OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION 2023-2024 KBA Officer Team SEPTEMBER/OCTOBER ISSUE 5 2023
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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 Sara Blubaugh, SVP, Administration and Board Secretary Julie Taylor, VP, Computer & Information Systems 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 Sarah Weltmer, Compliance Operations Specialist Meridith DeForest, Administrative Legal Assistant Sarah Lynch-Chaput, Legal Intern Gabe Walker, Legal Intern Tom Thomsen, Legal Intern © 2023 Kansas Bankers Association | The newsLINK Group, LLC. All rights reserved. The Kansas Banker is published six times each year by The newsLINK Group, LLC for the KBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Kansas Bankers Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Kansas Banker is a collective work, and as such, some articles are submitted by authors who are independent of the Kansas Bankers Association. While the The Kansas Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. CONTENTS 6 Chairman’s Message: Redefining Engagement AKA “This Ain’t Your Grandfather’s Engagement!” By Mark Schifferdecker, KBA Chairman 10 Triumphs at the 2023 CEO Summit 14 Congratulations to These Century of Family Banking Recipients 16 50 Year Club Awards 20 Meet the New KBA Board Members 22 Washington Update: Advocating for ACRE How Congress Can Help Rural America By Rob Nichols, President and CEO, American Bankers Association 24 Can Enhanced Due Diligence Help Your Bank Avoid Cybersecurity Risk? By Mike Gilmore, Chief Compliance Officer, RESULTS Technology 26 KBA Leadership: The Journey Continues … 2023 No-Ties Tour Part 2 28 Is Your Balance Sheet Recession Ready? By Dale Sheller, Associate Partner, The Baker Group 30 Briefly in Kansas Banking 31 What Does ChatGPT Have To Say About Maximizing the Use of ChatGPT? By Neal Reynolds, President, BankMarketingCenter.com 34 Calendar of Events
consider myself very blessed to grow up as a third-generation community banker. Around my house growing up, we could never plan a family vacation over the second Tuesday of the month because that was the day of the board meeting. As a young teenager, I learned how to run the proof machine, be a teller, file checks, clerk farm sales and even repo vehicles and equipment (I’m sure no child labor laws were violated!). I got used to hearing the old timers say, “I got my very first loan from your grandpa …,” etc. According to KBA records, at one time, there were over 1,300 bank charters in Kansas. Of course, many banks did not survive the Great Depression, and after branch banking laws came into existence in the 1980s-1990s, that number declined to around 625 bank charters. As mergers and acquisitions have continued to take place, combined with a significant increase in regulatory burden, the number of Kansas bank charters has now decreased to 206. Back in my grandfather’s day, banker engagement with legislators and regulators was predominately limited to the bank President. Federal and State politics, with respect to banking, were not as highly partisan and polarized as they are today. Grandpa’s legislative engagement typically consisted of enjoying a cigar while barbecuing chicken with his U.S. or state representative when they were in town, where they would discuss issues related to banking. Numerous trips to Washington, D.C. or Topeka were not typical. Although community banks did face significant regulatory and legislative challenges, such as regulation of deposit interest rates, anti-competition and insider laws, the heads of the bank regulatory agencies were not highly political, and their CHAIRMAN’S MESSAGE Mark Schifferdecker, KBA Chairman REDEFINING ENGAGEMENT AKA “This Ain’t Your Grandfather’s Engagement!” efforts primarily focused on bank safety and soundness. Acronyms such as BSA, CRA, HMDA and DFA were not a thing. The Production Credit Association and Farm & Home Administration (aka Farm Credit) pretty much stayed in their lane as a lender of last resort. Of course, the average community bank in Kansas back in my grandfather’s day looked much different than today. For instance, in 1960, GNBank’s (aka The Girard National Bank) total assets were $2.7 million, which consisted of $1.2 million in total loans and $1.6 million in non-interest bearing demand deposits. The most complex technology in the bank was a two-pocket proof machine, and all transactions were manually posted to ledger sheets. Just as our community banks have significantly evolved since my grandfather’s day, so must our engagement and advocacy for community banks! We cannot be passive, assuming it is solely the bank CEO, the KBA or ABA’s job to be engaged on the issues. Rather we need to have all of our bank officers, staff, board and even our customers actively engaged in order to ensure our country continues to enjoy the most dynamic and diverse banking system in the world. I believe the stakes have never been higher. The polarization of our political system seems to be rapidly growing. Wellmeaning legislators on both ends of the political spectrum might react to an issue like ESG by introducing bank legislation that results in significant unintended consequences damaging small businesses, farmers and our state and national economy. The heads of federal banking agencies seem to approach the duties of their office in somewhat of an “activist” role to accomplish specific agendas of the administration by which they were appointed. I 6
