The Kansas Banker, April 2010

The

The magazine of the Kansas Bankers Associationwww.ksbankers.com

Apr i l 2010

•BLOK learns ins-and-outs of Fed pg. 16•Tri-state Conference builds leadership pg. 8

KANSAS BANKER

Volume 100/Number 4The mission statement of the Kansas Bankers Association is: To support and assist Kansas

banks and Kansas bankers.

ChairmanJeannette Richardson, Farmers National Bank,

Hutchinson

Past ChairmanDavid Herndon, First State Bank of Kansas City,

Kansas City

Chairman-ElectJohn E. Boyer IV, KANZA Bank, Kingman

TreasurerJohn Lehman, First National Bank, Girard

Immediate Past ChairmanSteve McSpadden, Union State Bank, Winfi eld

Term Expires August 2010Sue Hart, Great Western Bank, Shawnee Mission

Joe Smith, Farmers National Bank of Kansas, WalnutRoger Kepley, INTRUST Bank, Wichita

Ted Starr, Citizens State Bank & Trust Co., Hiawatha

Michael Mense, State Bank, HoxieDave Long, First National Bank, Cimarron

Term Expires August 2011Greg Sims, Town & Country Bank, Leawood

Michael Ewy, Community State Bank, CoffeyvillePaul Boeding, Baileyville State Bank, Seneca

Kyle Russell, Versus Bank, N.A., DerbyDavid Brownback, Citizens State Bank, Ellsworth

Kelly Mason, First National Bank, Pratt

Term Expires August 2012Matt Keller, Gardner Bank, Gardner

John Danler, Girard National Bank, Yates CenterJulie Hower, Farmers & Drovers Bank,Council GroveCalvin Coady, Bankers’ Bank of Kansas, NA, Wichita

Robin LacKamp, Peoples Exchange Bank, Belleville

Scott Chipman, Fidelity State Bank & Trust Company, Dodge City

At Large Representatives1 Yr.: Tom McGavaran, State Bank of Delphos,

Delphos2 Yr.: Frank Carson III, Carson Bank, Mulvane

3 Yr.: Kendal Kay, Stockgrowers State Bank, Ashland

Trust Division PresidentMike Sears, Great Plains Trust Co., Shawnee Mission

Ag Bankers Division PresidentDan Heinz, INTRUST Bank, Wichita

YBOK Division PresidentAlex Williams, The Halstead Bank, Halstead

Kansas Bankers Association Board of Directors and

Voting Members

2 THE KANSAS BANKER Apr i l 2010

The Kansas Banker (ISSN 0028-9880) is published monthly for $25 per year plus applicable tax by Kansas Bankers Services, Inc., a wholly owned subsidiary of the Kansas Bankers Association. Periodicals’ postage paid at Topeka and at additional mailing offi ces. With the exception of offi cial Association announce-ments, the Kansas Bankers Association disclaims responsibility for opinions expressed and statements

made in articles or advertisements published in The Kansas Banker. POSTMASTER: Send address changes to P.O. Box 4407, Topeka, KS 66604-0407

Eric Jorgensen, [email protected]

CONTENTSPicturing Kansaspg. 3

Stimulating the economypg. 10

Seven strategic planning mistakespg. 13

Meet a bank—Centera Bankpg. 24

Sara Blubaugh, Advertising Manager [email protected]

Kansas Bankers Association 610 S.W. Corporate View Topeka, KS 66615.

785-232-3444. Fax 785-232-3484.

[email protected].

Send mail to: P.O. Box 4407 Topeka, KS 66604-0407.

KBA Leaders Ledger—Updatespg. 4

Farm Credit Watchpg. 11Associate Member Directorypg. 12

Washington Updatepg. 18

BLOK heads to the Fed, Board of Tradepg. 16

Security Offi cer’s Bywordpg. 19

Becoming a more effective board memberpg. 14

Briefl y—Updatespg. 5Tri-State and how to grow as a leaderpg. 8

Apr i l 2010 THE KANSAS BANKER 3

P ICTUR ING KANSASYOUR PHOTOS FROM AROUND KANSAS CONTESTCONTEST

How do you picture Kansas? We want your snapshots of Kansas and Kansas events, art, curiosities, weather and more. Pictures to be sumbitted for the 2011 calendar need to be taken July 1, 2009-June 30, 2010. E-mail high resolution digital fi les (300 PPI at 4” x 6” in TIFF or JPEG format) to [email protected]. We’ll also check our old-fashioned mailbox for prints: P.O. Box 4407, Topeka, KS 66604-0407.

To order an offi cial Kansas Bankers Asso-ciation calendar, ‘KBA Scenes of Kansas,’ e-mail Sara Blubaugh at [email protected].

Reach for the skyThese fl owers in a Kansas State University fl ower garden stretch for the Midwestern sun. This photo, by Shari Brown of Landmark National Bank, Manhattan, depicts a typical Kansas spring and summer day under the bright sun.

Lori A. Lundy | Senior Vice PresidentProsperity Bank | Victoria, Texas

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someone is out there really working for us.”

For more information about SHAZAM, visit us at

www.shazam.net or call (800) 537-5427.


KBA LEADERS LEDGERDIVISION LEADER NEWS UPDATESUPDATES

State lawmakers have returned home for a brief respite following adjournment of the regular State Legislative Session. While a number of high-profi le issues, including adoption of a state-wide smoking ban and a razor-thin vote that rejected a repeal of the state’s death penalty law, created a bit of fan-fare, the heavy lifting is waiting for the state lawmakers return April 28. Lawmak-ers also spent time debating an offi cial state grass (Little Bluestem) and a even a bill restricting activity at gentlemen’s clubs, but

even those heavy-weight issues pale in comparison to the bellweth-er issue for 2010—the state budget. A $400-plus million hole must be fi lled with either revenue enhancements, or spending cuts, or a combination of both be-fore lawmakers can close the books on the 2010 State Legislative Session. Increases in sales taxes, cigarette/liquor taxes and even a surcharge on income taxes are being touted to solve the budget dilemma facing lawmakers. While many House members, up for election this fall, would prefer spending cuts, it appears some level of revenue enhancements will be adopted to help fi ll the budget hole and enable lawmakers to return home once again.

With the onset of spring comes our Legal Up-date Seminar series. KBA will be conducting its annual Legal Update seminars the entire month of April, kicking off April 6, in Topeka and wrapping up in Parsons on April 28. This year’s program will include information on the new overdraft rules, FACT Act changes, Reg Z amendments, fl ood insurance, FASB accounting changes, SAFE mortgage registra-tion requirements, and everyone’s favorite topic—RESPA. An in-bank version of the Legal Update is also available. Contact me to

schedule your session, as dates are fi lling up. Speaking of the new overdraft rules, which take effect this summer, you will also want to mark your calendars for May 4. KBA Senior Vice President Terri Thomas will conduct a webinar on how banks should begin preparing for these sweeping changes. This is a program you won’t want to miss. KBA Educational Resources will soon announce a new partner-ship with Bankers Edge to provide self-study online training for KBA member institutions. We believe you will fi nd this to be an affordable solution to your online training needs. Watch for the announcement in the coming weeks.

