THE OF F I C I AL PUB L I CAT ION OF KANSAS BANKE RS ASSOC I AT ION | MAY/JUNE 2022 I SSUE 3 2022 Photo credit: Gracie Bronson, Wife of Eric Bronson, The Peoples Bank, Pratt
A S S U R A N C E / T A X / A D V I S O R Y forvis.com Moving FORward requires VISion FORVIS is a forward-thinking professional services firm committed to unmatched client experiences. We anticipate our client’s needs and outcomes, preparing them for what’s next by offering innovative solutions. Created by the merger of BKD and DHG — a merger of equals — FORVIS has the enhanced capabilities of an expanded national platform and deepened industry intelligence. With greater resources and robust advisory services, FORVIS is prepared to help you better navigate the current and future dynamic organizational landscape. We are FORVIS. Forward vision drives our unmatched client experiences. Introducing FORVIS, forward vision from the merger of BKD and DHG FORVIS is a trademark of FORVIS, LLP, registration of which in the U.S. Patent and Trademark Office is pending.
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, Assistant Director 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, JD, VP, Staff Attorney GwenHill, JD, VP, Staff Attorney AllisonCarpenter, JD, VP, Legal Dept.Manager Dylan Serrault, JD, VP, CFBSManager Bobby Young, JD, VP, Staff Attorney Adeel Syed, JD, AVP, Staff Attorney Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kelly VanZwoll, JD, AVP, Staff Attorney&Gov’t Relations KerryClark, JD, Staff Attorney&Publications Editor LewisWalton, JD, Compliance Specialist/Auditor Erica Friedt, ComplianceOperations Specialist Nathan Stumme, ComplianceOperations Specialist MeridithDeForest, Administrative Legal Assistant Sarah Lynch-Chaput, Legal Intern GabeWalker, Legal Intern MiaedaHutchinson, Legal Intern © 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 10 20 6 BLOK Session II — Class Convenes in Kansas City 8 KBA Golf Classic Sponsored by KBA Insurance, Inc. May 9, 2022 — Sand Creek Station, Newton, KS 10 Rethinking “The Great Resignation” Rob Nichols, President & CEO, American Bankers Association 12 2022 Women in Banking Conference Recap 14 JAG-K with the KBA Week 16 A Conversation with Neal Reynolds, Founder and President of BankMarketingCenter.com 18 Kansas Bankers Educational Foundation Awards Scholarships 20 Outsourced Compliance Service Sees Strong Start, Welcomes New Compliance Specialist 22 Why Kansas Banks Can’t Afford to Ignore Wage Pressure as Recruiting and Retention Challenges Persist Josh Heck, Syndeo 24 2022 MOKAN Trust Conference Recap 26 Managing Institutional Third-Party Risks: Evolving Guidance Charts a Path Forward for Risk Management Professionals in the Financial Services Industry Ben Streckert, Husch Blackwell, LLP 28 Documentation Makes a Difference for CECL Implementation Michael Flaxbeard, CPA, FORVIS Director, Andrew Wallace, CPA, FORVIS Manager and Alex Orr, CPA, FORVIS Associate, BKD 32 Briefly in Kansas Banking 34 2022 Key MBS Themes and the Case for Specified Pools Andrea F. Pringle, The Baker Group
Member: FINRA and SIPC www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Dallas, TX | Houston, TX Indianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL Interest Rate Risk and Investment Strategies Seminar October 19-21, 2022 | Oklahoma City, OK The Skirvin Hotel The Skirvin Hotel One Park Avenue Oklahoma City, OK 73102 405.272.3040 WHO SHOULD ATTEND Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar. ACCOMMODATIONS A block of rooms is available at The Skirvin Hotel. Identify yourself as a Baker Seminar attendee (or group code TBG3) when calling +1 (800) HILTONS. The special room rate will be available until the room block is sold out. AGENDA Wednesday, 19th Twin Hills Golf 1:00 pm Thursday, 20th Breakfast 7:30 am Seminar 8:30 am Lunch 12:00 pm Adjourn 4:00 pm Dinner 7:00 pm Friday, 21st Breakfast 7:30 am Seminar 8:30 am Conclusion 12:00 pm For your convenience, register for the seminar online at GoBaker.com/oklahoma. Call Skoshi Heron at 888.990.0010 for more information. Two years after the pandemic left financial institutions drowning in excess liquidity at historically low interest rates, the industry faces a new challenge… rising interest rates. The Fed has quickly pivoted from supporting the economy to fighting inflation and institutions are now facing the first rising rate environment in years. Regulators have watched with concern as loan and investment durations extended to record highs in a search for yield and will have a renewed focus on the Investment Portfolio and Interest Rate Risk Management. Portfolio managers can no longer be reactive, but must be proactive in managing their investment portfolio and balance sheet in the face of rising rates and a flattening yield curve. This seminar will examine all of these concerns and present actionable strategies to better prepare your institution for the uncertainty ahead. Join us for an in-depth discussion of the following topics: • Economic and Market Update — Review of current economic conditions and the outlook for growth, inflation, and interest rates • The Powell Pivot — Update on rate hikes, tapering, and the outlook for Federal Reserve monetary policy • Interest Rate Risk — How to ensure you are prepared for the heightened regulatory focus coming in the years ahead • Liquidity Risk Management — Best practices for managing liquidity risk as rates rise • Investment Portfolio Strategies — Adapting your strategy and finding the best relative value for rising rates and a flattening yield curve • MBS/CMOMarket — Balancing prepayment and extension risk in an uncertain mortgage rate environment • Municipal Market Update — The latest on managing municipal credit risk and finding the best relative value OCT FEATURED SPEAKER David Rosenberg — President/Chief Economist & Strategist Rosenberg Research & Associates Inc. 11 hours of Economics and Finance CPE credits will be earned for your attendance.
