OFFICIAL PUBLICATION OF THE KANSAS BANKERS ASSOCIATION JULY/AUGUST ISSUE 4 2023 MEET KBA’S NEW CHAIRMAN Mark Schifferdecker
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Executive Doug Wareham, President & CEO Kathy Taylor, EVP, General Counsel Terri D. Thomas, EVP, COO Administration Alex Orel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Mary Taylor, SVP, Director of Communications & Marketing Julie Taylor, VP, Computer & Information Systems Sara Blubaugh, VP, Executive Assistant to the President & CEO Tommy Powell, KBEF/Robbins Banking Institute Director Bree Hull, Communications & Marketing Manager, YBOK Division Manager Education and Conferences Brenda L. Unruh, SVP, Director, Education & Conferences/ Strategic Partnerships Becky Milne, VP, Assistant Director, Education & Conferences LeAnn Mott, VP, Education & Conferences Natalie Wareham, Events Manager J.W. Wells, Ag & Trust Division Manager Alana Seelbach, Receptionist/Special Projects Insurance Alex Greig, President, KBA Insurance, Inc. Kent Owens, SVP, KBA Insurance, Inc. Elizabeth Roche, SVP, Employee Benefits Administration Jenny Figge, SVP, Operations Cari Charter, AVP, KBA Insurance, Inc. Cole Thompson, Accounts Manager Legal/Compliance Jackie Kuhn, JD, VP, Staff Attorney Gwen Hill, JD, VP, Staff Attorney Jamie Sheik, JD, VP, Legal Dept. Manager Dylan Serrault, JD, VP, CFBS Manager Bobby Young, JD, VP, Staff Attorney Adeel Syed, JD, VP, Staff Attorney Kelly VanZwoll, JD, VP, Staff Attorney & Gov’t Relations Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kerry Clark, JD, Staff Attorney & Publications Editor Lewis Walton, JD, Compliance Specialist/Auditor Heather Williams, Compliance Operations Specialist/Auditor Meridith DeForest, Administrative Legal Assistant Sarah Lynch-Chaput, Legal Intern Gabe Walker, Legal Intern Tom Thomsen, Legal Intern © 2023 Kansas Bankers Association | The newsLINK Group, LLC. All rights reserved. The Kansas Banker is published six times each year by The newsLINK Group, LLC for the KBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Kansas Bankers Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Kansas Banker is a collective work, and as such, some articles are submitted by authors who are independent of the Kansas Bankers Association. While the The Kansas Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. CONTENTS 6 Meet KBA’s New Chairman Mark Schifferdecker 8 BLOK Session III 2023 BLOK Training Travels to Wichita 10 KBA Leadership on the Road Again … 2023 No-Ties Tour 13 2023 Economic Outlook & Risk Management Conference 14 Community Bankers are Public Servants 21 Bank M&A Outlook & Review Amid Continued Uncertainty By Wyatt Jenkins, CPA, Director, FORVIS Capital Advisors, LLC 24 Multi-Factor Authentication How Having a Layered Defense for Your Bank Can Help to Combat Cyber Threats By Mike Gilmore, Chief Compliance Officer, RESULTS Technology 27 Reflections on a Career in Financial Markets By The Baker Group 29 When It Comes To Phishing, Don’t Take the Bait! By Alex Greig, President, KBA Insurance 30 Kansas Banks Leaning in as Proving Ground for Digital Innovations By NXTUS, Inc. 32 Congratulations KBA, 2023 Hermes Awards Winner! 33 Briefly in Kansas Banking 34 In Memory 36 Help Employees Avoid Stress and Burnout By Mark Thompson, Blue Cross and Blue Shield of Kansas 38 Calendar of Events
MEET KBA’S NEW CHAIR Mark Schifferdecker ark Schifferdecker’s roots in community banking run deep. On Jan. 5, 1923, Mark’s great-grandfather, Martin C. Schifferdecker, was elected to The Farmers’ and Miners’ State Bank of Girard’s (now GNBank, N.A.) board of directors. Later that year, Martin’s son, W. Earl Schifferdecker, began working as a bookkeeper at the bank after graduating from Pittsburg Business College. After a few years, Earl was promoted to President of the bank, and he successfully guided the small bank through the Great Depression. In 1956, Earl’s son Martin Schifferdecker joined his father in the bank after graduating from Kansas State Teachers College and became the bank’s President in 1974 after Earl passed away. Mark joined his father at the bank in 1995, and became President & CEO in 2003. In addition to leading GNBank, Mark has been active on other bank-related boards, which has been helpful in expanding his leadership skills and knowledge of the industry. Mark has served on the boards of Bankers’ Bank of Kansas, Federal Reserve Bank of Kansas City and FHLBank Topeka. KBA had the opportunity to spend some time with Mark recently to talk about what’s important to him and his thoughts on the future of community banking. You come from a banking family. Was joining the family bank always the career plan? I consider myself blessed to be a third-generation community banker. I believe there is no better career, so yes, I always knew that the banking industry and the family bank was where I would eventually end up. I also come from a farming background, and I believe that experience really helped mold me to be a better banker since GNBank has always been predominately an ag bank. Farming actually paid for my college. I worked for a local farmer throughout high school and college. The farmer let me utilize his equipment to farm my dad’s ground which paid for my tuition, housing and other expenses. It was a really great way to learn how to work and I gained respect for the ag industry. Where did you go to college? I went to William Jewell College in Liberty, Missouri, where I earned degrees in Accounting, Business Management and Computer Science. I’m also a graduate of the ABA Stonier Graduate School of Banking. And after college? Well, I earned my CPA and spent 10 years with KPMG, Kansas City, where I worked a lot with audits and taxes and spent a great deal of time working with banks. KPMG was a great training ground. In 1995, my wife Nancy, who is also a CPA, and I moved back to Girard, and I joined the bank. I became the President & CEO of the Bank in 2003 and the Chairman of the Board in 2015, when my dad, Martin, passed away. I was very fortunate that I was able to work side by side with my dad for 20 years. I learned so much about banking and life from him. He loved being a community banker and worked up until the day he died at the age of 80. Let’s talk about mentors you’ve had over your career. As mentioned earlier, my most impactful mentor was my dad. From a very young age, he made sure that I worked in every area of the bank — from running the proof machine to repossessing cars. It gave me a great perspective. My dad was a very genuine and generous leader. I learned ethics from my dad. M 6
