by Kas Stewart, SVP & AAP The Federal Reserve has announced the retirement of Fedwire Funds Offline Services on December 31, 2024. If you do not have a Federal Reserve Account, this change will not affect you. If you are using this service as a contingency wire service for those occasions when a wire is misdirected to your Federal Reserve account, you will need to make alternate arrangements.   The Bankers Bank offers a Federal Reserve Service Provider arrangement that allows us to function as your wire processor and allows you to send, receive and transmit wires using your routing transit number. This does not replace the wire services at The Bankers Bank, it supplements them. When implemented, Federal Reserve wires are redirected to your account at The Bankers Bank. Current wire fees apply, but The Bankers Bank does not charge for this service.   If you would like to learn more about this possibility, please contact your Bankers Bank relationship manager for more details and the agreement that needs to be completed for the Federal Reserve.  Please start this process as soon as possible to comply with the December 31 deadline. ISO20022 You are already receiving information about the Federal Reserve plan to change the existing wire format to ISO20022 on March 10, 2025. Staff at The Bankers Bank has been involved with this project for some time to prepare for  this migration. You may want to inventory systems that support your wire operations and reach out to vendors to ensure their readiness also. Some examples could be Customer facing systems like online banking or mobile payments, cash management systems, compliance screening or fraud monitoring, or accounting and billing.

The Bankers Bank held their 35th Annual Golf Tournament at the Oak Tree Country Club on Monday, June 10th. The weather and course were absolutely perfect! It was great to see so many familiar faces and some new ones too.  A special thank you to our Sponsors as well as the TBB volunteers for their part in making this event a great success. We cannot do it without you! See you next year – June 9, 2025 C Flight: 1st:    Justin Hull, Justin Edwards, Scott Keeney, Brett Windsor 2nd:   Bill Mitchell, Rusty Royal, Gary Valentine, Ross Royals 3rd:   Deke Alexander, John Gosser, Steve McIlhaney, Dustin Bonnett B Flight: 1st:    Mark Poole, Tommy Talley, Ryan Alexander, Mark Warren 2nd:  Bruce Benbrook, Jim Peck, Terry Cook, Chris Conn 3rd:   Shanon Butler, Jason Sheperd, Jon Baggs, Nick Huxman A Flight: 1st:    Manuel Quintero, Robert Garton, Brock Walker, Heston Brown 2nd:  Joe Morgan, Andrew Patterson, Zach Simpson, Calvin Becker 3rd:   Matt Jackson, Garrett Browning, Channing Gruft, Jim Bob Browning Thank you to our Golf Classic Sponsors!

by Kas Stewart, SVP & AAP George Russell “Pat” Kelly 4/29/1933 – 5/26/2024 Pat Kelly began his  banking  career at Liberty National Bank, shortly after graduation from  high school.  He worked there  for 43 years before joining The Bankers Bank, where he continued to call on banks across the state of Oklahoma.  Pat loved his customers and was a strong advocate for all.  Errors or omissions were quickly resolved.  “Don’t follow me, I am slow.”  He hated tickets, so he left early and drove at a speed that was comfortable. Fence posts  “flew” by like telephone poles. Pat loved a good joke, whether he was playing it on someone, or they were playing one on him.  He also liked puzzles, jigsaws, crypto quip and the daily newspaper crossword, which he and his wife, Beverly, worked together – one completing the across words and the other taking the down words. Pat was a cowboy, unafraid and always active. He lived a full life.   There were  stories from the Troop Trains,  baseball and  basketball at OCU with Abe Lemons and Paul Hansen, the “rush” he felt when he decided to try bull riding and then there was racquet ball.  Pat also hosted an annual Gin tournament with some old banker friends at his cabin at Porum Landing, where he (and his partner) held the record at 28-2. Pat will not soon be forgotten as many of us are reminded daily of his words of wisdom: If you are on time, you are late! Take the stairs as long as you can. Never park directly in front of a bank, those spaces are for bank customers. Only one question remains,  if your name is George Russell Kelly, where did “Pat” come from?   Rest in Peace, dear friend.