6 The 2022 BLOK class members met in Kansas City on April 11-13 to continue their training. Ted Garnett of Performance Resources Consulting, LLC, led the class in a session titled Leadership and Self Deception, followed by a session titled Leadership Accountability. Mr. Garnett took the class through several hands-on exercises that helped them stretch their minds and think outside the box. BLOK Session II – Class Convenes in Kansas City 2022 BLOK Class. Back row (left-right): Sam Jackson, First State Bank, Plainville; Brock Stuhlsatz, Citizens Bank of Kansas, Derby; Alex Greig, Kansas Bankers Association, Topeka; Greg Thiessen, First Bank of Beloit, Beloit; Joe White, INTRUST Bank, NA, Wichita; Evan Whetzal, First Heritage Bank, Seneca; Deron O’Connor, Astra Bank, Hays; Kyle Murrow, Denison State Bank, Holton; and Cole Thompson, BOK Financial, Overland Park. Middle Row (l-r) Jordan Lauer, Farmers State Bank, Westmoreland; James Hagedorn, United Bank & Trust, Seneca; Nick Gideon, Silver Lake Bank, Lawrence; Garrett Sharp, Community National Bank & Trust, Chanute; Clint Shoemaker, Guaranty State Bank and Trust Co. Beloit, and Trae Watson, Heartland Tri-State Bank, Elkhart. Front row (l-r): Jennifer Caughron, Bankers’ Bank of Kansas, Wichita; Kimberly Wallace, Equity Bank, Wichita; Brandi Archer, First National Bank and Trust, Phillipsburg; Lewis Walton, Kansas Bankers Association, Topeka; Lindsey Snider, Central National Bank, Junction City; and Francis Scheuerman, UMB Bank, N.A., Kansas City. Day two kicked off with a full slate of speakers at the Federal Reserve Bank in Kansas City, starting with a welcome by Esther George, President & CEO. President George welcomed the class to the bank, talked about the challenges she and her team were looking at, and took questions from the class on issues for which bankers need to keep watch. Following the welcome, a history of the Federal Reserve was presented by Executive Writer and Historian Tim Todd. Mr. Todd talked about the bank’s origins and what the banking system looked like before its founding. Andy Glover, Senior Economist, led the class through an economic outlook focused on Kansas and the 10th Federal Reserve District. The morning concluded with Mike Thomas, Manager, Examinations and Inspections, giving the group a detailed review of Kansas banking
Pub. 11 2022 Issue 3 7 conditions. Following lunch and a group photo, the class enjoyed a tour of the Fed. Dr. Bruce Morgan kicked off the afternoon sessions and gave a presentation “What’s the Future for Community Banks?” A distinguished urban banker panel made up of Mark Larrabee, President and CEO of Arvest Bank in Shawnee Mission; Dave Vander Veen, President of Freedom Bank in Overland Park; and Travis Hicks, CEO of TriCentury Bank in DeSoto, provided the class a look into their market space, and how they hire and retain the best talent. The group also talked about how they are competitors and resources to each other in the highly competitive marketplace of Kansas City. The afternoon at the Federal Reserve concluded with another panel discussion titled “Banking Meets Public Service.” Retired 47-plus years banker and State Senator Mike Fagg of El Dorado; Mike Boehm, SVP of Commerce Bank and Mayor of Lenexa; and Mark Kennedy, AVP & Trust Officer at Citizen’s State Bank & Trust in Ellsworth and former Mayor of Ellsworth talked about their respective offices and what it means to hold public office. They shared how the vast differences in the sizes of the cities they serve contribute to the challenges and rewards of being involved in their communities. They also encouraged the BLOK class to get involved in their communities to have an impact and to help cultivate the next generation of public servants. The final day kicked off at UMB Bank’s Headquarters in Kansas City, Missouri. UMB President & CEO Jim Rine welcomed the class and thanked them for visiting the bank. The class’s first speaker of the day was FDIC Regional Director James LaPierre, who talked about the FDIC’s regulatory priorities and took questions from the class on the current banking conditions and what he has seen in his seven state region. The class also heard from UMB Senior Financial Analyst John McQueen about the interest rate environment. The last speaker of the day was Retired Army Colonel and State Representative Chris Croft of Overland Park, who gave a presentation on leadership and what he learned and taught as the Director of the Center for Army Leadership at Fort Leavenworth, Kansas. For Session III, the class will head to Wichita in July to continue their training before going to Washington D.C. with KBA’s Federal Affairs Committee in September. Thanks to BLOK Sponsors: INTRUST Bank, N.A., KBA Insurance, Inc., Professional Bank Consultants, LLC, and Bankers’ Bank of Kansas. Ted Garnett actively engages the BLOK Class with specific leadership lessons. Federal Reserve Bank of Kansas City President & CEO Esther George welcomes the 2022 BLOK Class. FDIC Kansas City Regional Director James LaPierre discussed the agency’s priorities.
