INSIDE Capstone Benefits Group radiates a culture of caring. Story on page 10. Hoosier Banker AUGUST 2015
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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. 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 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 ExecutiveVice President .................................................................. 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 ................................................................. Marcy Borden Education Meeting Coordinator ................................................................ Elizabeth Kilty 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
TABLE OF CONTENTS VOLUME 99 NO. 8 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. 5 Hoosier Banker august 2015 COVER STORY 10 CAPSTONE BENEFITS GROUP: CULTURE OF CARING FEATURES 6 PRESIDENT’S PONDERINGS S. Joe DeHaven, IBA 8 STAFF SELECTIONS Marcy Borden, IBA 9 IBA CALENDAR OF EVENTS 26 DODD-FRANK AT FIVE: IT'S NO 'HAPPY' BIRTHDAY Frank Keating,ABA 28 FREEDOM AND LENDING Camden R. Fine, ICBA PSP SHOWCASE 16 PROTECTING THE ELDERLY WHILE EARNING CRA CREDIT Lori L. Millar, Senior Housing Crime Prevention Foundation GR SPOTLIGHT 18 COMPLIANCE PROFESSIONALS SHARE CONCERNS WITH CONGRESSMEN IN DC Scott Carr,Your Community Bank, New Albany OPERATIONS 20 FIVE STEPS TO TAKE TO PREPARE FOR SAME-DAY ACH Jennifer Kirk, EPCOR DIRECTORS / SENIOR MANAGEMENT 22 SPECULATION VS. STRATEGY:WHAT DRIVESYOUR INVESTMENT DECISIONS? Lester F. Murray,The Baker Group DEPARTMENTS 23 VIDEO BONUS 24 COMPLIANCE CONNECTION Krieg DeVault LLP 25 ANNIVERSARY MILESTONES 30 BANKING ON COMMUNITY 31 IN MEMORY OF 32 ASSOCIATE MEMBERS' CORNER Capstone Benefits Group is administrator of the IBA Group Insurance Trust. 34 TAKING IT EASY 34 FROM THE BOARD ROOM 35 HONORABLE MENTIONS 36 NEW BRANCHES, BUILDINGS & OPENINGS 38 BANKERS ON THE MOVE 42 ADVERTISERS INDEX
6 Hoosier Banker August 2015 portunities ‒ golf, euchre, the hospitality suite and more. There will be thought-provoking presentations by outstanding speakers, including Richard J. Parsons discussing “The Road Ahead: Five Questions for Bank Executives and Directors”; Dr. Kevin Streff on “Cybersecurity Questions for Executives and Directors”; Tim Pannell regarding “Captivating Millennials: Talking to the Most TalkedAbout Audience”; Ron Galloway updating “The Wallet Revolution: New Payment Technologies and the Implications for Banks”; and the always captivating Dr. Steven K. Happel presenting on “How Much Has the Economy Improved the Past Two Years, and What’s in Store for 2016?” Additionally, panel discussions and breakout sessions will delve into other industry details. Throughout the convention, we will enjoy top-rate food and spend some time benefiting the Indiana BANKPAC, so that we can continue to support those lawmakers and candidates who understand the importance of a strong banking environment. We will wrap up the event with the chairman’s banquet, featuring the Beatles tribute band “Eight Days a Week.” Registration fees remain low compared with other similar venues, because of the many service providers who purchase booth spaces and provide financial sponsorship of the convention. We thank them for their valuable support. As was true for the 1904 IBA meeting, the 2015 IBA Annual Convention will be an entertaining and important event to help us keep the lifeblood flowing for our communities and state. I hope to see you there! FEATURE President’s Ponderings S. Joe DeHaven, President & Chief Executive Officer, Indiana Bankers Association As I was preparing to write this month’s President’s Ponderings, I decided to look into the archives of IBA history. I found a book that represents the minutes of our eighth Annual Convention, held at the Claypool Hotel in Indianapolis, Oct. 5-6, 1904. The minutes were printed and bound ‒ all 139 pages of them! Upon further research, I found that all of the IBA annual meeting minutes, through the year 1916, were recorded at that level of detail. The 1906 version was particularly long at 190 pages, plus some 50 pages of advertisements and a full printout of laws passed during the prior legislative session. Today we no longer document to this extent, and our staff is grateful. The 1904 meeting was opened by the governor of Indiana and the president of the Canadian Bankers Association. It continued with welcoming remarks by IBA board President A.G. Lupton of Blackford County Bank, Hartford City, who shared the following insights: “The heart is the great power which regulates the circulation of the blood. Through the arteries, it sends the blood in large quantities into every part of the body and receives it back again from the veins. The heart must be kept in good condition, sound and active. Its beats must be constant and regular. Any irregularity in its action results in an enfeebled and nervous condition of the body. “The bank is the heart of the business community. Through its depositors, it receives the life blood of that business community and sends it out again through the arteries of its loans. The greater portion of the business in this country is done on borrowed