INSIDE Larry Myers, First Savings Bank, Clarksville, is prepared and positive as IBA chairman. Story on page 9. Hoosier Banker JANUARY 2015
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Indiana Bankers Association Officers, Directors & Staff IBA Officers Chairman ...................................................... Larry W. Myers, First Savings Bank, Clarksville FirstVice Chairman ............................... Michael H. Head, First Federal Savings Bank, Evansville SecondVice Chairman ................. Annette M. Russell, Security Federal Savings Bank, Logansport Immediate Past Chairman ............................................ David W. Heeter, MutualBank, Muncie President and Chief Executive Officer ..... S. Joe DeHaven, Indiana Bankers Association, Indianapolis Constituent Directors ICBA State Director ........................................ David M. Geis, Jackson County Bank, Seymour ABA Membership Council ....................... Michael K. Bauer,Your Community Bank, New Albany Future Leadership Division President .......... Lucas White,The Fountain Trust Company, Covington Non-Indiana Headquartered Bank Director ............... Tim Massey, BMO Harris Bank, Indianapolis Northeast Region Directors Michael C. Marhenke, iAB Financial Bank, Fort Wayne Gregory Maxwell, Farmers State Bank, Mentone Michael S. Zahn, First Federal Savings Bank, Huntington Northwest Region Directors Patrick Duffey, State Bank of Burnettsville Karen I. Miller,The Farmers Bank, Frankfort Arden L. Cramer, Logansport Savings Bank, FSB Southeast Region Directors George W. Ferriell, Bath State Bank Archie M. Brown Jr., MainSource Financial Group, Greensburg Dennis Wayman, State Bank of Medora Southwest Region Directors Kurt D. Rosenberger, Our Community Bank, Spencer Matthew W. Howrey, North Salem State Bank Clay W. Ewing, German American, Jasper IBA Staff President & Chief Executive Officer ........................................................... S. Joe DeHaven ExecutiveVice President .............................................................. Paul W. Freeman, CAE SeniorVice President–Government Relations ........................................ Amber R.VanTil, JD Vice President–Meetings & Events ............................................ Christina M. Bennett, CMP Vice President–Government Relations ........................................................... Dax Denton Vice President–Products & Services ................................................................. Rod Lasley Vice President–Education & Training ........................................................... Laurie A. Rees Vice President–Communications .................................................................. Laura Wilson Events & Products/Services Assistant .............................................................. Susan Clark Education Meeting Coordinator ................................................................ Elizabeth Kilty Education Meeting Coordinator ................................................................. Marlene Wells Staff Accountant ....................................................................................... Timothy Fry IT and Facilities Manager ...................................................................... Tracy Wainscott Administrative Assistant ........................................................................... Michelle Long Government Relations & Communications Office Manager ............................ Joshua A. Myers Email addresses: First initial of the staff member’s first name plus last name; example: jdoe@indianabankers.org Please send news releases to: IBAcommunications@indianabankers.org Mission To advocate for and sustain an environment in which banks can succeed. Vision To provide exemplary service to members as the premier state bank trade association in the country. Values In fulfilling our mission, we will: • Maintain the highest ethics, integrity and respect for others; • Serve with professionalism, innovation and resourcefulness; • Instill passion, positive attitude and enthusiasm; • Remain mindful that the success of the IBA is judged by the success of its members. View Hoosier Banker Digital at www.ourdigitalmags.com/ publication/?m=19522&l=1. Publication Disclaimer 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 99 NO. 1 6925 Parkdale Place Indianapolis IN 46254-4673 Phone: 317-387-9380 Fax: 317-387-9374 Twitter@indianabankers www.indianabankers.org Publisher: S. Joe DeHaven Editor: Laura Wilson Advertising: Rod Lasley Send news releases to: IBAcommunications @indianabankers.org 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 members. Copy deadline: first of the month preceding publication. Advertising: Rates available upon request or online at www.indianabankers.org. Advertisers should provide electronic PDFs by the 15th of the month preceding publication. Hoosier Banker advertising is available to members and associate members of the Indiana Bankers Association only. Subscriptions: Hoosier Banker subscriptions are provided free of charge exclusively to members and associate members of the Indiana Bankers Association. Public access to Hoosier Banker Digital is available at www.indianabankers.org. COVER STORY 9 LARRY MYERS: PREPARED AND POSITIVE FEATURES 6 PRESIDENT’S PONDERINGS S. Joe DeHaven, IBA 8 IBA CALENDAR OF EVENTS 13 BANKING ON COMMUNITY: RESULTS OFYEAR 2014 SURVEY 21 IBA PRESENTS 2015 BOARD OF DIRECTORS GR SPOTLIGHT 17 THE 2015 INDIANA POLITCAL HORIZON Amber R.Van Til, IBA PSP SHOWCASE 18 MANAGING INTEREST RATE RISK: LET THE PROFESSIONALS HELP Rod Lasley, IBA EDUCATION ROUNDUP 19 IBA CO-HOSTS MIDWEST AGRICULTURAL BANKING SCHOOL SECURITY / FRAUD 28 DEBIT ISSUER STUDY SHOWS RENEWED CARD SECURITY FOCUS Steve Sievert, PULSE DIRECTORS / SENIOR MANAGEMENT 30 PREPARING AHEAD BY LOOKING BACK: A REVIEW OF TOP 10 AREAS OF COMPLIANCE SCRUTINY Pam Perdue, Continuity Control DEPARTMENTS 12 VIDEO BONUS 16 IN MEMORY OF 25 BANKING ON COMMUNITY 26 COMPLIANCE CONNECTION Larry C.Tomlin, Krieg DeVault LLP 27 HONORABLE MENTIONS 29 TAKING IT EASY 32 NEW BRANCHES, BUILDINGS & OPENINGS 33 BANKERS ON THE MOVE 34 ADVERTISERS INDEX 5 Hoosier Banker January 2015 Larry W. Myers, president and chief executive officer of First Savings Bank, Clarksville, is serving the IBA as 2015 chairman of the board.
