INSIDE Mark Fogt tracks the proud history of Garrett State Bank. Story on page 10. HOOSIER BANKER MARCH 2014
Look for K4 at the IBA Mega Conference on April 28th – 30th in Indianapolis! Exhibit Booth #103 State Bank of Lizton - Plainfield, IN First Bank of Berne - Berne, IN First Financial Bank - Columbus, IN ARCHITECTURE ∙ DESIGN ∙ CONSTRUCTION SERVICES K4 believes in designing and creating environments in which banks can succeed and thrive. We believe it is possible to design your space to attract both younger and older generations. We believe you can integrate technology while still preserving the traditional core values and legacy of your institution. We believe that people still value personal relationships. We believe in brand consistency and balance. We believe in the future of the bank branch and in the Indiana Banking community. Whether you need a new facility, an interior remodel, or a graphics refresh; we provide appropriate design solutions for where and when you need them. We are proud to share our financial portfolio and have completed over 1,500 financial projects in the last 20 years. Contact us today, we look forward to building a relationship with you. 555 Gest Street Cincinnati, OH 45203 Ph: 513.455.5000 www.k4places.com River Valley Financial Bank - Floyds Knobs, IN
Worried About the Impact of Community Rating? Financial institutions typically have one of the lowest risk factors due to the nature of the business, which helps drive down overall premiums. What community rating means for financial institutions (those not already in the IBA Group Insurance Trust), is that your premiums will likely increase at your next renewal. Why? With community rating, health insurance rates are based on a single pool which includes employers from all industries, most of which typically are much higher risks than financial institutions. But, the IBA Trust is NOT subject to community rating. This means the insurance company only looks at members of the Trust -- financial institutions with typically lower risks -- when calculating renewals. Thus, the Trust avoids community rating. Visit us at Mega Conference! Booth 300, Exhibit Hall B Call Us or Have Your Broker Call Drew Tomasik Get in Touch Now At 1.800.558.6206 ext. 144 www.ibatrust.org
,QGLDQD %DQNHUV $VVRFLDWLRQ 2IÀFHUV 'LUHFWRUV 6WDII ,%$ 2IÀFHUV Chairman ............................................................... 'DYLG : +HHWHU MutualBank, Muncie FirstVice Chairman .................................... /DUU\ : 0\HUV, First Savings Bank, FSB, Clarksville SecondVice Chairman ...........................0LFKDHO + +HDG First Federal Savings Bank, Evansville Immediate Past Chairman ..................... -DPHV & 0DUFXFFLOOL STAR Financial Bank, Fort Wayne 3UHVLGHQW DQG &KLHI ([HFXWLYH 2IÀFHU .... 6 -RH 'H+DYHQ, Indiana Bankers Association, Indianapolis &RQVWLWXHQW 'LUHFWRUV ICBA State Director ........................................ 'DYLG 0 *HLV, Jackson County Bank, Seymour ABA Membership Council ....... 0LFKDHO . %DXHU, Community Bank Shares of Indiana, New Albany Future Leadership Division President ......... /XFDV :KLWH The Fountain Trust Company, Covington 1RUWKHDVW 5HJLRQ 'LUHFWRUV -DPHV * +LDWW, First State Bank of Middlebury 0LFKDHO ' &DKLOO,Tower Financial Corp., Fort Wayne *UHJRU\ 0D[ZHOO, Farmers State Bank, Mentone 1RUWKZHVW 5HJLRQ 'LUHFWRUV .DUHQ , 0LOOHU,The Farmers Bank, Frankfort $QQHWWH 0 5XVVHOO, Security Federal Savings Bank, Logansport 3DWULFN 'XIIH\, State Bank of Burnettsville 6RXWKHDVW 5HJLRQ 'LUHFWRUV 'HQQLV :D\PDQ, State Bank of Medora *HRUJH : )HUULHOO, Bath State Bank $UFKLH 0 %URZQ, MainSource Financial Group, Greensburg 6RXWKZHVW 5HJLRQ 'LUHFWRUV &OD\ : (ZLQJ German American, Jasper .XUW ' 5RVHQEHUJHU, Our Community Bank, Spencer 0DWWKHZ +RZUH\, North Salem State Bank ,%$ 6WDII 3UHVLGHQW &KLHI ([HFXWLYH 2IÀFHU ........................................................... 6 -RH 'H+DYHQ ExecutiveVice President .............................................................. 3DXO : )UHHPDQ &$( SeniorVice President–Government Relations ........................................ $PEHU 5 9DQ 7LO -' Vice President–Meetings & Events ............................................ &KULVWLQD 0 %HQQHWW &03 Vice President–Government Relations ........................................................... 'D[ 'HQWRQ Vice President–Products & Services ................................................................. 5RG /DVOH\ Vice President–Education & Training ........................................................... /DXULH $ 5HHV Vice President–Communications .................................................................. /DXUD :LOVRQ Events & Communications Assistant ............................................................... 6XVDQ &ODUN Education Meeting Coordinator ................................................................. 0DUOHQH :HOOV Education Meeting Coordinator ........................................................... 0LW]L 0 &KULVWLDQ Staff Accountant ....................................................................................... 7LPRWK\ )U\ IT and Facilities Manager ...................................................................... 7UDF\ :DLQVFRWW Administrative Assistant ........................................................................... 0LFKHOOH /RQJ *RYHUQPHQW 5HODWLRQV 2IÀFH 0DQDJHU ...................................................... -RVKXD $ 0\HUV (PDLO DGGUHVVHV )LUVW LQLWLDO RI WKH VWDII PHPEHU·V ÀUVW QDPH SOXV ODVW QDPH H[DPSOH MGRH#LQGLDQDEDQNHUV RUJ 3OHDVH VHQG QHZV UHOHDVHV WR ,%$FRPPXQLFDWLRQV#LQGLDQDEDQNHUV RUJ 0LVVLRQ To advocate for and sustain an environment in which banks can succeed. 9LVLRQ To provide exemplary service to members as the premier state bank trade association in the country. 9DOXHV ,Q IXOÀOOLQJ RXU PLVVLRQ we will: 0DLQWDLQ WKH KLJKHVW HWKLFV LQWHJULW\ DQG respect for others; 6HUYH ZLWK SURIHVVLRQDOLVP innovation and resourcefulness; ,QVWLOO SDVVLRQ SRVLWLYH attitude and enthusiasm; 5HPDLQ PLQGIXO WKDW the success of the IBA LV MXGJHG E\ WKH VXFFHVV of its members. View Hoosier Banker Digital at www.ourdigitalmags.com/ publication/?m=19522&l=1. 3XEOLFDWLRQ 'LVFODLPHU Hoosier Banker articles are published by the IBA Service Corp., a subsidiary of IBA Holding Company Inc., that is a wholly owned subsidiary of the Indiana Bankers Association. All material published in Hoosier Banker and/or on the IBA website is the property of the Indiana Bankers Association.
