OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION SEPTEMBER/OCTOBER ISSUE 5 2024 2024 CEO & Senior Management Summit/Annual Meeting Highlights
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©2024 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 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 Washington Update 5 Defend the Dual Banking System By Rob Nichols, President and CEO, American Bankers Association 6 2024 KBA No Ties Tour Across the Sunflower State 8 Kansas Leaders Graduate from America’s Premier Community Banking School 10 2024 CEO & Senior Management Summit/Annual Meeting Highlights 18 Briefly in Kansas Banking 20 Celebrating a Century of Family Banking: The Berkley Legacy 22 50-Year Club Awards 27 Meet the New KBA Board Members 28 2024 BLOK Session III 2024 BLOK Training Travels to Wichita 30 2024 Education & Training Calendar 33 AI for Banks What to Expect and How to Prepare By Cal Roberson, Director of Strategic Partnerships, Financial Institution Division, Integris Executive Doug Wareham, President & CEO Kathy Taylor, JD, EVP, General Counsel Terri Thomas, JD, EVP, COO Alex Greig, President, KBA Insurance Inc. Administration Alex Orel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Sara Blubaugh, SVP, Administration & Board Secretary Julie Taylor, VP, Computer & Information Systems Kelly VanZwoll, JD, VP, Staff Attorney & Government Relations Alana Seelbach, AVP, Administration & Special Projects J.W. Wells, Ag Division Coordinator/ Government Relations Assistant Communications & Marketing Mary Taylor, SVP, Director of Communications & Marketing Bree Hull, AVP, Communications & Marketing Rayanna Breshears, Marketing & Strategic Partnerships Coordinator Education and Conferences Brenda L. Unruh, SVP, Director, Education & Conferences/Strategic Partnerships LeAnn Mott, VP, Education & Conferences Natalie Wareham, AVP, Education & Conferences Insurance Alex Greig, President, KBA Insurance Inc. Kent Owens, SVP, KBA Insurance Inc. Elizabeth Roche, SVP, Employee Benefits Administration Jenny Figge, SVP, Operations Cole Thompson, AVP, KBA Insurance Inc. Clinton Moore, Agent Services Representative, KBA Insurance Inc. Samantha Lee, Employee Benefits Specialist Legal/Compliance Jackie Kuhn, JD, VP, Staff Attorney Gwen Hill, JD, VP, Staff Attorney Jamie Cosgrove, JD, VP, Legal Department Manager Dylan Serrault, JD, VP, CFBS Manager Bobby Young, JD, VP, Staff Attorney Adeel Syed, JD, VP, Staff Attorney Neal Barclay, AVP, Compliance Specialist/Auditor Jeff Narron, AVP, Compliance Specialist/Auditor Kerry Clark, JD, AVP, Staff Attorney & Publications Specialist Lew Walton, JD, AVP, Compliance Specialist/Auditor Meridith DeForest, AVP, Administrative Legal Assistant Sarah Weltmer, AVP, Compliance Operations Specialist Shannon Capps, AVP, Compliance Operations Specialist Heather Williams, Compliance Operations Specialist Lindsay Bryant, Compliance Operations Specialist Sarah Lynch-Chaput, JD, Staff Attorney Gabe Walker, JD, Compliance Specialist, Auditor Tom Thomsen, Legal Intern Kat Eusey-Zukerman, Legal Intern Darby Leitch, Legal Intern
Defend the Dual Banking System WASHINGTON UPDATE By Rob Nichols, President and CEO, American Bankers Association Since the time of President Lincoln, American consumers have benefited from a dual banking system, made up of both state-chartered institutions and federally chartered national banks. This system — which can trace its roots back to the U.S. Constitution — allows consumers to have more choices. It offers them a robust marketplace of banks of different sizes and business models to meet their needs. And it enables the nation’s more than 750 national banks to operate safely, soundly and efficiently across multiple jurisdictions under the supervision of the OCC while at the same time allowing state banks to serve their communities with local supervision. But this system, which has served our country well for more than 150 years, is now coming under threat, as lawmakers in both red states and blue states have begun to pass laws that will interfere with national bank operations, violate federal preemption and tread squarely on the OCC’s turf. Just look at the situation currently unfolding in Illinois, with the Interchange Fee Prohibition Act that was signed into law this summer as part of the state’s budget legislation. This misguided law bans banks, credit unions, payments networks and other entities from charging or receiving interchange fees in Illinois on taxes and tips charged as part of a credit or debit card transaction. This law — which will create unprecedented chaos and confusion for consumers and businesses if allowed to take effect — violates multiple federal statutes, including the National Bank Act and the Federal Credit Union Act, and cannot be enforced against national banks, federal savings institutions or state-chartered banks, as well as federally and state-chartered credit unions. It also runs afoul of the Electronic Fund Transfer Act, which directly addresses the permissible amount of interchange fees for debit card transactions and does not carve out taxes and gratuities. This law, a gift to corporate mega-retailers as part of a last-minute budget deal, is the first of its kind to pass in the nation. We can’t let it stand and run the risk that other states will follow, which is why ABA is fighting back. Together with the Illinois Bankers Association, America’s Credit Unions and the Illinois Credit Union League, we filed a lawsuit challenging the law, and we are seeking a preliminary injunction pausing implementation until the court can rule on the merits of our case. With top outside lawyers assisting us, we have confidence we will prevail in this case, sending a strong message to other states looking to follow Illinois’ lead. We’ve seen a different kind of challenge to the dual banking system in other states. Florida and Tennessee have put in place their own safety and soundness tests, encroaching on the OCC’s federal oversight of national banks. Like ABA, the OCC has taken notice. We’ve been encouraged by comments from Acting Comptroller Michael Hsu, noting that his agency will continue to defend the dual banking system. The acting comptroller pointed out in recent remarks that “Increasingly, banks are being asked by states to pick a side in service of performative politics rather than deliberative policy.” This simply shouldn’t be the case, and we will continue to urge the OCC to exercise its authority when states cross the line. Our dual banking system has served Americans well for decades. ABA will continue to push back against efforts to undermine that system, and we’ll keep pressure on regulators to do the same. Email Rob at nichols@aba.com. 5