He had the utmost integrity in everything he did. A lot of our customers remember my dad helping them when no one else would. He took his job as a community banker very seriously. Also, the local farmer that I worked for throughout high school and college was a person that made his mark on my life — he was just a “Salt of the Earth” kind of guy. He was a hard worker and taught me the value of hard work, how to be organized, and to be prepared for anything. He was also a solid Christian influence in my life. In addition, there were several partners at KPMG that took me under their wing, so to speak, who had an impact on my career and life. I have been fortunate to have had a lot of great mentors. What’s the best day for you as a community banker? The best days are the ones where I get to see our customers succeed. We work with farmers, ranchers, and small businesses across many local communities here in Kansas and southeastern Colorado, and there are many of our customers that come in and start off with, “If it wasn’t for your dad/ grandpa, I/my business would not be where it is today …” I hope to have just as many people say the same thing about me because that is what community banking is all about — making a difference in the lives of the people and communities we serve by helping them achieve their financial dreams and goals. Over the years, our bank has grown, mostly through acquisition. We started with one bank, and today we have 15 locations. Integrating new banks and staff into our existing culture and the GNBank family is also something that I really enjoy. One of the upsides to being a community banker is that no two days are the same. We get to be a small part of every business we help, and that is also very exciting and rewarding. If you could reduce your career into just a few success points, what would they be? A few years ago, our bank’s team developed what we call our four-pillar pledge, which I believe pretty much sums up what I believe any community banker should strive for to be successful. 1. Treat others ethically: I believe it’s essential to do things the right way, to be honest and forthright. 2. Be adaptable: I believe that when you take the approach of “how can we help make this work,” great things can be accomplished. 3. Be customer-focused: the customer is king; it’s why we exist. 4. Invest our time and resources in our communities: it’s important to give back and to be a good corporate citizen; we support 4H, county fairs, little league teams and essentially every other community event. Also, our bank’s management team and I serve on as many local not-forprofit boards as we can. What’s the future of community banking? I believe the future of our industry is bright. The community banking industry is unique; the U.S. is the only country in the world that has such a vast and diverse banking system. I firmly believe that community banks are essential because they are the economic engines of local economies in most cities and towns across the country. Furthermore, community banks assist in creating jobs by helping businesses grow and prosper, which results in the opportunity for many young people to move back into these communities to raise their families. Many Kansas communities have seen jobs disappear, leading to a “brain drain” of sorts. As towns grow economically, they can attract talent back home. The downside to community banking is the very onerous regulatory burden we face. That’s a challenge. I believe that most customers prefer to deal with community banks that have a track record in the community. There’s trust and a relationship. Tell us a little bit about your family? My wife Nancy and I were high school sweethearts, and we just recently celebrated our 35th wedding anniversary. We have two daughters, Sara and Bethany, two son-in-laws, Spencer and Jaysen, and a two-year-old granddaughter, Norah. Sara, Spencer and Norah live in Los Angeles. Bethany and Jaysen have spent the last few years overseas working with a nonprofit organization and have just recently moved to Los Angeles. Nancy and I are blessed with a wonderful family. What do you do in your spare time? My wife and I love babysitting our granddaughter Norah. We enjoy traveling and have been all over the world. We like to do things together outdoors, such as hiking and biking, and I also enjoy running. In addition, Nancy manages her family’s farm. We are both very involved in our local church. 7
BLOK Session III 2023 BLOK TRAINING TRAVELS TO WICHITA he 2023 KBA Bank Leaders of Kansas (BLOK) Class reconvened their executive-level leadership training with a successful third session in Wichita on July 12-14. The first day and a half was filled with an engaging leadership training session facilitated by Ted Garnett, President of PS Culture Matters. Garnett shared the five-part Leadership Job Description that will help class members get the best from their team members. Garnett shared his leadership job description that others could use as a guide to help take them to the next level: 1. Set them up for success; 2. Equip them; 3. Unite the team; 4. Focus on results; 5. Drive accountability. Garnett also encouraged participants to evaluate their bank’s mission statement and core values. He stressed that all banks should value their customers and that each bank needs to identify and communicate what differentiates them in the marketplace. Garnett also gave compelling, personal examples of the power of setting lofty goals. To T Executive Coach Ted Garnett explains the subtleties of non-verbal communication and working together as a team. (L-R) KBA’s Doug Wareham moderated the KBA Leaders Panel, featuring three former KBA Board Chairman: Leonard Wolfe, Frank Carson III and Bob Leftwich. They shared their experience as Chairman and encouraged the BLOK Class to stay involved in the KBA throughout their careers to keep the industry advancing. (L-R) KBA’s Alex Orel moderated a Workforce Development Panel featuring Kansas bankers Shawn Lancelot, Steven Suellentrop and Julie Huber. These bankers offered some of their strategies for recruiting and retaining the best talent. They all