6 Hoosier Banker January 2015 As I continue to study the genius of the founding fathers of this great country called the United States of America, I am amazed at how comprehensively, yet simply, they organized our government. Take the first amendment of the Constitution of the United States, which reads: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. ”This straightforward sentence covers a lot of ground. Millions of words have been spoken and written to describe what it means, or at least how a particular author believes it should be interpreted. The last portion, “and to petition the Government for a redress of grievances,” provides the right, and arguably the responsibility, for groups and individuals to be represented in front of elected officials. In other words, this constitutional passage authorizes lobbying, grassroots efforts and financial support for candidates who share our concerns. The Indiana Bankers Association, our sister associations in every state, the American Bankers Association and the Independent Community Bankers of America all represent the business of banking and bankers. Collectively and individually, these groups represent those banking interests in various venues on a wide range of issues. Nearly any group of people with a common cause has its own team of lobbyists who represent them. Though lobbyists are often maligned, their responsibility is legitimized by the First Amendment to the Constitution. Not only does our foundational document legitimize those of us who regularly interact with and educate legislators and government administrators, but it also legitimizes and even encourages individuals to be active in grassroots efforts. For bankers, there are many opportunities to do this grassroots work. Your Indiana Bankers Association encourages you to sign up for VoterVoice, a communications system designed specifically for grassroots efforts and available on the IBA website. IBA also encourages your support of ICBA and ABA efforts in Washington, D.C., during their respective government relations fly ins, as well as participation in the IBA Annual Washington Trip, scheduled this year for Sept. 27-29. Last year nearly 70 people attended this trip. This year IBA Chairman Larry Myers has set a goal of 80 participants to attend, as he states on page 11. Coming up soon is our annual Legislative Reception. The IBA consistently hosts one of the most attended and successful legislative events during the General Assembly Session each year. Even though it is the U.S. Constitution that guarantees the right to petition government, that right later was FEATURE President’s Ponderings S. Joe DeHaven, President & Chief Executive Officer, Indiana Bankers Association extended to the states. In 1908, President Theodore Roosevelt said it best: “Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere.” Essentially, this is what the IBA, ABA and ICBA do – we advocate to improve conditions within your sphere. Though these associations provide expertise, professionalism and relationships, it is only our constituents – our member bankers – who can provide the elemental grassroots information. It also is you, our members, who provide the funding, through our PAC, to allow our industry to help those candidates who share our concerns. IBA, ICBA and ABA have a symbiotic relationship with our collective bank members. We need each other in order to assure that we can succeed. Your next opportunity to participate in this constitutionally granted right will be at the 2015 Legislative Reception, to be held at the Hyatt Regency Indianapolis across from the Statehouse from 5-7 p.m. on Feb. 3. IBA will be there, elected officials will be there, and over 100 bankers will be there. Will you? Upcoming IBA Grassroots Events Legislative Briefing and Reception – Feb. 3, Hyatt Regency Indianapolis A briefing at 4 p.m. by the IBA Government Relations Team will update IBA members on pressing issues in the 2015 Indiana General Assembly. The following reception from 5-7 p.m. gives IBA members the opportunity to meet face-to-face with elected officials. Day at the Statehouse – March 16, Indiana Statehouse Sponsored by IBA’s Future Leadership Division, this inaugural event will help connect emerging leaders in Indiana banking with the legislative process that affects banking operations. IBA Annual Washington Trip – Sept. 27-29, Washington, D.C. This hallmark event gives IBA members a chance to meet with legislators in our nation’s capitol. Additionally, a strong showing of Indiana bankers demonstrates to legislators that the voice of the Indiana banking community needs to be heard. Access IBA VoterVoice, the legislative action center of the Indiana Bankers Association, at indianabankers.org/votervoice. Details about VoterVoice are available in the December 2014 Hoosier Banker, page 20.
