning Funding Bond Accounting/Analytics
6 Cr yptocurrencies: Unlock ingBank ing’ s“NewF r ontier” W A S H I N G T O N U P D A T E B y R o b N i c h o l s , P r e s i d e n t & C E O , A m e r i c a n B a n k e r s A s s o c i a t i o n In case you haven’t noticed, cryptocurrencies are an increasingly hot topic of conversation in this country. According to a Pew Research Center survey fielded in November, 86% of Americans said they have heard about cryptocurrencies, and 16% said they have invested in, traded or used them. Cryptocurrency use is growing particularly rapidly among younger Americans, with 31% between 18 and 29 telling Pew they have participated in crypto transactions. More often than not, these trades are happening through financial intermediaries — and consumers are increasingly turning to banks to hold these digital assets. In fact, I’ve heard from a growing number of bank leaders that their customers want to buy, hold and use crypto — and they want to do it through their banks. Banks have already begun making inroads into the crypto services business — offering a responsible pathway for consumers to adopt these novel financial products. For example, Vast Bank, a community institution based in Oklahoma, recently launched a crypto custody account that bank customers can manage in their app alongside their FDIC-insured dollar account. Or Quontic Bank, which offers a checking product that provides rewards in bitcoin, offering consumers an opportunity to wade into the crypto space without buying it themselves. Large custody banks — such as the Bank of New York Mellon and Northern Trust — are also developing custody services for crypto. Bank customers know they can rely on their banks to steward their finances and keep their financial data safe. A recent Morning Consult poll highlighted that banks are the most trusted among all financial services providers. Given that, it’s no surprise that consumers want to receive cryptocurrency services from their bank. But don’t just take my word for it: a survey from NYDIG, a bitcoin services firm, confirmed that a whopping 81% of bitcoin holders would shift their bitcoin to a bank if it offered secure bitcoin storage. Undoubtedly, this “new frontier” of cryptocurrency represents a huge opportunity for banks. But for banks to successfully navigate this new frontier, the bank regulatory architecture needs to catch up — quickly.
Pub. 11 2022 Issue 1 7 Email Rob Nichols at nichols@aba.com. More clarity is needed from the banking agencies about how banks can offer these services in a safe and sound manner. Without this clarity, the unlevel playing field between banks and the rapidly growing cadre of firms seeking to operate as banks while evading the full scope of bank regulations will continue. There have been some positive developments, with the OCC issuing an interpretive letter clarifying its approach for approving crypto-related activities for national banks. Additionally, a report by the President’s Working Group on Financial Markets highlighted the risks of stablecoins, recommending they be issued by insured depository institutions subject to consolidated supervision. Any providers of custodial wallets should also be subject to appropriate federal oversight. For our part, ABA is taking a deep dive into what we can do to support banks’ participation in crypto and other digital assets through both our advocacy and technology partnerships. Additionally, in December, we invested in NYDIG, a leading provider of bitcoin services for banks. This investment will support banks’ ability to meet customer demand in this rapidly evolving market so that as we unlock this “new frontier” of cryptocurrencies and digital assets, consumers can continue to place their trust in America’s banks to meet their financial needs. We understand that expanding into cryptocurrency products and solutions won’t be for every bank, and that’s okay. We firmly stand with banks in their right to decide what products they will offer according to their own judgment and market strategy. However, even with mixed opinions on the value of cryptocurrency as an asset class or as a basis for a product set, ABA strongly believes banks should have access to the tools, partners and regulatory frameworks that allow them to meet their customers’ needs. A recent Morning Consult poll highlighted that banks are the most trusted among all financial services providers. Given that, it’s no surprise that consumers want to receive cryptocurrency services from their bank. But don’t just take my word for it: a survey from NYDIG, a bitcoin services firm, confirmed that a whopping 81% of bitcoin holders would shift their bitcoin to a bank if it offered secure bitcoin storage. Undoubtedly, this “new frontier” of cryptocurrency represents a huge opportunity for banks.