agreed that encouraging high school and college students to consider a career in banking is paramount to the pipeline of future Kansas bankers. gain practical experience, he challenged BLOK class members to establish a personal vision, or leadership brand, for which to be known. The key is to ask others the reality of what they are known for and then close the gap between reality and the desired outcome through the execution of the leadership principles that Garnett stressed. He also taught participants conceptual tools to improve their leadership skills within their bank teams to get results. Handson group exercises had the class learn that the number one leadership skill is listening, and the number one group skill is consensus. The class was also assigned a selfaccountability action assignment in Session II that would be presented to the class during Session III. The action assignment was based on Leadership and Self-Deception, written by The Arbinger Institute. After reading the book, each individual implemented a tool taught in the reading, shared their number one takeaway and reported the lesson learned and its effect on their personal and professional relationships. Many impactful stories were shared! Wichita State University hosted Friday morning’s training at the beautiful new academic building Wayne and Kay Woolsey Hall, the new home of the W. Frank Barton School of Business. The last day began with a KBA Leaders Challenge Panel featuring distinguished KBA bank leaders Frank Carson III (Chairman, Carson Bank, Mulvane, and KBA Chairman 2012-2013), Bob Leftwich (Director, Impact Bank, Wellington, and KBA Chairman 20152016), and Leonard Wolfe (President & CEO, United Bank & Trust, Marysville, and KBA Chairman 2013-2014). These gentlemen shared insights on leadership in their banks and communities, what led them to serve on the KBA Board of Directors and the significance of being engaged with the KBA. The class was also able to hear and ask questions of the panelists on their leadership styles and important events during their term as Chairman. The BLOK Class was then able to gain knowledge from an interactive Workforce Development Panel discussion featuring KBA Board Member 8
The BLOK Class participated in an exercise that challenged them to meet deadlines with incomplete information. and 2012 BLOK Graduate Julie Huber (Executive Vice President/Strategic Initiatives, Equity Bank, Wichita), Shawn Lancelot (Market President, Bank of America, Wichita), and 2018 BLOK Graduate Steven Suellentrop (President & CEO, Legacy Bank, Wichita). The distinguished panelists discussed their strategies for identifying new bank talent and retaining great employees. Panelists revealed ways that they are trying to connect with younger generations of employees with intentional policies that appeal to their values. The session concluded with a tour of the new Wayne and Kay Woolsey Hall. The BLOK Class will reconvene at their fourth and final session in Washington, D.C., in September, where they will join the KBA Federal Affairs Committee and KBA Board of Directors for a march on Capitol Hill. Members of the 2023 BLOK class are Amy Barber, Central National Bank, Topeka; Crystal Boyer, First Interstate Bank, Shawnee; Jen Cocking, Capitol Federal Savings Bank, Topeka; Dena Flach, Stockgrowers State Bank, Maple Hill; Alex Goodpaster, Equity Bank, Overland Park; Mike Hamilton, Adams Bank & Trust, Colby; Victoria Pruitt, First National Bank of Hutchinson, Hutchinson; Kristie Henry, Community National Bank, Seneca; Dustin Hickel, INTRUST Bank, N.A., Prairie Village; Brett Hubka, GNBank, N.A., Clay Center; Sarah Keeny Moon, Citizens Bank of Kansas, Derby; Carl Keith, Solutions North Bank, Hill City; Garet King, Fusion Bank, Overland Park; Matt Koupal, FHLBank Topeka, Topeka; James Leftwich, Security 1st Title, LLC., Wichita; Katrina Loader, Astra Bank, Abilene; Rex Reynolds, Legacy Bank, Wichita; Elizabeth Roche, Kansas Bankers Association, Topeka; Justin Sparks, Bankers’ Bank of Kansas, Wichita; and Adeel Syed, Kansas Bankers Association, Topeka. Thanks to BLOK Sponsors! Premier: Blue Cross Blue Shield of Kansas, FHLBank Topeka, and KBA Insurance, Inc.; Silver: INTRUST Bank, N.A.; Bronze: Bankers’ Bank of Kansas and Professional Bank Consultants, LLC. The 2023 BLOK Class paused for a group photo before receiving a WSU Barton School of Business – Woolsey Hall tour. 9
KBA Leadership on the Road Again … 2023 NO-TIES TOUR Brad Zimmerman, KBA Board Member and President of Farmers Bank & Trust in Atwood. Brandon Oien, President & CEO, and Gary Walter, Board Chairman of The Bank in Oberlin. Chris Wente, President & CEO at Golden Belt Bank in Hays. Dale Winklepleck, KBA Board Member and President & CEO of Solutions North Bank in Stockton. Irv Mitchell, President of Wilson State Bank in Russell. Matt Engel, President & CEO at Farmers State Bank in Oakley. Rodger Van Loenen, President & CEO at Farmers State Bank in Phillipsburg. KBA President & CEO Doug Wareham along with Alex Greig, President — KBA Insurance, Inc.; Terri Thomas, EVP & COO; Mary Taylor, SVP — Communications & Marketing Director; Kansas Bankers Educational Foundation Ambassador Ron Johnson; Kathy Taylor, EVP — General Counsel and Alex Orel, SVP — Government Relations hit the road this summer visiting banks as part of the annual summer “No Ties Tour.” Thank you, Kansas bankers, for taking the time to visit with us! We truly value these conversations! Our journeys are not yet complete, so stay tuned for more in the next issue of The Kansas Banker. 10
Taylor Hight, President & CEO at American Bank of Baxter Springs. Jean Ann Wagner, President & CEO of Farmers National Bank in Phillipsburg. Bank of Hays President John Clarke in Hays. John Engelbert, KBA Board Member and President & CEO of First State Bank in Norton. Sharon Schamberger, President & CEO of Outdoor Bank in Hoxie, Kansas. Southwind Bank President Vance Ruggels in Russell. GNBank, N.A. team in Girard. Laura and Hunter Cox, Vice Presidents at Baxter State Bank in Baxter Springs. Exchange State Bank team in Girard. Greg Saville, CEO; Kent Culbertson, SVP; and Brandi Archer, Consumer Loan Officer, at First National Bank and Trust in Phillipsburg. 11
