INSIDE Hoosier bankers work in support of Junior Achievement. Story on page 10. Hoosier Banker APRIL 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. 4 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 Email 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 10 BANKS PARTNER WITH JUNIOR ACHIEVEMENT TO PREPARE YOUTH FOR SUCCESS FEATURES 6 PRESIDENT’S PONDERINGS S. Joe DeHaven, IBA 8 IBA CALENDAR OF EVENTS PSP SHOWCASE 14 IBA PREFERRED SERVICE PROVIDERS SELECTED TO HELPYOU SUCCEED Rod Lasley, IBA OPERATIONS / TECHNOLOGY 22 TAKE THREE STEPS TO SERVICE-FOCUSED BRANCHES Tim Kopischke, CSI 24 INTERACTIVE TELLER MACHINES – THE FUTURE OF COMMUNITY BANKING Jeff Klump, K4 Architecture + Design DEPARTMENTS 6 FROM THE BOARD ROOM 13 VIDEO BONUS 15 ANNIVERSARY MILESTONES 16 COMPLIANCE CONNECTION Larry C.Tomlin, Krieg DeVault LLP 18 ASSOCIATE MEMBERS' CORNER 20 BANKING ON COMMUNITY 21 HONORABLE MENTIONS 23 NEW BRANCHES, BUILDINGS & OPENINGS 25 TAKING IT EASY 26 BANKERS ON THE MOVE 30 IN MEMORY OF 30 ADVERTISERS INDEX 5 Hoosier Banker april 2015 The Indiana Bankers Association thanks photographer Brian Brosmer and AtFishers magazine/TownPoste.com for the stunning photo of David Becker, First Internet Bank of Indiana, featured on the cover of the March 2015 Hoosier Banker. Photo acknowledgement was inadvertently omitted from the print version of the magazine. INSIDE David Becker leads explosive innovation as president and CEO of First Internet Bank of Indiana. Story on page 10. Hoosier Banker MARCH 2015 Junior Achievement and banks work together to inspire and prepare youth for financial success.
6 Hoosier Banker April 2015 be a truly fascinating journey into a lifestyle that is foreign to most of us. On Wednesday, May 13, our luncheon presenter will be Josh Bleill, who lost both of his legs when a bomb exploded while he was stationed in Afghanistan. Josh will share his story, which follows a curvy path from military service as a Marine to now being community spokesperson for the Indianapolis Colts. We will also honor our Five Star Member banks and our Diamond Associate Members during the Tuesday luncheon. On Wednesday we will announce the eagerly anticipated winners of the Maxi Awards, in recognition of the best bank marketing efforts during the past year. Monday will be dominated by the golf outing. Other networking opportunities consist of the ever-popular hospitality suite, open both Monday and Tuesday nights, and the Mega Reception, held at the JW Marriott Indianapolis early Tuesday evening. I look forward to renewing friendships with longtime acquaintances and developing new relationships during Mega. I hope you, too, are able to participate in Mega 2015 and connect with good friends, both old and new. I have the privilege of knowing many individuals who represent companies that sell products and services to banks throughout the country. Many of these people represent companies that are associate members of the Indiana Bankers Association. Not only do I see these friends at IBA events, but I frequently run across them at other industry events, such as the annual conventions of the Independent Community Bankers of America and American Bankers Association, and the ABA National Conference for Community Bankers. Invariably the conversation will turn to the IBA-hosted Mega Conference, presented each spring. Everyone I talk with knows about the Mega Conference. Most of them tell me they will see me there again this year. Often service providers will approach me and ask how they can get a booth, because they have heard others talking about how valuable the Mega Conference is. These discussions always make me proud to represent the IBA. They also make me proud of our staff, who devised the concept and execute it annually. I must agree, it is impressive. It is the largest event hosted by a single state association in the country, and we are far from being the largest state association. More importantly, I am proud because of what we make available to our member bankers. What an outstanding opportunity for bankers throughout Indiana to attend this educational event and large exhibit hall. Coming up May 11-13 is this year’s Mega Conference: “Mission Possible — Taking the Mystery Out of Today’s Complex Banking Issues.” Mega will once again be held at the Indiana Convention Center, with the JW Marriott Indianapolis acting as our host hotel. In addition to the over 80 friends who will have booths in the exhibit hall, we will present a dozen educational tracks over May 12 and 13. Track topics will cover: Directors, Operations & Technology, Retail Banking, Risk Management, Sales & Customer Service, Trust, Business Lending, Financial Management, Marketing, Human Resources, Compliance, and Strategic Thinking. Something new this year will take place in the closing session of the Strategic Thinking track, when we will host “Ignite.” This fast-paced session will consist of a series of five-minute speeches from bankers and other industry friends describing something they are passionate about. It should be enlightening and entertaining. Chris Bennett, IBA’s vice president-meetings & events, has lined up two outstanding speakers for luncheon keynotes. On Tuesday, May 12, James Olson will detail his life working as a spy for the CIA for over 30 years. It will FEATURE President’s Ponderings S. Joe DeHaven, President & Chief Executive Officer, Indiana Bankers Association Chris Branson has been appointed to the board of directors of CITBA Financial Corp. and Citizens Bank, Mooresville. He replaces David Kollmeyer, who has retired from the board after 15 years of service. Branson is the owner of Carlisle-Branson Funeral Service and Crematory. He serves as board president of the Community Foundation of Morgan County, vice president of the Mooresville Chamber of Commerce and board member of the Mooresville Senior Center. Branson is a member of the Mooresville Kiwanis Club, Mooresville Lions Club, Mooresville Masonic Lodge #78 and the St. Thomas More Knights of Columbus. He also is active with Selected Independent Funeral Homes, the Indiana Funeral Directors Association and the National Funeral Directors Association. Branson earned a bachelor’s degree from Xavier University and is a graduate of the Worsham College of Mortuary Science. t From the Board room