by Mike Murphy, EVP & Chief Risk Officer Bankers Bancorp’s board is excited to announce the rebranding and relaunch of its audit and consulting subsidiary. The Bankers Solutions (TBS) has been operating for 20 years as Bankers Professional Services, Inc, conducting compliance audits, internal control reviews and other similar services. We are now going to build on that foundation by adding other audit functions and consulting services. We’re also adding to our team to meet the growing needs of community banks in our markets.  In addition to the new area of consulting, we provide a wide range of audits for the lettered regulations from BSA to Reg Z, along with special audits in the areas of ACH, Vendor Management, Funding and Interest Rate Risk Independent Reviews, Internal Control Reports and Director Exams. Our consulting team can help you fill those gaps when key employees leave or you just need additional assistance. We can help you analyze the financial performance of branches or departments; conduct capital, funding or strategic planning; manage your enterprise risk; review your HR services; answer regulatory findings; and monitor and stress test for loan concentrations. The Bankers Solutions team is growing and ready to help you build a better bank. Dustin Loeffler, who has been helping community banks for more than 20 years, continues to manage the audit team and guide compliance programs. Shannon Truax has been in banking for 30 years and is one of our audit managers, specializing in independent testing of Bank Secrecy and Community Reinvestment. Hollie Baker and Christine Reynolds round out our team well – each with more than 15 years of compliance or accounting experience that they can lend to support you in your mission. Two new hires are starting in August: Shannon Tate has over 20 years of operations and compliance experience in banking and will be one of our audit managers.  Jesse Gamboa, who has six years of FI accounting experience, will be a staff auditor. TBS understands the challenges and expenses our industry faces from the burden of increasing regulation. With a deep comprehension of evolving regulatory landscapes, we offer services with experience that is bank specific. I’m excited to lead TBS and its team as we find new ways to sustain community banks while I also continue to serve as TBB’s EVP and Chief Risk Officer. For a free consultation or to visit about your bank’s needs, please contact me or visit www.thebankerssolutions.com .

by Mike Murphy, EVP & Chief Risk Officer As a long-time banker who used to be an examiner, I am sometimes conflicted like the guy with the angel and the devil arguing on each of my shoulders. This is especially true when working with regulators whether during the exam process, filing regulatory reports or even doing a branch application. You can get so frustrated, but then you ask yourself why, and try to look at it from their perspective.  From the Fed’s Commercial Bank Exam Manual, “Regulation and supervision are distinct, but complementary activities. Regulation entails establishing the rules within which banks must operate…Once (the rule is adopted), the Federal Reserve’s supervision process includes monitoring, inspecting, and examining banks to assess whether a bank is in compliance with (those rules).” How many of you have read the sections of the exam manuals that deal with your areas of responsibility at your bank? To aid in gaining that perspective, here are some tips: The bank supervision team is often made up of people who are relatively new to banking. They have not seen everything you have seen in the banking industry, and they certainly do not know your bank like you do. That is why you need to create the narrative – in your minutes, in your policies, your procedures, your credit memos, and your responses to their questions. This does not have to be TLDR (too long didn’t read), but it does need to tell the story you want to tell honestly.  Know your examiners. Each agency now uses a Central Point of Contact approach. This CPC is the one reviewing your quarterly numbers offsite and calling you with questions. If your bank’s team is choosing to try a new product or service, especially one that is out of the ordinary, then call them and walk them through your plan. Give them time to research the matter, discuss it with others and get back to you. Be proactive. Take the time to do an honest and thorough review of the CAMELS components at least annually and certainly before an examination. Know where you stand, where your strengths are and your weaknesses. This process will help you gain a plan on how to address your weaknesses and accentuate your strengths. And again, it will help you tell the story you want the regulators to hear. A final reminder: be kind and respectful to the exam team or your regulator. Follow the golden rule.   If you want to talk with someone confidentially about your exam, regulatory requirements, or something else that might impact your relationship with the regulators, I would be happy to help. Just call me at 405.613.8018 or email me at mmurphy@tbb.bank.

by Kas Stewart, SVP & AAP A breakdown of your bank’s instant payment options ... If you have questions about instant payments or would like to start utilizing FedNow and/or RTP, contact your Calling Officer to schedule an informational call with our team of experts!