Not only are the stakes high, but the number of significant issues facing community banks also seems to be growing exponentially. A quick Google search of the history of major federal banking laws found that there were only three or four significant acts passed between 1930-1970, while that number has increased to over a dozen since 1970, with several more on the table at the current time. Of course, not all federal banking acts were created equally, with legislation like the Dodd-Frank Act resulting in scores and scores of sections and sub-sections having a significant impact on our industry. So how do we as community bankers respond to these challenges? Of course, there are many ways and methods, but let me highlight four: 1. Engage directly with KBA, ABA and other banking associations. Whether you are the bank CEO, a member of the board, a loan officer, an operations officer, a compliance officer, IT, HR, CSR, teller or in another area of the bank, you must be engaged. Please do not assume that engagement and advocacy is only the President or CEO’s job. Our associations can only be effective when all bankers are involved, providing direction, perspective and feedback. If you are the bank President or CEO, please allow and encourage your staff’s participation. If you work in another role at your bank, please ask your supervisor or CEO if you can be more engaged. I am biased, but I firmly believe we have one of the best state banking associations in the country! As I move through the KBA chairs of office, I have become more and more convinced that Doug and Team KBA are the best of the best … they are passionate, articulate and tireless advocates for Kansas community banks. But they can’t do that without our help. Therefore, please stay engaged, whether it be serving on a KBA committee, task force, the board or regular attendance at the KBA’s valuable educational opportunities. 2. Engage directly with your federal and state legislators. Although KBA, ABA and other organizations do a terrific job coordinating and strategizing on government relations, these efforts are significantly more effective if we, as bankers and constituents, engage directly with our elected leaders. Such engagement can start by simply responding to KBA and ABA’s calls to action. However, we should also communicate regularly with our legislators by email, letters, phone calls and face-to-face meetings. Consider hosting legislators at your bank when they are in town. Participate in KBA and ABA trips to Topeka or Washington D.C. when possible. I’ve learned from personal experience that our elected officials genuinely want to hear from the people who elected them! 3. Engage your bank staff. I understand this is difficult to do, but I am convinced that our engagement must become much more of a “grassroots” granular effort within our banks. As stated above, officers and staff from across the bank should be actively involved in the issues related to their job functions. It is one thing for the CEO to be engaged, but it is exponentially more effective to have our entire team involved! Unfortunately, our credit union friends have done a much better job at this than the banking industry. When they visit Capitol Hill, they bring hundreds of staff from all areas of their organizations, while the bankers only bring dozens. We must improve our efforts if we are to be successful. If you are the President or CEO of your bank, please get your staff involved. If you are not, please encourage your bank leadership to do so. 4. Inform your customers about key banking issues that will affect them. It is one thing to have our bank staff Just as our community banks have significantly evolved since my grandfather’s day, so must our engagement and advocacy for community banks! Schifferdecker speaks with Congressman Jake LaTurner at this year’s March on Washington. 7
engaged, but it is quite another thing when our customers become engaged. A great example of this was last year when an early draft of the Inflation Reduction Act included a provision requiring banks to report all account inflows and outflows over a certain level to the IRS. Our customers, including the press, rallied to call out this bad piece of proposed legislation. Customers flooded their federal lawmakers with calls and emails, protesting the provision. Others wrote op-eds in their local newspapers. Seemingly overnight, this provision disappeared from the Act that was ultimately adopted. Our customers, whether they are small business owners, farmers or individuals, have by far the most powerful vote when it comes to real issues that may have a direct or indirect impact upon their lives or businesses. Senator Moran said it best at the KBA CEO Summit in Colorado Springs this summer: “I’m not here because of the banks. Rather, I’m here because, like you, I want to do what is best for the businesses, farmers and individuals in your communities.” As mentioned above, the number of significant issues facing our community banks today are numerous and, to some degree, overwhelming. On some of these issues, like the Access to Credit for Rural Economies (ACRE) Act, we are in a fortunate position to be playing offense, while on other issues (like the CFPB’s Small Business Reporting Section 1071 Rule), we are certainly playing defense. Of course, our very capable KBA team is willing and able to assist bankers in advocating every one of the issues. However, it is our job as bankers to help our customers know which issues need the most priority, as well as to inform and educate them based upon “real-life” experiences from our institutions. They do not have the advantage of dealing with financial policy issues in real-time as bankers do. For the purposes of this article, I’d like to highlight three key issues that will require a significant amount of time, thought and effort this coming year: 1. Section 1071 (Small Business Lending Reporting — aka “HMDA for Small Business Loans”): This legislation was part of the Dodd-Frank Act (DFA) passed in response to the Great Recession (2008-2009). The original provision in the DFA required banks to report 19 data fields for each small business and ag loan made when a customer’s annual revenue is under $5 million. Unfortunately, during the process of writing the final rule, the CFPB significantly expanded the scope of reporting to a very onerous 81 data fields. The final rule, as written, will have a significant chilling effect on small business and ag lending across the country. This will be a cumbersome burden not only for community banks but also for the small business customers they serve, resulting in less credit availability. A well-intended piece of legislation with the effort to discourage discrimination will result in hurting the businesses and individuals it was intended to help! I believe this is an issue we must get our customers involved with to help our regulators and legislators see the damage this final rule will create. Most of our customers have no idea Section 1071 even exists, let alone the final rule crafted by the regulators. The customers and farmers I have visited with about this rule have been significantly opposed and extremely upset that Congress and bank regulators would do such a thing. The KBA has crafted a one-page document to hand out to customers describing the basic facts regarding Section 1071, with instructions on how they can easily contact their legislators regarding the issue. I encourage every banker in Kansas to inform their customers about Section 1071 and provide them with the easy-to-use tools they need to take action. 2. ACRE Act: Thanks to the many years of dedicated and hard work of numerous bankers, legislators, KBA and ABA, we can finally see a potential finish line ahead for the ACRE Act recently reintroduced in both the U.S. Senate and the U.S. House. If enacted into law, farmers and ranchers will directly benefit from lower interest rates for their farm/ranch operations, and small communities across Kansas will benefit from lower interest rates for rural home purchases and new home construction. However, we haven’t reached the finish line yet. Every community banker in Kansas must be an advocate through active communication with their various local, state and national farm associations, including the Kansas Farm Bureau and the Kansas Grain Commodity Associations (Wheat, Corn, Soybeans and Sorghum), in addition to Kansas rural housing and economic development associations. We need local leaders (mayors, city councilmen, county commissioners, etc.) as well 8
as our rural customers to explain why the adoption of the ACRE Act is crucial for ag producers and rural communities. It is only with the help of our customers and their respective trade associations that we will be able to see this important Act come to fruition. 3. Credit Card Competition Act (aka “The Big Box Bill” or “Durbin 2.0”): Unfortunately, a handful of federal legislators, including Senate Democratic Whip Dick Durbin (D-IL) and our own U.S. Senator Roger Marshall, have been swayed by big box retailers to favor retail giants the likes of Amazon, Walmart and Kroger over community banks and U.S. consumers. The Durbin-Marshall credit card routing federal mandate will upend the free-market credit card network rails in the U.S. The KBA and ABA have worked tirelessly to educate public and private sector stakeholders about the importance of security, privacy, reliability and efficiency of these important card processing networks and the fact that the Durbin-Marshall plan is nothing more than a multi-billion money grab that will benefit retail giants at the expense of every single credit card consumer. Furthermore, the federal legislators promoting this illadvised mandate also fail to understand how the loss of credit card points, cash-back rewards and other perks will further disadvantage consumers. Community bankers must be active in a “grassroots” manner to inform consumers about how the increased security and privacy risks, diminished credit card reward points and diminished cash-back features will negatively impact them. This is an important issue that many consumers may be completely unaware of, and I believe it’s our duty to inform them. Although the basic premise of community banking has not changed since the days of my grandfather, the issues, culture, regulatory climate, complexity and delivery channels have certainly changed a great deal. Just as our banks have evolved and adapted to these changes, so must our engagement and advocacy for our customers, communities and industry change. I encourage every Kansas banker, regardless of your title, to be engaged! Get your staff colleagues engaged! Get your customers engaged! I’m confident that with these efforts, our nation can enjoy the benefits of a very healthy and diverse community banking system for generations to come. Mark Schifferdecker KBA 7/23 An independent licensee of the Blue Cross Blue Shield Association Bring well-being to your workplace Contact us today bcbsks.com/worksite-wellness Our experts can help you develop and implement a wellness program at no additional cost. Benefits include: • Improved productivity • Lower healthcare costs • Less turnover • Enhanced recruitment More options for your customers, without more risk to your bank. Why Partner With Us? Ag Resource Management offers an innovative solution to lenders by mitigating your risks with watch list and nonperforming loans. We can help you take these assets off of your balance sheet and increase your lending ability. We achieve this with a blend of proprietary technology and data validation in valuing a growing crop, monitoring that crop, and keeping track of collateral as it approaches maturity. Loans are processed swiftly and we communicate with you throughout the process. We’re just a call away. Get started today with our teams in Kansas. Ryan Schreibvogel 1805 East Mary Street, Suite B Garden City, KS 67846 (620) 371-4858 RSchreibvogel@armlend.com Wade Simpson 5506 Corporate Drive, Suite 1760 Saint Joseph, MO 64507 (816) 226-4574 WSimpson@armlend.com ARM is an equal opportunity provider. 9