8 On occasion, the KBA receives a request to become involved in a legal matter. Typically, the request is for the KBA to file an amicus curiae brief — or a “friend of the court” brief. In this case, the requesting bank was First Security Bank, headquartered in Beaver, Oklahoma. However, the case involved customers in Kansas and the enforceability of a waiver of the statute of limitations clause in a commercial promissory note under Kansas law. Since most of the commercial promissory notes used in Kansas contain this very clause, the KBA Board of Directors believed this request worthy of its investment. Briefly stated, here are the facts of the case: In June 2005, a couple (the Buehnes) executed a commercial promissory note with First Security Bank (FSB) to build two car washes in Kansas. Among other things, the note included a provision that stated that the signer waives “any available statute of limitations to the full extent permitted by law.” The Buehnes failed to make the required payments at the set times outlined in the note. Over the next several years, FSB sent the Buehnes overdue notices by mail with no response. In 2014, FSB filed a lawsuit against the Buehnes. In 2019, the Buehnes moved for summary judgment, claiming that the statute of LEADER’S LEDGER Kansas Supreme Court Issues Decision on Enforceability of Waiver of the Statute of Limitations Clauses
Pub. 11 2022 Issue 1 9 limitations had run. The Buehnes argued that the statute of limitations had started to run when FSB declared the loan to be in default back in 2006, and that it was now too late to sue. The district court rejected the Buehnes motion for summary judgment and found in favor of FSB. The Court of Appeals concurred with the district court in an unpublished decision, thereby upholding the ruling. The Court of Appeals stated that the Buehnes had waived their right to raise the statute of limitations by signing the note, which had the waiver provision. The Court of Appeals also held that the waiver was not void against public policy. Supreme Court Ruling: On Dec. 30, 2021, the Supreme Court of Kansas affirmed the decision of the Court of Appeals. Relying on the importance of the freedom to contract, the Court held that a contract between parties is presumed legal and that the freedom to enter into contracts should not be interfered with lightly. Nevertheless, the Court also held that any contract violates public policy if it is injurious to the interests of the public, contravenes some established interest of society, violates some public statute, or tends to interfere with the public welfare or safety. In this case, the Court found that the waiver in a commercial contract did not violate public policy because it did not cause the Buehnes to suffer any prejudice as it did not take away the ability of the Buehnes to try other legal remedies (e.g., laches or unconscionability) and that the inclusion of the phrase “ to the full extent permitted by law” constituted a sufficient safety valve to dispel other undue pressures on public policy. Kathy Taylor, KBA EVP — General Counsel ... the Court held that a contract betw een p arties is p resumed leg al and that the f reed om to enter into contracts should not be interf ered w ith lig htly. In finding waivers are not void as a matter of law in a commercial contract, the Supreme Court put the burden squarely on the shoulders of the borrowers to show prejudice. The KBA was represented in writing its amicus brief by Kersten Holzhueter with Spencer Fane LLP — a KBA Associate Member. Many thanks to Kersten for helping to argue for the parties’ freedom to contract in a commercial transaction.
10 B i g C h a n g e s f o r K B A ’ s L e g a l S e r v i c e s Recently, many exciting developments in the KBA’s legal services will benefit KBA member banks. First, the KBA will be reorganizing its legal and compliance services to more efficiently serve banks. The KBA Legal Department will continue its 40-year tradition of providing free legal and compliance information to KBA member banks. For banks wanting more legal assistance, including specific legal advice and document drafting, Kansas Bankers Consulting Services, LLC (KBCS) will continue to provide annual fee-based services for contracting members. Furthermore, the KBA is proud to announce it has created a new business line, Compliance First Banking Solutions, LLC (CFBS). CFBS will provide the audit and compliance consulting services previously performed by KBCS on a bidbasis. As part of CFBS’ offerings, the KBA is rolling out a new service available to participating banks in 2022: Outsource Compliance Services, which will allow banks to outsource compliance to CFBS staff (see next page for more information). As part of this structural reorganization in legal and compliance services, the KBA has made the following position changes: Terri D. Thomas, JD, has been named Executive Vice President and Chief Operating Officer of the Kansas Bankers Association. In this position, she will assist KBA President and CEO Doug Wareham and KBA General Counsel Kathy Taylor with the day-to-day management of the KBA. Terri joined the KBA in 2006 and will continue to provide oversight for all of the KBA’s legal and compliance services provided to members and will directly manage KBCS activities. “Terri is a tremendous asset for the KBA. I look forward to her lending her strong organizational and management skill set more broadly to the overall operations of our Association,” shares Doug Wareham, KBA President & CEO. Allison Carpenter, JD, has been promoted to VP-Manager of the KBA Legal Department. Allison will directly manage the legal and compliance services provided to the KBA’s general membership and oversee the publications produced by the department. Allison joined the KBA in 2012 and has served as Vice President, Staff Attorney and Senior Auditor for the KBA and KBCS. Dylan Serrault, JD, was promoted to VPManager of Compliance First Banking Solutions, LLC. As described previously, CFBS is the new home for compliance consulting and audit services that have been previously offered under the name of Kansas Bankers Consulting Services, LLC. Dylan joined the KBA in 2015 and has served as Vice President, Staff Attorney and Auditor for the KBA and KBCS. It is only with your continued support that the KBA can provide these valuable services to its members. Thank you!
