Hoosier Banker JANUARY 2016 INSIDE First Federal Savings Bank, Evansville, wins awards under the leadership of Mike Head. Story on page 8. 1916 - 2016 YEARS
WE ONLY ANSWER TO you. WWW.KEY-STATE.COM | 260.227.0265 TRAVIS HOLDMAN, SVP, at tholdman@key-state.com CAPTIVE MANAGEMENT ASSET LIABILITY CONSULTING SERVICES NEVADA SUBSIDIARY SERVICES MUNICIPAL CREDIT REVIEW (MCR) BANK PORTFOLIO CONSULTING PROVIDING SMART, INDEPENDENT ADVICE TO INDIANA BANKS FOR 24 YEARS. EXCEEDING EXPECTATIONS. IT’S HOW WE DO BUSINESS.
TABLE OF CONTENTS VOLUME 100 NO. 1 6925 Parkdale Place Indianapolis IN 46254-4673 Phone: 317-387-9380 Fax: 317-387-9374 Twitter @indianabankers www.indianabankers.org Publisher: S. Joe DeHaven Editor: Laura Wilson Advertising: Rod Lasley 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 fifth day 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. 3 Hoosier Banker January 2016 COVER STORY 8 MIKE HEAD: BANKING QUARTERBACK FEATURES 5 PRESIDENT’S PONDERINGS S. Joe DeHaven, IBA 6 IBA CALENDAR OF EVENTS 7 IBA BOARD REVIEW Kristin Marcuccilli, STAR Bank, Fort Wayne 13 HOOSIER BANKER HERITAGE 14 BOARD OF DIRECTORS 2016 20 FLD WELCOMES NEW BOARD MEMBERS 30 STANDING TOGETHER FOR A STRONG INDUSTRY Robert S. Nichols,ABA 31 A DIGITAL DANGER Camden R. Fine, ICBA GR SPOTLIGHT 12 NEWYEAR’S RESOLUTION: ENGAGE IN GRASSROOTS Amber R.Van Til, IBA DIRECTORS / SENIOR MANAGEMENT 22 MUNICIPAL BONDS AND PENSION LIABILITIES: REPORTING CHANGES AHEAD Dana Sparkman,The Baker Group MARKETING / SALES 24 FOUR TIPS FOR BANKS TO WIN CONSUMER ‘MICRO-MOMENTS’ Andrew Bank, Larky PSP SHOWCASE 26 THE SHAZAM NETWORK: OWNED BY BANKS, OPERATED BY EXPERTS Rod Lasley, IBA EDUCATION ROUNDUP 34 IBA CO-HOSTS MIDWEST AGRICULTURAL BANKING SCHOOL Laurie Rees, IBA DEPARTMENTS 7 VIDEO BONUS 21 TAKING IT EASY 21 ANNIVERSARY MILESTONES 23 ASSOCIATE MEMBERS’ CORNER 27 HONORABLE MENTIONS 28 COMPLIANCE CONNECTION Brett J.Ashton, Krieg DeVault LLP 32 BANKING ON COMMUNITY 33 NEW BRANCHES, BUILDINGS & OPENINGS 35 BANKERS ON THE MOVE 34 ADVERTISERS INDEX Mike Head is president and chief executive officer of First Federal Savings Bank, Evansville. 1916 - 2016 YEARS
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 indianabankers.org 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 ........................................... Michael H. Head, First Federal Savings Bank, Evansville FirstVice Chairman ..................... Annette M. Russell, Security Federal Savings Bank, Logansport SecondVice Chairman ............................................ Clay W. Ewing, German American, Jasper Immediate Past Chairman .................................. Larry W. Myers, First Savings Bank, Clarksville 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 ...................... Kristin Marcuccilli, STAR Bank, Fort Wayne Non-Indiana Headquartered Bank Director ............... Tim Massey, BMO Harris Bank, Indianapolis Northeast Region Directors Gregory Maxwell, Farmers State Bank, Mentone Michael S. Zahn, First Federal Savings Bank, Huntington Michael C. Marhenke, iAB Financial Bank, Fort Wayne Northwest Region Directors Benjamin J. Bochnowski, Peoples Bank, Munster Arden L. Cramer, Logansport Savings Bank Vacancy Southeast Region Directors Archie M. Brown Jr., MainSource Financial Group Inc., Greensburg Dennis Wayman, State Bank of Medora George W. Ferriell, Bath State Bank Southwest Region Directors Matthew W. Howrey, North Salem State Bank Michael L. Baker, State Bank of Lizton, Brownsburg Kent L. Parisien, The First National Bank of Odon Future Leadership Division Board President - Kristin Marcuccilli, STAR Bank, Fort Wayne Vice President - Kirby Drey, Kentland Bank Emily Boardman, Crossroads Bank,Wabash Craig Buse, Springs Valley Bank & Trust Company, French Lick Jason Ernst, First Financial Bank, NA,Ter re Haute J. Daniel Maddox, Citizens State Bank, New Castle Andrew J. Saner, MainSource Bank, Greensburg Stephanie Schrage, Centier Bank, Northern Indiana Jeremy Siegle, Bank of Wolcott Lucas White,The Fountain Trust Company, Covington Billy Winter, Bippus State Bank, Huntington Melodie K.Yarnell, Jackson County Bank, Seymour 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
