THE

ISSUE 6 2020

From All of Us to All of You… Thank You and Have a Safe and Wonderful Holiday Season

page 10

OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION | NOVEMBER/DECEMBER 2020 OFFICIAL PUBLICATION OF KANSAS BANKERS ASSOCIATION | SEPTEMBER/OCTOBER 2020

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316.265.2811 • 816.221.6300 • @BKDFS Executive 15 Doug Wareham, President and CEO Kathy Taylor, EVP, General Counsel Becky Tongish, EVP, Chief Stratagy Officer Terri Thomas, EVP, Legal Department Director 6 22 Administration Alex Orel, SVP, Government Relations Eric Stofer, SVP, Chief Financial Officer Mary Taylor, SVP, Communications and Marketing 6 President’s Message: Brighter Days Ahead By Doug Wareham, KBA President and CEO Julie Taylor, VP, Computer and Information Systems Sara Blubaugh, VP, Executive Assistant to the 8 President and CEO Washington Update: Playing the Long Game By Rob Nichols, President and CEO, American Bankers Association Bree Magee, Communications & Marketing Coordinator Lynne Mills, Receptionist/Special Projects 10 Leaders Ledger: Connecting Connectors Through Education Education and Conferences By Brenda L. Unruh, KBA Senior Vice President Education & Conferences, Member Services Brenda L. Unruh, SVP — Education & Conferences 12 2020 Lending Conference Recap Becky Milne, VP — Education & Conferences Nicole Ortiz, AVP — Education & Conferences, 14 2020 Economic Outlook Conference Recap Division Coordinator LeAnn Mott, AVP — Education & Conferences,  15 2020 KBA Trust Conference Recap Division Coordinator 16 2020 Annual YBOK Conference Recap Insurance Ryan McLaughlin, President, KBA Insurance, Inc. 18 2021 Legislative Preview, Tax Equity Returns and New Ed Griffith, EVP, Employee Benefits Legislative Leaders Elected Kent Owens, VP, KBA Insurance, Inc. By Alex Orel, KBA Senior Vice President Government Relations Susan Salyer, VP, Employee Benefits Jenny Garcia, VP Operations  20 Sabermetrics for Lenders: An Approach to Cari Charter, AVP — KBA Insurance, Inc. Maximize Profitability Legal/KBCS By Michael Fielding, Husch Blackwell LLP Jackie Kuhn, VP, Staff Attorney 22 Gwen Hill, VP, Staff Attorney Embrace New Distribution Channels; Expand Your Reach By Chris Cox, Chief Operations Officer, Apiture Allison Carpenter, VP, Staff Attorney/Senior Compliance Auditor Bobby Young, VP, Staff Attorney/ IT and HR Consultant 26 Trying to Market in a Pandemic? See What the Experts Say Adeel Syed, VP, Staff Attorney By Neal Reynolds, President, BankMarketingCenter.com Dylan Serrault, VP, Staff Attorney/Compliance Auditor Neal Barclay, AVP, Compliance Specialist/Auditor 28 To Scan or Not to Scan, That Is No Longer the Question! Jeff Narron, AVP, Compliance Specialist/Auditor By Bret Mills, CoNetrix Kelly VanZwoll, Staff Attorney and Government Relations 30 Kansas Bankers Association Announces its Endorsement Meridith DeForest, Administrative Legal Assistant of Shred-it Koren Kabriel, PT Administrative Legal Assistant 32 Briefly in Kansas Banking

© 2020 Kansas Bankers Association | The newsLINK Group, LLC. All rights reserved. The Kansas Banker is pub- lished six times each year by The newsLINK Group, LLC for the Kansas Banker and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Kansas Bankers Association, its board of directors, or the publisher. Likewise, the ap- pearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Kansas Bankers 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.

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BrighterDays Ahead By Doug Wareham, KBA President and CEO

s the final days of first wave of the coronavirus took hold because our mission of supporting our 2020 draw to a close, I back in early March. Following the lead member banks gave us a collective and believe it’s important to of Kansas bankers, who were deemed meaningful purpose. reflect upon this very essential workers by state and federal tumultuous year and regulators, the KBA has remained open I want to thank KBA’s Board of Directors, our Division Boards, ask ourselves an important question: In for business throughout this crisis. We Athe face of this historic pandemic, did and our many KBA committees worked diligently to serve as a lifeline for for the incredibly important work we accomplish our mission? Answering Kansas bankers who were, in turn, doing they continued under difficult that question begins by reviewing KBA’s everything in their power to support and circumstances this past year. In spite mission statement: assist their customers and communities. of this unprecedented roller-coaster We also learned (just as you have) to Together we support our member banks ride, Kansas bankers have kept your harness a virtual world for meetings and and bankers with leadership, advocacy association moving forward. Significant events, and we’ve learned to disseminate and education to benefit the communities progress was made this past year on information timelier and more and customers they serve. several strategic planning objectives, efficiently to you: our customers. Once including strengthening KBA’s political Just like you, your KBA staff team was again, we simply followed your lead muscularity during the recent elections forced to adapt and overcome when the and kept working; we kept grinding that saw an unprecedented number

6 Pub. 9 2020 Issue 6 7

The The banks Financial Viability: Kansasof are all facing the same challenges. Shifting consumer habits, competition from outside traditional banks, regulatory climate and taxation all affect banks’the ability operateto and maintain financial stability. Sacrificesto service is annot option, so member banks must seek other means improve to their performance. Kansas Bankers Association provides the answer thisto need through its catalog supportof services. The benefits membershipof with the Kansas Bankers Association extend the banks’ abilities focus to their on most important function, serving their communities.Members know that the KBA can them help alleviate the duress from influences. outside The banks Connectors: Connecting in Kansas connect the fabric of our communities. the At heart of nearly every success story in Kansas is a bank that was willing help. to The banksof Kansas connect the dreamers and doers the of state with the resources they need make to things happen. The connectsKBA member banks with the resources and network they need remain to an essential part the of lives the of communities they serve. these hope principlesWe will serve as a keen reminder that the collective the of role Kansas banking industry importantis more today than Kansasever. bankers led through this crisis, and they will lead the rebuilding economy our of state’s coming this of out crisis. Your association stands with ready work to inyou the coming year ensure to brighter the days for communities and customers serve. you principles that will guide the messaging thisfor campaign is provided below: Banker Driven: The Kansas Bankers Association provides a meaningful differencepoint of by being banker driven. The decisions by made the association are always made with its membership in the forefront. Membership can trust that the organization is acting in their best interest because the membership is leading the action. With 98% participation in the association, the representation is an accurate reflection Kansasof banks. All voices are heard because nearly every participates. voice with you in the coming year coming year with you in the for for ensure brighter days to and customers communities the you serve. Your association stands ready to ready to association stands Your work We have also have made greatWe strides in preparing a statewide industry image campaign that will reach every corner Kansasof This in 2021. campaign will tell the positive story our of industry and will it highlight the our of role association the to policymakers, business and civic leaders, as well as the general the public. of A snapshot of pro-bankingof candidates elected to serve in the Kansas also Statehouse. I’m extremely report to proud a steadily increasing number Kansas of banks and growing) that are benefiting(117 from the legal and compliance Kansasassistance provided KBA’s by Bankers Consulting Services. WASHINGTON UPDATE