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CALENDAR UPDATE 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 Twitter: @IndianaBankers Alternative Delivery Channels … Available at your convenience via Webinar, CD-ROM or On-Demand Trust Officer/Financial Adviser Forum April 7 - IBA Center Home Mortgage Disclosures Act Seminar April 9 - IBA Center Certified Teller Program - Bank Robbery Prevention April 13 - Huntingburg Event Center April 14 - Best Western Plus, New Albany April 15 - Chapman’s Restaurant, Bloomington April 20 - Hotel Fort Wayne April 21 - Best Western Executive Plaza, Lafayette April 22 - Hillcrest Country Club, Batesville Social Media Bootcamp:The Risks and Opportunities of Your Bank’s Online and Social Media Footprint April 14 - IBA Center Certified Community Banking Security Professional: Certification Training April 15-16 - 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 Compliance Administration and Audit April 22 - IBA Center The Customer Onboarding Experience: Increasing Share of Wallet April 23 - IBA Center Auditing BSA April 23 - IBA Center Consumer Lending School April 28-29 - IBA Center Train the Trainer: Plans, Programs and Processes That Work May 5 - 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 - Integrated Disclosures May 18 - Courtyard by Marriott, Fort Wayne May 19 - IBA Center May 20 - 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 Building Your Incident Response Program June 4 - IBA Center 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 - Hotel Fort Wayne June 17 - IBA Center Senior Lender Forum June 17 - Group 1 - IBA Center June 18 - Group 2 - IBA Center Auditing Operations June 18 - IBA Center Marketing Director Forum June 23 - IBA Center Essential of Banking: Session 3 - Safeguarding the Bank and Customer Service June 24 - IBA Center IT Officer and Operations Officer Forum June 25 - Group 1 - IBA Center June 26 - Group 2 - IBA Center Human Resources Director Forum July 14 - IBA Center Workshop for Loan Assistants and Loan Processors July 15 - IBA Center Introduction to Consumer Loan Origination and Compliance July 16 - IBA Center Analyzing CRE Cash Flow July 21 - IBA Center Administering Construction Loans July 22 - IBA Center Real Estate Lending Compliance July 28-29 - IBA Center Community Bankers for Compliance Series - Session 3 Aug. 10 - Courtyard by Marriott, Fort Wayne Aug. 11 - IBA Center Aug. 12 - IBA Center Trust Officer / Financial Adviser Forum Aug. 13 - IBA Center Regional Bank Director Workshop Aug. 17 - Hotel Fort Wayne Aug. 18 - Wooded Glen Executive Retreat & Conference Center, Henryville Branch Management Series: Session 3 - Leading, Developing and Engaging the Team Aug. 18 - IBA Center Regional Bank Director Workshop Aug. 19 - IBA Center IBA Leadership Development Program: Session 3 - Limitations Are Self-Imposed Aug. 19-20 - Wooded Glen Executive Retreat & Conference Center, Henryville Essentials of Banking: Session 4 - Lending, Bank Investments and Bank Performance Aug. 26 – IBA Center April 2 - UCC April 2 - Emerging Leader Series: Branch Transformation - Balancing the Trend Toward Virtual Banking,While Enhancing Your Customer’s Experience April 3 - Important SAR Procedure Updates From the Revised BSA/AML Examination Manual: Ensuring Compliance, and Avoiding Violations April 8 - ACH Rules Update 2015 April 9 - Call Report: Lending Schedule for Banks April 9 - Deposit Regulation Update April 9 - Advanced Issues in Dormant Accounts, Unclaimed Property and Escheatment April 14 - The Pitfalls of Vault Security, Disaster and Self-Service Boxes - 2015 Update April 14 - Writing an Effective Credit Memo April 14 - CFPB Real Estate Loan Collection Rules for Mortgage Servicers April 15 - Excel Explained: Introduction to Spreadsheets April 16 - Reg. E: How Expensive Is a Compliance Mistake? April 16 - UpdatingYour Bank’s BSA/AML/OFAC Risk Assessment April 17 - Understanding and Addressing Critical Interest-Rate Risk Issues:The Regulatory Perspective April 21 - The TILA/RESPA Disclosure Line-by-Line Part 2: Closing Disclosure April 22 - Opening New Accounts I: Consumer Accounts April 23 - Flood Insurance: Compliance Issues and Enforcement Topics April 23 - Analyzing Credit Risk in Agricultural Lending April 28 - EMV and Debit Cards: Preparing for the Oct. 1 Liability Shift April 28 - Understanding Signature Cards and Account Agreements April 29 - Opening New Accounts II: Business Accounts April 30- Current Trends in Cyber Crime and Payments Fraud May 5 - Officer Calling: Prospecting, Preparing and Presenting May 5 - Lending 101 May 5 - Revised Escrow Rules Effective Aug. 1 May 6 - From Prospect to Customer: Skills and Tools for Successful Business Development May 6 - W-8,W-9 and Account Opening Issues May 6 - Opening New Accounts III:Trust and Minor Accounts May 7 - Director Series: Regulator and Industry Hot Buttons for Directors May 7 - What to Do When a Customer Dies May 11 - For Sales Managers:Why Aren’tYour Salespeople Selling? May 13 - Home Equity, HELOC and Second-Lien Risk Management, Including Maturing HELOC Guidance May 14 - IRA Series: IRA Death Distributions - Beneficiary Options and Tax Consequences May 14 - RC-C Loan Codes for Call Report May 19 - Wire Transfer Compliance:Who Is Liable? May 19 - Calculating and Maintaining the Allowance for Loan and Lease Losses May 20 -You’re the New HR Officer ... Now What? May 21 - Advanced ACH Specialist Series:ACH Death Notification Entries (DNEs) and Reclamations:Your Bank’s Liability May 27 - The ALLL in Troubled Debt Restructuring: Identifying and Accounting for Impaired Loans May 28 - Handling Difficult Customers: Effectively Dealing with Intimidation, Negativism and Anger May 29 - Testing Loan Audit Procedures for Integrated Disclosure Compliance Before Aug. 1 Deadline June 2 - Collection Call Techniques: Complaint Telephone Scripts and Responses June 3 - Compliance Rules Lenders Must Know June 4 - Commercial Appraisal Review Part 1: Income Approach June 9 - Mastering the SBA 7a Loan Part 1: Eligibility and Program Requirements June 17 - Dealing With the New Fannie Mae Collateral Underwriter for Mortgages 8 Hoosier Banker April 2015
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10 Hoosier Banker April 2015 in-depth, month-long learning experience that introduces students to financial planning and career exploration. The program culminates with a visit to an on-site or virtual community, where students role-play the skills they have learned, while committing to a personal budget. Another popular form of Junior Achievement outreach is JA in a Day. This intensive program brings a team of volunteers to an elementary school to teach all levels of JA lessons in a single-day sweep. Recently the Indiana Bankers Association asked member banks to share their experiences with Junior Achievement. A total of 26 institutions shared the following statistics, representing their combined JA outreach in 2014: 692 JA presentations were made by banks 372 Bank associates volunteered with JA 24,968 Youth were reached through bank JA outreach $176,585 Dollars and in-kind donations were made by banks to JA Please note that the above results include figures only from the respondent banks. These figures are not intended to represent all Indiana financial institution support of Junior Achievement. Following are examples of JA involvement: 1st Source Bank, South Bend Personnel provide leadership at the JA board of director level, perform classroom instruction and participate in JA in a Day. The bank takes part in JA because, “We have a mutual goal of educating our youth.” Alliance Bank, Francesville Associates donate time to classroom instruction, BizTown interviewing, and board of director support. JA aligns with the bank’s financial literacy and community relations goals. Bank of Wolcott Three bank executives serve as classroom consultants, and two serve on the local board of directors, with one serving as board president. The bank has been involved with JA for more than 25 years, appreciative of the opportunity to give back to the community and teach real life lessons to youth. COVER STORY Banks work with consumers year-round to prove education on ways to achieve financial strength and stability. April is a month of particular financial education focus, as it has been designated National Financial Capability Month and National Financial Literacy Month. Accordingly, in April both national bank trade associations bring added emphasis to consumer/community awareness. The American Bankers Association sponsors Teach Children to Save Day, this year scheduled for April 24, and the Independent Community Bankers of America promotes Community Bank Month. In synch with this financial literacy emphasis, Hoosier Banker is spotlighting a different aspect of consumer education each April. Last year the magazine reported on in-school bank branches available in member institutions. This year we draw attention to Junior Achievement (JA). Established in 1919, Junior Achievement reached more than 4.5 million students in the United States during academic year 2013-14, according to the JA website at juniorachievement.org. Its stated purpose is: “Junior Achievement inspires and prepares young people to succeed in a global economy.” Throughout its near-century of existence, JA has evolved to present a variety of programs, available to students through volunteer efforts of schools, parents and members of the business community. Programs are delivered by volunteers to students in grades K through 12 to help youth develop financial literacy skills, in addition to work readiness and entrepreneurship. Two simulation programs are JA BizTown and JA Finance Park. BizTown brings fifth graders to a day-long visit to a simulated town, allowing them to operate banks, manage restaurants, write checks and vote for mayor. The program is designed to help students grasp the connection between lessons learned in school and the real world. Finance Park, for middle and high school students, is an Banks Partner With Junior Achievement to Prepare Youth for Success