On Friday, March 29th, TBB had our Annual Shareholder Meeting. Outgoing Chairman, Evans McBride, commented on the growth and success of TBB during his term on the Board. CEO and President, Troy Appling, was pleased to report that TBB had three record years in a row. Another significant dividend of $20 per share was paid with Bancorp subsidiaries Forward in Technology and Bankers Professional Services, Inc. contributing to the dividend for the second year in a row. We also welcomed new board members Adam Anderson and Mark Poole. Adam Anderson | President & CEO Bank of Commerce, Catoosa, Oklahoma

by Shannon Truax, Bankers Professional Services, Inc. What You Should Know About BSA/AML/CFT and What is With All of the New Acronyms? The Anti Money Laundering (AML) Act of 2020 has brought some changes to what we have historically known as the Bank Secrecy Act (BSA). Many regulatory agencies, including the Financial Crimes Enforcement Network (FinCEN), are now using the terms AML/CFT (Countering the Financing of Terrorism) instead of BSA/AML to better align with the AML Act of 2020. Reference to the BSA is not being replaced, only enhanced. The Federal Financial Institution Examination Council (FFIEC) continues to provide the electronic versions of the “BSA/AML” manual and examination procedures.  In recent years, we have seen some other new acronyms arise such as replacing Privately Owned ATM (POATM) with Independently Owned ATM (IOATM) and Non-Government Organizations (NGO) with Non-Profit Organizations (NPO). These are just changes to the labels. The risk-based requirements have not changed.  With the FinCEN BOI Page Up and Running, Can Banks Stop Asking for Beneficial Ownership Information Yet? One change that we are seeing and need to take note of is regarding Beneficial Ownership Information (BOI). Pursuant to the Corporate Transparency Act (CTA), FinCEN previously issued a final “Reporting Rule”  effective January 1, 2024 which requires certain corporations, LLCs, and other entities to report information on their beneficial owners to FinCEN utilizing a secure database. The CTA’s next step was the “Access Rule.” This final rule, effective February 20, 2024, created circumstances in which beneficial ownership information is disclosed to authorized recipients. It also laid out the plans for protection of the data. The final step that financial institutions are waiting on will revise current Customer Due Diligence (CDD) requirements. This long-awaited rule will bring the current CDD rules into conformity with the AML Act of 2020 and the CTA. It will also account for a financial institution’s access to the FinCEN BOI database and reduce any burdens on financial institutions and legal entity customers that are unnecessary or duplicative of the CTA. Unfortunately, we do not have a timeline for the third rule yet. For more information see https://www.fincen.gov/boi.  How to Ensure a Successful BSA/AML/CFT Audit or Exam – Cool Tips and Hot Topics: Exams and external audits always go better if there is an organized auditor/examiner and an organized client. Keeping things organized on both ends will be key in adhering to the anticipated timeline. Make sure to schedule or attend meetings throughout the process to discuss potential problems or to gain clarity. If an auditor or examiner seems to inquire about processes that do not seem entirely relevant to the audit, they are trying to understand the operational processes to conduct a thorough audit or exam.  Some hot issues involve Cannabis Related Businesses (CRB) and Money Service Businesses (MSB). If your bank has clients in either category, make sure you are following Enhanced Due Diligence (EDD) and that your customers are properly risk-weighted, and you are maintaining required documentation. Another hot topic is Currency Transaction Reports (CTR) and Suspicious Activity Reports (SAR) and ensuring that they are carefully reviewed for any technical reporting information. Although both forms have fields that are asterisked as “critical” fields for technical filing purposes, banks should provide the most complete filing information available regardless of whether or not the fields are deemed critical. The filing timeline requirement of both CTRs and SARs is very important.  Lastly, Automated Surveillance Monitoring (ASM) is becoming more widely used and banks should ensure they also have enough staff to manage the alerts and are periodically reviewing, testing, and tweaking the alerts and scenarios. Documentation of ASM reviews and changes should be retained.  Some tips to help guide you through an exam or audit is to check your policies and risk assessments prior to an exam or audit to ensure that any changes within the regulations or the Bank’s processes or products are addressed.  Additionally, ensuring that your Board of Directors stays informed with any developments or deficiencies within the BSA/AML/CFT program. Lastly, be open to auditor feedback since they have the opportunity to read more external audits and peer state and federal examination reports. Do not be afraid to push back though if a finding seems to be unfair or cannot be supported.