Pub. 11 2022 Issue 1 11 Compliance First Banking Solutions, LLC’s outsourced compliance program is the latest service designed to help Kansas Banks. Compliance in banking can be more than a full-time job. It requires following, understanding and timely implementing constantly updated regulations from a complex banking and regulatory system at the state and federal levels. With all this complexity, it is important to have a compliance team that is expert in the field and ready to implement a new solution or find and address issues before they become a problem for your Bank. It can be hard to find and train the right personnel, especially in a time of high turnover and as many seasoned compliance professionals retire. Compliance First Banking Solutions is here to help. With customizable compliance solutions, our team of compliance experts can help your Bank with a tailored approach. Compliance First Banking Solutions offers both longterm compliance management and short-term compliance organization. Our long-term management approach allows our dedicated team to work within your Bank for an extended period, developing relationships of trust with your employees and learning what makes your Bank unique. Here, our compliance specialist can take on the functions of a compliance officer to create and implement a permanent compliance solution and oversee your Bank’s staff as they handle the day in and day out compliance work. A different approach may be preferred for some banks. Compliance First Banking Solutions can instead work hand in hand with your Bank’s compliance officer. Working within your Bank’s structure, our compliance specialist will create a tailored compliance management approach to identify and resolve compliance issues and help train your compliance team to implement strong standards and processes. Compliance First Banking Solutions will work with you to determine which approach best suits your Bank. Our team can help your Bank transform its compliance program by producing and maintaining risk assessments and overseeing the training of Bank employees and the Board of Directors. We will also work with you to complete regulatory reviews of all compliance areas, including consumer deposit and lending, flood, appraisals, fair lending, CRA assessment and others to identify deficiencies and implement corrective action and training, as needed. Our team can establish compliance meetings on a schedule that best fits your Bank’s needs. Here, our compliance specialist can set the agenda, record minutes, guide the discussion and report to the Board. CFBS Launches New Outsourced Compliance Service Continued on page 12
12 Here’s the thing. Are you really as top of mind with your customers as you think you are? Connecting customers to your brand. 727.475.9827 | 855.747.4003 kris@thenewslinkgroup.com As part of Compliance First Banking Solutions’ launch, we welcome our newest Compliance Operations Specialist, Erica Friedt. A Kansas City native, Erica has worked in banking for over 14 years, spending seven years as a Compliance and Bank Secrecy Act Officer and auditor. As a Certified Regulatory Compliance Manager, Erica has worked in several financial institutions, so she understands the compliance needs of banks, large and small. Erica started her career as a part-time teller and worked as a consumer loan processor before moving to compliance. This gives her a unique insight due to her experience with compliance reviews and exams as both the banker and the auditor. Describing her approach to compliance, Erica says, “Regulators push for a culture of compliance from the top down and recommend taking a risk-based approach. My goal is to make compliance part of everyday operations so it becomes second nature. This is achieved by being proactive and transparent and sharing knowledge and expectations with every member of the team.” Compliance First Banking Solutions is already making a positive impact in Kansas banks. Frank Carson IV of Carson Bank in Mulvane, Kansas, said, “We found ourselves in a quandary when the Bank’s compliance officer gave notice to begin a new position this past year. Finding a replacement, properly educating, and maintaining an existing, acceptable regulatory rating at a community bank is no small task. We called the Kansas Bankers Association for help and explained our dilemma; they had the answer. Kansas Bankers Consulting Services [editor’s note: now CFBS], a subsidiary of the KBA, is one of the greatest moves we have made in compliance. They have one of the most renowned legal departments in the nation. Well trained, up to date, a great staff that has worked well with all our people. Just what we needed, just what we expected from our KBA.” There is no “one size fits all” approach to compliance. Compliance First Banking Solutions will work closely with you to tailor a compliance solution to fit your Bank ’s needs. We offer a whole team of compliance experts that will reduce the burden on your employees so they can focus on serving your customers and community. If you are interested in the service, please contact Erica Friedt at efriedt@ksbankers.com. C潮瑩湵敤r潭⁰慧攠NN
Pub. 11 2022 Issue 1 13 Now in its 16th year, the Bank Leaders of Kansas (BLOK) Program is a leadership development program coordinated by the Kansas Bankers Association. The BLOK program is designed to improve the leadership skills of Kansas bankers, and accomplishes that goal through four primary objectives: 1. To increase the individual banker’s understanding and knowledge of the structure and governance of the KBA, including a complete overview of programs, services, and representation provided by the KBA. 2. To increase the individual banker’s understanding of the state and federal legislative process and increase their willingness to actively support and defend the Kansas banking industry. 3. To increase the individual banker’s understanding and awareness of the various state and federal agencies that govern the banking industry in Kansas and how those agencies interact with the KBA. 4. To improve the individual banker’s leadership and communication skills through professional development and leadership training sessions and provide a clear understanding of the individual banker’s role as a volunteer KBA leader. This year’s class will include a wide range of banking industry talent from across the state. Twenty-one Kansas bankers will participate in four BLOK training sessions to arm them with the knowledge and information needed to be credible and effective advocates for the Kansas banking industry. The first session is scheduled for Feb. 8-10 and will center on the 2022 Harold A. Stones Public Affairs Conference in Topeka. KBA Announces 2022 BLOK Class Members of the 2022 BLOK Class are: Brandi Archer, Consumer Loan Officer, First National Bank and Trust, Phillipsburg; Jennifer Caughron, SVP, Bank Card Manager, Bankers’ Bank of Kansas, Wichita; Nick Gideon, Lawrence Market