Doug Wareham and Alex Greig Doug Wareham, KBA President & CEO, and Alex Greig, President of KBA Insurance Inc., are proud recipients of this year’s “No Ties Tour” award for visiting the most banks. Mary Taylor, SVP/Communications and Marketing Director, earned a commendable second place for her efforts in visiting bankers before KBA’s annual meeting. We extend our heartfelt thanks to Kansas bankers for your time and engagement during these visits. Your insights and conversations are deeply valued. Stay tuned for more updates and highlights in the next issue of The Kansas Banker as our journey continues! Nate Kohake, President of Elk State Bank in Clyde and Seneca Leonard Wolfe, Chairman and CEO of United Bank & Trust in Marysville John E. Boyer, Chairman of KANZA Bank in Kingman Lynn Mayer, CEO of Citizens State Bank in Marysville Michael Black, President and CEO, and Gavin Schmidt, Market President of ESB Financial in Emporia Jamie Cline, President of Southwest National Bank in Wichita Matt Michaelis, Chairman/President/ CEO, and Gil Trout, Executive Vice President of Emprise Bank in Wichita 2024 KBA No Ties Tour Across the Sunflower State KBA Leadership Visiting Banks 6
Mike Day, President of Denison State Bank in Holton Bruce Bachman, Chairman & CEO of First Heritage Bank in Centralia Sam Chandler, President of INTRUST Bank in Wichita Craig Meader, Chairman & CEO of First National Bank of Kansas in Waverly with Paige Meader, Loan Officer, and Charlie, Head of Security Mary Taylor Kaycie Schilling, Vice President, and Susan Bellamy, Executive Vice President of First National Bank in Goodland Sharon Beiker and Sondra Stephens with Farmers & Merchants Bank of Colby Mike Hamilton, Executive Vice President of Ag Banking with Adams Bank & Trust in Colby 7
Kansas Leaders Graduate from America’s Premier Community Banking School The Graduate School of Banking at Colorado (GSBC) is proud to announce the graduation of 12 Kansas-based banking professionals from its state-of-the-art graduate school of banking program. These graduates have completed a rigorous and all-encompassing banking curriculum, equipping them to serve as leaders in their organizations and trusted financial professionals in their respective Kansas communities. These individuals are among 160 graduates representing 28 U.S. states honored in a ceremony on July 25. Throughout their 25 months in the program, they were immersed in a mix of traditional and non-traditional models of coursework on financial management and strategy, innovation and engagement, leadership and culture, and lending — all through a community banking lens. GSBC’s mission as America’s Premier Community Banking School is to empower banking professionals by providing coursework that covers banking essentials, builds organizational and community leaders, and provides each student the skills to act innovatively and think critically to lead their organizations into the future. GSBC held its 73rd Annual School Session July 14-26 on the University of Colorado Boulder campus. The school is eager to welcome nearly 500 community banking professionals to campus next year for its 74th Annual School Session, scheduled for July 13-25, 2025. For enrollment information, visit www.gsbcolorado.org. 8
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2024 CEO & Senior Management Summit/Annual Meeting Highlights The 2024 CEO & Senior Management Summit/Annual Meeting was held Aug. 8-10 at The Broadmoor in Colorado Springs, Colorado. The event was a definite success! We had an exceptional line-up of presenters, almost 500 attendees and amazing sponsors. Check out some of this year’s highlights. Mountainside Policy Chat Kansas bankers had the opportunity to hear predictions on the 2024 federal election season from Sen. Jerry Moran, Congressman Tracey Mann, and ABA President & CEO Rob Nichols during a panel discussion moderated by KBA Past Chairman Mark Schifferdecker and KBA President & CEO Doug Wareham. The panel discussion also focused on priority legislation supported by ABA and KBA, including a proposal to prohibit the use of mortgage trigger leads and ongoing efforts to advance the Access to Credit for Rural Economies (ACRE) Act, which Moran and Mann both support. A common frustration expressed during the panel discussion centered on the tsunami of new bank regulations being promulgated by federal bank regulators. (Left to right) KBA Past Chairman Mark Schifferdecker, Congressman Tracey Mann, U.S. Sen. Jerry Moran, ABA President & CEO Rob Nichols, and KBA President & CEO Doug Wareham 10
Federal Reserve Update Jeff Schmid, President of the Federal Reserve Bank of Kansas City, addressed the audience on Thursday afternoon, sharing his insights on current economic conditions and reflecting on his first year in the position after serving more than 40 years in the banking industry, both as an examiner and later as Chairman and CEO of Mutual of Omaha Bank in Nebraska. Schmid discussed the rebalancing of supply and demand, the continued strength of the labor market bolstering aggregate demand, and the persistent challenge of elevated inflation, with housing services playing a significant role. While inflation has eased somewhat over the past year, Schmid noted the uncertainty surrounding future policy rate adjustments needed to achieve the 2% inflation target. President Schmid will become a voting member of the Federal Open Market Committee starting in 2025. Kansas City Federal Reserve’s President & CEO Jeff Schmid and FHLBank Topeka’s President & CEO Jeff Kuzbel KBA’s Prestigious Flint Factor Award During his address to CEO Summit attendees, former FDIC Vice Chairman Tom Hoenig highlighted runaway federal spending that has led to federal U.S. debt now exceeding $35 billion. Hoenig indicated federal spending trends, coupled with higher interest rates, could lead to the federal debt ballooning to somewhere between $50 and $60 billion by 