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Happy New Year! We hope it is getting off to a great start. 2026 is a big year for TBB as we celebrate turning 40. We have a lot to share with you about what is upcoming, but it is always important to reflect on how we got here. 2025 was another great year for TBB. ROA remained solid and net income continues to set records. But for extraordinary items in 2024, 2025 was the most profitable year in TBB’s history. One area that needs highlighting is our Loan Department. Rick Lindsey and his team grew TBB’s loan portfolio by almost 30% with zero past dues at year-end and TBB’s Community Bank Leverage Ratio was 12.8%. Most of our loans are participations from customer banks, meaning that TBB’s strong earnings do not come from high service charges, but from our customers’ customers. There were pains along the way. The transition to the ISO 20022 Wire format was difficult, and converting to a new check sorting vendor has been challenging. While the financial impact has been manageable, it is the hit to our trusted reputation we take most seriously. We have done a lot of reviews to learn from mistakes and improve going forward. TBB exists to make community banks better and we will do what it takes to accomplish that goal. To that end, TBB is investing more than ever in technology. You will see positive changes to iWeb and our other tech this year. Core banking products for loans and operations support will continue to improve. TBB’s affiliate companies, Forward in Technology and The Bankers Solutions, are ready to help more banks with more issues than they ever have been. 2025 was another great year for TBB and we fully expect 2026 to be the same. Similarly, TBB’s first 40 years were successful in helping community banks thrive. We are excited to see what TBB can do for you in the next 40 years!

When most people hear “Human Resources,” the first thing that may come to mind is payroll and benefits. Sure, that’s an important part of what we do, but as HR professionals, we know our role is much broader, especially when it comes to supporting our organization’s health and resilience. One big part of that is guiding the organization for change and making sure it has the right infrastructure to support that change. So, what’s on the radar this year? Three headline changes stand out: One Big Beautiful Bill Act (OBBBA) Secure 2.0: Mandatory Roth Catch-Up Rule Guidance on AI in Recruiting The OBBBA brings about significant changes, but the most notable change for banks is the tracking and reporting of qualified overtime compensation. Even though this bill was signed into law back in 2025, the IRS will provide transition relief for tax year 2025 for employers subject to the new reporting requirements. Now’s the time to double-check that your payroll system can accurately separate and report qualified overtime compensation. Don’t wait until the last minute—being proactive here will help you avoid headaches (and compliance issues) down the road. Another major update impacts retirement plans. Starting January 1, 2026, if you have employees who are 50 or older and who made more than $150,000 (FICA wages) last year, their catch-up contributions must be made on a Roth basis. If you do not currently offer a Roth plan but want to allow catch up contributions, you will want to get in touch with your retirement plan vendor. If you do offer a Roth contribution, make sure to amend your plan document and check that your payroll processes are updated so these contributions are properly routed for your eligible team members. AI is changing how we recruit and manage talent, but with these advances come new possible regulations. At the federal level, agencies are rolling out general guidance for employers to be transparent about how AI influences hiring and other employment decisions. States are moving even faster, with their own rules to prevent algorithmic bias and discrimination. Often, these regulations require you to disclose when AI tools are used, evaluate any potential for bias, and provide alternatives for applicants or employees who prefer not to be assessed by automated systems. If your bank operates across several states, expect to follow the strictest rule to stay compliant everywhere you do business. My advice? Review your employee handbook at least once a year and keep in close contact with your payroll vendors and state resources. They’re great partners in making sure your policies and systems are up to date. by Andrea Carter, SVP/Human Resources