President, Silver Lake Bank, Lawrence; Alex Greig, President of Insurance, Kansas Bankers Association, Topeka; James Hagedorn, Vice President, Loan Officer, United Bank & Trust, Seneca; Sam Jackson, Loan Officer/Assistant Vice President, First State Bank, Plainville; Jordan Lauer, SVP/Loan Officer/Investment Officer, Farmers State Bank, Westmoreland; Kyle Murrow, Assistant Vice President, Denison State Bank, Holton; Deron O’Connor, Chief Operating Officer, Astra Bank, Hays; Francis Scheuerman, UMB Bank, N.A., Kansas City; Garrett Sharp, Vice President, Community National Bank & Trust, Chanute; Clint Shoemaker, Vice President, Guaranty State Bank and Trust Co., Beloit; Lindsey Snider, Market President, Central National Bank, Junction City; Brock Stuhlsatz, Vice President/Loan Officer, Citizens Bank of Kansas, Derby; Greg Thiessen, Chief Credit Officer, First Bank of Beloit, Beloit; Cole Thompson, Investment Sales/Associate, BOK Financial, Overland Park; Kimberly Wallace, SVP/ Organizational Development, Equity Bank, Wichita; Lewis Walton, Compliance Specialist and Auditor, Kansas Bankers Association, Topeka; Trae Watson, Loan Officer, Heartland Tri-State Bank, Elkhart; Evan Whetzal, Vice President, First Heritage Bank, Seneca; and Joe White, Director — Premier Service, INTRUST Bank, N.A., Wichita. 2022 BLOK Sponsors are: INTRUST Bank, N.A., KBA Insurance, Inc., and Professional Bank Consultants, LLC
14 H o w t o f i g u r e o u t i f y o u r C o r e S o f t w a r e h a s b e e n S u n s e t (Without you knowing it) By Charlie Kelly, R em edy Consulting One of our senior directors got a call a few weeks ago from the CEO of a bank core provider. Mr. CEO complained that one of our consultants mentioned to a client that his core system was no longer being supported. The CEO passionately argued that our consultant used the term “sunset” with the client related to his core system. Now I can see why a software executive would be upset if a consultant told clients that his core was no longer viable, but software can stay in the market a long time in “maintenance” mode. So perhaps we should spend a few minutes on how software decisions are made at the core banking system providers. Let me explain. Over my career, I spent several years managing software development teams through the Project Management Office (or PMO), including quite a bit of time at a large core provider. One important thing I learned: not all software gets the same amount of attention from the development team and senior management. Think of it this way: software companies have only so many resources to allocate to software development each year. Software development is an expense for a core banking systems provider. Based on sales from the previous year, depending on how much profit the management team wants to take and how much they want to spend on developers, they budget how much ends up in that specific software development bucket. If you are a CEO or CFO managing the budget at your community financial institution, you fully understand the resource allocation issue at hand. You have choices to make. So, let’s use an example of how budget allocation works at a software provider. Let’s say a software provider has two main products in its software budget, and each of those products has three projects where they can allocate their software developers: Product A Maintenance on Product A New functionality (roadmap item) 1 New functionality (roadmap item) 2 Product B Maintenance on Product B New functionality (roadmap item) 1 New functionality (roadmap item) 2
Pub. 11 2022 Issue 1 15 First, it is important to understand that maintenance is required. You have no option but to make sure things like bug fixes, software outages, regulatory updates, and third-party interface updates are covered. The software needs to work as the financial institutions pay monthly fees. So, after you have enough developers to cover maintenance, the remainder of the budget can be allocated to new functionality. The previous example is extremely simplified because I have never seen a software product team with under 10-12 items on their development road map. But for simplicity’s sake, let’s say that 70% of the development budget of this theoretical provider goes to maintenance. That leaves Product 1 and Product 2 fighting over the remaining 30% of development time across the four new functionality roadmap items. Now, change the four roadmap items to 24 roadmap functions that clients clamor for, and you see the dilemma all software providers face. Which of those 24 projects will be funded this year, and which will have to wait another year? So, why do you, as a customer, care about this? Why do you need to know about development roadmaps and software developer allocation when deciding whether to keep or change your current provider? Here is why: Old software, once developed, is something of a cash cow. Customers pay for it either on a monthly or annual basis. If the software provider can convince its current customers to remain on the product and cover basic maintenance, everything else is profit — all the revenue — very low expense. It is only after enough customers leave that software platform and the revenues do not cover maintenance that the software provider needs to either sunset the product or migrate customers to a newer version. Oddly, it is in the software provider’s best interest to keep some products in “maintenance-only” mode. Older products are often their most profitable. You, the customer of a product gone into maintenance mode, have probably seen some of the signs of one of these cash cows: • Roadmap items never get finished. • You are paying for the provider to develop new functionality, which the provider can offer their other customers. • Quotes for customization or professional services seem exorbitant (they may not have the development team available to customize). • The only items in their development release notes appear to be maintenance or bug fixes. At Remedy Consulting, our business includes helping customers through Request for Proposals (RFP’s) and demonstrating new software products through our System Selections. Generally, a bank will start an RFP when they suspect their product is just not keeping up with the times, but they often do not recognize these signs of an under-maintained product until we discuss changing the software. Think about it: the software provider would be insane to tell their customers that the product they currently pay for is no longer at the top of their development priority list. They hope customers renew their contracts and that new functionality is less important to the current customers than the base model you have had for many years. Maybe what the customer pays for the software currently is cheaper than replacing it with another product. Continued on page 16 Old software, once developed, is something of a cash cow. Customers pay for it either on a monthly or annual basis.