Kansas Bankers Escrow Services, Inc. is up and running. If your bank has signed up for the services, you can now test the Web site or build real loans. Anytime you attempt to test the system by building a fictitious escrow, please enter the borrowers’ names as “Test 1” and “Test 2” so that KBES knows that you are not attempting to set up a real escrow account. If you have not received your bank’s log-on information by March 29, please

contact Vice President of Member Services Mike Norris or me. Because this is a new system, we expect there will be modifications needed. If you note improvements or changes that could be implemented to make the system run more efficiently, please contact Norris or me at the KBA. We will do our best to review suggestions and implement those that improve the process. The KBA appreciates the confidence you have placed in your association to provide this service to your institution and its customers.

Legal

State

Products and Services

Education

Department prepping to deliver more than a dozen legal updates

Doug Wareham

State legislature busy after break

Terri Thomas

Escrow service ready to go

Becky Tongish

Last fall, KBA Insurance began handling the administration and billing of the KBA life, disability and accidental death employee benefit plans. This change was made in order to increase the level of service provided to the participating banks, to provide online capabilities for both employers and employees, and to increase awareness of the KBA “brand,” which helps remind members they have ownership in the KBA employee benefit plans and they benefit from their par-

ticipation in all of the plans. With this change, participating banks are now able to re-ceive the monthly premium billings online and are able to take advantage of a convenient ACH payment option. An employee website is currently being developed that will allow employees to access a secure Web site to view the employee benefits they have as well as to have the ability to download the certificates of coverage for each of their benefits which outline the details of these important employee benefits. We believe this is a great benefit to your bank and we hope you will consider these additional KBA benefits. If you have any questions concerning these lines, we are always here to help, and we encourage you to contact Ed Griffith at [email protected] for more plan details.

KBA Insurance now runs life, disability and accidental death plans

Herb Iams

UPDATES

Three KBA bankers join Bankers’ Bank boardBankers’ Bank of Kansas has announced its board of directors for 2010, including three new directors. David Herndon, president and CEO of First State Bank of Kansas City, Kansas City; Kendal Kay, president and CEO of Stockgrowers State Bank, Ashland; and Leonard Wolfe, chairman of the board and president of United Bank & Trust, Marys-ville, join returning directors Craig Meader, CEO of First National Bank of Kansas, Waverly; and Ron Johnson, president of Community National Bank, Seneca, who will serve as chairman and vice chairman, respectively.

OSBC names Needham chairman of the boardJames Needham, president and chairman of the board, Troy State Bank, Troy, has been appointed to the Offi ce of the State Bank Commissioner’s board of directors by Gov-ernor Mark Parkinson, and was confi rmed by the Senate.

A graduate of Kansas State University and The Graduate School of Banking at the University of Wisconsin-Madison, Need-ham has been the leader at Troy State Bank since 1974. Among his roles as a director are approv-ing new charters and branches in the state.

R. Roger Moore, the former senior vice president and director of the former First National Bank & Trust Company, Parsons, died Feb. 26, in the emergency room at Labette Health, according to the Parsons Sun. He had been undergoing treatment for cancer. He was 70. Born in Lawrenceburg, Tenn., Moore went on to graduate from Labette Commu-nity College and Pittsburg State University. He also served six years in the U.S. Army Reserve. Moore joined the bank in 1967 and retired in December of 2005. He was a director on numerous boards in the Parsons area and enjoyed golf.


BR IEFLY

In fond memory...

SUNFLOWER STATE NEWS AND TRENDS UPDATESUPDATES

Citizens Bank of Kansas, Kingman, has hired Troy L. Olson as mortgage lender in Wichita. The bank has also promot-ed Vicki Goetz to cashier and Molly O’Shea to assistant vice president.

Farmers National Bank, Stafford, has promoted Doug Gray to executive vice president and Lucas Sawyer to vice president.

First Bank, Sterling, has hired Randy Cobb as market president in Lyons.

First National Bank of Hutchinson, Hutchinson, has hired Curtis Overton as executive vice president and manager of the First Wealth Man-agement Department.

First National Bank & Trust Co. of Leavenworth, Leavenworth has promoted Roxy Glasgow to assistant cashier and Kari Mason to assistant vice president.

Banks and Bankers

Kansas, Nebraska and Missouri bankers united in Kansas City, Mo., for the annual Tri-state Leadership & Human Resources Conference for guidance, advice

and updates on the state of the economy, the bank employee make-up, and what they can do to be better leaders in their banks and in their committees. The two-day conference began at the Federal Reserve Bank of Kansas City, where the bankers received a tour of the building, and also a presentation by Federal Reserve Bank of Kansas City President Tom Hoenig. Hoenig applauded the group for their commitment to educa-tion and the desire to enhance their leadership skills. During the discussion, Hoenig expressed optimism for continued economic improvement based on recent indicators. While fi elding numerous questions from the audience, he addressed the proposed Financial Consumer Protection Agency and the Federal Reserve’s potential role with such an agency. He also spoke in depth about the need to keep the Federal Reserve’s role in supervision unchanged. He argues bank supervision is one of the key ways that the Regional Federal Reserve Presidents assess current economic conditions in their regions. When it comes tothe workplace, employees work better when they’re happier, the same way contented cows give better milk, says Richard Hadden, a national speaker on business develop-ment. Hadden gave the group the “how to’s” of creating contented cows in the workplace: 1. Stop being ordinary. Extraordinary times call for extraordinary leadership. 2. Don’t let fear cause people to disengage. 3. Help people get their minds off their own worries by doing good for others with even more to worry about. 4. Make effective leadership skills and behavior a condi-

tion of employment for all managers. 5. Conduct employee surveys, and use them to direct your HR strategy. 6. Talk candidly about how the bank is doing, and always tell the truth.

Hadden continued to elaborate on his “contented cows” philosophy that described these employees as being commit-ted to your bank and your bank’s mission—enabled with the proper training, tools and systems—and cared about on both a professional and personal level. Terry Saber, whose article, “Survive and thrive; leadership’s importance” can be seen in the January issue of the The Kansas Banker, gave a passionate speech on how to be the best man-ager and leader possible. Saber told the audience of 100-plus that HR manager is the best job in the building, because you can cause real effect. To be a great HR manager, first you have to understand the environment you’re trying to battle within. “Many of us are asking, ‘When is this going to end,’” Saber says of the recession. “Some of us are starting to realize we’re never going to go back to the way it was.” Saber says in the current economy, banks nationwide can be divided into three categories: 1. Seizing the moment and doing well.