Playing the

By Rob Nichols, President and CEO, American Bankers Association

fter months of of, and we have made tremendous months ahead — keeping an eye on planning and progress in recent years in advancing a economic indicators, responding to preparation — and if pro-growth, common-sense and data- problems early and helping to restore we’re being honest, driven approach to banking policy. our nation’s economy. ABA stands a little angst — at the ready to work with the next In fact, many of the significant Americans went to the polls in record administration and lawmakers from pieces of banking policy have been Anumbers in early November to cast both parties to bolster the economy, bipartisan in nature. Take for example their votes in presidential, state and S. 2155 — the regulatory reform law that increase opportunity and create a local races. The contest topping the Congress passed in 2018. That effort brighter future for all Americans. ticket was one of the most high-profile was a testament to how lawmakers and most contentious presidential races At the same time, we won’t lose on both sides of the aisle were able to in recent memory. sight of our other policy priorities. come together to help clear some of We’ll continue to put our policy and the roadblocks that stood in the way of But with major media outlets calling advocacy expertise to work to address banks’ ability to serve their customers, the race for former Vice President Joe the important issues facing our clients and communities. Biden and Senator Kamala Harris, ABA industry, from AML/BSA reform to is preparing for a Biden administration That same cooperative spirit is CECL to cannabis banking. to take over in early 2021. It’s also desperately needed today, when so As one might expect from a trade looking likely that Congress will remain many families and businesses are still divided, with Republicans in control of feeling the extreme economic effects of association that’s been around for nearly the Senate and Democrats maintaining the COVID-19 pandemic. As we look a century and a half, our eyes are on the control of the House — though with two ahead to 2021, the economic recovery long game. And while some of the tactics critical Senate races in Georgia going to will be top of mind for policymakers in we employ may change with the times, runoff elections, it will still be several Washington and the financial industry our agenda will remain the same — and weeks until we know for certain. will have an important role to play in will continue to be driven, first and the ongoing response. foremost, by the banks we serve. Regardless of how the balance of power may shift, ABA will continue to Banks played a monumental role as draw on its nearly 150-year history of economic first responders in the early working alongside both parties to find days of the pandemic to address the Email Rob Nichols at common sense policy solutions that economic dislocation that stemmed [email protected]. will support economic growth. It’s a from the healthcare crisis, and we’ll longstanding tradition that we’re proud continue our work in the weeks and

8 Pub. 9 2020 Issue 6 9 | 855.747.4003 727.475.9827 727.475.9827 [email protected]

hold and members’ perfect tool the to entice Magazines areMagazines your attention. To advertise in this magazine, contact us today. us contact in this magazine, advertise To Reach your customers with print. print. with customers your Reach LEADERS LEDGER

CONNECTING CONNECTORS Through Education

By Brenda L. Unruh, KBA Senior Vice President Education & Conferences, Member Services

espite the turmoil experienced this year, we Feb. 3, our Kansas Ag Bankers Conference March 3-4, our Tri- choose to focus on the positives that have State HR and Marketing Conference March 18-19 (cohosted arisen, such as the opportunity to learn. by KBA, the Nebraska Bankers Association and the Missouri Throughout 2020, we’ve all had to learn Bankers Association), as well as an exciting new addition to resiliency, creativity and how to “pivot” on our lineup, the inaugural Women In Banking Conference, any given day in ever-changing circumstances. Your KBA March 25-26. DEducation and Conferences team thanks you for putting learning and the continuing education of yourself and your Our job is to connect connectors through education. Each staff as a high priority by attending our many conferences, of you has cultivated intricate connections within your own webinars and seminars in 2020. While we miss seeing each communities, with each other and with us. We continue to honor and every one of you, we know that the health and safety of those connections by providing you with the same high-quality our bankers and our staff are vital to all of the communities we programming you’ve come to expect from YOUR association, serve. With that in mind, we have made the difficult decision just in a new format. We look forward to what the rest of 2021 to continue all our events through the first quarter of 2021 in a will look like as we move back to in-person programs, as well as virtual format only. hybrid events that will allow attendees to choose how they attend Major programs that will break new ground by becoming and interact! Please check our website often at ksbankers.com for virtual events this year will be our Public Affairs Conference the latest updates and information.

10 Pub. 9 2020 Issue 6 11 ksbankers.com Visit us online! us online! Visit 2020 Lending Conference Recap

he Kansas Bankers profitable loan portfolio in a short The afternoon began with a series Association launched period of time. of concurrent breakout sessions. their virtual 2020 Joe Micallef shared Will You Be My Next up, Dr. Stephen Happel shared Annual Conference for Customer? — Create Proposals That his outlook on the economy with his Lenders on October Guarantee Your Customers Will Say presentation 2020 Election Outcome: 1. KBA Chairman Jonathon Johnson Yes. Mike Wear, President of 39 Acres, Trump vs. Democrats. While the Tkicked things off with a welcome discussed Loan Portfolio Management election was still a month away, Dr. message, sponsor recognition and Tools and Strategies. Karen Shannon of Happel discussed the most recent Blue introductions, then turned things Ollis Akers Arney presented Building Chip forecasts for 2020 and 2021, and over to Joe Micallef from Grow UP and Sustaining Trust for Lenders. put them in a historical perspective Sales for his presentation called Are After a brief break, the second round tied to different presidential You a Quoting Machine or a Trusted of concurrent sessions began with administrations since WWII. Advisor? Joe shared that as a lender, Joe Karlin of Karlin Consulting and the job wasn’t simply to quote interest Our lunch speaker was Cary Sifferath, his topic, A Commercial Real Estate rates but to be a valuable finance Senior Director of Global Programs with Apocalypse? How to Prepare Your partner who helps your clients the U.S. Grains Council, who spoke about Bank for Its (Possible) Arrival, as well achieve their goals. Building trust and global trade, and trade with China. He as Dr. Bruce Morgan of Professional enhancing your value as a finance highlighted what is currently in play and Bank Services and his topic of Loan professional can help you grow a what has yet to come to fruition. Underwriting, Risk Grading, Risk

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for thefor Kansas City Chiefs, sharing Your Off Life Take Maskthe — Is DanStory Telling? shared Worth highs hisand of lows 25 year career with the Chiefs, as well as his passionate preoccupation encouraging of others striveto the for best in life and enjoy to every step along the way. Please join us in Manhattan, Kansas, next the year for October 2021 on 7-8 Annual Lenders! Conference for

for the for the

shared information leveraging on risk modeling and rules-based automation. The second beganday withChris Dr. Kuehl Armada of Corporate Intelligence discussing and Economy The 2021 Beyond, Karlin Joe by followed Karlin of Consulting sharing Shifts his of topic Impacting Lending Can — What Do We Prepare. to The conference concluded with Dan the mascot Wolf, Meers, is who KC October 7–8 Please join us in Manhattan, Kansas, next year on year on next Kansas, Manhattan, join us in Please 2021 Annual Conference for Lenders! for Annual Conference 2021 Closing was day one Mike out with Wear his keynote, Closing the Experience Gap, in which effectively to explored he how prepare the next bankers generation of creditfor risk they when, pre-COVID, had only experienced the of one longest economic expansions in history. U.S. He Rating and Risk-based Loan Pricing. Jackie from Shazam Rowlow also shared PipelineCreating Your for a Talent CommunityBank. 2020 Economic Outlook Conference Recap Gene Marks Ed Seifried Joe Sullivan

he 2020 Economic capital, accounting, liquidity, stress from Centera Bank in Sublette. Mike Outlook and Risk testing, earnings, people and exam welcomed Dr. Ed Seifried of Seifried Management considerations that every bank must & Brew for his general session topic Conference broke keep top-of-mind considering the of The 2020 Recession: Just How Bad new ground by going economic headwinds. Is It, and When Will It End? Dr. Ed virtual this year. On Wednesday, Nov. said that the 2020 economic collapse Attendees were then divided into T4, KBA Chairman Jonathon Johnson will be deeper than any economic breakout sessions including Managing welcomed over 100 attendees with downturn since World War II. He the Downturn: Best Practices in ALM his opening remarks and sponsor cataloged the economic damage by by Dennis Zimmerman and Matt recognition. He also introduced this pandemic, as well as describing Maggi of Commerce Bank; Creating the KBA’s new mascot, Flint! KBA the monetary and fiscal policies Funding Stability During Uncertain members will begin seeing the new implemented to end the downturn, buffalo icon on our publications, our Times by Lance Caldwell of IntraFi and most importantly, he attempted to website and at our events. (formerly Promontory Interfinancial determine when the recovery begins Network); and Managing Risk Kicking off the opening general Without Breaking the Bank: A whether the economy will follow the session was Gene Marks of The Marks Benchmarking Update by John Meyer path of one of the suggested recession Group, P.C. His session was entitled: of Cornerstone Advisors. possibilities: the “V,” “U,” “W,” or “L” Beyond the Pandemic and After the shaped recovery. Elections: Issues, Challenges and Wrapping up day one was Joe Sullivan Our final presentation was entitled Strategies to Grow your Business of Market Insights. He spoke on the The One Compass — Coach and the over the Next Two Years. He spoke topic of Leadership in the Era of Cowboy, led by Kevin Chase and about the obstacles that are impacting Digital Transformation. He noted that current cash flow as well as longer- digital leaders must blend traditional Brandon Clark. They shared their term strategies for growth, and shared skills with new competencies that insight on culture driven by four what leaders are doing to navigate help foster an environment for all points of direction called ACES: their companies, their employees employees to adapt and thrive. New Accountability, Character, Energy and and partners toward growth and approaches to learning recognition Service. It provided an uplifting end to profitability over the next two years. and use of physical space must be our 2020 conference. taken. Senior leaders must share a Please mark your calendars and save Next, Peter Weinstock from Hunton vision for how technology can improve the dates of Nov. 3 and 4, 2021, as we Andrews Kurth LLP discussed their bank’s competitive position. Strategic Plans, Capital Plans and Risk meet in person again in Wichita for Appetite: How to Fit Them Together Thursday, Nov. 5, began with a welcome the 2021 Economic Outlook and Risk in a COVID World. He reflected on by committee chairman Mike Cearly Management Conference.

