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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.

by Andrew Johansen, Forward in Technology 2023 was a phenomenal year for Forward In Technology (FIT). We extend our heartfelt gratitude to our valued clients who have been integral to our success. In 2023, we were thrilled to welcome a substantial number of new clients, notably from the non-profit sector, while also expanding our community bank relationships and other industries. This influx of diverse clientele has enriched our experience, broadened our expertise, and strengthened our communities. The growth in our client base and depth with long-term clients has been a catalyst for FIT’s expansion in many areas.  We especially realized a need to welcome new members to our team, enhancing our capacity to deliver exceptional service. It is vital that FIT have a strategy of controlled growth, maintaining and even elevating the level of customer satisfaction that FIT is known for. A significant highlight of 2023 was our intensified focus on cybersecurity. We evaluated and improved our cybersecurity strategies to meet the evolving challenges in the digital landscape. Our efforts in bolstering security measures have not only protected our clients from emerging threats but also strengthened their trust in our capabilities. As we have turned the page to 2024, FIT is poised for another exciting year of innovation and strategic development. Our strategic plan for the coming year is focused on continuing our growth trajectory while ensuring that we maintain the high standards of service that our clients expect from us. We are particularly excited about the implementation of new technologies and processes that we have planned. This includes improving our efficiency, further enhancing our cybersecurity offerings, leveraging cutting-edge technologies to provide even more robust solutions to our clients.  In 2024, FIT will also continue to focus on employee growth and development. As part of our strategy to nurture a positive and productive work environment, we will be providing our team with more opportunities for professional development. This not only benefits our employees but also ensures that our clients are supported by a highly skilled and knowledgeable team. Looking back on 2023, we are proud of what we have achieved and are thankful for the trust our clients and shareholders have placed in us. As we look ahead to 2024, we are energized by the opportunities that await. Our commitment to excellence, innovation, and partnership remains steadfast. We are enthusiastic about continuing our journey of growth and are eager to bring our clients and shareholders along with us on this exciting path forward in technology.

By Kas Stewart, SVP and AAP, FedNow At last report there were more than 100 participants enrolled in FedNow. The Fed’s target for the end of the year is 300 participants. The Federal Reserve hosted an instant payments symposium in Chicago in early October. Of particular interest was a presentation from Dave Lebryk from the U.S. Treasury. He outlined the current plan for usage of instant payments at the Federal Government level, which is very limited at this time. If you would like to read the article, it can be located at: https://explore.fednow.org/explore. Click on the News Center building, click on “enter the building” and the article is easily available.  Please call The Bankers Bank if you have questions about FedNow or need assistance in moving forward with the product. Fedwire Move to ISO20022 The Federal Reserve will be adopting ISO20022 as a new messaging format for Fedwire Funds Service in March 2025. In advance of that move, some changes are being made to data files for Financial Institution Reconcilement Data and Statement of Account Spreadsheet File. These reports are generally used by larger, more complicated institutions, but if you are a user and we can help, please call. The Bankers Bank will implement the changes to the wire format on March 10, 2025, and we do not believe this will be an issue for our users. Fedwire Funds Offline Service The Federal Reserve has announced they will retire the Funds Offline Service December 31, 2024. If your Business Continuity plans include using offline wires as a last resort, you will need to consider revising your plan. A new contingency service using FedLine Direct or FedLine Advantage will be available January 2, 2025. The Federal Reserve will provide updates and information throughout 2024. TBB’s Money Market Account Have you explored this additional benefit at The Bankers Bank? Competitive rate Ease of entry Centralization of funds

By Amanda Martin, AVP & Calling Officer By Amanda Martin, AVP & Calling Officer ‘Tis the season! Americans, me included, typically spend heavily during the holidays but in today’s economy, many could be changing the way they shop. How do you, as a community banker, use this season while supporting your customers? Get in the holiday spirit with these five marketing strategies to help your bank shine throughout the most wonderful time of the year. 1. Offer a Skip-a-Payment Promotion Consumers are always in need of extra funds this time of year. Offering qualified loan customers, the option to skip a payment in the month of December is a great way to create customer loyalty! Remember to charge a small fee so your end-of-year numbers stay solid, too. 2. Cash Incentives The increased need for cash during the holidays makes it an opportune time to offer cash incentives. If you want customers to sign up for a particular product or program, offer up to $200 +/- in incentives. Trying to cut down on paper statements? Offer $10 when customers sign up for e-statements. Want a little extra publicity? Call up your local media outlets and let them know that you are randomly swapping out $20 bills in your ATM for $100s! There are a ton of ways to give cash while gaining business, all while controlling the bottom line. Don’t forget to include disclosures in any advertisements! 3. Get Festive on Social Media Spread holiday cheer on your social channels - they are an online extension of your bank, after all! Think of fun ways to treat your customers and give back to your community all while possibly gaining new followers and therefore, gaining potential business! A few ideas include doing contests like 12 Days of Gift Card Giveaways or a Holly Jolly Photo Contest that your customers can enter. You could also donate $1 to a local charity every time someone uses your special #holidayhashtag. 4. Provide Savings Tips People look to their bank for financial advice, so be sure to provide that during the holidays with some savings tips. Whether you share them on social media, print out reminders for your drive thru tubes, or add tips to the slideshow in your lobby, you never know who you could help. Even better if those extra dollars saved stay in your core deposits, right? Here are tips you could share: a. Participate in No Spend November and/or Don’t Spend December where you don’t spend any money on yourself (expect necessities, of course) and put that money towards gifts, instead. b. Make a gift giving budget per person and stick to it. c. Remember to account for extra costs besides gifts. Think: wrapping paper, greeting cards and stamps, Christmas cookie ingredients, trees, and décor, etc. It all adds up! 5. Embrace the Spirit of the Season in your Community A community bank is a vital part of the community it serves so invite your community into your bank! Get into the spirit and decorate to the nines, host pictures with Santa, put up a free hot cocoa and cookie bar, collect donations (like canned goods, coats, toys for tots, etc.), wrap gifts for free, sponsor (and attend) local events, and give back to your customers in simple ways like branded canned cranberries at Thanksgiving or black-eyed peas for New Years ... or, our favorite, bags filled with chocolate nuggets! Above all, fill your hearts with the spirit of the season and share that joy with your customers. Happy Holidays from everyone at The Bankers Bank!