Commercial Bank team in Parsons. KBA Past Chairman Mike Ewy, CEO, (far left) and Jeff Stewart, President, (far right), Community State Bank in Coffeyville. FirstOak Bank team in Independence. Bill Wyckoff, CEO, of Labette Bank in Altamont. Tyson Rucker, Chairman/COO, of Home State Bank & Trust in Eureka. President Martin Hunter and team at Howard State Bank in Howard. Peoples State Bank team in Cherryvale. Frank Carson III, Chairman of the Board, and Frank Carson IV, President & CEO, of Carson Bank in Mulvane. President & CEO John Hill and team at The City State Bank in Fort Scott. Dwight Nelson, President and team of Goppert State Service Bank in Garnett. Garrett Sharp, VP of Community National Bank and Trust in Chanute receives his BLOK. Bank of Greeley team in Greeley. 12
President & CEO Mike Dixson of Southwest National Bank in Wichita. Chairman & CEO Steve Carr of Community Bank of Wichita. CEO Calvin Coady of Bankers’ Bank of Kansas in Wichita. Farmers State Bank team in Blue Mound. Union State Bank team in Uniontown. Jonathon Johnson, President & CEO, and his team at Home Savings Bank in Chanute. Patriots Bank team in Garnett. Landmark National Bank team in Topeka. Alex Jones, Vice President from Bank of Commerce in Neodesha receives his BLOK. 13
eyond lending to local businesses and households, smaller banks often serve key leadership roles in their communities. These bankers sit on the boards of local schools, hospitals and other civic organizations, not only meeting the credit needs of their local communities but they are also an integral part of them. Gary Walter drove The Bank golf cart during the Oberlin town parade. Gary Walter, Chairman at The Bank in Oberlin, representing his alma mater Kansas State University. Community Bankers are Public Servants Shop Local to Get Ahead Gary J. Walter Chairman, The Bank, Oberlin, Kansas Gary J. Walter, Chairman at The Bank in Oberlin, started out in banking in 1982 at the Decatur County National Bank in Oberlin. The failed Decatur County National Bank was eventually bought in 1985 by The Bank when Walter became Vice President. Before starting in banking, Walter liked to tell people and joke that he was a special agent for the FBI (it was actually Farm Bureau Insurance, not the Federal Bureau of Investigation). Walter had originally moved from Manhattan with his family to Oberlin since both he and his wife’s parents lived in St. Francis, and they could help them as needed. Walter was elected to the Oberlin City Council Board in 1997, and as he was reelected for a second term in 2001, the current mayor at the time decided to resign. Since the resignation was during a term, Walter needed to step into the Mayor’s seat from his position as Board President. He served as Mayor until April 17, 2003, when he handed the seat off to the next mayor, Ken Shobe. In becoming Mayor and bringing his banking experience with him, Walter said one thing he thought was, “I am a banker, and I don’t like surprises.” This came from an instance where a city employee was called out in an open meeting when neither the Mayor nor the City Administrator were aware of the concern. Walter had made the comment at the meeting that there was no allowable reason that someone would do that, and if there was a concern, there were avenues to go through to the City Administrator and through the Mayor before bringing it up in a meeting that, at the time, was being televised on the local cable channel to the whole community. With this vision of transparency, Walter did not want to be blindsided by an issue. His experience in banking helped him in being Mayor by exposing him to the financial sector, such as the finances of the city. “Both of these roles have entities that have to work together toward the common goal,” Walter said. “Which is to have everything run properly and not be foul of any problems.” Mayor Gary Walter looking over the city of Oberlin from the city water tower. 14
These two experiences had many parts working together, and as with banking, the city had many parts that needed to run smoothly, such as street examinations, the local swimming pool, or helping with a county fair’s success for the common good of the community. It also helped Walter, as Mayor, to support shopping locally. Oberlin is 30 miles from McCook, Nebraska, and McCook has had a Walmart for many years. Walter made the statement when he was running for the city council that, “I could pay $40 dollars more and buy the product in Oberlin and be money ahead. Some people thought that was the most ridiculous statement that they had ever heard.” He said when people would ask about that statement, he’d say he’d be driving 60 miles with gas expenses and wear and tear on his vehicle. His family’s car could not drive by the Baskin Robbins without stopping to get ice cream. Then when they were in the store, they would see, and at times purchase, more items that they thought they might need when they really might not. So, all of this will come out in more money spent, as well as more time making the journey, than just spending the $40 locally to support the local businesses in town. “I just felt like we wanted to promote shopping locally, and that is exactly the same thing that we were promoting when we were loaning money to local businesses and farmers and the people of our community that were dependent upon them,” Walter said. The Bank made an acquisition in 2002, and the bank board promoted Walter to Bank President. Even though he had a full plate with everything going on, he had the full support of The Bank Chairman R.L. Gaskill, the City Administrator and the head of the departments. Walter’s biggest challenge was always making sure that what they were doing was for the betterment of the community and separating personal feelings from professional. He said he really learned this as a young banker when he had to start wearing a necktie. The necktie allowed him to dress differently than the customers, and he was able to have that separation from the friend, whom he was to most borrowers, to be the banker who had to enforce the contracts at times. Sometimes in being Mayor, he also had to make hard decisions that were not always popular. Walter looked up to a man named Sam Wilcoxon, who at the time was a high-up AT&T employee with many years of business experience so that he could ask his opinion on making these hard decisions. Over the years, Walter also officiated wrestling for almost 20 years, is a husband and a father to three girls and helped his