TR I - S TATEFeaturesFeaturesCONFERENCE RECAP

Attendees soak up leadership ideas

ti f l t f ll

After an address by Tom Hoenig, members at the Tri-stateConference’s fi rst day received a tour of the Federal Reserve Bank of Kansas City. Above, a group poses in the building’s top-fl oor board room.

Representatives from the graduate schools of bank-ing encourage the group to investi-gate and enroll in classes that could help them in their banks.

Features

2. Staying afloat, but not necessarily thriving.3. Working with the regulators.

If your bank is in that fi rst category, it is in a position to heed Saber’s next advice, which is to strengthen the two most important portfolios; capital and employees. Saber says most banks focus plenty of time on capital portfolio, which makes sense given that is the nature of banking. However, she says if your bank has a strong employee portfolio with hardworking, honest people, the capital portfolio will benefi t immensely. If your bank is in the second or third category, when the mo-ment is right, Saber says to strike fast to get the best employees you can, because it will be those employees who help the bank avoid future problems. Listen to most people discuss juggling the different generations and you’ll know it’s not something easily accomplished. Diane Barton, president, Performance Solutions, Inc., Atlanta, knows how to work, and how to show others how to work, in a business where some people understand postage and others understand Tweeting. The different generations have different goals, work differ-ently, and need to be managed differently. What’s important is not necessarily the age or work style of the employee, but capitalizing on their varying skills, and knowing their capacity for education. “The best employee to hire today is not the one who knows the most; it is the one most willing to learn,” Barton says. Leadership, especially in tough times, can never be underesti-mated. Brigadier General Robert E. Wheeler, commander, 509th Bomb Wing, Whiteman Air Force Base, Mo., has been in a leader-ship position much of his professional life. He’s a man who’s led his fellow pilots and soldiers in battle, in drills, and also in times of grief. Leadership, be it in the air or in a bank, is universal. The same techniques General Wheeler attained, he says, are perfect for

bankers looking to manage their business and employees through the recession. He also commended bankers, saying the United State’s economy is why he thinks the U.S. is the greatest country in the world. General Wheeler gave many points to consider as a leader. One was to not lose your temper unless you have to. He says we all feel that heat on the back of our necks when anger rises, but he sug-gests keeping it subdued unless a well-planned temper loss could benefi t you reaching your goals. He ended by telling the audience, “You never know when you’re going to make a difference.” Most days are unremarkable, but he says to be ready to lead every day, and one of those days you’ll make a signifi cant difference in someone’s life. During the second day, there were concurrent sessions for the bankers addressing a variety of subject matter, including per-formance management, human behavior, and employment law. Those were given by Saber and Barton, and also Denise K. Drake, Littler Mendelson, P.C.; and Angie Eilrich, senior vice president, First Bank Kansas, Salina.


SponsorsGraduate School of Banking at Colorado

The Graduate School of Banking at the University of Wisconsin-Madison

Commerce BankSpencer Fane Britt & Browne LLP

Applied Bank Solutions

TR I -STATE

Above: Brigadier General Robert E. Wheeler shares his military background with the group.

Above: Federal Reserve Bank of Kansas City President Tom Hoe-nig discusses the need to address Too Big to Fail.

Above: Richard Hadden (left) addresses the conference from the Federal Reserve. Diane Barton (right) breaks down generational communication during the conference’s second day.

Above: Terry Saber starts her address by telling the HR managers in the crowd they have the best job in the bank.


WYCKOFFOPINION AND ADVICE

Stimulating the economy

There are times you just want spring to arrive a little earlier than normal. I’m sick of this cold weather and need more sunshine. I did read where the global warming crowd is say-

ing the snow we have been driving on was caused by warm moist air resulting from carbon emissions which carried extra water vapor that turned into the snow which blanketed the country. Such reasoning makes me dizzy and I can’t keep up with that group as they fl ip fl op on whether it is snowing too much or snow-ing too little. I did need a little warming today, as I got my truck stuck early this morning, feeding cattle by wedging it between two massive mounds of frozen dirt and ‘stuff.’ I couldn’t repeat that feat again if I tried, but the feed lot is extremely rough, solid as a rock, but that frozen ‘stuff’ is also slick as ice. The good news, the truck is an old Dodge and not a Toyota with a sticky gas pedal. Cold weather is also behind the president’s home weatheriza-tion program. Remember, this is part of the massive stimulus bill to put America back to work. Five billion dollars have been allocated to weatherize 593,000 homes and put 87,000 people to work doing it. So far only 9,000 homes have been worked on, that would be about 10 people per house at a cost of $57,362 each! I wish this was just a joke and not fact.

I was happy to note that the U.S. Energy De-partment, running this effi cient pro-gram, is managed by Steven Chu. He, like the President, is a Nobel Prize winner. I’m sure glad we have such smart people tak-ing care of our tax dollars, because the simple minded folks living out here in the fl y-over zone would have just made a trip to the local hardware or building supply store, bought the material necessary to do the job and still had $57,000 left over. That probably would have more than paid off the mort-gage on the home being winterized. These people with Harvard and Berk-ley educations may

be really book smart but they can seem dumb as the frozen stuff in the feed lot when it comes to fi nances and common sense. It has been slow, but I’m starting to get the picture. Politicians in Washington just tell people what they want them to hear and do so as eloquently as possible using as much smoke and mirrors necessary for a good performance. All the while, they make sure that little ol’ Dorothy from Kansas pays no attention to that man behind the curtain. How else could we have spent a total of almost $25,000 per car under the cash for clunker program, and upwards of a quarter million dollars for each full time stimulus job created, along with $57,000 for weather stripping a house? Another sad note is that most of the full time “created” jobs being hyped as coming from stimulus spending are actually gov-ernment jobs. This makes these people life long burdens on the rest of our society, which will be paying for it with more borrowed money. I guess change can be expensive as well as disruptive.

