THE OF F I C I AL PUB L I CAT ION OF KANSAS BANKE RS ASSOC I AT ION | MARCH/APR I L 2022 I SSUE 2 2022 2022 BANK LEADERS OF KANSAS CLASS CONVENES FOR SESSION 1 Page 18
Don’t let bad news spoil a good day. Your customers rely on you to avoid surprises when it comes to their finances. You’ve put in the time and effort to build a solid reputation, but a cybersecurity breach can result in significant damages to your institution and your customers. BKD Cyber knows the financial services industry and can assist with your needs, so you—and your customers—can have peace of mind. Everyone needs a trusted advisor. Who’s yours? 316.265.2811 • 816.221.6300 • bkd.com • @BKDLLP
4 Executive DougWareham, President andCEO Kathy Taylor, EVP, General Counsel Terri D. Thomas, EVP, COO Administration AlexOrel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Mary Taylor, SVP, Communications andMarketing Julie Taylor, VP, Computer and Information Systems Sara Blubaugh, VP, ExecutiveAssistant to the President andCEO BreeMagee, Communications &MarketingCoordinator LynneMills, Receptionist/Special Projects Education and Conferences Brenda L. Unruh, SVP, Director, Education & Conferences/Member Services BeckyMilne, VP, Education&Conferences LeAnnMott, AVP, Education&Conferences NatalieWareham, Event Coordinator Insurance AlexGreig, President, KBA Insurance, Inc. Kent Owens, SVP, KBA Insurance, Inc. Elizabeth Roche, SVP, Employee Benefits Administration Jenny Figge, VP, Operations Cari Charter, AVP, KBA Insurance, Inc. Legal/Compliance Jackie Kuhn, VP, Staff Attorney GwenHill, VP, Staff Attorney AllisonCarpenter, VP, Legal DepartmentManager Bobby Young, VP, Staff Attorney/ IT andHRConsultant Dylan Serrault,Compliance First Banking Solutions, LLCManager Adeel Syed, AVP, Staff Attorney Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kelly VanZwoll, AVP, Staff Attorney and Government Relations KerryClark, Staff Attorney and Publications Editor LewisWalton, ComplianceAuditor Erica Friedt, ComplianceOperations Specialist MeridithDeForest, Administrative Legal Assistant Koren Kabriel, PT Administrative Legal Assistant © 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 20 6 With Rates on the Rise, New Loan Deposit Program Could Benefit Your Customers Kelly VanZwoll, JD, AVP-Staff Attorney and Government Relations, KBA 8 Washington Update Leaders in Financial Literacy: Bankers Celebrate 25 Years of Teaching Children to Save Rob Nichols, President & CEO, American Bankers Association 10 2022 Bank Technology Conference & Showcase 14 2022 KBA’s Harold A. Stones Public Affairs Conference 18 2022 Bank Leaders of Kansas Class Convenes for Session 1 20 Leaders in Their Field 2022 Kansas Ag Bankers Conference Harvests Great Turn Out 24 Picturing Kansas 26 Briefly in Kansas Banking 29 In Memory 31 Education Calendar 32 Public Pension Update Dana Sparkman, The Baker Group 34 How To Adapt Recruiting Strategies For An Employee-Centric Market Josh Heck, Syndeo
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 The Kansas Economic Recovery Loan Deposit Program became law in April 2021 as part of SB 15, the Kansas Bankers Association’s push for the Kansas version of Enhancing Credit Opportunities in Rural America (ECORA). The program provides $60 million in idle state funds available for Kansas banks for the purpose of lowinterest loans to small commercial or agricultural businesses in Kansas. These idle state funds are under the control of the Office of the State Treasurer and the Pooled Money Investment Board (PMIB). Right now, there is $59 million available and ready to be deployed. Leonard Wolfe, President and Chairman of United Bank & Trust in Marysville, would encourage Kansas bankers to get involved in the program says, “United Bank & Trust enrolled in this program for the benefit of our community and bank customers. Right now, with interest rates being low and liquidity high, we are not experiencing high demand but fully anticipate more requests in the future as the interest rate environment shifts. Our customers will need it, and we know it works.” The availability of low-cost credit is vitally important to Kansas businesses, including farmers and ranchers, as shuttered storefronts, a disrupted energy sector, and a slow supply chain have caused a ripple effect that will negatively impact the cash flows of agricultural operators and small businesses for the foreseeable future. The Kansas Economic Recovery Loan Program will promote business growth, stimulate job creation, and incentivize financial institutions to extend credit to small business borrowers. Surrounding states, such as Missouri, Oklahoma and Iowa, have similar programs currently infusing hundreds of millions of dollars into businesses in their respective states. Kathy Schwerdtfager, EVP/Chief Credit Officer at The Bank of Tescott, sees this program as another way to help your customers and stay competitive, says, “We are excited to partner with the state to be able to offer the program to the small commercial or ag businesses within our communities. We have had a good history of working with the State Treasurer’s office with the Kansas Agricultural Loan Deposit Program and saw this as an opportunity to have another “tool in our toolbox” to assist borrowers in the markets we serve. With Rates on the Rise, New Loan Deposit Program Could Benefit Your Customers By Kelly VanZwoll, JD, AVP-Staff Attorney and Government Relations, KBA
