JANUARY/FEBRUARY 2025 THE OFFICIAL PUBLICATION OF THE INDIANA BANKERS ASSOCIATION Matt HOWREY BUILDING FOR THE FUTURE
www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX Long Island, NY | Salt Lake City, UT Springfield, IL | Member: FINRA and SIPC May 8–9, 2025 AUSTIN, TX Lost Pines Resort 575 Hyatt Lost Pines Rd Cedar Creek, TX 78612 The Baker Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org. Asset Liability Management and Investment Strategies Seminar JOIN US AT OUR ANNUAL DESTINATION EVENT After experiencing the most aggressive Federal Reserve tightening cycle in decades, we now enter the next phase, the easing cycle. The critical question persists: Will the Fed achieve the sought-after soft landing, or will the economy tip into its next recession? 2025 continues to be marked by uncertainty following a period of significant pressures and challenges to balance sheets and net interest margins. Senior management will continue to navigate an environment with uncertainty of interest rates, higher cost of funds, tighter liquidity levels, deposit pressures, and the looming threat of an economic downturn. Proactive balance sheet management and a robust ALCO process are more crucial than ever. This seminar will examine the challenges currently faced by CEOs, CFOs, and investment officers who must navigate the next rate cycle. Join us for an in-depth discussion of the following topics: • Economic and Market Update • The Fed’s Next Moves • Regulatory Hot Buttons • Interest Rate Risk • Liquidity Risk Management • Investment Portfolio Strategies • MBS/CMO Market • Municipal Market Update There is no cost for this seminar. AGENDA Thursday, May 8 Breakfast, Seminar, Lunch, Seminar, Adjourn Friday, May 9 Breakfast, Seminar, Conclusion, Golf (included) ACCOMMODATIONS A block of rooms is available at Hyatt Regency Lost Pines Resort and Spa. The special room rate will be available until April 9, 2025 or until the room block is sold out. Hotel price: $329–$379 + $25 resort fee. WHO SHOULD ATTEND Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. For more information or to register, visit GoBaker. com/texas/ or scan the QR code. Call Skoshi Heron at 888.990.0010 for additional questions. 14 hours of Economics and Finance CPE credits will be earned for your attendance.
DIRECTORS, STAFF AND CREDITS IBA BOARD OF DIRECTORS OFFICERS Matthew W. Howrey, Chair............................. North Salem State Bank David M. Findlay, FirstViceChair.......................... Lake City Bank, Warsaw Lisa Arnold, SecondViceChair........................... Home Bank, Martinsville Benjamin J. Bochnowski, ImmediatePastChair. . . . . . . . . . . . . . . . Peoples Bank, Munster Amber R. Van Til, PresidentandCEO.................... Indiana Bankers Association CONSTITUENT DIRECTORS Garry D. Kleer, ABAMembershipCouncil....................... First Bank Richmond Kent A. Liechty, ICBAStateDirector........................... First Bank of Berne Amanda Morris-Feldman, IBA FLD President . . . . . . . . First Federal Savings Bank, Rochester Karen B. Woods, Non-Indiana Headquartered Banks . . . . . . . . First Financial Bank, Cincinnati REGIONAL AND AT-LARGE DIRECTORS Mark “Doc” Holt, At-Large.................... First Farmers Bank & Trust Co., Converse Nicole S. Lorch, At-Large.............................. First Internet Bank, Fishers J. Daniel Maddox, NorthRegion..................... Citizens State Bank, New Castle Bradley J. Monts, NorthRegion. . . . . . . . . . . . Hoosier Heartland State Bank, Crawfordsville Jacqueline M. Ruge-Perkins, NorthRegion.................. First State Bank of Porter Mark E. Bruin, SouthRegion...................... The National Bank of Indianapolis David A. Coffey, SouthRegion....................... Mutual Savings Bank, Franklin Eric J. Lane, SouthRegion.................. First Federal Savings Bank of Washington IBA FUTURE LEADERSHIP DIVISION ADVISORY BOARD Amanda Morris-Feldman, President .. .. .. .. ...... First Federal Savings Bank, Rochester Greg Barnes Jr., Vice President ........................... STARBank,FortWayne Ryan Anderson .. .. .. .. .. .. .. .. ........... The Fountain Trust Company, Covington Jenilee Bransteter .. .. .. .. .. .. .. .. .. .. .. .. ............... First Bank of Berne Jordan Briggeman . . . . . . . . . . . . . . . . . . . . . Springs Valley Bank & Trust Company, Jasper Ashley Burns .................................. FirstNationalBank,Cloverdale Michael J. Clampitt ...................................NorthSalemStateBank Brandi Dunn .. .. .. .. .. .. .. .. .. .. .. .............. The Farmers Bank, Frankfort Larissa Fox .................................... OldNationalBank,Evansville Kyle Goodwin .. .. .. .. .. .. .. .. .. .. .. .. .. ............... DeMotte State Bank Christopher Griffith .. .. .. .. .. .. .. .. .. .. ............ First Harrison Bank, Corydon Zach Hockersmith . . . . . . . . . . . . . . . . . . . . . Hoosier Heartland State Bank, Crawfordsville Casey Johnson .. .. .. .. .. .. .. .. .. .. .. .. ............. Home Bank, Martinsville Laura Shake .. .. .. .. .. .. .. .. .. .. ............. The National Bank of Indianapolis Casey Shireman ........................................NWSB,Charlestown Vanessa Spicer .. .. .. .. .. .. .. .. ......... Community First Bank of Indiana, Kokomo IBA STAFF Amber R. Van Til ........................................ PresidentandCEO Rod Lasley ......................................... ChiefOperatingOfficer Dax Denton ............................................ChiefPolicyOfficer Christina M. Bennett, CMP . . . . . . . . . . . . . . . . . . . . . . VicePresident–Meetings&Events Evan Hoffmeyer ...............................VicePresident–Communications Josh Myers .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VicePresident–MemberEngagement Laurie A. Rees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VicePresident–Education&Training Ross Teare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VicePresident–GovernmentRelations Emily Brooks ........................................DigitalMediaManager Maria L. Dowers . . . . . . . . . . . . . . . . . . . . . . Executive & Government Relations Coordinator Elizabeth DeHaven ......................................EducationManager Brooke McCormack .