“There is nothing as stupid as an educated man if you get him off the thing he was educated in. 90% of being smart is knowing what you’re dumb at.” —Will Rogers

I think the network news guys have fi nally succeeded in making sure I don’t watch their programs any more. I’m just tired of being told by a pompous self-serving group that the public and I aren’t smart enough to comprehend just how well the stimulus isn’t working. Lisa Myers of NBC News actually summed this up for me without even knowing it when she said, “Critics also have ridiculed some projects as wasteful. $1.6 million for free water taxi rides, a million dollars to improve security on dinner cruises in eight cities and studies about how honeybees learn and the sex drive of rats on hard drugs. The President acknowledged that despite progress, this doesn’t feel like a recovery to millions of Americans, so he’s pushing to spend another $100 billion this year to try to create more jobs soon.” So, if spending over $3 million constructing a turtle crossing in Florida, wanting to put expensive guard rails around a dry lake bed in Oklahoma, spending thousand of dollars to gauge how alco-hol affects a mouse’s motor functions, or just spending $219,000 to study the sex life of college female freshmen seem to be a good use of your tax dollars, then you are going to love the next round of spending. Bill’s theory on Washington these days is to never, never waste a golden opportunity of spending borrowed money on worthless projects the taxpayer doesn’t want and can’t afford.

Kansas Liberty columnist Bill Wyckoff is president of Labette Bank, a community bank with locations throughout southeast Kansas, and an occasional contributor to the Wall Street Journal and Fox Business News. He lives on a farm outside Altamont. A graduate of Kansas State University with an MBA from Southern Illinois University, he enjoys collecting antique John Deere trac-tors and driving his hemi orange Dodge Challenger.

The views expressed in this story are soley those of the author and not necessarilly those of the Kansas Bankers Association.

ColumnsColumns

By Bill Wyckoff

Banker and columnist Bill Wyckoff says the federal stimulus package isn’t working.

Columns


FARM CREDIT WATCHINDUSTRY NEWS AND OPINIONS ColumnsColumns

FCS loan growth slowed in 2009 as credit problems rose

Bert ElyBanking consultant

and principal of Ely & Co.

FCS lending slowed dramatically in 2009, rising just 2.1 percent after growing at a 15 percent annual rate

from the end of 2005 to the end of 2008. According to the FCS’s Annual Informa-tion Statement, “the modest loan growth experienced in 2009 was primarily the result of softened loan demand, as com-pared to the levels of the past few years,

due to a decline in commodity prices and the overall downturn in the U.S. and global economies.” However, FCS’s net inter-est income grew 14.7 percent in 2009 as the FCS increasingly capitalized on a very steep yield curve. However, FCS’s pre-tax profits declined almost 1 percent from 2008’s record level due to a more than doubling of its loan-loss provision. The FCS’s non-accrual loans rose to 2.04 percent of total loans at the end of 2009, up from 1.41 percent at the end of 2008 and just .36 percent at the end of 2007. Despite a $517 million increase in its 2009 loan-loss provision, the FCS’s loan-loss allowance as a percentage of its nonaccrual loans dropped to 40 percent at year-end 2009 from 41 percent the year before. A broader measure of FCS credit problems are loans and com-mitments that have been classified as “other assets especially mentioned,” substandard, or doubtful as a percent of total loans and commitments. That percentage rose from 5.3 percent of total loans at the end of 2008 to 8.6 percent ($19.2 billion) of total loans and commitments at year-end 2009, making the FCS’s loan-loss allowance of $1.36 billion at the end of 2009 look pretty puny.

FCA’s hypocrisy regarding stockholderinvolvementAs recent issues of FCW have noted, the Farm Credit Admin-istration (FCA), the FCS’s regulator, does not name names when announcing enforcement actions its takes against FCS institutions. This policy is in sharp contrast to what occurs in the Federal Home Loan Bank System, the other GSE owned and controlled by its member-borrowers. It is well-known which Federal Home Loan Banks (FHLBanks) have suffered financial impairments and the actions they have taken to deal with those problems. Not so within the FCS. At its March 11 meeting, the FCA board adopted new regula-tions governing the election of the directors of FCS institu-tions. According to an FCA news release, the new regulation’s purpose “is to strengthen stockholder involvement in the management, ownership, and control of [FCS] institutions by increasing stockholder participation in the director election process.” Translation: The FCA wants the FCS’s owners to be more involved in the oversight of the institutions from which they borrow. However, the FCA refuses to inform the owners of an FCS institution that the FCA has issued an enforcement action against that institution or that the institution is sliding into trouble. Not only is this non-disclosure policy a classic example of regulatory hypocrisy, but worse, it hides problems within a troubled institution from those who ultimately bear their cost—the institution’s owners.

Based on various FCA and FCS documents, as of March 11 the FCA had enforcement actions outstanding against five relatively small FCS associations. Two were issued last No-vember, two were issued in January, and one in February. The total assets of the first four associations are about $1.2 billion, less than one percent of total FCS assets; no asset number is available for the most recent enforcement action. However, according to an interesting disclosure in the FCS’s Annual Information Statement for 2009, more enforcement actions undoubtedly are in the pipeline. Under the FCA’s 14-point risk rating scale, at the end of 2009, loans from FCS banks to three associations, totaling $742 million, were “substandard.” Most likely, these associations are among the five which have outstanding enforcement orders. More troubling, another ten associations, with loans from FCS banks totaling $7.09 billion, were classified as “other assets especially mentioned,” while FCS bank loans to yet another seven associations, totaling $5.50 billion, were in the lowest category of “acceptable” loans. Who these troubled 20 associations are—almost one-fourth of the 89 FCS associations at the end of 2009—is a deep, dark secret, known only to the FCA and perhaps to a few senior FCS executives.

Time to subject the FCS to SEC disclosure oversightOf the five GSEs, only the FCS is not subject to any oversight by the Securities and Exchange Commission (SEC). Each FHL-Bank “must file certain periodic [i.e., quarterly] reports and other information with the SEC.” Among other requirements, each FHLBank’s SEC filings must include a “description of the risk factors applicable to that FHLBank.” Not only do the five FCS banks have the same type of member ownership as the twelve FHLBanks, but the banks in each GSE are jointly and severally liable for the debt they collectively issue. If SEC over-sight is justifiable for the FHLBanks, then it certainly should be required for the FCS banks.

Do taxpayers stand behind FCS debt? A major competitive advantage the FCS has over its taxpaying competitors is the implicit taxpayer backing of FCS debt. That backing was reinforced by the 1987 taxpayer bailout of the FCS. However, a March 4 comment by Rep. Barney Frank, Chairman of the House Financial Services Committee, raises questions about that taxpayer backing. Specifically, Chairman Frank said the federal government should stand behind only that Fannie Mae and Freddie Mac debt issued after they were seized by the government in September 2008, but that the government should not stand behind Fannie/Freddie debt issued prior to their seizure or once the government ultimately ends its control of the two firms. Since the FCS is not under direct government control, as are Fannie and Freddie, it is eminently reason-able for investors to now conclude that taxpayers do not stand behind FCS debt.