8 KBA Golf Classic Sponsored by KBA Insurance, Inc. May 9, 2022 — Sand Creek Station, Newton, KS TEAM EVENTS AND RESULTS FIRST FLIGHT 1st Place Dahx Marrs, Kansas Bankers Tech, Salina Andrew Manley, Kansas Bankers Tech, Salina Brad Shields, Salina Ryan Peschka, Berkley Capital Management, Salina 2nd Place Joe White, INTRUST, Wichita Grant Paitz, INTRUST, Wichita Matt Hudson, INTRUST, Wichita Nick Museousky, INTRUST, Wichita 3rd Place Eric Porter, (ret) KS State Bank, Manhattan Luke Schnakenberg Jamie Sauder Erren Harter 4th Place Brian Wohler, Bank of the Flint Hills, Wamego Chad Herman Mason Hinkle, Bank of the Flint Hills, Wamego George Berish, Bank of the Flint Hills, Manhattan SECOND FLIGHT 1st Place Rick Smith, Prairie Bank of Kansas, Buhler Steve Prickett, Prairie Bank of Kansas, Buhler Jim Richardson, Prairie Bank of Kansas, Hutchinson Brian Reffner, Prairie Bank of Kansas, Stafford 2nd Place Jeff Wanning, Central States Health & Life, Omaha Zach Weast, Stryv, Park City Scott Harris, ABA Ins. Svs., Shaker Heights, OH 3rd Place Alex Williams, The Halstead Bank, Halstead Dean Johnson, Country Club Bank, Prairie Village Eric Kurtz, Union State Bank, Arkansas City Ron Lang, Union State Bank, Newton 4th Place Paul Bures, The Capital Corporation, Prairie Village Rocky Anderson, Equity Bank, Topeka Chris Lilley, The Insurance Partners, Overland Park Tyler Wier, Primax, Kansas City, MO THIRD FLIGHT 1st Place Steve Egan, Cox Business, Wichita Damon Mendoza, Union State Bank, Arkansas City Clayton Pappan, Union State Bank, Arkansas City Chris Rains, Cox Business, Wichita 2nd Place Matt Morrow, Peoples Bank & Trust, McPherson Ryan Biegert, Peoples Bank & Trust, Lindsborg Chad Alexander, Peoples Bank & Trust, McPherson Bryce Brewer, Peoples Bank & Trust, McPherson 3rd Place Frank Carson III, Carson Bank, Mulvane Kelly Mason, Legacy Bank, Wichita John Lehman, GNBank, Girard 4th Place Kenton Ladenburger, Peoples Bank, Pratt Cory Krehbiel, Peoples Bank, Pratt Greg Waters, Peoples Bank, Pratt Neal Barclay, Kansas Bankers Association, Topeka
Pub. 11 2022 Issue 3 9 FOURTH FLIGHT 1st Place Dave Lesperance, Heritage Bank, Topeka Ryan Gilliland, FHLBank, Topeka TomThull, FHLBank, Topeka Matt Koupal, FHLBank, Topeka 2nd Place James Leftwich, Security 1st Title, Wichita Jonathan Holmes, Valley State Bank, Belle Plaine Doug Ray, Solutions North Bank, Norton Zach Thompson, Solutions North Bank, Hill City 3rd Place Connor Stepp, Central States Capital Markets, Prairie Village Cole Thompson, BOK Financial, Overland Park Alex Stepp, Central States Capital Markets, Prairie Village Dan Stepp, Central States Capital Markets, Prairie Village 4th Place Sam Jackson, First State Bank, Plainville Bryant Muir, First State Bank, Hill City Quinton Porter, First State Bank, Hill City Joel Green, First State Bank, Hill City INDIVIDUAL EVENTS AND RESULTS Longest Putt #2 — $100.00 Gift Certificate: Eric Porter, ESB Financial, Emporia Longest Drive #14 — $100.00 Gift Certificate: Kyle Cook, Astra Bank, Chapman Closest to Pin #3 — $100.00 Gift Certificate: John Lehman, GNBank, Girard Closest to Pin #7 — $100.00 Gift Certificate: Erren Harter, Emporia Closest to Pin #13 — $100.00 Gift Certificate: Dan Stepp, Central States Capital Markets, Prairie Village Closest to Pin #17 — $100.00 Gift Certificate: Cole Thompson, BOK Financial, Overland Park HOLE IN ONE! Cole Thompson BOK Financial Overland Park Winner of a $1,200 Gift Certificate to TravisMathew.com First Place Fourth Flight: Ryan Gilliland, FHLBank, Matt Koupal, FHLBank, TomThull, FHLBank. Dave Lesperance, Heritage Bank, Topeka First Place Third Flight: Chris Rains, Cox Business; Clayton Pappan, Union State Bank, Ark City; Steve Egan, Cox Business; Damon Mendoza, Union State Bank, Ark City First Place Second Flight: Rick Smith, Brian Reffner, Steve Prickett, Jim Richardson, Prairie Bank of Kansas
10 WASHINGTON UPDATE American workers are quitting their jobs in record numbers – leading economists and pundits to dub the period we’re currently living through “The Great Resignation.” According to the Society for Human Resource Management, employees exited their jobs in record numbers over the 10 months between March and December 2021, and the Federal Reserve continues to report ongoing labor shortages nationwide. As of February, there were 11.3 million job openings in the U.S., according to the Labor Department. For many workers, the pandemic prompted the desire to change jobs or careers — a massive period of upheaval that led them to rethink what they wanted and needed in terms of work/life balance, job satisfaction, benefits, and more. But that’s left employers scrambling to fill multiple vacancies and shone an exceptionally bright spotlight on the need to have a strategy in place for recruitment, retention and talent management. The Great Resignation is affecting businesses of all sizes across all industries — and the banking industry is certainly no exception. While some of you may be feeling uneasy about the state of your own workforce, I submit that this is actually a time of great opportunity — because while a lot of people are leaving their jobs, it’s a signal that many talented employees are also looking for jobs and are open to career changes. That’s an opportunity that our industry can’t afford to miss. To help more talented and diverse individuals find their future in banking, ABA is partnering with more than 30 state Rethinking By Rob Nichols, President & CEO, American Bankers Association “The Great Resignation”