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .EducationMeetingCoordinator Timothy Fry .............................................StaffAccountant Tracy Kubly .......................................... TechnologyManager Silvia Regalado ......................................AdministrativeAssistant FINANCIAL SERVICES ACADEMY Chris Fisher ............................................PresidentandCEO OUR ASPIRATION The Indiana Bankers Association strives to grow stronger banks and stronger communities. OUR VALUES In fulfilling our mission, we will: • maintain the highest ethics, integrity and respect for others; • provide service with professionalism, innovation and resourcefulness; • instill passion, a positive attitude and enthusiasm; and • remain mindful that the success of the IBA is judged by the success of its members. indiana.bank Vol. 109 No. 1 INDIANA BANKERS ASSOCIATION 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis, IN 46240-7321 PUBLISHER Amber R. Van Til EDITOR Evan Hoffmeyer ADVERTISING Josh Myers DESIGN The newsLINK Group SUBMISSIONS HB@indiana.bank ADVERTISING Media kits are available at indiana.bank. Advertising is reserved for members and associate members of the Indiana Bankers Association. DEADLINES Editorial and ad reservations are due the 20th of the month, two months before publication. SUBSCRIPTIONS Subscriptions are provided free of charge to members and associate members of the Indiana Bankers Association. ABOUT The flagship publication of the Indiana Bankers Association, Hoosier Banker is distributed to all banks and thrifts headquartered in Indiana, IBA-member banks headquartered out-of-state and IBA associate members. PUBLICATION DISCLAIMER Hoosier Banker (ISSN 0018 473X) is published bimonthly by the IBA Service Corp., a subsidiary of IBA Holding Company Inc., which is a wholly owned subsidiary of the Indiana Bankers Association. Material published in Hoosier Banker and on the IBA website is the property of the IBA. All rights reserved. CONTACT IBA Email IBA staff using first name initial and last name, plus “@indiana.bank” – example: JDoe@indiana.bank. JANUARY/FEBRUARY 2025 3
22 Banking on Women Connecting Women By Laurie A. Rees, Indiana Bankers Association 52 Measuring Repayment Capacity and Farm Growth Potential By Michael Langemeier, Purdue University 14 Proudly Presenting the 2025 IBA Board of Directors 10 Matt Howrey BUILDING FOR THE FUTURE 4 HOOSIERBANKER IN THIS ISSUE
Features 6 Vantage Viewpoint By Amber R. Van Til, Indiana Bankers Association 7 Chairman’s Report By Matthew W. Howrey, Indiana Bankers Association 8 2025 IBA Education Calendar COVER STORY 10 Matt Howrey Building for the Future 14 Proudly Presenting the 2025 IBA Board of Directors 22 Banking on Women Connecting Women By Laurie A. Rees, Indiana Bankers Association 28 Striking Balance in 2025 By Rebeca Romero Rainey, Independent Community Bankers of America 30 It’s Time to Stop Punting on Credit Union Accountability By Rob Nichols, American Bankers Association 44 Cyber, Fraud & Physical Security Conference By Laurie A. Rees, Indiana Bankers Association Articles COMPLIANCE CONNECTION 18 Account Agreements and Compliance Considerations for Banks By Jefferson Sorley, Compliance Alliance GR SUMMIT 20 Indiana Legislative Session 2025 Navigating Fiscal Challenges and Legislative Priorities By Dax Denton & Ross Teare, Indiana Bankers Association DIVERSITY, EQUITY & INCLUSION 26 DEI and Affirmative Action Pendulums Where Will They Land for Financial Institutions? By Robert A. Greising & Marsha Jean-Baptiste, Krieg DeVault LLP HUMAN RESOURCES 32 Conducting Effective Workplace Investigations By Debra A. Mastrian, Amundsen Davis LLC BANKER PROFILE 36 Amanda Morris-Feldman Executive Vice President, Chief Financial Officer – First Federal Savings Bank, Rochester FLD FOCUS 46 FLD Continues Its Mission and Growth By Josh Myers, Indiana Bankers Association DIRECTORS & SENIOR MANAGEMENT 48 Repercussions of Tax Policy Changes for Municipal Bonds By Dana Sparkman, The Baker Group PRODUCTS & SERVICES PROFILE 50 A Strong Solution for Indiana’s Electronic Lien & Title Law By Rod Lasley, Indiana Bankers Association AG BANKING 52 Measuring Repayment Capacity and Farm Growth Potential By Michael Langemeier, Purdue University Departments 6 Don’t Miss Out! 7 Digital Extras 13 From the Board Room 21 In Memory Of … 25 Banking Center News 31 Mergers & Acquisitions 35 Associate Members’ Corner 38 Bankers On the Move 41 Honorable Mentions 42 Banking On Community 43 Taking It Easy 49 IBA ‘High Five’ Awards 55 Staff Celebrations 55 Advertiser Index 36 JANUARY/FEBRUARY 2025 5 INTERACT WITH IBA
W for things that don’t apply to you, use the QR code to fill out a brief form letting us know what you do and do not want to know about, and we’ll customize your profile to match. Thanks once more to Ben Bochnowski for his service to the Association as its chairman last year, and congratulations to Matt Howrey on his election as chair for 2025. Welcome also to Chris Fisher, president and CEO of the new Financial Services Academy, IBA’s statewide apprenticeship program. You’ll see him at several upcoming IBA events. I look forward to working with both of these new leaders – and each of you – throughout the year! Vantage VIEWPOINT BY AMBER R. VAN TIL, INDIANA BANKERS ASSOCIATION Welcome to 2025! I hope you had a wonderful and restful holiday season, and your new year is off to a great start. Your association staff and leadership are already hard at work, particularly the Government Relations team who have been busy at the Statehouse as lawmakers embark on a budget session in partnership with a new governor. Legislators are considering property tax reform, infrastructure improvements, housing affordability and more, all while facing tighter financial conditions driven by reduced revenue growth. Read more about what we expect to work on in this legislative session on page 20 of this issue. DON’T MISS OUT! 1 FLD Day at the Statehouse March 4 Future Leadership Division participants learn about and engage in grassroots advocacy. 