The 2023-2024 KBA Officer Team (L-R): Doug Wareham, KBA President & CEO; Vice Chairman Julie Hower, Farmers & Drovers Bank, Council Grove; Chairman Mark Schifferdecker, GNBank, Girard; Chairman-Elect Gene Dikeman, Bank of the Plains, Hutchinson; and Past Chairman Mike Ewy, Community State Bank, Coffeyville. Central States leadership Dan Stepp (far left) and Connor Stepp (far right), with this year’s winning team at the Jim Maag Golf Scramble. (L-R) Mike Beck, KS State Bank; Bob Beymer, KCB Bank; Lynn Mayer, Citizens State Bank and Mike Ewy, Community State Bank. he 2023 CEO Summit proved to be an exceptional success, characterized by an outstanding lineup of speakers, a robust turnout of over 400 attendees, generous sponsorships and idyllic weather conditions. The summit commenced with a warm welcome from KBA President and CEO Doug Wareham, setting the stage for the proceedings ahead. In his address, Wareham introduced officers, esteemed guests, dedicated staff members and supportive sponsors. The pinnacle of the opening day came when Chairman-Elect Mark Schifferdecker stepped forward to present the Flint T TRIUMPHS at the 2023 CEO Summit 10
Kansas native and former community banker Fed Governor Bowman stressed the U.S. banking system continues to be strong and resilient. (L-R) U.S. Senator Jerry Moran, Doug Wareham and ABA President & CEO Rob Nichols discuss the Access to Credit for our Rural Economy (ACRE) Act. Past KBA Chairman Mike Ewy presents outgoing board member Mike Day of Denison State Bank in Holton with a token of appreciation for his service on the KBA board. Thank you, Mike! Factor Award to Dr. Bruce Morgan of Professional Bank Consultants, LLC. This prestigious award recognized Dr. Morgan’s unwavering dedication and substantial contributions to the Kansas banking industry. Dr. Melissa Furman, representing Career Potential, LLC, took center stage with her enlightening presentation, “Emerging Stronger: Refuel, Refresh, and Recharge.” In her discourse, she shed light on the pervasive issue of burnout in contemporary workplaces, a challenge that transcends industries and affects individuals at all levels. Next, U.S. Senator Jerry Moran (R-KS), who was warmly received by the audience, shared insights into current banking and agriculture-related matters unfolding on the national stage. Following Senator Moran’s address, ABA President and CEO Rob Nichols provided an informative overview of federal legislative initiatives and the regulatory challenges that were foremost on the ABA’s agenda. A highlight of the day was the engaging “Mountainside Chat” featuring Doug Wareham, Senator Moran and Rob Nichols. The trio delved into the Access to Credit for our Rural Economy (ACRE) Act, underscoring its significance for community banks. They emphasized how this legislation would extend the same tax-exempt status on certain earned interest to community banks as enjoyed by farm credit institutions, ultimately offering farm real estate borrowers and rural homeowners access to lower interest rates. The second day unfolded with activities catering to diverse interests. Golf enthusiasts relished the Jim Maag Golf Scramble under the backdrop of Colorado’s picturesque weather. Meanwhile, those opting not to play golf were treated to the annual banker/spouse/guest breakfast, featuring an empowering presentation by Dima Ghawi titled, “Dare to Thrive.” Ghawi encouraged attendees to embrace courage and take transformative, fear-free actions in both personal and professional spheres. The afternoon ushered in a choice of two enlightening breakout sessions for bankers. “What Questions Do I Need to Be Asking if Our IT is Running Well for My Bank,” led by Cal Roberson of CalTech/Intregis, explored IT management for banks. Simultaneously, “Growing Revenue in Economic Uncertainty,” facilitated by Mike Holt of Profit Resources, Inc., addressed strategies for revenue growth in challenging economic times. Kansas State University Athletic Director Gene Taylor graced the stage in the afternoon, reflecting on his inspiring journey to Manhattan and his excitement for the future of all K-State athletic programs. The final day began with the presentation of golf awards and special acknowledgments. The prestigious Century of Family Banking Award was bestowed upon the Schifferdecker Family of GNBank in Girard. Moreover, the morning celebrated four individuals inducted into the 50 Year Club: Richard Dickason, 11
K-State fans in attendance enjoyed hearing Gene Taylor reflect on his path to Manhattan, the people he was inspired by and how excited he is about the future of all K-State athletic programs. Closing out the Summit was popular economist Dr. Seifried, who indicated that while the Fed is currently forecasting slow growth but no recession, other forecasts are not as positive. KBA Past Chairman Mike Ewy, Community State Bank, Coffeyville (right) carried on the time-honored tradition of presenting incoming Chairman Mark Schifferdecker, GNBank, Girard (left) with a KBA logo embossed watch. According to Dr. Furman, burnout is quite common in today’s workplace. Two-thirds of full-time workers report experiencing burnout on the job. Jim Richardson, Frank Suellentrop and Ron Wente. One other family and 11 individuals, who were unable to attend, were recognized for achieving these remarkable milestones since the previous year’s CEO Summit. More information on these milestones starts on page 14. The annual business meeting took center stage, culminating in the election