Pub. 11 2022 Issue 3 11 Email Rob Nichols at nichols@aba.com. The Great Resignation has also prompted many banks to reconsider their benefits offerings. If you’re looking for a way to bring young talent in the door to stay, one strategy I highly recommend is to offer some form of student loan repayment assistance. bankers’ associations and pooling our resources to enhance BankTalentHQ (banktalenthq.com) — the nation’s single best source for banking jobs. Bankers can use Bank Talent HQ to post new job openings, and job seekers will use the platform to find great opportunities in banking. ABA will be busy sharing the real stories of dedicated employees in banking today. One of the things that make our industry so attractive to prospective hires is the incredible range of opportunities that can come with a career in banking. Banks need marketers, IT experts, programmers, data wizards, cyber pros, compliance experts, and human resources gurus — not to mention all the important positions people have long associated with banking, like loan officers or tellers. BankTalentHQ will help connect more qualified people with our industry and the exciting career path that awaits them in banking. The Great Resignation has also prompted many banks to reconsider their benefits offerings. If you’re looking for a way to bring young talent in the door to stay, one strategy I highly recommend is to offer some form of student loan repayment assistance. It’s something we’ve tried at ABA with great success, and in my view, it’s one of the ways banks can distinguish themselves as some of the best employers in the job market. If your bank isn’t offering a student loan repayment option, I encourage you to explore the possibility with your HR director. These programs can be tailored in virtually any way to support your organization’s talent acquisition and retention strategy. The reality is that many young people today are graduating college with the equivalent of a small mortgage worth of student debt. That is a tremendous burden, and stepping up to help your workers tackle this debt can set your bank apart both in recruitment and retention. Beyond offering perks, talented professionals also need ample opportunities to advance within the organization, hone their skills or explore new areas of interest. ABA offers a wide range of online training, continuous learning and certification programs for bankers at all levels of their careers. (You can check out all of these offerings at www.aba.com/ DevelopTalent.) We also support up-and coming-bank talent through our Emerging Leaders Open Committee and our new Emerging Leader Awards, which recognize the next generation of high achieving bank leaders. Cultivating the next generation of bank talent is essential to ensuring the continued viability and vitality of our industry. At ABA, we are committed to bringing you the tools and resources you need to navigate the Great Resignation — and come out on top in the search for talent. HAVE EQUIPMENT TO SELL? CONTACT YOUR LOCAL BIGIRON REP TODAY! WESTERN KANSAS Jeff Sibley | (620) 885-4784 NORTHEASTERN KANSAS Ron Hinrichsen | (785) 770-0222 SOUTHEASTERN KANSAS Kevin Nelson | (620) 245-7236 NORTH AMER I CA’ S #1 ONL I NE UNRESERVED AUCT I ON MARKETPLACE BECAUSE OF OUR VALUES . HONESTY | TRANSPARENCY | BEST- I N- CLASS SERV I CE
12 KBA Education and HR Committee Chair Deanne Engstrom, First Security Bank in Paola, kicked off the 2022 Women in Banking Conference by welcoming the group to KBA’s first in-person Women in Banking Conference. This year’s event was held March 2425 at the Marriott Hotel in Overland Park, with over 120 women in attendance. The first speaker was Beth Ziesenis, Your Nerdy Best Friend, who shared “Powered Productivity: Super Tech Tools to Get Stuff Done.” The author of four books, Beth used her knowledge of the latest technology to educate and entertain attendees with the fast-changing world of that technology. She provided a highly interactive and thought-provoking session on how to use free and bargain technology tools you never knew existed to work more efficiently with your teams, get organized and finally get stuff done. Kristen Brown, Author/Speaker/Trainer, spoke next on her presentation, “Renew — Reconnect — Recharge.” Attendees were given ideas to unlock their best selves and powerful ideas for renewing engagement, reconnecting their power tribe, and recharging body and mind. RENEW— You will elevate your confidence and resilience by uncovering what tasks and traits fire you up, bring out the best in you, and elevate those around you. RECONNECT — You will identify the positive people in your work and life to guide and drive your goals while releasing the energy drainers. RECHARGE — You will engage in actionable energizers you can use on-the-fly to help you relax, charge you up, and manage stress when you need it most. The conference moved to afternoon breakout sessions where attendees could listen to four different sessions: • Leading with Focus: Collaboration and Productivity without a Billion Videoconferences; Beth Ziesenis, Your Nerdy Best Friend • Inclusive Leadership: Inclusion Starts with “I”; Tammy Edwards; Federal Reserve Bank of Kansas City • The Happy Hour Effect: 5 Power Shots to Charge Up Your Work and Life; Kristen Brown • Self-Defense: Carrie Mugridge & Prime Martial Arts 2022 Women in Banking Conference Federal Reserve Bank of Kansas City President Esther George gives her perspective on the economy, based upon her nearly four decades of experience at the Fed. Kathy Taylor (KBA’s EVP-General Counsel) facilitates a panel discussion with (L-R): Tammy Edwards (Federal Reserve Bank of Kansas City); Calla Haggard (Community Bank, Topeka); and Trish Minard (Southwest National Bank, Wichita).