capital, therefore it is chiefly the borrower who receives the money from the bank and distributes it in the various industries. It becomes scattered throughout the community and finds its way back again through the deposits into the bank and is again sent out. “Money, to be of value, must be used. Money in the stocking or buried or lying idle in the bank is worth nothing more than a pile of sand. So to be of benefit to the business community, the bank must keep the money circulating. So it is the banker who stands with his finger upon the pulse of the business life, and upon him, more than upon any other man, depends the activity and welfare of that life … He must have the reputation of being an honest man and, to sustain that reputation, he must be honest.” What a perfect analogy! It still holds true today that the circulation of funds, as provided by banks, must be allowed to flow freely for the health of the larger business community. With that backdrop, I am proud to announce that the 2015 IBA Annual Convention, “New Horizons,” will be held Sept. 13-15 at the beautiful and historic French Lick Resort. The event will provide plenty of networking opLure in your prospects through strategic advertising in Hoosier Banker magazine, the flagship publication of the Indiana Bankers Association. Hoosier Banker is distributed to more than 6,500 subscribers monthly, with a pass-along readership exceeding 15,000. Its subscriber base includes all banks and thrifts headquartered in Indiana, along with non-Indiana banks that have a presence in Indiana. They won’t bite without the bait ... For details, contact Rod Lasley at 317-387-9380, rlasley@indianabankers.org.
LENDING SERVICES Holding Company Shareholder Groups Bank Credit Needs And More! DEPOSIT SERVICES Fed Fund Sweeps Wire Transfer ACH And More! INTERNATIONAL SERVICES Foreign Exchange (CHECKS & WIRES) Letters of Credit And more! NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE WEALTH MANAGEMENT GROUP Retirement Plans Investment Management Insurance Trust Partnering And More! James Brown Correspondent Banking THE CORRESPONDENT BANKING TEAM JAMES BROWN Count on us. In today’s environment, Correspondent relationships are more important than ever. We want to be your bank’s partner when you have needs around capital, liquidity, acquisition financing, stock buy backs and more, in addition to retirement plans and other trust services. Give James a call and put our experienced team to work for your bank. James Brown has over 23 years of banking experience in Retail, Small Business, Corporate and Correspondent Banking. (502) 625-9330 james.brown@syb.com
8 Hoosier Banker August 2015 FEATURE Staff Selections Marcy Borden, Education Meeting Coordinator Indiana Bankers Association Greetings, IBA Members: Thank you for welcoming me into the IBA family. I have met several of you at our educational events, and you’ve made me feel very much at home since joining the IBA in June. I came on board as an education meeting coordinator to help Laurie Rees, IBA vice president-meetings & events, in promoting and presenting seminars, schools, webinars and teleconferences. Specifically my duties include assembling the manuals and handouts for the forums and seminars, assisting with marketing IBA’s exceptional educational events and providing a positive learning experience to all of our guests. I work closely with Elizabeth Kilty, our other education meeting coordinator. IBA offers so many educational programs that Laurie needs two helpers! I joined to fill a spot vacated by Marlene Wells, who retired last month after 18 years of service. I had the pleasure of working alongside Marlene before she left, and I consider her a mentor. Filling Marlene’s shoes will be a challenge, but I am inspired by Marlene’s outstanding customer service and passion for education. Prior to coming to the IBA, I worked as a procurement agent for the Indiana Department of Transportation. I assisted in the process of purchasing materials for the Greenfield district, which included Indianapolis. Having Indianapolis in my district made my area the largest producing district in the state. I processed orders for anything that was needed, from ballpoint pens to bituminous hot mix (asphalt). My other past experience includes working with the Department of Sociology at Purdue University. I loved working for Purdue. I enjoyed the excitement and enthusiasm the students had for life and watching them further their education. I also enjoyed working with such knowledgeable faculty and warm, caring staff. It was a great experience. Purdue provided me many opportunities to educate myself and stay on top of the game with my skills. The university offered me training in various software programs to help with my daily responsibilities, including creating newsletters, arranging meetings, organizing travel and maintaining databases ‒ all of which I am now using at the IBA. In addition to working at Purdue, I have owned my own retail storefront that made and sold natural handmade beauty products. I put together my business idea on a shoestring budget, and it was an incredible life experience. From running a small business, I learned the value of hard work, time