by Kas Stewart, SVP & AAP Let’s talk cents!! We all know that no more pennies will be minted. So, what happens  now? There are billions of pennies still in circulation - one estimate is that there are 426 pennies for every person. There was a surge in demand for pennies, so there may be hoarding rather than circulation of pennies. Pennies are still considered legal tender, and The Federal Reserve is monitoring supplies weekly. The Federal Reserve is still accepting penny deposits, but as distribution centers run out of supplies, they will stop accepting deposits, so there may be shortages and businesses may begin rounding up to the nearest nickel or only accepting card payments.  Bankers can promote circulation by removing any barriers to consumer deposits like wrapped coin only. 2026 ACH Rule Changes: Detailed information is available on the NACHA website: NACHA.org. Search for New Rules and Risk Management Framework.    There are various deadlines and, in some instances, particular groups that are targeted.   NACHA will be requiring real time fraud monitoring in 2026. There has been a noticeable change in credit push transactions. This will become a part of the annual ACH audit and processes and procedures need to be in place.   Two Standard Entry Descriptions are also changing. Wages, salaries or any other type of compensation will need to be PAYROLL and e-commerce transactions will now be PURCHASE. Begin working with your originators now as the deadline is “No Later Than” March 20, 2026.   Faster Payments are always on the radar, but with the announcement from the U.S. Treasury Department that some payments will be made using FedNow, there is an expectation that interest in implementing this customer service product may increase. Where are you in this journey?  Have you vetted providers? Can The Bankers Bank address your questions or concerns? Reach out, we are here to help you.

DOUG FULLER, QUAIL CREEK BANK In addition to being Board Chairman for The Bankers Bank, Doug Fuller has been the President and CEO of Quail Creek Bank in Oklahoma City, OK since 2009. Prior to that, Doug worked in banking since the 80s and spent a few years as the Membership Director for  Leadership Oklahoma, as well.  He has been a Bankers Bancorp board member for two terms. Q: How has your term as Chairman been? A: In one word… fast! I can’t believe it’s already November and we’re talking about plans and budgets for 2026. It has truly been an honor to serve as Chairman of TBB. Being part of an organization that touches so many lives and makes a meaningful difference in our communities is deeply fulfilling. The world of banking continues to evolve rapidly, but I believe TBB is exceptionally well-positioned to lead with strength and innovation in the years ahead. Q: What do you value most about TBB? A: I’ve often said I’ve gained far more than I’ve given by serving on the TBB Board of Directors. I’m not sure how Troy keeps us all in line, but working alongside 14 different bank CEOs and leaders is both humbling and incredibly insightful. The relationships and shared experiences have made me a better banker—and hopefully helped make Quail Creek Bank a better bank as well.  Q: What do you see for TBB in the future? A: The Board is focused on several key strategic priorities: Retaining and growing our talented employee base Being a strong and efficient partner for our shareholder banks in meeting their lending needs Remaining relevant in a rapidly consolidating industry Expanding our footprint beyond our current markets And perhaps most importantly, continuing to invest in iWeb and positioning TBB as a leader in banking technology It’s an exciting time for TBB, and I’m confident we’re on the right path for long-term success. Q: Do you have any advice for fellow bankers? A: Treat people fairly. Keep your word. Always strive to do the right thing—and don’t be afraid of change. And never forget one of my favorite quotes from It’s a Wonderful Life: “Strange, isn’t it? Each man’s life touches so many other lives, and when he isn’t around he leaves an awful hole, doesn’t he?” It’s a good reminder of the lasting impact we as bankers can have on our communities.  Q: What activities do you enjoy outside of banking? A: Is there life outside of banking? I truly love what I do and am so grateful to have found a career that rarely feels like work. When you’re passionate about what you do, it makes life incredibly rewarding. Outside of the bank, I enjoy traveling (my calendar is always planned at least a year out), golfing (mostly for the social part), OU football (just got back from the OU- South Carolina game - my away game record is 11–1, although my bowl game record is another story), and spending time with family. I’m one of six siblings, my wife, Susie, is also one of six, and we are blessed with two wonderful adult children, Alex and Lissy. Q: What is a fun fact about you? A: I am a 12th generation descendant of Edward Fuller who came to America in 1620 aboard the Mayflower along with his wife, Ann and their son Samuel. Both Edward and Ann died that first winter in Plymouth, MA. Q: Any other message for TBB customers and shareholders? A: If you’re not already a TBB customer or shareholder, I’d strongly encourage you to consider becoming both. Our investment in TBB has been not only financially rewarding but also strategically invaluable. TBB continues to be an essential resource and partner for our bank.