Pub. 11 2022 Issue 2 7 Kelly VanZwoll, JD, AVP-Staff Attorney and Government Relations In addition, the program allows us to be more competitive on interest rates, in a changing interest rate environment.” Kansas Economic Recovery Loan Deposit Program 101 Can my financial institution participate? The program is open to any bank that agrees to participate and is eligible to be a depository of state funds. Who is an “eligible borrower”? Any individual or entity operating a business primarily for commercial or agricultural purposes. The business must maintain operations and transact business in Kansas and employ less than 200 fulltime employees. What are the terms of the loan? Loans are limited to $250,000 to be repaid over a period of up to 10 years. Loans are deposited in Kansas financial institutions at 2% below market, or a minimum of 25%, and financial institutions can charge an additional 3% on top of the deposit rate. Only one economic recovery loan deposit can be made and be outstanding at any one time to any eligible borrower. Although you can only do one economic recovery loan, you can still do an additional agricultural loan for the same borrower. The borrower’s rate will be re-calculated annually by the PMIB. For more information or to sign up for the Kansas Economic Recovery Linked Deposit Loan Program or the Agricultural Loan Deposit Program, go to kansasstatetreasurer.com/fin_serv.html. Policy preparation and review for: deposits, lending, operations, safe deposits, trusts, bank security, Bank Secrecy Act & information technology Loan and Account documentation review Assistance with drafting basic transactional forms and agreements Access to Quarterly Compliance Forum Advertising and website review Compliance and legal consultations for bank transactions and HR Issues If you are interested, please email kbcs@ksbankers.com. If you have any questions regarding the content of this advertisement, contact Terri Thomas, J.D. at (785) 232-3444. SERVICES OFFERED BY
8 Leaders in Financial Literacy: Bankers Celebrate 25 Years of Teaching Children to Save WASHINGTON UPDATE By Rob Nichols, President & CEO, American Bankers Association P roviding children with a strong base of financial knowledge is critical to helping them unlock their financial future and prosper as adults — and bankers are uniquely positioned to play a role in that process. This year, the ABA Foundation celebrates a major milestone as we commemorate the 25th anniversary of the Teach Children to Save financial literacy initiative. Since 1997, Teach Children to Save has brought students in grades K-8 important lessons about money and real-world financial concepts — from saving and spending to budgeting and keeping their money safe. With the help of bankers nationwide, Teach Children to Save has reached a total of 9.5 million students to date. (If you’re looking for something to compare that to, it’s roughly the number of people who live in the state of New Jersey.) Add in the ABA Foundation’s other financial education program for teens and college-age students, Get Smart About Credit, and that number grows to almost 11.8 million children and young adults who have benefitted from the foundation’s financial education curriculum (that’s a population roughly equivalent to the population of Ohio). Teach Children to Save began by providing bankers with tools and resources to enable them to take lessons on financial literacy topics into classrooms in their communities. Over the years, it has evolved
Pub. 11 2022 Issue 2 9 This year, the ABA Foundation celebrates a major milestone as we commemorate the 25th anniversary of the Teach Children to Save financial literacy initiative. Email Rob Nichols at nichols@aba.com. and adapted to changing needs and preferences of younger generations — including pivoting to be heavily focused on virtual learning during the COVID-19 pandemic. This year, as the program celebrates its “silver jubilee,” the foundation is placing a particular emphasis on bringing financial education to students through video and will be rolling out three short videos this spring designed to deliver engaging, age-appropriate lessons by grade level. (And speaking of video, students also have the opportunity to participate in the foundation’s Lights, Camera, Save! program, through which they channel their creativity and produce their own video showcasing their financial knowledge. Learn how your bank can get involved at no cost by visiting aba.com/LightsCameraSave.) In honor of Financial Literacy Month, the foundation observes Teach Children to Save Day in April, but bankers’ efforts to raise awareness about financial education are by no means confined to one day. In fact, Teach Children to Save encourages bankers to advance financial literacy throughout the year in whatever way they choose. To help banks engage on social media channels, the foundation has created a free Teach Children to Save communication toolkit for participating banks to use. The kit includes everything from social media posts, letter templates and graphics — everything your bank needs to spread the word about financial education. As we work toward the collective goal of increasing financial health in the U.S., reaching out to young people is a great step bankers can take. When bankers engage with the younger members of their communities, it does more than simply provide students with the “nuts and bolts” of financial education — it allows them to interact with their local bank and understand that the two million women and men working in the banking industry are invested in their success. They have the opportunity to see bankers as teachers, experts and as trusted resources in their communities, and they can begin to see the value of having a relationship with a bank. With all of the financial hardships families have experienced over the past two years, it’s more important than ever that the next generation is given the tools and knowledge they need to make prudent financial choices as they grow up. And so, I hope each and every one of you will make the commitment this year to join with the ABA Foundation, take advantage of all the free resources available, and participate in Teach Children to Save and our other financial education initiatives. With your help, we can keep these programs going strong for another 25 years and beyond. To learn more and register for Teach Children to Save, visit aba.com/teach25. For questions on the ABA Foundation’s financial literacy programs, contact ABA’s Jeni Pastier at jpastier@aba.com.