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authorities. also She talked the about andeconomy what expect to jobs for and consumers and the market and what investors can expect. The market structure and its effect trading on and stocks and regions at a look and styles investingof also were included in her presentation. In conclusion, Linda what happens when over the went dust settles regarding the election, social distancing and the good and bad news investors. long-term for Our closing keynote this year was our good friend, Rocky Miskelly, of President Renasant Wealth Management and senior trustfor Renasant officer Bank. Rocky great some advicegave and tools how on continueto selling during a pandemic. Communication and thinking is key, theoutside is box also important. Be sure alwaysto shape add or value in way, some form and continue to have conversations that are meaningful. If possible, invest in technology, so the opportunity for e-signatures are available. be afraid Don’t hostto client appreciation events as well. Rocky’s message was very encouraging in these uncertain times. The adjourned.conference light our on current investment outlook and the opportunities are we seeing across the global markets. also He shared his perspectives key on topics fromeconomic growth, employment, consumer confidence, theCOVID-19, implication monetary of and fiscal stimulus and more. The closing speaker for the firstmorning was Jeff Bottenberg, president vice and trust BOK officer atFinancial. Jeff discussed the statutory ethical duties that trust officers follow must when administering trusts and fiduciary accounts. also He discussed the Kansas Rules Professional for Conduct that apply attorneysto serve who as fiduciaries. These rules were further explained and clarifiedby case law. Kicking off the second morning of the KBA Conference Trust was Jack Liekar, and President Vice Senior Regional Consultant with Federated Hermes, our Platinum He Sponsor. introduced the opening speaker the for morning, Linda Duessel, Senior Equity Strategist with Federated Hermes. Linda discussed the unprecedented global response fiscal by and monetary he 2020he KBA Trust Conference had its first- ever virtual conference. programThis year’s once again had a phenomenal

Patrick Smith, vice with president Morgan Asset Management, thenJ.P. chiefintroduced David global Kelly, Dr. strategist and the head of Global Markets Insights Strategy Kelly shed Dr. Team. Attendees were welcomed by KBAAttendees by welcomed were DivisionTrust Karnes Joe President and KBA Chairman Johnson. Jonathon opened The conference withLarry Dr. Divers, executive vice of president Cannon Financial Institute. Larry knowledge a comprehensive brought investments,of retirement plans and wealth management into his session. guidedHe the attendees to how on and the monitor implement provisions theof CARES Act and Secure Act as well as the IRSNotice 2020-50 and the new required minimum distribution rules under IRS Notice 2020-51. speaker line-up the over course two of alsomornings. had several We our of valued sponsors join in making on this a very successful virtual experience.

2020 KBA Trust Conference Recap Conference Trust KBA 2020 T 2020 Annual YBOK Conference Recap Due to COVID concerns, this year’s Annual YBOK Conference was held virtually on Oct. 28, 2020, with over 50 participants.

BOK President Brian a positive outlook on life and in our our first-ever virtual chairman panel. Whitesell (Landmark everyday job duties during these trying The panel answered several questions National Bank) times, and they were well received by in regard to what advice they would welcomed everyone their audience. give someone going into a leadership to the conference and position for the first time as well their The next speaker of the day was thanked this year’s sponsors. Whitesell thoughts on the unprecedented actions Kansas U.S. Senate Candidate Ythen introduced the YBOK Board and taken by congress and the Federal Congressman Dr. Roger Marshall. He turned the mic over to KBA Board Reserve to combat the economic joined us while out on the road on his Chairman Jonathan Johnson. Jonathan downturn caused by COVID-19. campaign bus just five days before the gave a KBA update about the work that election, which he won. Senator-Elect has been done to address our strategic After the panel, KBA’s SVP, Marshall talked about his legislative plan. He also discussed the importance Government Relations Alex Orel gave priorities and what he hears from of being engaged in the political a brief election update and talked Kansans across the state amidst a process and being leaders not only about the state and federal legislative pandemic. Senator-Elect Marshall also in their institution but also in their priorities that the KBA’s government talked about his work as vice chairman community. relations team is working on and of the board for Farmer’s Bank & what to expect in next year’s state Trust in Great Bend and thanked the The first speakers of the day were The legislative session. Coach and The Cowboy. For years, banking industry and the KBA for its Brandon Clark (The Coach) and Kevin support in his campaign. Our last speaker of the day was Chase (The Cowboy) generated top Astronaut Sam Gemar, who shared Just after hearing from Dr. Roger many stories during his time as an performance from their respective Marshall, we took a short commercial astronaut and how he overcame many teams within the community of break to thank our sponsors for this struggles of his career. He was able Derby, Kansas. Brandon was a high year’s conference and played the two to relate that to the hard times we are school football coach, and Kevin new KBA videos that have played on facing during this year’s pandemic and was Chairman and CEO of Verus TV, one called “There will be a bank” Bank. Faith and friendship brought that was produced to help promote how we can overcome any obstacle if them together more than 15 years the image of the banking industry and we just persevere. ago. Today, they both enjoy sharing a another video featuring KBA President We finished out the day with our common passion for creating positive Doug Wareham talking about the annual meeting and transition of and meaningful team culture. Kevin response the banks in Kansas had officers and board members. After the has served as the Derby Football in response to COVID-19. Both are transition of officers, incoming YBOK Program’s culture coach for the past available to watch on our website. President Derek Bailey (Great Western four years. Together, he and Brandon Bank) addressed the conference and developed a culture program that has After our commercial break, we thanked the speakers and sponsors proven successful from the gridiron to were able to hear from Frank Carson for their time and support. Next the board room. (chairman, Carson Bank), Charlie Chandler (chairman, INTRUST year’s YBOK Annual Conference is The Coach and the Cowboy offered Bank), and Jeannette Richardson (vice scheduled for Sept. 8-10 in Wichita, so many insights on how we can provide chairman, Prairie Bank of Kansas) for mark your calendars!

16 Pub. 9 2020 Issue 6 17

4 Virtual -

March 3 CONFERENCE

KANSAS AG BANKERS AG BANKERS KANSAS

11

22 Please visit our website at www.ksbankers.com for the full brochure and details!for conference website at www.ksbankers.com our Please visit

00

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Keynote Speaker Eric Snodgrass, Principal Atmospheric Scientist for Nutrien Solutions Ag for Principal Atmospheric Scientist Eric Snodgrass, Keynote Speaker Business Better” podcasts. Author “Do of books, Business Better” and “Food Fear” FEATURING Dr. David M. Kohl, Ph.D., Professor Emeritus, Virginia Tech, AgriVisions, LLC Randy Blach, CEO CattleFax Keynote Damian Speaker Mason, Producer and Host of “The BusinessAgriculture” of and “Do

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3444.