By Laura Coale, Marketing Officer It is that time of year again! The annual delivery of bags of chocolate is underway. TBB employees look forward to this event every year. Preparation begins months in advance to set delivery routes, and order chocolate and other supplies. But we could not do this without the efforts of our Nicholas “Nicky” to fill over 900 canvas “money” bags each year. Even after bagging thousands and thousands of nuggets, he still loves chocolate. “We are so grateful to TBB for giving Nicholas a chance to do something meaningful at a company that has always embraced the possibilities of every individual, no matter what their “special needs” might be,” said Nicholas’ mom, Debra. Nicholas takes his job very seriously. If you stop to say Hi while he’s working, don’t plan on staying long. He has work to do and after a hug and a smile, will get right back to it. And whatever you do, don’t touch the chocolate! “If you try to take even one little piece of chocolate, he will let you know about it. It doesn’t matter who you are, he is doing a very important job and it’s HIS candy for HIS bags!” Debra continues, “Nicholas truly feels like a part of TBB, and he is always so excited about the cards, letters and special gifts sent to him from the banks that receive the candy.” Nicholas and his mom feel it is an honor to continue this tradition at The Bankers Bank. For us at TBB, the true honor is just having this guy around.

By Kas Stewart, SVP and AAP There are iWeb tutorials available on the TBB.bank website? Do you need to train a new employee? Or refresh training? Do you use iWeb Quicklinks? What are Affiliate wires? Would Transaction Tracker save you time and provide necessary information to a customer? Check out iWeb Videos located in the customer access tab, Resources, under iWeb/Operations. Domestic wires Incoming wires Affiliate wires Transaction Tracker Coin and Currency iWeb Quicklinks

By Troy Appling, President & CEO Last month the Conference of State Bank Supervisors released the 2023 Annual Survey of Community Banks. Net interest margin and cost of funds were the top two concerns for bankers, with deposit growth being a close third. For example, nearly 89% of bankers listed net interest margin as being “extremely important” or “very important.” We completely understand those concerns. More importantly, The Bankers Bank can help find solutions. In addition to Fed Fund lines and other loan products, our partially owned subsidiary – First Bankers Bank Securities, Inc. – can help our banks with brokered deposits and other sources of funds. It might be worth a phone call to see what they can do to help your bank. Loan demand was less significant according to the report, with 61% of bankers listing it as “extremely important” or “very important.” With that said, strengthening the loan pipeline and developing new customers is always a priority. This year TBB began helping our banks with Small Business Administration loans as a lending service provider. Our employee, Leslea Spears, has years of experience helping banks book SBA loans, including meeting with loan officers so that they are more aware of potential opportunities. Set up a meeting with Leslea so that she can walk you through the process. The report also made clear the importance of technology. 91.5% of respondents view existing technology as “both a liability and an opportunity equally” or “more of an opportunity than a liability.” Responses were similar for how bankers view the future of technology. The Bankers Bank agrees that technology is critical in how we offer correspondent banking services now and in the future. In fact, our board of directors has emphasized smart technology development in our strategic plan. This year we have implemented many changes to iWeb and there are more to come in 2024. As the holiday season nears, I want to make sure you know how thankful we are to do business with you. It is a trust that we do not take for granted. We look forward to seeing you on our candy deliveries, and please let us know what we can do to help! Sincerely, Troy Appling, CEO

By Kas Stewart, SVP and AAP FedNow is live! The Bankers Bank is proud that we were among the first to become fully certified by the Federal Reserve and we are ready to make this product available. We have talked to many of our customers over the past year and have banks that are preparing to implement the service. If we have not talked to you, and you are interested in more detail, please call and we will schedule a visit. If you are preparing to implement FedNow and we can help you, please reach out. The use of this product is predicted to grow slowly, so if you aren’t ready yet, don’t worry, we will be available when you are ready! A recent payments study by the Federal Reserve showed that noncash payments have been growing at a rate of 9.5% per year since 2018 and totaled 128.51 trillion in 2021. ATM withdrawals are declining by 10.1% per year and total 3.7 billion. The full study is available at FederalReservePaymentsStudy@frb.gov. COMING SOON! A new product, Strategic Planning and Business Continuity Planning for Community Banks, will be available through The Bankers Bank. Banking is evolving, new technology is available, opportunities for change and growth exist. Where is your bank in the strategic planning process? What business opportunities do you have, or should you be considering? Watch for a detailed announcement from The Bankers Bank on this fresh approach to banking now and into the future.