2 Cyber, Fraud & Physical Security Conference April 16-17 A unique opportunity to enhance security practices, foster collaboration and exchange knowledge on effective strategies. 3 Mega Conference May 27-29 Mega is the largest, most comprehensive state banking event in the nation. Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank We closed out 2024 with our popular Indiana Economic Outlook Luncheon. Held Friday, Dec. 6, the event drew more than 260 attendees, holding steady from its 2023 draw. The new year started out with another legislative touchpoint at our Legislative Briefing and Reception on Feb. 4, featuring a briefing on industry-related legislative issues followed by a reception with elected officials and a panel discussion featuring WFYI’s Indiana Week in Review Team. The Future Leadership Division will host its annual FLD Day at the Statehouse on March 4, giving up-and-coming leaders the chance to learn about and actively engage in advocacy. If you have any future leaders in mind at your institution who you think are ready to take their next step, be sure to sign them up for the acclaimed IBA Leadership Development Program. LDP begins its intensive eight-month training in March. Space is limited, so be sure to act quickly to identify your best and brightest for this program. The skills developed and lessons learned can help your emerging leaders contribute to your bank’s future. If you haven’t been getting messages from the IBA, make sure your IT team has whitelisted the @indiana.bank domain. If they have and you’re still having problems, contact our team at communications@indiana.bank, and they can help troubleshoot. If you are receiving messages 6 HOOSIERBANKER
HHaving the opportunity to be your IBA Chairman for 2025 is both an honor and privilege that I don’t take lightly. Thank you to my predecessors Jamie and Ben, and everyone who came before them. Thankfully, you guys didn’t set the bar too high! A special thanks to my best friend, Amanda, for keeping me in line, and an amazing senior management team for supporting me through even my craziest ideas. And most importantly, a big thank you to Amber and her amazing staff. We are blessed to be partnered with such an amazing association. While we will continue to be your one-stop shop for industry-leading education, communication and government relations, my goal for my term this year will be to unify our focus with one mission and one vision (almost credit union-like), and that is to promote community banking. INDIANA community banking. I want everyone to have the resources that I was so blessed to have these past 16 years, and that’s the best network of bankers in the world. Bankers like Pat Glotzbach, Brad Monts and Mark Schroeder, who paved the way for my career. Paved the way for a knucklehead like me who would have never made it without this group; who gave a 29-year-old reformed ex-examiner the confidence that we could get through the Great Recession and eventually thrive! I want us to be that group for the next generation. And the best news is that if I completely screw this up, one of the smartest bankers I’ve ever met will take over next year and clean up my mess! Dave Findlay – thank you in advance. Use the QR code to read every article in this issue, plus these digital-only stories! 1 AI & Cybersecurity Advice on how you can not only prevent AI from becoming a weakness but implement it to strengthen your cybersecurity. 2 Fed: Banks Have Strong Earnings, Asset Quality While banking fundamentals are currently strong, supervisors are keeping an eye on credit quality. 3 Customer Retention The way you support your top 20% should be different from how you support your bottom 20%. DIGITAL EXTRAS Chairman’s REPORT BY MATTHEW W. HOWREY, INDIANA BANKERS ASSOCIATION Thank you, members, for all you do to advance IBA’s efforts in advocacy, education and product-and-service offerings, ensuring that we can continue to serve the Indiana banking community well into the future. Matthew W. Howrey Chairman Indiana Bankers Association President and CEO North Salem State Bank Matt JANUARY/FEBRUARY 2025 7
2025 IBA EDUCATION CALENDAR EDUCATION CALENDAR MARCH Frontline Excellence: CEO of the Customer Experience March 4: Virtual FLD Day at the Statehouse March 4: Hyatt Regency, Indianapolis BSA Fundamentals March 4-5: Virtual Loan Operations Manager Forum March 5: IBA Center Risk Management Forum March 6: IBA Center Professional Development, Education & Training Forum March 7: IBA Center Leadership Development Program – Session 1 March 10-12: Abe Martin Lodge, Brown County State Park New Account Documentation & Compliance March 13: IBA Center *NEW* Fraud Forum March 18: IBA Center Essentials of Banking – Part 3: Banking Products and Services March 20: Virtual Analyzing Repayment Sources March 26: Virtual APRIL Understanding Bank Performance April 2-3, 9-10, 16-17, 23-24: Virtual Retail Management Series – Part 2: Building, Engaging, and Developing the Team April 15: IBA Center Cyber, Fraud & Physical Security Conference April 16-17: Embassy Suites, Noblesville Treasury Management Forum April 22: IBA Center Human Resources Directors Forum April 24: IBA Center Essentials of Banking – Part 4: How Banks Make Money, and Risk Management April 24: Virtual Construction Loans: Administering & Monitoring April 30: IBA Center MAY Commercial & Residential Appraisals: Reviewing & Monitoring May 1: IBA Center BSA Officer Forum – Group 1 May 7: IBA Center BSA Officer Forum – Group 2 May 8: IBA Center Community Bankers for Compliance – Part 2 May 13: IBA Center & Virtual Senior Retail Banking Officer Forum May 15: IBA Center Bank Security Officer Forum May 20: IBA Center Compliance Officer Forum May 20: IBA Center Essentials of Banking – Part 5: Banking Compliance Overview May 22: Virtual Mega Conference May 27-29: Indiana Convention Center, Indianapolis See all education opportunities at indiana.bank/calendar. 8 HOOSIERBANKER
Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the annual IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, RLasley@indiana.bank. This prestigious distinction, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who have left their mark in Banking Community Service Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. 2025 class of the IBA Leaders in Banking Excellence. Now through March 30, 2025, the Indiana Bankers Association is accepting nominations for the