5 Hoosier Banker January 2016 FEATURE President’s Ponderings S. Joe DeHaven, President & Chief Executive Officer, Indiana Bankers Association In last month’s column, I wrote about the Indiana bicentennial celebration. I confessed that I did not know whether it was an anniversary or a birthday, but that a year-long celebration was fitting. By happy coincidence, this month your Indiana Bankers Association begins another year-long celebration. On Jan. 29, 1916, the first edition of Hoosier Banker was published. This magazine has continued to be published each and every month for the past 100 years. While there are many state bankers associations that publish magazines, some of them monthly, few can lay claim to having published every single month for the past 100 years. To commence the celebration, this month we introduce you to “Hoosier Banker Heritage” on page 13, featuring magazine snippets from 1916 through 1919. Each subsequent month through November we will cover another decade, culminating our commemoration in December with a special collector’s edition of Hoosier Banker. This year-long celebration of our flagship publication coincides with the bicentennial celebration of the state of Indiana. Just as Indiana has created a bicentennial logo, the IBA also has created a commemorative logo for Hoosier Banker, shown at left, to accompany historical features regarding the magazine’s centennial celebration. Let me start by sharing with you that, at the time that Hoosier Banker was first published, the president of the IBA board of directors was Frank Pitner, cashier of First National Bank in La Porte. In response to requests by readers, the February 1916 issue ran an article about Mr. Pitner. As evidence that things truly do not change as much as we may think, in this January 2016 issue we are featuring an article about 2016 IBA Chairman Mike Head, president and CEO of First Federal Savings Bank in Evansville. Following is the material about Mr. Pitner. Note that the year of his birth coincides with the end of the Civil War: Dear Editor: In compliance with your many requests, I am giving you a few facts about myself; born June 26, 1865, in La Porte and am here yet. Graduated from the city schools June 15, 1884, went to work in the First National Bank the next morning and am here yet. When I went into the bank, the deposits were less than $100,000 and they have kept on growing ever since ‒ in spite of me; the affiliated banks of which I am now Cashier, having approximately $2,250,000. Probably the most important thing that ever happened to me was in 1897, when I married Miss Lyle Hynes in Los Angeles, Cal. I had been corresponding with her since I was seventeen years old and have never stopped ‒ this may serve to illustrate my characteristic of persistence. Like most busy bank cashiers, I have had to be more or less identified with a great many of the town’s interests and find relaxation in such social service as acting on the boards of our Church, the Y.M.C.A. and similar organizations. Also for many years I have been Chairman of La Porte County Board of Children’s Guardians. I believe that this is much more than anybody outside of my own immediate family will be interested in, except possibly some political candidate, who might be glad to know that I am a Republican. With kindest regards, believe me, Very cordially, Frank J. Pitner As a charming postscript, Mr. Pitner added: “The farthest I have ever been away from good old Indiana was in the fall of 1910, when Mrs. Pitner and I made a tour through Europe.” It seems appropriate that we start our year-long journey with the assurance that the IBA’s president 100 years ago was humble, witty and humorous. He also was deeply involved in his community. The more things change, the more they stay the same, it seems. Please enjoy this year’s twin celebrations and journeys through history. Happy New Year! 1916 - 2016 YEARS The first Hoosier Banker was published on Jan. 29, 1916. Frank Pitner, First National Bank in La Porte, served as president of the Indiana Bankers Association in 1916.