by Kas Stewart, SVP & AAP ... the Bankers Bank provides Investment Safekeeping Services? Our team provides superior service, support and assistance. Let us oversee your portfolio activity so you can concentrate on your customers.   Competitive pricing Advance notice of maturities and coupon payments Separate accounting for your customer securities Waiver of fees for new depositors Fifty percent credit for withdrawal fees from current provider Transaction posting to your DDA  Easy access electronic reporting Contact your calling officer for more details and a cost analysis.

by Kas Stewart, SVP & AAP There is something about starting a new year that creates the opportunity to start fresh, make changes, and explore new  and changing services. As you review 2023 and rethink 2024, please include The Bankers Bank  in that process. Reach out to your calling officer and ask for a review of our capabilities. We strive to keep community banks on the leading edge and have a full range of services to do just that. Are you fully utilizing iWeb?  Have you logged on to the website, www.tbb.bank, and viewed the iWeb videos?  You may find something new, an answer to a question or refresher training for your employees.   Do you have suggestions for improving iWeb? Are there reports we could offer in iWeb that would save time for you? Did you delay implementation of FedNow in 2023?  The Federal Reserve now has 400 participants, and the momentum will only increase.  Should we discuss the process and talk about use cases? The Bankers Bank is also a funding agent for RTP, a faster payment product that has been available for 5 years.  Should we compare RTP and FedNow and find the best alternative for your bank?  Instant payments appear to be a high priority. Does your bank offer SBA loans?  The Bankers Bank added an SBA loan processor last year to assist with the application process and submitting the loan. Would you like to earn a slightly higher rate on excess deposits?  Check out our Money Market Deposit Account. Have you explored the services that subsidiaries, Forward in Technology and Bankers Professional Services, Inc., and our partners provide? The Bankers Bank, never a competitor, always a partner.

by Amanda Martin, AVP/Calling Officer With heavy hearts, we said goodbye to the beloved Road Warrior dog, Sammy. She held a place in so many hearts, both those of employees and customers alike. There was no place Sammy would rather be than on the road with Jim Chapman, or “Jimmy C” as many know him, a Calling Officer at The Bankers Bank. Sammy visited banks all over Texas and Oklahoma and her happy face brought joy to everyone she met. She was truly the best co-captain. When not traveling, Sammy spent her days in Kingston, OK, and enjoyed every minute of her country life.   There is a quote that says, “If the kindest souls were rewarded with the longest lives, dogs would outlive us all.” Nothing is more true of Sammy Dog. Her life was too short and she will be missed by many.

On January 19th, TBB EVP and General Counsel Miles Pringle was sworn in as the 2024 Oklahoma Bar Association president. He will lead the OBA’s 17-member Board of Governors, which meets monthly and governs the 18,000-member association. Supreme Court Chief Justice M. John Kane IV administered the oath to officers and new Board of Governors members during a ceremony at the state Capitol Courtroom in Oklahoma City.  “The bar association is in a good place today because of the leaders we’ve had. I hope to build upon that this year. This is a big honor for me, and I appreciate the privilege to serve as president,” Miles said during his inaugural address.  A native Oklahoman and third-generation attorney, Miles is licensed to practice law in Oklahoma, Missouri and Texas. He has served the Bar Association and legal community for many years, including as governor and vice president of the OBA Board of Governors, chair of the OBA Financial Institutions and Commercial Law Section and chair of the OBA Legislative Monitoring Committee. In 2018, he was awarded the Oklahoma County Bar Association Geary L. Walke Briefcase Award, and in 2021 and 2022, he received the OBA President’s Award.     Miles is also a recognized leader in the banking community and very involved in the local community. He has been a teacher for the Oklahoma Bankers Association Intermediate Banking School and other banking organizations. In 2022, he was named on the 40 Under 40 list of national emerging community bank leaders by the Independent Community Bankers of America. Miles is also a board member of the Oklahoma City Rotary Club (Oklahoma’s oldest and largest civic organization) and has served on the boards of local nonprofits.  The Oklahoma Bar Association, headquartered in Oklahoma City, is an arm of the Oklahoma Supreme Court created to advance the administration of justice and to foster and maintain learning, integrity, competence, public service and high standards of conduct among Oklahoma’s legal community.