Matt COVER STORY BUILDING FOR THE FUTURE What attracted you to banking as your career? I wasn’t actually attracted to banking as a career initially. I became interested in the bank examiner role first. The thought of travel and endless training opportunities was intriguing coming out of college. What do you most enjoy about banking? The people. The friends I’ve made since working at North Salem State Bank are priceless. We have the best customers in the world, and I wouldn’t trade it for anything. Describe a pivotal moment in your career. Back in 2008, at the start of the Great Recession, I was traveling weekly for the Department of Financial Institutions. We were examining a bank in San Ramon, California, when I got a picture of my oldest son standing for the first time. I knew then it was time to get off the road and a chance phone call from Rod Lasley led to a CFO opportunity with NSSB. HOWREY 10 HOOSIERBANKER
How does IBA involvement help your career? The single best thing the IBA has done for my career is the networking opportunities gained through Association-sponsored conferences and peer group meetings. The Indiana network of community bankers really does take care of one another. What are your leadership plans for the IBA? Help keep up the momentum, especially in education. We need the next generation to love banking just like we do. I’ll do my best to make sure younger bankers feel just as welcome and have the same opportunities as I did as an inexperienced 31-year-old CEO many years ago. What advice would you offer to young bankers beginning their careers? Get involved and never stop learning. Get involved, not only with the IBA through the likes of the Future Leadership Division, but also with local community organizations. You’ll be surprised how important your network will be to your career as you move up the ladder. And make sure you take advantage of the educational opportunities. It only gets tougher as you get older with more and more responsibilities, so get that CPA or MBA while you’re young. If you weren’t a banker, what would be your career? I would probably be a fishing guide in the Keys. JANUARY/FEBRUARY 2025 11
Tell us about an influential person in your life. Besides having great parents and a brother I idolized, I didn’t realize how important former DFI Director Charlie Phillips was to my career until I got older. He was the first to really show an interest in my professional future and a brief conversation at a seminar in Bloomington led to me going back to school to get my MBA. Describe your home life. What do you like to do for fun? My home life is awesome and very rewarding. I’m the proud dad of two high school boys so we never have a dull moment. I’m usually into whatever they are into at the moment; currently baseball, hunting and fishing. Whatever we do, it normally involves friends and family enjoying the great outdoors on the water somewhere. COVER STORY CONT. 12 HOOSIERBANKER
With C/A’s Assurance Services, we schedule audits in a tight, 21-day, Start-to-Draft Report turnaround. Avoid the waiting game with Compliance Alliance. (888) 353-3933 or info@compliancealliance.com Where’s the dang audit report? GBC Bank, Greenfield, added two new members to its board on Oct. 1. Katie Culp is CEO at KSM Location Advisors, leveraging her more-than two decades of experience in economic development, real estate and consulting to lead the firm’s site selection and incentive practice. She also serves on the boards of the Indy Chamber and WFYI, the Indianapolis area’s NPR and PBS member station. Culp earned both her bachelor’s and master’s degrees from Indiana University. Michael O’Connor serves as principal at Bose Public Affairs Group. He is also a member of the board of directors for the Indianapolis Indians, board vice president for Goodwill of Central and Southern Indiana, and board chair for the National Institute for Fitness and Sport. O’Connor has previously held several prominent positions in government, including commissioner of the Indiana Department of Environmental Management under Gov. Evan Bayh and a presidential appointment to the U.S. Environmental Protection Agency. He earned his bachelor’s degree from Indiana University. FROM THE BOARD ROOM Alliance Junior Board Visits Pulaski Memorial Hospital The Junior Board of Directors for Alliance Bank, Francesville, visited Pulaski Memorial Hospital in November. They toured the Winamac facility and learned about the various roles needed to operate the hospital. The junior board program invites students from local high schools to apply at the end of their sophomore year for a two-year term. They meet monthly during the school year at a variety of local businesses and nonprofits to learn how each organization runs and the career opportunities available in their community. They also volunteer together at local charities. (front row, from left) Madyson Westerhouse, Heiden Morales, Cole Woodley, Kandace Kroft, Sydney Mellon, Audrey Dickinson and Genevieve Stroetz. (back row, from left) Maddox Gutwein, Jalie Glasford, Brendan Hines, Kaelyn O’Connor, Ethan Need, Brody Koppelmann, Conner Bunger and Carter Sterrett. JANUARY/FEBRUARY 2025 13
F E ATUR E Proudly Presenting THE 2025 IBA BOARD OF DIRECTORS ABA MEMBERSHIP COUNCIL Garry D. Kleer First Bank Richmond ICBA STATE DIRECTOR Kent A. Liechty First Bank of Berne IBA FLD PRESIDENT Amanda Morris-Feldman First Federal Savings Bank, Rochester NON-INDIANA HEADQUARTERED BANKS Karen B. Woods First Financial Bank, Cincinnati CHAIR Matthew W. Howrey North Salem State Bank FIRST VICE CHAIR David M. Findlay Lake City Bank, Warsaw SECOND VICE CHAIR Lisa Arnold Home Bank, Martinsville IMMEDIATE PAST CHAIR Benjamin J. Bochnowski Peoples Bank, Munster PRESIDENT & CEO Amber R. Van Til Indiana Bankers Association IBA OFFICERS CONSTITUENT DIRECTORS AT-LARGE DIRECTORS AT-LARGE Mark “Doc” Holt First Farmers Bank & Trust Co., Converse AT-LARGE Nicole S. Lorch First Internet Bank, Fishers REGIONAL DIRECTORS NORTH REGION J. Daniel Maddox Citizens State Bank, New Castle NORTH REGION Bradley J. Monts Hoosier Heartland State Bank, Crawfordsville NORTH REGION Jacqueline M. Ruge-Perkins First State Bank of Porter SOUTH REGION Mark E. Bruin The National Bank of Indianapolis SOUTH REGION David A. Coffey Mutual Savings Bank, Franklin SOUTH REGION Eric J. Lane First Federal Savings Bank of Washington 14 HOOSIERBANKER