Pub. 11 2022 Issue 3 13 Closing the day was a panel discussion facilitated by KBA EVP & General Counsel Kathy Taylor. Panelists were Tammy Edwards, Federal Reserve Bank of Kansas City; Calla Haggard, President & CEO, Community Bank, Topeka; and Trish Minard, President/CEO/COB, Southwest National Bank, Wichita. Welcoming the attendees to the final day of the conference was Vice-Chair of the Education & HR Committee, Tanna Thompson with KS StateBank in Manhattan. Following her was Terri Thomas, KBA EVP, COO & Legal Services Director who taught how to “Communicate More Effectively with Your Boss, Your Staff and Your Customers” describing that for today’s financial institutions to compete, they must maintain successful team cultures. Unfortunately, pitfalls, if not understood and properly managed, can not only hinder a financial institution from meeting its goals, but can also create a negative and even hostile environment for management, employees, and customers alike. Next, Esther George, President of the Federal Reserve Bank of Kansas City, shared her “Economic Update and Outlook,” where she provided her perspective on the economy based on her nearly four decades of experience at the Federal Reserve. The last speaker of the conference was Deadra Stanton, with “Don’t Shoot Skinny Rabbits.” Before we can grow professionally, she explained, we need to keep focused on our life journey. When we are traveling so fast and so furious, we sometimes limit our ability to navigate our path. She reiterated that before we can grow professionally, we n eed to learn to survive personally. As the pace of change quickens every day, we sometimes end up chasing too many skinny rabbits. When we do this, we lose our energy and our focus on what’s important. She encouraged us all to be open to new ideas, a revitalized sense of self, and to let go of the stress that causes you to chase SKINNY RABBITS. Mark your calendars! The 2023 Women in Banking Conference will be March 23-24 at the Wichita Marriott Hotel. L-R: INTRUST Bank employees Laura Miller, Sandi Rhodeman, Cassaundra Pool, Shelli Gillen and Fredia Warren visit with Kristen Brown (in yellow) after her session “Renew – Reconnect – Recharge.” Vice-Chair of the Education/HR Committee Tanna Thompson (KS StateBank, Manhattan) welcomes attendees to day two of the conference. In her session, Terri Thomas (KBA’s EVP-COO) posed a question during the positive/negative perception activity. Tammy Edwards with the Federal Reserve Bank of Kansas City presenting “Inclusive Leadership: Inclusion Starts with ‘I’.” Valerie McCown and Jan Endicott with Stockgrowers State Bank in Ashland. Carrie Mugridge shares her riveting story of being attacked from behind while running and how this fueled her to learn and eventually teach self-defense classes to women across the state of Kansas. Beth Ziesenis, Your Nerdy Best Friend, during her humorous, yet informationpacked session “Powered by Productivity: Super Tech Tools to Get Stuff Done.” Attendees are asked to do an interactive exercise on day one of the conference.
14 JAG-K students at Topeka High School asked questions about the banking industry with Liz Walker, Capitol Federal Savings Bank® in Topeka. Grant Paitz, YBOK Division President from INTRUST Bank, N.A., in Wichita, visited with the Wichita Southeast High School JAG-K class in Wichita. Jon Thorton, FirstOak Bank in Independence, presented to the Independence High School JAG-K class. Greg Thiessen, First Bank of Beloit, visited with the Beloit High School JAG-K Class. JAG-K with the KBA Week In April, KBA was excited to announce a new opportunity for banks across Kansas that impacts the state's workforce and teaches students about the banking industry and financial literacy. The new partnership with Jobs for America's Graduates – Kansas (JAG-K) allowed bankers to participate during “JAG-K with the KBA Week” on April 18 through 22 and visit their local JAG-K classrooms. The idea of this partnership came from KBA's Young Bank Officers of Kansas (YBOK) Division, who partnered with JAG-K last year during their annual conference to meet Wichita-area students and talk about careers in banking and financial literacy. That idea has grown to take these efforts statewide! “The Kansas banking industry recognizes the benefit of helping Kansas employers connect with talented and trained young employees,” said Alex Orel, SVP of Government Relations at KBA. “Well-trained, qualified employees at every level are essential to the future of Kansas’ financial institutions. We are excited to help JAG-K learn about these exciting opportunities.” JAG-K is an in-school, evidence-based program that works with students facing various barriers to success, overcoming those barriers, graduating from high school, and getting on a productive and meaningful career path uniquely suited to their skills and passions. “It was such a great experience participating in the JAG-K with the KBA Week. It provided an opportunity to highlight the Kansas banking industry that we all know and love, but I was also able to talk about the many benefits and career opportunities available to future graduates,” said Taylor Stos, First State Bank & Trust in Tonganoxie. “We even got to discuss the importance of personal finance and some tips on achieving their own financial goals best. Thank you to the JAG-K program and the KBA for putting on such a fantastic program!”
