Pub. 3 2014 Issue 7

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