of officers. The newly elected KBA officers for 2023-2024 were announced: Chairman Mark Schifferdecker, GNBank, Girard; Chairman-Elect Gene Dikeman, Bank of the Plains, Hutchinson; Vice Chairman Julie Hower, Farmers & Drovers Bank, Council Grove; and Past Chairman Mike Ewy, Community State Bank, Coffeyville. Next, Kansas native Miki Bowman, who serves as the community bank designee on the Federal Reserve Board in Washington, D.C., shared her insights into the economy, inflation and the evolving landscape of bank regulation. Following her presentation, she engaged in a Q&A session with newly installed KBA Chairman Mark Schifferdecker, focusing on the myriad of regulatory challenges confronting community banks. The grand finale featured the popular economist Dr. Seifried, who offered a sobering outlook. While the Federal Reserve was cautiously optimistic about slow growth without a looming recession, other indicators, such as the steeply inverted yield curve, suggested a potential recession within the next 12 months. In conclusion, heartfelt thanks were extended to the dedicated bankers and associate members whose presence and participation contributed to the resounding success of the conference. Attendees were encouraged to mark their calendars for the upcoming CEO Forum on Aug. 8-10, 2024 and advised to secure their accommodations at the Broadmoor in advance due to the anticipated high demand. The 2023 CEO Summit undoubtedly stands as a testament to the vitality and resilience of the banking industry, offering valuable insights, fostering connections and recognizing outstanding contributions. It was a milestone event, setting a high standard for the years to come. 12
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CONGRATULATIONS To These Century of Family Banking Recipients Timothy T. (T.T.) Riordan began the family’s banking tradition in approximately 1910 when he began working at the Solomon National Bank, being previously employed at The Niles State Bank, located approximately seven miles northwest of Solomon. Over the years, T.T. Riordan held the title of either President or Chairman until his passing in 1963. T.T. Riordan was very instrumental in bringing the D.S. & 0. Rural Electric Cooperative to Solomon in the 1930s through a contact he had made while working at the Niles State Bank. T.T.’s son, Richard D. Riordan, served from 1951 to 1978 as President. Richard’s wife, Julie Riordan, served from 19782005 as President and then Director. David R. Riordan, Richard and Julie’s son, served from 1973 to 2017 as President and is currently Director. Dennis J. Riordan, Richard and Julie’s other son, has served since 1978, currently as Vice President and CEO. Solomon State Bank is one of the oldest financial institutions in Central Kansas. It was chartered and opened for business at 126 W. Main in Solomon, Kansas on June 22, 1905, by a group of Salina businessmen, with Frank Hageman serving as the first president of the bank. On June 28, 1910, the Solomon State Bank converted to the Solomon National Bank. On Sept. 3, 1927, The Solomon National Bank acquired The Citizens State Bank located at 139 W. Main, Solomon, Kansas. On April 15, 1970, The Solomon National Bank converted back to a State Bank and has remained so since that time. A branch bank was opened in Abilene in January of 1990, and a branch opened in Salina in September of 1996. When asked about the bank’s success through the years, the Riordans’ collective response was, “It can be attributed to good customers and loyal employees.” Congratulations to the Riordan family for receiving the Century of Family Banking Award and for their 100 years of service to the banking industry. Riordan Family, Solomon State Bank 14
The Farmers and Miners State Bank was started in 1918. In 1923, Earl Schifferdecker began working there as a bookkeeper at a monthly salary of $75. Earl then joined the board in 1925. In 1929, the bank became a national bank, and the name changed to The Girard National Bank. Times were hard and profit was minimal. The bank’s profit in 1936 was only $600. Earl became the bank’s President in the late 1930s while the country was in the midst of World War II. There were many farm sales in those days, and Earl was busy nearly every weekend clerking sales. Earl had quite the reputation for being able to keep up as both clerk and cashier, approving many loans at the same time. In 1956, Earl’s son, Martin, started at the bank. Martin loved technology. It took some convincing, but Martin talked his father into investing in a proof machine. This was the first time in history that a bank actually balanced. Martin continued to be a champion of technology throughout his career. In 1960, Earl began the community’s best-known tradition — the annual bank Christmas Eve dinner. At first, Earl’s gathering was limited to a few friends, a game of “pitch,” ham sandwiches and a jug of wine in the basement of the bank. Martin later expanded the menu to a full dinner. The tradition has continued for over 60 years, with the bank feeding around 2,000 people. Earl did not act and dress like most bankers … he would frequently come into the bank in a soiled work shirt with cow manure on his boots after checking his cattle herd. Many older customers have recalled that when no other banker would help them, Earl gave them a start. In 1974, at the age of 70, Earl passed away, but his genuine concern for the working man won him a special place in the hearts of everyone who knew him. In 1974, Martin became the president of the bank. Martin’s style was different from his father’s, but he was also a very genuine and generous leader. Martin led the bank with utmost integrity and was a godly example to all those who worked for him. In 2015, at the age of 80, Martin passed away, coming