father-in-law throughout the years on the farm. His greatest professional achievement has been doing his best to better his community. Tested by Fire Kendal Kay President & CEO, Stockgrowers State Bank, Ashland Kendal Kay, President & CEO of Stockgrowers State Bank in Ashland, started his banking career on Oct. 23, 1995, after graduating with an accounting degree from Northwestern Oklahoma State University in Alva, Oklahoma. He started out doing the accounting for the bank, like the call report, IT and the holding company books. He then came up through the ranks by becoming President when he was just 29 years old. Since he had to work in all positions, this allowed Kay to know the process of how a check clears all the way through the bank. Protection, Kansas, native Kay said it was hard to root for Ashland when he first moved there, so he decided to become involved more by being a part of the city council in April 1997. In 2009, Kay was ending his third-year term on the city council. He knew the current mayor wasn’t going to rerun, and he said it didn’t look like anyone else was going to step up to take the position. On a night before the deadline, Kay went home to his wife and said he thought he might run for mayor since it didn’t look like anyone was going to step up. His wife had said, “Well, you can run, but I am not going to vote for you.” Kay stated that while Karrie said that jokingly, she was always very supportive of him. In April 2009, Kay stepped into the role of mayor for Ashland. After 25 years of public service, Kay retired from his mayoral seat in January 2022. Initially, Kay wanted to step down in 2017, but Ashland was struck by the Starbuck Prairie Fire, so he decided to stay on. Kendal Kay (right), President & CEO at Stockgrowers State Bank in Ashland, with Senator Bob Dole (left). Kendal Kay (left) and his wife Karrie (right) with their granddaughter Kora Konrade (middle). The Starbuck fire near Ashland. Photo taken by Bo Rader from the Wichita Eagle. 15
This fire had caught high winds and rode waves of desiccated plant material up from Oklahoma. It consumed nearly 663,000 acres, killed unknown numbers of livestock, destroyed 40 homes and claimed one life. Kay was tasked with helping rally community resources, and Stockgrowers State Bank contributed significantly to the efforts. Kay stated in an interview with Ingram’s 50 Kansans You Should Know in 2018, “We were tasked with an enormous challenge of survival, and then the massive effort and responsibility of recovery. Those who call Ashland home rose to a new level of excellence.” His key advice to anyone wanting to run for public office is to have no personal agenda but to just care to better the community in which they serve. “You need to learn how to work with people to make things happen,” Kay said. “Government is hard; even if you are at the city of Ashland level, you are still the government. People pay their tax dollars and want things to be run responsibly.” The experience of running the business of the bank did pay dividends in helping lead the city and to be a good steward of taxpayer dollars. It wasn’t always easy, but Kay and the city administration always worked together to find a solution despite differences when making decisions. “In many ways, we’re all trying to do the same thing, and that is growing our community and bettering our community,” Kay said. “When you work with people and sometimes you just flat don’t care who gets credit, it’s amazing what can get done.” One example would be the electric, water and sewer infrastructures that cost thousands of dollars to maintain. Kay said you don’t want to just maintain, you want to improve as well, but the city can’t afford to replace whole systems. But doing things to upgrade every year helps in improving the overall structure and can make things better for the future and for the next generation. One of Kay’s challenges as mayor was being too accessible. But he said he was fortunate enough to work for community bankers that not just care about their community but want to see their community succeed, and so they gave him the opportunity to serve their local community. It was a full-time commitment, and there were always interruptions during the day, seeing as the bank was just right across the street from city hall. Another challenge was just always trying to be fair. Kay said that you can’t please everyone dealing in government, so you want to come up with the best solution. In 2016, the city wanted to build a new hospital. The hospital board came to the city administration and wanted to establish a public building commission so they could issue bonds for it. The revenues from the hospital would then go to pay for the bonds. It all sounded fine, but certain people didn’t want it to move forward. After many meetings, the decision to build was finally put to a vote by the public. This wasn’t easy, but the vote passed 70-30, and the city of Ashland is grateful to have a new hospital in their community. Besides being mayor, Kay has had the opportunity to serve in other capacities as well. He served on the Bankers’ Bank of Kansas board from 2010-2016, the KBA Board from 2009-2012, and was in the third KBA Bank Leaders of Kansas (BLOK) class in 2008. He currently serves on the Board for Ashland 2020, Inc., Ashland’s 501C Fitness Center, United Methodist Health Ministry Fund Board of Directors, and is a member of the KBA Federal Affairs Committee. Kay enjoys spending time with his family. He and his wife Karrie have four children: Sloan (and sonin-law Kole), Reece, Braton and Kinley and one granddaughter Kora. A 30,000-Foot View Mark Kennedy Assistant Vice President & Trust Officer Citizens State Bank & Trust Co., Ellsworth Mark Kennedy is the Assistant Vice President & Trust Officer at Citizens State Bank & Trust Co. in Ellsworth. After graduating from the University of Kansas with degrees in sports management and marketing, he was offered a job back in his hometown of Ellsworth with the bank as a Trust Officer in Training in 2012. Kennedy was approached shortly after he moved back to Ellsworth in October 2012 by the then-mayor because there was a vacancy on the city council. He was appointed by the mayor in October of that year to fill the vacancy for the rest of the term. Kennedy was re-elected Kendal Kay (right), President at Stockgrowers State Bank in Ashland, talking with Senator Pat Roberts (left) at the Command Center after the Starbuck fire in 2017. Mark Kennedy (left) with his wife Emily (right) and daughter Patton (middle). 16