16 Charlie Kelly is a Partner at Remedy Consulting and host of BankTalk Podcast. Remedy Consulting helps financial institutions (FI) thrive through specialized consulting services in System Selections, Core Contract Negotiations, Outsourcing/In-House Advisory, Bank Mergers & Acquisitions, and FI Strategic Planning. To learn more about Remedy Consulting, visit www.remedyconsult.net. So, let’s go back to Mr. CEO at the top of this article. If you were the CEO of a small core provider where profit margins are already tight, and then you lose some customers, now you hit the tipping point where you need to start laying off developers. Or, at a minimum, struggle to maintain the software without having the resources (or the interest?) to update new functionality. If this was a larger core, Mr. CEO could migrate his customers to a new product and officially sunset the older product. But smaller cores cannot do that, as they never had the resources to build a newer product. Mr. CEO is in a bad place, and although he didn’t declare a sunset of his product, he also has not built new functionality into the product. From our perspective, it would be hard to recommend the CEO’s core to one of Remedy’s clients in RFP mode. So, how can you use what we discussed? If you are responsible for making vendor decisions at your bank, keep an eye on the indicators above. If you realize that some software providers are not delivering on their roadmap items, decide what is important to you. If the product is not customer-facing, the price is low, and your team does not require cutting-edge functionality, that might be okay. Consider finding a consultant who knows market pricing during your next renewal and see if you can get a better deal. However, if a laggard product is client-facing or drives revenue for the bank, it may be time to look at other vendors to see what else is there. If you are already in the process of an RFP, have a product you like, but haven’t spent a lot of time on the product roadmap, consider talking to the vendor’s client references before buying and ask about that product’s history in developing new functionality. How many items have been delivered from the roadmap in the past 18 months? Please reach out if you are looking for help to determine if you need to complete a system selection. Continued from page 15
Pub. 11 2022 Issue 1 17 Tri-State Human Resources Conference 1EVGL (SYFPI8VII 3ZIVPERH 4EVO
18 Acareer as a next-generation bank leader offers opportunities in technology, digital marketing, customer relationship management, cybersecurity and more. As the banking industry evolves, your leaders must also adapt. Think about it, almost every aspect of a leader’s world has changed over the last few years. The way we lead and train needs to change too. Financial institutions have had to find a new way to reach learners. In a lot of cases, in-person training classes have been replaced with compliance training webinars. But does this new training vehicle make the same impact as in-person training? With over 40 years of experience, we’ve pulled together a list of why we believe webinars enhance and keep your compliance training programs engaging and current. Next Generation Bank Leaders Need to Lead Differently Because Workforce is Changing With Millennials making up a majority of the workforce, it’s important to note that typically millennials have a high expectation of how their companies should conduct business and what they stand for. Understanding this and adapting your leadership style to support this will help build a forward-thinking, nurturing, and inclusive workplace. Tips on How to Effectively Develop the Next Generation of Bank Leaders Give Workers a Voice Establishing employee engagement committees that meet regularly can provide your leaders with necessary feedback when reviewing company policies. A next-generation banking leader will take time to speak with employees. They make a point of listening to their employees and do this because they know it’s the key to reducing turnover. Next Generation Bank Leaders Embrace Tech With all the new fintech available on the market, the next generation of bank leaders needs to lead and coach their clients to adopt new tech. According to a Deloitte report, 57% of millennials surveyed would change their bank relationship if another firm offered a better technology platform. Ironically, at the same time, the report showed that 84% of millennials seek financial advice (and knowledge). Don’t Get Behind – How to Develop the Next Generation of Bank Leaders By OnCourse Learning
Pub. 11 2022 Issue 1 19 Similarly, next-generation leaders are digital natives accustomed to (and even enjoy) eLearning. Attending a webinar or accessing an eLearning course is a comfortable learning format. In fact, technological advancements have made eLearning easier than ever before. Participants can attend from anywhere they have an internet connection — computer or phone, at home or in the office. Additionally, training admins can now more easily track participation with training webinars. Rather than having paper sign-in sheets on clipboards, which need to be manually added to your LMS, eLearning and training webinars track participation digitally. With just a click, you can track who attended. Build Career Paths and Ladders Provide an outline to training programs by career track to provide clarity on what is required to reach the next level of leadership. Every teammember should have a plan for self-development, department development, and ultimately how the overall business goals will be met. Enable Access to Unique and Meaningful Training Millennials seek learning opportunities differently than older generations. They seek continual ways to improve their work and make a big impact. By providing them ondemand and high-quality training content, millennials control which skills they want to work on and which ones fit into their day-to-day. This method will fit seamlessly into the work your next generation leader is already doing — getting them ready for the future. Enable Your Current Leaders to Be Good Coaches Empower your teams to empower their teams. By investing in your current leader’s coaching skills, they can, in turn, help develop the next generation of bank leaders. Every interaction with their own direct supervisor, an employee in the training department or a member of senior leadership could change into an opportunity to develop leadership skills and strategic thinking. Close the Experience Gap Leaders who are confident and have experience develop these skills over time. To close that gap, you must frequently engage all potential next-generation bank leaders to be involved in institution problem-solving. Becoming an experienced leader comes with just that, experience. The Future Since COVID-19, financial institutions have had to innovate and adapt to compliance training. Adding variety to your training mix, including webinars, can keep your employees engaged and compliant. At BankWebinars.com, industry experts from all over the country share their expertise and knowledge. Compliance training webinar attendees hear firsthand from industry experts and gurus on targeted, relevant and timely topics. The key to your institutional success is to develop your next generational bank leaders to be prepared for the future of banking. Provide them the training and coaching today that they will need in the future. Millennials seek learning opportunities differently than older generations. They seek continual ways to improve their work and make a big impact.