2030. While Hoenig is still bullish on the American economy, he said the time for Congress to implement spending restraints and strategies for enhancing federal revenues is upon us. Following Hoenig’s address, KBA Past Chairman Mark Schifferdecker presented Hoenig with the Flint Factor Award, KBA’s highest award, in recognition of Tom’s leadership and dedication over a 38-year career with the Kansas City Federal Reserve Bank and for his efforts to tailor bank regulation and oversight of community banks during his tenure as FDIC Vice Chairman. Hoenig is currently serving as a Distinguished Senior Fellow at the Mercatus Center at George Mason University. Congratulations, Tom! KBA President & CEO Doug Wareham, Former FDIC Vice Chairman/Former Kansas City Federal Reserve President Tom Hoenig, and KBA Past Chairman Mark Schifferdecker Courageous Leadership — Living a Life of Influence Dan Meers, also known as KC Wolf, the mascot for the Kansas City Chiefs for the past 30 years, shared his inspirational story of a tragic accident while performing a stunt at Arrowhead Stadium that nearly took his life. Dan spoke about how that accident changed his outlook and how he now lives with passion and purpose, using his platform to help others. He works closely with numerous organizations and ministries that provide aid to orphans and the poor around the world, believing that we are all called to be difference-makers. Dan also discussed his two books, “Wolves Can’t Fly” (2014) and “Mascot on a Mission” (2019), and handed out signed copies to the attendees. Dan Meers, KC Wolf 11
Jim Maag Golf Scramble The early start of the annual golf scramble allowed a sold-out field of 144 golfers to take advantage of the gorgeous Broadmoor course. This year’s scramble champions, who won the Central States Capital Markets traveling trophy, shot a 56. It was foggy and chilly at this year’s golf scramble, but the scenery did not disappoint! Scramble Champions. Central States Capital Markets’ Connor Stepp (left) and Dan Stepp (right) presented the champion’s trophy to Lance White (Bank of the Flint Hills, Wamego) and Talon White. Not pictured are teammates Brandon Lee (Union State Bank, Clay Center) and Justin Sparks (Bankers’ Bank of Kansas, Wichita) (Left to right) Troy Hutton, FNB Hutchinson, Brad Yaegar, Legacy Bank, Federal Reserve Governor Miki Bowman; Bob Wray, CC Capital Advisors and Troy Soukup, The Citizens State Bank and Trust Co. on hole #18 during the tournament 50-Year Club Award Frank Carson III, Chairman, Carson Bank KBA’s President & CEO Doug Wareham presented Frank Carson III with the 50-Year Club Award. (Left to right) Julie, Cale, Frank III, Kris, Frank IV and Kourtney Carson 12
The Berkley Family 50-Year Club Award Recipient Mark Berkley, The Bank of Tescott, Salina, and KBA President & CEO Doug Wareham 50-Year Club Award Recipient Bill Berkley, State Bank of Downs, Downs, and KBA President & CEO Doug Wareham Eight Berkley family members received the Century of Family Banking Awards for their family’s century of ownership of Kansas banks! (Left to right) James Berkley (Solutions North Bank, Stockton), Jeff Berkley (Alliance Bank, Topeka), Burke Matthews (Bennington State Bank, Salina), Mike Berkley (Bennington State Bank, Salina), Lila Berkley, Don Berkley, Bill Berkley (State Bank of Downs, Downs), and Mark Berkley (Bank of Tescott, Salina) Over 170 Berkley family members were in attendance for the prestigious Century of Family Banking Award ceremony. Meet your 2024-2025 KBA Officers! More opt ions 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 non-performing 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 7505 NW Tiffany Springs Pkwy. Suite 220 Kansas City, MO 64153 (816) 226-4574 WSimpson@armlend.com ARM is an equal opportunity provider. (Left to right) Vice Chairman Kendal Kay, Stockgrowers State Bank in Ashland; Chair-Elect Julie Hower, Farmers & Drovers Bank in Council Grove; Chairman Gene Dikeman, Bank of the Plains in Hutchinson; Past Chairman Mark Schifferdecker, GNBank, N.A. in Girard; and KBA President & CEO Doug Wareham 13
Federal Reserve Board of Governors Update Federal Reserve Governor Miki Bowman addressed attendees on Saturday morning, providing an update from the Board of Governors and sharing insights from the July FOMC meeting. She also joined KBA’s EVP and General Counsel Kathy Taylor, in a panel discussion covering increased capital requirements following the 2023 bank failures, the Fed’s decision to lower the debit interchange cap, the trend of credit unions acquiring banks and the impact of higher interest rates on bank earnings. Governor Bowman highlighted that economic activity continues to expand, though job gains have slowed, and inflation remains somewhat elevated despite recent easing. The FOMC decided to maintain the current federal funds rate, focusing on achieving maximum employment and stable inflation. The Committee does not expect to lower rates until there is confidence that inflation is moving sustainably toward 2%. Governor Bowman, who holds the Community Bank Seat on the Board of Governors, will serve in this role until January 2034. Federal Reserve Governor Miki Bowman The Economy in 2024 The conference concluded with a presentation by Chris Low, Chief Economist for FHN Financial. Chris highlighted that GDP growth (2.0%) has been weaker than in 2023 (3.1%), with domestic demand cooling and high mortgage rates limiting supply, which has kept prices high despite a slump in sales. He also noted that job growth has slowed since March, and average hourly earnings are declining rapidly. When discussing inflation, Chris pointed out that there has been some progress, with May and June’s CPI readings being the lowest since 2021 and rent inflation showing signs of slowing. He also referenced recent comments from Fed Chair Powell that suggested a possible rate cut in September. Low concluded with market expectations and predictions, indicating that multiple rate cuts could occur over the next few meetings, with the potential for one significant cut, as employment is now the primary reason for reducing rates. Chris Low, FHN Financial 14