to that council seat in November 2015, and his next term went into effect from January 2016-December 2019. He wasn’t intending to run again, but in November 2019, with just two months left in his term, the current mayor decided to resign. Since Kennedy was the Council President and per council code, he needed to step in and fill the unexpired term. He went from two months left on his term to two years from November 2019 until it ended in December 2021. In wearing both hats as mayor and a full-time banker, Kennedy used his experience in the trust industry to deal with the stress that came up from being in both jobs. “You could get caught up in the dayto-day noise, but you really have to be diligent by taking a 30,000-foot view out of everything and look at everything as a process,” Kennedy said. In dealing with the stress of being mayor, Kennedy looked to his experience in his bank’s trust department. Some stressful examples might include helping with an individual’s retirement funds. Different phases of a client’s life bring about unique challenges, whether he or she is in the accumulation phase of retirement planning or entering the distribution phase. Decisions we make every day can have a huge impact on the rest of a person’s life. Kennedy said he thought his experience equates well in government because a) how slow things can move and b) little things can happen every single day, such as hiccups in city projects. He said he wouldn’t let the little issues become bigger by worrying all the time about every single little thing that came up. “Don’t get me wrong, they’re important,” Kennedy said. “But you have to look at the whole thing as a process, and the ultimate goal is where you want to be at the end of a project.” His experience in banking specifically helped with the financial aspect of city government. Kennedy said that in small rural communities, they needed to really rely on individuals expertise and the makeup of their council. When he was mayor, they had an individual who was an engineer, another that worked for the local power company and one who was an extension agent. “There’s no way you can know everything about every different topic, so you need to lean on those individuals,” Kennedy said. “For me, my role as a banker really helped us out when we were talking about financing projects, the timing and issuing of debt, our financial advisors and going through the bond indentures and various things like that. Hopefully, my work in areas like that daily made that process a lot smoother for everybody else.” When working with people, Kennedy said banking and mayorship ran parallel. People are at the forefront, whether it is citizens at the city council or their customers in the bank. He had to find a way to work with people, even individuals he might not have agreed with or maybe had a rocky relationship with in the past, to find common ground. “People appreciate and respect you more if you are upfront and honest and act with a high level of integrity,” Kennedy said. Ultimately, he said that people generally understood that he was in it to see the community succeed, and they were willing to work with him. Shortly after becoming mayor, Ellsworth was without a city administrator for about six months. During that six-month period, Kennedy said he felt like he was doing double duty. He had to put his head and time together with the City Attorney and the City Clerk to do the role of the City Administrator while that position was vacant. “The bank was very gracious,” Kennedy said, and there were times when he felt like he was giving too much time to one and not the other. When they found the right person for that position, it made that situation so much better. This was also during the time the COVID-19 pandemic hit Kansas, and communities needed to quarantine to fight off the virus. “One thing I told incoming council members throughout the years I was on was you have to be willing to put in the time,” Kennedy said. Kennedy is an alumnus of the KBA Bank Leaders of Kansas (BLOK) class of 2017. This opportunity was a neat carryover for him to fill the shoes of the mayor. “It was immersive on both federal and state side of things,” Kennedy said, “to not only be able to work with Steven Johnson (who was the Kansas State Representative at the time) but get to know him through BLOK but also through work on the City Council and ultimately then as Mayor.” And on the federal level, Kennedy was able to get to know Senator Jerry Moran throughout that period where Moran would even pop into the bank on a Mark Kennedy (middle), Assistant Vice President and Trust Officer at Citizens State Bank & Trust Co. in Ellsworth, at a ribbon cutting. Photo taken by Ellsworth County Independent Reporter. Kennedy served as mayor for Ellsworth from January 2016 to December 2019. 17
Friday and chat with Kennedy to catch up. BLOK helped Kennedy get a leg up where, if he needed to involve their state or federal legislators, he had that relationship already established. Kennedy stepped down from mayorship in 2021, he currently serves on the KBA Trust Committee as Vice President and has been asked by KBA’s Alex Orel, SVP — Government Relations, to come to speak to current BLOK classes the last several years during one of the sessions. Kennedy and his wife, Emily, have one daughter Patton and another on the way! Three-Legged Stool Michael “Mike” A. Boehm SVP — Commercial Banking, Commerce Bank, Lenexa Michael “Mike” A. Boehm, SVP of Commercial Banking at Commerce Bank in Lenexa, is now the longestserving mayor in Lenexa’s history and has run unopposed in all subsequent elections since 2003 until he is set to retire his position on Dec. 5, 2023. After graduating from the University of Kansas in 1982 with a bachelor’s degree in business administration, Boehm started his banking career at First National Bank of Olathe as a teller, loan clerk, consumer loan collector, and finally as an assistant loan officer of consumer loans. He then moved to the Lenexa National Bank (which was acquired by Commerce Bank effective Jan. 1, 1993) in September of 1985 as an AVP in the commercial loan department. From July 1991-April 1995, Boehm served on the Lenexa