Pub. 11 2022 Issue 3 15 JAG-K with the KBA Week was a great opportunity to teach Kansas youth about financial literacy and the banking industry. Pratt High School JAG-K students took a tour of Legacy Bank in Pratt. Julie Voelker, Community State Bank in Coffeyville, visited with the Field Kindley High School JAG-K class. JAG-K students from Goodland High School did a bank tour and presentation at FNB Bank, Goodland, from Kaycie Schilling, Kylie Mertens and Bailey Cooper. Taylor Stos, First State Bank & Trust in Tonganoxie, presented to the Seaman High School in Topeka. JAG-K serves more than 4,300 students in 81 programs in 43 school districts across the state. Some of these students are the most educationally at-risk and economically disadvantaged students in their schools. Yet, JAG-K students had a graduation rate of 97% over the past four years! “Career exploration, employability skills, and financial literacy are significant components of the evidence-based JAG model. The KBA helped our students in all three areas during our JAG-K with the KBA event,” Chuck Knapp, JAG-K President & CEO, said. “We appreciate the time and interest in helping our students prepare for successful futures. We believe this investment in our youth will result in stronger communities throughout Kansas.” More than 25 Kansas banks either visited their local JAG-K classrooms or invited JAG-K classrooms to visit the bank for a tour and presentation. Bankers not only shed light on financial literacy but also that banking offers diverse, challenging and rewarding careers in agricultural lending, bank administration, accounting, security, compliance, commercial banking, human resources, public relations, marketing, and much more. KBA is excited to partner again next year with JAG-K to connect bankers with JAG-K students. “We couldn't have asked for a better partner than JAG-K in our financial literacy and workforce development efforts,” Grant Paitz, YBOK Division President from INTRUST Bank in Wichita, said. "Chuck Knapp, Kim Fertig, and all of the career specialists at JAG-K made it easy to volunteer in high school classrooms with this fulfilling opportunity. JAG-K students — seniors, in particular — were engaging and asking great questions about career opportunities and financial decisions beyond high school. I’m already looking forward to doing this again next school year.” Thank you to each banker for taking the time to participate in this fantastic opportunity and for jumpstarting this fruitful partnership with JAG-K. The Kansas banking industry recognizes the benefit of helping Kansas employers connect with talented and trained young employees.
16 Here at the Kansas Bankers Association, it’s our mission to support our member banks and bankers with leadership, advocacy, and education to benefit the communities and customers they serve. One very important aspect of that support is helping our members through our endorsed vendors. KBA’s selection of endorsed vendors is dynamic. Once selected, a vendor doesn’t simply enjoy permanent endorsed vendor status. As new suppliers and technologies appear, we know we must continually review these vendors to ensure they are, in fact, the best organizations in their field. We also work to assure our member banks that they will continue to receive the best services in the industry; services they need to grow and succeed. As your association, we believe it’s important to keep our members abreast of new trends, developments, and opportunities in this fast and ever-evolving industry. We’re taking this opportunity to update you on developments in the area of marketing, brought to you by Neal Reynolds, founder and president of our endorsed partner, BankMarketingCenter.com. Reynolds: Thanks for giving me the opportunity to address your members. We are committed to bringing Kansas banks the best in marketing messaging, which is so critical, especially in the face of so many challenges. The competition for customers has become incredibly tough and we all recognize the important role that strategic, compelling, and relevant marketing messaging can play in the fight for market share. KBA: Neal, you mentioned that an organization — Canva — has found its way into some community banks and that this webbased template-building platform is being looked at as a low-cost alternative to BankMarketingCenter.com. Reynolds: Yes, that’s true. But the real truth is that our services are very different. For starters, yes, a template-driven software application can make the creation of marketing products quick and easy. But as in everything in life, you get what you pay for, right? Can a template-driven design program like Canva apply the highly A Conversation with Neal Reynolds, Founder and President of BankMarketingCenter.com By Brenda L. Unruh, SVP, Director, Education and Conferences/Member Services
Pub. 11 2022 Issue 3 17 sophisticated principles of marketing that today’s marcomm messaging demands? Absolutely not. Sure, anyone can create a print ad or digital banner using a pre-built template, but what does Canva actually bring to the table? In the end, it is simply a tool, and as such, is only as effective as the marketing person whose hands it is in. KBA: So how is what you offer different? Aren’t the ads on your portal templates, too? Reynolds: No, they’re much more than that, and, in fact, this is the critical difference between what we offer and Canva templates. The difference, in a word, is thinking. We have a team of financial industry marketing professionals, with collective experience of about six decades, who are constantly researching financial industry trends, products, and services. Then, using their experience in the financial services space — community banking, in particular — they develop and add new, customizable creative to our library of content almost every day. And our layouts cover the full range of marketing materials, including direct mail, social media messaging, radio and print advertising, in-branch signage, statement stuffers, flyers, posters, and more. As far as our web-based platform is concerned, it doesn’t simply offer pretty templates for design. We put our clients in complete control of their marketing message development process, from concept to production via an easy-to-use interface. After a user logs into the BankMarketingCenter.com website, they can select an ad that most closely meets their needs and then customize it with their desired images, brand colors, and copy. Like Canva, no design software or experience is needed; it’s a simple drag-and-drop process. But that is where the similarity ends. KBA: How so? Reynolds: Our portal can automatically insert their institution’s logo, address, and phone numbers in their ad, including the compliant logos for FDIC and Equal Housing. The portal then facilitates proofing of the ad, automatically routing it along a pre-determined compliance approval path. Another critical advantage of our portal over template apps is that each user has easy access to their order history, enabling them to track all the marketing materials produced. This is a huge benefit to financial institutions if and when, in a compliance review, they’re asked by regulators for access to their marketing materials. KBA: You also mentioned images and usage. Reynolds: Yes, and that’s an important one and something else that your banks should know about. Here’s an example of what I’ve actually been seeing: banks are promoting their mobile banking with an image of an iPhone. Doesn’t sound like a big deal, does it? Well, Apple doesn’t see it that way. Apple states this pretty clearly in their Trademark Guidelines: “Only Apple and its authorized resellers and licensees may use the Apple Logo in advertising, promotional, and sales materials.” The problem is, service providers like Canva don’t protect you from this sort of thing and that’s because Canva doesn’t provide its own images. They utilize a third-party image resource. Here’s what that company’s website says about image usage. “While we have made reasonable efforts to correctly categorize, keyword, caption and title the Stock Media, Canva does not warrant the accuracy of such information and Canva also does not warrant the accuracy of any metadata that may be provided with the Stock Media.” Doesn’t exactly inspire confidence, does it? BankMarketingCenter.com, on the other hand, offers millions of Getty images and videos and we guarantee their use. The last thing any bank needs is to find themselves in hot water over the illegal use of an image. KBA: Thanks very much for your time, Neal. We appreciate it. Reynolds: Thank you for giving me the opportunity. I hope this helps your banks better understand what we can do for them. BankMarketingCenter.com is the leading provider of marketing materials to over 300 financial institutions and has received the endorsement of 22 state bankers associations. While the portal provides partner banks with professional designed and written materials and offers the ease of a platform such as Canva, the company’s content is not much different from the materials one would receive from much more costly third-party marketing material resources such as advertising agencies and design firms. The team at BankMarketingCenter.com is led by founder, Neal Reynolds, whose career began as an art director at worldrenowned advertising agency, J. Walter Thompson in Chicago. After working on the advertising for world-class brands such as Oscar Mayer, Kraft and Ford, Neal opened the doors to his own shop in 1982 and 15 years ago, began developing the web-based marketing portal we now know as BankMarketingCenter.com. ... we believe it’s important to keep our members abreast of new trends, developments, and opportunities in this fast and ever-evolving industry.