MATT HOWREY Matt Howrey introduces Tom Fite, director of the Indiana Department of Financial Institutions and Howrey’s former boss, at the IBA’s 2024 Legislative Briefing and Reception at the Hyatt Regency in downtown Indianapolis. Matthew W. Howrey, 2025 chair, is president and CEO of North Salem State Bank. Prior to joining the bank in 2008 as chief financial officer, he served as a bank examiner for the Indiana Department of Financial Institutions. Howrey’s community leadership includes the Hendricks County Community Foundation and the Putnam County 100 Men Who Care. He earned bachelor’s and MBA degrees from Indiana University and was named a Rising Star in Banking in 2013 by BankBeat magazine, formerly Northwestern Financial Review. The Indiana Bankers Association operates under the guidance of the Association’s Board of Directors. Acting as the governing body of the IBA, the Board consists of 17 members: three elected officers, one past chairman, the association president/CEO, two representatives of national associations, the Future Leadership Division president, a non-Indiana headquartered bank director and eight regional and at-large directors. The Board, acting with the same authority as the board of a bank or corporation, develops IBA policy and establishes long-range goals and objectives. Directors also help determine the IBA’s legislative programs and positions on banking-related issues. An executive committee — consisting of the chair, first and second vice chairs, immediate past chair, association president/CEO and two directors appointed by the chair — is authorized to act in lieu of the Board between regular board meetings. Officers serve one-year terms and are elected by the membership at the IBA Annual Convention. Members of the 2025 Board assumed their positions on Jan. 1. DAVID FINDLAY David Findlay speaks at a meeting of the IBA’s Board of Directors at the Association’s 2024 Mega Conference at the Indiana Convention Center in Indianapolis. David M. Findlay, first vice chair, is chairman and chief executive officer of Lake City Bank, Warsaw, and Lakeland Financial Corporation. He additionally serves on the board of directors of both the bank and holding company. Findlay joined the organization in 2000 as executive vice president of administration and chief financial officer, and from 2010 to 2014, served as president and CFO. Previously, he served for five years with Quality Dining Inc., South Bend, concluding as senior vice president and CFO. Findlay began his career with The Northern Trust Company, Chicago, serving in several capacities from 1984 to 1995, when he was a vice president in the commercial lending group. He is active as a board member with organizations including the Indiana Chamber of Commerce, the Central Indiana Corporate Partnership, OrthoWorx, Orthopedic Capital Foundation, AcceLINX, the Northeast Indiana Regional Partnership, Trine University, Parkview Regional Health Center and Centerfield Capital Partners. Findlay is a member of the Indiana Bankers Association class of 2019 Leaders in Banking Excellence, the Association’s highest honor. He is a graduate of DePauw University. LISA ARNOLD Lisa Arnold speaks with a fellow attendee in the exhibit hall at IBA’s 2024 Annual Convention at the French Lick Springs Resort. Lisa Arnold, second vice chair, is president and CEO of Home Bank, Martinsville. She joined the bank in 1985 and has served in 15 JANUARY/FEBRUARY 2025
positions including branch manager, vice president of retail banking, chief operations officer and, most recently, president and chief operating officer. In addition to various community affiliations, Arnold is a trustee for the IBA Group Insurance Trust and was appointed to the Indiana Board of Depositories in 2024. She is a former member of the Franklin College Alumni Council and a past president of the Indiana Bankers Association Future Leadership Division. She earned a bachelor’s degree from Franklin College and an MBA from Indiana Wesleyan University. Arnold also is a graduate of the American Bankers Association Stonier Graduate School of Banking and the ABA National Commercial Lending School. BEN BOCHNOWSKI Ben Bochnowski welcomes attendees to the Associate Member Reception kicking off the IBA’s 2024 Mega Conference at the Westin Indianapolis Downtown. Benjamin J. Bochnowski, immediate past chair, is CEO of Peoples Bank, Munster, as well as president and CEO of its holding company, Finward Bancorp. He also serves on the board of directors of the Indiana Department of Financial Institutions, a position he was appointed to by Gov. Eric Holcomb in 2019. Bochnowski joined Peoples Bank in 2010 and the Finward Bancorp board of directors in 2014. He was named president of Peoples Bank in 2015, and promoted to CEO of the bank and holding company in 2016. He serves locally on the board of directors of One Region, dedicated to attracting and retaining talent in northwest Indiana; and Allies for Community Business. Bochnowski earned a bachelor’s degree from the University of Michigan, an MBA from the ESADE Business School in Barcelona, Spain, and a leadership certificate from the Wharton School at the University of Pennsylvania. Additionally, he is a graduate of the ABA Stonier Graduate School of Banking. Bochnowski was honored as a 2020 Rising Star in Banking by BankBeat magazine. AMBER VAN TIL Amber Van Til addresses the audience at a reception honoring Lucas White, president of The Fountain Trust Company, Covington, upon his taking on the role of chairman of the Independent Community Bankers of America at ICBA’s 2024 annual convention in Orlando, Fla. Amber R. Van Til is president and CEO of the Indiana Bankers Association and a trustee of the