Planning Commission and then served on the Lenexa City Council from April 1995-January 2003. Boehm, a lifelong Lenexa resident, was initially appointed mayor when Joan Bowman was elected to step down due to health issues. The council retained him for the remainder of her term before he sought his next term in April 2003. According to Kansas City NBC affiliate 41 KSHB, during Boehm’s time as mayor, Lenexa has grown by an estimated 50% surpassing 50,000 residents and approaching approximately 60,000, to become the eighth largest city in Kansas. During his mayoral tenure, the city has built a rec center and public market; expanded City Center, adopted bodyworn cameras for police in 2009; opened a new fire station; improved the city’s financial rating to Triple-A (or AAA), upgraded Lenexa’s parks and roads; and broke ground on a new justice center among other accomplishments. “We are indebted to Mayor Boehm for his amazing contributions to Lenexa,” Lenexa City Manager Beccy Yocham said in a statement to 41 KSHB. “He is a visionary leader who inspires the best in the people, and our community has grown immensely under his leadership.” His experience in banking helped with managing the city’s multi-million-dollar budget, projected to be $224.8 million in 2024, which is adopted every year. The knowledge of how he finances bank deals and how deals need to make sense has helped him with the designing, negotiating, and approving economic development incentive packages to encourage growth and development of the city. He said the budget is the most important thing that mayors and their councils along with staff do every year, and it applies to whether you’re a small town or a large city, whether you’re expanding or contracting. “If you’re a growing community, understanding how that works and having relationships with developers, attracting businesses and incoming development is very important,” Boehm said. “If you’re not helping grow your community, your bank opportunities are limited as well.” Boehm said it is very rewarding to be a part of a great team and that it’s like a three-legged stool. They have the elected, the staff and the voters, and they all must get along and listen and work hard together for the good of everybody. “Every mayor you talk to will have that same thought process; the council and the mayor are representing the community, and the staff implements the vision,” Boehm said. “If you’re not all working together, then one is going to fall.” Michael Boehm receives an award for being the longest-serving mayor for the city. Boehm gives a speech at a city presentation. Michael Boehm, SVP of Commercial Banking at Commerce Bank and Lenexa Mayor. 18
Mike is actively involved in community, city and state organizations involved in municipal policy and leadership. He serves in several public and community service organizations, including: • Johnson County Community College Foundation Board Executive Committee (July 2019-present) • Greater Kansas City Chamber of Commerce Board of Directors (June 2019-present) • KBA State Affairs Committee • Mid-America Regional Council Board of Directors (January 2018-present) • Johnson County Research Triangle Authority Board (2009-2015 & 2021-present) • Johnson County Community College Foundation Board of Directors (2015-present) • League of Kansas Municipalities Board of Directors (President 2005-2006) • Lenexa Chamber of Commerce Board of Directors (ex officio) (2003-present) • Lenexa Chamber of Commerce (Lifetime Member) • Johnson County Community College Carlsen Center Program Advisory Committee • Lenexa Historical Society (Lifetime Member) • Holy Trinity Catholic Church Welcome to Waverly Craig Meader CEO & Chairman, First National Bank of Kansas, Waverly Craig Meader, CEO & Chairman of First National Bank of Kansas in Waverly, began his banking career in 1981 after graduating from Kearney State in Kearney, Nebraska, with his bachelor’s degree in business administration and finance. At only 23, Meader became the youngest bank President in Kansas at the time. Meader’s father had bought First National Bank of Kansas in 1965 in Waverly, where he ran it as President & CEO until the time of his passing when Craig was only 15. Meader not only lost his father, but the town lost their community banker, public servant and friend. While Meader was growing up, he fondly remembered the townspeople stepping in to help serve in the father role after his father’s passing, which helped him grow into the man he is today. This inspired him to later join the Waverly City Council in 1987 and then step into the role of Mayor in 2003 until he retired in 2019. “My biggest inspiration was my father,” Meader said. “He did a lot for Waverly, including a nursing home and an exit for the town off I-35. He bought a $1.5 million bank on a Friday and closed the deal on the following Wednesday, and doubled its size in a year; you can’t do that today. He passed at age 43, and basically, my mom and dad’s friends and community raised me. I learned a lot of community responsibility.” Throughout Meader’s 16 years as Mayor, he relied on his experience in banking to help with understanding the town’s numbers as this was the number one deficiency on the council, and they looked to him when there was a money question on the table. Meader said that as a community banker, he was able to serve a wide variety of customers and was engaged with both his state and national politicians. This helped when applying for grants and financial assistance for the city. With the bank being right across the street from City Hall, Meader had a full plate to balance as both a full-time community banker and as the town Mayor that came with both successes and challenges. Meader would approach every situation with an open mind to listen to the diversity of comments and questions. He said that being a country boy, he could easily sniff out BS a mile away and was never shy about stepping forward and putting a stop to some crazy requests. He used the mindset that regardless of any circumstance if you are steering the city in the correct financial direction and at the same time maintaining a social/aesthetic balance, it would keep the city a place people would want to live. Leading the town on certain aspects also came with much opposition. Meader said that he would educate himself on every issue from every angle to prepare for questions from his constituents. His greatest fear was communicating with folks who “don’t know what they don’t know,” and that blind ignorance could be very dangerous. Craig Meader, CEO and Chairman at First National Bank of Kansas in Waverly, served as mayor for Waverly for 16 consecutive years from 2003-2019. The opening segment of the “Welcome to Waverly” documentary showcasing the town. 19