5 HOOSIER BANKER TABLE OF CONTENTS VOLUME 98 NO. 3 6925 Parkdale Place Indianapolis IN 46254-4673 Phone: 317-387-9380 Fax: 317-387-9374 ZZZ LQGLDQDEDQNHUV RUJ IBAcommunications #LQGLDQDEDQNHUV RUJ 3XEOLVKHU 6 -RH 'H+DYHQ (GLWRULDO DQG $GYHUWLVLQJ Laura Wilson Hoosier Banker (ISSN 0018-473X) is published monthly by the IBA Service Corp., a subsidiary of IBA Holding Company Inc., that is a wholly owned subsidiary of the Indiana Bankers Association. The magazine invites news from IBA ǯȱ ¢ȱDZȱęȱȱ the month preceding publication. $GYHUWLVLQJ 5DWHV DYDLODEOH upon request or online at ZZZ LQGLDQDEDQNHUV RUJ. Advertisers should provide HOHFWURQLF 3')V E\ WKH ÀIWK RI WKH PRQWK SUHFHGLQJ SXEOLFDWLRQ Hoosier Banker DGYHUWLVLQJ LV available to members and associate members of the Indiana Bankers Association only. 6XEVFULSWLRQV Hoosier Banker subscriptions are provided free of FKDUJH H[FOXVLYHO\ WR PHPEHUV DQG associate members of the Indiana Bankers Association. Public access to Hoosier Banker Digital is available DW ZZZ LQGLDQDEDQNHUV RUJ $662&,$7,21 83'$7( 6 PRESIDENT’S PONDERINGS S. Joe DeHaven, IBA 9 IBA CALENDAR OF EVENTS &29(5 6725< 10 MARK FOGT: LEVEL-HEADED LEADER )($785(6 14 TIME FOR REGULATORY TRANSPARENCY Rod Lasley, IBA 16 TEACHING SOUND FINANCIAL HABITS Frank Keating,ABA 18 DON'T DOUBT NOW Camden R. Fine, ICBA 363 6+2:&$6( 22 IBA PREFERRED SERVICE PROVIDERS CAN HELPYOU SUCCEED /(1',1* &5(',7 24 FINANCING BUILDING EFFICIENCY PROJECTS Lance S. Holman, Holman Capital Corporation ',5(&7256 6(1,25 0$1$*(0(17 28 WHAT BANK BOARDS NEED TO KNOW ABOUT BOLI David Shoemaker, Equias Alliance '(3$570(176 13 FROM THE BOARD ROOM 15 IN MEMORY OF 15 TAKING IT EASY 17 HONORS 17 ANNIVERSARY MILESTONES 19 ASSOCIATE MEMBERS' CORNER 20 COMPLIANCE CONNECTION Larry C.Tomlin, Krieg DeVault LLP 27 BANKING ON COMMUNITY 31 BANKERS ON THE MOVE 33 ADVERTISERS INDEX 34 FINANCIAL LITERACY DIGEST 5 HOOSIER BANKER MARCH 2014 Mark Fogt is president and FKLHI H[HFXWLYH RIÀFHU RI Garrett State Bank.
6 HќќѠіђџȱ юћјђџ юџѐѕ 2014 ǰȱ ȱȱȱȬ Ĵȱ¢ȱ ȱȱȱ ȱǯȱ ȱ ȱ Ĵȱ Eversmann (Ret.) will recount the events surrounding “Black Hawk Down” in an inspiring, motivational and patriotic presentation. Rory Aplanalp will discuss the ȱȱĴȱȱ£ȱȱȱ success using humor, real-life examples and time-tested business principles. Other features of the Mega Conference include the presentation of Five Star Awards to those banks that ȱȱȱęȱȃ Ȅȱȱȱ ȱDZȱ ȱ¢ǰȱȱěǰȱȱ participation, product/service usage, and support of Indiana BANKPAC. Additionally IBA associate members ȱȱȱȱęȱȃ Ȅȱȱ ȱȱ recognized as Diamond Associate Members. And the always-popular Maxi Awards for advertising and marketing of bank services will be presented, sparking ideas for your own creative outreach. High on many people’s list is the chance to network with old friends and make new ones. Often these opportunities to exchange ideas and form relationships are a lasting legacy of Mega. Those opportunities abound at the golf outing, between sessions, during lunches, at the Mega Reception, and at the chairman’s hospitality suite on Monday and Tuesday evenings. ȱ ȱȱȱȱ ȱȱȱǰȱĜȱȱ ěǰȱ ȱȱ¢ȱȱȱ¢ȱȱ ȱȱĴȱȱ year’s “Experience the Energy” Mega Conference. We look forward to seeing you there. I know that you will earn a high return on your investment through “millions” of Mega moments and memories, adding up to something really, really big! T¢ȱǰȱȱę¡ȱ “mega” denotes a million units of measure. Conversationally, though, mega has morphed into synonyms such as enormous, humongous, immense, large, vast, gigantic, colossal and mammoth. In other words, something really, really big! In 1992 the Indiana Bankers ȱȱȱęȱ ȱ Conference, conceived and created by Paul Freeman, now IBA’s executive vice president. His intention was not to literally represent a million, but instead to create something really, really big! His vision became reality, thanks in large part to you, our members. IBA’s Mega Conference has grown into the largest gathering of bankers at a single state association meeting anywhere in the nation. Though other states have tried to copy it, none have met our level of success. And I assure you that all the other state bank trade associations in the country know about our Mega Conference. It is a ȱěȱȱ¢ȱȱȱȱȱ ǯȱ ¢ȱŗǰŘŖŖȱȱ ȱĴȱȱ¢Ȃȱ ǰȱ ȱȱŗǰŖŖŖȱȱȱĴȱ ȱȱǯ Several factors account for this mega success. Value is one. Generous support is provided by our service providers (associate members), who will purchase more than 80 booth spaces and dedicate thousands of dollars in sponsorships and advertising. This support allows us to keep the banker registration fee at a very reasonable price. Quality is another reason Mega succeeds year after ¢ǯȱ ȱěȱȬȱȱȱ¢ȱǯȱ ȱ receives about 500 submissions vying for the 50 speaker ȱǰȱȱȱȱ¢ȱĴȱ ȱ ȱȱȱȱĴǯȱ ¢ȱ ȱ provides the best of professional education. Of course the most important reason that Mega is a ȱȱĴȱ¢ȱȱȱȱȱ¢ȱŗǰŖŖŖȱ bankers who participate. Post-Mega, we collect evaluations ȱĴȱȱ¢ȱ ȱ¢ȱȱ thoughts. This integral assessment process, which we apply to all IBA programming, allows us to address and meet the continuing changes you are faced with in serving your customers. ȱ ȱŘřȱěȱȱȱ ȱ ȱ ȱȱȱ April 28-30 at the Indiana Convention Center in downtown Indianapolis. This year’s theme is “Experience the