by Miles Pringle, EVP & General Counsel There has been a lot of news about stablecoin since the passage of the GENIUS Act this summer. The act explicitly names banks as having a role, so bankers do need to learn more about stablecoins and their potential opportunities (and threats). With that said, it is still early days and there is more unknown than known.  For reference, stablecoins are a specific type of digital asset, distinct from  cryptocurrencies (like bitcoin) because they are pegged to a fiat currency – almost always the U.S. dollar. While some exult benefits of stablecoin, currently they are mostly used to facilitate cryptocurrency transactions. According to a Reuters article, “Nearly nine-tenths of stablecoin transactions are related to crypto trading while just 6% for actual payment of goods or services.” A recent survey published from the Federal Reserve Bank of Kansas City found that only 1.9% of U.S. consumers used crypto to pay for something in 2024. Outside of crypto-trading, the most promising use case for stablecoins are cross-border payments. Theoretically stablecoin international remittances could be faster, cost less, be available 24/7, and programmable through smart contracts.  There are still many hurdles international remittances face, like the necessity for currency exchanges on both ends of the transaction, fragmented networks, and issuer risks (Do you want to accept stablecoin issued by a hostile country’s bank?). Some banks are attempting to take advantage of this space, including several large international banks (such as Bank of America, Deutsche Bank, Goldman Sachs, and UBS) who are jointly exploring issuing a stablecoin pegged to G7 currencies. There are potential pitfalls for stablecoin issuers that bankers will be familiar with. Under the GENIUS Act issuers are required to hold reserves for their coins in highly liquid assets like U.S. Treasuries. What if rates go up, decreasing the market value of those holdings, and issuers find themselves without sufficient reserves? Issuers would need to inject more funds to account for those losses. There are real run threats to stablecoin issuers with no FDIC insurance.  Banks can offer traditional banking services to entities involved with stablecoins. They will need all kinds of help. For example, earlier this year Chase Bank stated it will allow institutional clients to use Bitcoin and Ethereum as collateral for loans. Custody services of digital assets is a potential opportunity for banks which will require investment in tech development or finding a quality vendor. There will be competition as there have already been 11 bank charter applications with the OCC for banks intending to offer digital asset services.  So, Friend or Foe? Today stablecoins are not much of a foe because there is very little current use of them outside of crypto transactions. It is a potential future foe if consumers actually adopt them which could move deposits or reduce transaction fees. Outside of traditional banking services, there are opportunities for those willing to invest in unproven use cases.  As you can see, I’m mostly negative about the utility of stablecoins. With that said, we should all keep in mind the Kodak example. In the 1970s and 1980s Kodak had a virtual monopoly on the camera film industry. Despite the fact that one of its engineers (Steven Sasson) invented the digital camera, Kodak failed to embrace the product until it was too late. According to Sasson, Kodak executives took the approach that “Print had been with us for over 100 years, no one was complaining about prints, they were very inexpensive, and so why would anyone want to look at their picture on a television set?” In 2012, Kodak filed for bankruptcy during which it sold off many of its assets and patents.  I do foresee that banks have an asset that most stablecoin issuers do not have – trust. In a world of anonymous companies issuing digital coins, community banks have real doors with people you can speak with. Community banks need to be mindful of changing technology (which they always have been). However, they should also make sure they do not lose the competitive advantages they do have.