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CALENDAR UPDATE 8 Hoosier Banker January 2015 Calendar of events Register online at indianabankers.org/education-events The IBA Center for Professional Development is located at 6925 Parkdale Place, Indianapolis. Phone: 317-387-9380. Alternative Delivery Channels … Available at your convenience via Webinar, CD-ROM or On-Demand Legislative Briefing and Reception Feb. 3 - Hyatt Regency Indianapolis Community Bankers for Compliance Series: Session 1 Feb. 9 - Courtyard by Marriott, Fort Wayne Feb. 10 - IBA Center Feb. 11 - IBA Center Managing Appraisals and Evaluation Requirements in Community Banks Feb. 12 - IBA Center Chief Financial Officer Forum Feb. 17 - Group 1 - IBA Center Feb. 20 - Group 2 - IBA Center Call Report: Review and Update Feb. 17 - IBA Center Essentials of Banking, Session 1 - Banking 101 Feb. 18 - IBA Center Senior Lender Forum Feb. 18 - Group 1 - IBA Center Feb. 19 - Group 2 - IBA Center The Customer Onboarding Experience - Increasing Share of Wallet Feb. 19 - IBA Center IRA Basics Feb. 24 - IBA Center Marketing Director Forum - New! Feb. 24 - IBA Center Advanced IRA Review and Update Feb. 25 - IBA Center IT and Operations Officer Forum Feb. 26 - Group 1 - IBA Center Feb. 27 - Group 2 - IBA Center Indiana Deposit Account Administration March 5 - IBA Center IBA Leadership Development Program: Session 1 - It’s Simple, But It Isn’t Easy March 10-13 - Wooded Glen Executive Retreat & Conference Center, Henryville Day at the Statehouse, sponsored by IBA Future Leadership Division March 16 - Indiana Statehouse Understanding and Implementing the New Integrated Disclosure Rules March 16-17 - IBA Center Human Resources Director Forum March 17 - IBA Center Annual Security and Risk Management Conference March 18-19 Indianapolis Marriott North Training the Credit Analyst March 24-25 - IBA Center Trust Officer/Financial Adviser Forum April 7 - IBA Center Home Mortgage Disclosures Act Seminar April 9 - IBA Center Social Media Bootcamp:The Risks and Opportunities of Your Bank’s Online and Social Media Footprint April 14 - IBA Center Branch Management Series: Session 2 - Growing the Retail Bank April 21 - IBA Center Essentials of Banking: Session 2 - Business Operations and Management April 22 - IBA Center Train the Trainer: Plans, Programs and Processes That Work April 23 - IBA Center IBA Consumer Lending School April 28-29 - IBA Center Senior Retail Lender Forum May 6 - IBA Center Today’s Bank Board Secretary - More Than Just Taking Minutes May 7 - IBA Center IBA Mega Conference May 11-13 - Indiana Convention Center Community Bankers for Compliance Series: Session 2 May 11 - Courtyard by Marriott, Fort Wayne May 12 - IBA Center May 13 - IBA Center Risk Management Officer Forum May 21 - IBA Center BSA/AML Compliance School June 2-3 - IBA Center IBA Leadership Development Program: Session 2 - Do Something That Scares You June 3-5 - Wooded Glen Executive Retreat & Conference Center, Henryville IBA Commercial Lending School June 7-12 - IBA Center Chief Financial Officer Forum June 16 - Group 1 - IBA Center June 19 - Group 2 - IBA Center Integrated Disclosure Rules for Processors and Lenders June 16 - Location TBD June 17 - IBA Center IBA Commercial Lending School June 7-12 - IBA Center Senior Lender Forum June 17 - Group 1 - IBA Center June 18 - Group 2 - IBA Center Auditing Operations June 18 - IBA Center Feb. 3 - Revisiting Your RESPA and TILA Policies to Include the New Integrated Disclosure Requirements Feb. 4 - Excel Explained: Internal Control Feb. 4 - Understanding Appraisals and Appraisal Review Concepts for Lenders Feb. 5 - Environmental Risk Management Feb. 5 - New BSA Officer Training Feb. 6 - Non-Resident Aliens Feb. 9 - For Sales Managers: How to Hire Better Salespeople Feb. 10 -Your Renter Died;Who Can Access the Box? 2015 Update Feb. 10 - FASB/GAAP Update, Including Proposed Modifications to ALLL Calculations Feb. 11 - Qualifying Borrowers Using Personal Tax Returns Part 1: Basics, Itemized Deductions, Interest and Dividend Income, Sole Proprietorships and Capital Gains Feb. 12 - Right of Setoff Feb. 12 - New Accounts Series:Account-Opening Due Diligence Feb. 13 - Opening Accounts for Marijuana-Related Businesses Feb. 17 - Critical Issues on CDs Feb. 17 - Basic Cash Flow Analysis Feb. 18 - BSA/AML and OFAC Compliance - What Was Old Is New Again Feb. 18 - FinCEN Guidance on Banking Marijuana Businesses Feb. 19 - Regulator Issues and Update for the Credit Analyst Feb. 24 - Fair Lending and Reg. B for the Frontline Feb. 24 - Advanced ACH Specialist Series: Setting and Monitoring Effective ACH Exposure Limits Feb. 25 - FFIEC Guidelines and Recent Development in Cyber Security Risk Management Feb. 26 - Top 10 Compliance Mistakes in Advertising Feb. 26 - Liabilities When Check Fraud Occurs March 3 - Best-Ever Compliance Checklists for Commercial Loans March 3 - Call Report Revisions and Update: Including an Overview of Basel III Regulatory Capital Changes to Schedule RC-R March 4 - Completing the SAR Line-by-Line March 4 - Qualifying Borrowers Using Personal Tax Returns Part 2: Income From Rentals, Royalties, Partnerships, S Corporations and Farms March 5 - Free Checking Trends in Today’s Market: Feasibility, Regulations and Benefits March 9 - For Salespeople: Grow Your Businesses, Get Introductions! March 10 - Update on Capital Planning, Contingency and Basel III for the Board March 12 - Legally Handling ATM and Debit Card Claims Under Regulation E March 12 - Notary Public March 12 - Legally Handling ATM and Debit Card Claims Under Regulation E March 17 - Flood Insurance Compliance Review and Update March 19 - Real Estate Valuation: Beyond the Basics March 24 - The TILA / RESPA Integrated Disclosure Line-by-Line Part 1: Loan Estimate
9 Hoosier Banker January 2015 Continued on page 10. COVER STORY The 2015 chairman of the Indiana Bankers Association is balancing his chairmanship of the Indiana Bankers Association with another chair-level leader post this year: Larry W. Myers, 2015 IBA chairman, concurrently is serving as chairman of the Lincoln Heritage Council of Boy Scouts of America. Per the Scout motto of “Be prepared,” Myers is skilled at time management and planning ahead. He also balances his duties with a playful sense of humor, evident in his incoming chairman’s speech at the IBA Annual Convention last fall, and a positive spin on every situation. Larry Myers, 56, serves as president and chief executive officer of First Savings Bank, Clarksville, and additionally serves on the board of directors of First Savings Bank and as president of the First Savings Charitable Foundation. He joined the bank in 2005 as chief operating officer and was named to his current position the following year. Myers began his banking career in 1982 with First National Bank