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20210302/index.jhtml includes hotincludes breakfast

KBA2 State Bank, Elkhart

, INTRUST Bank, N.A., Wichita , Centera Bank, Sublette

, Grant County Ulysses Bank, , First State Bank, Plainville KBA STAFFKBA

Elect, Community State Bank, Coffeyville Education & Conferences, ServicesMember KBA OFFICERS KBA — President

Vice President Education Division & Conferences, Coordinator

Board of Directors Past President —

Doug President Wareham, & CEO Kansas Ag Bankers Division Kansas Secretary/Treasurer Mikel Hadachek, Astra Bank, Belleville

2400 and ask for theBankers KS Ag Conference block. This block expires February 7454 and ask for the Kansas Bankers Association block. Thisexpires block February Brett Wicker, Bank of Chanute Commerce, Carl Keith, Solutions North Bank,City Hill — Lindsey Martin, Bank of Protection, Ashland Lucas Sawyer,Lucas Prairie Bank of Kansas, Inman Shelly SecurityTurner, State Bank, Scott City

Brad Zimmerman, First National Bank, Scott City Robert Rugan, Farmers Bank Bend & Trust,Great Tim SmithTim Jay Meyer s conference is business casual.s conference Remember, meeting temperaturesroom and personal ’ , 115 Earth Blue Place, Manhattan, 66502, of at $119.95a rate per night. can beReservations Elsa Havel CPE Credit. KBA

Stephen Hendrickson, State Bank Citizens of Marysville, Hanover Kurt Knutson, KBA Past Chairman, Bank,Freedom Overland Park David White Brenda L. Unruh, SVP LeAnn Mott, AVP Jonathon Johnson, KBA Chairman, Home Savings Chanute Home Bank, Chairman, Jonathon KBA Johnson, Mike Ewy, Chairman KBA Shan Hanes, KBA Vice Chairman, Heartland Tri 7091 and ask groupfor the name KBA Ag Bankers Conference. This block expires February 5th or

10 hours , 410 S. 3rd St., Manhattan, 66502, at a rate of $109 Reservationsper night. be bymay made visiting , 1212 Ave.,Bluemont Manhattan, 66502, at a rate of $105 per night. Reservations bycan be made calling

, 300 Colorado Manhattan, St., 66502, at of a rate $107 night per and KBA2. The rate room will expire February 15th or when sold out. http://hiltongardeninn.hilton.com/en/gi/groups/personalized/M/MANGIGI the hotel (785) at 473 when sold out. Venue: Hilton Garden Inn Manhattan Conference Center, located at 4103rd S. St., Manhattan. Recommended for The suggested attire for year this or you have any jacket should to If the sessions. thatbring you a sweater vary zones It is recommended comfort widely. office, at the KBA 785 LeAnn contact Mott ([email protected]) questions, please Hilton Garden Inn Fairfield bymade calling the at (785) hotel 539 3rd or when sold out. Holiday Express Inn & Suites bymade calling the hotel at (785)320 4th or when sold out. Bluemont Hotel

WHO SHOULD ATTEND: WHO SHOULD This conference is tailored so that both entry level positions and ag experienced loan officers will gain valuable informatio INFORMATION: CONFERENCE • • • INFORMATION:HOTEL 3rd. & 2nd March of nights blocks the for room five has The conference • • • • 2021 Legislative Preview, Tax Equity Returns and New Legislative Leaders Elected

By Alex Orel, KBA Senior Vice President Government Relations

he Kansas Legislature is set to Ty Masterson convene in Topeka on Monday, Jan. 11, and all indicators are (R-Andover) won the Senate showing that they are planning to presidency by acclamation after hit the ground running when they having no opposition. do return. Because of the COVID-19 pandemic, Tthe 2020 legislative session was abruptly cut short, with many significant pieces of legislation left Ty Masterson on the table that will need to be addressed in the upcoming session. This legislation also includes KBA’s tax equity legislation that passed with Incoming Senate Vice strong bi-partisan support but was vetoed by President Rick Wilborn Kansas Governor Laura Kelly with no chance The vice president’s slot went to current to override since it was passed on the last day of Judiciary Chairman Rick Wilborn the session. (R-McPherson) after he defeated two other Although many of the issues remain the same, senators on a second ballot. Rick Wilborn the statehouse will have a very different look this year. The Senate Republican leadership will remain conservative for the next four years despite Incoming Senate Majority electing entirely new leadership for 2021, after Leader Gene Sullentrop eight years with Susan Wagle, the first female Senate President in Kansas history. In the race for majority leader, current Health Chairman and Legacy Bank Director Gene Suellentrop (R-Wichita) defeated current Ways and Means Chairwoman Carolyn McGinn Gene Sullentrop (R-Sedgwick).

18 Pub. 9 2020 Issue 6 19 Speaker of the House of the Speaker Jr. Ron Ryckman was elected Ryckman (R-Olathe) Ron Jr. anto unprecedented third term as Kansas Speaker, and his leadershipcore team will also return in Majority Leader andDan Speaker Hawkins (R-Wichita) Blaine Finch (R-Ottawa). Pro Tem The House The Democratic Caucusre-elected current Minority and will he Sawyer (D-Wichita), Leader be joined newly by Tom elected Assistant Minority Leader Jason Probst (D-Hutchison). Although there been have significant changesto leadership the posts, both chambers poised look early work get to to in response theto negative Other economic impacts caused COVID-19. by issuesmajor include backfilling unemployment the state’s insurance fund, property tax and reform addressing the budget projecteddeficit for 2022. The congratulatesKBA theseleaders on being elected earlier this month, and forward look we working to with them behalf on of the Kansas banking industry! anyIf have questions you can want or you know to how help, please hesitate contact to not do Alex [email protected] at or call232-3444. (785) the KBA office at Incoming Senate Minority Leader Dinah Sykes Dinah who Sykes (D-Lenexa), switched parties the to prior 2019 Legislative session, was elected to succeed the longtime Minority Leader Hensley Anthony Hensley. had been the Democratic leader in The 2021-2022 KansasHouse Leadership2021-2022 teams The will remain substantially the same as the previous biennium. the Senate since was but 1996 defeated in the general election. Sykes, the firstfemale minorityleader in state washistory, first electedto the senate moderateas a Republican in 2016 switchingbefore parties shortly election. afterSykes the 2018 backwelcomes the incumbent Assistant Minority Leader ran who unopposed.Oletha (D-Wichita), Faust-Goudeau Sabermetrics for Lenders: An Approach to Maximize Profitability

By Michael Fielding, Husch Blackwell LLP

n the early 2000s, Major Building from Micro to Macro covenant will depend upon the nature of League Baseball underwent a the borrower’s business and the industry seismic change. Billy Beane, It is always important to obtain in which they operate. For example, a general manager of the small- data from potential borrowers and cash-flow coverage ratio is important market Oakland Athletics, benchmark against similar companies for determining a company’s ability realized that a team wins games by in the same industry. The Risk to service its debt, but EBITDA also Iproducing runs, and runs only come Management Association’s e-statement has well-known shortcomings. While when players get on base. For decades, studies are one tool to employ in this it is commonly used as a proxy for baseball teams had judged the value of a regard. This data comparison should cash flow, it is not cash flow. EBITDA batter by his batting average and ability not be done just at the beginning does not account for a company’s of the loan but should also be done to hit home runs. While these are capital expenditures or a company’s periodically during the loan lifecycle decent measures, Beane realized that a ability to manage its receivables and to spot any potential problems on player’s on-base percentage (OBP) was payables. EBITDA can be changed, for the horizon. This “microdata” should a more important metric, one whose instance, by changing a depreciation include the borrower’s past credit value was not fully appreciated by the schedule. EBITDA does not consider history and updated cash flow, as well market. By signing players with higher the underlying collateral, the structure as a sophisticated data set relating of the loan, the borrower’s market or OBPs, he could work with his small- to collateral, including the type of other loan covenants. Comparing debt market budget and still field a winning collateral involved, the collateral’s to EBITDA is a common leverage ratio, team. Beane’s work did not change the liquidity, and the discount applied to it but it sometimes conceals as much as rules of the game, but it fundamentally in liquidation scenarios. it reveals, much like a batter’s batting changed how teams looked at and average. Think carefully about whether evaluated players. While vitally important to the too much emphasis is placed on this individual loan under consideration, ratio, or when is the most appropriate Today’s lenders — particularly smaller these microdata flow into a powerful time to consider it. Conversely, there are lenders — need to take a page from aggregated set of data as well and can metrics that might be underused, such as Beane’s playbook. It is no secret that reveal hidden strengths and blind spots in the quick ratio, which monitors liquidity. times are tough for lenders — big and your organization’s current methodology. small. Competition is fiercer than Data Analytics and Loan Loan docs need not be static Laser ever, and the regulatory environment Covenants Pro documents which only get has never been more burdensome; periodic attention. Rather, computer- however, deep data analysis can tease Covenants serve as loan performance aided monitoring and incentives can out insights that ultimately lead to bellwethers that can trigger corrective powerfully influence loan performance market advantages: early warning on action before a small problem becomes and set the stage for a more dynamic potential problem loans, faster loan a big one, but what covenants are most and customized agreement. For approvals, better risk-adjusted returns important? The practical reality is that example, a borrower can be required and more competitive pricing. the relative value of any particular to maintain a minimum cash balance