In Attendance KBA officers and leadership with Sen. Jerry Moran, Congressman Mann and Rob Nichols, ABA State Bank Commissioner David Herndon and Sen. Jerry Moran Congressman Tracey Mann and Abby Wendel, Landmark Bank Jeff Kuzbel, FHLBank Topeka; Doug Wareham, KBA; and Rob Nichols, ABA Rick Sems, Equity Bank, and Congressman Tracey Mann Kansas City Federal Reserve’s President & CEO Jeff Schmid and Lance White, Bank of the Flint Hills J.C. Long, Bank of Commerce & Trust Co., Joe Rottinghaus, Conway Bank and Seth MacKinney, Sen. Jerry Moran’s Office Gene and Mary Dikeman with Congressman Tracey Mann (middle) Mike Lyles, Community Bank, and Robert Mendez, BankOnIT Congressman Tracey Mann and Sean York, ADVANTAGE Troy Hutton, FNB Hutchinson, and Brad and Janice Yaeger, Legacy Bank Tom Hoenig and Mark Thompson, Country Club Bank 15
Charlie and Marla Chandler, INTRUST Bank, and Paul and Mary Thompson, Country Club Bank Kyle Campbell, Astra Bank, and Alex Orel, KBA Julie and John Hower, Farmers & Drovers Bank Mark Schifferdecker, GNBank; Scott Cooper, Patriots Bank; and Bob Wray, CC Capital Advisors Janet and Doug Johnson, Guaranty State Bank & Trust, with Sen. Jerry Moran Spouse and Guest Breakfast program Monte and W.R. Robbins, Farmers Bank & Trust, and Sen. Jerry Moran Sen. Jerry Moran, Carol and John Hill, The City State Bank Sen. Jerry Moran and Gene Dikeman Outgoing KBA Board Members Craig Heideman, Kaw Valley Bank; Mike Ewy, Solutions North Bank; and Nick Wolfe, United Bank & Trust Sen. Jerry Moran, Mark Schifferdecker and granddaughter Norah KC Wolf Dan Meers at the Spouse and Guest Breakfast Mavis and Ron Johnson, KBEF Ambassador, and Mark Schifferdecker, GNBank Jeff and Maribeth Kuzbel, FHLBank Topeka 16
Mark Your Calendars! Make your plans to attend the 2025 KBA CEO & Senior Management Summit at The Broadmoor on Aug. 7-9, 2025! Please make your room reservations NOW by calling The Broadmoor at (855) 634-7711 and asking for the Kansas Bankers Association room block. If a night is already sold out, please request to be placed on the waitlist! We were sold out by October last year, so don’t delay. Make your Broadmoor reservations for 2025 TODAY! 2024 KBA Annual Meeting 17
BRIEFLY IN KANSAS BANKING The Peoples Bank and Trust Announces the Retirement of Tom Pruitt Peoples Bank and Trust, headquartered in McPherson, Kansas, recently announced the upcoming retirement of Tom Pruitt, President and Chief Executive Officer. Mr. Pruitt started his career with the bank in 1987 and became President and CEO in 2015. He is the seventh person to hold this position for the bank since it began in 1898. Mr. Pruitt will officially retire in January of 2025. Upon his retirement, John Houghton will transition from Chief Financial Officer to Chief Executive Officer, and Bryce Brewer will transition from Chief Operating Officer to President, while maintaining his Chief Operating Officer responsibilities. Terri Young Retires from Farmers State Bank in Holton Congratulations to Terri Young, Vice President and BSA/Security Officer at The Farmers State Bank in Holton, Kansas, on her retirement on Aug. 8, 2024, after more than 33 years of service. Terri began her career as a teller and has held many positions at the bank throughout her long tenure. “Terri is the epitome of the loyal and hardworking employee that makes a small community bank run smoothly,” stated Tonya Barta, President/CEO. Terri has dedicated over 37 years to the banking industry! “Terri has played a vital role in our bank, and she and her institutional knowledge will be missed.” In retirement, Terri plans on spending more time with her five grandchildren and starting a second career as a paraprofessional at Holton Elementary School. 18
Congratulations to Sarah Lynch-Chaput and Gabe Walker for Successfully Passing the Kansas Bar Exam! The KBA is excited to announce that Sarah Lynch-Chaput and Gabe Walker have successfully passed the Kansas Bar Exam! Sarah and Gabe started as legal interns with the KBA Legal Department during their second year of law school. They have now both accepted full-time positions with the Association. Once sworn in as a Kansas attorney, Sarah will be a staff attorney in the KBA Legal Department, assisting Kansas member banks with their legal and compliance questions. Gabe will work with the Compliance First Banking Solutions team, performing compliance and legal audits for banks that contract for the services. Sarah Lynch-Chaput graduated summa cum laude from Washburn University School of Law in May 2024. In law school, she was the editor-in-chief of the Washburn Law Journal and co-site director of the Volunteer Income Tax Assistance Washburn Law site. Before law school, she worked in the state government. Her undergraduate degree is in legal studies from Washburn University. Gabe Walker attended Central Methodist University, where he majored in marine biology. After engaging in coral reef restoration and earning his undergraduate degree in biology in 2021, he decided to pursue further education in law school. Initially planning to focus on environmental law, Gabe’s career path shifted after receiving an internship with the KBA, where he realized this was the place he wanted to build his legal career. He interned with the KBA until Aug. 1, 2024. Gabe graduated from Washburn School of Law in May 2024. Please help us congratulate Sarah and Gabe on this outstanding achievement! 19
Celebrating a Century of Family Banking: The Berkley Legacy This year, the Berkley family was honored with the prestigious Century of Family Banking award by the Kansas Bankers Association, marking 100 years of dedicated service in the banking industry. This recognition is not just a testament to the longevity of their involvement in banking but also to the values, commitment and community spirit that have defined the Berkley legacy over the past century. The Berkley family’s journey in banking began with Howard Jackson (H.J.) Berkley, who joined The Bank of Tescott in 1924 as a humble cashier and janitor. Through his hard work and dedication, H.J. eventually became the bank’s President, a position he held until his passing in 1969. His leadership set the foundation for what would become a multi-generational family commitment to the banking industry. H.J.’s legacy was carried forward by his eight children — Arliene, Jack Belmont, Robert, Jerry, Paul, Hal, Don and Mike — who each played significant roles in various banks across Kansas. Robert Berkley served the people of North Central Kansas through his legal work and as a founding member of Kennedy Berkley, Pennsylvania. Over the years, the Berkleys have been involved in five different banking institutions, including The Bank of Tescott, Bennington State Bank, Solutions North (formerly Stockton National Bank), the State Bank of Downs and Alliance Bank. Each institution reflects the family’s commitment to excellence in banking and their deep-rooted belief in serving their communities. Today, these banks collectively manage assets worth billions of dollars, with several family members still actively involved in their operations. As the Berkleys celebrate this remarkable milestone, they remain committed to the principles that have guided them for generations — providing exceptional customer service, 20