of Louisville, eventually as area president of southern Indiana. He is a member of the St. Louis Federal Reserve Community Depository Institutions Advisory Council and has been active with the American Bankers Association on the community bank council and as past member of the mutual council. A certified trust financial adviser, Myers has Series 7 and Series 66 licenses. He earned bachelor’s and MBA degrees from the University of Kentucky, and completed the Graduate School of Banking of the South and the Cannon Trust School. Myers has been active with One Southern Indiana-Chamber of Commerce and currently is chairman of the Boy Scouts’ Lincoln Heritage Council. He has served the Indiana Bankers Association board as first vice chairman, second vice chairman and southeast region director. Recently Hoosier Banker interviewed Myers at his office in Clarksville. What are your responsibilities as president, CEO and director of First Savings Bank, Clarksville? “My responsibility as CEO is to set the strategic direction of the company and maintain a vision of where we want to go. Though there are significant day-to-day issues to attend to, setting the strategic direction is the first and foremost responsibility. “It is also the role of the CEO to coordinate the efforts, activities, communication and follow-up among shareholders, directors, the executive team, bank staff and customers. A CEO is always involved, continually managing those activities. “We are fortunate that First Savings Bank has an exceptional board. I’ve been in banking for 32 years, plus involved in various businesses and boards before and during that time, and this is one of the best boards I’ve ever worked with. Our directors are very good at helping management establish the strategic vision of where we want to go, then delineating between what is management’s responsibility and what is the board’s responsibility. “I have a great deal of respect for our chairman, Mike Ludden. He and I communicate frequently and are as transparent with each other as we possibly can be. Because we share a vision of where we want to go, we are in agreement 99 percent of the time. “For those rare times that we have different points of view, we’ll talk to determine if it is a board or management responsibility. If it’s a management decision, Mike will allow management to make the call.” Larry Myers: Prepared and Positive Larry W. Myers, is president and chief executive officer of First Savings Bank, Clarksville.
10 Hoosier Banker January 2015 “Within the foundation, my responsibility is to coordinate the board meetings, the review of the grant requests, and monitoring of disbursements and subsequent results. We promote financial education, not only through funding, but also in providing hands-on guidance. “For example, we support a group which teaches financial basics, like balancing a checkbook, to those in need. We provided funding, but also helped expand the curriculum to wider issues, such as the use of credit cards, the fundamentals of mortgages and where to find financial resources.” What is your banking background? “When I grew up, my best friend’s father, Ben Bransom, was chairman of the board of a bank in Lexington, Kentucky. I spent a lot of time with his family, and enjoyed watching Mr. Bransom out and about. He was a larger-than-life banker who knew everybody in town, and everyone liked him. “One of his favorite sayings was that he liked to carry two handkerchiefs, in case he had to tell someone no. That way, if the person being turned down was crying, he could offer a handkerchief and also have one for himself … because he’d be crying, too. “I had a lot of exposure to banking through Mr. Bransom, and I credit him with inspiring me to pursue banking as a career. “In 1982, I completed graduate school, and I was looking for a job. Those were not the best of economic times, but I had a chance to interview with First National Bank of Louisville. You also serve as president of the First Savings Charitable Foundation. What does that position involve? “We established the foundation when we took the bank public. We had been a mutual organization and converted to a stock organization in 2008. At that time, we set aside $1 million of First Savings Financial Group stock to seed the foundation. Having been a mutual organization in the southern Indiana community for 71 years, we felt an obligation to give back to the community and to those depositors who helped build this organization. “Our focus is financial education. We’re a strong supporter of Junior Achievement. We provide funding that allows every fifth- and seventhgrader in the southern Indiana market to attend Finance Park and BizTown. Continued from page 9. Larry Meyers is active in the community through several organizations, including the Lincoln Heritage Council of the Boy Scouts of America. “I was one of the last interviews of the day, and the person who was interviewing me – who is now a good friend – seemed uninspired while flipping through my resume. It was a typical college kid resume – heavy on the education, but with little professional work experience. “Finally she came to the last page, which held my references. She saw the name Ben Bransom, and all of sudden she lit up. She asked, ‘You know Ben Bransom?’ I said, ‘Yes, I’m good friends with his family.’ She said, ‘Well, I used to work for Ben.’ “I know that the first thing she did after the interview was call Mr. Bransom. The president of the bank at the time, Leonard Hardin, also knew Mr. Bransom. That’s how the stars aligned to launch my career. “I’ve also been inspired by my father’s late cousin, Jay Myers, who was an influential banker in Washington, Indiana. He was president of United Southwest Bank, which was eventually sold to Old National Bank. “Cousin Jay was a great benefactor to his community. He was never married, so when he passed away, he gave all his money – I’d guess in the millions – to Indiana University and to the Community Foundation Alliance. If you go to Washington, Indiana, you’ll see a statue of Jay sitting on a park bench.” Please summarize the difference types of banking environments you have worked in. “My background has given me a level of experience from the perspectives of both a large regional bank and a smaller community bank. Thirty years ago I entered the management training program with First National Bank of Louisville. “At the time, First National was the largest bank in Kentucky, with a diverse menu of products and services. It had correspondent banking, international, leasing, asset-based lending and agricultural lending, as well as regional, commercial and industrial lending. As I spent a few months in each area, I received a very good overview of each activity. Larry Myers welcomes visitors to his office in Clarksville.