18 The Kansas Bankers Association (KBA) is pleased to announce the recipients of thirteen scholarships awarded by the Kansas Bankers Educational Foundation (KBEF), a 501(c) 3 corporation created and operated by the KBA. Four scholarships were awarded to children of Kansas bankers, two scholarships were given to students with banker references, and seven scholarships were awarded to students who are currently enrolled in one of two Kansas colleges/universities who offer banking-specific degrees and/or concentrations. Hailey Hower Kansas State University — $1,000 Mother: Julie Hower, President of Farmers & Drovers Bank in Council Grove. Hailey will be a junior at K-State this fall and she is majoring in Organizational Management. After pursuing a law degree, she plans to move back to Council Grove and continue the family tradition of community banking. Luke Shiew Fort Hays State University — $1,000 Mother: Jennifer Shiew, Account Representative at The Farmers State Bank of Jetmore. Luke is applying for bank internships this KANSAS BANKERS EDUCATIONAL FOUNDATION AWARDS SCHOLARSHIPS summer and hopes to someday help others become financially successful. Kristopher Wagner Kansas State University — $1,000 Father: Kevin Wagner, SVP at Centera Bank in Satanta. Kristopher Wagner will be a senior at K-State in the fall majoring in Agricultural Economics with a specialty in Finance. Kristopher’s internships at both The Peoples Bank in Pratt and Country Banker Systems have him interested in becoming a lender. Sienna Wingerson Kansas State University — $500 Father: Steven Wingerson, Branch Manager at First National Bank and Trust, Smith Center. Sienna will be a senior at Kansas State University majoring in marketing with a minor in Journalism and Mass Communications. Her career goal is to work as a marketing manager or youth minister for a Catholic diocese in Kansas. BANKER REFERENCE SCHOLARSHIPS Kade Kline Emporia State University — $500 Reference: Douglas Siebuhr, Executive Vice President of Bank of Burlingame. Kade will be a junior at Emporia State University this fall majoring in Business Administration. He has enjoyed his time at several locations of Flint Hills Bank and is considering a career in banking. Slater Heglin Fort Hays State University — $1,000 Reference: Galen Pelton, President & CEO of Grant County Bank, Ulysses. Slater will be a senior at Ft. Hays State University majoring in Business Education – Talent Development and earning a Certificate in Banking. His goal is to work in the human resources department in the banking industry with a focus on organizational development.
Pub. 11 2022 Issue 3 19 COLLEGE/UNIVERSITY BANKING SCHOLARSHIPS Clayton Beutler Fort Hays State University — Robbins Banking Institute — $1,000 Clayton will be a senior pursuing a degree in Finance with a banking concentration. He hopes to return to his hometown of Ness City to continue the family tradition of community banking. Coy Lampe Fort Hays State University — Robbins Banking Institute — $1,000 Coy will be a senior majoring in Finance and is from Norwich. After graduation, he hopes to be a credit analyst to become more fluent in underwriting before taking a position as a loan originator. Being a leader in his community is very important to Coy. Clifton Miller Fort Hays State University — Robbins Banking Institute — $1,000 Clifton will be a senior in the fall pursuing a degree in Finance with a banking concentration. He is originally from Montezuma. During his time working at Integrity Bank in Fowler, he has developed a love for helping customers, in addition to working with numbers. Ayden Black Byron G. Thompson Center for Integrity in Finance and Economics, Benedictine College — $1,000 Ayden is from Atchison and will be a senior this fall majoring in accounting. He appreciates the value that local bankers can provide a small community, as was demonstrated by his grandfather. Kort Mattison Byron G. Thompson Center for Integrity in Finance and Economics, Benedictine College — $1,000 Kort is from Topeka and will be a junior this fall majoring in Finance. He plans to pursue opportunities within the banking and investment industry. He is inspired by the banking career of his grandfather who helped establish debit and credit cards at the National Bank of Commerce and First Federal Bank of Lincoln, Nebraska. John Wetta Byron G. Thompson Center for Integrity in Finance and Economics, Benedictine College — $1,000 John will be a senior this fall and is pursuing a degree in Finance. He has spent the past school year on the College’s Investment Club which has made him determined to pursue a career in banking and financial services. John is from Wichita. John Welte Byron G. Thompson Center for Integrity in Finance and Economics, Benedictine College — $1,000 John is a native of Atchison and is pursuing a double major in Economics and Philosophy. Upon graduation, he hopes to attend law school and pursue work in government and possibly elected political office, at which time he will be happy to use his understanding of law and economics to represent the interests of Kansas bankers.
