Pub. 11 2022 Issue 4

In less than two years, the priority of the White House has shifted dramatically from the Trump Administration striving
for energy independence through domestic production to the Biden Administration striving to mitigate climate change by issuing executive orders designed to aggressively transition our nation away from fossil fuels. The shift of the political pendulum on energy policy has led federal regulatory agencies that directly govern or impact the banking industry to draft guidance documents, propose reporting requirements and initiate disclosure standards that are clearly intended to
limit and/or shift capital flowing to energy producers and energy users that produce greenhouse gas emissions. Like it or not, our industry has been pulled into the climate change debate.

The Honorable Jerome H. Powell ChairmanBoard of Governors of the FederalReserve System 20th Street andConstitution Avenue, NW Washington, DC 20551 Mr. Michael Hsu Acting ComptrollerOffice of the Comptroller of theCurrency400 7th Street, SWWashington, DC 20219 The Honorable Sandra Thompson DirectorFederal Housing Finance Agency400 7th Street, SWWashington, DC 20219 The Honorable Rostin Behnam ChairmanCommodity Futures TradingCommission

KBA President & CEO Doug Wareham along with Kathy Taylor, EVP-General Counsel hit the road this summer visiting banks as part of the annual
summer “No Ties Tour.”

It would have been the largest acquisition of a community bank by a credit union — but word came in mid-June that the deal was off between VyStar Credit Union and Heritage Southeast Bancorporation, after a failure to receive regulatory approvals. If completed, the deal would have made Jacksonville, Florida-based VyStar the 13th largest credit union in the nation.

As a bank compliance officer, do you wonder if you are overlooking issues? You’re not alone. Below is a summary of the national topics on the minds of compliance and other bank officers. Please reach out to the KBA Legal Department with specific questions.

The 2022 KBA Bank Leaders of Kansas (BLOK) Class reconvened their training with a successful third session in Wichita on July 13-15. The 21-member class kicked off their time together with an interactive discussion with 2010 KBA Chairman Jeannette Richardson (Vice Chairman, Prairie Bank of Kansas, Hutchinson). She shared insights on leadership in her bank and community, what led her to serve on the KBA Board of Directors and she graciously took
questions from the class looking to tap into her experience as a Kansas banker. That evening, the class members were treated to a hospitality reception, sponsored by UMB Bank, offering the chance to reconnect since their second session in April.

For people who have fallen behind on their mortgage or utilities due to pandemic-related hardship, the Kansas
Homeowner Assistance Fund (KHAF) is a great benefit, says loan officer Julie Cannady of Community National Bank & Trust (CNB) in Augusta, Kansas. KHAF, administered by Kansas Housing Resources Corporation, has been allocated $56.6 million through the American Rescue Plan Act to help low- and moderate-income homeowners avoid foreclosure and get caught up. Lender participation is a vital component.

FORVIS formally takes its place among the nation’s top 10 professional services firms, offering comprehensive assurance, tax, advisory and wealth management services.

Increased enforcement of regulations requiring federal contractors to keep an affirmative action plan on file has implications for Kansas banks.

As if navigating the 2008 Housing Crisis and the 2020 Global Pandemic weren’t enough, banks now face the most feared economic monster of all – inflation. CPI YOY jumped by 8.6% in May 2022, backed by broad price increases across many sectors. Obviously, this is well above the Fed’s average target of 2% and increases the chances of more severe economic headwinds. If the Fed aggressively fights
inflation through higher rates and balance sheet reduction, it will add significant downward pressure on consumers and the overall economy. If they are not aggressive enough, inflation can remain elevated for a longer period, also adding significant
downward pressure.

LEGACY BANK WELCOMES JEREMY DOGGETT TO PRATT BRANCH AS AG & COMMERCIAL LOAN OFFICER Legacy Bank welcomes new employee Jeremy Doggett as Ag & Commercial Loan Officer at their Pratt location. He is a member of the Pratt Rotary Club and is the Past President of the Pratt Area Chamber of Commerce. Doggett has strong

Jennifer Michelle (Koster) Wangerin
Jennifer Michelle (Koster) Wangerin, died Sunday July 10th, 2022, due to injuries sustained in a motor vehicle accident.

AUGUST 16 – Construction Lending Administration – Virtual 18 – Principles of Commercial/Ag Loan Documentation – Virtual 22-26 – Bank Compliance School – Kearney, NE 23-24 – Internal Fraud/Embezzlement – Wichita & Lawrence 30-31 – Branch Manager Best Practices – Topeka SEPTEMBER 7 – CFO Discussion Forum – Topeka 8 – Principles of Commercial/Ag Loan