Mortgage Investment Services Corporation 22316 Midland Drive • Shawnee, KS • 66226 • 913-390-1010 NMLS# 194708 • A Kansas licensed mortgage company #MC 0001182 Missouri Residential Mortgage Loan Broker License #10-1912 Oklahoma Mortgage Broker #MB001953 Colorado License #100044344 Nebraska Licensed Mortgage Company NMLS#194708 Arkansas License #124530 YEARS 24 Let’s Talk Fair Lending! Partnering with Mortgage Investment Services Corporation (MISC) means equal access to credit for housing to all within your community. Here’s why collaborating with us sets you apart: • Fair Lending Protocols, Regulatory Compliance • Tailored Solutions for Diverse Clientele • Government financing options: FHA, VA, & USDA-RD • Rebuilding your community with renovation lending • Expand your customer reach Join forces with MISC to provide every member of your community with the opportunity for homeownership. We get it right the first time! Andrew Holtgraves, Senior Vice President • Cell: 913-558-2555 Email: Andrew@MISCHomeLoans.com • NMLS: #276932 Associate Member James Angell, Kennedy Berkley Law Firm in Salina promoting community growth and maintaining the integrity and values instilled by H.J. Berkley. This century of service is not just a look back at what has been achieved but a promise to continue upholding these standards as the family moves forward. The recognition from the Kansas Bankers Association serves as a reminder of the enduring impact the Berkley family has had on the banking industry and the communities they serve. As they look to the future, the Berkleys are dedicated to preserving their legacy, ensuring that the institutions they’ve nurtured continue to flourish for generations to come. To learn more about this amazing family, scan the QR codes. Salina Post https://salinapost.com/posts/ 5ded475d-af1e-43d5-afd00e4cc3a6a941 Salina 311 https://salina311.com/berkleyfamily-receives-century-of-familybanking-award/ Bennington State Bank https://www.bsbks.com/ berkley-century-of-family- banking-award/ 21
50-Year Club Awards Frank Carson III, Carson Bank in Mulvane Frank L. Carson III began his banking career in the summer of 1970 in the bookkeeping department of Mulvane State Bank. After graduating from Wichita State University, he joined his father at the bank and was promoted to President in 1990. Upon the death of Frank L. Carson Jr., he became Chairman, President and CEO. When his son, Frank L. Carson IV, was promoted to President and CEO in January 2016, Frank maintained his office as Chairman. Frank’s civic involvement includes serving as a Director and Treasurer of the Kansas Society for Children with Challenges, Director and Treasurer of Sedgwick County Rural Water District #3, Chairman of the Mulvane Downtown Revitalization Committee, President of the Kansas All-Star Scholars Fund, Honorary Commander at McConnell Air Force Base, and past Chairman of Mulvane Education Foundation Inc. Professionally, Frank has chaired the State and Federal Affairs Committees, as well as the Board of Directors of the Kansas Bankers Association (KBA). He is on KBA’s Board of the Kansas Bankers Education Foundation (KBEF) and the Kansas Bank Services Inc. (KBSI). He has also served on the Community Bankers Council, the Government Relations Administrative Council of the American Bankers Association (ABA), and the Board of Directors of the Office of the State Bank Commissioner. Frank and his wife Kris, a retired English Teacher and member of the Boards of Carson Bank and Mulvane Bankshares Inc., have four married children, 13 grandchildren and their pal, Ollie. At this year’s annual meeting, honorees who have dedicated 50 years to the banking industry were celebrated and awarded for reaching this remarkable milestone. Those who could not attend received their awards throughout the year. 22
Bill Berkley, State Bank of Downs in Downs Congratulations to Bill Berkley on his 50 years in banking! Bill attended Downs High School in Downs, Kansas. He received his business degree and Juris Doctorate (law degree) in the 1970s from Washburn University in Topeka, Kansas. He has held various positions in his banking career and is a third-generation banker. He began his career at the State Bank of Downs in Downs, Kansas, in the mid-1960s as a teller during high school. After graduating from Washburn University, Bill worked with his father, Paul, and his uncle, Jerry, at the State Bank of Downs. During this time, he also joined the Berkley & Berkley law firm, where his uncle and father practiced law and operated the bank. Paul Berkley retired as President in 1995. Bill took over as President of the State Bank of Downs upon his father’s retirement. He oversaw the expansion of the Bank into Englewood, Colorado, in 2005. In 2008, Bill was sworn in as a United States Supreme Court member in Washington, D.C., with his dad and son. Today, the State Bank of Downs has two locations, one in Downs, Kansas, and the other in Englewood, Colorado, operating under the tradename Berkley Bank. Bill is significantly involved in his hometown of Downs, Kansas. He coaches his kids and is involved in community, charitable, civic and business organizations. Bill is currently Chairman of the Board after his day-to-day retirement in 2016. He enjoys traveling with his wife, Claudia, and visiting his three children (Bradley, Cara and Brandon) and eight grandchildren. Mark Berkley, Bank of Tescott in Tescott Mark grew up in Tescott and had his first exposure to banking by working in high school and college summers at The Bank of Tescott