to the bank that very day. In the mid-1980s, the Schifferdecker family began to expand the bank’s footprint. The bank currently serves 12 communities in Kansas and two in Colorado. Martin’s brother John joined the bank in 1990. John retired in 2001 but still serves on the bank’s board. Martin’s son Mark joined the bank in 1995. Mark became President & CEO in 2003. Besides serving on the KBA board, Mark has served on the boards of Banker’s Bank of Kansas, Federal Reserve Bank of Kansas City and FHLBank Topeka. John’s daughter, Nancy George, began working at the bank in 1999 and serves as the bank’s Chief Risk Officer and on the board. Both Mark and Nancy strive to lead the community bank with integrity and diligence. Other family serving/served on the board include Florene, Sandra, and Nancy Schifferdecker. In 2018, the bank’s name changed to GNBank, N.A. Schifferdecker Family, GNBank N.A. 15
50 Year Club Awards At this year’s annual meeting, recipients who have dedicated 50 years to the banking industry were honored with well-deserved awards, celebrating this remarkable milestone. Others not in attendance were given their awards throughout the year. Rich Dickason, Exchange Bank & Trust in Atchison For more than five decades, Chief Executive Officer Rich Dickason has been a driving force behind Exchange Bank & Trust’s success. On July 1, 2023, Rich stepped down as CEO after an extraordinary 50-year career. After graduating from the University of Kansas, Rich became a certified public accountant for the Touche Ross Accounting Firm, which later brought him to Atchison. In 1973, after performing the audit of Exchange Bank, Rich was offered a job as Controller by the bank’s owner and president, John Adair, Sr. John saw Rich’s potential as a leader and, in 1978, named Rich as his successor. In the bank’s 167 years, Rich was the 13th president. He served 29 years, second only to William Hetherington, the bank’s founder, who served for 31 years. He stepped down as president in 2007 and passed the title to Mark Windsor. He remained CEO until his retirement. During his overall tenure, the bank grew from one location to ten within northeast Kansas and northwest Missouri, which included five mergers. Jim Richardson, Prairie Bank of Kansas in Stafford Jim Richardson started at the Prairie Bank of Kansas in Stafford as a teller on Sept. 1, 1972. He has a Bachelor of Art from Southwestern College in Winfield that he completed in 1970 and a Master of Science from Emporia State University in Emporia in 1972. He also graduated from the Graduate School of Banking – Colorado in 1979 in Boulder, Colorado. In 1980, Jim was promoted to President, and then in 1987, he was promoted again to President, CEO and Chairman. He currently is the CEO and Chairman of the Board for Prairie Bank of Kansas in Stafford and the CEO and Chairman of the Board for Farmers National Bancshares, Inc. Throughout his career, Jim’s professional affiliations were serving on the Kansas Bankers Association’s Board of Directors from 1987-1990 and 1996-2000 and then as KBA Treasurer in 1990. During Jim’s time at Prairie Bank of Kansas, he was able to oversee several bank expansions. In January 1993, the bank completed the acquisition of Buhler State Bank. In October 1997, the bank also completed the acquisition of United Bank of Inman. In 2009, the bank opened its Hutchinson branch. Frank Suellentrop, Legacy Bank in Colwich Frank Suellentrop attended St. Gregory’s College in Shawnee, Oklahoma and received his associate degree in business in 1973. He is also a graduate of the Graduate School of Banking at the University of Wisconsin-Madison in 1982. He has held various positions in his banking career and is a fourthgeneration banker. Frank began his career at the State Bank of Colwich in Colwich, KS, on May 30, 1973. At that time, the bank had one location with assets of $14 million. Frank joined the board of directors in 1982 and was instrumental in forming Colwich Financial Corporation in 1986. In 1991, he was elected President of the State Bank of Colwich. In 2000, the bank’s name was changed to Legacy Bank as they opened at 16
21st St. & Ridge Rd. in Wichita, the fifth branch location. There are now nine branches servicing customers in Wichita, Colwich, Pratt and Sedgwick and assets totaling nearly $650,000,000. Frank has served on multiple committees for the Kansas Bankers Association, such as the KBA Board of Directors as a Region 3 Representative from 2018-2021, the KBA Federal Affairs Committee from 1995-2017, the KBA Hodge & Porter, Inc. in 2002 and the Strategic Planning/Bylaws Taskforce in 2001. He has also served on the Boards for Bankers’ Bank of Kansas, Rolling Hills Country Club and Friends of McConnell AFB, where he is now designated “Golden Eagle” status. Ron Wente, Golden Belt Bank in Hays Ron Wente’s story with Golden Belt Bank begins just shortly after his graduation from Fort Hays State University. Ron had accepted a job at Gibson’s in Sterling, Colorado. He and his wife married just shy of two years, had already rented an apartment there and were preparing to move when an opportunity arose that Ron couldn’t pass up. So, instead of starting his career in Sterling, Colorado, Ron began his banking career as a management trainee for Golden Belt Bank Savings and Loan Association. At that time, Golden Belt was small, with one office located in Ellis, Kansas, and only $5 million in assets. The learning curve was steep — in 1974, only a year after he first started with Golden Belt, Ron became President and CEO at the young age of 23. In 1996, Ron was elected to the Federal Home Loan Bank of Topeka Board of Directors, beginning his long 17-year career as an advocate for this banker’s bank and its bank customers. He was serving on the Board when the