10 Over 200 bankers and vendors gathered February 7-8 at the Wichita Hyatt Regency Hotel for the 26th Annual Bank Technology/ Operations Conference & Showcase. The conference kicked off with a facilitated peer group discussion period where bankers divided up based on the asset size of the bank. Discussion groups were assigned as $100 million and under, $101-$200 million, $201-$400 million and over $400 million. Following opening remarks by current KBA Chairman Mike Ewy, Cybersecurity Expert at Secure Network Technologies, Inc., Steve Stasiukonis provided an eyeopening talk on how hackers leverage a variety of techniques to defeat the remote worker and defeat security controls. It’s not a matter of “IF” but rather “WHEN.” Most banks have no idea what to do when they experience a cyber incident, but for IT professionals, a cyber incident is the worst day of their career. The last general session of the day brought Kansas banker Suresh Ramamurthi of CBW bank in Weir to the stage where he gave an in-depth discussion on various neo banks such as Square, Chime, Varo, Money Lion, and their journey and what it means for banks and how to position them. KBA Technology Committee Chairman Jeff Martin, First Heritage Bank in Centralia, welcomed the group to day two of this annual event and introduced one of KBA’s highest-rated presenters Lee Wetherington. In his presentation, “Financial Fragmentation: Threat and Opportunity,” Wetherington shared how ecosystem disruption continues. In pursuit of more convenience in their financial lives, consumers have unintentionally made them more complex to manage. It is not uncommon for young couples to do business with 30 to 40 financial providers. The good news is that banks are well-positioned to solve financial fragmentation, simplify customers’ financial lives and achieve first-app status in the process. The pandemic has changed multiple facets of our lives, from the way we shop, socialize, work, educate and even conduct our financial transactions. During the last presentation of the conference, Dave DeFazio, Partner with StrategyCorps, pointed out that “the pace of change is off the charts … During the quarantine period, nearly 33% of consumers in the U.S. tried contactless payments for the first time.” Even before the pandemic, mobile apps were reshaping the way consumers, especially millennials, interacted with financial institutions, and Dave emphasized that trend is accelerating. Dave also discussed the latest research that highlights the trends in this area, including which mobile features matter most to millennials, baby boomers and everyone in between. There was also an interactive trade show with 37 exhibitors ready to demonstrate a multitude of products for the industry. Conference participants were afforded numerous opportunities to talk with showcase exhibitors throughout the course of the conference, making them eligible for prizes. The 2023 Bank Technology Conference and Showcase will be held February 10-11 at the Wichita Hyatt Regency Hotel. 2022 Bank Technology Conference & Showcase
Pub. 11 2022 Issue 2 11 Continued on page 12 Kaylene Plummer (Farmers State Bank, Westmoreland) and Kathleen Berman (Graduate School of Banking at the University of Wisconsin-Madison) Lee Wetherington of Jack Henry during his presentation, “Financial Fragmentation: Threat and Opportunity” KBA welcomes first time exhibitor Ed Mitchel (Kansas Fiber Network)
12 Continued from page 11 Damon Gardner (TransFund) and Brice Feldt (Silver Lake Bank, Topeka) Suresh Ramamurthi (CBW Bank, Weir) and KBA Chairman Mike Ewy (Community State Bank, Coffeyville) chat prior to Suresh’s presentation
Pub. 11 2022 Issue 2 13 Dave DeFazio with StrategyCorps closed the conference with his session “King of the Hill – Mobile App Edition” Johnny Hulse and Lance Labedelle (KBA Endorsed Vendor CalTech) Bank Technology Committee Chair Jeff Martin (First Heritage Bank, Centralia), Eric Reed (Community National Bank & Trust, Chanute) and KBA’s SVP Education and Conferences Brenda Unruh Thank You to these 2022 Bank Technology & Operations Conference Sponsors!
14 KBA Chairman Mike Ewy, Community State Bank in Coffeyville, welcomed the nearly 150 Kansas Bankers to the Topeka Country Club for the 2022 Harold A. Stones Public Affairs Conference on February 9 after a threeyear interruption because of COVID. Bankers were clearly energized to see each other and come together to advocate on behalf of the industry before state policymakers. The group welcomed the day's first presenter, Kansas Gubernatorial candidate and Kansas Attorney General Derek Schmidt. He acknowledged the critical role that banks played in deploying billions of dollars of PPP funds to small businesses across Kansas, which helped businesses not just stay alive, but for some, even thrive during the pandemic. However, he cautioned that while the state general fund is looking very healthy and that there needs to be some action on tax policy and helping fund the Kansas Public Employee Retirement System (KPERS), the legislature needs to remain diligent in their discussions with so much uncertainty that continues to exist. He concluded his remarks by talking about his office's work on a constitutional amendment that would give the legislature more power over regulations proposed and enforced by regulatory agencies. Next in the line-up was special guest Kansas Governor Laura Kelly. She began her address by thanking bankers across Kansas for continuing to help their communities during the pandemic. She touted her administration's work on the first state housing study in decades and the need for legislation in this session to address the shortage of housing in both rural and urban communities. She hoped it would lead to more houses available to enable the state to bring more jobs to various communities. Governor Kelly also highlighted her administration's work on trying to land the mega $4 billion economic development project, otherwise known as Attracting Powerful Economic Expansion Act (APEX). This year's information-packed conference included a state legislative leaders panel discussion moderated by KBA's AVP 2022 KBA's Harold A. Stones Public Affairs Conference ABA VP — Congressional Relations Dan Martini provides an overview of ABA’s initiatives at the Federal level KBA EVP-General Counsel Kathy Taylor and current KBA Chairman Mike Ewy (Community State Bank, Coffeyville) host a fireside chat with Acting Comptroller Michael J. Hsu Patrice Newton And Jim Echols (Renaissance Management & Training Solutions) BLOK alumni Jonathan Holmes (Valley State Bank, Belle Plaine) and current BLOK class member Francis Scheuerman (UMB Bank, Kansas City)