management, accounting, how to struggle with grace, and the value of networking. I had a loyal group of friends who gave me a helping hand whenever I needed it, and I met quite a few influential people. One of the most influential people in my life is my sister Mindy. I watched her go to school while working fulltime to earn her master’s degree. She has always been my support system, and she taught me to encourage those around me to accomplish their goals. Mindy is the reason I am in Indiana today. After I received my bachelor’s degree in business management from Arizona State University, she was moving to Indiana to accept a position at Purdue University as a graphic designer. Being very close to my sister, I jumped on the moving wagon. Soon after arriving in Indiana, I began to dabble in journalism. I wrote articles and covered meetings for various newspapers. That’s when I learned how much I love talking to people. I enjoy hearing their stories about how they came to be. I also am a newlywed, recently married to a wonderful guy. He is a fireman, so he needed to stay close to his station, hence the reason I came to the Indy area. It all began one winter afternoon at Starbucks, when I met Charlie over a latte. One latte became two, and four hours later we realized there was obviously a spark between us. Six months later we were planning our wedding. Charlie tolerates well my two spoiled French bulldogs, Napoleon and Hugh Hefner. We have a blended family of two lovely daughters. My daughter is finishing her degree in criminal justice in West Lafayette, and his daughter lives in Fortville, working in marketing. On the side, I serve as a wedding officiant. I enjoy being a small part of a couple’s special day. When I’m not working on weddings, I spend my free weekends visiting different towns to hike, shop and explore. I also like riding our Harley, reading, traveling, lounging on the couch with my sidekicks (the Frenchies) and spending as much time as possible with my wonderful husband. I am very excited and proud to be the newest IBA team member. I wanted to find a position that would allow me to be involved in education and events, that utilizes my skills, and that challenges me to stay fresh. I look forward to meeting all of you and serving the IBA community.
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 9 Hoosier Banker August 2015 Alternative Delivery Channels … Available at your convenience via Webinar, CD-ROM or On-Demand Trust Officer / Financial Adviser Forum Aug. 13 - IBA Center Regional Bank Director Workshop Aug. 17 - Hotel Fort Wayne Aug. 18 - Wooded Glen Retreat & Conference Center, Henryville Branch Management Series: Session 3 - Leading, Developing and Engaging the Team Aug. 18 - IBA Center Deposit Compliance Fundamentals Aug. 19 – 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 Retreat & Conference Center, Henryville Essentials of Banking: Session 4 - Lending, Bank Investments and Bank Performance Aug. 24 - IBA Center Appraisal Review Aug. 26 – IBA Center ABCs of HR Compliance – WhatThey Are,What Has Changed, and What Is on the Horizon Sept. 2 – IBA Center Advanced Agricultural Lenders Conference - Ag Lending Post Super Cycle Sept. 2-3 - Four Points by Sheraton, West Lafayette Internal Technical Assessments Sept. 3 - IBA Center BSA/AML Compliance Management Sept. 8 – IBA Center Senior Retail Banking Forum Sept. 9 - IBA Center State of Indiana Safe Deposit Operations 2015 Guidelines and Update Sept. 10 - IBA Center IBA Annual Convention Sept. 13-15 – French Lick Resort Call Report Preparation Sept. 17-18 - IBA Center Annual Security Management Seminar Sept. 22 - IBA Center Indiana Deposit Account Administration Sept. 22 - Best Western Plus, New Albany Sept. 23 - IBA Center Risk Management Officer Forum Sept. 24 - IBA Center Advanced Credit Analysis School Sept. 24-25 - IBA Center IBA Annual Washington Trip Sept. 27-29 – Washington, D.C. Talent Assessment and Succession Workshop Sept. 29 - IBA Center Mortgage Lending School Sept. 29-Oct. 1 - IBA Center Loan Review Oct. 2 - IBA Center CBC Compliance Schools - Lending Module Oct. 5-8 – IBA Center - Deposit/Operations Module Nov. 4-5 – IBA Center Chief Financial Officer Forum Oct. 6 - Group 1 - IBA Center Oct. 9 - Group 2 - IBA Center Senior Lender Forum Oct. 7 - Group 1 - IBA Center Oct. 8 - Group 2 - IBA Center IT Security and Risk Management Conference Oct. 7-8 – Rising Star Casino Resort Leadership Development Program: Session 4 – Who Dares,Wins Oct. 14-16 – Wooded Glen Retreat & Conference Center, Henryville ACH Rules and Payment Systems Update Oct. 15 – IBA Center Marketing Director Forum Oct. 20 - IBA Center IRA School: Basic Issues and Intermediate/Advanced Issues Oct. 20-21 - IBA Center IT Officer and Operations Officer Forum Oct. 22 - Group 1 - IBA Center Oct. 23 - Group 2 - IBA Center Internal Audit and Risk Management School Oct. 27-28 - IBA Center Bank Audit Committee Responsibilities Oct. 29 - IBA Center Branch Management Series: Session 4, Raising the Bar for Sustainable Growth Nov. 3 - IBA Center CBC Compliance School - Deposit/ Operations Module Nov. 4-5 - IBA Center Future Leadership Division Conference - Bridging Bankers, Building Leaders