IBA Group Insurance Trust. She joined the Association in 2002 as a lobbyist and has served the IBA as vice president-government relations, senior vice president-government relations, executive vice president and president before being named president and CEO in 2017. She is a trustee of the Graduate School of Banking at the University of Wisconsin and of the Herbert V. Prochnow Educational Foundation; on the governance and industry committees of iLab, an organization helping establish youth apprenticeship programs across the state; and a member of the American Bankers Association’s State Association Alliance, Independent Community Bankers of America Federal Delegate Board, Friends of Traditional Banking board of directors, Governmental Affairs Society of Indiana, The Columbia Club and the Indiana Society of Association Executives. Van Til was honored as ISAE Association Executive of the Year in 2023 and in 2015 as Association Professional of the Year. In 2008, she won in the category of Banking & Financial Services for the Best & Brightest awards, sponsored by Junior Achievement of Central Indiana Inc. She is a graduate of the University of Indianapolis and of the Indiana University Robert H. McKinney School of Law, has completed the Lacy Leadership LEAD program and the Graduate School of Banking at the University of Wisconsin, and has earned a Certificate of Executive Leadership from the UW School of Business. 16 HOOSIERBANKER FEATURE CONT.
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B Account Agreements AND COMPLIANCE CONSIDERATIONS FOR BANKS BY JEFFERSON SORLEY, COMPLIANCE ALLIANCE Banks provide account agreements to consumers, outlining critical terms and conditions that govern their business interactions. These agreements serve as essential documents that clarify the rights, obligations and expectations of the banking relationship. Typically, banks provide two types of agreements: one for bank accounts and another for loans. The details included in these agreements vary depending on the type of account or service. Common categories of information in the agreements include bank and customer liability, deposit and withdrawal rules, check processing, rights to setoff (offset), account information security, and procedures for addressing disputes and errors. Additionally, they serve to ensure that consumers are well-informed about their relationship with the bank, enhancing transparency and fostering a better understanding of each party’s responsibilities. Content Requirements and Disclosures in Agreements Banks have some flexibility in determining the content of their account agreements; however, state and federal regulations mandate that certain disclosures be provided to consumers at specific stages, such as at application or at account opening. Integrating these disclosures directly into their account agreements helps banks streamline processes and mitigates the risk of regulatory breaches. In addition to regulatory compliance, banks often incorporate legal disclaimers and waivers to minimize liability and clarify any limitations on the bank’s obligations to customers. Ensuring Compliance Through Clear Disclosures Regulatory requirements extend beyond simple disclosure mandates. Banks must also ensure that disclosures are clear, accurate and not misleading. Ambiguities or inaccuracies can expose banks to litigation and regulatory penalties. Effective disclosures empower consumers by providing them with the knowledge they need to make informed decisions about their banking relationships. Consequently, banks must review their agreements regularly to ensure that the language used remains consistent with current legal standards and consumer protection regulations. Prohibited Terms and Conditions in Consumer Agreements While banks have considerable leeway in crafting their agreements, certain terms and conditions are explicitly prohibited by law. In June 2024, the Consumer Financial Protection Bureau released a circular1 highlighting unlawful and unenforceable terms that banks must avoid. It outlines a range of prohibited practices that banks need to be aware of. Prohibited terms and conditions commonly seen in agreements that need to be corrected or clarified include: 1. Prohibited Arbitration Clauses in Mortgage and Credit Agreements The inclusion of certain terms in contracts for consumer financial products or services may violate the prohibition when applicable federal or state law renders such contractual terms, including those that purport to waive consumer rights, unlawful or unenforceable. The Truth COMPLIANCE CONNECTION 18 HOOSIERBANKER
in Lending Act prohibits the inclusion in a residential mortgage loan or open-ended consumer credit plan secured by the principal dwelling of terms requiring arbitration or any other nonjudicial procedure as the method for resolving any controversy or settling claims arising out of the transaction.2 This measure ensures consumers retain the right to pursue legal action in court if necessary. By maintaining consumer access to judicial recourse, the Truth in Lending Act reinforces critical consumer protection measures. 2. Limitations on Servicemembers’ Legal Rights The Military Lending Act generally prohibits terms in certain consumer credit contracts that require servicemembers and their dependents to waive the covered borrower’s right to legal recourse under any otherwise applicable provision of state or federal law, including any provision of Servicemembers Civil Relief Act.3 If the SCRA applies, creditors may not compel arbitration. Additionally, the SCRA was amended to codify the unwaivable right of servicemembers to bring and participate in class actions, “notwithstanding any previous agreement to the contrary.”4 3. Restrictions on Remittance Transfer Consumer Claims Under the Electronic Fund Transfers Act, remittance transfer providers are barred from limiting a consumer’s ability to seek damages or recover costs and attorney fees in disputes. Such limitations are in direct conflict with provisions found in sections 1693m(a)(3) and 1693(l) of the EFTA,5 which establish liability for providers and ensure that consumers have recourse to adequate remedies. This protection emphasizes the importance of holding remittance providers accountable for errors, delays or failures that can have significant financial repercussions for consumers. 