Pub. 11 2022 Issue 2 15 Continued on page 16 — Government Relations & Staff Attorney Kelly VanZwoll. The panel showcased different views on how the state legislature should address tax reform, redistricting, KPERs funding, and best practices for getting engaged in the political process. Panelists included Senate Majority Leader Larry Alley (R-Winfield) and Senate Minority Leader Dinah Sykes (D-Lenexa). House Majority Leader Dan Hawkins (R-Wichita) and House Minority Leader Tom Sawyer (D-Wichita) were scheduled to participate, but couldn’t make it due to legislative floor work. Following lunch, KBA President & CEO Doug Wareham and KBA Board Chairman-Elect Shan Hanes of Heartland Tri-State Bank in Elkhart hosted a panel discussion with ABA VP-Congressional Relations Dan Martini. Martini talked about the status of KBA supported Enhancing Credit Opportunities in Rural America Act (ECORA) which would provide an exemption from federal taxation, agricultural real estate, and rural home loans. Martini also talked about the status of President Biden's nominees before the U.S. Senate and his thoughts on what Congress will look like after the 2022 election. The 2021 Bank Leaders of Kansas (BLOK) class finally received recognition for completing the BLOK training regimen after two years of rescheduling and patience due to COVID-19. They were presented the traditional BLOK awards from KBA Board Chairman Ewy. The 2022 BLOK class also attended the conference as part of their first training session in the year-long program. The class also had an opportunity to participate in KBA's Board meeting and visit the statehouse to be recognized by Kansas Senate and Kansas House leaders. KBA President and CEOWareham and Alex Orel, KBA's SVP — Government Relations, provided bankers with updates on KBA's state and federal legislative issues. In addition, Wareham gave a federal election outlook and updated attendees on other Current KBA Chairman Mike Ewy (Community State Bank, Coffeyville) and Kansas Governor Laura Kelly Grant Paitz (INTRUST Bank, NA, Wichita) and Dan Bolen (Bank of Prairie Village, Prairie Village) Acting Comptroller of Currency Michael J. Hsu and KBA EVP & General Counsel Kathy Taylor Kansas Attorney General Derek Schmidt, Natalie Haag (Capitol Federal® Savings Bank), and KBA President & CEO Doug Wareham Craig Heideman (Kaw Valley Bank, Topeka), Patrick Wiederholt (Flint Hills Bank, Hartford) and District 17 Rep. Jeff Longbine
16 Continued from page 15 legislation, including legislation to provide regulatory relief on the community bank leverage ratio, the current state of the IRS reporting proposal, and efforts to oppose postal banking. Mr. Orel gave a state election outlook and updated attendees on statehouse efforts to reduce the tax burden on KBA's Association Health Plan, increasing penalties for ATM "smash-and-grabs," modernize the Kansas trust code, and efforts to make housing development more attainable. Following the issues update, KBA's EVP & General Counsel Kathy Taylor and KBA Board Chairman Ewy welcomed Acting Comptroller of the Currency Michael J. Hsu to Kansas. This was the first time an OCC Comptroller has attended the Public Affairs Conference. Ewy and Taylor held a fireside chat with Comptroller Hsu, where he highlighted initiatives in Washington D.C. and within the OCC. In addition, Mr. Hsu talked about the banking industry's challenges that keep him up at night, bank capital ratios, fintech companies growing into the banking space, and CRA. After the fireside chat, Mr. Hsu held a separate roundtable with those national bank participants in attendance. The day concluded with a packed special legislative reception for bankers, state legislators, staff, and other state leaders at the Topeka Country Club. Thank you to everyone that made it to Topeka in February, and it was great to see everyone. Go ahead and mark your calendars for next year's Public Affairs Conference, scheduled for Feb. 8, 2023, at Topeka Country Club! ... while the state general fund is looking very healthy and that there needs to be some action on tax policy and helping fund the Kansas Public Employee Retirement System (KPERS), the legislature needs to remain diligent in their discussions with so much uncertainty that continues to exist.
Pub. 11 2022 Issue 2 17
18 KBA started the Bank Leaders of Kansas (BLOK) program in 2006 with a vision of developing Kansas bankers and exposing them to a wide range of topics that influence the industry while building a collaborative networking community. The 16th BLOK class convened for their first session in Topeka at the KBA Office on Feb. 7, 2022. This year’s class is comprised of: 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, SVP — Capital Markets Division, 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 2022 Bank Leaders of Kansas Class Convenes for Session 1 The 2022 BLOK Class pauses for a photo during a tour of the Kansas Statehouse. Pictured left to right are: Cole Thompson, BOK Financial, Overland Park; Deron O’Connor, Astra Bank, Hays; Jordan Lauer, Farmers State Bank, Westmoreland; Trae Watson, Heartland Tri-State Bank, Elkhart; Greg Thiessen, First Bank of Beloit, Beloit; Nick Gideon, Silver Lake Bank, Lawrence; Evan Whetzal, First Heritage Bank, Seneca; Kimberly Wallace, Equity Bank, Wichita; Garrett Sharp, Community National Bank & Trust, Chanute; Lewis Walton, Kansas Bankers Association, Topeka; Brock Stuhlsatz, Citizens Bank of Kansas, Derby; Jen Caughron, Bankers’ Bank of Kansas, Wichita; Brandi Archer, First National Bank and Trust, Phillipsburg; Lindsey Snider, Central National Bank, Junction City; Alex Greig, Kansas Bankers Association, Topeka; Joe White, INTRUST Bank, N.A., Wichita; James Hagedorn, United Bank & Trust, Seneca; Sam Jackson, First State Bank, Plainville; Clint Shoemaker, Guaranty State Bank and Trust Co., Beloit; Kyle Murrow, Denison State Bank, Holton; and Francis Scheuerman, UMB Bank, N.A., Kansas City