Energy,” Ěȱȱȱ¢ȱȱ¢ȱ¢ȱ¡ȱȱȱ¢ȱ customers, communities and careers. You radiate energy in every aspect of your lives, positively impacting your banks and communities. In addition to the state-of-the-art products and services on display in the exhibit hall and the outstanding ASSOCIATION UPDATE PRESIDENT’S PONDERINGS 6 -RH 'H+DYHQ 3UHVLGHQW &KLHI ([HFXWLYH 2IÀFHU ,QGLDQD %DQNHUV $VVRFLDWLRQ 7HDFK &KLOGUHQ WR 6DYH 'D\ April 11 is Teach Children to Save ¢ǯȱ ¢ȱęȱ¢ȱȱ ȱȱȱȱ ȱęȱ a bank to register as a participant. The campaign is sponsored by the American Bankers Association Community Engagement Foundation and is open to all banks, both ABA members and nonmembers. Register at: www.aba.com/Engagement/ Pages/teachchildrentosave.aspx. For more information, please contact Laura Wilson, 317-387-9380, email: lwilson@indianabankers.org.
In today’s environment, Correspondent relationships are more important than ever and you can take advantage of Stock Yards Bank’s position as one of the largest and strongest banks based in this region. We are committed to working with the community banks of Indiana and we want to be your bank’s partner when you have needs around capital, liquidity, acquisition financing, stock buy backs and more, in addition to retirement plans and other trust services. Give James or Jim a call and put our experienced team to work for your bank. Jim McKenzie Correspondent Banking James Brown Correspondent Banking Lending Services Holding Company Shareholder Groups Bank Credit Needs And More! Deposit Services Fed Fund Sweeps Wire Transfer Automated Clearing House And More! International Services Foreign Exchange (CHECKS & WIRES) Letters of Credit And more! NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Wealth Management Services Jim McKenzie has over 40 years of banking experience, 36 years of those years as a correspondent banker. James Brown has over 20 years of banking experience in Retail, Small Business, Corporate and Correspondent Banking. (502) 625-0878 jim.mckenzie@syb.com (502) 625-9330 james.brown@syb.com THE CORRESPONDENT BANKING TEAM Retirement Plans Investment Management Insurance Trust Partnering And More! www.syb.com The good guys.
June 8 - 13, 2014 IBA Center for Professional Development 2014 IBA COMMERCIAL LENDING SCHOOL
Alternative Delivery Channels … $YDLODEOH DW \RXU FRQYHQLHQFH YLD :HELQDU &' 520 RU 2Q 'HPDQG ASSOCIATION UPDATE CALENDAR OF EVENTS Register online at www.indianabankers.org/calendar.cfm 9 HќќѠіђџȱ юћјђџ юџѐѕ 2014 Auditing Regulation Z Closed-End April 1 u ,%$ &HQWHU New Rules for Lenders and Processors April 2 u ,%$ &HQWHU Mastering HMDA April 8 u ,%$ &HQWHU Principals of Loan Documentation April 9 u ,%$ &HQWHU Advanced Loan Documentation April 10 u ,%$ &HQWHU 2014 Consumer Lending School $SULO u ,%$ &HQWHU Branch Management Series: Session 2 - Growing the Retail Bank April 22 u ,%$ &HQWHU Basic Banking School: Session 2 – Banking Business Operations and Management April 23 u ,%$ &HQWHU IBA Mega Conference $SULO u ,QGLDQD &RQYHQWLRQ &HQWHU Indianapolis Business Cash Flow Basics and Global Cash Flow Integration Issues 0D\ u ,%$ &HQWHU The 2014 IBA Leadership Development Program: Session 2 - “Do Something That Scares You” 0D\ u :RRGHG *OHQ ([HFXWLYH 5HWUHDW DQG &RQIHUHQFH &HQWHU Henryville Community Bankers for Compliance Series - Session 2:The Flood Rules - Keeping the Issue of Flood Insurance on Your Bank Staff Radar 0D\ u &RXUW\DUG E\ 0DUULRWW )RUW :D\QH 0D\ u ,%$ &HQWHU 0D\ u ,%$ &HQWHU Senior Retail Lenders Forum 0D\ u ,%$ &HQWHU 7UXVW 2IÀFHU )RUXP New 0D\ u ,%$ &HQWHU Risk Management Forum 0D\ u ,%$ &HQWHU Conducting Internal Compliance Reviews for Appraisals and Evaluations -XQH u ,%$ &HQWHU Commercial Lending School -XQH u ,%$ &HQWHU Simplifying Your IT Risk Management Program -XQH u ,%$ &HQWHU CFO Forum: -XQH u ,%$ &HQWHU *URXS -XQH u ,%$ &HQWHU *URXS Basic Banking School: Session 3 - Integrated Bank Security and Compliance -XQH u ,%$ &HQWHU Senior Lender Forum: -XQH u ,%$ &HQWHU *URXS -XQH u ,%$ &HQWHU *URXS BSA/AML Compliance School -XQH u ,%$ &HQWHU Real Estate Lending Compliance -XQH u ,%$ &HQWHU ,7 DQG 2SHUDWLRQV 2IÀFHUV )RUXP -XQH u ,%$ &HQWHU *URXS -XQH u ,%$ &HQWHU *URXS Auditing RESPA -XO\ u ,%$ &HQWHU Human Resource Director Forum -XO\ u ,%$ &HQWHU Introduction to Consumer Loan Origination and Compliance -XO\ u ,%$ &HQWHU A Workshop for Loan Assistants and Loan Processors -XO\ u ,%$ &HQWHU Analyzing Cash Flow From Income Producing and Rental Real Estate -XO\ u ,%$ &HQWHU Administering Construction -XO\ u ,%$ &HQWHU The 2014 IBA Leadership Development Program: Session 3 - Limitations Are Self-Imposed $XJ u :RRGHG *OHQ ([HFXWLYH 5HWUHDW DQG &RQIHUHQFH &HQWHU Henryville Community Bankers for Compliance Series – Session 3 $XJ u &RXUW\DUG E\ 0DUULRWW )RUW :D\QH $XJ u ,%$ &HQWHU $XJ u ,%$ &HQWHU Call Report Update and Review $XJ u ,%$ &HQWHU Branch Management Series: Session 3 - Leading, Developing and Engaging the Team $XJ u ,%$ &HQWHU Basic Banking School: Session 4 - Regulatory Guidelines and Examinations $XJ u ,%$ &HQWHU Vendor Management $XJ u ,%$ &HQWHU 7UXVW 2IÀFHU )RUXP Sept. 9 u ,%$ &HQWHU Senior Retail Banking Forum Sept. 10 u ,%$ &HQWHU 5LVN 0DQDJHPHQW 2IÀFHU )RUXP Sept. 11 u ,%$ &HQWHU Mortgage Lending School 6HSW u ,%$ &HQWHU IRS Compliance for Financial Institutions Sept. 23 u ,%$ &HQWHU Deposit Account Administration 6HSW u ,%$ &HQWHU Advanced Credit Analyst 6HSW u ,%$ &HQWHU IBA Annual Convention 6HSW u )UHQFK /LFN 6SULQJV 5HVRUW April 2 u These People Drive Me Crazy April 2 u Completing Flood Insurance Forms Line-by-Line: Including New Biggert-Waters Changes Effective June 1, 2014 April 3 u Opening New Accounts April 3 u ACH Professional Series:ACH Rules Update 2014 $SULO u ,QGLDQD 6SHFLÀF 2SHQLQJ RI %XVLQHVV $FFRXQWV 5HVRlutions, Signature Cards and Changing Signers April 8 u Ten Things to Look for When Analyzing Balance Sheets April 9 u Managing Loan Risk Using FICO Score Monitoring and Credit Mitigation Models April 9 u Right of Setoff April 10 u Mortgage Rules Series April 10 u Reporting Your Credit Data, E-OSCAR, METRO2 and FACTA & CFPB Compliance April 10 u Basic Commercial Loan Underwriting:Analysis, Qualifying Applicants and Decision-Making April 15 u Flood Insurance: Compliance Issues and Enforcement Topics, Including Changes to the Law April 15 u 5HVSRQGLQJ WR 2IÀFLDO 'HPDQGV IRU &XVWRPHU Funds: Subpoenas, Garnishments, Summonses, Levies $SULO u Countdown to FACTA:What Does It Mean toYour Financial Institution? $SULO u Reg. E - How Expensive Is a Compliance Mistake? $SULO u Using Business Tax Returns to Analyze Lending Requests $SULO u Mobile Device Risks and Compliance Rules: Managing Your Bank’s BYOD and COPE Policies April 22 u 2IÀFHU &DOOLQJ 3URVSHFWLQJ 3UHSDULQJ DQG 3UHsentation April 22 u Ability to Repay - Are You in Compliance With the New CFPB Rules? April 23 u Opening New Accounts II April 23 u CRA Compliance Update: Including Final Revisions to Interagency Q&As $SULO u Interpreting Economic Indicators in Agricultural Loan Portfolio Management April 25 u BSA Series:Writing a BSA Policy April 29 u Risks and Precautions for Endorsements and Other Negotiable Instruments April 30 u Patch Management - The Art and Science of Keeping Software Current 0D\ u BSA Series: Four Hot Spots - Marijuana Businesses, Elder Abuse,Virtual Currency and Model Validation 0D\ u Opening Trust Accounts in Indiana: Documenting Authority and Liability 0D\ u Appraisals and Evaluations for Consumer Real Estate Lending: Interagency Guidance, Regulator Issues & FAQs 0D\ u Accounting Titling, Ownership and Signatories 0D\ u Calculating and Maintaining the Allowance for Loan and Lease Losses 0D\ u Introduction to SBA Lending 0D\ u Sharpen Your Skills as a Trainer 0D\ u Motivating Your Sales Team 0D\ u Excel Explained: Introduction to Spreadsheets 0D\ u Introduction to Residential Mortgage Underwriting 0D\ u Commandments for Dealing With Regulators 0D\ u Customer Service Under the CFPB 0D\ u Emerging Leaders Education: How to Avoid Lender Liability Claims - Compliance, Regulatory Issues and Best Practices 0D\ u Analyzing Start-Up Businesses 0D\ u Auditing Your Loan Portfolio: Consumer, Commercial and Real Estate 0D\ u Improving Employee Performance in Everyday Work Situations and Reviews 0D\ u Risk Management Series: Regulator Issues in Interest-Rate Risk: Current Trends, Shock Analysis and Best Practices 0D\ u Dealing With Appraisals 0D\ u Implementing the New ACH Security Framework Requirements by Dec. 31, 2014 0D\ u Opening New Accounts for LLCs
10 HќќѠіђџȱ юћјђџ юџѐѕȱ2014 COVER STORY As president and chief executive Ĝȱȱ Ĵȱ ȱ ȱȱ of G.S.B. Financial Corp., Mark S. Fogt, 60, is a community leader in an area renowned for its transportation ¢ǯȱ ȱ ȱȱ Ĵǰȱ Ind., is located in western DeKalb County, “The Hub of Transportation Heritage.” The town itself was named ȱȱ ȱ ǯȱ Ĵǰȱȱ of the Baltimore and Ohio Railroad in the mid/late 1800s. ȱ ǯȱ ĴȂȱȱ contribution to transport history was ȱȱȬȱ Ĵȱ to Chicago by laying track across the relatively level terrain of northern Ohio and Indiana. His namesake town was formed in 1876 as a divisional-point connection to Chicago, at that time the railroad center of the United States. Mark Fogt’s career trajectory likewise connects Midwest with East Coast. Born and raised in Ohio, he began his career in his home state, ȱȱȱęȱ ȱȱ ȱ Inter-Community Bank in New Jersey, then returned to the Midwest in 1994 as president and CEO of Ĵȱ ȱ ǯ Current community involvement includes service as president of the board of directors of Junior Achievement of DeKalb County, as a board ȱȱĜȱȱȱ ȱ Health Medical Group, as a trustee for the IBA Health Insurance Trust, and as a member of the City of Gar- Ĵȱ ȱȱ ȱ ȱȱ - ty. Fogt was chairman of the board of directors of the Community Bankers Association of Indiana in 2002, and the same year was granted a Sagamore of the Wabash. He earned a bachelor’s degree from the University of Findlay and an MBA from the University of Dayton. Hoosier Banker recently interviewed Fogt about his career and banking outlook. What are your responsibilities as president/CEO ȱ Ĵȱ ȱ ȱȱȱ ǯ ǯ ǯȱ Financial Corp.? “Mostly my role is in directing and keeping the big picture in view. I review the general ledger every day to gauge how we are progressing, and I participate in meetings to help plan our goals. I also meet with some customers, though not as often as I used to. “The banking business has changed dramatically in the last 10 years. To stay relevant, community banks have to adapt to the