11 Hoosier Banker January 2015 Continued on page 12. “First National Bank of Louisville merged with National City in 1988. At that time I was involved in a bank standardization project with Mutual Trust Bank, one of First National’s acquired banks in southern Indiana. I worked to standardize processes and procedures between the two banks, and develop reporting lines and areas of responsibility. A lot of the standardization process is negotiations and delineating responsibilities to avoid having offices compete against each other. “After years in the Louisville market, I came to southern Indiana and was immersed in the environment of a small community bank that was owned by a large bank. For a time we were the primary bank in the area; if there was any sort of activity in the community – loan requests, new business or community activities – we were involved. “Eventually that changed, to where the acquired bank was a branch presence only. So I’ve experienced that environment, too. I witnessed firsthand the impact a community bank can make, and what happens to the community and employees when the decision-making process is altered. “To round out my experience, I transitioned to the wealth management group in Louisville. There I obtained my Series 7 and Series 66 licenses and my certified trust financial adviser designation. “When Mike Ludden called with the opportunity to return to southern Indiana in a small community-bank type of environment, I jumped at the chance. First Savings Bank was a savings bank at the time. Since then, we’ve built ourselves into a larger banking presence, one of the largest in southern Indiana. “We’re proud to be a community bank. We’re providing products and services that rival any large bank, but with a personal, hands-on, we’re-inyour-neighborhood approach.” What are your goals as 2015 chairman of the IBA? “At the Annual Convention last September, the IBA outlined several major goals it wants to accomplish in 2015. Our first goal is to remain financially strong. As bankers, each of us has been involved in associations and not-for-profits that are in existence to achieve a worthy goal, which often gets overshadowed by the constant need to raise money. With the IBA, we’re not in that position; we have the financial strength to move forward. “Another goal is to recognize and provide development and networking opportunities for our young leadership. We need to inspire the next generation to want to have a career in banking. “First Savings Bank emphasizes succession planning, at every level of the organization. It provides learning opportunities when you focus on developing individuals within the organizations – not just the employees that are next in line for top leadership, but also those that are newer to the organization. “A third goal is to improve IBA’s technology. With 80 percent of bank transactions being conducted electronically, its importance in our industry cannot be underestimated. “In regards to our government relations goal, I challenged the group to have 80 representatives attend the IBA annual meeting in Washington, D.C. It makes a bold statement about the Indiana banking community when we have a strong showing at our nation’s capitol. “For three solid days, we have meetings with our congressional representatives and our federal regulators. We discuss current issues and concerns with members of the American Bankers Association and Independent Community Bankers of America. “It’s easy to sit at home and dream that advocacy is being taken care of, but in Washington we are the advocacy, and it’s enlightening to be part of the process. In addition, the DC trip is a great time to network with other Hoosier bankers. “And finally, I hope to meet with all 130 bank CEOs in the state of Indiana in their home offices. The purpose is to hear what they want from the IBA, what the organization can do to help them, and what ideas they have to strengthen our industry.” In addition to serving as 2015 chairman of the IBA, this year you also are chairman of the Lincoln Heritage Council of Boy Scouts of America. What do you value about the Boy Scouts organization? “I have focused on the Boy Scouts, because it positively impacts the lives Family photos abound in Larry Myers’ office. Larry and Debbie Myers enjoy the IBA Annual Convention in French Lick.