Pub. 11 2022 Issue 2 19 Association, Topeka; Trae Watson, Loan Officer, Heartland Tri-State Bank, Elkhart; Evan Whetzal, Vice President, First Heritage Bank, Seneca; Joe White, Director — Premier Service, INTRUST Bank, N.A., Wichita. After an overview of the program by KBA’s President and CEO Doug Wareham, the class got to know each other during an ice-breaker exercise where many laughs and personal stories were shared. Next, a complete summary of the history, structure, and governance of the KBA was outlined, followed by staff spotlights allowing senior management to share their roles and areas of expertise and how each department at the KBA can assist them and their banks. The BLOK class then enjoyed dinner and more time to get acquainted with the KBA staff. Day two focused on state advocacy and began with a session on the legislative process led by KBA SVP-Government Relations Alex Orel and AVP-Government Relations Kelly VanZwoll. The BLOK class then participated in the KBA Harold A. Stones Public Affairs Conference, followed by a legislative reception at the Topeka Country Club. The third day of Session 1 started with a leadership panel designed to expose the class further to the role of a volunteer KBA leader. KBA President and CEO Doug Wareham moderated a panel that included former KBA Chairman Kent Needham (Chairman of the Board, President & CEO of First Security Bank in Overbrook) and former KBA Chairman Leonard Wolfe (Chairman, President, and CEO of United Bank & Trust in Marysville). The class then sat in on two hours of the KBA Board meeting. The class then transitioned to downtown Topeka to hear from a legislative panel featuring the House Financial Institutions & Pensions Committee Chair Rep. Jim Kelly (R-Independence); Senate Financial Institutions and Insurance Committee Chair Sen. Jeff Longbine (R-Emporia); and House Appropriations Committee Chair Rep. Troy Waymaster (R-Russell). Following the legislative panel, the group walked to the Statehouse and received a behind-the-scenes tour. The tour included visiting the Governor’s office and House chamber. During the visit to the Senate chamber, Senator Mike Fagg, Vice-Chair of the Senate Financial Institutions and Insurance Committee, recognized the class during the Senate’s general session. Additionally, Representative Dan Hawkins recognized the class during the Kansas House’s general session. The group enjoyed a presentation by Kansas Bank Commissioner David Herndon (pictured in the center) highlighting the role his department plays in assisting the banks in our state Senior bank leaders Leonard Wolfe (left, United Bank & Trust, Marysville), Kent Needham (center, First Security Bank, Overbrook) and KBA President & CEO Doug Wareham share their leadership experiences with the group KBA SVP-Government Relations Alex Orel explains how a bill becomes a law during a demonstration Brandi Archer (First National Bank and Trust, Phillipsburg) introduces Brock Stuhlsatz (Citizens Bank of Kansas, Derby) to the group Kimberly Wallace (Equity Bank, Wichita) and Greg Thiessen (First Bank of Beloit) get to know one another better during an ice-breaker exercise 2022 BLOK Sponsors: INTRUST Bank, N.A. KBA Insurance, Inc. Professional Bank Consultants, LLC Bankers’ Bank of Kansas
20 Clear skies and eager minds made the 2022 Kansas Ag Bankers Conference a great turnout, which was held March 2-3 at the Hilton Garden Inn and Conference Center in Manhattan, KS. This conference is held by the Kansas Ag Bankers Division and is meant to support, enhance and promote the agricultural banking industry. Ag bankers heard from a variety of knowledgeable and impactful speakers on topics such as ag economics, lending, the Federal Ag Policy Update and much more. KAB Past President Jay Meyer, Centera Bank in Sublette, kicked off the conference with the welcome and introductions to attendees. The first speaker of the conference was Dr. David Kohl, AgriVisions LLC, with “Agricultural Economic Update and the Road Ahead” and “Lending in the Agricultural Marketplace: 2022 and Beyond.” Kohl presented common financial and business practices that will proactively position the banker’s business or customer regardless of the economic cycle. He also drew upon his decades of engagement and interaction with the agricultural industry to provide wisdom and actionable items that can be used with your agricultural customers. Topics include the high tech, high touch approach to building relationships, aligning with producer mindsets, assessing business IQ as it relates to financials, economics, and the growth of ag businesses of the future. ABA’s Senior Vice President of Agricultural & Rural Banking Policy Ed Elfman and KBA President & CEO Doug Wareham provided a campfire chat on federal ag and rural banking policy. Taking center stage was Enhancing Credit Opportunities in Rural America (ECORA) tax equity legislation — this looks to gain traction this year after it was signed into law in Kansas last year, and additional states are pushing the same legislation. Andrew McCrea, farmer and rancher, shared “Your Bank’s Role in Creating Total Town Makeovers” after the second break-out session of the day. Attendees were able to learn how financial institutions can be a key catalyst that keeps small towns surviving and thriving. Kansas banks play an important role in what happens next to small towns supporting agriculture that are struggling to keep small businesses open, maintain quality schools and provide a place where younger people want to work and establish homes and families. Finishing up the first day, the last speaker Elizabeth McCormick, US Army Black Helicopter Pilot, presented “Soar 2 Success.” She shared the professional development secrets for success with her stories of overcoming obstacles as a helicopter pilot while inspiring attendees to Soar 2 Success! Following the Kansas Ag Bankers Trade Show and Hospitality Reception, the Kansas Wheat Innovation Center hosted the Salute the Kansas Wheat Farmer Event that unveiled the debuted Tribute Wall. KBA President & CEO Doug Wareham and KAB Division President Jay Meyer, Centera Bank in Sublette, at the Kansas Wheat Innovation Center celebrating the unveiling of the Kansas Ag Bankers Farmer Salute display wall 2022 Kansas Ag Bankers Conference Harvests Great Turn Out Leaders in Their Field