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 Measuring Financial Conditions and Performance for Agricultural Business Jan. 14 - IBA Center Calculating Global Cash Flow Analysis the Proper Way Jan. 14 - IBA Center Branch Management Series: Session I, Managing a Successful Branch Jan. 19 - IBA Center Retail Banking Forum Jan. 20 - IBA Center BSA Graduate School Jan. 20-21 - IBA Center Risk Management Officer Forum Jan 21 - IBA Center Community Bankers for Compliance Series - Session I Feb. 8 - Courtyard by Marriott, Fort Wayne Feb. 9 - IBA Center Feb. 10 - IBA Center CRE Appraisals: Reviewing and Interpreting Feb. 11 - IBA Center CRE Cash Flow:Analyzing IncomeProducing or Rental Real Estate Feb. 12 - IBA Center Chief Financial Officer Forum Feb. 16 - Group 1 - IBA Center Feb. 19 - Group 2 - IBA Center Auditing Integrated Disclosures Feb. 17 - IBA Center Senior Lender Forum Feb. 17 - Group 1 - IBA Center Feb. 18 - Group 2 - IBA Center Call Report: Review and Update Feb. 18 - IBA Center IRA Basics Feb. 23 - IBA Center Marketing Directors Forum Feb. 23 - IBA Center Advanced IRA Review and Update Feb. 24 - IBA Center IT and Operations Officer Forum Feb. 25 - Group 1 - IBA Center Feb. 26 - Group 2 - IBA Center Training the Credit Analyst March 2-3 - IBA Center Residential Construction Lending March 8 - IBA Center How to Prepare and File Uniform Commercial Code Financial Statements March 9 - IBA Center Calculating and Maintaining the Allowance for Loan and Lease Losses, Including a Review of the Proposed CECL March 10 - IBA Center Writing Compliant Real Estate Evaluations Internally March 15 - IBA Center Indiana Deposit Account Administration March 15 - IBA Center March 16 - Fort Wayne Hotel Navigating and Understanding the Indiana Code for Compliance Professionals March 17 - IBA Center, Indianapolis Leadership Development Program - Session 1: It’s Simple, But It Isn’t Easy March 22-25 - Wooded Glen Retreat & Conference Center, Henryville TRID Essentials March 29 - IBA Center Trust Forum April 5 - IBA Center Social Media Bootcamp April 12-13 – Location TBD Certified Teller Program April 18-19 – Location TBD Branch Management Series: Session 2- Growing the Retail Bank April 19 – Location TBD Community Reinvestment Act April 19 – Location TBD Flood Insurance April 20 – Location TBD Certified Teller Program April 21-22 – Location TBD April 25-26 – Location TBD Lending Essentials April 25-26 – Location TBD Community Bankers for Compliance Series - Session 2 May 9 - Courtyard by Marriott, Fort Wayne May 10 – IBA Center May 11 – IBA Center Leadership Development Program - Session 2: Do SomethingThat Scares You May 11-13 – Wooded Glen Retreat & Conference Center, Henryville Senior Retail Banking Forum May 18 – IBA Center Risk Management Officer Forum May 19 – IBA Center Compliance for Loan Processors May 19 – Location TBD Commercial Lending School June 5-10 – IBA Center Chief Financial Officer Forum June 14 - Group 1 – IBA Center June 17 - Group 2 – IBA Center Senior Lender Forum June 15 - Group 1 – IBA Center June 16 - Group 2 – IBA Center Real Estate Lending Compliance June 15-16 - IBA Center IT & Operations Officer Forum June 23 - Group 1 – IBA Center June 24 - Group 2 – IBA Center Marketing Directors Forum June 28 – IBA Center BSA/AML Compliance School June 28-29 – IBA Center Auditing Regulation Z July 12 – IBA Center Analyzing Tax Returns in SelfEmployed and Small Business Situations July 13 – IBA Center Analyzing C & I Business Cash Flow July 14 – IBA Center Jan. 14 - Cyber Series: Maximizing Cybersecurity Soundness and Minimizing Incidents Jan. 20 - IRA and Health Savings Account Update and Review Jan. 21 - Adjustable-Rate Mortgage Rules Changes Effective April 1 Jan. 26 - Demystifying Rules for TRID Tolerances Jan. 27 - Completing the CTR, Line-by-Line Jan. 28 - Directors Series: Managing Reports to the Board - Requirements,Timing, Delivery Options, Risks and Concerns Feb. 2 - Denied Loan Requirements: Consumer, Commercial and Real Estate Feb. 3 - Dealing With ACH Tax Refunds: Exceptions, Posting and Liabilities Feb. 4 - HR Series: Managing and Administering Employee Compensation and Benefit Programs Feb. 9 - Medallion and Signature Guarantee Rules and Risks Feb. 11 - New Compliance Officer Boot Camp Feb. 17 - HVCRE Appraisal Review: Issues and Case Studies Feb. 18 - Audit Compliance Series: Overseeing Bank Performance - The Role of Audit Feb. 23 - Determining Cash Flow From Personal Tax Returns Part 1: Schedules A, B, C and D Feb. 25 - Understanding Personal Account Ownership and FDIC Rules March 1 - Telephone Consumer Protection Act:WhatYou Need to Know About the New Requirements March 3 - Required Compliance for Commercial Loans Secured by Real Estate March 8 - Director Series:What Directors Should Know About CECL,ALLL and New Credit Impairment Standards March 9 - Post EMV Card Liability Shift: Managing and Mitigating Card-Not-Present Fraud March 10 - SBA Lending Update: Regulations,Trends and Overview of SBA One March 15 - Emerging Leader Series: Developing Executive Presence Skills - Presentations, Poise and Professionalism March 16 - Determining Cash Flow From Personal Tax Returns Part 2: Schedules E and F March 17 - Flood Insurance Compliance Update and FAQs March 22 - Cyber Series: Outsourcing Tech Services: Regulations, Examiner Expectations and Actions for Vendor Management March 24 - DevelopingYour Same-Day ACH Game Plan March 29 - Debt Collection Series:Your Customer Has Filed Bankruptcy - Now What? March 30 - Hot Topics in Social Media Strategies:Techniques and Trends for Community Banks March 30 - Hot Topics in Social Media Strategies:Techniques & Trends for Community Banks 6 Hoosier Banker January 2016