changing Ĵȱȱȱǯ “For example we’re in the process of redoing our lobby, because we Ȃȱȱęȱȱ ȱ anymore. It’s unusual to have as many as 10 customers in the lobby at the same time, because so much more of today’s business is done electronically or online. “One of our historic strengths in the community banking system is that our customers always had a name, a face and a phone number. If they had a question, a need or a problem, they knew who to call. “In today’s electronic environment, we want to ensure that customers still have a name, a face, a phone number and now an email address, so that if they have a question, a need or a problem, they know who to contact. Our challenge is to keep that community banking system and concept working for the next generation. ȱ ȃ ȂȱĴȱȱȱȱ college interns, who are more Ĵȱȱȱȱ ¢ȱȱȱ today’s customers. What they are telling us is that younger clients don’t want canned messages. They Mark Fogt: Level-Headed Leader *DUUHWW 6WDWH %DQN IRXQGHG LQ KRXVHV LWV RULJLQDO ÀOLQJ V\VWHP DQG OHGJHU
11 HќќѠіђџȱ юћјђџ юџѐѕ 2014 want communications that are personalized to the individual, and more of an informational exchange than a hard sell.” How did your banking career develop? “I’m a third-generation banker. My great uncle and my father were bankers, working together at the same bank in Sidney, Ohio. My father never changed banks; he stayed with the same bank for almost 50 years. “I have a brother in Ohio who is a banker. At one point I had two brothers, two sisters-in-law, my father and myself all serving as bankers at the same time. “Originally I was going to be an accountant, but between my sophomore and junior years in college, I took a job at First National Bank of Findlay, Ohio, and eventually decided to stay with banking. “My career went well, and I was promoted to executive vice president. Finally I felt ready for the next step, so I applied for a CEO position that I saw posted in the American Banker. ȱ ǰȱ ȱěȱȱǰȱ and my wife Pam and I moved to northern New Jersey. “We were located in the town of ęǰȱȱ ǯȱ ȱ ȱ an area of dense population, with a million people in just our county. Driving around, you never knew when you had left one town and entered another, because the communities had grown together. “There isn’t farmland in that part of New Jersey anymore, yet it is the Garden State, and I do think there was a heightened appreciation of landscaping and gardening. By far, ǰȱ ȱȱĴȱǷ “We were there for six years. Then in the late ’80s/early ’90s, the economy went through a sizable ǯȱ ȱȱȱęǰȱȱȱ members of the board of directors decided to sell. “When the bank sold, I had an opportunity to stay with the acquirer and move to Philadelphia, or take a severance package. Since Pam and I are both from Ohio, we wanted to come back to the Midwest. “I again looked at ads in the American Banker and responded to a couple. We wound up with two options: ȱȱȱ Ĵǰȱȱȱ to a bank in southwest Ohio. ȱȱȱȱȱ Ĵȱ State Bank and this community, so we came here. ȱȱȱȱȱęǯȄ What are some of the banking ěȱ ȱ ȱ Jersey and in the Midwest? “The banking business itself is similar. What I found ěȱ ȱȱȱȱ prices were probably three times higher in New Jersey than here for a comparable home. People tended to wait longer to buy a house, delaying until their late 20s or early 30s, often relying on assistance from parents or grandparents. ȱ ȃ ǰȱȱȱȱĜȱȱ Ĵȱȱȱǯȱ We lived about 20 miles from my work place. The commute could take anywhere from 45 minutes to an hour and 15 minutes, depending on the day. “Now I live a mile and a half from ǰȱȱ ȱȱȱȱȱȱęȱ minutes. I got part of my life back when we came back to the Midwest.” What is the prognosis for community banking? “I keep hearing the debate about community banks’ having to sell, but I don’t believe for a minute that we can’t compete. We simply have to be realistic as to what the markets want and how they function, and we have to stay abreast of changes. But I am ęȱȱ¢ȱȱcan adapt. “In fact it’s easier today to stay current. The price of technology has come down, giving us access to the same services as larger banks. Our Ĵȱȱěȱȱȱȱ online banking, with all the features our customers want. Mark Fogt and Carla Smith of Garrett State Bank are active with the Garrett Art Museum, located in the former bank headquarters. Smith serves the bank as assistant vice president DQG DGPLQLVWUDWLRQ RIÀFHU Teamwork abounds at Garrett State Bank. Shown are (left to right): .UDLJ .HOKDP LQIRUPDWLRQ VHFXULW\ RIÀFHU 0DUN )RJW DQG %ULDQ 6SUXQJHU executive vice president. &RQWLQXHG RQ SDJH