11 Hoosier Banker April 2015 Bath State Bank Bank personnel provide classroom instructions to kindergarteners and students in grades 1, 2 and 4; associates also serve on the JA board of directors. Classroom discussions include the importance of being a good citizen, volunteering, taxes, academic success and saving money. Bippus State Bank, Huntington The bank provides classroom instruction, board of director support and fundraising efforts. The goal is to teach financial literacy while students are young, so that they can later make wise money choices. Campbell & Fetter Bank, Kendallville Associates offer classroom instruction and service on the JA board of directors. The bank is committed to community sponsorship of all kinds, including JA programming. DeMotte State Bank The bank dedicates personnel time to JA classroom instruction, apprising JA as excellent programming that educates young people in a variety of financial areas. Farmers State Bank, LaGrange BizTown and classroom instruction are two of the bank’s JA outreach efforts. Bank personnel find that JA synchronizes with its community outreach, while bringing financial literacy to students. Continued on page 12. In the photo at left, George Ferriell, president and CEO of Bath State Bank, joins staff in receiving honors at the Junior Achievement Bowl-a-Thon banquet. Centier Bank, Northern Indiana Personnel assist with JA in a Day, classroom instruction, board of director service, upcoming JA Lemonade Day and the JA Titan/Business Challenge – a fundraising/awareness effort. For Lemonade Day, the bank invited the author of the Three Cups book as keynote speaker. JA programming is consistent with the bank’s belief in helping consumers to increase their financial capabilities. First Bank of Berne Associates offer classroom instruction, director-level support, letter campaigns and fundraising through a golf marathon and 5K run. The bank views JA as important to helping youth understand financial tools, practical money use and smart spending. Volunteerism also bolsters career development and community involvement, plus the joy of working with children. First Bank Richmond, NA The bank is active with a five-week classroom instruction program, participates at the board level and is represented at the JA annual dinner. Bank management believes in promoting the entrepreneur spirit, appreciates that JA inspires kids to dream and plan at an early age for their careers, and gives employees a chance to share their work ethic and community pride. First Federal Savings Bank, Huntington The bank provides classroom instruction and JA board support. It chooses to be involved because, “We believe that financially educating the future generation is our responsibility as a community bank.” Volunteers from Centier Bank, Northern Indiana, pack the bus for JA in a Day. Mike Schrage (center), chairman, CEO and president of Centier Bank, Northern Indiana, participates in the bank’s multiple check donations to Junior Achievement. Alex Nocton, ag loan officer at Bath State Bank, engages with students at Liberty Elementary Kindergarten classroom. Norton was named JA’s Volunteer of the Year at the Richmond Junior Achievement chapter.
12 Hoosier Banker April 2015 STAR Bank, Fort Wayne At BizTown, STAR Bank is the featured bank in the simulation model. It also supports JA through JA in a Day, the Bowl-a-Thon Business Drive, Adventure Quest, JANI Marketing and committee and board memberships. Other activity includes in-class programs provided during Financial Literacy Month. JA aligns with the bank’s corporate vision of “Growing by Serving.” First Savings Bank, Clarksville The bank is active with BizTown, Finance Park, classroom instruction, the JA board of directors and the JA job shadow program. The values delivered to the community through JA are in line with those of the bank. Garrett State Bank The bank takes part in BizTown, Finance Park, classroom instruction, JA board of directors, the JA Bowl-a-Thon and the JA Muddy Trail Run. Personnel appreciate the chance to be connected with the youth of the community as they grow within the world of business. iAB Financial Bank, Fort Wayne Associates are active with BizTown, Finance Park, classroom support, board-level leadership and JA in a Day. JA aligns with the bank’s corporate vision to “make our communities stronger.” Your Community Bank, New Albany The bank supports JA through board-level involvement and through onsite instruction for high school students. Personnel believe in the JA mission and programs. First Harrison Bank, Corydon Classroom instruction and BizTown support are two JA activities of the bank. It finds that JA lessons are wellplanned and relevant, BizTown is an impactful learning tool, and that students look forward to banker participation. The La Porte Savings Bank The bank offers classroom instruction; service on the JA board of directors and fundraiser participation. The bank’s philosophy is, “We believe in their mission to help prepare your people to own their own economic success.” First Internet Bank of Indiana, Indianapolis Staff volunteer for BizTown and classroom instruction. Not only do the volunteer efforts assist the bank with its community development service goals, but associates find the engagement to be fun. Peoples Federal Savings Bank of DeKalb County, Auburn Staff help with the JA board of directors, regional JA committee, classroom instructions and two annual funding raising events. The bank holds youth and education as important for the community. The La Porte Savings Bank supports Junior Achievement through Bowl-a-Thon activities. Continued from page 11. Volunteers from The La Porte Savings Bank display Junior Achievement bags. STAR Bank, Fort Wayne, is the featured bank as the JA BizTown in Fort Wayne. Mark Hutchinson, cost accounting manager at STAR Bank, volunteers during JA in a Day in Fort Wayne.