4. Disclaimers that Misrepresent Legal Obligations Contractual disclaimers such as “subject to applicable law” or “except where unenforceable” are insufficient to cure the inclusion of otherwise unlawful terms. The use of these disclaimers can mislead consumers into believing certain actions are permissible under some conditions when, in fact, they are not. Courts, including in Ruth v. Triumph Partnerships (577 F.3d 790, 801-02), have found such phrasing problematic, as it implies a conditional legality that is often legally unsupported. Banks must avoid using disclaimers that create an appearance of legality where none exists. Regular Compliance Reviews and Legal Counsel Involvement Given the complex and evolving regulatory landscape, banks are encouraged to conduct compliance reviews of their account agreements at least annually. Legal counsel should play a key role in this review process, as attorneys can provide expertise on current legal standards, identify potential issues with existing disclaimers and waivers, and recommend necessary updates to reflect new legal developments. Banks that proactively monitor agreements ensure terms and conditions uphold consumer protections and minimize legal risks. 1 “Unlawful and Unenforceable Contract Terms and Conditions” (CFPB Circular 2024-03), https://bit.ly/CFPB-2024-03 2 See 12 CFR 1026.36(h)(1), “Prohibited acts or practices and certain requirements for credit secured by a dwelling”. https://bit.ly/3ZWXQVS 3 See 32 CFR part 232.8(b), “Limitations”. https://bit.ly/CFR232-8 4 See 50 USC 4042(a), “Private right of action”. https://bit.ly/50USC4042a 5 See 15 USC 1693(m)(a)(3), “Civil liability”, and 1693(l), “Waiver of rights”. https://bit.ly/3VZY5hM Jefferson Sorley, Jur. M, CRCM Director of Reviews and Products Compliance Alliance info@ComplianceAlliance.org Sorley has more than a decade of expertise in financial institution compliance. His competencies include state regulatory exam management, compliance program management, research and application of applicable federal and state laws and statutes, evaluating internal controls and developing control recommendations. Compliance Alliance is a Preferred Service Provider of the Indiana Bankers Association. JANUARY/FEBRUARY 2025 19
T Indiana LEGISLATIVE SESSION 2025 NAVIGATING FISCAL CHALLENGES AND LEGISLATIVE PRIORITIES BY DAX DENTON & ROSS TEARE, INDIANA BANKERS ASSOCIATION The Indiana General Assembly’s 2025 session is shaping up to be pivotal. As an odd-numbered year, this “long session” centers on crafting Indiana’s biennial budget, which determines state funding for the next two years. The session spans nearly four months and has a legislative deadline of April 29 for completing all activities. Before 1970, these budget years were the only times the General Assembly convened. There were no “short sessions” in even-numbered years. This meant that if an issue surfaced after the legislature adjourned, Hoosiers had to wait nearly two years before lawmakers could address the matter. Unlike the 2024 short session, which ended earlier than expected, this year’s long session is expected to utilize its full 16-week timetable, which started Jan. 8. The budget process will dominate the agenda, with the House spearheading efforts in the first half and the Senate taking over in the second half. Following the record-setting brevity of the 2024 “transition session,” the 2025 session is expected to be more intensive. Lawmakers are prioritizing property tax reform, infrastructure improvements, energy policy, housing affordability and maintaining funding for public safety and education. They also face the significant challenge of setting the state’s budget without the cushion of high revenue growth from the COVID-19 pandemic, which bolstered Indiana’s reserves during the previous budget cycle. The transition to a new administration adds to the complexity as Gov. Mike Braun’s priorities take center stage as he settles into his role. A blue-ribbon tax committee has spent the past two years studying Indiana’s tax system. Initially focused on eliminating the state income tax, the committee shifted its attention to property taxes. This focus will shape the 2025 session, with the legislature expected to introduce several property tax bills. Gov. Braun’s administration is also proposing a property tax plan aimed at alleviating financial pressure on Hoosiers who have faced rising property tax bills in recent years. Lawmakers anticipate compromises between Braun’s proposals and legislative alternatives, especially given the financial constraints of a budget year. The tighter financial conditions of 2025, driven by reduced revenue growth, add another layer of difficulty to crafting a balanced budget. Lawmakers must strategically address critical state challenges while providing tax relief and maintaining essential services. The IBA’s government relations team is defending against problematic legislation and proactively addressing issues identified over the summer related to public deposits. We are engaging in discussions to mitigate risks to the banking industry while advocating for sound public policy. The long session offers a crucial opportunity to tackle these and other pressing issues. Stakeholders widely agree that annual legislative sessions are vital for ensuring responsive and effective governance. With a packed agenda and significant fiscal challenges, Indiana lawmakers have their work cut out for them in 2025. However, the extended timeline provides the opportunity to navigate these complexities and deliver meaningful outcomes for Hoosiers. GR SUMMIT 20 HOOSIERBANKER