Are you looking for a fresh approach to your current training program? Complement Your Training with Bank Webinars presented by OnCourse Learning, a partner of Kansas Bankers Association. Webinars offer the convenience of online training while providing the opportunity for attendees to engage with the presenter. In addition to hundreds of online compliance and professional development courses, our members also have access to more than 450 webinars delivered by industry professionals on critical topics. Many live webinars are CAMS and CRCM accredited. Training from the Frontline to the Boardroom - popular webinar topics include: • Compliance • IRAs • Commercial Lending • Banking for Beginners Complement Your Training with Bank Webinars • Bank Secrecy Act • Cybersecurity • Diversity and Inclusion • And hundreds more! Get Started Today! Brenda L. Unruh, Senior Vice President Director of Education & Conferences | Member Services Kansas Bankers Association (785) 232 - 3444 www.ksbankers.com Reduce Your Training Cost with a Webinar Subscription Service If your organization attends just five webinars per year, a webinar subscription package may be right for you. BUY MORE • SAVE MORE Subscribe to the number of webinars right for your organization and save 12-40%. The more you buy, the more you save! Check out our upcoming webinars at bit.ly/kansasbankers Very informative! I will be re-listening to absorb all the great information. Kitrina K. BankWebinar.com | Attendee
Pub. 11 2022 Issue 1 21 MOKAN 43RD ANNUAL May 11 - 13 Sheraton Overland Park Hotel & Convention Center Overland Park, Kansas For more details and registration information, please visit our website at mokantrustconf.com For more information or for a full program, please contact: LeAnn Mott, Assistant Vice President Education & Conferences | Kansas Bankers Association Phone: 785.232.3444 | lmott@ksbankers.com TRUST & FINANCIAL SERVICES CONFERENCE Christopher Nekvinda, PhD Senior Vice President, Director of Global Learning Operations Cannon Financial Institute Jeffrey Levine, CPA/PFS, CFP®, CWS®, MSA Director of Advisor Education Kitces.com James Olson Bush School of Government and Public Service Texas A&M University Mark Zinder Mark Zinder & Associates
22 Your do-everything HR professional just left the bank. Now what? Does your bank’s human resources department consist of one person in charge of other important facets of the organization, such as payroll processing and accounting? If this hits home for you, think about what happens if that person leaves your bank. You suddenly find yourself in need of solutions and quick. How you proceed can be a make-or-break decision for you and your organization. You could choose to parcel out those functions to another person who likely already wears several other hats within the bank and add more to his or her already full plate. That may be a short-term fix but could end up causing more trouble than it is worth in the long run. Hiring a replacement makes sense if you can find the right person and get them trained in short order. That in and of itself may prove difficult amid all of the hiring challenges employers have faced over the past year. An optimist will be confident in the ability to overcome those challenges and find someone who will expertly handle HR and various other functions of your day-to-day operations. But you may take a more pessimistic view to prepare yourself for a worst-case scenario of that person ending up not being a good fit or leaving your bank for another job opportunity. Then, you are right back where you started. Why your bank needs HR The field of human resources has become increasingly complex. In a broad sense, HR is an important component in how an organization’s culture is developed, reinforced and in some cases changed if necessary. Then, there are the responsibilities of attracting and retaining top talent. Additionally, HR professionals are involved with pay, employee performance management, and understanding and correctly applying a myriad of employment law regulations. The latter has taken on an even greater significance during the COVID-19 pandemic, with frequently changing guidance on how or whether new laws will be applied — correctly to ensure compliance — in the workplace. Is your bank equipped to handle sexual harassment and employment discrimination claims? How about wrongful termination or unemployment claims? These are among the various reasons why a dedicated HR professional should be considered essential and not a luxury for small and mediumsized businesses. Too much is at stake for your bank to not take HR seriously. The Society for Human Resource Management (SHRM) recommends employers take on a dedicated HR professional once the business reaches 15 employees. Perhaps you appoint an HR person or group of people in house. Maybe it’s a third party handling HR on behalf of your organization. In some cases, a mix of the two may make sense for your bank. HR outsourcing is becoming an attractive alternative for Kansas banks. It takes many of your bank’s administrative tasks off your hands, which allows you to focus on growing the organization and serving Kansas communities. An outsourced HR provider also can handle payroll processing, employee benefits administration and assist with your staffing needs. HR outsourcing also gives you a team of easily accessible and highly trained professionals who are always looking out for your bank. Bank leaders who outsource their organization’s HR say they appreciate that the relationship is treated like a partnership, giving them added peace of mind yet doesn’t dictate how to run the organization. Ultimately, you have to decide the HR structure that best fits the needs of your bank. But don’t leave one of your bank’s most important operational aspects to chance. About the author: Josh Heck is Syndeo’s marketing manager. Reach him at jheck@syndeohro.com or by phone at (316) 440-9940. 䉡湫猠慮搠 䡵浡渠剥獯畲捥s By⁊osh⁈散k,⁓yn摥o