13 Hoosier Banker April 2015 Kentland Bank Staff volunteer for classroom instructions and boardlevel participation. JA supports the banks interest in community involvement and furthering business education. Lake City Bank, Warsaw Personnel are active with BizTown, classroom instruction and the JA board of directors. The bank understands the need to develop financial literacy skills in order to make sound positive financial decisions throughout life. Reaching youth through JA and other financial literacy offerings “can at least lessen, if not eliminate, the number of individuals lacking financial literacy in the future.” Logansport Savings Bank Staff are active in JA classroom instruction and board of director support. The goals of JA align with the bank’s view that financial education is of critical importance to young people. MainSource Bank, Greensburg Activities include classroom instruction, board of director involvement and the JA Bowl-a-Thon. The bank views JA as providing an effective curriculum for educating youth about the importance of finance. t Video Bonus: • $2.7 billion of equity investments & permanent loans • 550 developments supported, serving 75,000 people • 20 years of stellar execution • No foreclosures • 100% on time reporting to investors • 100% success in delivering target IRR to investors A full service community development finance institution supporting healthy, vibrant and sustainable communities. www.capfund.net | 877.FOR.GLCF See an award-winning student video submitted by Bath State Bank for the Lights, Camera, Save! contest sponsored by the American Bankers Association. “It’s Easier Than You Think” won second place out of 117 entries submitted nationwide. The video stresses the value of saving and using money wisely and was created by Charlie Fast Horse, a senior at Franklin County High School. Fast Horse, who plans to study telecommunications at Indiana University next year, won a contest prize of $2,500. To view the video, go to Hoosier Banker Digital at indianabankers.org, and click on the red YouTube arrow. t Indiana Video Places Second in Nationwide Contest Gathering in celebration of the Lights, Camera, Save! contest are (front row, left to right):Angela Geis, mother of awardee; Charlie Fast Horse, secondplace winner; Derek Herbert, Franklin County High School (FCHS) teacher; (back row, left to right): George Ferriell, Bath State Bank president/CEO; Scott Davie, FCHS guidance counselor; and Keith Isaacs, FCHS principal.
14 Hoosier Banker April 2015 PSP SHOWCASE As the 2015 Mega Conference quickly approaches, now is an opportune time to be aware that many of the IBA Preferred Service Providers (PSPs) will be in attendance. These service providers have been awarded the PSP designation by the IBA Service Corp., after thorough due-diligence and analysis by the IBA. As you review their areas of expertise, these PSPs represent viable options for your consideration. Not only are these PSPs a quality provider with a documented ability to perform, but they also support the IBA at a high level, allowing the Association to continue to provide member banks with quality educational offerings, top-level government relations support and excellent products and service opportunities. As you visit the exhibit hall at the Mega Conference, stop by and talk with the following IBA Preferred Providers exhibiting at this year’s conference. Their offerings are IBA Preferred Service Providers Selected to Help You Succeed About the Author Rod Lasley is vice president-products & services of the Indiana Bankers Association, and also serves as president of the for-profit companies owned by the IBA. He can be reached at 317-387-9380, email: rlasley@indianabankers.org. F C I Floodplain Consultants Inc. "We visit the site!" www.floodplain.com TM Approval Payment Solutions Inc. Endorsed offering: Merchant services program Contact: Jim Fisher, jfisher@apsolutions.net Booth: 300 The Baker Group Endorsed offering: Bank investment portfolio management Contact: Timothy J. Beloat, tbeloat@gobaker.com Booth: 400 CSI Secure Connect,WatchDOG Social Compliance, & Managed Services Endorsed offering: Board portal, social media compliance management, network management services Contact: Bill Evers, bill.evers@csiweb.com Booth: 301 Deluxe Corp. Endorsed offering: Check services, bankers’ dashboard Contact: Uma Zielinski, uma.zielinski@deluxe.com Booth: TBD Floodplain Consultants Endorsed offering: Flood zone determinations Contact: Craig Callahan, ccallahan@floodplain.com Booth: 402 on-target, high-quality and value priced to help you succeed in today’s challenging banking environment.