20 ust five months into Compliance First Banking Solutions’ launch of its outsourced compliance services, CFBS welcomes its newest member of the team and second Compliance Operations Specialist, Nathan Stumme. Joining the KBA from Houston, Texas, Nathan has worked in the financial services industry for six years, serving as a consumer loan processor and vendor management specialist before most recently working as an internal auditor. Prior to working in financial institutions, Nathan studied computer science at Wartburg College in northeast Iowa and worked in technical support for small businesses. Nathan brings a wealth of knowledge and a positive approach to compliance with him to Outsourced Compliance Service Sees Strong Start, Welcomes New Compliance Specialist CFBS. Working in many different types of financial institutions “has given me a well-rounded understanding of how compliance is done in multiple areas of the financial industry,” says Nathan. His positive approach to compliance demonstrates his commitment to helping Kansas banks provide excellent services to customers while integrating compliance seamlessly into the bank’s processes and procedures. “Many people see compliance as scary, stressful, or a roadblock, but I see it as fun and collaborative. Compliance is no more daunting than your favorite tabletop game or building a treehouse. It may not always be easy, but it’s an activity we can all do together and feel good about what we accomplished. My goal is to show people how to enjoy compliance and make it one of the best parts of their day, rather than a necessary evil.” Nathan will be joining Compliance Operations Specialist Erica Friedt in heading up Compliance First Banking Solution’s outsourced compliance services, which has made a positive impact on the Kansas banks it serves since it was rolled out in January of this year. CFBS provides compliance management and organization services, tailoring specific approaches to the needs of the bank. The banks that utilize CFBS’ compliance services receive monthly compliance reviews and customized in-house training. CFBS’ team of compliance specialists work with bank personnel to perform risk assessments, review and develop policies, and implement procedures all while ensuring rigorous compliance with the evergrowing rules and regulations banks must follow. The CFBS Compliance Operations Specialists also have the support of a team of compliance experts with many years’ experience in banking and compliance. CFBS helps banks weather the storm of high turnover and retirement of long-time compliance officers. CFBS can help with business continuity planning by providing a constant and dependable compliance solution for banks and is valuable as part of a bank’s strategic plan for future changes in personnel, providing a cost-effective alternative solution to adding and training additional employees. 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. If you are interested in the service, please contact Erica Friedt at efriedt@ksbankers.com. J
Pub. 11 2022 Issue 3 21 2022 YBOK ANNUAL CONFERENCE SEPTEMBER 14-16, MANHATTAN Come join your fellow YBOKers at this year's 2022 YBOK Annual Conference in Manhattan! This conference is a great opportunity for professional development and networking as well as hearing from a diverse lineup of top-notch speakers. Courtyard by Marriott K-State Alumni Center September 14-16, 2022 If you or your bank is interested in joining the YBOK Division, please reach out to Alex Orel or Bree Magee at the KBA. If you have any questions please call our office at 785-232-3444 or email us at bmagee@ksbankers.com.
22 The rising costs of consumer goods and a tight labor market are leading to increased wage pressure for Kansas banks. Individuals are leaving their jobs at historically high rates as they pursue a career change and/or re-evaluate what they want to be doing in general. Workers are more empowered to not accept wages and working conditions that have been deemed acceptable in the not-so-distant past. “The pressure is real,” says Doug Wareham, President and CEO of the Kansas Bankers Association. “It’s just a very competitive market.” Wareham says coping with wage pressure is a regular topic of discussion during association board and committee meetings across Kansas as bank leaders try to figure out how to best navigate the challenges of the changing market. Wage analysis Increased wage pressure is leading to a general uptick in businesses conducting a wage analysis, either on their own or with the help of a third-party service provider. One of the most common requests that Syndeo — an outsourced human resources service provider — is getting from its clients is for assistance conducting an unbiased wage analysis. That discovery often involves determining whether a company’s base pay is within an acceptable range for the market conditions and making adjustments accordingly. A wage analysis could also take the form of re-evaluating a salary being offered for highly specialized or otherwise hard-to-fill positions. A wage analysis should also be conducted for non-exempt employees. These types of pay-structure assessments may have to be made more frequently as markets change and wage pressures intensify. Employers are increasing their base pay, often in conjunction with offering sign-on bonuses, in hopes of attracting more job candidates. Kansas banks also are taking a hard look at whether their wages are competitive in the market, with many increasing rates for employees in response to increased wage pressure. Wareham says in some cases banks have increased the starting wage for entry-level tellers by $2 to $4 per hour. Wareham says that’s equivalent to what someone with three or four years of industry experience makes. Starting rates for other positions have increased as well. Increasing starting wages is important, but don’t lose sight of the retention piece of this equation. Hiring managers say employers should also apply similar diligence to evaluating the pay of existing employees. Why Kansas Banks Can’t Afford to Ignore Wage Pressure as Recruiting and Retention Challenges Persist By Josh Heck, Syndeo
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