7 Hoosier Banker January 2016 ASSOCIATION UPDATE Video Bonus As chief operating officer at STAR Bank, headquartered in Fort Wayne, I proudly wear many hats. My position encompasses information technology, marketing, branch operations, loan and deposit administration, systems administration, electronic banking and trust operations. The most rewarding part of my job is the community of people I work alongside in our Service Center. About 160 of our 500 employees are here, giving me the chance to work with a vibrant and dynamic team every day. Home to the majority of STAR’s support teams, the Service Center has an open floor plan, which underscores our emphasis on teamwork, communication and innovation. The Service Center was redesigned in 2014 to foster an environment of collaboration, creativity and communication. Our open layout gives people the chance to coach each other and share ideas, celebrate success and align with our core values of honesty, integrity, accountability and doing what’s right. We also value being progressive, which we demonstrate through our commitment to technology and its application to the financial services industry. We have a friendly, ongoing debate: Are we a technology company that provides financial services, or a financial services company with incredible technology? At the end of the day, we work to provide the best financial services across multiple delivery channels, and our offerings are both customer-centric and community-centric. We often think like a technology firm and hold to the values of a community bank. I hadn’t always planned to be a banker. Growing up, I was going to become an orthopedic surgeon, mixing my interest in medicine with my sports background. (Among other athletics, I was a placekicker for the Marion High School football team.) Though I studied pre-med and psychology through all four undergrad years at the University of Notre Dame, I also had the unique opportunity to work in the football office. I discovered that I loved the business environment. Following graduation, I continued in business with a fulltime position in the Notre Dame football office, focusing on operations, recruiting and player development. That’s when I became impassioned about operations ‒ my personality synced well with process-oriented thinking, detail orientation and making things work. To take my business interest to the next level, I moved to Indianapolis to earn an MBA from the Indiana University Kelley School of Business. While I was working on my master’s in the evenings, I worked in administration with Peyton Manning Children’s Hospital. It was basically hospital-style operations, working with the administrative staff and doing some quality control. I enjoyed the work, but eventually wanted something more challenging. Though I often considered returning to athletics administration, my curiosity of working with family in a challenging and rewarding industry ultimately fueled my interest to explore an opportunity with STAR Bank. Some family background: My father, James C. Marcuccilli, is president and chief executive officer of STAR Bank. Essentially the bank was founded in 1943 by two families ‒ the Marcuccillis and the Wrights. Both families remain part of this institution today, three and four generations later. For a banking family tradition, a person couldn’t ask for a better relationship than the collaboration, trust and dedication between the Wright and Marcuccilli families. Along with this legacy, though, there are very firm expectations to deliver results. We all have to earn our keep here; there’s no free pass. My introduction to STAR in 2008 was through retail delivery and electronic banking as a project manager. Now, eight years later, I’m grateful to be part of the Indiana banking community. I also appreciate IBA’s Future Leadership Division. The FLD brings opportunities in education, advocacy and networking to me and to other emerging bank leaders. It also gives a voice to future leaders, especially at the IBA Annual Washington Trip and the FLD Day at the Statehouse. We’re excited to be presenting the second annual Day at the Statehouse next month, and I am thrilled, and honored, to serve the FLD as president. Today’s FLD membership is made up of more than 120 passionate and energetic leaders. There is a tremendous opportunity for us to grow and thrive as community bankers across the state of Indiana, working to uphold the outstanding reputation of the IBA. Collaboration, communication and camaraderie – the same ingredients that have guided the growth and success of Indiana community bankers for many years – will be key to our success. In all of these areas of my life ‒ STAR Bank, the Indiana Bankers Association and Future Leadership Division, and at home with family ‒ there is amazing team spirit and collaboration. I am fortunate to be part of so many winning teams. Board Review Kristin Marcuccilli, IBA Future Leadership Division President STAR Bank, Fort Wayne Kristin Marcuccilli, STAR Bank, Fort Wayne, and Dax Denton, Indiana Bankers Association, share on-camera insights in: “IBA Future Leadership Division: Opportunities for Emerging Bank Leaders.” View the video by clicking on the red arrow in Hoosier Banker Digital at indianabankers.org.