by Amanda Martin, VP/Calling Officer The Independent Community Bankers Association (ICBA)’s Subsidiary, ICBA Payments, has teamed up with Pidgin to help make Instant Payments easier for community banks to tackle. The Bankers Bank also has a partnership with Pidgin and is excited about what this additional alliance will mean for customers.  As the world of FedNow continues to grow, many community banks seem to find themselves stuck in receive-only mode. Whether that is due to cost, core, or personal choice, the fact is that someone needs to send for others to receive.  Pidgin is a secure faster payments platform that can both send and receive instant payments. It has a central connection point to FedNow, as well as other faster payments networks such as RTP or Zelle, which allows community banks to deliver options to their customers. Pidgin works straight from the customer account, routing payments directly to and from financial institutions. That means that funds are kept with the bank, as opposed to being held in a virtual wallet with a fintech provider, which creates safer transactions and lower fees.  What does this mean for you? As a customer of The Bankers Bank, you have the option of using Pidgin! Pidgin integrates into most cores and allows customers to initiate payments through a banking app and/or online banking program. Pidgin processes the payments, settlement for entries comes from Fed, and Liquidity Management is a service TBB provides to monitor balances after hours, on weekends and holidays.  The Bankers Bank is excited about what the new partnership between Pidgin and ICBA will entail. Today’s fast-paced market requires community banks to be ultra-competitive, and this option can help us all navigate the payments landscape with more ease of mind.  If you have questions about Pidgin, FedNow or other payment options, please reach out to your calling officer. TBB is here to help!

by Kas Stewart, SVP & AAP ISO20022 has been implemented. This was so much more than a system upgrade, it is a fundamental change to how we all move money. Processes have changed, which means we all must make some adjustments, but soon this will become routine and comfortable.  NACHA will be adding five new rules in October 2025 through June of 2026 related to fraud risk. These apply to both originators, third party senders and receiving financial institutions at various dates during this timeframe. The first implementation is for ODFIs, Third Party Senders and Third Party Service Providers, and Originating Financial institutions with more than 10,000,000 items in 2023. The deadline for this is March 2026. The second phase of implementation is June 2026 and applies to all others.  You may want to review the risk management framework on the NACHA website as well as the rules. There is also a webinar presented by Debbie Barr that provides great detail. It will be up to each bank to decide how they will monitor and what solution they will use to carry out this process. NACHA is not expecting technical solutions, although that is an option. What they expect to see is risk-based processes and procedures. Suggestions include beginning the process now by reviewing your ACH risk assessment and then also performing a Gap analysis, establishing some parameters/red flags based on certain entry class codes or monitoring for anomalies in the value of items received by customers. And beyond deciding how you identify fraud, the steps you will take after the fraud is detected. They will expect to see documentation when you perform your annual ACH audit. There is no expectation that every transaction is checked. The monitoring does not have to be done prior to posting. Deciding that you have no risk and doing nothing is not acceptable.  On a separate note, NACHA has also recommended a best practice for ACH returns. Use Same Day ACH files for return entries that were not received as same day ACH.

by Steve McIlhaney, SVP , Director of Business Development Despite the many digital payment options and advancements, check fraud continues to surge throughout the US. Check fraud involves tens of thousands of incidents monthly. The losses incurred during the first six months of 2025 exceed $3 Billion! The bad actors come in all shapes and sizes, but in most cases the activity is driven by organized criminals exploiting gaps in our traditional payment method. Complicating the issue, financial institutions encounter perceived legal barriers hindering timely info-sharing about fraudulent activities, particularly related to “mule” accounts used by fraudsters to launder large sums. The uncertainty around privacy regulations often causes hesitation, delaying responses and giving fraudsters crucial time to cash compromised checks. However, organizations like NACHA and ECCHO, along with many national and local trade associations have established fraud directories to help improve timely communication among financial institutions. Additionally, there is proposed legislation to create a Federal Payments Fraud Task Force, to help bring a coordinated effort to respond to this nationwide threat. Community FI’s can proactively mitigate these risks by strengthening their internal controls, training both frontline AND back-office staff and by implementing advanced fraud solutions. There are service providers who can significantly enhance detection by quickly identifying suspicious checks at the point of deposit, helping banks prevent fraudulent transactions – before losses. Adopting Positive Pay systems, regularly updating customer education initiatives and enhancing internal communication channels can all reduce vulnerability. Given the ongoing threat, FI’s must be vigilant. Stay informed, implement proactive measures, and collaborate with your peer FI’s and trade associations. Information sourced from  Kathy Field, Finovifi