Pub. 11 2022 Issue 1 23 Order deadline is July 25, 2022 2023 Scenes of Kansas Calendar Order Form Name __________________________________________ Use same imprint from the 2022 Scenes of Kansas Calendar Bank ___________________________________________ Updated or new calendar imprint (imprint area 3/4” x 10 3/4”) Address _________________________________________ ______________________________________________________ City, State, Zip ___________________________________ ______________________________________________________ Phone __________________________________________ _______________________________________________________ E‐mail__________________________________________ Include logo on imprint (E‐mailing digital File or mailing image) �uan�ty _______________________________________________ Mail, e‐mail or fax orders to: Julie Taylor | Kansas Bankers Services, | P.O. Box 4407, Topeka, KS 66604‐0407 | 785‐232‐3484 fax Background photo taken by Gracie Bronson, Wife of Eric Bronson, The Peoples Bank, Pratt For the 24th consecu�ve year, the Kansas Bankers Associa�on is offering its heartwarming Scenes of Kansas Calendar, which celebrates Kansas’ beauty and highlights your bank at an affordable price. What sets this full‐color calendar apart is the personal way in which it is created. Photos chosen for the calendar are taken by Kansas bank employees, execu�ve directors and their immediate families. Landscapes, seasons, Kansans, events—all images inspire and evoke a warm feeling of Kansas. Your bank’s name, and if you prefer, your bank’s logo will appear along the bo�om edge of each calendar, remaining in full view throughout the year. Fill out and return the form below by mail, e‐mail or fax. A proof will be e‐mailed prior to prin�ng. New orders or those making changes to their imprint should send a sample imprint, or list imprint informa�on below. Imprint area is 3/4” x 10 3/4.” Imprint will be printed in your choice of black or color at no addi�onal charge. To include your logo, please e‐ mail a high‐resolu�on EPS file (300 �PI) or mail a high‐quality printed image with your order. Order deadline: July 25, 2022. You will be billed when your order is shipped to you. Calendars will arrive in or before the first week of November 2022. Cost is $1.15 per calendar, plus shipping and tax. Minimum calendar order is 50. Call Julie Taylor at 785‐232‐3444 or e‐mail jtaylor@ksbankers.com with ques�ons. How to order:
24 BRIEFLY IN KANSAS BANKING Bankers Are Reappointed to the Kansas Housing and Kansas Development Finance Authority KDFA president Rebecca Floyd and KHRC Executive Director Ryan Vincent announced that Suchitra Padmanabhan and Chris Donnelly were reappointed to serve another term on the Kansas Development Finance Authority (KDFA) and Kansas Housing Resources Corporation (KHRC) board of directors. In addition, two newmembers were appointed by Governor Laura Kelly and confirmed by the Kansas Senate Confirmation Oversight Committee last year. They are Wichita nonprofit director Moniqueka Holloway and Topeka attorney Jonathan Small. Suchitra Padmanabhan serves as chair of the KDFA and KHRC boards and was reappointed this year, becoming the first board member in the group’s history to serve three terms. A certified financial analyst, she currently works for BC Capital, where she created an asset management platform for fixed income investments and provides advisory services to private equity funds. Previously, she served with Security Benefit Group, Deutsche Bank and Lehman Brothers. She holds degrees from Dartmouth College and the University of Chicago. Chris Donnelly, a banking executive from Tonganoxie, was reappointed for a four-year term. Recently retired as president and CEO of the Bank of the Prairie in Olathe, he has held executive leadership roles with Country Club Bank of Kansas City, Mo., First State Bank and Trust of Tonganoxie, First Security Bank of Overbrook, and Home State Bank of Hobart, OK. He is a graduate of Oklahoma State University. Hays banking expert, Alan Deines, was appointed to the board in 2020 and continues his service. Neal Kaiser New Ag Lender at The Citizens State Bank Neal Kaiser has joined The Citizens State Bank as an ag lender. Working at its Goessel branch, Kaiser is a graduate of Kansas State University with a Bachelor of Science degree in Agronomy. He grew up in Lehigh but has Goessel ties as both of his mother’s parents were born near there. “I’ve heard very good things about The Citizen State Bank through friends and family,” he said. “It feels like the right move to become a part of that experience for myself and also to help others with their agriculture needs.” Kaiser will handle a variety of ag lending needs for area customers, including operating lines of credit, input lines and