ASSOCIATE MEMBERSFeaturesFeatures

A great resource—KBA Associate Members Directory

KBA associate members are an invaluable resource for the KBA and its member banks. Each year they bring their very best people, products and services to KBA

member institutions. These companies are at the leading edge of their industry, whether it is technology based, service based, or product based. With more than 120 members in a typical year, the KBA associate members offer everything from accounting, corre-spondent banking, consulting, investment, legal, technology and any number of other bank related products and services. Many of these companies have been associate members for more than 20 years and have supported the KBA, our mem-ber banks, and Kansas banking in general, through the good times and the bad. Considering the current state of our industry, we are see-ing numerous new companies wanting to get involved with the KBA and bring their specialized areas of expertise to our Kansas banks. In turn, those that have been with us for a long time are continually changing and keeping up with the times

whether it’s updating current products and services or adding new lines of business. Not only do they bring those top-of-the-line products and services, but they also help by sponsoring KBA conferences, seminars and other events. Without those sponsorship dol-lars we would be limited in the scope of what we could bring to you our member banks. It is a combination of those spon-sorship dollars and your attendance that allow us to continue to bring you the very best and most up to date educational opportunities. KBA associate members all have one purpose and that is to bring the absolute best products and services to our Kansas member banks and to support Kansas banking. In this issue of The Kansas Banker you will find our annual KBA Associ-ate Member Directory. Please take time to look through this guide and reference it when you are seeking a business solu-tion. These organizations truly care about banking in Kansas and are proud to be associate members of the Kansas Bankers Association.

PRODUCTS AND SERVICES

By Mike NorrisVice president of member services

*Hold on to your 2010 Associate Member Directory. It has the contact information of the companies that can help elevate your bank’s business.

Features

Nothing seems to look the same in banking these days. This is

not your daddy’s Oldsmobile. Those who are holding their breath, waiting for bad times to pass by using the traditional

model of across-the-board cost-cutting—cutting travel, training, and marketing—are fi nding that they desperately need to come up for air. That game could only go so far and we’re there. It’s over. Gulp. Those who are using the best practices of days gone by are learning that those practices no longer suit their needs. They need to fi nd the delicate balance between hanging on to what worked and reinventing themselves on the fl y so they can have some hope of competing in the future. So what do we do now that the only thing we’re assured of is that nothing will ever be the same? The consumer will forever be at risk, government intervention will be the norm, and interest rates are a roller coaster that would make any asset-liability mod-eling look like a video game with you as the target. So what are the biggest myths and mistakes that banks are likely to make in their strategic planning this year?

Mistake #1: Create a 5-10 Year PlanLet’s get real about this…nobody knows what’s going to happen next and how long that shift will last. A SWOT analysis is as futile as taking a bazooka to shoot mosquitoes in a Minnesota swamp. (A simple grenade works best for those.) With change happen-ing this fast and furiously, a long-term plan doesn’t even have a chance of making sense. What needs to happen these days is for the executive team to have thought through every possible sce-nario and develop an action plan for each so they can be fl exible and fast when the opportunities arise. Additionally, thinking that those on the leadership team are the only ones who need to be trained to “think” will be the downfall of many a bank.

Mistake #2: Assuming the world will endThe demographics are still strongly indicating that fi nancial services will remain a boom industry for years to come. The horse is not dead. Not having a plan to capitalize on everything to make sure you pull in all the market share you can is a huge mistake.

Mistake #3: Pulling in your tail so it doesn’t get stepped onImagine not calling any of your customers to develop business. Imagine not having a proactive plan to go after all your prime prospects that are vulnerable because their bank is ignoring them as they “clean up their messes.” Imagine no plan to market to the wealthy. Imagine that no business development is being done. You don’t have to imagine for long—that is the case with almost every one of your competitors. They think they have a pause but-ton on their remote control while they clean up loan issues. That makes this a perfect time to be in business and pulling in market share. The banks that thrive know how to deal with ever-more-

challenging asset quality issues while they keep their other foot on the accelerator called business development.

Mistake #4: Thinking the consumer is the same as alwaysThe consumer has changed. In fact, they have changed forever. They want life to be simple. They want you to take away their risks. They want someone to hold their hands and teach them. They don’t want hundreds of choices—they want a few simple choices and they want someone who they can trust to guide them. They are no longer frivolous. They are overwhelmed with options and exhausted trying to keep up and they want you to take away their headaches and simplify their fi nancial lives. Having a bro-chure listing 13 different checking accounts and asking which one they want is kamikaze banking.

Mistake #5: Not being perceived as an expertNobody needs another banker. People do need and want an expert—someone who is savvy and smart, consumed with under-standing the fi nancial world and making it simple for them. The banks of the future will be those who understand that they are in the education business—not the product business. They will know how to get in the media as teachers and how to cultivate their identity as experts.

Mistake #6: Not understanding the new business model is “free”We have an entire generation who expects everything for free. They don’t buy until they try. If your strategic plan doesn’t take this Google Generation into account, you may as well pick up your toys and go home. It’s the Google way or the highway.

Mistake #7: Not positioning yourself as trustworthyCustomers want to be led by someone they can trust. In the wake of Madoff, the large banks, and many brokerages hanging their unethical laundry, the consumer is now wondering who they can trust. Welcome, community banks! Well, the community banks who know how to get the media and create the platforms to prove they are ethical and they will take great care of their custom-ers. Brand advertising is out. A waste. Washed up. What’s in is experts who show they care. If you don’t have at least three strate-gies to take advantage of that, this will not be your decade. Every mistake avoided is an opportunity earned. So get out there and make it your decade!

Roxanne Emmerich, President and CEO of The Emmerich Group, Inc., is America’s leading expert at helping banks create immediate and sustainable performance breakthroughs. She is a New York Times bestselling author of seven books, including Thank God It’s Monday: How to Create a Workplace You and Your Customers Love and Profi t-Growth Banking—proclaimed to be the “bible of successful banking.” Visit www.ThankGodits-Monday.com and www.EmmerichFinancial.com to sign up for the free reports, tools, and ezines or call 1-952-820-0360 for ideas on how you can start your breakthrough.


MOKANCONFERENCE PREVIEW FeaturesFeatures

Seven strategic planning mistakes

By Roxanne Emmerich

The keynote speaker at the upcoming MOKAN Conference provides the advice you need to clean up your strategic plan.