Nov. 4-5 - Renaissance Indianapolis North Hotel, Carmel Fundamentals of Commercial Lending Nov. 9-10 - IBA Center Human Resource Directors Forum Nov. 10 - IBA Center Advanced Cash Flow Nov. 12 - IBA Center Asset-Based Lending Nov. 13 – IBA Center Community Bankers for Compliance Series - Session 4 Nov. 16 - Courtyard by Marriott, Fort Wayne Nov. 17 - IBA Center Nov. 18 - IBA Center HMDA Nov. 13 - IBA Center Midwest Agricultural Banking School Nov. 30-Dec. 3 - Purdue University, West Lafayette Lenders Comprehensive Guide to Mortgage Lending Dec. 1 - IBA Center Trust Officer Forum Dec. 2 - IBA Center Agricultural Clinic Dec. 3 - Purdue University, West Lafayette Advanced Commercial Lending School Dec. 10-11 – IBA Center Aug. 13 - CFPB Income Verification Rules for Self-Employed Borrowers:Tax Implications for Qualified Mortgages Aug. 18 - Website and Social Media Compliance Aug. 18 - Vital Check Issues Aug. 18 - Mortgage Loan Originator Required Training Series II Aug. 19 - USPAP Issues and Best Practices for Residential Appraisal Reviewers: Avoiding Violations Aug. 19 - Flood Insurance - Fact or Fiction? What DoYou Need to Know? Aug. 20 - Basic Cash Flow Analysis Aug. 25 - Emerging Leaders Series: Debt Service Coverage Calculations in Underwriting Aug. 26 - Mastering the SBA 7a Loan Part 3: Servicing, Liquidation and Guaranty Purchase Aug. 27 - Facebook: Update on System, Strategies,Techniques and Tips Sept. 2 - Best-Ever Compliance Checklists for Commercial Loans Sept. 2 - Strategic Planning Years 1, 3 & 5: Scope,Techniques and Elements in Drafting Your Written Plan Sept. 3 - Advanced ACH Specialist Series: Defining and Identifying Third-Party Senders: Risk, Liability and Audit Requirements Sept. 9 - Director Series: UDAAP for the Board and Senior Management Sept. 9 - How Loans Get Repaid: Cash Flow, Collateral and Personal Guarantees Sept. 10 - Opening Deposit Accounts Online Sept. 10 - Power of Attorney Sept. 10 - Call Reports: Understanding the New Regulatory Capital Requirements and the Revised Schedule RC-R Sept. 11 - BSA Series: Completing CTR and SAR Reports Lineby-Line Sept. 11 - Mortgage Advertising: Keeping Your Promotions Compliant Sept. 14 - For Salespeople:Avoid the Big Mistake and Get Commitment Sept. 15 - Managing the Eight Categories of Risk Assessment Sept. 15 - Dos and Don’ts of Checks Sept. 16 - Loan Underwriting Basics: Interviewing, Credit Reports, Debt Ratios and Regulation B Sept. 17 - Living Trust Documents Sept. 17 - Imaged Documents:What to Keep,What to Destroy, What Holds up in Court? Sept. 18 - Health Savings Accounts Sept. 22 - IRA Series: Auditing IRAs Step-by-Step Sept. 22 - Global Cash Flow Analysis Sept. 23 - Integrated Disclosures: Implementation Challenges and Common Problems Sept. 23 - Basic Banking for New Employees Part 1: Banking System, Deposit Operations, Lending Sept. 24 - Using Personal Tax Returns for Global Cash Flow:What’s Cash Flow, and What Isn’t? Sept. 24 - Legal Liabilities When Check Fraud Occurs Sept. 24 - Regulator Guidance and Issues in ATM Security Oct. 27 - Emerging Leaders Series: Key Leadership Strategies for Growth, Profitability and Retention Oct. 28 - Network Security 101:A Comprehensive Overview Oct. 29 - Maintaining Compliant FDIC Records, Including Related Email and Social Media Retention Rules
10 Hoosier Banker August 2015 COVER STORY Capstone Benefits Group: Culture of Caring Carol Jobe is senior consultant of Capstone Benefits Group, and Aaron Curtis is founder and principal. Perhaps it is the nature of its caregiver-related work that makes possible the altruistic culture of Capstone Benefits Group, headquartered in Indianapolis. Or maybe it is because the company is deeply rooted in the Midwest, known for homespun hospitality. Or it might be because most of the company’s employees have worked together for years, colleagues even before the company was formed. Whatever the reasons, the result is a unique company culture that includes staff pitch-ins, prayer meetings, and end-of-week conversation and refreshments every Friday afternoon. The formula seems to work, as Capstone successfully brings robust health and welfare plans to the employees of the Indiana banking community through the IBA Group Insurance Trust, a Preferred Service Provider of the Indiana Bankers Association. Capstone Benefits Group is administrator of the Trust. Hoosier Banker recently interviewed Aaron Curtis, Capstone founder and principal, and Carol Jobe, senior consultant. What does Capstone Benefits Group offer to IBA-member banks? Aaron: “We’re the administrator of the IBA Group Insurance Trust. We don’t pay the claims ‒ that’s done by the insurance company ‒ but we do all the behind-thescenes eligibility work. We do the customer service work, account management, sales, accounting and underwriting. “We’re the program manager, and we are here to serve the members of the IBA Trust. When IBA members have questions, they come to us. Judy Nordhoff, eligibility manager/client advocate, often assists our clients, as well as Nan Gill, vice president, and Rachel Smith, account executive. We also have a sales consultant, Stephen James, who calls on banks and their insurance agents.” What is Compliancedashboard? Aaron: “Compliancedashboard is a calendarized, Web-based tool that Capstone created seven years ago in response to the needs of trade association plans. The product helps IBA-member banks know what to do to remain compliant. There are 60 or 70 federal laws that impact group insurance plans, some of which are the responsibility of the Trust, which we take care of. Compliancedashboard helps banks with the laws that are the employer’s responsibility. “It works by sending an email to the individual at the bank responsible for human resources, indicating that there is a compliance activity to complete. Then Compliancedashboard sends a brief explanation with a list of five or six related tasks. The HR person completes the tasks, clicks the ‘Done’ button, and then the ‘Submit’ button. Compliancedashboard date-stamps and records the compliance activity for entry into a permanent record, which can be used in audits.” Carol: “Feedback has been really positive. It’s a great tool for HR professionals.” Capstone also offers Web-based enrollment. What are the benefits? Aaron: “Historically HR functions were not secure, since they were paper-based. Web-based is passcode-secure, and it’s much easier and faster. “It actually helps prevent mistakes through rules-based technology. If an individual puts in 1858 as a birth date, rather than 1958, the system will kick it back out. “This technology is optional, for those who want to use it. Out of the 80 or so banks we have enrolled, all but three or four use it.” Carol: “We first offered it several years ago, but back then it was a bit too futuristic. Now most groups are interested.” Aaron: “HR people wear 14 hats. We recognize that it’s difficult, and we’re doing everything we can to make their lives easier.” How is Capstone addressing cyber security issues? Aaron: “We have two places where we have to be secure: Capstone’s server, including email; and
11 Hoosier Banker August 2015 Continued on page 12. Carol Jobe and Aaron Curtis have been working together in the benefits industry for nearly 25 years. {Elevate your view.} Sometimes the best solutions are revealed when you change your perspective — and finding the right perspective is easier when you have knowledgeable advisors. Our experienced team can serve your audit, tax, internal audit, loan review, regulatory compliance, IT audit, and security assurance needs, delivering a higher return on experience. Robert Bondy 616.643.4013 banks.plantemoran.com Michael Stearns 269.567.4614 laptops, cell phones and anything mobile on which we can receive HIPAA-protected information. Within the last 18 months, every piece of equipment that we have has been encrypted. “The server is encrypted. We’ve upgraded our firewall twice in the last year. Even cell phones are encrypted, protected with sevendigit, alphanumeric passwords. To get through the encryption, there is first a passcode, so there are two levels of security to get into our computers. “We’ve also instituted protocols with our employees about the use of the equipment. If you lose your cell phone, there are staff you can call ‒ even in the middle of the night ‒ who can remotely wipe it completely clean. “Additionally there is Benefit Solver, the system we lease for billing and eligibility. Benefit Solver invests heavily in security and is ranked as one of the top secure benefit administration platforms in the country.” How has healthcare reform affected the health benefits industry? Aaron: “It hasn’t accomplished what we thought it would. It’s called ACA, the Affordable Care Act, yet it hasn’t made health insurance any less expensive. In fact it’s made it more expensive, plus added multiple layers of bureaucracy. “But we’ve adapted, and our benefits administration business can take care of a lot of the complex issues for employers. But for employers themselves, healthcare reform has made it difficult to the extent that some small employers have chosen to drop their health insurance entirely. “In all fairness, though, ACA has made coverage available to some people who have not had it in the past. In that respect, it has seen some success.” What are your responsibilities for Capstone Benefits Group? Aaron: “First it’s important to understand that I’m just one of two principals, along with Dan Bond. Plus there are a lot of others who are behind this entire concept. “My function is to serve as the lead adviser for our multiple-employer clients. I manage the benefits administration portion of our business and the sales staff. Dan Bond is the architect and the brain trust behind Compliancedashboard. “As time goes along, I’m spending more time with Dan setting strategic direction for the company as we grow. We’ve grown a lot in the last couple of years, doubling from a staff of 10 to 20. We want to continue to fuel that growth. “Also I’m spending more time taking care of people and making sure that our employees have the tools they need. We want to create a positive work environment: a happy place to come to everyday. As we gain more employees, being able to create that environment is challenging, but it’s a good challenge, one that I like. “My motivation is not to create greater output or different output.