One example of this would be a proposal from the Bravo TV network, which wanted to do a documentary called “Welcome to Waverly” on the town in 2018. They brought in eight totally diverse strangers to partner up with citizens from their community in similar jobs such as politics, real estate, BBQ, beautician, etc. “Well, I had a big no from a strong minority of citizens on the proposal,” Meader said. “We had a majority of the town to support the idea, so educating the ‘hell no’ folks was a challenge.” The project was a resounding success, and the three-part show is still in the library to view at Bravotv.com. Throughout his time as mayor, one of his successes was seeing the finalization of the Heck Additions for the future building of the town. It had started while he was on the council and finished early in the mayoral role. He is hoping the current city council will do phase two as they will need room for expansion as Waverly continues to grow and be vibrant. Meader’s greatest accomplishment overall is his family. He and his wife, Peggy, have two children, Paige and Payton, who’ve made all the unheard-of work worth it. Besides his many years of public service and still continuing to serve as a full-time community banker, Meader was also KBA Chairman in 2002-2003, Bankers’ Bank of Kansas Chairman 2010-2011, served on numerous ABA boards and the ABA Board of Directors, The KBA Board of Directors, KBA Federal Affairs Committee, Coffey County Economic Development Committee, FHLBank Topeka Board, and many more. Craig Meader, CEO and Chairman at First National Bank of Kansas in Waverly, presented Ms. Bernice with a plaque celebrating her 100th birthday at Sunset Manor in Waverly during his time as mayor. Craig Meader, CEO and Chairman at First National Bank of Kansas in Waverly, interviews with Bravo Television for a documentary on the city of Waverly during his time as mayor. Photo credit goes to Bravo Television. Human Resources Employee Benefits Risk Management Payroll Processing Staffing Schedule a free consultation today (316) 630-9107 | sales@syndeohro.com | syndeohro.com FREE YOUR BANK FROM THE HASSLES OF HR. 20
ank mergers and acquisitions (M&A) were hard hit last year, with only 168 announced whole bank and thrift transactions in 2022. Excluding the pandemic low of only 112 transactions in 2020, banking M&A fell to its lowest level since 2011, when only 145 transactions were recorded. The unexpected liquidity crisis in early 2023 that included the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank sent shockwaves through the banking industry and further cooled the already tepid bank M&A market. Transaction activity through May 2023 has slowed significantly, putting deal activity for the year on pace for even fewer deals than in 2022. Battling persistently high levels of inflation, the Federal Reserve (Fed) continued to tighten monetary policy in 2022, enacting seven interest rate increases totaling 425 basis points. The Fed continued to try to cool the economy in 2023, but at a slower pace as the banking industry faced a liquidity crisis and worries about an economic downturn continued to build, enacting three additional interest rate increases of only 25 basis points each before announcing a much-anticipated pause in June after some moderation in inflation data. Based on the latest data available as of this writing, The Conference Board’s Leading Economic Index® declined for a 14th consecutive month in May. This continued decline has led The Conference Board to forecast a mild recession toward the end of 2023 or the beginning of 2024. The worsening economic outlook, and slight moderation in inflation pressures, make it likely that the Fed will hold off on additional interest rate hikes for some time after its decision to pause rate increases at the June meeting. However, with inflation still running ahead of the Fed’s 2% target, it’s possible that the Fed could re-evaluate as additional economic data becomes available throughout the year. Stock prices for banks continue to face downward pressure in 2023. The Dow Jones U.S. Banks Index (DJUSBK) is down 22.72% at $390.05 for the 12-month period ended May 31, 2023, while the KBW Nasdaq Bank Index (BKX) is down 33.59% at $81.23 in the same period. Pricing for whole bank and thrift transactions in 2022 was nearly flat compared to 2021, with an average price to tangible book value (P/TBV) of 155% in 2022, compared to 157% in 2021. Pricing in 2022 also was reasonably in line with the pricing seen pre-pandemic of 158% P/TBV in 2019. Year-to-date through May 2023 has seen a total of 34 announced transactions nationwide, which is significantly lower than the 67 transactions announced through May 2022. Based on transactions with pricing data available, P/TBV has averaged 128% through May 2023. From a regional perspective, Midwest transactions totaled 71 in 2022 compared to 84 in 2021, with an average P/TBV of 150% compared to 147% in 2021. Yearto-date through May 2023 has seen a total of 21 announced transactions in the Midwest, which is behind the 31 transactions announced through May 2022. Based on transactions with pricing data available, P/TBV has averaged 137% through May 2023 for these Midwest transactions. In Kansas, there were five transactions in 2022 compared to seven transactions in 2021. There were two transactions with disclosed pricing data in Kansas in 2022, which were Spring Harvest Corporation’s acquisition of My Anns Corporation, the parent company of Piqua State Bank, at 134% P/TBV and Landmark Bancorp Inc.’s acquisition of Freedom Bancshares, Inc. at 152% P/TBV. There was only one transaction with disclosed pricing data in the state in 2021, which was Equity Bancshares, Inc.’s acquisition of American State Bancshares, Inc. in May 2021 at 113% P/TBV. Bank M&A Outlook & Review Amid Continued Uncertainty By Wyatt Jenkins, CPA, Director, FORVIS Capital Advisors, LLC 21
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