Pub. 11 2022 Issue 2 21 “The strong partnership between Kansas ag bankers and Kansas wheat growers dates back to the birth of our state in the 1860s,” Doug Wareham, KBA President & CEO, said. “The Kansas Ag Bankers Division of the KBA is proud to continue supporting that long-standing relationship by sponsoring the new Salute the Kansas Wheat Farmer Tribute Wall at the Kansas Wheat Innovation Center in Manhattan, KS. The Wheat Innovation Center was built to develop improved wheat varieties and get them into the hands of Kansas wheat producers. We are honored to support the long-standing efforts of the Kansas Wheat Commission and, most of all, Kansas Wheat Growers.” Security 1st Title was gracious enough to sponsor the whole event with delicious BBQ and drinks! Kansas ag banker attendees geared up on day two with the first speaker Randy Blach, CattleFax, with his presentation “Cattle and Meat Protein Situation and Outlook.” Paul Mussman, AgWest Commodities, was up next with the Ag Market Update. He examined the major grains and livestock’s price structure in today’s extremely volatile and globally influenced marketplace while also providing a few straightforward tools to combat the craziness in prices. The 2022 annual meeting of the Kansas Ag Bankers Division was called to order by KAB Division President Jay Meyer from Centera Bank in Sublette. KAB Secretary/Treasurer Mikel Hadacheck from Astra Bank in Belleville reviewed the minutes from the 2021 annual meeting, along with the current financial report. Following an introduction of the board members by Jay Meyer, Past President Tim Smith from First State Bank in Plainville presented the nominating report. Following the nominating process, David White from INTRUST Bank in Wichita was inducted as the new KBA Kansas Ag Bankers Division President; Mikel Hadachek, Astra Bank in Belleville, as Vice-President and Brad Zimmerman, First National Bank in Scott City, as Secretary/Treasurer. “Wild Side of Weather,” presented by Eric Snodgrass, Nutrien Ag Solutions, was the last speaker to wrap up the two-day conference. His two main objectives were showing how history is the best teacher, so he investigated the largescale weather processes that have influenced yields in the U.S. over the last 40 years. The second was forecasting the weather in the U.S. and then showcasing the dominant weather features to watch for the current growing season. Thank you to all the sponsors for supporting the Kansas Ag Bankers Division in making this conference possible! Dan Smith, the 2022 Pioneer Award Winner from Heartland Tri-State Bank in Elkhart, KS, was represented by his family for his award at the Conference alongside KBA Chairman-Elect Shan Hanes ABA’s Senior Vice President Ed Elfmann shared ABA’s Ag & Rural Banking Policy David Kohl gave an energetic presentation on day one of the conference The Kansas Ag Bankers Division experienced a packed house of Kansas ag bankers from across the state to hear various speakers and topics at the conference Blackhawk Pilot Elizabeth McCormick presents a signed copy of a book to Mark Leydig, Farmers & Drovers Bank in Council Grove Kansas Wheat Innovation Center reception dinner hosted by Security 1st Title Continued on page 22
22 Continued from page 21 Thank You to All of the Breakout Speakers! "Kansas Agricultural Land Values and Trends" - Robin Reid, Kansas State University, Agricultural Economics Department "Livestock Industry Policy Update" - Aaron Popelka, Kansas Livestock Association "Asking Challenger Questions: It's More Critical Than Most Realize!" - Doug Johnson, Moody's Analytics - Moderator; Jack Galle, Legacy Bank; Ed Dewey, GNBank "How the Developing World Will Affect U.S. Agriculture" - Andrew McCrea, Farmer & Rancher "Appraisal Issues Forum" - Moderated by: David White, INTRUST Bank "The Ogallala Aquifer and our Collective Future" - Earl Lewis, PE | Chief Engineer, Kansas Department of Agriculture Panel discussion “Asking Challenging Questions: It’s More Critical Than Most Realize!” Ed Dewey (left, GNBank, Bucklin), Jack Galle (center, Legacy Bank, Pratt) and moderator Doug Johnson (Moody’s Analytics) Kevin Wagner (Centera Bank, Satanta) and Susan Sankey (Kansas Agriculture and Rural Leadership, Manhattan) Closing the conference with an eye-opening session on “The Wild Side of Weather” is Eric Snodgrass, Nutrien Ag Solutions Providing a livestock industry policy update is Aaron Popelka with the Kansas Livestock Association
Pub. 11 2022 Issue 2 23 Randy Blach of CattleFax during his session on the cattle and meat protein situation and outlook Presenting out going Kansas Ag Bankers Division president Jay Meyer (Centera Bank, Sublette) with a gift is incoming president David White (INTRUST Bank, Wichita) Blair Suddarth (Graduate School of Banking at Colorado) and Will Ramsey (Community National Bank, Humboldt)
24 PICTURING KANSAS Dawn Moeder, Kaw Valley Bank, Topeka captured the photo of this beautiful African Lion at the Topeka Zoo. Under human care at the Zoo, lions can average a lifespan of 15-25 years versus an average of 9-18 years in the wild. How do you picture Kansas? We want your snapshots of Kansas events, landscapes, weather, wildlife and more. Pictures to be submitted for the 2023 calendar need to be taken June 1, 2021-May 31, 2022. E-mail high-resolution digital files (300 dpi at 4” x 6” in TIFF or JPEG format) to Julie Taylor at jtaylor@ksbankers.com. To order official KBA ‘Scenes of Kansas’ calendars, contact Julie Taylor at jtaylor@ksbankers.com. ARE YOU REALLY AS TOP OF MINDWITH YOUR CUSTOMERS AS YOU THINK YOU ARE? DON’T JUST THINK IT, ADVERTISE IN THIS PUBLICATION AND KNOW IT! 801.676.9722 | 855.747.4003 | sales@thenewslinkgroup.com