15 Hoosier Banker April 2015 IBA Group INSURANCE TRUST Great Lakes Capital Fund Endorsed offering: Low-income housing tax credit opportunities Contact: Fred Hash, fhash@capfund.net Booth: TBD IBA Group InsuranceTrust Endorsed offering: Group health insurance plan Contact: Drew Tomasik, dtomasik@capstonebenefits.com Booth: 406 Infotex Endorsed offering: IT policy and procedure development, security awareness training, secure communications, vulnerability assessments, intrusion prevention, firewall management, website monitoring, managed security services, IT audits and digital evidence collection Contact: Dan Hadaway, dhadaway@infotex.com Booth: 101 InvestorsTitle Insurance Company Endorsed offering: Title Insurance Contact: Karen Brittain, kbrittain@invtitle.com Booth: 203 Lee & Mason Financial Services Endorsed offering: Blanket lenders single-interest insurance, blanket mortgage hazard protection insurance, blanket mortgage Impairment Insurance, lender-placed mortgage hazard insurance, collateral protection insurance, and gap insurance for leases and loans Contact: Paul Baker, pbaker@leeandmason.com Booth: 221 One America,AUL Retirement Services Endorsed offering: Qualified retirement plan-related brokerage services Contact: Matthew E. Shanks, matthew. shanks@oneamerica.com Booth: 110 The SHAZAM Network Endorsed offering: ATM network, POS terminal driving and ancillary services Contact: Ken Diekemper, kdiekemper@shazam.net Booth: 102 t What Is a PSP? A primary responsibility of the Indiana Bankers Association is to develop and maintain products and services that will benefit the IBA membership. In discharging this responsibility, there can be benefits to entering into a Preferred Service Provider (PSP) relationship. IBA’s rigorous selection process includes a thorough due diligence review: company history, financial statement analysis, reference checks and search of business records. Criteria for PSP designation include: • Value-added benefits available only to IBA members: cost savings and/or income enhancements; • Business opportunity for the IBA: Each PSP contributes financial support to the Association through marketing fees or royalty payments. For more information about PSP relationships, please contact Rod Lasley at 317-387-9380, email: RLasley@indianabankers.org. John J. Diederich, executive vice president, Peoples Bank, Munster, and Northwest Indiana Bancorp, has completed 40 years of service in banking. He began his career with the Commercial Bank of Crown anniversary milestones Point before serving at Gainer Bank, First Chicago NBD and Bank One. Diederich serves as trustee for the John W. Anderson Foundation and as managing director of the Northwest Indiana Forum. He is a recipient of the Sagamore of the Wabash award and a member of the Indiana Bankers Association Forty Year Club. Cindy Homier, operations, First Federal Savings Bank, Huntington, is completing 20 years of service with the bank as of April 24. Previously she served the bank as teller and head teller. t
16 Hoosier Banker April 2015 authority to pledge property of the trust to secure a loan. The bank may request that the trustee provide a certification of the trust1 and “copies of excerpts from the original trust instrument and later amendments that: (1) designate the trustee; and (2) confer on the trustee the power to act in a pending transaction in which the recipient has an interest.”2 If the bank requires the trustee to provide additional documentation (including a copy of the trust), the bank may be liable for damages if a court later determines that the bank did not act in good faith in demanding a copy of the trust.3 A certification of trust may be signed by any trustee; must state that the “trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect;”4 and must contain the following information 1. That the trust exists and the date the trust instrument was executed; 2. The identity of the settlor; 3. The identity and address of the currently acting trustee; 4. The powers of the trustee; 5. The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; 6. The authority of cotrustees to sign or otherwise authenticate and whether all or less than all the cotrustees are required in order COMPLIANCE CONNECTION Question: An individual has represented to the bank that he is the trustee of a certain trust, and that he wishes to pledge property of the trust to secure a loan from the bank to the beneficiary of the trust. The trustee has refused to provide a copy of the trust to the bank so that the bank may verify his powers under the trust. May the bank require the trustee to provide a copy of the trust? Answer: The bank is not required to accept the trustee’s mere assertion of aBout ComplianCe ConneCtion In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance program offering advice on Indiana-specific compliance questions. If the matter requires legal advice, IBA Compliance Connection will refer the bank to a law firm. The material in this issue was prepared by Larry C. Tomlin, partner with Krieg DeVault LLP, Indianapolis, and IBA compliance consultant. Submit Compliance Connection questions to IBA’s Amber R. Van Til at avantil@indianabankers.org. © 2015 Krieg DeVault LLP THINKING BEYOND TRADITIONAL SOLUTIONS FOR FINANCIAL INSTITUTIONS FOR OVER 130 YEARS • Corporate Representation • Mergers and Acquisitions • Capital Offerings • Regulatory • Compliance • Supervision and Enforcement • New Product Development • Litigation • Commercial / Consumer Loan • Creditors’ Rights • Trust • Tax • Securities • Employment • Intellectual Property One Indiana Square • Suite 2800 • Indianapolis, Indiana 46204 p: 317.636.4341 f: 317.636.1507 INDIANA • ILLINOIS • GEORGIA • FLORIDA • MINNESOTA www.kriegdevault.com