8 Hoosier Banker January 2016 Head has been with First Federal Savings Bank since graduating from the University of Southern Indiana in 1980 with a degree in finance and economics. He later earned an MBA from the University of Evansville, while advancing through the ranks to the position of president in 2000 and to president and CEO in 2004. In the community, Head has served as a board member of the University of Southern Indiana (USI) Foundation, on the advisory board of the USI Romain School of Sports analogies come easily to Michael H. Head, 57, president and chief executive officer of First Federal Savings Bank, Evansville, and 2016 chairman of the Indiana Bankers Association. With a football player’s build and a penchant for simplifying the complex, he summarizes the business of banking in sportsman’s terms: “It’s very simple blocking and tackling. We make loans to people that we think are good credit risks and all we ask is that we get paid back.” COVER STORY Mike Head joined First Federal Savings Bank in 1980 as a messenger. Business, and has been active with Habitat for Humanity of Evansville and the St. Mary’s Medical Center Foundation. He also is a member of the Independent Community Bankers of America lending committee and has served on the IBA board of directors as first vice chairman, second vice chairman and southwest region director. Hoosier Banker interviewed Mike Head in recent months about his chairmanship goals and banking insights. What are your responsibilities as president and chief executive officer of First Federal Savings Bank, Evansville? “My job is to lead and coordinate the efforts of the bank. I’m like the quarterback on a football team. The quarterback isn’t always the most talented, but it’s the quarterback’s job to keep everybody lined up and moving in the same direction. “We have top talent at First Federal Savings Bank, and a well-seasoned group of employees. Five of our department heads have been in banking for 30 years or longer.” What are your goals as 2016 chairman of the Indiana Bankers Association? “I have two main goals. The first is to continue to build on banker involvement in government Mike Head: Banking Quarterback
9 Hoosier Banker January 2016 Continued on page 10. relations. When a call to action goes out for industry comment on a regulatory issue or a vote, whether in Indianapolis or Washington DC, there should be at least 250 responses from Indiana bankers and directors alone. “That goal includes growing the number of bankers who attend the IBA Annual Washington Trip. When I started going on the trip about six years ago, we’d have 12 or 13 bankers attend. Now, under the leadership of past chairmen Dave Heeter and Larry Myers, the trip has grown to 50+ bankers. I’d like to grow that number to 75 to 80 bankers, so that when we show up in Washington, people will know that Indiana community bankers mean business. “My second goal is to grow Indiana BANKPAC by 50 percent. For example, I would ask anyone who usually writes a check for $200 to please consider a $300 donation this year. The PAC is an important means for us to express banking views. “Politicians need to understand that community banking is the foundation of our cities and towns, and that federal government regulations cost valuable time and money, while generating no revenue. Indiana BANKPAC is extremely important in delivering these messages.” Why do you choose to be so active with the IBA? “The Association is the perfect vehicle to deal with the regulatory environment. With IBA staff ‒ Amber Van Til and Dax Denton at the state level, and Joe DeHaven having access to both the Independent Community Bankers of America and American Bankers Association ‒ we can get things done. “Our grassroots support also helps. It’s one thing if I individually call on a U.S. representative, but that representative will take extra notice after receiving hundreds of letters from the banking community. I’ve had legislators call me to say, ‘I’m getting a lot of correspondence. Please explain this issue to me.’” The First Federal vision statement indicates a goal of reaching a specific range of assets within three years. How does this precise vision guide your bank? “We are deliberate in our vision, because we recognize that we have a niche, which was created by the growth of larger competitors. We’re large enough to be healthy, but small enough to keep the personal touch. “We’re at $400 million in assets. At that size, if a commercial customer with a $200,000 line of credit calls and asks me to come visit to review a project, I can say, ‘We’ll be right over.’ I’m a hands-on person, and I like being able to see and work directly with our small business customers. “The Evansville Courier & Press described us as the ‘biggest of the little guys.’ First Federal Savings Bank is the fourth largest bank in town, but the next size up is quite a bit larger. So we’re the biggest of the little. “A few months ago, we ran a radio ad campaign that said, ‘If you need to talk to the president, just pick up the phone and call.’ After that ad ran, about a dozen people called my office. When I answered the phone, they’d be surprised and say, ‘You really do answer the phone.’” First Federal Savings Bank was founded in 1904. What accounts for your longevity? “We have always been extremely conservative. We were founded by several area businessmen, including George W. Koch, who was the oldest son of George Koch, founder of George Koch Sons Inc. Mr. Koch was our first president, serving from our opening in October 1904 through all of 1961. “Originally the bank was named the West Side Building Loan and Savings Association. In 1934, when federal banking charters were available, we literally became the first federally chartered savings and loan association in Evansville. That’s how we got our name of ‘First Federal Savings and Loan Association. In 1998 the name was changed to First Federal Savings Bank.’ Susie and Mike Head attend the Chairman’s Banquet at the 2015 IBA Annual Convention in French Lick. The corporate office of First Federal Savings Bank is located at 5001 Davis Lant Dr., Evansville.