20 Pub. 9 2020 Issue 6 21 Michael Fielding, Partner Conclusion Centralizing data and introducing powerful analytics give an lenders immediate high-quality assessment a loanof portfolio. By aggregating data, can you immediately spot trends among similarly situated borrowers, and this allows rangewhole a for proactiveof steps that can be taken and monitor to manage potential loans.problem When truly integrated into the lending process, data analytics can transform the entire operational platform just… not when and to service to how lend, to but whom those loans and ramp vigilance. up Michael Fielding is a partner in the Food & Agribusiness Unit of the Kansas City officeof Husch Blackwell where he represents lenders dealing with distressed loans. He is one of just a few Kansas attorneys that are board-certified in Business Bankruptcy by the American Board of Certification [email protected] | 816.983.8353 [email protected] 4801 Main Street, Kansas City, MO 64112 | 816.983.8000 MO 64112 City, Kansas Main Street, 4801 How Are Fees Used? Fees How Are Incentives are an important part the of external marketing loans of and just not a concern the on internal sales side. The wants and desires borrowers, of when aggregated, reveal important information price to and how about structure loans. Questionnaires should be optimized to capture that data and then be processed in aid to sucha way analysis. Social media, too, can be analyzed develop to a better understanding a borrower’s of likely tendencies. Companies are already connectinghard work at social media activity to creditworthiness, with one executive touting that his company “has uncovered that social media has predictive value in assessing the credit risk a business.” of loanportfolios change if incentives were (rewarding,different risk-adjusted say, return versus volume)? mere Even before COVID-19, many businesses were experiencing declining financial metrics, experiencing were businesses many COVID-19, before Even counsels not helped. Husch Blackwell with which the pandemic has a circumstance tackle to lines of business numerous lenders across and agricultural commercial all points at decades of legal experience bear loans, bringing to of troubled portfolios cycle. of the credit Business is no longer usual. is our approach. Neither Arizona | California | Colorado | Illinois | Missouri | Nebraska | Tennessee | Texas | Utah | Washington, DC | Wisconsin DC | Utah | Washington, | Texas | Tennessee | Nebraska | Illinois | Missouri | Colorado | California Arizona huschblackwell.com Advanced data analytics can resolve help age-old quandaries. example, For do simply calculateyou the cost your of loan andadd margin, wholly you do or market on rely benchmarks? Both their have approaches own benefits and detriments, which but is better from one situation another? to Additionally, how organizationaldo incentives impact the data are might you generating? How Establishing the Right Right the Establishing and Practices Incentives with the all at lender times which would be sufficient service to the period some time. for debt of If the slips theborrower below minimum amount, additional penalties or interest charges could be imposed. if the maintains borrower Conversely, the minimum amount, the interest rate could be adjusted downward in the next quarter reward to the borrower for its compliant behavior. Embrace New Distribution Channels; Expand Your Reach

By Chris Cox, Chief Operations Officer, Apiture

usinesses of all types use 1. Enabling discovery of seller products; banks who can invest significantly in third-party platforms technology but can’t provide hands-on, 2. Enabling distribution of seller products; to enable the discovery local — or regional — focused relationship and and distribution of their management and customer service. By products. Small businesses 3. Attaching platform-specific value-add participating in current and future bank- use platforms like Amazon and eBay to services to seller products. focused platforms, community banks can Bsource customers and sell their products. Enabling Discovery of Seller reduce technology spending and focus App developers use the Google and Apple Products on what they do best, namely building app stores to promote and distribute customer relationships. 2 their apps. Restaurants utilize DoorDash Community banks should be looking for Platforms supporting payment products, and Uber Eats to attract customers and similar opportunities to take advantage of loan products, and deposit products deliver their food. Artists use Spotify non-bank platforms to expand their reach. and Apple Music to promote and enable The promise is that community banks can exist today and will continue to evolve. streaming of their music. 1 leverage the digital prowess of platform Embracing the potential of these platforms companies to attract and onboard new requires banks to have technology that In all of these examples, third-party customers. Then, once onboarded, serve enables internal bank processes to mesh platforms help sellers expand their markets these new customers with the superior with the customer-facing experiences by exposing them to a larger group of customer service that community banks that third-party platforms expose. It also consumers than they would otherwise be and credit unions can uniquely offer. This requires bank executives to change the able to access. These platforms support hybrid model gives community banks a way they think about bank products and sellers in three ways: powerful competitive response to big-box customer relationships.

22 Pub. 9 2020 Issue 6 23 continued on page 24 An API-based digital account opening APIssolution; are necessary allow to account opening processes fit to into userthe experience. platform provider’s needs The solution flexibleto enough financial accommodate to institution- specific compliance-related workflows. System architecture that ensures new customers and accounts created via third-party platforms are all to propagated relevant internal bank systems, including the core, the servicing platform (digital banking the customerplatform), relationship management system, (CRM) and any fraud monitoring systems; this can be simplifiedby ensuring the digital account opening interacts solution withproperly the financial institution’s existing core. Requirements of a third-party distribution In all the of cases described above, community bank and credit union participation in third-party distribution platforms require the following: •  •  Attaching Platform-SpecificAttaching Value-AddSeller Services to Products Different typesof product- deposit centric platforms will will Some emerge. be national in scope and geared toward the general consumer (think FinTech looking offer to new capabilities that require an underlying deposit will Some account). benational in scope geared but toward a specific consumer segment (think wedding planningsolutions). college or saving willSome be local in scope and geared toward small businesses (think practice management software or POS systems). The key identifyto is use cases where there is an intersection between activity a platformon and the a new need for deposit product. Third-party platforms that support deposit products are less mature than payment and loan platforms may but therepresent biggest future opportunity forcommunity banks. Bankrate.com and are examples NerdWallet current of deposit product-centric platforms. They build awareness deposit products for allowingby consumers search to across banks the for most attractive offerings. allow theyBut consumers don’t open to new accounts otherwise or access bank services. In other words, they the cover marketing aspect, the not distribution but aspect a modern of digital distribution platform. This gap can be addressed with the application bank-owned of digital account opening solutions. Sourcing deposits low-cost through third-party platforms could become the of one most effective enablers of a community bank’s growth strategy. Acquiring homegrown deposits through branches is comfortable constrained and by expensive but Buyinggeography. deposits from firmsplacement is quick, costly. but together third-partyTying distribution platforms with modern digital deposit account opening creates solutions attractivea new, path deposit to growth community for banks. The promise is that community bankers can focus growing on business loan portfolios in local markets and let technology drive deposit growth. And, community bankers can focus on growing business with newly acquired deposit accountholders via personal relationships and exceptional customer service. This will become mainstream as banks the adopt necessary enabling technology and explore new partnership models, especially with FinTechs. Deposit PartnersDeposit and Platforms 3 Enabling Distribution of Seller of Seller Distribution Enabling Products Third-party platforms that support loan products are relatively mature and available. Examples include LendingTree, Credible, even car or dealer management systems that tie in bank financingauto for loans. Theseplatforms allow consumersto create new relationships and open loans. only loanTypically, products that rely standardizedon underwriting rules and readily available consumer data fit these third-party platforms. More complex small business loans, which are the sweet community spot for banks, are not readily supported the on prevalent loan distribution platforms in the market today. theyBut will be supported eventually as technology evolves intelligent, enable to creditautomated decisioning and application underwriting of rules. Mobile payment apps are paymentMobile apps the most visible examples of third-party platforms that community banks can use. Examples Google and Pay PayPal. Pay, include Apple Theseplatforms providenew a distribution channel bank-issued for credit and debit cards, making them available a mobile on device e-commerce in-app, for and They purchases. point-of-sale physical also expand the utility card of products with app-provided services like enhanced transaction security and electronic receipts. Community banks and credit unions looking maximize to interchange revenue need ensure to their cards can be used in these as apps e-commerce and in-app continuespayment volume grow. to a financialTypically, cardinstitution’s processor can all do the required of work maketo the financial cardinstitution’s available in third-party mobile payment apps. While current do payment apps necessarilynot users enable create to new bank relationships, future see may apps the facilitation card of application and account opening processes within the app user experience. Digital banking is the solution layer that sits between the bank or credit union’s internal systems & processes and its customers.