17 Hoosier Banker April 2015 This information is provided for general education purposes and is not intended to be legal advice. Please consult legal counsel for specific guidance as to how this information applies to your institution’s circumstances or situation. to exercise the powers of the trustee; and 7. The manner of taking title to trust property.5 This information should be sufficient for the bank to conclude if the trustee has the power necessary to pledge property of the trust to secure a loan6 and may be relied upon by the bank, as long as the bank does not have knowledge that the representations in the certification of trust are incorrect.7 If the certification of trust does not contain the information enumerated above or, if based upon such information, you are unable to conclude that the trustee has sufficient powers for the proposed transaction, you should consult with the bank’s counsel prior to demanding a copy of the trust. t 2015 BSA / AML Compliance School June 2 & 3, 2015 IBA Center for Professional Development 1 ind. Code § 30-4-4-5(a) (“A trustee may furnish to a person other than a beneficiary a certification of trust instead of a copy of the trust instrument.”). 2 § 30-4-4-5(e). 3 § 30-4-4-5(h). 4 § 30-4-4-5(c). 5 § 30-4-4-5(a)(1) to (7). 6 See § 30-4-3-3(a)(24). 7 § 30-4-4-5(f). Carrier selection is one of the most critical decisions in a BOLI purchase. Not all BOLI providers offer carriers with the top AAA rating. Executive Benefits Network offers its clients the most highly rated BOLI carriers in the industry; delivering the long-term benefits and financial strength our clients expect. Now that is Knowledge You Can Bank On.™ We Peel Back the Layers So Our Clients Can Fully Uncover BOLI. ©2014 EBN BOLI & Deferred Compensation Experts 800.780.4EBN ebn-design.com
18 Hoosier Banker April 2015 Computer Services Inc. (CSI), Paducah, Kentucky, has been named Company of the Year by United Way of Porter County, Indiana. With a 70 percent participation rate among the company’s Valparaiso-based employees over the past five years, the company has increased its United Way campaign by 10 percent each year and offers a 50 percent corporate match. The company donated $60,000 in 2014 to United Way of Porter County. CSI is a Preferred Service Provider of the Indiana Bankers Association in three areas: CSI Secure Connect, CSI Managed Services & Locktite Vault, and CSI WatchDOG Social Compliance. Welcome, New Members The Indiana Bankers Association welcomes the following companies to the IBA network as associate members. For more information about the benefits of associate membership, please contact assoCiate memBers’ Corner DELAWARE AND NEVADA INVESTMENT SUBSIDIARIES AND HOLDING COMPANIES | CUSTODY PORTFOLIO ACCOUNTING | INVESTMENT MANAGEMENT | CAPTIVE INSURANCE Renowned enTITY MAnAGeMenT EXPERIENCE ©2015 Wilmington Trust Corporation and its affiliates. All rights reserved. Affiliates in Arizona, California, Connecticut, Delaware, Maryland, Michigan, Minnesota, Nevada, New Jersey, New York, Pennsylvania, South Carolina, Texas, Vermont, Cayman Islands, Dublin, Frankfurt, London, and Luxembourg. CS7304 MARY ALICE AVERY mavery@wilmingtontrust.com 302.636.6127 MINDY WALSER mwalser@wilmingtontrust.com 702.866.2203 REBECCA HOWELL rhowell@wilmingtontrust.com 702.866.2854 Rod Lasley at 317-387-9380, email: rlasley@indianabankers.org. ADVISA Heather Haas, 317-574-1550 advisausa.com Managing personalities – one’s own as well as one’s employees’ – is a crucial business leadership function. This is the expertise of ADVISA, which offers tools, training and insight to improve people performance. The company’s analytics illuminate workforce talents and motivations, providing reliable data to inform decisions and improve your bottom line. InfoTrust Corp. Jason Kolevar, 586-723-1230 infotrust.us InfoTrust is an IT security company, founded in 1999, that provides enterprise class network and security solutions to small businesses, utilizing only industryproven technologies. t Amplify is a public relations and grassroots tool designed to help rebuild the image of banking. Developed by the American Bankers Association, Amplify is available to all bankers, both ABA members and nonmembers, free of charge. For more information, visit amplifybankers.com, or contact Erin Scheithe at 202-663-5436, email: escheithe@aba.com. t Amplify Your Outreach
Community bankers aren’t the only ones who think so. Nearly everyone in Washington now agrees, to one degree or another. Most members of Congress, including the leaders of both political parties, say it’s time. Top regulators also concur, and some have even offered a proposal or two of their own. Even many of your customers — particularly those, heaven forbid, seeking a loan without a blood test or a signature cramp — say yes. Heck, even those pesky credit unions begrudgingly agree. And ready for the toss, President Obama says he would welcome such bipartisan legislation to sign. Inside and outside Washington, most people agree the time has come to enact real, meaningful and significant regulatory relief for community banks. And fortunately, we have a clear, ready-made plan laid out for members of Congress to do just that. It’s the Plan for Prosperity, the legislative platform of the Independent Community Bankers of America outlining for the 114th Congress specific, targeted regulatory relief measures for community banks. Addressing ICBA’s top priority, the Plan for Prosperity is central to expanding on ICBA’s recent historic progress to establish a fully tiered regulatory framework for community banks. Developed with ICBA’s diverse membership, the platform contains nearly three dozen detailed legislative provisions, each addressing a real-world problem or need. In addition to promoting specific measures to cut excessive and counterproductive regulations, its provisions will help community banks raise capital and make necessary reforms to