Features

D IRECTORSWORKSHOP RECAP FeaturesFeatures

Dennis McCuistion stood at the front of a room full of bank directors and told them 140 banks failed in 2009, and 21 so far in 2010. The number resonated

with the crowds at the Robbins Center in Hays, March 3, and the Ramada in Topeka, March 4. He said, for argument’s sake each of those banks had a 10-person board of directors. From there, the math was easy and the message resounding. Nearly 1,610 directors in some capacity helped or didn’t stop a bank failure. “Someone wasn’t doing their job,” says McCuistion, presi-dent of McCuistion & Associates, Inc., Irving, Texas. Luckily, we can learn from the past and work to ensure the same doesn’t happen to Kansas directors and banks. The goal of the 2010 Bank Directors Workshops and Keynote Speaker McCuistion was to provide directors with information that could benefit them and their ability to help their banks institute changes to keep their boards fresh and proactive, and hopefully avoid the problems that caused 161 bank failures since the start of 2009. The first step is growing as a director and embracing the role entirely. “There is more to the job than hiring the CEO,” he says. McCuistion displayed and discussed a study that showed what portion of a director’s job was spent doing what. The list included strategic planning, succession planning, meeting key managers, risk management, and discussing the competi-tion, which is something McCuistion says he thinks the board should do more. If the board has an idea what the competition is doing, it can help dictate business plans with management to keep their bank on par or ahead of the competition. After breaking down the chart, McCuistion broke the direc-tors into groups and asked them to assess the strengths and weaknesses of their boards with each other, which they later shared with the group. McCuistion also asked the groups to discuss how they keep

their boards “fresh.” He says some boards can be stale, lack diversity and be reluctant to find new members. With new people come new ideas. McCuistion thinks if a board mem-ber isn’t carrying their weight, despite having been on the board for decades, a succession plan should be in place to consider a replacement. It’s also important to have different backgrounds on the board to fully gain representation of the community the bank represents. Banks should actively seek out members of different ages, races, sexes and industries. McCuistion also cautions against micromanaging. “If you can’t be on the board without micromanaging, you need to get off the board or find someone you trust to manage the bank,” he says. Keeping the board fresh and maintaining directors who are proactive with business development could keep the bank and the board tip-top—done through succession and retirement guidelines—and also through a nominating and governance council that researches new director possibilities. McCuistion thinks this group should have some guidance from the CEO, but the CEO should not be spearheading the committee.At the point when the board is comprised of these people, Mc-Cuistion suggests each director will be well equipped to spend their time doing what they have been selected to do while serving in four capacities: fiduciary, advising, overseeing and business development. The day concluded with KBA’s Terri Thomas, senior vice president and legal department director, providing a brief legal update, consisting of the major banking regulations all directors need to be aware of to do their jobs effectively. The recent changes to Reg E, including new overdraft rules, elic-ited many questions.

Directors meet for advice on how to be a more effective board member

Above: John E. Boyer IV, chairman of the board, Kanza Bank, King-man, and KBA chairman-elect, participates in a group exercise.

Above: Dennis McCuistion explains the rules to a group exercise where directors of different sized banks discuss their strengths and areas where they can improve as a board.

Features



B LOKSESSION II FeaturesFeatures

BLOK heads to Fed and Board of Trade

In the Bank Leaders of Kansas (BLOK) program, class members take on a daunting amount of information. However, for the Kansas banking industry leaders-in-

training, the scope of information and their future roles come into perspective a little more with each class session. Session II, which included stops at the Kansas City Board of Trade, the Federal Reserve Bank of Kansas City and participation in KBA’s Tri-state Leadership & Human Resources Conference, opened more than a few eyes for the 2010 BLOK class, and the depth of being a banking industry leader started to hit home. “There is always room for growth and learning. With every new and educational experience the picture becomes a little clearer,” says Kim Fairbank about her experience during Session II.

Fairbank, chairman and CEO for First National Bank, Cimarron, and her classmates spent March 9, at the Kansas City Board of Trade and the Federal Reserve Bank of Kan-sas City, and March 10, at the Marriott Country Club Plaza for the Tri-state Leadership Conference. These three stops comprised BLOK Session II, which highlighted the Board of Trade’s price discovery process and the opportunity to gain a better understanding of the role the Federal Reserve plays in everyday community banking and learning how they could be better leaders. Having already learned the roots of the Kansas Bankers Association and about grassroots lobbying in Session I, discovering the Federal Reserve’s roles, learning about the Fed’s valuable resources, and listening to leadership tips for Kansas bankers were perfect follow-ups for the 2010 class.

“The conference emphasis on leadership and human resources together was quite fitting for the BLOK class,” says Fairbank. “The two go together perfectly because to be an effective leader involves recognizing the vital role HR plays in achieving the goals of the bank. You can’t lead if no one will follow.” Session II started at the Kansas City Board of Trade, where the class members witnessed a live stock exchange and learned a great deal about the live floor trading process. Giving the tour of the Board of Trade was Shelia Summers, vice president of marketing. From there it was on to the Federal Reserve, where BLOK listened and talked to a banker panel that discussed the challenges and rewards of banking in the largest metropolitan region in Kansas. Making up the panel were David Hern-

Fairbank, chairman and CEO for First National Bank,

BLOK members (left to right) are Ryan Engle, Alan Meyer, Brad Rucker, Steve Gegen, Kim Fairbank, Barry Purdy, Mike Palen, Kyle Campbell, Ruth Emerson and Gary Yager.

Features

don, president, First State Bank of Kansas City, Kansas; Kurt Knutson, president, Freedom Bank, Overland Park; Ralph Leno, president, Gardner Bank, Gardner and Mike Maddox, president, CrossFirst Bank, Overland Park. Also at the Federal Reserve, the classmates listened to speeches by speakers Richard Hadden and Federal Reserve Bank of Kansas City President Tom Hoenig. Hoenig was one of the first advocates to call for an end of Too Big to Fail, and has a powerful voice in the banking world. For many of the BLOK members it was their first time visiting the Federal Re-serve and meeting and listening to Hoenig. His understand-ing of community banks and their role in the economy was educational and interesting for BLOK. “I could listen to him all day,” says BLOK class member Michael Palen, president, Western State Bank, Garden City. Palen says he thinks Hoenig’s take on Too Big to Fail is dead-on. Fairbank agrees. “I was most impressed with his Midwestern, down-to-earth personality and presentation,” Fairbank says. “It was refreshing to hear President Hoenig defend the community banks and the important role they play in their communities and the economy, and to speak of the need for meaningful fi-nancial regulatory reform. He is a voice and reality check for those who seem to have forgotten what caused this financial crisis.” The tour of the Federal Reserve is always very interest-ing. It doubles as a history lesson on the Federal Reserve and monetary policy. The massive, high-ceilinged lobbies are adorned with artifacts ranging from rare coins to history tidbits meant to tickle the mind. A regular highlight of the tour is the visit to the top floor and Hoenig’s office, which faces west toward Kansas. At the Tri-state Conference March 10, BLOK joined bank-

ers from Kansas, Missouri and Nebraska to learn about HR and leadership techniques to help create and maintain the best working atmosphere possible. Brigadier General Robert E. Wheeler, 509th Bomb Wing, Whiteman Air Force Base, Mo., addressed the crowd and gave a compelling speech on what it takes to be a good leader. The leadership skills he gained in the Air Force are ones he says can be used in the bank. “I felt like Brigadier General Robert E. Wheeler summed up leadership very well with his 10 leadership points. My favorite was, ‘You never know when you’re going to make a difference,’ ” Fairbank says. It’s that kind of message BLOK was able to learn and hold onto moving into their last two sessions. They’ll have the knowledge and skills they need to advocate on behalf of Kan-sas banks, and they’ll be ready to use it any given day.