12 Hoosier Banker August 2015 Continued from page 11. Continued on page 14. A congenial atmosphere pervades at Capstone Benefits Group. In my mind, treating our people well is just the way it ought to be. As a faith-based organization, our foundational block is to treat people well ‒ not just the people here, but everybody we touch.” Carol: “As a consultant, I speak with both the HR professionals and with insureds. I take care of questions that arise from members regarding coverage or the wellness plan. “I also try to be out on the road at least a day or two each week to visit banks, where I conduct employee meetings and explain benefits. I’m a people person, so it’s a really good fit. “I think Aaron put ‘senior’ in my title because of my longevity. I entered the benefits industry when I came out of Indiana University with a business degree in 1982. Almost 25 years ago, I was hired at J.F. Molloy and Associates, which is where I started working on the Trust account. “I really love what I do. I never have the same day twice, and I learn something new every day.” How did your careers develop? Aaron: “I got my start with J.F. Molloy and Associates, when I wandered in one stormy day in 1984 to make a sales pitch for vision insurance to Dave Blanford, the owner at the time. Apparently he liked what he saw because he called me a couple of days later and offered me a job. “I worked for Molloy for a little over 20 years, and then the company was sold in 2004. I had an opportunity to stay with the buyer, but I was ready to move on. “So I started Capstone with the idea of continuing to work with trade association plans. Molloy had done it for years. Its history was built around trade association plans, and I understood them. “Four or five years after starting Capstone, the company grew into the benefit administration business, primarily because the trust insurer was leaving the medical business, and the eligibility piece had to be replaced. “It wasn’t necessarily by my design that my career took this path. I was a biology and communications major at Purdue University and had planned to become a conservation officer or a labor relations negotiator. Maybe it was by divine design.” Carol: “Prior to working at Molloy, I had worked in claims for a couple of other carriers, one in Chicago. Then I joined Molloy, and then Principal for a few years. Principal was getting out of the health insurance industry around the time that Aaron and Dan started Capstone. It made for a natural progression to join him. “Along the way, Dave and Nan suggested I would enjoy calling on the banks. So we pulled me out of claims, I worked through billing and eligibility for a couple years, and then I was put on the road to visit clients. “Actually most of the employees here are former Molloy employees ‒ even some of the new ones.” What are some background influences that affected your career development? Aaron: “Faith is an influence. As I look back, my parents clearly gave me a solid foundation of understanding of hard work and taking personal responsibility. I was fortunate that my parents ingrained that in my sister and me. “Professionally, as I moved on, working at Molloy and working for Dave Blanford had a huge impact on my life. Watching Dave operate Molloy for 20 years taught me everything I know about business and how to operate a Christian business. I give Dave a huge amount of credit for where we are today. He still is my mentor.” Carol: “I worked for a lot of good people before I came to Molloy, but Dave Blanford, Nan Gill and Aaron have taught me so much through the years. They’re all people with great integrity, which means they don’t do the easy things. They do the right things. “Dave used to hold regular prayer meetings, and Aaron does the same. I’ve been very fortunate in this environment. “I also give a lot of credit to the insureds that I talk to or the HR people. They teach me so much. This industry was made for a reason, and I remember Dave Blanford making a point at an employee meeting. He said that people don’t call us because they’re having a good day. They’re sick, or somebody close to them is sick, and they need reassurance about the financial aspect of their medical bills. “My job isn’t always to give people the answer they would like, but to give the correct answer. What we do boils down to those end users. They’re going through something difficult, and it’s our job to make them more comfortable.” Please share a bit about home life and pastimes. Aaron: “My wife Sally and I will be married for 30 years in September. We have three grown children who are all married, and they all picked wonderful spouses. We have four grandchildren and another due in November. Because all the grand-
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14 Hoosier Banker August 2015 Continued from page 12. TODD ANDRITSCH tandritsch@equiasalliance.com 11416 Forest Knoll Circle Fishers, IN 46037 Tel: 317.517.5000 www.equiasalliance.com Equias Alliance helps banks in Indiana, and across the country, meet their financial goals, manage benefit liabilities and enhance shareholder value with a custom designed BOLI program. Todd and the team at Equias Alliance want to be your source for strategic benefit and BOLI solutions. In Indiana, The Checkered Flag for BOLI is Todd Andritsch! The American Bankers Association (through its subsidiary, the Corporation for American Banking) has endorsed services provided by Equias Alliance. Todd Andritsch is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC Equias Alliance LLC is independent of ProEquities, Inc. ©2015 Equias Alliance EA-Ad-03-2015-Indiana-HP-03ab.indd 1 3/6/15 2:00 PM children live in North Carolina, we spend a fair amount of time going back and forth. “I’m also an avid outdoorsman. I do a lot of hunting and fishing, which occupies my spare time. We have some property in southern Indiana by Salem, and we go down about every other weekend to hang out. There’s no TV and no cell phones ‒ it’s very relaxing.” Carol: “I grew up in a large family, with five brothers and one sister. I have a wonderful husband, Terry, and we have a family of five children and two adorable grandchildren. “Terry and I are having fun. We like to travel and stay active. We bike, we hike, we walk, and we both love to read. I always have a book going, and Terry reads a book or two a week. My parents were both readers, and they set a good example.” What would you like for IBA members to know about Capstone Benefits Group or the IBA Group Insurance Trust? Aaron: “What I want folks to know is that the IBA Group Insurance Trust is a safe, administratively simple place to have your group insurance. It’s fully insured by Anthem, one of the largest health insurers in the United States. “There is no risk to the employer. We put in all the tools they need, so it can be a onestop shop with new technology and benefits enrollment. It’s also really simple. We can take a lot of headache away from the employer. “The second thing that I’d like for people to know about Capstone is that our purpose is simply to serve people. That speaks back to our foundational principle of service. We’re just here to help people.” What is the significance of the name ‘Capstone?’ Aaron: “Thank you for asking. It speaks to our faith. “Capstone is an architectural term. In the Bible, the words ‘capstone’ and ‘cornerstone’ are used interchangeably, with Jesus often referred to as the Chief Cornerstone. “In architectural vernacular, the cornerstone is the primary stone of a building’s foundation, off of which the rest of the building is created. Conversely the capstone is often considered the final piece of the building, and generally the part most visible to people. “For us, the word capstone represents how our faith is both the foundation of our company, as well as what people experience when they interact with us. Basically our company is named Capstone, because without God in our lives, this whole venture wouldn’t have happened and couldn’t succeed.” t
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16 Hoosier Banker August 2015 PSP SHOWCASE The mission of the Senior Housing Crime Prevention Foundation (SHCPF) is to provide safe, secure living environments to elderly individuals by implementing crime prevention programs in nursing homes, senior Department of Housing and Urban Development housing venues and veterans’ homes. Banks of any asset size or charter type can sponsor the nationally acclaimed Senior Crimestoppers, available through SHCPF, to combat crimes against the elderly. Participation additionally earns the sponsoring bank Community Reinvestment Act credit. Involvement is easy. A bank chooses whether to structure its commitment as a community development loan, investment or grant, depending on the bank’s need or preference for CRA credit. Once the bank’s financial commitment is in place, SHCPF collaborates with the bank to identify senior living facilities to sponsor. SHCPF then implements the Senior Crimestoppers program in the facility ‒ including training of facility staff ‒ and helps the bank coordinate a media event to spotlight its community service to seniors. The bank benefits from participation by earning CRA credit on its loan, investment and possibly service test sections of its CRA exam. The bank also receives positive publicity by promoting quality-of-life programs for seniors. Flexibility is a hallmark of this program, which offers the sponsoring bank multiple funding options, assessment areas and choices of facilities. SHCPF would like to thank Centier Bank, Northern Indiana; Lake City Bank, Warsaw; MainSource Bank, Greensburg; Old National Bank, Evansville; and State Bank of Lizton for their participation in the nationwide program. These financial institutions have loaned, invested or granted more than $11.6 million to help provide safe living environments to over 1,165 Indiana seniors who reside in nursing homes, HUD senior housing communities or veterans’ homes. The nursing homes that have implemented the Senior Crimestoppers program have experienced a 94 percent reduction in crime incidents. A trusted provider of elder abuse prevention programs in senior care facilities, SHCPF acts as an informational resource on a wide range of issues, both inside and outside of traditional, long-term care settings. To enhance its messaging, SHCPF has produced the “Preventing Elder Financial Abuse Video Toolkit,” giving banks the ability to educate the community at large on signs of elder financial abuse, and how to prevent it. The kit includes a video ‒ with information adapted from the Money Smart for Older Adults program of the Federal Deposit Insurance Corp. and Consumer Financial Protection Bureau ‒ and customizable handouts and news releases. To make a presentation using the toolkit, first prepare for a media event by completing and distributing the fill-in press release, and personalize and print out the handouts. At the media event, have the handouts available and: • Introduce self and others from the bank; • Show the video; • Answer questions from the audience. There is no need for notetaking among attendees, because information is summarized in the handouts. For the closing questionand-answer session, invite local law enforcement, attorneys, financial advisers and officers of Indiana Adult Protective Services to attend the event to help field questions. Protecting the Elderly While Earning CRA Credit About the Author Lori L. Millar is vice president, communications and marketing for the Senior Housing Crime Prevention Foundation. She joined the organization 11 years ago and has more than 25 years of experience in journalism, advertising, marketing, printing and sales. Millar is a graduate of the University of Memphis. The author can be reached at 877-232-0859, email: Lori.Millar@shcpfoundation.org. The Senior Housing Crime Prevention Foundation is a Preferred Service Provider of the Indiana Bankers Association.