the banking regulatory process and structure. Significantly, the Plan for Prosperity is a flexible, living document. It can be adapted easily and expanded as new opportunities and circumstances arise. And it gives lawmakers great leeway to advance legislation in multiple ways, however they see fit. This bipartisan plan is ready to go. There’s simply no excuse for Congress not to act soon. And while the banking agencies have a powerful and pivotal role, Congress has the greatest, final authority to act quickly and the most effectively. Understandably, past Congresses have devoted considerable attention and resources in responding to the Wall Street financial crisis. While some of their actions thankfully have been sensitive to the needs and concerns of community banks, there’s no question community banks have nevertheless been disproportionately and unfairly disrupted by the newest complex laws and regulations engineered to stop the excesses and systemic risks of Wall Street institutions. Acknowledging the problem, lawmakers repeatedly have told community bankers to hold on, relief is on the way. Now after years of constant, concerted and vigorous but patient advocacy by ICBA, Congress only needs to wind up its act and to follow through. Community banks — and our economy — need relief now. This month, nearly 1,000 of your fellow community bankers are participating in ICBA’s Washington Policy Summit. As their top advocacy priority, the bankers will be promoting and explaining the Plan for Prosperity and its measures to their members of Congress. Please consider joining them. The summit is open to any and every community banker. Through our collective presence, we all need to make a statement on this issue. Otherwise, please take the time to learn about the Plan for Prosperity. This is your plan. Be prepared to contact your representatives in Congress about it. Nearly everyone agrees our time has come. But we still need our whole industry involved. Be ready and be with us. t SHAZAM is a Preferred Service Provider of the Indiana Bankers Association. the squeeze on you? Is your EFT provider putting (855) 314-1212 • shazam.net/money Every time your EFT provider cranks up its fees, it’s like another clamp-down to your bottom line. But SHAZAM turns it the other way — more than $10 million in price reductions and complimentary new products to our partners over the past two years! Take the pressure off your business. Call SHAZAM today. There’s a better way... call SHAZAM Add it up!
20 Hoosier Banker April 2015 1st Source Bank, South Bend, donated $10,000 in February to the Starke County Initiative for Lifelong Learning for its Automation, Robotics and Equipment Maintenance Program. The donation will be used to provide junior and senior students from the North Central Area Vocational Cooperative the opportunity to participate in the program. Alliance Bank, Francesville, held a campaign for United Way in January that allowed bank employees to contribute via payroll deduction, with the bank matching employee donations. The bank’s efforts resulted in a donation of $702 for the White County United Way. iAB Financial Bank, Fort Wayne, donated $5,700 in February to the Rescue Mission. The bank’s “Fun Committee” selected the nonprofit organization to be the beneficiary of Jeans Days that were held last year, which permitted employees to wear jeans to work with a minimum donation of $3. Banking on Community 1st Source Bank, South Bend, presents a donation check to Starke County Initiative for Lifelong Learning (SCILL). Pictured (left to right) are: A.J. Gappa, superintendent of Knox Community School Corp. and SCILL board chairperson; Judy Caudill, 1st Source Bank branch manager, Knox banking center: Connie Lemler, 1st Source Bank regional president; and Jerry Gurrado, SCILL coordinator of student services and programs. Alliance Bank, Francesville, presents a donation check to White County United Way. Pictured (left to right) are: Barb Schultz, human resources director;Alliance Bank,Terry Stevens, president,Alliance Bank; Sue Wallpe, Melanie McGuin, Pam Roudebush, Clarissa Cobb, Lori Roberts and Don Koleszar,Alliance Bank; Ellen Bartlett, director, United Way; and Jack Faker, president, United Way. iAB Financial Bank, Fort Wayne, presents a donation check to the Rescue Mission. Pictured (left to right) are: Angela Kuhn, iAB branch manager and Fun Committee chair;The Rev. Donovan Coley, Rescue Mission CEO and senior pastor; Laurie Brumbaugh, Rescue Mission major gifts officer; and Amanda Miller and Kristin Smith, iAB Fun Committee members. iAB Financial Bank, Fort Wayne, donated $2,500 in February to the Haupert Institute for Agricultural Studies at Huntington University. The funds will be used to provide agricultural education to students. iAB Financial Bank, Fort Wayne, donated $1,000 in January to the Burmese Advocacy Center. The organization provides Fort Wayne’s Burmese population with assistance in housing, finances and employment. West End Bank, Richmond, selects a nonprofit organization each month as a focus for charitable efforts. For February, the bank selected Sunrise Inc., donating $362 from internal employee donations to the organization. t Lee Pasko, vice president and agribusiness banker, iAB Financial Bank, presents a donation check to Dr. Sherilyn Emberton, president of Huntington University. iAB Financial Bank, Fort Wayne, presents a donation check to the Burmese Advocacy Center (BAC). Pictured (left to right) are: Matthew Marshall, assistant vice president and business relationship manager, iAB Financial Bank; Patrick Proctor, attorney and BAC board member; and Minn Myint Nan Tin, BAC executive director. Becca Funk (right), executive director of Sunrise Inc., accepts a donation check from Gale Ramsey,West End Bank.
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