SponsorsKennedy & Coe, LLC

Kansas Bankers SuretyBankers’ Bank of Kansas

INTRUST Bank, N.A.Schools of Banking

Promontory Interfi nancial Network LLC

Above: Making up the banking panel was (left to right) Mike Maddox, Ralph Leno, David Herndon and Kurt Knutson.

Above: Ruth Emerson (left) and Kim Fairbank (middle) speak with KBA Chairman Jeannette Richardson (right).

Above: Tom Hoenig chats with BLOK members as Diane Raley (left) and Chuck Stones (middle) listen on.

Above: Ryan Engle and Alan Meyer pretend to trade shares in front of a display of traders at the Kansas City Board of Trade.

BLOK


Co lumnsColumns

By any measure, our just-concluded 2010 Government Relations Summit was a resounding success.

With nearly 1,000 bankers participating, it was our largest Summit to date. It was the biggest banking meeting of any kind to be held in Washington in memory. And it once again highlighted and showcased the critical alliance between ABA and state bankers as-sociations across the country as bankers and

their state executives swarmed Capitol Hill for meetings with their members of Congress and their staffs. The timing couldn’t have been better, with regulatory reformzon the front burner in the Senate. The general session speakers—which included House Major-ity Leader Steny Hoyer (D-Md.), House Republican Leader John Boehner (R-Ohio), Senate Banking Committee Ranking Minority Member Richard Shelby (R-Ala.), Sen. Evan Bayh (D-Ind.), Small Business Administrator Karen Mills, and three Federal Reserve Bank presidents—generated huge interest not only among the bankers, but also the media. FDIC Chairman Sheila Bair, Comptroller of the Currency John Dugan, Fed Governor Betsy Duke and Offi ce of Thrift Supervision Acting Director John Bowman spoke at early-morning breakfasts and received important banker feedback on bank exams and other

relevant regulatory issues. “Bankers Lobby Against Financial Regulatory Overhaul” said the Washington Post headline to an article that described the Summit as “more like a pep rally than a meeting of the American Bankers As-sociation.” The Summit participants told the banking industry’s story—about the impact that proposals such as the Consumer Financial Protection Agency and regulatory restructuring would have on their communi-ties and their customers. As ABA Chairman Art Johnson, chairman and CEO of United Bank of Grand Rapids, Mich., said, “All of us know what’s at stake. We’re not going to sit silently while we are blamed for problems that were caused by others.” The participating bankers’ messages resonated both on the Hill and with the 56 reporters representing 32 print and electronic media outlets who covered this year’s Summit. The Summit provided an opportunity for participating bankers from across the country to make a difference in supporting their industry. They made the most of it. The Summit’s success provided a very visible example of how the banking industry, by working together, can make a positive difference in the public policy arena. We want to see the annual Government Relations Summit con-tinue to grow. Stay tuned, and remain involved and engaged. Work-ing together, we can and will continue to shape the outcome of this enormously challenging and important regulatory reform debate.

INDUSTRY NEWS AND OPINIONS

WASH INGTON UPDATE

A very successful summit

Ed YinglingPresident of The

American Bankers Association

ColumnsColumns

ColumnsColumns

As the first employee walked from the back of the parking lot to-ward the bank, a woman carrying

a gun stepped from behind the bushes near the back door. The robber entered the bank with the employee. The em-ployee was ordered to strip and ordered to go into the restroom. The second

employee arrived and noticed the all-clear signal was not set. Thinking it must have been forgotten again, she used her key to enter the bank, where she was met by the robber. She was also ordered to strip and go into the restroom. The other two employees arrived together. They had entered the bank hundreds of mornings without incident. They never looked for the all-clear signal; that was for the first two employees. They couldn’t see inside the bank from the back parking area, so they didn’t notice that no one seemed to be inside. They were also ordered to strip and go into the restroom. When the vault time lock expired, the crook ordered the employees to open the vault and then sent them back to the restroom. The robber then took the cash from the vault, along with everyone’s cloth-ing, and left. The employees were found scared and embar-rassed in the restroom after law enforcement was notified that something was wrong by a concerned customer. No one was physically injured —this time. Holdups can and do happen. However, most bank holdups last only seconds, involve only the limited cash that is exposed in the teller top drawer, and seldom result in injury to the bank employees. A “morning glory robbery” (a holdup that occurs before the bank opens to customers) often lasts much longer and is much

more dangerous. In a morning glory robbery the crook must wait for the time lock to expire. During this time, the robber tries to control all employees as they arrive. Because of the necessity to control multiple people over a longer period of time, violence and pain are often used to intimidate the employees. The procedures bank employees use to open the bank or branch can help discourage and prevent these extremely dan-gerous morning glory robberies. The first thing a bank can do to reduce exposure to this danger is to make certain the facility does not have places where a person can hide to attack employees while opening the bank. Bushes need to be well-trimmed. Objects that ob-struct views need to be eliminated, if possible. Rounded mir-rors can be installed to help view around unmovable obstruc-tions or down stairwells. When arriving at the bank, the first employee should, if possible, drive completely around the bank to look for any signs that someone may have broken in. She should also look for anyone lurking around the bank. This first employee should park close to the entry door, where she cannot be eas-ily targeted between the time she leaves her car and the time she enters the bank. The first employees should be using the front entry or the entry that has the highest amount of traffic visibility. If necessary, the cars can be moved later after sev-eral other employees are in the bank. Before the first employee enters the bank, a second em-ployee should arrive. A second employee should watch from a car at a distance as the first person enters the bank. This makes it difficult for a robber to control both employees. A potential robber who scouts out the bank is likely to go else-


Opening procedures necessary for employees’ safety

SECUR I TY OFF ICER’S BYWORDINDUSTRY NEWS AND OPINIONS ColumnsColumns

Charles TowleSenior Vice President of Kansas Bankers Surety


TOWLEwhere rather than try to control two people who are far apart. The first employee entering the bank needs to search for any sign of intruders. Alarm systems with motion detec-tors certainly help, but the first employee still needs to look around. After it is determined to be safe, an all-clear signal needs to be given. The all-clear signal can be turning on or off a particular light, opening a particular window shade, moving a particular sign. The signal should be subtle. A second danger signal should also be included in your training procedures. This allows the employee to take action to secretly signal there is danger. If there is a problem, the employee has the option of giving the danger signal or not giving the all-clear signal, or both, depending on the situation inside. If it were me, I would want to have the option of letting someone know it is unsafe rather than just have the employee outside wondering if I forgot to put up the all-clear signal. If the danger signal is given or the all-clear signal is not given, the employee waiting outside needs to know what pro-cedures to follow to call for help.