equipment. “Neal’s experience in the field of agriculture will make him an important part of our lending team,” said Kirby Smith, market president in Goessel. “He understands the unique skills it takes to operate an agri-business.” In addition to his banking role, Kaiser helps manage a 2,000acre farming operation that includes crops, hay and pasture. Bankers from Bank of Labor in KC Recognized for Sponsorship During a National Association of Asian American ProfessionalsKansas City (NAAAPKC) Holiday Soiree on Dec. 2, 2021, Bank of Labor bankers Pang Lo, Mai Lee, Mary Buche (SVP) and Piia Perales were honored to be recognized for Bank of Labor’s sponsorship of NAAAP-KC. Buche found this group to provide ERG support for some minority employees but found a lack of representation in senior and board positions of Asian American females and males in the banking industry. She has seen increases in the east and west coast, but the Midwest is behind in representation. The NAAAP-KC is a nonprofit, all-volunteer organization that promotes career advancement opportunities and professional leadership development of Asian American professionals in all fields. The Kansas City Chapter hosts various activities (Happy Hours, networking dinners, cultural events, workshops, etc.) throughout the year to allow members to engage with NAAAP-KC and accomplish everything they can to become part of their organization.
Pub. 11 2022 Issue 1 25 “As an Asian American female in banking, yes, I have felt a lack of belonging,” Buche said. “This group provides a sense of belonging. It was especially important after the increase in violence against the Asian community, and Asian Americans are still being labeled as foreigners.” Buche said communities need to acknowledge what is happening in our communities that affect employees and the bank, and if the bank doesn’t have those resources, they can find groups to provide support through organizations such as NAAAP-KC or Young Latino Professionals, for example. Barta Joins Citizens State Bank Rachael Barta joined the staff as a loan officer at the Citizens State Bank & Trust Co. in Ellsworth as of Nov. 1. Barta brings 12 years of bank experience from a previous bank where she worked in the accounting and operation departments. At Citizens Bank, she will be offering all types of lending, including consumer, business, personal and agriculture. “We are very pleased to have Rachael join us,” said David Brownback, CSB&T president. “She has hit the ground running and will be a tremendous asset to our team.” Barta and her husband, Brad, have two children: Coulson, 11, and Kynzie, 9. In her spare time, she enjoys golfing, attending her children’s sporting events and being outside whenever possible. Two Banks Come Together to Serve Local Market Community Bancshares, Inc. (CBI), the parent corporation of Community National Bank, announced they completed the acquisition whereby BOTS, Inc. has become a part of Community Bancshares’ Banking Organization. BOTS, Inc. is the parent company of VisionBank. Community National Bank (CNB) President and CEO Dorsey Hall said, “We are very happy to complete this transaction and have the professional team of VisionBank join our company. The leadership and board have operated a very successful bank. VisionBank will be a great addition allowing CBI/CNB to expand our Kansas family of customers. As we stated in our original announcement, we believe the culture, the customers and the staff of VisionBank fit into CNB’s culture perfectly.” CBI plans to merge the two banks midyear 2022. Gary Yager, President/CEO of VisionBank, reiterated, “I personally take pride in this transaction as I believe it the best for both our customers, we work so hard for and our staff.” Alden State Bank Celebrates Retirements of Rowland, Frederick with Open House The Alden State Bank celebrated the retirement of Tom Frederick and Janiece Rowland with an Open House Friday, Dec. 10. Alden State Bank President Todd Rowland shared some history of the bank, noting that his grandfather, Fred L. Fair began working for the Alden State Bank as a cashier in December, 1939. He purchased controlling interest from J.H. (Jim) Fair in 1947 after returning from his service in World War II. Fair hired T.N. (Tom) Frederick March 1, 1958, after Frederick returned to Alden from his service in Germany. Frederick started as an Executive Vice President and focused on lending and selling insurance through the Alden State Agency. He was awarded the prestigious Kansas Bankers Association “50 Year Club” in 2008. Since 2008, Frederick has been selling insurance through the Alden State Agency in Alden. “Tom has always been a part of the Alden State Bank family and has been walking in and out of the doors in Alden for over 60 years. Tom’s many hats that he wore at the bank and his decades of service to the Alden community on the city council make his knowledge of local history unparalleled,” Todd Rowland said. Janiece (Fair) Rowland started at the Alden State Bank in her youth, cleaning the bank with her sisters Sondra and Arlene. As she grew older, she would work the teller line in the summers and during school breaks. Janiece and her husband Chuck Rowland returned to the Alden community in August 1984 to run the Alden State Bank when Fred (and his wife Alma) Continued on page 26
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