EXECUTIVE BENEFITS NETWORK For a customized proposal for your bank, please contact: Executive Benefits Network 4601 W 6th Street, Ste A | Lawrence, KS 66049 www.ebn-design.com | (785) 838-9800 jjones@ebn-design.com | nicole@ebn-design.com The only Kansas-based BOLI firm, serving Kansas banks for over 25 years. Come see what BOLI can do for your bank. WORRY-FREE BOLI UNDERWRITING Guaranteed Issue BOLI is a great way to quickly and easily cover a select group of key employees with BOLI. With a group of 10 or more employees, your bank can qualify for guaranteed issue BOLI which typically requires employees to answer only two questions: 1) Have you missed 3 or more days of work due to sickness or injury in the last 90 days? 2) Have you used tobacco in the last 5 years? To see how your bank can implement guaranteed issue BOLI, please contact EBN for a customized plan. PLAN YEAR PREMIUM CASH VALUE TOTAL INSURANCE CASH VALUE ANNUAL INCREASE CASH VALUE YIELD TAX EQUIVALENT YIELD 1 1,000,000 1,032,020 2,065,651 32,020 3.20% 4.45% 2 0 1,064,779 2,094,373 32,759 3.19% 4.43% 3 0 1,098,908 2,124,027 34,129 3.19% 4.44% 4 0 1,134,008 2,153,903 35,100 3.19% 4.44% 5 0 1,170,153 2,184,018 36,145 3.19% 4.43% 6 0 1,208,033 2,215,639 37,880 3.20% 4.44% 7 0 1,247,206 2,247,947 39,173 3.21% 4.45% 8 0 1,287,782 2,281,117 40,576 3.21% 4.46% 9 0 1,331,115 2,317,400 43,333 3.23% 4.48% 10 0 1,378,065 2,358,165 46,950 3.26% 4.53% 11 0 1,428,413 2,402,794 50,349 3.29% 4.58% 12 0 1,480,782 2,448,828 52,369 3.33% 4.62% 13 0 1,535,244 2,496,372 54,462 3.35% 4.66% 14 0 1,591,928 2,545,496 56,684 3.38% 4.69% 15 0 1,650,886 2,596,264 58,959 3.40% 4.72% 16 0 1,712,188 2,648,765 61,302 3.42% 4.75% 17 0 1,775,905 2,703,052 63,717 3.44% 4.77% 18 0 1,842,153 2,759,284 66,248 3.45% 4.79% 19 0 1,911,004 2,817,509 68,850 3.47% 4.82% 20 0 1,982,548 2,877,846 71,545 3.48% 4.83% 21 0 2,056,846 2,940,199 74,297 3.49% 4.85% 22 0 2,134,008 3,004,713 77,162 3.51% 4.87% 23 0 2,214,156 3,071,420 80,148 3.52% 4.88% 24 0 2,297,351 3,140,303 83,196 3.53% 4.90% 25 0 2,383,695 3,211,488 86,343 3.54% 4.91% Hypothetical purchase in the amount illustrated above assumes guaranteed issue policies with a top AAA-rated insurance carrier. Earnings are tax-free if policies are held until death. Assumes an effective tax rate of 28.0% Sample Kansas Bank Insurance Illustration Composite Illustration
26 Bob Leftwich retires as Impact Bank’s Chairman, CEO, President John T. Stewart III, Chairman and CEO of First Financial Corporation, announces the retirement of Bob Leftwich, Impact Bank’s Chairman, CEO & President, effective Feb. 28, 2022. Leftwich will continue to serve as a member of the Board of Directors and continue working with the bank on a part-time basis upon his retirement. Leftwich joined the bank staff in September 1977, providing over 44 years of dedicated service to the bank, its customers and the community. Leftwich held multiple leadership roles across a broad range of bank departments and national and state banking associations, serving as Chairman of the Kansas Bankers Association in 2016. “Bob’s work ethic, command of complex concepts, devotion and customer focus have been exemplary,” Stewart stated. “He has been a mentor and a leader, and his influence has made an inedible impact on the bank and community. All of us in the Impact Bank family thank Bob for all he has done for the success of our business and our customers. We will miss him and his ‘towering’ presence in our bank.” President/CEO Brad Yaeger Announces Retirement Brad Yaeger is announcing his retirement as President/CEO effective March 2022, after 42 years in banking and serving three years as President at Legacy bank (formerly State Bank of Colwich). Yaeger joined the family-owned bank in 1988 and transitioned into the role of President when Frank Suellentrop retired in December 2018. Yaeger is turning over leadership of the 136-year-old bank to Executive Vice President Steven F. Suellentrop. A fifthgeneration banker, Suellentrop, became President of Legacy Bank effective March 14, 2022. Founded in 1886, Legacy Bank has eight Colwich, Pratt, Sedgwick, and Wichita locations. The Trust Company of Kansas Names Angela Malley Chief Investment Officer The Trust Company of Kansas (TCK) announced on Jan. 13, 2022, that Angela Malley was named Chief Investment Officer (CIO), effective Jan. 1, 2022. As CIO, Malley will be responsible for developing and executing TCK’s investment strategy, including leading the company’s Investment Sub-Committee team with a focus on carefully managing assets for an optimum net annual return – one of the best measurements of a wealth manager’s value. Malley will also continue to serve on the company’s Trust Investment Committee. “Angela is a proven leader with significant expertise and a deep understanding of our business, and I am proud to announce her promotion to the role of CIO,” said Christopher M. English, CEO of TCK. “During her three years with the company, Angela has made considerable contributions to our investment process. These include the reengineering of TCK’s investment portfolio models and the rollout of a new risk-assessment process to help clients better understand the types of investments that best fit. I look forward to continuing to work with Angela in her expanded role as we leverage TCK’s solid investment process and continue to execute our disciplined growth strategy.” “I am excited to take on this new position and play a larger role in TCK’s future success,” Malley said. “Our services are as varied as our clients’ needs. I look forward to continuing to lead our team with sound strategies that build long-term relationships, always acting in our clients’ best interest.” Angela Malley has served in a variety of leadership positions for The Trust Company of Kansas since joining the Company in 2019, including Vice President and Trust Officer and Co-Chair of TCK’s Investment SubCommittee for the past year. Since joining TCK as a fiduciary adviser, her interest in the investment role has broadened. During this time with TCK, Malley has been involved in the company’s milestone of exceeding $1 billion in client assets under BRIEFLY IN KANSAS BANKING