Once the all-clear signal is given, the first employee needs to be able to watch the second employee and allow him to en-ter only if he is alone and safe. If the situation appears unsafe, the employee inside can trigger alarms or call for help. No bank can prevent all robberies. Employees can reduce the likelihood of a robber gaining early morning access to the bank which reduces exposure to a particularly dangerous robbery situation. The longer a robber is in the bank, the more dangerous it becomes for the employees. The more inconve-nient you make it for a potential robber to get into the bank, the more likely it is that the robber will give up, or find a dif-ferent easier victim.

Chuck Stones President [email protected]

Kathy Olsen Senior Vice President, General Counsel [email protected]

Terri Thomas Senior Vice President,Legal Department Director [email protected]

Becky Tongish Senior Vice President, Educational Resources [email protected]

Doug Wareham Senior Vice President, Government Relations [email protected]

Sara Blubaugh Consumer Education Coordinator, Advertising Manager [email protected]

Linda Brown Administrative Assistant, Legal Department [email protected]

Diane Catron Administrative Director [email protected]

Jerrie Conklin Education Assistant [email protected]

Linda Douglass Assistant Treasurer, [email protected]

Gwen Hill Staff Attorney [email protected]

Eric Jorgensen Editor [email protected]

Jackie Kuhn Vice President [email protected]

Elaine Martin Conference Coordinator [email protected]

Lynne Mills Receptionist [email protected]

Becky Milne Education Coordinator [email protected]

Connie Sherer Legal Assistant [email protected]

Julie Taylor Information Systems Coordinator [email protected]

Mary Taylor Communications Specialist [email protected]

KBA Insurance, Inc. Herb Iams President [email protected]

Becky Iams Executive Vice President [email protected]

Mike Norris Vice President of Members Services [email protected]

Ed Griffi th Vice President of Employee Benefi ts egriffi [email protected]

Susan SalyerEmployee Benefi ts [email protected]

KBA Hodge & Porter, Inc. Paul Porter President [email protected]

H.D. “Hump” Hodge Executive Vice President [email protected]

Kent Owens Vice President [email protected]

Linda Watson Administrative Assistant [email protected]

Nancy Smith [email protected]

Schools of Banking, Inc. Tami Shkolnick Executive Director [email protected]

Kami Murphy Assistant Director and Registrar [email protected]

KBA staff and e-mail index

First National Bank of Hutchinson.......inside front coverGeorge K. Baum & Company..............................page 1Shazam......................................................................page 3USDA..........................................................................page 5KBA Hodge & Porter, Inc........................................page 6The Whitlock Company...........................................page 10Butler & Associates...................................................page 12Midwest Properties, LLC..........................................page 12KBA Education.........................................................page 15KBA Education.........................................................page 15Allen, Gibbs & Houlik, L.C......................................page 18BankOnIT..................................................................page 19BlueCross BlueShield of Kansas............................page 20INTRUST Bank...........................................................page 21KBA Administration.................................................page 22KBA Administration.................................................page 23KBA Education.......................................inside back coverDCI......................................................................back cover

Ad IndexThe quickest way to get from point A to correspondent banker B is by calling INTRUST Bank. We take special care to ensure your needs are met by a qualifi ed professional. And, that your time is not wasted navigating a maze of phone extensions and voice mails. Contact us today to see what we can do for your bank.

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Education CalendarRegister and see full, regular ly updated listings of KBA education programs and events at www.ksbankers.com.

Webinars—Sunfl ower SeriesApril 12: What Kansas Bankers Need to Know About About the Financial Privacy Rules

April 19: Acquisition Opportunities in the Current Banking Environment

April 20: Wind Power from a Banker Per- spective

Webinars—National SeriesApril 16: Conducting a Fair Lending Self As- sessment

April 19: Banking Fundamentals Video Web- cast Part 1

April 21: Robbery Prevention Response and Aftermath Video Webcast Part 1

April 22: Complying with RESPA’s Section 8 Rules

April 26: Banking Fundamentals Webcast Part 2

April 27: SAR & CTR Webinar Series Part 1: SAR Decision Making & Documenta- tion

April 28: Robbery Prevention Response and Aftermath Video Webcast Part 2

Seminars and ConferencesLegal Update SeminarsApril 6: Topeka, Capitol Plaza Hotel—Aft.April 7: Emporia, Best Wester—Aft.

April 8: Wichita, Aiport Hilton—Aft. & Eve.April 13: Colby, Convention Center—Aft.April 14: Garden City, Clarion Hotel—Aft.April 15: Great Bend, Highland Hotel—Aft.April 20: Salina, Ramada Inn—Aft.April 21: Blue Rapids, Community Ctr. —Aft.April 22: Hays, Ramada Inn—Morn.April 22: Phillipsburg, Huck Boyd Ctr.—Eve.April 27: Over. Park, Ritz Charles—Aft. & Eve.April 28: Parsons, VFW—Aft. & Eve.

KBA/NBA Schools of BankingSchool of Banking FundamentalsApril 12-16: Topeka

Operations SchoolMay 11-13: Grand Island, Neb.

Agricultural Lending SchoolJuly 19-23: Kearney, Neb.

Centera Bank, Sublette, was originally chartered in 1937, with current ownership purchasing the bank in December of 1986. Among that leadership is former Kansas Bankers Association Chairman Michael Stevens, who is Centera’s chairman of the board. After three mergers/acquisitions, the bank now has loca-tions in Sublette, Satanta, Greensburg, Dodge City and Min-neola.

Chairman of the board: Michael Stevens

President: Charles Myers

Employees: The bank has 51 combined employees.

Community service: “We strive to be a business leader in the communities we serve,” says Stevens. “We participate in special community events, educational programs and support our local organizations and schools. We accom-plish this through efforts from both the bank and our em-ployees. Also, we have been involved in various rebuilding projects in Greensburg since the May 2007 tornado.”

Meet a bank

Pictured above are all the branches of Centera Bank. Clockwise, starting at the top left, are Sublette, Satanta, Greensburg, Dodge City and Minneola.


Centera BankCentera Bank

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The Kansas Banker, April 2010

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Transcript of The Kansas Banker, April 2010