12 Hoosier Banker January 2015 Continued from page 11. of young men. With two sons, one 22, who is an Eagle Scout, and our 17-year-old, who is close to achieving Eagle rank, I recognize the importance of reaching out to our youth. “The scouting organization teaches life skills, leadership, community responsibility and ethics. Earning the rank of Eagle Scout is one of the few things you can do as a teenager, and still have it on your resume when you are 50 years old. It is a notable achievement. “2015 marks my 12th year in a leadership positions with the Scouts. I started as a den leader with the Cub Scouts, moved to troop leader for five years, and am serving as our council’s chairman this year.” What advice would you give to novice bankers? “Most importantly, continue your education every day by reading anything and everything in regards to banking and finance and the economy. “I’m a huge reader, so much that sometimes I’ll be in the middle of two books at once. I read The New York Times online every day and grab the local paper every morning. I also subscribe to a stack of financial magazines and, when I am traveling on business, I’ll read for hours on the airplane or in the hotel room. “Secondly, take advantage of any opportunity to enhance your credentials. National City recommended its officers obtain Series 66 and Series 7 licenses. Instead of moaning and complaining about going to class and taking tests, I knew that even if I never sold a single stock, or never became a broker, I was broadening my financial knowledge.” Please share a bit about your home life. “My wife Debbie and I will be married 30 years soon … We jokingly say she’s a recovering banker. Debbie and I met in the training program at First National. We went to the president of the bank, Leonard Hardin, to ask permission to get married. He still claims to this day that I owe him a finder’s fee. “Debbie worked in the national division, covering Georgia, Florida and Tennessee, as well as the West Coast. She traveled a lot – this was before kids – and retired from the bank as a senior vice president, metro lender in the Louisville market. Retired for less than a day, Debbie joined the Travel Authority and managed its retail group. Fifty offices as well as 100 independent contractors reported to her. “We have three children. Our 22-year-old son is studying at the University of Kentucky. He is considering different options for the future, possibly in banking. “Our 20-year old daughter is premed at Vanderbilt University. She was recently a finalist in the Miss Tennessee pageant. Last summer she worked in Cambridge, England, for a summer high school program. “And our youngest is our 17-yearold son. He plays baseball for his high school. He’s working on completing requirements to become an Eagle Scout by the deadline age of 18.” Dave Heeter (left), MutualBank, Muncie, and 2014 IBA chairman, passes along the chairman’s gavel to Larry Myers at last fall’s IBA Annual Convention. What are some of your travel experiences? “Through the years we’ve had the good fortune to travel to China, Hong Kong, Egypt, throughout Europe, and Central America and on a photo safari in South Africa. “One of our favorite travels was a family trip to the beaches of Normandy, France. I had been there several times before, but our children hadn’t, so we hired a local driver and guide. “Our oldest son was then 18 years old, and I explained to our kids that the men who had fought and died on the beach were young guys, his age. It put the situation into perspective. “My daughter was a little upset to see people running and playing on the beach, where so many had given up their lives in battle. I told her, ‘That’s what they were fighting for, so that you and I and other people could come here in peace and enjoy it.’ “Visiting Normandy really made an impression on our family. It was a sobering moment to be at the American Cemetery above Omaha Beach at the end of the day, for the playing of taps. There wasn’t a dry eye in the place.” t Larry W. Myers, president and chief executive officer of First Savings Bank, Clarksville, and 2015 chairman of the Indiana Bankers Association, explains why he has set a goal of having 80 participants at this year’s IBA Annual Washington Trip, set for Sept. 27-29. To view, go to Hoosier Banker Digital indianabankers.org, and click on the red arrow. IBA Annual Washington Trip Video Bonus:
13 Hoosier Banker January 2015 Continued on page 14. Banking on Community: Results of Year 2014 IBA Survey Banks offer multiple services to their communities. In addition to providing loans and capital to individuals and businesses, banks are deeply involved in community organizations, providing time, talent and capital to help build better communities. To measure the donations of Indiana banks to their communities, the Indiana Bankers Association surveyed member banks about their community involvement throughout 2014. A total of 31 IBA-member institutions responded, representing approximately 22 percent of membership. The totals below are interpolated, using the respondents as a proxy for all member banks of the IBA. Survey Results In the category of general community causes (charitable groups/nonprofits, schools, hospitals and youth groups, etc.), IBA members reported the following outreach for 2014: 27,491 Community groups were assisted 23,979 Bank associates helped with bank-sponsored community causes 518,618 Man-hours of service were donated by bank associates to community causes $951,123 Dollars were raised (through car washes, staff “dress down” days, etc.) for community causes $45,543,225 Dollars were donated by banks to community causes $1,082,149 Dollars were donated by banks to scholarship opportunities $932,659 Dollars were donated through in-kind contribution to community causes In the category of financial literacy (educating the public about financial basics), IBA members reported the following results for 2014: 8,163 Financial literacy presentations were made by banks 4,473 Bank associates helped with financial literacy projects 47,425 Adults were reached through financial literacy efforts 126,140 Children (age 18 or younger) were reached through financial literacy efforts Examples of Outreach 1st Source Bank, South Bend, sponsors Rebuilding Together each year. In addition to a financial contribution from the bank, employees donate their skills to help a homeowner in need make strategic home repairs. The volunteers work on scraping and repairing trim, painting