12 HќќѠіђџȱ юћјђџ юџѐѕȱ2014 Continued from page 11. “In the past, we talked to tellers about the importance of listening to customers and taking cues from them about how to interact. Some customers want to come in and out as quickly as possible, and others want to stay and chat. “We have that same discussion today, but it goes a step further into ęȱȱ ȱ¢ȱȱ customers want as a primary mode of delivery. Do they want to come in and talk? Do they want to do everything online? “We continue to serve the customer who wants to come in, but there is a growing market segment that doesn’t want to come in any more than they have to. For those customers, we have to make the online process as easy and simple as possible.” In 2002 you served as chairman of the board of Community Bankers Association of Indiana, and now you are an Indiana Bankers Association grassroots banker. Why do you choose to be so deeply involved? “We have to have a voice out there to bring some common sense back to issues, particularly in this era of overregulation. Very few banks in Indiana had anything to do with the major economic downturn that took place in recent years but, sadly, we have to deal with the regulations that came about as a result. We need a voice. “I’m old enough to remember when people would sign a note and a mortgage — each about a page-anda-half document — and they would ¢ȱȱȱęǯȱ ¢ȱ we go into a mortgage closing and face a stack of papers an inch-and-ahalf thick. Customers will say, ‘Show me where to sign,’ instead of reading ęǯ “Consumers have to sign voluminous amounts of documents, about half of which are designed to protect ourselves. I don’t think the ¢ȱȱĴȱĴȱȱȱȱ the client. “The reality is, most people are only looking at, ‘How much cash do I have to bring to the table?’ and ‘What’s my monthly payment going to be?’ Sometimes less is more. “About a year ago, I was invited to sit down with some people from the Fed who were trying to explore ways to help community banks. They were honestly trying to help, but what they did not appreciate is that every time they make a change, I have to change my software, and I have to ȱ¢¢ȱȱěǯ “I understand that there are going to be three major releases from the Fed this year related to mortgages. These changes will cause three new sets of software and three new training sessions. “Unfortunately I don’t think any ȱȱȱȱȱȱ¢ȱĴȱȱȱ customer than just breaking down the particulars of the individual deal. ’What’s my payment going to be?’ ‘How long is my term?’ ‘How much money do I have to pay down on the front end?’ We have overcomplicated ȱȱȱȱěȱȱȱȱ simpler.” If applicable, please describe the ȱȱȱĚȱȱȱ your life. “Somebody who I’ve always looked up to is Bob Feller, not to be confused with Bob Feller the baseball player of about the same vintage, who was a pitcher for the Cleveland Indians. The Bob Feller I knew was president of the First National Bank in Findlay when I was there. “Bob allowed me at an early age ȱĴȱȱ¢ȱȱǯȱ At the time, the bank was owned by the same people who owned the Marathon Oil Company. Consequently I had an opportunity ȱȱ ȱȱȱȱĚȱ 0DUN )RJW FRQIHUV ZLWK 7HUUL *DOO UHWDLO EDQNLQJ RIÀFHU Carrier selection is one of the most critical decisions in a BOLI purchase. Not all BOLI providers offer carriers with the top AAA rating. Executive Benefits Network offers its clients the most highly rated BOLI carriers in the industry; delivering the long-term benefits and financial strength our clients expect. Now that is Knowledge You Can Bank On.™ We Peel Back the Layers So Our Clients Can Fully Uncover BOLI. ©2014 EBN BOLI & Deferred Compensation Experts 800.780.4EBN ebn-design.com
13 HќќѠіђџȱ юћјђџ юџѐѕ 2014 Video Bonus V B people, who made an impression on me. “The experience taught me that successful people look at things Ĵ¢ȱȱȱȱ ¢ȱ everyone else does. They examine the facts, and they make a decision based upon what seems to be the best way to go.” Please tell a bit about family life. “My wife Pam and I have three grown children, ages 28, 27 and 22. Our daughter has an MBA and ȱȱȱ Ĵȱ ȱ School. She and her husband, a ěȂȱ¢ȱȱȱȱ ǰȱ live about a mile away. They have two preschoolers, and Pam enjoys helping with our grandkids. “We have two sons. One has a master’s degree in civil engineering and is excited about a new job he has started with Waste Management. He’ll be working out of Fort Wayne, ȱȱȱęȱȱ Indiana and Michigan. He and I share a hobby together: We both enjoy motorcycles. “Our other son has been accepted to medical school and currently is weighing other med school options. He’s aiming for a medical science training program, which combines an M.D. and Ph.D. over seven or eight years. Then he’ll spend two or three years in an internship to establish a specialty. “All told, life is very good. Being part of a community bank means taking care of the community, and ȱȂȱȱȱȱĴȱȱȱ ȱȱ ĴǯȄȱȱ Mark Fogt, president/CEO of The Ĵȱ ȱ ǰȱ¡ȱ ¢ȱ the future is bright for community banks in “The Future of Community Banks.” To view, click on the red arrow in Hoosier Banker Digital at www.indianabankers.org. Jennifer Callison, vice president, Realtor and broker for Mike Thomas Associates/F.C. Tucker Real Estate in Fort Wayne, has been appointed to the board of directors of Centier Bank, Northern Indiana. She has 16 years experience in real estate and ȱȱĜȱȱȱ ȱ ȱ of Realtors, Indiana Association of Realtors, Indiana Regional Multiple Listing Service Board, Task Force for the Legacy Fund for Fort Wayne Mayor Tom Henry and the Leadership Forum of Northern Indiana. She is involved with the Mad Anthony Children’s Hope House, Big Brothers Big Sisters and The Mouse Project. Mike Langellier, president and chief ¡ȱĜȱ of TechPoint and TechPoint Ventures LLC, has been appointed to the board of directors of STAR Financial Bank, Fort Wayne. He also co-founded MyJibe, is a past recipient of the Governor Bob Orr Indiana Entrepreneurial Fellowship and was included in the 2014 Forty Under 40 list of the Indianapolis