Pub. 5 2016 Issue 3

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 10 T HE 2016 BLOK Class met at the InterContinental Hotel in Kansas City on March 21-23. The session included a private training meeting for the class, a visit to the Federal Reserve Bank of Kansas City and concluded with attendance at the Tri-State Leadership and HR Conference. They gathered the first afternoon to learn from an Urban Banker Panel that was comprised of Mark Larrabee, CEO, Arvest Bank, Shawnee Mission; John Price, Executive Vice President, Valley View State Bank, Overland Park; and Travis Hicks, CEO, TriCentury Bank, DeSoto. The panel was moderated by KBA President Chuck Stones and played out as an interactive discussion about opportunities and challenges facing bankers in the most populated part of the state. Each panelist addressed their greatest challenges and the unique aspects of their operation. They also discussed how they hire and what their onboarding process looks like as well as a discussion on personal mission statements. A more technical discussion included payment system changes with innovators like Apple Pay, Samsung Pay and other mobile wallets and how this technology will affect the industry. Alternative lending models were also discussed. Dr. Bruce Morgan led a session on the future of community banks. Dr. Morgan started his presentation about the biggest challenges facing banks today which included the fact that asset quality is low and regulation burden is high. Many banks no longer offer home loans due to the regulations and this used to be the bread and butter for community banks. The good news is that a small bank can compete with big banks in their local market because they know the community. The trick is to find a niche that meets a community need. Dr. Morgan primarily focused on what the most successful banks do and he outlined the performance indicators of banks performing in the top 10% of the industry. A visit to the Federal Reserve Bank of Kansas City is a featured event of the BLOK experience. This year the group was able to meet in the executive board room on the 14th floor of the Federal Reserve, which was a program highlight for both KBA staff and BLOK class members. Welcome remarks were offered by First Vice President Kelly Dubbert and he discussed the three roles of the Federal Reserve Bank which include, [1] To guide monetary policy for economic stability; [2] To regulate and supervise banking institutions in the U.S, [3] To provide financial services to banking institutions, the U.S. government, and foreign official institutions; as well as to play a major role in operating the nation's payment system. Brent Bundick , Economist, provided an economic outlook that included the loss of 9 million jobs during the recession and the current growth in jobs that has exceeded the numbers pre-recession. As households feel more comfortable with employment they are consuming more and spending more. Tim Todd, Bank Historian, provided a presentation on the history of the Federal Reserve Bank and their internal structure. Assistant Vice President of Exams and Inspections Ryan Harwell provided a presentation titled, “Bank Performance and Emerging Risks.” Topics covered included current conditions such as problem assets, loan growth and risk-based capital. He discussed emerging risks such as declining agriculture profit margins and risk management topics that included loan concentrations among many others. The program at the Federal Reserve Bank concluded with a tour of the Money Museum and a luncheon. The class then attended the Tri-State Leadership and HR conference. Thank you to BLOK program Sponsors Bankers’ Bank of Kansas Central States Capital Markets, LLC INTRUST Bank, N.A. KBS KBA Insurance, Inc. K-Coe Isom Professional Bank Consultants, LLC Schools of Banking The 2016 BLOK Class receives welcoming remarks from Federal Reserve Bank of Kansas City First Vice President Kelly Dubbert, in the Executive Board Room of the bank. Standing, Brent Bundick, Economist, Federal Reserve Bank of Kansas City. Sitting left to right are Andrew Chaney, Equity Bank, Wichita and Brandon Nordhus, Community National Bank, Seneca. Maria Pfizenmaier, United Bank & Trust, Clay Center, and Janet Lowell, Central National Bank, Concordia, catch up before the session started. BLOK SESSION 2 – A VISIT TO THE FEDERAL RESERVE BANK