and on the farm. He did help take the high school basketball team to the school’s first two and only state tournaments, winning the first in 1957 undefeated, 29-0, with his cousin Mike’s lead. They were the first undefeated men’s team to win the title in the Class BB competition, which included 249 Class BB schools. It was the first and only time he remembered the bank and town merchants closing for something other than a funeral or a flood. He majored in accounting and finance at Kansas State University, graduated with honors and received the Haskins & Sells Award for Excellence in Accounting. He received his law degree from the University of Kansas in 1966 and passed the Bar exam following the devastating Topeka tornado. He immediately went to work for Arthur Andersen & Company, a large CPA firm in Kansas City. He passed the CPA exam while in law school, but to get his certificate, he had to work for two years in public accounting. In August 1969, his uncle, H.J. (Jack) Berkley, who had started working in The Bank of Tescott in 1924, passed away, leaving a void in the small staff in the bank. His cousin, Hal Berkley, who he worked with for more than 55 years, called and asked if he would consider coming to join the bank. He started working in The Bank of Tescott on Sept. 9, 1969, and has been on the Board of Directors since. 23
The bank had seven employees and $6.75 million in total assets when he joined. Today, they have approximately 60 employees and $450 million in total assets. In addition to his serving as Director for 55 years, he served as President for 23 years and Chairman for 13 years, and was an integral part of four acquisitions resulting in offices in Lincoln counties: Lincoln, Ottawa, Saline and McPherson. He also served on the boards of two other banks. He served on three KBA committees: Bank Management, Federal Affairs and a special committee appointed to study, critique and make recommendations regarding the new Community Reinvestment Act (CRA). Mark was active in Tescott organizations and served in Salina as Chairman of Finance for the Greater Salina Community Foundation and Salina Regional Health Foundation. He has enjoyed following his three children and six grandchildren in collegiate sports, playing in other activities and traveling with his wife, Jane, of 58 years. Serving customers and the community and training employees for both have been his primary goals throughout his career. The Bank of Tescott is one of four Berkley-family banks with 250 employees and assets totaling over $2 billion. Debbe Buseman Congratulations to Debbe Buseman, Cashier and Vice President at The Riley State Bank of Riley in Riley, Kansas, on her 50 years in banking! Debbe started her banking career on Aug. 6, 1973, after being approached by Harold Holmes, President at the time, to see if she would be interested in working at the bank when she was only a senior in high school. When Debbe started, the bank had 10 key-adding machines, electric typewriters and accounts identified by names, not account numbers. She had been accustomed to counting money from her grocery store days and most of the customers she’d known all her life. She remembered when the bank talked about electronic banking — Social Security checks — at a conference and said everything would be automatic by 2000. Riley State Bank got its first in-house computer in 1982. When Shirley Duensing retired in 1986, Jeff Holmes appointed Debbe as a bank cashier. Since then, she has added Vice President to her title and headed the bank’s Human Resources department. Even though learning to work with computers and keeping up with compliance and changing regulations in the banking industry was always a challenge, Debbe said the hardest thing to adjust to with all the new technology was the lack of actual contact with customers. Looking ahead, Debbe said she has no immediate plans to retire. Congrats, Debbe! James Hefley, Marion National Bank in Marion Congratulations to James R. Hefley on his 50th year in banking! James started his banking career as a management trainee on Jan. 21, 1974, at Commercial National Bank in Kansas City. After completing the training program, he joined the Correspondent Department as a Correspondent Bank Officer. He was eventually promoted to Vice President and left the bank in March 1980. James then joined the First National Bank (now Emprise Bank) in his hometown of Hillsboro, Kansas, in 1980, serving as a Vice President and on the Board of Directors. In April 1998, the bank’s ownership offered him the position of President of the Potwin State Bank (now Emprise Bank) in Potwin, Kansas. He served as President, CEO and Bank Director of Potwin State Bank until he left in 2003. In 2003, James assumed the role of President, CEO and Bank Director of Marion National Bank in Marion, Kansas. He served in that capacity until his retirement in 2016. After that date, he remained active in the bank, serving on the Board of Directors and as a lending and marketing resource. James continues to enjoy his role as a Kansas banker and serve the financial needs of his community. 24
Doug Johnson, Guaranty State Bank & Trust Co. in Beloit Congratulations to Doug Johnson on his 50th year in the banking industry! Before starting his banking career, Doug graduated from Miles High School in 1970 in Iowa. He then graduated from Kansas State University with a Bachelor of Science in Animal Sciences and Industries in May 1974. Doug was hired as the Farm Service Director at the Guaranty State Bank & Trust Co. on June 3, 1974, in Beloit, Kansas, which began his journey in banking. He was elected to become a member of the Board of Directors in 1976 and later became CEO in April 1987. In March 1977, he met his wife, Janet Rewerts, from Stafford, Kansas. They have three daughters: Melissa (Dave Warders), who lives in Wichita, Kansas, with their children Rachel, Ben and Joe; Angie (Travis Chaney), who lives in Siloam Springs, Arizona, with their children Will, Maybelle and Rosemary; and Allison (Tyler Carroll) who lives in Siloam Springs, Arizona, with their children Olive and Denver. Doug’s favorite hobbies are spending time with his grandchildren, biking and traveling. Galen “Digger” Liggett, Citizens State Bank in Lincoln Congratulations to Galen “Digger” Liggett on his 50 years in banking! Digger