continued from page 23

• A partner who can help identify and requires a new mindset. Community Modern digital banking providers are a facilitate partnerships with relevant banks and credit unions historically good place to start looking for support. third-party platform providers. own and operate their own end-to- Digital banking is the solution layer that end distribution channels. Consumers sits between the bank or credit union’s • A compliance team that is willing to today acquire deposit accounts through internal systems and processes and its work with the business to ensure that channels that are fully controlled by customers. Digital banking providers new partnerships and supporting have already done all of the connectivity technology are developed in a way that the bank or credit union, traditionally work required to create a holistic does introduce unacceptable financial the branch. Only in recent years have banking experience for customers, tying or compliance risk. 4 financial institutions opened up to the together core, bill pay, card payments, idea that new accounts can be opened statements, fraud management and Community banks and credit unions, through digital channels, with no financial management solutions. But, of course, need to consider if deposit requirement for in-person interaction not all digital banking solutions can accounts sourced through third-party between the customer and the banker. be easily extended into third-party platforms are classified as brokered But even new digital account opening deposits. Proposed FDIC changes user interfaces. Digital banking and solutions are typically contained within to brokered deposit rules may ease the “presentation layer” have become bank-owned digital channels (i.e., concerns here, especially if banks synonymous over the years because of the the bank’s own website). Opening up structure partnerships with platform architectural generation when solutions to third-party platforms means that providers such that the bank creates and were first created. But this is changing. other companies will control the initial maintains a direct relationship with the Well-architected modern digital banking experience the consumer has with new deposit account holder. The ABA, solutions can point at any presentation among others, has suggested in formal the financial institution. This doesn’t layer, including those provided by a third comments to the FDIC that rule changes mean the bank can stop providing party. This is done through APIs. The could go even further to facilitate more great products or great service once the solution has to be architected such that modern methods of deposit gathering. customer relationship is established. The business logic (rules that define what a bank must continue to have its own great customer can do online or in mobile) is Transitioning From In-House servicing experience (online and mobile separated from the presentation layer to Partnership banking). But it is just as important to (website or mobile app). 6 Beyond regulatory concerns, community have the technology that allows bank The Ecosystem Approach financial institution executives need to services to fit into a user experience that acknowledge and embrace the idea that is created by a different company. This is Technology architecture, however, technology-driven customer acquisition the future. 5 should not be the only consideration

24 Pub. 9 2020 Issue 6 25 https://apiture.com/resources/with-great-ach- comes-great-responsibility/ https://apiture.com/resources/wearables-watch- new-customer-relationship/ https://apiture.com/p2p-payments/ https://www.forbes.com/sites/ danielwebber/2020/07/30/how-payments- fintech-is-using-banking-as-a-service-to-drive- growth/#658722fe4b9b https://apiture.com/security-and-compliance/ data-protection-laws/ https://apiture.com/xpress/xpress-mobile- banking/ https://apiture.com/apiture-iq-targeted- marketing/  https://apiture.com/multi-touch-support/   https://apiture.com/core-connectors/ 1 currently serve hundredsof banks and credit unions across the U.S. https://apiture.com/about-apiture/ https://apiture.com/ Notes 2 3 4 5 6    https://apiture.com/xpress/xpress-business- banking/ Platform banking is the future and those community banks and credit unions that embrace this future earlier stand the best chance of growing, or indeed surviving, as the next generation of bank customers emerges. Chris Cox is the Chief Operating Officerat Apiture and oversees all aspects of business operations. Chris has more than 20 years of experience in banking, payments, mobile commerce, product innovation and technology strategy. Apiture is a digital banking providerwith a vision to create a better digital experience solution for financial institutions of all sizes. They will differentiate growth banks from non-growth banks is discovery and onboarding. does a potential How “digital native” customer find bankthe and start a business relationship? Third- party distribution platforms are part of the answer. Like not, deposit or it and loan products arecommodities. Which means they only have a limited number of differentiatingattributes that consumers care about: maybe only interest rate and associated fees. Community banks and credit unions can of add a layer differentiation via great customer service and digital). (in-person All theseof factors will continue be to important, the but next frontier that when choosing a partner can who thehelp bank engage with platform providers. A community bank needs a partner with the sophistication and industry connectivity broker help to relationships with relevant platform partners. Bank execs should look partnersfor are who already part of platform ecosystems and push them to thehelp bank navigate. Trying to Market in a Pandemic? See What the Experts Say

By Neal Reynolds, President, BankMarketingCenter.com

hat budget is the first to get slashed Because I think I can help. Bill goes on to say: “New marketing in an economic downturn? As we technology can bring efficiency, which helps with budgets, all know, it’s marketing. As a former but you can’t just snap your fingers to get there. It requires ad agency guy, I have lived through investment in software and talent.” many a downturn. We always knew that when times started to get tough, we were the first to lose I couldn’t agree more. Wour jobs. And, when times began to improve, we were always While a “new marketing technology” deficit is one of them, the last to return to work. There’s an old agency metaphor for there are a handful of issues banks face when it comes to spending money in a downturn. We said it was “like shooting marketing in today’s economic turmoil. The Financial at ducks that aren’t there.” Well, right now, a lot of banks are Brand interviewed Chandramouli Venkatesan, market looking to save their No. 2 Steel for another day. development executive in Capgemini’s Financial Services and But, perhaps they’re not ready to give up entirely on bagging a Capital Markets, who pointed out some of those additional few. I found Bill Streeter’s recent post on The Financial Brand1 issues. “Multiple touchpoints to execute a campaign, lack both informative and, well, a bit encouraging, despite the fact of standardization of campaign components and manual handling of data should be solved by a marketing resource that the challenge he addresses is that of “pinched budgets plus management solution,” he said. “The problem is that many of tougher competition.” these software tools are out of date.” He goes on to state that Why do I find it encouraging when we’re talking about an talent is a tougher challenge. “To have an agile marketing industry being in somewhat of an “unenviable position?” team, an institution needs a blend of expertise in digital

26 Pub. 9 2020 Issue 6 27 About Bank Marketing Center Here at BankMarketingCenter. com, our goal is to help you with that vital, topical and compelling communication with customers, messaging https://thefinancialbrand.com/102640/covid- 1 that will help you build trust, relationships and, with them, your brand. Messaging that you can customize to meet your needs in just minutes. viewTo our marketing creative, both print bankmarketingcenter.com. visit digital, and you canOr, contact me directly by phone at 528-6688 (678) or email at nreynolds@ bankmarketingcenter.com. As always, I would love to hear your thoughts on this subject. pandemic-bank-marketing-innovation-digital- channels/ talent, skills and mindset … and that most financial institutions will be better advised partner to with specialty organizations provide to the needed skills,” I said myself, to is he exactly right. And that been trying is what we’ve do to withbankmarketingcenter.com. If ever there a time were when you should be making use every of marketing communication your tool at disposal and being as efficient processabout the as possible, this is it. As a financial institution, a trusted institution, you must keep your customers abreast of important as economic developments, well as the products and services that canyou help to offer navigatethem those And needdevelopments. use to you every available tactic so: Social do to posting, advertising, newsletters, email, webinars and direct mail. While there ducks be may fewer shoot to at, mean that duck stop you doesn’t meanshunting It that entirely. just you get better to have it. at making making be you should a time when were there If ever tool at communication use of every marketing process and being as efficientyour disposal about the is it. this as possible, And this is I think where can we help. familiar those aren’t who For you of with bankmarketingcenter.com, we currently with work 20 state bankers associations and 300 over banks, helping them address the challenges faced by their marketing teams. Our partner banks access have several to thousand professionally designed — created layouts agencyby trained, financial services industry professionals — that range from social media messaging, banner ads and in-branch signage, print to and radio advertising. With unlimited access millions to Getty of Images, as well as the ability customize to copy and colors, banks are personalize to able these marketing materials quickly and savingeasily, valuable time and money. When say that to on Jim “it went is becoming increasingly challenging to moderndeploy marketing with legacy marketing technology, data, marketing and says creative,” Venkatesan. He acknowledges that external will help likely be needed. T To Scan or Not to Scan, That Is No Longer the Question!