Business Journal. Langellier also serves on the boards of the Orr Fellowship and of the TechPoint Foundation for Youth. Ray Snowden, president and chief ¡ȱĜȱȱ ȱ - tal and Health Care Center, Jasper, has been appointed to the board of directors of German American Bancorp Inc., Jasper. He also has been ȱȱȱȱĴȱ of the board, plus to the board of ȱȱȱĴȱȱ German American, the company’s bank subsidiary. Snowden has served since 2005 on German American’s regional advisory board for the Dubois, Perry and Spencer County markets. Additionally he serves on the boards of the Indiana Hospital Association, Genesis Health Alliance, Vincennes University-Jasper Campus Foundation and southwestern Indiana Community Patient Safety Coalition. Snowden is a member of the Jasper Lions Club, a past board member of the Patoka Valley Healthcare Cooperative and of Dubois Strong, and has been appointed a member of the Jasper Economic Development Commission. He has more than 30 years of management experience in the health care industry and has a master’s degree in health service administration. FROM THE BOARD ROOM Amplify is a public relations and grassroots ěȱȱ¢ȱȱ ȱ ȱ Association with help from banking professionals. Available to all bankers — both ABA members and nonmembers — ȱěȱȱȱȱȱȱ image of banking. Register at: ĴDZȦȦ ǯ¢ǯȦ Login/register.aspx. $PSOLI\ <RXU (IIRUWV is ap ě Associatio professio bothAB im Log $PSOLI\<
14 HќќѠіђџȱ юћјђџ юџѐѕȱ2014 FEATURE Checks and balances are important. Without them, power becomes concentrated and abused. The banking industry is perhaps the most heavily regulated business in America. Bank regulators wield enormous power, with few, if any, checks and balances. Regulators hold all the cards, from the smallest operational details to the very survival of a bank. For their part, banks are sworn to secrecy, render- ȱȱ¢ȱ ȱȱęȱ back. In fact most banks have deter- ȱȱęȱ ȱȱ is futile. Regardless, we need to take a united stand for a balanced regulatory system, not only for the sake of banks, but for the communities they serve. To that end, the Coalition of State Bankers Associations has created a tool — the Regulatory Feedback Initiative (RFI) — designed to bring balance and accountability to the system. ȱȱȱȱȱęȱ electronic platform, through which bankers can anonymously relay details about their most recent examinations or visitations. The information is aggregated and analyzed on a national level, in order to identify discrepancies in how bank regulations are being enforced. These discrepancies could exist among different bank agencies, geographic regions or examiners within the same agency. The timing of this initiative is opportune, due to the avalanche of new regulations that will be enforced in coming months. Member banks of the Indiana Bankers Association will be able to request reports from the IBA, summarizing the feedback of similarly situated banks to help prepare for upcoming exams. The goals are to avoid surprises and to identify inconsistencies. This initiative will arm our indus- ¢ȱ ȱȱ¢ȱęȱ amount of hard data, as we advocate for an environment in which banks can succeed. This data help to make our case with regulators, members of Congress and the administration. The information provided by participating banks will help determine whether a member bank is receiving unfair treatment vs. appropriate and consistent regulatory scrutiny. This process will allow banks to shed their isolation without violating ę¢ȱȱ¡ȱ- selves competitively. The survey is powered by Allegiance Inc., an independent third party with a track record of collecting anonymous and protected feedback from bank customers and employees. Since its launch, the RFI has collected exam information from more than 2,000 banks. For the month of April, we are asking every bank that has not already completed a survey for its most recent Safety and Soundness exam and Compliance exam to do so, regardless of when the exams occurred. IBA will be emailing our member CEOs with a link to the survey. This link is the only means of ȱȱęȱȱ¢- mous survey. Following this April campaign, we ask that member banks incorporate the survey into their examination processes following each future examination. The Coalition of Bankers Associations has met with representatives of the Federal Deposit Insurance ǯǰȱ Ĝȱȱȱ ȱȱ the Currency, Federal Reserve and Conference of State Bank Supervisors; to their credit, these agencies appear to welcome the input. They recognize that their processes are not perfect, ȱȱȱ ȱȱĴȱȱ Ĝǯ ȱ ȱȱȱȱȱĴȱ- ency will provide some subtle checks and balances in an otherwise one-sided regulatory process. Even a slight shift in this balance could yield significant returns for local economies and the Indiana banking community, as we emerge from the recent economic crisis and assimilate the new regulatory challenges of the Dodd-Frank Act. Please contact me for more information about the Regulatory Feedback Initiative, or read more at: www.indianabankers.org/regulatoryfeedback-initiative. Time for Regulatory Transparency яќѢѡȱѡѕђȱ Ѣѡѕќџ Rod Lasley is vice president-products & services of the Indiana Bankers Association, and also serves ȱȱȱȱȬęȱȱ ȱ¢ȱ the IBA. He can be reached at 317-387-9380, email: RLasley@indianabankers.org.