started his banking career on Dec. 17, 1973. From 1973 to 2003, he served in numerous positions, such as bookkeeper, teller, loan officer and then Vice President at Farmers National Bank in Lincoln. From 2003 to 2010, he was a loan officer, Senior Vice President, and then Director at Midwest Community Bank in Lincoln. From 2010 to now, Digger served as a loan officer and is retiring as the Vice President of the Citizens State Bank & Trust Co. in Lincoln. Digger has also served on several boards, such as 40 years as Treasurer for the City of Lincoln, 25 years as an EMR for Lincoln County EMS, 37 years as a member of the Lincoln Lions Club, 14 years as a board member of the Lincoln County Hospital Board, 15 years as a volunteer for the Lincoln County Rescue Squad. He also served time on the Chamber of Commerce board and 2016 Chamber of Commerce Member of the Year. The notable highlight of his banking career is spending all 50 years at the same location in Lincoln. He leaves no regrets and has a heart full of love and gratitude for those he touched along the way. He is proud to go to the bank with the team there. When he isn’t at the bank, Digger enjoys being with family and friends, camping and boating. He and his wife have five grandkids who consume their time with various activities. Congratulations, Digger, and happy retirement! 25
Janet Tucker, Community National Bank & Trust, Independence Congratulations to Janet K. Tucker, Vice President & Trust Officer from Community National Bank & Trust in Independence, on her 50 years in banking! Janet began her banking career on Feb. 25, 1974, doing rounds, working as a proof operator and in the trust department, accounting and wire service. From February 1976 to August 1977, she married and moved to Germany for 18 months, where she worked at an Exchange Post, which was part of American Express. From September 1977 to March 1980, Janet worked at First National Bank in Manhattan, Kansas, in the proof and data center. After working at Citizens National Bank in Independence from 1980 to 1999, Commerce Bank purchased her bank in April 1980, where she did proof, accounting, trust and wire services. From 1999 to 2008, her roles changes, and she worked in the loans and wire services. In May of 2008, Janet moved to Community National Bank & Trust as the Assistant Trust Officer, where she worked in the trust services, loans and wire services. Her title is now Vice President & Trust Officer. Janet has two daughters and four grandsons, whom she loves spending time with as a family. Her hobbies are tending to her flowers, cross stitching and baking. Robert D. Drury, Exchange Bank & Trust in Leavenworth For over 50 years, Rob Drury has gained extensive experience in nearly every aspect of banking. His career began in August 1974 at the Farmers and Merchants Bank in Cawker City, Kansas, where he started as a teller, loan officer and specialist in insurance and tax matters. About a decade later, Rob joined the Farmers State Bank in Corning, Kansas, followed by two years at the Farmers National Bank in Osborne, Kansas. In 1987, Rob brought his expertise to the former Fort National Bank in Easton, Kansas, which was then affiliated with the First National Bank of Leavenworth, now the central Exchange Bank & Trust branch. By 1992, he had become President of the Exchange Bank’s Leavenworth branch, a role he held for 23 years. Rob’s distinguished reputation as a reliable, compassionate and knowledgeable leader is rooted in his diverse and seasoned background. He is always focused on understanding and serving his customers’ needs. Congratulations to Rob Drury on 50 dedicated years to the Kansas banking industry! Left to right: Derek Wohlgemuth, John Robinson, Douglass Adair, Chuck Swinford, Rob Drury, Richard Dickason, Lora Weishaar, Kaylene Rindom, Rick Schneider, Dan Runde and Doug Wareham 26
Mark Kennedy, Trust Division Representative Mark Kennedy is Senior Vice President and Trust Officer at Citizens State Bank & Trust Co. in Ellsworth. He has been a Trust Division board member since 2019 and is a 2017 BLOK graduate. Mark also serves as the President of the Ellsworth Kiwanis Club, a board member of the Smoky Hills Charitable Foundation, and on the Immaculate Conception Catholic Church Council. He earned his B.S. in education and business from the University of Kansas. Mark is married to Emily, and they have two children: Patton and Marshall. He is committed to emphasizing the need for trust services in rural Kansas communities. Shawn Lancelot, Director Appointed by KBA Chairman Shawn Lancelot is the President of Bank of America, Wichita. He has served on the KBA Bank Management Committee for the past eight years and holds positions as Vice-Chair of Goodwill Industries and a board member of the W. Frank Barton School of Business at Wichita State University. Shawn earned his BBA in business administration from Wichita State University. He is married to Shawna, and they have three children: Adam, Garrett and Madeleine. In his free time, Shawn enjoys hunting, skiing, golfing and traveling with friends and family. Francis Scheuerman, YBOK Division Representative Francis Scheuerman is Senior Vice President of the Capital Markets Division at UMB Bank in Kansas City, Missouri. He has served on the KBA Membership Committee since 2022, is the YBOK Board Vice President, and is a 2022 BLOK graduate. Francis earned his B.S. in finance and marketing from the University of Kansas and is an alumnus of the Graduate School of Banking at the University of Wisconsin-Madison. He is married to Olivia, and they have two children: Gabriella and Sophia. Francis enjoys outdoor activities with family and watching the financial markets. He looks forward to representing YBOK’s interests at the KBA Board level in the coming year. Kendal Kay, KBA Vice Chairman Kendal Kay is the President and CEO of Stockgrowers State Bank in Ashland. He serves on the KBA Federal Affairs Committee. During his time in Ashland, Kendal has been actively involved in various organizations, including previously serving as the Mayor of Ashland for 13 years. Prior to his mayoral tenure, he was a city council member for 12 years. His current roles include serving as a board member of the Ashland Fitness Center Inc., a board member of Ashland 2020 Inc., and a member of