Ryan Wedel has joined The Bankers Bank as Senior Vice President of Commercial Lending, bringing with him almost 30 years of banking experience – the last 16 years at Landmark National Bank in Kansas. While at Landmark, Ryan successfully led the Commercial Lending team across both metropolitan and mid-market areas, including Kansas City, Lawrence, Topeka, and Manhattan. He most recently served as Landmark’s Chief Strategy Officer, where he drove strategic initiatives and innovative solutions. Ryan graduated cum laude with a Bachelor of Science in Finance from Emporia State University where he played basketball for the Hornets.  He later attended the Graduate School of Banking at Colorado and was awarded the Certificate of Excellence. Outside of his professional endeavors, Ryan remains actively engaged in community events. He and his wife, Caitlin, have been happily married for over 15 years and are proud parents to two daughters. Their daughters participate in various sports, including soccer and volleyball, keeping the family immersed in an active lifestyle.

This year TBB returned to the Quail Creek Country Club for its Annual Shareholder Meeting. We were able to recognize outgoing board members Barry Anderson (F&M Bank), Clayton Lodes (First National Bank and Trust Company of Ardmore), and Richard Sims (Wellington State Bank) who have helped lead the bank to its most profitable years ever. Clayton served as Chairman for the past year and stated that TBB is in good hands with its current board and management leadership.  CEO Troy Appling talked about the past year for the entire Bancorp. Forward in Technology continued to provide exceptional IT service to banks. Our audit firm was rebranded to The Bankers Solutions (TBS), doubled its staff, and added new services such as loan review and HR consulting.  The word for TBB at the Shareholder Meeting was extraordinary. Based on solid loan growth and some extraordinary items, TBB had the best year in its 38-year existence. As a result, shareholders were thrilled to learn that the Bancorp was paying a $25/share dividend totaling more than $1.7 million.  The Shareholder Meeting is a great opportunity to learn more about what is happening at the bank and for the Board and Staff to thank shareholders for the investment they have made in the company. Because of them, TBB and its affiliates help community banks thrive in a competitive banking environment, now and throughout 2025. John Tom Anderson John Tom has been in banking for more than 45 years and currently serves as a director and CEO of F&M Bank in Edmond, Oklahoma. John Tom is the son of one of TBB’s founders, John V. Anderson, and this is his third term on the Board of Directors. He also serves on the Board of Directors for Sovereign Bank, United Life Insurance Agency, F&M Insurance Agency, and the Citizens Potawatomi Nation Gaming Commission.    John Tom is an alumnus of the Graduate School of Banking at the University of Wisconsin-Madison. He has served on the FDIC’s Minority Depository Institutions Subcommittee to the Advisory Committee on Community Banking and has been inducted into the Choctaw Hall of Fame. John Tom and his wife Brenda have 3 children (Amy, J.T. and Zane) and 8 grandchildren.  Evans McBride A forty-year banker, Evans currently serves as President and CEO of First National Bank & Trust Co. of McAlester where he has been since 2006. This is his third term on the Board of Directors, and he is a past Chairman. Originally from Texas, Evans obtained his Bachelors degree from Angelo State University and graduated from the Graduate School of Banking at Louisiana State University.  Evans is a leader for numerous organizations. He is a Director for the Oklahoma Bankers Association, Trustee for Advantage Health Plans Trust, past President of the McAlester Area Chamber of Commerce & Agriculture, past Board Member of McAlester Regional Health Authority as well as Eastern Oklahoma State College – just to name a few. Evans and his wife Amy have two sons and are members of the First United Methodist Church.  Casey W. Barrett Casey is the President and CEO of Texas Bank in San Angelo, Texas, where he has served since 2018.  A long-time TBB customer, this is Casey’s first term on the Board of Directors. He is very active in the San Angelo community and is a member of the San Angelo Health Foundation Board of Trustees, San Angelo Stock Show and Rodeo Executive Committee, San Angelo Water Advisory Board, along with serving as a Deacon for Glen Meadows Baptist Church.   Mr. Barrett started his banking career as a State Bank Examiner for the Texas Department of Banking before entering the “other side” of banking as Chief Financial Officer for Texas Financial Bank and then as Executive Vice President-Senior Lender for First National Bank of Ballinger.  He is committed to community banking and proudly serves on the Texas Bankers Association Board of Directors as Government Relations Chairman and as a Trustee for Advantage Health Plans Trust representing banks across Texas, New Mexico, and Oklahoma.  He is a graduate of Texas Tech University as well as the Southwest Graduate School of Banking at Southern Methodist University.  Casey and his wife, Kaley, have three daughters, Rylee, Preslee, and Allie.