10 Hoosier Banker January 2016 Continued from page 9. Hoosier Banker and other IBA items are on display in the office of Mike Head. “Part of our longevity is that we’ve been consistent in our leadership. In more than 111 years, I’m only the sixth president to serve.” What drew you to banking as a career? “In high school I had planned to go to Purdue University to become a pharmacist. I was the oldest of five kids, and my father said he could make it work. “But there was a lovely young lady involved, named Susan Worthington. She and I began dating when I was a senior at Reitz High School, and she was a junior at North High School. “I knew how hard my dad would have to work to put me through school, and I also knew I didn’t want to be so far away from Susan. So I went to Indiana State University at Evansville (now the University of Southern Indiana) and studied accounting, because that’s what Susan was going to study. It turns out I enjoyed finance and economics, considerably more than accounting. “Throughout my freshman year, I worked part-time in a tool and die shop to pay for school. At the end of my freshman year, my part-time job was no longer available, and Susan suggested I ask her father if he had any openings. “Susan’s father was C. Wayne Worthington. He was president of National City Bank (NCB) and chairman of the IBA. I was nervous, but I asked if he had any positions open. He asked me a couple of questions, then said, ‘Well, let me see.’ “Within a couple weeks and after several interviews, I was hired. My official title was messenger at the mail desk, but really I was a gopher – ‘go for’ this and ‘go for’ that. I would go to the post office early each morning, sort the mail, then deliver it to each department. I also would pick up interoffice mail and bring it to the mailroom. “Three times a day, I would distribute mail and supplies to the eight Evansville branches, then pick up the proof ‒ cashed checks ‒ and return to the main office. At the end of each month, I’d help deliver the commercial checking account statements to the downtown merchants. “Looking back, it was the best job for me, because it gave me the chance to meet every employee in each of the departments, at all of the branches. Other than HR, I was probably the only person who knew everybody in the bank.” How did your career develop? “At the end of the first year at NCB, I transferred to the all-night shift in the data processing department, where we processed the daily proof of NCB and 22 area correspondent banks on a brand new 1977 Honeywell operating system. “I’d report to work at 5 in the afternoon, in time for the checks to be dropped off around 5:30 p.m. By 6 a.m. the next morning, everything had to be done ‒ sorted, entered and balanced. I worked three nights a week, plus a couple of Saturdays each month. “During summer school of my junior year, I’d go to sleep on Sunday night, then get up and go to school on Monday from 8 a.m. to 1 p.m. After classes I’d have library time, then I’d go to the bank at 5 that evening and work through the night until 6:30 the next morning. By Tuesday morning, I was going to classes on Sunday night’s sleep. “Upon college graduation in May of 1980, Susan and I were engaged to be married, and my soon-to-be father-in-law informed me that it would be in my best interest to leave the bank. If I wanted to succeed, he said, I’d have to earn it myself. “Soon after I interviewed with Harold Duncan, executive vice president of First Federal Savings and Loan Association. He took a chance and hired me as a management trainee, starting July 14, 1980. Family photos and memorabilia line the window sill in Mike Head’s office.