By Bret Mills, CoNetrix

ell, maybe it possible, and a good administrative scan in Group Policy, how do I know if it has used to be the will help you reach this goal. propagated to all the systems with the question, but vulnerability? There are multiple ways to Now that I have all this information, it is no longer verify different vulnerabilities have been what do I do? REMEDIATE and a question to remediated, but the best way is to rerun a DOCUMENT. Yes, those two words be asked. Scanning your network scan against the system. you always love to hear that strike fear Wis an essential part of your security in the hearts of man. Most, if not all, So how often do I need to run this protocol to ensure that customer scanning software will rate the criticality scan? The frequency of the scan will be information is secured. So, since of each vulnerability that is found on determined by your risk assessment and I need to scan my systems for the network. Always start with the most the size and complexity of your system. vulnerabilities, where do I start? critical and work your way down the Sound familiar? Sounds like a statement There are many good products on the list. Findings will require a knowledge that may come from your regulator market to test for system vulnerabilities. of the systems you are running and an or through guidance, doesn’t it? If my The best method is to review different understanding of how to remediate the system is not that complex, I would products and decide which product will vulnerability. If you do not have the not have to scan frequently, but if it is take care of your needs. Not only does expertise to take care of these issues, complex, open to the outside world, and the product need to give you information a network vendor will need to be used includes multiple users, I would need to on what vulnerabilities exist on your at this point. Some findings require scan more frequently. network, but it also needs to provide changes in Active Directory, registry settings or Group Policy. When changing New vulnerabilities are being developed you with reporting that is easy for you all the time, and a system that is scanned to read and understand. A report is only these settings, making the wrong move can cause tremendous damage to your and is secure one day may be the target of good if you can take the information and a new vulnerability the next day. When make decisions on how to remediate the network. If one of these settings need to be changed, it is always a good practice you are between scans, be sure and keep findings that it observes. to change the setting for one computer yourself aware of any new vulnerabilities that may arise, especially those You may be thinking, I do not have the and test the change to ensure it does not vulnerabilities that target your systems. expertise to conduct these scans and read cause issues with existing applications. Keep up to date by receiving emails from the reports, so what do I do now? This is Sometimes settings cannot be changed publications, vendors and regulators, and where you will have to rely on a network due to the harm it causes in the system. attending webinars and seminars that vendor or third-party to conduct your If this is the case, document, document, deal with information technology. Sound scanning. You also need to ensure you document. Documentation needs to be like a full-time job? It is! have a contract and have conducted completed that reveals the issue, when your due diligence with this vendor you will resolve the issue, how the issue So, to scan or not to scan can never be because they will need an administrative was resolved, and then verification that the question again. account on your network to perform an the issue was resolved. administrative vulnerability scan. User accounts can be used to scan the systems Verification of the resolution is a critical Bret Mills has 22 years of experience in information technology, working 18 years for a community but will not give you a full representation part of the process. If a change is made in bank, and is currently employed as an audit and of all your vulnerabilities. The goal is Active Directory, how do I know that the security consultant for CoNetrix. Bret has his to mitigate as many vulnerabilities as change has happened? If there is a change Security+, CISA and CISSP certifications.

28 Pub. 9 2020 Issue 6 29 . Visualize your risk exposure Assign responsibility and various users of access to levels unlimited vendor records and Store related files Access vendor contact information mobile app Tandem on-the-go with the Add as many user and admin accounts as needed Identify missing or incomplete vendor data with reports Set up email reminders for contract and document dates of tasks the status Create and monitor users assigned to , vendors Tandem is a subsidiary companies a family of technology of CoNetrix, Tandem Watch a demo at tandem.app/no-spreadsheets Watch s eadsheet anage anage M not spr not Manage and store information pertainingManage and store vendors, to including documents and responsibility. the collection of due diligence Automate documentation. the calendar view. through events Track Conduct and report reviews. on vendor Instead of working in complicated spreadsheets and Instead of working in complicated spreadsheets Tandem of network folders, a variety documents across a simplified and streamlined Vendor Management provides interface program. for organizing your vendor management With software designed for banking compliance, you can: and consulting services makes BCP integration Available third-party less of a burden. management even Manage your third-party risk with Tandem Kansas Bankers Association Announces Its Endorsement of Shred-it KBA members can now save 30% on information destruction services; 35% on community shred days

he Kansas Bankers with seeing confidential documents • Bar code technology to manage Association is pleased destroyed in-person, Shred-it offers an material tracking to announce its on-site, mobile paper shredding service endorsement of Shred- throughout the contiguous United States. • Certificate of destruction with each it for their information service — your proof of compliance destruction services. As the world leader Exclusive Benefits for Association Members • 100% secure recycling of all material free Tin information security, Shred-it offers of charge an integrated suite of services designed to • Significant savings on Shred-it services, protect sensitive information. including: • Annual environmental certificate — a30% discount on document destruction your impact on nature “KBA is proud to partner with Shred-it to bring our members savings on this a30% discount on hard-drive and • Complimentary workplace essential service,” said Brenda Unruh, media destruction privacy policies SVP-Education & Conferences, Member a35% discount for Community Get Started Services. “As the trusted keepers of Shred Days your customer’s confidential financial To setup or inquire about Shred-it information, banks must ensure that • Dedicated customer care contact, a service, please fill out the contact form protecting against confidential data national accounts billing specialist and at www.shredit.com/national-accounts/ theft and other data breaches are kept a local operational support state-bankers-association-program. priority. Shred-it, your trusted partner, • On-site mobile shredding services does just that.” If you are already a Shred-it available throughout the contiguous U.S. customer and would like to access With Shred-it secure document destruction, the Association’s discounts, you may • Secure, locked containers in your all documents are destroyed and recycled, request to join this program after your branch and offices with free keys for safely and securely. Shred-it media destruc- current contract has passed 50% of its ease of retrieval tion services destroy a wide range of digital term. Simply contact sitretgpochange@ and electronic media such as hard-drives, • State-of-the-art guaranteed chain of stericycle.com with your account magnetic backup tapes, DVDs and USBs. custody at every touchpoint information and request to join the state bankers association program. For customers who prefer on-site shredding • Customer portal to request service services and the peace of mind that comes information and reports