the house and sprucing up landscaping. Ameriana Bank, New Castle, hosted a “Help Our Heroes” collection drive for the USO of Indiana. Staff, customers and the community donated items from a troop wish list to send with the uniformed men and women of Indiana as they deploy for their tours of duty. In addition, the bank donated $2 to USO of Indiana for each new “Like” on the bank’s Facebook page during the campaign period; in total the bank presented two truckloads of items and nearly $600 to the USO of Indiana. Bath State Bank assisted local volunteer fire departments at Thanksgiving by giving generous donations to local squads. The bank also provided monetary support or raffle items to other volunteer fire departments for pancake breakfasts and festival fundraisers. This summer, West College Corner/College Corner VFD came to the bank’s customer appreciation day to share information about fire safety and 1st Source Bank, South Bend Ameriana Bank, New Castle Bath State Bank
14 Hoosier Banker January 2015 Continued from page 13. rescue, as well as grain bin safety and rescue, allowing the public to see how life-saving equipment works. Bath State Bank also donated to a county fund that provides monetary assistance for officers and volunteers to seek help for mental anguish following tragedies. Community First Bank of Indiana, Kokomo, partnered with a local university to offer a student the opportunity to make a half court shot, three pointer or free throw for a scholarship during half-time of every home basketball game. Students were chosen by the university, usually through a social media initiative. The bank plans to repeat the event in 2015. The Farmers Bank, Frankfort, coordinated with Frankfort Community School Corp. by assisting with a pilot program that has employees from local businesses come to schools weekly to read to second graders. Local businesses sign up to send employees once a week for two 15-minute sessions each with two students. Each employee reads to the same student for the entire school year. Nearly 40 bank employees signed up as primary or back-up volunteers. Farmers State Bank, LaGrange, partners with the Everfi company to provide financial literacy to junior and senior high school students. Everfi’s Web-based program features modules covering topics including savings, banking, credit scores, financing higher education, renting versus owning, taxes and insurance. The bank funds the program for three area schools. First Federal Savings Bank, Huntington, has supported the Parkview Boys & Girls Club of Huntington County in working toward its capital campaign goal of raising $3.5 million. The funds will be used to build a new facility to serve the youth of Huntington County. The Zahn family and First Federal Savings Bank made a combined donation of $115,000 toward the new facility, to be located on East State Street. First Harrison Bank, Corydon, supports of Relay For Life in the counties in which the bank serves. Each year bank staff raise over $20,000 through branch activities to support Relay For Life. The bank has raised the most money in Harrison County for more than 10 years. First Merchants Bank, NA, Muncie, partnered with United Way offices and myfreetaxes.com to support tax payers learning to file their own taxes. Bank employees manned a customer service line for people needing assistance and volunteered at numerous sites. First State Bank of Middlebury partnered with the Elkhart campus of The Crossing to teach a nineweek financial literacy course to a class of high school students. Most students at The Crossing are from low- to moderate-income, single-parent families. The vision of the crossing is to transform lives through education by focusing on the heart and mind. Fowler State Bank held a program called Go Pink on each Friday in October. Employees had the opportunity to pay to wear jeans if they also wore pink. Since Halloween fell on a Friday, bank staff was given the option to dress up. Pictures of each employee were taken and put out with jars in our lobby for customers to vote. The bank raised $1,852 and gave the funds to a local cancer fund. The bank also supported a girls’ high school basketball team for its Breast Cancer Awareness game by purchasing shirts for both participating teams, and held a donation drive on the day of the game. The Friendship State Bank operates a swirling cash machine at a local three-day festival, the Versailles Pumpkin Show. The bank matches the amount that contestants are able to capture from the machine with a donation to the local American Red Cross. The activity was able to spread the Red Cross message to festival-goers, as well as raise $700 in 2014. iAB Financial Bank, Fort Wayne, partnered with three community organizations in October for iCare Day, created to commemorate the anniversary of the bank. The day allowed employees to demonstrate commitment to community by spending a work day assisting nonprofit organizations in communities served by the bank. iAB Financial Bank partnered with Allen County’s Habitat for Humanity to complete the building of a new home through light construction, painting and cleaning. The bank also assisted Indiana Dream Center to organize donated items at one location and to do cleanup and repair at a second locaThe Farmers Bank, Frankfort First State Bank of Middlebury Fowler State Bank First Federal Savings Bank, Huntington
15 Hoosier Banker January 2015 Continued on page 16. tion. Bank employees also assisted with The Awakening Church’s corn maze fundraiser. Lake City Bank, Warsaw, offers a micro-loan and a reality store program in an effort to improve financial literacy among low- to moderate-income individuals. The MicroLoan provides financial literacy training utilizing the FDIC Money Smart curriculum. Upon completion of the course, participants are eligible for a micro-loan at zero percent interest and no origination fees, regardless of credit. The reality store provides a real-life experience targeting teen students by putting them through a series of choices. Each student is provided with a scenario consisting of an occupation, salary and family status to replicate real-life decisions, all while staying within budget. MainSource Bank, Greensburg, partnered with The National Future Farmers of America Foundation to enable grant awards in conjunction with its Food for All program, which provides grants that support year-long servicelearning projects addressing local hunger needs. Project ideas include, but are not