11 Hoosier Banker January 2016 I spent my first six months behind the teller counter at the Franklin Street corporate headquarters, to learn firsthand what the employees did. “Then I spent three years as assistant manager and three years as manager, which was a lot of fun, especially when we’d close mortgage loans and the customers would get the keys to their new homes. That was the best part. “Following were 10 years as head of the loan department and then, in 1997, I was promoted to executive vice president and chief operating officer for three years. In 2000 I was elected president and chief operating office. In July 2004, I was elected president and CEO. “First Federal Savings Bank is the only post-college job I ever had. My father-in-law was right, because everything worked out.” What is it like to be with the same institution for so many years? “It’s kind of like watching your child grow up. The bank has gone from being small and limited to what we are now. “When I started in 1980, we had three offices and about $74 million in assets. Our only transactions were taking first mortgage and home improvement loan applications, plus we had passbook savings and certificates of deposit. “In April 1999 we went public with a stock issuance, and in 2000 we reached $175 million in assets. Since then, we have grown from four offices to nine, and from $175 million to $400 million in assets. We now offer every service available, except that we don’t have a trust department. “We’ve had great leadership through the years from a lot of good and dedicated employees, including our long-serving board. It makes it much easier to have experienced people surrounding you.” Please describe your home life/ pastimes. “Susan and I have been married for 35 years, and we have lived in our home on Oak Hill Road for 34 years. Susan is a partner in an Evansvillebased public accounting firm, and she has been a practicing CPA for 34 years. We have two grown children: Christopher, 28, and Laura, 26, who both reside in Evansville. “Christopher works here at First Federal as a vice president in the commercial loan department. He started his career with Home Bank, Martinsville, while his wife, Kristen, finished her law degree. She’s now an attorney in Evansville. “Our daughter Laura is a certified fitness trainer and deep muscle massage therapist. “Swimming has been a major activity for our family. It began when Christopher took an ‘unauthorized plunge’ in the backyard swimming pool at the age of 2. The next week he was enrolled in the University of Evansville swim tots program and, within a year, he was jumping off the high dive. “Laura was determined not to be left behind by her brother, so she was in the water from Day One. By the time they were the ages of 6 and 4, Christopher was swimming competitive races, and Laura was swimming across the deep well for ribbons. Both grew up swimming, and we enjoyed traveling the Midwest for them. “While they were students at Indiana University, Christopher and Laura swam all four years, and IU’s men’s and women’s teams were both consistently ranked in the top 10 in the country. Their senior years, Christopher was elected a team captain by his peers, and Laura won the 2012 Hoosier Award and the 2012 Big Ten Conference Sportsmanship award for Indiana.” Who are the main influences in your life? Vintage mechanical banks were a gift from C.Wayne Worthington, Mike Head’s late father-in-law, who also was a bank president and served IBA in its top leadership role. “The first big influence in my life was my father. He was the primary breadwinner in my family. I watched how hard he worked to provide for five kids, and yet we never wanted for anything growing up. For three years, he coached two baseball teams involving myself and two younger brothers, never missing a practice or a game, while at the same time working 3rd shift at Keller Crescent. My mother drove the ‘kid taxi’ from the baseball park to the swimming pool. “My other big influence was Susan’s dad, as more of a business role model. He was in the bank at 5 a.m. every day, regardless if there was a foot of snow on the ground, or if it was 100 degrees outside. He ran the bank, he was active in the community, and he was always there for his family. When I accepted the IBA chairman’s gavel last fall, it was an honor to receive it in the same French Lick hotel where my father-in-law had accepted it in 1979. “Both my father and my father-inlaw taught me the old-school value of hard work.” What advice would you offer to young bankers beginning their careers? “First, read everything available related to this industry, because it’s so vast. Second, be the first one in the office every morning, and be the last one out every day.” t
12 Hoosier Banker January 2016 GR SPOTLIGHT The New Year is upon us, and schedules are filling fast for busy banking professionals. The demands of running profitable institutions are intensified by regulatory compliance, security issues, and the many-faceted needs of the communities that banks serve. Why, then, would bankers devote additional resources to grassroots advocacy? The answer is that grassroots advocacy is an investment. The investment is time and effort, and the return is helping to sustain an environment in which banks can succeed, as stated in the Indiana Bankers Association mission.