Pub. 11 2022 Issue 2 27 management. Prior to joining TCK, she had a successful 18-year career in tax and financial reporting at Koch Industries and Spirit AeroSystems. A Certified Public Accountant, Malley holds a Bachelor of Science in Business Administration with a major in Accounting fromWichita State University. Home Bank & Trust Co. Announces Two Promotions During the Annual Board of Directors Meeting and Organizational meetings of Home Bank & Trust Co. held in Eureka, KS Feb. 22, 2022, Brad Rucker was promoted to President/ CEO and Tyson Rucker was promoted to Chairman of the Board/Chief Operating Officer. Brad began with Home Bank & Trust Co. in December 1993 at the Clearwater Branch after graduating from Friends University. He is also a graduate of the Colorado Graduate School of Banking and the ABA Graduate School of Commercial Lending. He was responsible for opening the Clearwater Branch in 1994, the West Branch located at 10421 W. Central, Wichita, KS in 2002, and the East Branch located at 1409 N. Greenwich, Wichita, KS in 2007. Tyson began with Home Bank & Trust Co. in October of 2000 at the Clearwater Branch before relocating to the Eureka office in 2002. He graduated from Friends University in 1998, and he is also a graduate of the Colorado Graduate School of Banking and the ABA Graduate School of Commercial Lending. Home Bank & Trust Co. has locations in Eureka, Severy, Clearwater and Wichita. ESB Financial Celebrates Jim Wayman’s Retirement ESB Financial is pleased to announce the retirement of JimWayman and welcomes Michael Black as the incoming President and CEO. Since the age of 14, Jim Wayman began his banking career at ESB when his dad saw an opportunity for him to get involved. Jim started transferring loan documents from paper ledgers to the first bank computer. “For me, banking was pretty much a natural progression,” Wayman said. “I grew up in the family business, and for those of you who have grown up in a family environment, you know that it is integrated in our everyday lives. From a young age, I knew that working in the family business was something that I wanted to do. I never seriously considered anything else.” When asked what he will miss most during retirement, Jim stated the personal relationships he has built with Team ESB and the clients he has served. As ESB looks to the future, Jim will continue his role as Chairman of the Board of Directors and Karen Sommers, Jim’s sister, will also continue to serve on the Board as well. The ownership of the bank will remain family-owned, and the Wayman family will still be actively involved with the bank and the communities in the Flint Hills. Bill Anton Announces Retirement At the annual meetings of Centera Bank and Santa Fe Trail Banc Shares, Inc. held in March, Bill Anton announced his retirement from the board of directors for both the bank and its holding company. Bill began his banking career with The State Bank of Satanta in 1973. He joined the Haskell County State Bank in 1994 with the merger of the two banks as President of the Satanta location. He also joined the board of directors at that time. Bill has been an integral part of the successes achieved in the organization in each capacity in which he has served. The board of directors, shareholders, and employees congratulate him on his retirement, thank him for his years of service, and wish him well in the future. Continued on page 28 Brad Rucker Tyson Rucker
28 BRIEFLY IN KANSAS BANKING Continued from page 27 Richard (Dick) A. Renfro 50 Year Club Award Dick began his 50-year banking career in April 1971 at National Bank of America (NBA) in Salina as Vice President and Commercial Loan Officer. He then progressed to the position of President of NBA and then President and CEO of the merged UMB National Bank of America. He also served on the UMB Financial Corporation Executive Committee and Board of Directors, retiring in August of 2001. Upon retirement, he was elected as Vice Chairman of the Board and was a consultant to UMB NBA through 2012. He then began service on UMB’s Salina Advisory Board of Directors. In addition to his long career at UMB NBA, he also served on the Board of Directors of Farmers State Bank McPherson until his death in November 2021. His long-esteemed career was founded on his high school education at Hutchinson High School, BS in Business from Kansas State University, Stonier Graduate School of Banking (Rutgers University) and the National Commercial Lending Graduate School, University of Oklahoma. Dick’s love of banking and community was a valued part of his life. After a short battle with cancer, Dick leaves his wife Toni, sons Craig, Cary and Clark (Amber) and his beloved granddaughters Addison, Mallory and Claire to remember a devoted family man, proud K-State alum, community advocate and a leader in the banking community. Farmers State Bank Begins New Century Farmers State Bank in Dwight, KS, celebrated 101 years of business in January. With the bank’s founders pursuing the idea of a bank in 1920, the bank opened on Jan. 13, 1921. Bank officers were C.W. Johnson, president; O.J. Flack, vice president; H.R. Johnson, cashier; and E.T. Beck, assistant cashier. It has remained in the same location on the south side of Main Street for all 101 years. Robert “Bob” Oleen, who has now passed, was just 19 years old in 1938 when he approached Mr. Beck at the bank for a job. Bob offered to work there for free for a month to demonstrate his seriousness to the duty. He was hired and, for the next 76 years, continued to work and excel at the bank until he passed in August of 2014. Bob Oleen’s son, Jan R. Oleen, a 1962 Dwight High School graduate, returned to Dwight in 1971 after serving in the military to help at the family bank. Jan Oleen is the current Chairman of the Board and President & CEO of the bank. The Bank has weathered society’s tough economic times. Before the Oleen’s involvement, the bank withstood the economic crash of 1929, followed by the Great Depression in the 1930s. Jan Oleen recalls the challenging times of the late 1970s and early 1980s when the bank’s clients, many of whom are in agriculture, found themselves facing interest rates of 17-18% when real estate ownership changed. Doug Wareham, KBA President and CEO, presented the posthumous award for Dick Renfro to his son, Clark Renfro, President of Exchange Bank, Salina Pictured: KBA President & CEO Doug Wareham with Dick Renfro’s family, son Cary Renfro and wife Toni, son Clark Renfro and wife Amber, and son Craig Renfro
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy ODQxMjUw