17 Hoosier Banker August 2015 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. The Senior Housing Crime Prevention Foundation offers a threeminute video overview of financial exploitation of the elderly. To view, go to Hoosier Banker Digital at indianabankers. org, and click on the red YouTube arrow. Video Extra There are two main reasons a financial institution should become involved with the SHCPF Senior Crimestoppers program: It’s the right thing to do, and it is good business. It’s the right thing to do, because our vulnerable elderly have given much to our communities and deserve to live in safety. It’s good business, because the bank connects with a lucrative affinity group, while gaining CRA credit. For more information about the Senior Housing Crime Prevention Foundation, contact Sue Shaffer at 877-232-0859, email: Sue.Shaffer@ SHCPFoundation.org. t What Is a Preferred Service Provider? CONTACT BILL UELMEN AT 702.598.3738 OR VISIT WWW.KEY-STATE.COM TO LEARN MORE. THIS INDEPENDENT, COST EFFECTIVE SERVICE INCLUDES: DOES YOUR ASSET LIABILITY PROCESS MEET EFFECTIVE MANAGEMENT STANDARDS? KEY STATE’S ASSET LIABILITY MANAGEMENT PROCESS VALIDATION SERVICE WILL ENSURE THAT IT DOES. • RISK MANAGEMENT AND RELATED POLICY REVIEWS • ASSET LIABILITY COMMITTEE GOVERNANCE EVALUATION • ALM MODEL CONTROL AND ASSUMPTION DEVELOPMENT • REPORTING AND OUTCOME ANALYTICS
18 Hoosier Banker August 2015 On June 17, while attending the American Bankers Associations Regulatory Compliance Conference in Washington, D.C., one dozen Indiana bank compliance professionals visited Capitol Hill to meet with Congressmen Luke Messer, Marlin Stutzman and Todd Young. The topic of discussion was regulatory compliance and its impact on community banks in Indiana. Due to scheduling needs, our delegation split into two groups in order to meet with Rep. Stutzman and Rep. Messer; the full group met with Rep. Young. Indiana compliance professionals who attended the visit were: Scott Carr, Your Community Bank, New Albany Annette Curton, Farmers State Bank, LaGrange Janelle C. Gamble, Ameriana Bank, New Castle Carol E. Gassen, Merchants Bank of Indiana, Lynn Tracy Gorjup, STAR Bank, Fort Wayne Kelli Havens, First Savings Bank, Clarksville Andrew R. McGarvey, Your Community Bank, New Albany GR SPOTLIGHT Compliance Professionals Share Concerns With Congressmen in D.C. Eric Neuenschwander, Lake City Bank, Warsaw Lisa Renbarger, State Bank of Lizton Tina Schmitt, Freedom Bank, Huntingburg Angel Shaw, Your Community Bank, New Albany Michelle Wedeven, Lake City Bank, Warsaw Some of the topics that we discussed included: • Truth in Lending /Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule scheduled to take effect Aug. 1, 2015 (now deferred to Oct. 3, 2015), and its impact on community banks; • Cybersecurity and debit card breach issues affecting community banks; • CFPB Director Richard Cordray’s overruling ‒ in a demonstration of excessive authority ‒ his administrative law judge in the PHH Mortgage Corp. case; • Credit unions and Farm Credit Services operating outside their stated missions, and stealing business from community banks by violating rules that community banks must comply with; • The growing challenges of compliance professionals in the current highly regulated environment, without relief in sight. All three Congressmen we met with shared our concerns and This month’s GR Spotlight column is guest written by Scott Carr, Your Community Bank, New Albany. While in Washington, D.C., recently for a conference, Carr and 11 other Hoosier bankers took advantage of the opportunity to meet with lawmakers while in the nation’s capital. The Indiana Bankers Association appreciates this grassroots advocacy outreach. Rep. Luke Messer, 6th District (fourth from left), visits with Indiana bankers.
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