limited to: developing a community garden to supplement fresh fruits and vegetables to the school or local food pantry; raising broilers and/or laying hens to provide fresh meat and eggs to local families; growing tilapia and other protein sources to be donated to the community; or hosting community workshops on container and backyard gardening and other sustainable food practices. The bank’s donation allowed five additional Indiana schools to participate in the program. Mutual Savings Bank, Franklin, supports the United Way every year. The bank raised $10,500 from 41 employees, which is the highest amount ever raised by the bank. In honor of reaching the goal, executive vice president, Dave Coffey, allowed the staff to throw pies at his expense. MutualBank, Muncie, celebrated 125 years in business with a celebration of collecting, sharing and appreciating stories of bettering lives and communities. The bank held BetterLife Nominations to celebrate people who help others live better lives. Over 300 nominations were received, and 125 finalists were celebrated in October. The bank awarded $55,000 through the campaign. Old National Bank, Evansville, brought the 100 Men Who Cook fundraiser to Terre Haute, an event through which local celebrity chefs cook up dishes to raise funds for the Terre Haute Children’s Museum. The event began in 2009 and has continued in Terre Haute and in six other Indiana communities. Volunteers dedicated over 1,470 hours to the success of these events in the past year. More than $1.7 million has been raised to support organizations, including the Terre Haute Children’s Museum, Evansville YWCA, Evansville Gilda’s Club, Evansville YMCA of Southwestern Indiana, Evansville Albion Fellows Bacon Center, Muncie Children’s Museum, Muncie a Better Way, Muncie TEAMwork for Quality Living, Muncie Second Harvest Food Bank, Jasper Indiana National Guard Relief Fund, Vincennes DistinXion, a Zeller Family program and the Lafayette Family YMCA. Ossian State Bank made a $1,000 donation to the Northern Wells Food Pantry. The funds were to be used to purchase lights and fans for the facility, which is located at 122 S. Jefferson St. Our Community Bank, Spencer, participated in Teach Children to Save Day with bank and school tours. The bank also provides a weekly article called “Fiscal Fitness” for a local newspaper. These articles educate readers on a wide variety of financial education topics. Peoples Bank, Munster, has created Community First, a philanthropic and social group made up of bank employiAB Financial Bank, Fort Wayne MainSource Bank, Greensburg Mutual Savings Bank, Franklin MutalBank, Muncie Ossian State Bank Our Community Bank, Spencer
16 Hoosier Banker January 2015 Continued from page 15. ees. The bank supported the Unite and Fight Walk, which is sponsored by the Cancer Resource Centre of the local hospital. From the amount of pledges solicited by 41 walkers, along with the proceeds from employee donations and internal fundraising efforts, Community First was able to raise $6,954.08 for the cause. The bank contributed an additional $1,000 as an event sponsor for a total contribution of $7,954.08. The Cancer Resource Centre recognized Peoples Bank as the 2014 Top Fundraising Team. Spencer County Bank, Santa Claus, held “Dollars for Denim” each Friday, beginning after Thanksgiving until Christmas, through which employees could participate by wearing jeans for a minimum weekly donation. The donations are used to help an area family or are donated to a community organization. STAR Bank, Fort Wayne, began the tradition of STAR Service Day in 2011. Each Columbus Day, the bank offices close, and all 600+ employees arrive at organizations around Indiana for a day of serving the communities. Food is sorted at local community food banks, Boys and Girls Clubs are painted, debris is cleaned from river banks at local parks, and bank employees are out lending a hand in multiple other ways. In 2014, 30 organizations across the state received volunteer help. Your Community Bank, New Albany, participated in Junior Achievement job shadowing. High school students were brought on site at the bank’s main office for the day. The bank held presentations by departments, e.g. security, retail, loan and deposit operations, etc., explaining what their individual departments do. In addition the students learned the fundamentals of saving, borrowing and credit. Survey Participants IBA thanks the following member institutions which participated in the 2014 survey: 1st Source Bank, South Bend Ameriana Bank, New Castle Bank of Wolcott Bath State Bank Community First Bank of Indiana, Kokomo DeMotte State Bank The Farmers Bank, Frankfort Farmers State Bank, LaGrange First Federal Savings Bank, Evansville First Federal Savings Bank, Huntington First Harrison Bank, Corydon First Merchants Bank, NA, Muncie First State Bank of Middlebury Fowler State Bank The Friendship State Bank Garrett State Bank iAB Financial Bank, Fort Wayne Lake City Bank, Warsaw Logansport Savings Bank MainSource Financial Group, Greensburg Mutual Savings Bank, Franklin MutualBank, Muncie Old National Bancorp, Evansville Ossian State Bank Our Community Bank, Spencer Peoples Bank, Munster River Valley Financial Bank, Madison Spencer County Bank, Santa Claus Springs Valley Bank & Trust, French Lick STAR Bank, Fort Wayne Your Community Bank, New Albany t STAR Bank, Fort Wayne Peoples Bank, Munster Merlin J. Knauss, 86, retired senior vice president and chief lending officer from Industrial Trust and Savings Bank, Muncie, died Dec. 24, 2014. He spent 41 years in banking, beginning at State Bank of Faribault, Minnesota, and later joining the Olmsted County Bank in Rochester, Minnesota. Knauss joined Industrial Trust and Savings Bank, now Chase Bank, in 1971 and retired in 1990. He was a member of Rotary International, Kiwanis International, Robert Morris and Associates and the Muncie Club; he also was chairman of the board of the Chamber of Commerce, a co-director of the United Way and a director of the Industrial Park. Knauss was a former president of the Minnesota Bankers Association and also served as president of the Southern Minnesota Association of Bank Auditors and Controllers. He was a Masonic Lodge and Scottish Rite member, a Shriner and a member of First Presbyterian Church. A veteran of the U.S. Army, Knauss attended the University of Minnesota and the Rutgers University School of Banking. t In MeMory of
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