15 HќќѠіђџȱ юћјђџ юџѐѕ 2014 Patricia Woodard Tidd, 82, retired corporate secretary to the holding company of Jackson County Bank, Seymour, died Feb. 18. She joined the bank in 1951 as secretary to the president and later served as assistant cashier, assistant vice president, controller, vice president and director of marketing, retiring in 1994. Profes- ȱĜȱȱȱ ȱ IN MEMORY OF ěȱ , senior vice president of sales and branch administration of Horizon Bank, NA, Michigan City, has retired after 41 in the banking industry. He co-founded Heartland Community Bank, Greenwood, which was acquired by Horizon in 2012. Goben began his career in 1972 at the National Bank of Greenwood; joined Bargersville State Bank, later acquired by CNB Bancshares, in 1984; and cofounded Heartland Community Bank in 1997. Community activities include service as president of the Greater Greenwood Chamber of Commerce and of the Greenwood Sertoma and Kiwanis clubs, and membership in the SS Francis & Clare Roman Catholic Church. He also co-created a scholarship fund at the Johnson County Community Foundation. Goben is a member of the Indiana Bankers Association Forty Year Club. Jack A. Kenworthy, president and chief ¡ȱĜȱȱ Bedford Federal Savings Bank, has retired. He continues to serve as chairman of the board. Kenworthy joined the bank in 1972 ȱȱȱȱĜǯȱ ȱȱȱ veteran of the U.S. Army, a graduate of Indiana University and a member of the Indiana Bankers Association Forty Year Club. TAKING IT EASY Marketing Association, American Institute of Banking, Bank Administration Institute and National Association of Bank Women, with service at the state, regional and national levels. Tidd was active with the American Cancer Society, Heart Fund, United Fund, the Downtown Seymour £ȱ Ĵǰȱ - town Merchants Association, Greater Let your voice be heard ! Take the RFI* survey at www.allbankers.org *RFI = Regulatory Feedback Initiative By taking our survey you are providing anonymous feedback that will be used to hold regulators accountable. More than 2000 bankers have already participated. Take a stand. Take the survey. (without revealing your identity) Indiana Bankers Association a proud member of Seymour Chamber of Commerce, the Lincoln Park Co-Owners Association and First United Methodist Church in Seymour. She was a graduate of Seymour Business College and the School of Bank Marketing at the University of Colorado and a member of the Indiana Bankers Association Forty Year Club.
16 HќќѠіђџȱ юћјђџ юџѐѕȱ2014 FEATURE BȱĴȱȱȂȱǰȱ teens in states across the country must gain relevant experience and ȱȱę¢ȱȱ driving a car. That process can mean classroom training and instruction, keeping a log of hours driven with an adult in the car, plus spending hours behind the wheel with a trained instructor. The goal is to ensure that, when they do hit the road, young drivers will be less likely to harm themselves and others. Prepared with an understanding of the rules of the road, plus respect for fellow drivers and pedestrians, they are enabled to make good decisions independently. The end ȱȯȱ ȱȱȯȱęȱ all. ȱ ȱ¢Ȃȱęȱȱ programming works much the same way. By providing children with ȱȱȱȱęǰȱ and by encouraging starter savings accounts, banks give tomorrow’s adults the knowledge and experience they need to safely manage money. This preparation is a critical building block to helping them meet their ęȱȱȱȱȯȱȱ¢ȱ a house to retiring comfortably. Help- ȱȱȱȱęȱ goals is what banks do. If your bank has not yet engaged ȱęȱǰȱ ȱȱ you to explore the American Bankers Association’s annual Teach Children to Save program. It is a popular and turnkey way to share lessons about the importance of saving and managing money – lessons that banks have delivered to six million youth since ABA created the program in 1997. This year’s Teach Children to Save Day is April 11. Bankers across the country have registered to make school presentations on that day and throughout April, which is also being celebrated as Financial Capability Month. (For a list of participating banks, and for free lesson plans and other resources, visit www.aba.com/ Engagement.) This program allows bankers to accomplish several worthy goals at once. By visiting school classrooms, youth centers, after-school programs and more, you and your colleagues provide practical lessons and share knowledge to encourage and inspire young people to develop healthy, ȱęȱȱǯ ȱ ȱȱȱĴȱ¢ȱȱȱ to use to help address a serious prob- ȱȱȱȱȯȱȱȱęȱ know-how — that could threaten the economic stability of America. The ŘŖŖŞȱęȱȱȱȱ¢ȱ lessons, one of which is the importance of an informed consumer, able to distinguish a prudent, appropriate loan from one that is not. Finally, your participation helps demonstrate two important truths about the industry: That local bankers are there to help customers in all of their families’ milestone events; and that banks have a stake in the economic growth, health and vitality of their communities. These are two features of banking that consumers, through surveys and focus groups, have told ABA they value, so let us highlight those facts. You have probably heard me say that I view banking as a white-hat industry. Banks are critical to the success of communities across America. In fact bank community engagement is critical to the success of our nation’s economy. Teach Children to Save is one of several ways ABA tries to drive that point home. I hope you will take part and, in the process, help the next generation safely navigate the road to ęȱǯȱȱ Teaching Sound Financial яќѢѡȱѡѕђȱ Ѣѡѕќџ Frank Keating was named president and chief ¡ȱĜȱȱȱAmerican Bankers Association in 2011. His appointment followed seven years of service as president and CEO of the American Council of Life Insurers and after serving two terms as governor of Oklahoma. Keating’s 30-year career in law enforcement and public service included stints ȱȱ ȱǰȱ ǯ ǯȱĴ¢ȱȱȱǰȱ and Oklahoma House and Senate member. Author of three award-winning children’s biographies, he earned an undergraduate degree from Georgetown University, a law degree from the University of ȱȱȱȱȱȱęȱ¢ȱǯȱ ȱȱȱȱ ȱDZȱĤȓǯǯ
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