30 Pub. 9 2020 Issue 6 31 BRIEFLY IN KANSAS BANKING

Bank of the Flint Hills appointed marketing collateral, social media, Faulkner earlier this month. newsletters, The Kansas Banker magazine, financial literacy and advocacy. “Dwight has proven his ability to be a “I am ecstatic to have Bree join the great choice for this position and I look team here at the KBA. Her talent and forward to his continued and expanded contagious, positive attitude is a perfect leadership,” said Lance White, President fit,” said Mary Taylor, SVP – Marketing & and CEO of Bank of the Flint Hills. Communications. “Dwight has an excellent loan team to support him, and he is always focused Bree is a recent graduate from Kansas State on ways the bank can improve. I look University with a B.S. in Communications. forward to watching Dwight positively She worked as a communications intern impact the bank for many years to come.” this summer and fall for the Kansas Frank York Set to Retire Electric Cooperatives (KEC) in Topeka. Faulker previously served as Vice At KEC, Bree worked on the monthly President of commercial lending. The After serving nearly 45 years at print publication of the Kansas Country senior lender position was most recently Stockgrowers State Bank in Ashland, Living magazine and helped with many held by Mr. Dennis Hadley, who passed Frank York has decided to retire at the other various projects. She was part of the away unexpectedly in August 2020. end of the year. Frank has dedicated his K-State journalism student groups like entire banking career to Stockgrowers, “What excites me most about this the Collegian, Manhappenin’ magazine beginning on March 15, 1976. Frank has new role is being blessed with great and JMC Update magazine. Bree is very had an outstanding career, serving as staff,” Faulkner said. “Their passion for excited and honored to be a part of the executive vice president since 2007. One helping customers reach their goals and KBA family. of the many highlights happened earlier ambitions through integrity and hard Former Emprise Bank CEO this year when he was recognized as one of work is our motto. It’s motivating to be Coming Out of Retirement the recipients of the Pioneer Award, which part of a team like this.” for a Different Bank is given annually by Kansas Ag Bankers division of the KBA. Frank will be missed On top of having his MBA from Baker Former Emprise greatly at the bank and by his customers, University, Faulkner is studying in the Bank president and but is wished well by all of his associates. executive development institute two-year CEO Tom Page is Frank is married to Sue and they have nine program at the Colorado Graduate School returning to banking grandchildren, which should keep them of Banking. after a two-year plenty busy in retirement. KBA Hires Communications retirement, this time with Chanute-based Bank of the Flint Hills and Marketing Coordinator Announces New Senior Community National Lender KBA is excited to Bank & Trust. announce Brianna Page was named a senior advisor for Dwight Faulkner is (Bree) Magee as CNB&T, which has 38 locations in the new senior vice the newest team Kansas, Missouri and Oklahoma. president and senior member filling Kansas locations include El Dorado, lender for Bank of the newly created Augusta, Newton and Winfield. the Flint Hills. Communications and Marketing “CNB&T is a company built on a The board of Coordinator position. She started classic community banking format,” directors of the this month and will be assisting with Page said in a statement. “My passion

32 Pub. 9 2020 Issue 6 33 March 21, 1922 – 1922 March 21, 12,Nov. 2020 Nation Meyer, age 98, a life- of resident long Hutchinson, died at home surrounded Nation Meyer Nation 12, familyby 2020. was He Nov. on 1922, inborn Kansas March 21, City, Missouri, the Edward of son William was andMeyer He Eula Meyer. Nation graduate Hutchinson of a 1939 High School, attended the University Kansas of until late 1942, and was a member of Beta ThetaFraternity. At Pi that time,he joined the States United Navy as a naval aviator and served until January 1946, returnedwhen he Hutchinson. to In 1946, began he his careerFirst The at National Bank Hutchinson. of In 1960, washe the named of bank. president retired asHe senior chairman, in 2016, afteryears70 of serviceto bank.the During those years, was he associated with numerous civic and commercial enterprises. Among them, was he a Datafounder of Center Inc. also He served as a founding director the of following organizations:Hutchinson The Prairie Club, Town Dunes Country Club, V. Hutchinson The The Delos Art Center, Smith Senior Citizens Foundation, Fox Théâtre and Reno the County Historical Society. served He as the of President Hutchinson Chamber Commerce of in was Nation 1954. also instrumental in the the of merger two local hospitals form to Hutchinson Regional Hospital. his For entire life has he been an advocate the for Hutchinson community, especially the downtown area. Liaison Admiral for Burke, Chief of Naval Operations. married he 1959 SallyOn Dec. 27, McClure (“wifey”), Kirksville, of Missouri. following The summerreturnedhe to MU taught he where accounting and earned his degree. master’s it was Then move a Kansasto with City Arthur as a CPA Andersen & Co. While living in Kansas their Jackson,City, Ford son, Joe was born. His grandfather and great grandfather bothwere bankers in Maryville, Missouri, so banking called and in the1963 family Maryville, to moved became he where the vice of president Bank the of and president State Citizens Maryville Lions and Club Jaycees. In 1966, purchased he the First National Bank of Columbus and moved Columbus,to Kansas. remained He and board president CEO, chair until selling In the he 1982, bank in 2011. purchased Stanley Bank, Overland of Park, Kansas, and traveled back and forth running both banks. remained He and board president CEO, chair at Stanley Bank until his death. wasJoe known his for brilliant mind and business his ability. leadership, Under Stanley Bank was named the as of one “Three Best Banks in Kansas City”by the Kansas 1991. 10, City Star Nov. on Along with his brilliant mind was an incredible ethic, work which managed he keepto until the Oct. very end. On Friday, 9th, conducted he his bank board meeting the to and emergency went Saint at room Lukes South Hospital He later that day. passed Oct. the away evening Monday, of 12th. was Since Monday a bank he holiday, did miss not work. a day of

July 1934- 24, Oct.12, 2020 was Jackson Joe born in Maryville, Missouri, Joseph to Jackson, and Jr F. (Joe) BakerHelen Jackson. grewHe there, up In 1956 he graduated he In 1956 from the University Missouri of to and went Navy OCS in Newport, RI. Upon receiving his commission as an officer, washe assigned the to Naval Office of Intelligence in was the It an Pentagon. interesting time as Naval was he the U-2 where he played basketball played he where and ran track at both Maryville High and then Wentworth Military in Lexington, Academy, Missouri. enrolled he the at In University 1952 of Missouri being enjoyed rush he where chairman his for fraternity, Beta Theta Pi. Joseph “Joe” Jackson IV Jackson Joseph “Joe” In Memory Page was Emprise at Bank 23 years beginningbefore He retirement in 2018. has a background in Kansas community banking, including of as a role president the community banking division the at Bankformer IV. Founded in Chanute in 1987, CNB&TFounded in Chanute in 1987, says has it grown than more 80% in the past six years. billion With in $1.6 assets, the of isit one 10-largest community Kansas. in banks is community banking. I dedicated many years career my of community to banking, seeing as I enjoy local families businesses and communities, grow and thrive. Community banks are an integral part that.” of THE POWER OF PARTNERSHIP WORKING TOGETHER FOR YOUR HOMEBUYING CUSTOMERS For nearly 19 years, Mortgage Investment Services Corporation (MISC) has been • MISC serves 240 Community Banks in OK, KS, MO & CO a strong partner with Kansas community banks. MISC’s only purpose is to assist • Fannie Mae Approved Seller/Servicer. community banks to make home loans for their customers. We combine our high-tech features with your face-to-face customer service. Your bank and your customers benefit from this working partnership. Call Andrew Holtgraves today to unlock the • No cost to sign up. No risk to give us a try. Power of Partnership! • No software or hardware investment by your bank Andrew: (913) 390-1010 ext. 1019 • Free training and ongoing support for your loan officers [email protected] • Wide range of fixed rate loan products • Free marketing support to attract new families to become bank customers

25TH ANNUAL BANK TECHNOLOGY & 2021 Exhibitor Presentation Opportunities OPERATIONS CONFERENCE As in previous years, we would like to provide our 2021 exhibitors the opportunity to submit a proposal to conduct a concurrent session at the conference. The KBA Technology Committee will be selecting exhibitors to fill several of these slots. Some of the topics of interest to the committee include: VIRTUAL corporate account takeover; how to define your digital strategies, transforming from paper-based to digital, online applications.

If you are interested in presenting a breakout session, please complete and return the form below no later than November 5 along with your exhibitor application and payment. Only presenters who have submitted their exhibit application will be considered, with selections being made by the middle part of November.

Exhibitor Company Name ______Address ______City ______St_____Zip______FEBRUARY 8-9 Contact Person ______Email ______

Address ______City ______St____ Zip______

Telephone Number ______Fax

Presenter Name ______Email ______Title of Proposed Presentation ______

______

Synopsis of Proposed Presentation ______

______The mission for the Trust Division of the Kansas Bankers Target Audience ______Association is to identify and focus on issues that affect the Trust Division, its members, and its clients in order to enhance and Kansas Bankers Association promote the trust industry in Kansas by providing timely information to P.O. Box 4407 its members. Topeka, KS 66604 Phone 7852323444, ext. 306 FAX 7852728392 Email Becky Milne: [email protected]

EDUCATION & CONFERENCES | 785.232.3444 | WWW.KSBANKERS.COM

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