by Kas Stewart, SVP & AAP ACH NETWORK If your bank provides international wire services, this proposal will create an alternative. NACHA has issued a request for comments, which are due by May 30, 2025. The purpose of the change is to increase the usefulness of this transaction. In 2024, there were 121 million IAT debits and credits processed. In addition to the proposed changes to IATs, there are two items that pertain to all ACH payments. One would specifically define what valid characters are for ACH records and the other would have the current Return Reason Code R16 apply solely to frozen accounts. For details, log on to the NACHA website.  LET’S GO TO THE MOVIES!! ISO20022 If you are still struggling with the change to the existing wire format, which will be implemented on July 12, 2025, and applies to every financial institution, please take time to review webinars that were presented at various times by the Federal Reserve. These are on demand on YouTube. Search for Fedwire Funds Service. You will find an introduction and overview, My Standards, Tools and Testing and a deep dive on customer transfers.  Are you ready? If you have not done so, please inventory the systems that support your wire operations like wire forms, online banking, mobile payments, treasury operations, compliance screening, fraud monitoring, accounting, and billing. Ensure that your internal software developers or vendors have acted and are ready. Call The Bankers Bank, if you have questions or if you believe you are ready for July 12 and you would like to begin testing. OUR OLD FRIEND, FEDNOW! Participation levels continue to increase with over 1300 financial institutions  using the network. If you are still hesitant about usage, this is an innovation that would provide a new product to your customers, could increase revenue, and could be a customer retention tool. Fed has said the service is safe, efficient and has some tools in place to monitor risks.  These include a negative customer list and the ability to set up thresholds, which will allow you to define value and velocity thresholds by customer segment to fit customer needs and risk tolerance. Let us know if we can help you.

Korbet Moore is a finance professional with experience in credit underwriting, compliance and consulting. He has worked for several years as a consultant, specializing in loan review, interest rate risk analysis, collateral risk management and policy audits. Korbet has developed expertise in stress testing and financial scenario analysis, particularly in relation to asset and liability management. While earning his finance degree at Oklahoma State University, he served as an intern with Cattlemen’s Bank through the Oklahoma Bankers Association, gaining valuable experience in the banking sector. Korbet is committed to helping banks optimize financial operations and manage risks effectively. The Bankers Solutions (TBS) is a sister company to The Bankers Bank and Forward in Technology .  TBS’ team of eight bankers has performed compliance audits and internal audits for banks in Oklahoma and Texas for over 20 years. TBS has expanded their footprint into New Mexico and Kansas, and now provides even more services including outsourced internal audits, credit reviews, interest rate risk reviews, HR consulting, and other consulting services.