William “Bill” R. Hoffman passed away on Oct. 23, 2024. He was 87 years old. Hoffman was a bank director for 42 years – 21 with the Bank of Ireland (Indiana) and another 21 with German American Bank, Jasper, after the institutions merged. Outside the bank, he served as president and director of the Patoka Valley Feed Corporation for 18 years, and was a member of the Ireland Lions Club, Ireland Sportsman’s Club, Dubois County Museum and the Dubois County Historical Society. Hoffman served as military police with the U.S. Army Reserves for eight years. He is survived by his wife of 64 years, two sons, five grandchildren, a great-granddaughter and three siblings. In lieu of flowers, contributions can be made to St. John’s Lutheran Church in Boone Township, where he was a lifelong member and a member of the church council, or the Dubois County Museum. John William Roederer passed away on Oct. 3, 2024. He was 72 years old. Roederer spent his career in the financial industry. After graduating from the University of Kentucky, he spent 20 years with the Office of the Comptroller of the Currency before moving on to another 20 years at Salin Bank, Indianapolis, before it was acquired by Horizon Bank, Michigan City. He then worked as an investment advisor at CINCaP Investment Group, an IBA associate member, until his passing. Roederer is survived by his wife of 50 years, two children and two siblings. In lieu of flowers, contributions can be made to Conquer Cancer in Alexandria, Virginia, or Craine House in Indianapolis. Alan Eugene Williams passed away on Sept. 18, 2024. He was 75 years old. Williams was a teacher for five years before entering the banking industry. He retired from Ameriana Bank, New Castle, in 2013 before the bank merged with First Merchants Bank, Muncie, in 2016. Williams was active with IBA events and met his wife, Sonja A. (Kriegsmann) Williams, through the Association when she served as a staff member and consultant. Williams was a member of the New Castle Chamber of Commerce and Henry County Emergency First Aid Unit. In lieu of flowers, contributions can be made to the Indiana University Foundation for the Medical Research Fund or Hillsdale College. Dax Denton Chief Policy Officer Indiana Bankers Association DDenton@indiana.bank Dax joined the IBA in 2008 and, as of April 2023, also serves as executive director for the Indiana Mortgage Bankers Association. Away from the office, he serves on the Boy Scouts Crossroads of America Council Board. Dax graduated from Indiana University, the IBA Leadership Development Program and the Graduate School of Banking at the University of Wisconsin. Ross Teare Vice President – Government Relations Indiana Bankers Association RTeare@indiana.bank Ross joined the IBA in October 2021. He analyzes issues, reviews legislation, builds relationships with policymakers and enhances IBA’s grassroots advocacy. Ross also heads up the IBA’s BankLEAD internship program and efforts to grow banking programs at Indiana colleges. He graduated from Butler University and the IBA Leadership Development Program. IN MEMORY OF … Michael A. Renninger Principal (317) 695-7939 mrenninger@renningerllc.com Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Road Davenport, IA, 52807 (563)326-2064 Member: FINRA, SIPC. Renninger & Associates, LLC and Ausdal Financial Partners, Inc. are independently owned and operated. www.renningerllc.com "For an ObjecƟve Assessment of Your Challenges and Professional ExecuƟon of Your OpportuniƟes" Buy-Side and Sell-side Representa�on involving whole banks, branches, and non-bank affiliates Stock Valua�ons and Fairness Opinions CPA-trained and CFO-experienced Indiana professionals serving Indiana banks. Our services include: JANUARY/FEBRUARY 2025 21
MCONNECTING WOMEN BY LAURIE A. REES, INDIANA BANKERS ASSOCIATION More than 475 attendees, vendors and speakers packed the Embassy Suites in Noblesville Nov. 6-7 for the 8th annual IBA Banking on Women Conference. Helmed by 2024 conference committee chair Karen Woods of First Financial Bank, Cincinnati, this year’s conference lived up to its reputation as a platform where women take the lead. Powerhouse educational sessions tackled mentoring and company culture, intergenerational workforces, artificial intelligence, the art and science of making meaningful connections, and more. The conference marked the return of IBA’s prestigious Banking on Women Awards presentations. Danielle Conner, senior vice president of risk management at Owen County State Bank, Spencer, was honored as the 2024 IBA Woman of the Year. The award, sponsored by Krieg DeVault LLP, celebrates women in banking for their professional excellence, community engagement and track record of supporting other women in reaching their full potential. Taylor Mills, vice president at First Farmers Bank & Trust Co., Converse, was honored as the 2024 IBA Woman on the Rise. The award, sponsored by Amundsen Davis LLC, recognizes a woman in banking age 40 or younger who is making a significant impact in her industry and community through engagement, drive and teamwork. Attendees had plenty of time to cut loose and have some fun as well. After dinner on Wednesday was entertainment from Kat Perkins, a contestant from NBC’s hit singing competition, “The Voice.” Networking breaks between each educational session gave attendees the chance to connect with colleagues and expand their professional networks. These breaks also provided the opportunity to peruse items available for bid in this year’s silent auction, benefiting Girls Inc. of Greater Indianapolis. The organization offers comprehensive programming in healthy living, academic enrichment and support, and life skills instruction to participants ages 5-24. This year’s auction raised a total of $7,720. Thank you to our planning committee, attendees, speakers and sponsors for making this another rousing success. Be sure to save the date for our 2025 conference – a little earlier than normal – Oct. 22-23, back at the Embassy Suites in Noblesville! Laurie A. Rees Vice President – Education & Training Indiana Bankers Association LRees@indiana.bank Laurie is responsible for planning, designing and implementing IBA educational offerings, including schools, seminars, executive-level forums and webinars. She is also the IBA’s liaison for the Graduate School of Banking at the University of Wisconsin and a member of the GSB Education Directors Advisory Group. Banking on WOMEN 22 HOOSIERBANKER
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