Mortgage Partnership Finance Program was created. A program that was adopted by Golden Belt Bank and quickly became a game changer. He also served on the Heartland Community Bankers Association Board for many years throughout his career. In 2016, Ron saw a need for Golden Belt Bank to become involved with the KBA. He helped many of the state’s savings and loans transition to the KBA to provide benefits and advocate for their institutions. He was appointed to the Board of Directors of the KBA and served on that board until 2022. Wilma Olds, Wilson State Bank in Wilson Wilma Olds started her banking career at Wilson State Bank in Wilson on Feb. 17, 1973, as a CSR/Loan Secretary. Wilma graduated from Wilson High School in 1967 and from Brown Mackie School of Business in 1971. She also attended the Kansas Bankers Association Schools of Banking in 1988 and graduated with an associate degree from Barton County Community College in 2002. She enjoys the day-to-day routine of assisting loan officers and customers, processing loan documents, reviewing and preparing reports, and working with fellow employees. She feels Wilson State Bank has a great team, which accounts for her longevity. Plus, she feels working keeps her up to date in the banking world, active and organized. David Spencer and Dean Tuley, Denison State Bank in Holton David Spencer graduated summa cum laude from Washburn University in 1971 with a Bachelor of Business Administration, majoring in accounting. After graduating from college, David spent two years with Elmer Fox CPA accounting firm in Topeka and ranked in the top four in the state of Kansas on the CPA Exam. In 1973, he applied for a position at the Denison State Bank, but they had recently hired Dean Tuley and had no jobs available for him. He then approached the other bank in Holton, Kansas State Bank, and was hired by them. David started out by doing all the jobs in the bank, including teller, bookkeeper, and then loan officer. He prepared the call report and was involved in operations and bank reports. His titles Dean Tuley (left) and David Spencer (right) 17
included everything from Assistant Vice President to Sr. Vice President and Cashier. In those days, a title was less important than the jobs you performed. In 1990, David heard that Imogene Crow was retiring from the Denison State Bank and decided to apply there again. Jim Birkbeck decided he was worth the risk and hired him in October of that year. David had served as a loan officer, compliance officer, auditor, BSA officer and Chief Financial Officer and held various titles, including his current title as Executive Vice President. He also serves on the DSB Board of Directors. Dean Tuley has been an employee, officer and/or director at Denison State Bank for 50 consecutive years in 2023. After graduating from Kansas State University with a degree in Agricultural Economics in 1972, he started at the Denison State Bank in 1973 as an agricultural representative. He has held many positions, Assistant Cashier, Assistant Vice President, Executive Vice President and President from 2003-2013. He then retired in 2016. Dean has served on the Denison State Bank’s Board of Directors for 40 years and is now the senior-ranking board member. Throughout his career, he also holds his Kansas insurance license, completed the Graduate School of Banking in Madison, WI, and has attended numerous banking schools, workshops and seminars. He has served as President of the Kansas Association of Agricultural Representatives and many committees at the KBA. Throughout his banking career, Dean had the opportunity to learn about the banking industry from a successful banking leader and friend — Jim Birkbeck. Karen Schmale, United Bank & Trust in Marysville Karen Schmale received a phone call from the bank President at Linn State Bank on July 16, 1973 — on her 16th birthday — requesting that she come into the bank and visit with him the next day. That meeting would be the start of her 50-year career. Upon graduation from Linn High School, Karen went to Cloud County Community College for two years but continued her position with the bank, working Saturdays and during school breaks. When she first started, her first task was to sort and file checks. As her career advanced, she has held the position of File Clerk, Teller, Bookkeeper, Vice PresidentAssistant Cashier, Vice President-Cashier and now her present position as Senior Vice Deb Rott, Peoples Bank & Trust in McPherson Tom Harms, Peoples Bank & Trust in McPherson Roger Brown, Citizens State Bank in Cheney President-Chief Financial Officer, which she has held since 2011. Karen has also been Secretary to the United Bank & Trust and UBT Bancshares, Inc. boards since 2004. In October 2021, Karen became a member of the board of directors of United Bank & Trust and, in June 2022, to the Board of Directors of UBT Bancshares, Inc. The bank went through several changes in ownership/names; in 1977, it was the Linn State Bank; in 1988, the name was changed to First State Bank; in 1991, the name was changed to Tri-County National Bank; in 2000, the name changed to Peoples National Bank (when the bank was purchased by Gold Bank); finally, in 2004, a group of local stockholders purchased several branches in northeast Kansas from Gold Bank and changed the name to United Bank & Trust. 18
