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September 2014

7

l e a d i n g

a d v o c a t e

f o r

t h e

b a n k i n g

i n d u s t r y

i n

k a n s a s

Theresa Rose used humor to give an inspirational Spouse/Guest program titled

“Finding your Mojo: The ABCs of Living in Abundance, Balance and Creativity.”

KBA Regional Representative Lynn Mayer, Citizens State Bank of

Marysville and David Harris, FHLBank Topeka pause for a photo between

sessions.

Newly elected KBA Treasurer Ron Johnson, Community National Bank,

Seneca and KBA Chairman-elect Bob Leftwich, Impact Bank, Wellington

caught up just before the annual meeting.

Tom Page, Emprise Bank, Wichita and Mike Maddox, CrossFirst Bank,

Leawood, KS, catch up between sessions.

ABA Chairman Jeff Plagge, President/CEO of Northwest

Financial Corporation, Arnold Parks, Iowa, highlighted ABA’s

efforts to bring meaningful regulatory relief to the banking

industry, while also ensuring banks have the information and

tools to protect their institutions from the latest cyber security

threats facing our industry. He also outlined the efforts of

ABA’s Agricultural Credit Task Force that is currently being

led by KBA’s Immediate Past Chairman Leonard Wolfe, United

Bank & Trust, Co, Marysville, Kansas. Plagge thanked Wolfe

for his recent testimony to a special congressional committee

that largely focused on the tax advantages and mission creep of

the Farm Credit System.

Kansas City Federal Reserve Bank President Esther George

updated Kansas bankers on the Federal Reserve Bank’s

continued tapering of Quantitative Easing (QE) and the

likelihood that interest rates would be kept at zero for the

foreseeable future. George stated the inflation rate was only

1% for 2013 and is being projected at 2% for the current year

(2014). She also shared that GDP is expected to grow at a 2%

rate for the current year, but she is pleased to see the capital

position of community banks improving as well as bank

profitability.

In the presentation titled “Culture is a Growth Activity,” Jeff

Judy explored the belief that the one risk that is most neglected

by management is the bank’s culture. Having a weak operating

culture nurtures constant quarreling and allows disgruntled

relationships to continue. He blames poor communication

and weak leadership for this negative culture. Jeff then led

the group through a short self-assessment of whether a bank’s

culture is loose or tight. Jeff’s keys to developing a good bank

culture are: consistency in practices and standards; having a

shared vision among all staff; and developing strategies that are

consistent with the previous two items. He strongly urged bank

CEO’s to tighten their “culture” by constantly monitoring these

keys, which will inevitably allow banks of all sizes to remain

competitive in their markets.

In one of two bonus break-out sessions, Jeff Judy urged

bankers to stop trying to sell loans, but rather, to solve

customers’ cash problems. He suggested that even when a

banker has to say “no” to a loan request, there are other ways

a banker could help the customer solve his or her shortage of

cash – since cash drives all requests for loans. Jeff noted that

the key to properly assessing a customer’s needs is information

– ask questions and then listen to the answers. He stated that

the focus of the conversation should be the cash activities of the

customer’s business. Key assessment tools for this evaluation

are to understand the customer’s behaviors and the cash cycle

of the customer’s business. Successful credit risk management

Continued on page 8