the housing committee. He is also a board member and the Investment Committee Chair of the United Methodist Health Ministry Fund in Hutchinson, Kansas. Kendal earned his Bachelor of Science degree in accounting from Oklahoma State University. He is married to Karrie, and they have four children: Sloan and her husband, Kole; Reece and his wife, Hannah; Braton and Kinley; as well as one granddaughter, Kora. Kendal is a 2008 BLOK Alum. Sara Girard, Region 2 Representative Sara Girard is the CEO of Central National Bank in Topeka. She is Chair of the KBA Membership Committee, a member of the Federal Affairs Committee, and has previously served as a YBOK Officer and board member. Sara also serves on the ABA Membership Council. She earned her B.S. in finance and economics from Kansas State University, her MBA from the University of Iowa, and is an alumna of the Graduate School of Banking at the University of Wisconsin-Madison. Sara is married to Nathan, and they have two children: Austin and Ella. In her spare time, she enjoys her children’s activities, sports and travel. Her goal is to maintain the community banking model by protecting the industry against excessive regulation. Sara is a 2015 BLOK Alum. Meet the New KBA Board Members 27
2024 BLOK Session III 2024 BLOK Training Travels to Wichita The 2024 KBA Bank Leaders of Kansas (BLOK) Class reconvened their executive-level leadership training with a successful third session in Wichita on July 17-19. The first day and a half were filled with an engaging leadership training session facilitated by Ted Garnett, President of PS Culture Matters. 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; and 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 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. Garnett also taught participants conceptual tools to improve their leadership skills within their bank teams to get results. Hands-on group exercises had the class learn that the No. 1 leadership skill is listening, and the No. 1 group skill is consensus. The class was also assigned a self-accountability action assignment in Session II to be presented to the class during Session III. The assignment was based on “Leadership and Self-Deception,” written by The Arbinger Institute. After reading the book, each person implemented a tool taught in the reading, shared their No. 1 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 their beautiful new academic building, Wayne and Kay Woolsey Hall, the new home of the W. Frank Barton School of Business. The day began with a KBA Leaders Challenge Panel, featuring distinguished KBA bank leaders Bob Leftwich (Director, Impact The 2024 BLOK Class paused for a group photo after a day of engaging training. (Left to right) KBA’s Doug Wareham moderated the KBA Leaders Panel, featuring three former KBA Board Chairmen: Earl McVicker, Bob Leftwich and Ron Johnson. They shared their experiences as chairmen and encouraged the BLOK Class to stay involved in the KBA throughout their careers to keep the industry advancing. The BLOK Class shared a laugh with Shannon Beal (center) as she described the lessons she learned from reading and implementing techniques from the book, “Leadership & Self Deception.” Executive Coach Ted Garnett challenged the BLOK Class with the Leadership Job Description. 28
Thanks to Our BLOK Sponsors! Premier Blue Cross Blue Shield of Kansas and KBA Insurance Inc. Platinum FHLBank Topeka Silver INTRUST Bank, N.A. Bronze Bankers’ Bank of Kansas, Professional Bank Consultants LLC, and Schools of Banking Bank, Wellington, and KBA Chairman 2015-16), Ron Johnson (Kansas Bankers Educational Foundation Ambassador and KBA Chairman 2017-18), and Earl McVicker (Chairman & CEO of Central Financial Corporation, Manhattan, and KBA Chairman 2000-01). 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 panelists described their leadership styles and important events during their term as KBA Chairman. They encouraged the class to get — and stay — involved in the KBA and even at the American Bankers Association level. The BLOK Class was then able to gain knowledge from an interactive Workforce Development Panel discussion featuring Rick Sems (CEO of Equity Bank, 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 class was also able to pick their brains on issues such as managing remote workers and the use of artificial intelligence. The session concluded with a roundtable discussion regarding workforce development. Class members shared their own experiences and ideas for attracting/retaining talent, especially in rural communities. The BLOK Class reconvened at their fourth and final session in Washington, D.C., in September, where they were joined by the KBA Federal Affairs Committee and KBA board of directors for a march on Capitol Hill. 2024 BLOK Class Members Stephen Austin, Bank7, Montezuma Ali Aylward, Bank of Commerce, Chanute Shannon Beal, Citizens Bank of Kansas, El Dorado Brian Berkley, Solutions North Bank, Stockton Michael Carlson, Denison State Bank, Holton Kerry Clark, Kansas Bankers Association, Topeka Alison Clutter, Bankers’ Bank of Kansas, Wichita Loren Erway, Farmers Bank & Trust, Atwood Jenny Figge, Kansas Bankers Association, Topeka Ryan Fleck, Legacy Bank, Wichita Mark Galloway, Bank of Tescott, Salina Kate Haverkamp, First Heritage Bank, Centralia Jenell B. Hulse, Bank of the Plains, Salina Jessica Kerr, Golden Belt Bank, Hays Cher McLachlan, First National Bank of Hutchinson, Hutchinson Taylor Sharp, TriCentury Bank, De Soto Billy Skrobacz Jr., Capitol Federal Savings Bank, Topeka Andy Stegman, GNBank, N.A., Offerle Taylor Stos, First State Bank & Trust, Tonganoxie Lance Tilton, Astra Bank, Chapman George von Leonrod, First National Bank, Dighton Andy Watkins, INTRUST Bank, N.A., Wichita Gant Welborn, FHLBank Topeka, Topeka Candace Wolke, Vintage Bank Kansas, Conway Springs The Workforce Development Panel featured Kansas bankers Steven Suellentrop and Rick Sems. 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. Kerry Clark, Ryan Fleck and Andy Watkins strategized to complete a task without using verbal communication. Candace Walker (left) learned the importance of trusting teammates, participating in an exercise that challenged class members to briefly let go of control. 29
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