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MEET THE NEW KBA BOARD MEMBERS Julie Hower, KBA Vice Chairman Julie Hower is the Chairman, President & CEO of Farmers & Drovers Bank in Council Grove. She has previously served on the KBA State Affairs Committee as Chairman, KBA Board and in the BLOK class of 2007. Julie earned her Bachelor of Science from Kansas State University and her Juris Doctor from the University of Kansas. She is married to her husband, John Hower and has two daughters, Hailey and Ally. In her free time, she enjoys golfing, traveling, cooking and K-State sports. Michael Black, Regional Representative Michael S. Black is the President & CEO of ESB Financial in Emporia. Prior to his current position, he served as the VP Regional Manager at CoreFirst Bank & Trust in Emporia from September 1997 to September 2011. Michael earned his Bachelor of Science in Business Administration from Emporia State University and is an alumnus of the Graduate School of Banking Colorado. He is married to his wife Tammy and has two sons, Cody and Tanner, who are both grown. In his spare time, he enjoys hunting, fishing, hiking and the outdoors. His goal is to have a bank examiner tell them they run a good bank. Lori Bone, Trust Division President Lori Bone is the Senior Vice President/Trust Officer of Fidelity State Bank & Trust Company in Dodge City. Lori had previously worked as a staff accountant at Landmark National Bank. She has served as a Trust Division Board Member since 2018. Lori earned her Bachelor of Science in Accounting from St. Mary of the Plains. She is married to her husband Joel and has two children, Jerica and Jonathan. In her free time, she enjoys hiking, camping, reading, working in the yard and riding motorcycles with her husband. Teri Ginther, At Large Representative Teri Ginther is the President and COO of Bankers’ Bank of Kansas in Wichita. She earned her degree from the University of Northern Colorado. She is married to her husband Paul and has three children and five grandchildren. In her free time, she enjoys KC Royals baseball, KU sports and whatever her grandchildren are doing. Although she does not have previous experience working on KBA committees, Teri is passionate about community banking and the issues impacting their ability to thrive and compete. Her 40 years of banking have provided her with a broad range of banking experience. She is both grateful and looking forward to the opportunity to help the KBA achieve its mission and goals. 20
J.C. Long, Regional Representative J.C. Long is the Chairman, President & CEO of The Bank of Commerce & Trust Co. in Wellington. His previous employment positions included the Kansas House of Representatives, Director of Gov. Affairs and UtiliCorp United Inc. J.C. served on both the KBA State Affairs Committee and the KBA Insurance Committee as well. He earned his bachelor’s degree in political science from the University of Kansas. He is married to his wife Mary and has two children, Will and John. In his spare time, he enjoys traveling, golfing, photography and history. Paul Thompson, Director Appointed by KBA Chairman Paul Thompson is the President & CEO of Country Club Bank in Kansas City. Before his current position, he worked for CCB & Affiliates from 1987 to the present and Rolf & Associates, CPA from 19841987. He has served on the KBA Legislative Committee since 1995. Other committee positions he has had and been on include FRB-KC Class A Director from 2014-2018, MBA Chairman from 2004-2007, Membership Committee from 2004-2007, and Government Relations Committee from 2008-2011. Paul obtained his Bachelor of Science in Business Administration from Creighton University in 1984 and his Master of Business Administration from Rockhurst University in 1987 and is an alumnus of the Graduate School of Banking in Colorado in 1998. He is married to his wife Mary and has five children: PJ, Emily, Caroline, Margaret and Robert. In his free time, he enjoys playing golf and history. His goal is that he just wants to provide any assistance he can to benefit the long-term, ongoing success and viability of community banking. Tyler Whitham, Director Appointed by KBA Chairman Tyler Whitham is the President of Western State Bank in Garden City. Before his current position, he was the Engineering Manager for Acquisition and Divestiture for Meagher Energy Advisors. Tyler earned his Bachelor of Science in Petroleum Engineering and a Bachelor of Science in Mineral Economics and is an alumnus of the Graduate School of Banking Colorado. He is married to his wife Amy and has six children: Scarlett, Ryan, Zane, Vivian, Corinne and Finn. His goal is to improve the likelihood of success of his family business and others like it in Kansas by promoting community banking, defending the interests of community banking politically and improving bank operations through offering or referring preferred services. Nick Wolfe, YBOK President Nick Wolfe is the SVP and Community Bank President of United Bank & Trust in Marysville. Before his current employment, he worked for the Landoll Corporation. Nick has served on the KBA Bank Management Committee from 2022 to the present and the BankPAC Committee from 2018-2019. He has also served on the Advanced School of Banking Advisory Committee. Nick earned his degrees from Emporia State University and Neosho County Community College and is an alumnus of the Advanced School of Banking. He is married to his wife Rylee and has three children: Brynlee, Adlee and Sadie. In his spare time, he enjoys golfing, hunting, fishing and watching a lot of softball. Mikel Hadachek, Kansas Ag Bankers Chairman Mikel Hadachek is the Market President/VP Loan Officer for Astra Bank in Belleville. Before his current position, he served as a loan officer at the Munden State Bank in Munden, KS. He also served on the KBA Technology Committee from 1998-1999. Mikel earned his Bachelor of Science in Agriculture Economics from Kansas State University and is an alumnus of the Graduate School of Banking at Madison, Wisconsin. Mikel has two children, Erica and Gary. He enjoys golfing, doing yard work and watching K-State athletic events in his spare time. 21
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