* Without advocacy, a banker’s life can become more challenging overnight with the legislative stroke of a pen. Your IBA Government Relations Team is geared up and ready for the upcoming Indiana legislative session. We will be active day and night for the next three months of this short session, but our efforts are most effective when combined with your grassroots efforts. Lawmakers listen when constituents speak. Additionally, as public servants, they are especially attuned to the voices of those who likewise work in service to others, and they welcome hearing from you. At this start of this fresh New Year, please pull out your calendar to see how you can engage in the legislative process. The IBA offers several opportunities: • Legislative Briefing and Reception, Jan. 19, Westin Indianapolis – The IBA hosts this popular event at the start of each legislative session. The purpose is two-fold: to brief IBA members on topics on the upcoming legislative agenda, and to give members a chance to meet face-to-face with elected officials. About 200 bankers and legislators are expected to attend this year’s event, and we have room for more, if you have not yet registered. • FLD Day at the Statehouse, Feb. 9, Hilton Indianapolis Hotel ‒ Inaugurated last year by IBA’s Future Leadership Division, this event helps emerging bank leaders throughout the state learn the basics of lobbying, with interactive presentations from Indiana elected officials and the IBA GR Team. After briefings and a networking lunch, attendees put insight into action by walking to the Statehouse to observe proceedings and to visit with elected officials. Last year about 50 participants attended, and in December the event won a statewide award as Outstanding Individual Program/Event by the Indiana Society of Association Executives. • IBA Regional Meetings, summer 2016 – Held during summer months in multiple locations, IBA’s annual round of Regional Meetings brings IBA members and legislators together in localized settings for relaxed, small-setting networking. Each Regional Meeting begins with a briefing for IBA members by the GR Team, including a summary of the previous year’s legislative session and an advance look at forthcoming issues. Following the briefing, area legislators join with bankers for a mix-and-mingle luncheon. • IBA Annual Washington Trip, Sept. 25-27, Washington, D.C. – This hallmark event takes the Indiana banking community to our nation’s capital for meetings with regulatory agencies, the American Bankers Association and Independent Community Bankers of America, and the Indiana congressional delegation. Last year’s trip attendance was at an all-time high of 88 attendees, 57 of whom were bankers. As IBA Chairman Mike Head summarized on page 9 of this issue, this strong showing demonstrated loud and clear that “Indiana community bankers mean business.” For the year ahead, please consider how you can resolve to engage in grassroots advocacy in support of your industry. In addition to the events above, we urge members to stay informed through IBA E-News, Voter Voice, the IBA website at indianabankers.org, and by subscribing to the IBA Insighter. For more information about any of these offerings, please contact Josh Myers at 317-9178047, email: jmyers@indianabankers. org. t New Year’s Resolution: Engage in Grassroots About the Author Amber R. Van Til, JD, is executive vice president of the Indiana Bankers Association. She can be reached at 317-917-8047, email: avantil@indianabankers.org. * The mission of the Indiana Bankers Association is: “To advocate for and sustain an environment in which banks can succeed.”
13 Hoosier Banker January 2016 Celebrating 100 Years of Publication The year 2016 marks two milestones for the Indiana banking community. This year is the 200th anniversary of Indiana statehood. In partnership with the Indiana Bicentennial Commission, the Indiana Bankers Association has been named the presenting sponsor of a newly minted Indiana bicentennial medal. Coincidentally, 2016 also marks the 100th anniversary of Hoosier Banker magazine, IBA’s flagship publication. When Hoosier Banker went into circulation in 1916, print was the primary means of mass communication. The heyday of television was decades away, and the Internet and social media were beyond anyone’s vision. Even radio would not come into play in Indiana until 1922, when Purdue University’s station WBAA obtained a broadcasting license. For information, then, newspapers reigned as the fastest, most economical form of print, but magazines were also valued for their “timely” presentation of in-depth news. To celebrate the history of Hoosier Banker and its link to IBAmember banks, each issue of Hoosier Banker in 2016 will feature “Hoosier Banker Heritage” – bits and snippets of the magazine’s history, decade by decade. This January edition celebrate years 1916-19; February will feature 1920-29, etc. The year will culminate with a collectors-edition Hoosier Banker in December. t 1916 - 2016 YEARS HOOSIER BANKER HERITAGE The July 1916 Hoosier Banker table of contents references the IBA’s sponsorship of the newly minted Indiana centennial medal. Inside the magazine, a brief filler piece promoted the project as:“No more pleasing or appropriate token of the great event could be preserved for handing down to future generations than this medal, and it is hoped every family in the state will avail itself of the opportunity to possess one.” (Left) A rare color image accompanied a poem in the April 1917 issue of Hoosier Banker, heralding the United States’ entry into World War I. (Right) A selling agent based in Dayton, Ohio, ran an advertisement in the July 2018 Hoosier Banker to promote a Safe-Guard check writer for sale.The asking price was $45, of which $10 would be accepted in war savings stamps. (Left) The August 1918 Hoosier Banker presented the entertainment committee, charged with planning the entertainment of the upcoming IBA Annual Convention in September.
14 Hoosier Banker January 2016 Southeast Region Archie M. Brown Jr. MainSource Financial Group Inc., Greensburg BOARD OF DIRECTORS 2016 IBA Officers President & Chief Executive Officer S. Joe DeHaven Indiana Bankers Association, Indianapolis Chairman Michael H. Head First Federal Savings Bank, Evansville First Vice Chairman Annette M. Russell Security Federal Savings Bank, Logansport Regional Directors ABA Membership Council Michael K. Bauer Your Community Bank, New Albany Future Leadership Division President Kristin Marcuccilli STAR Bank, Fort Wayne Non-Indiana Headquartered Bank Director Tim Massey BMO Harris Bank, Indianapolis Northeast Region Gregory Maxwell Farmers State Bank, Mentone Northwest Region Arden L. Cramer Logansport Savings Bank Southwest Region Michael L. Baker State Bank of Lizton, Brownsburg Southwest Region Kent L. Parisien The First National Bank of Odon Southeast Region Dennis Wayman State Bank of Medora ICBA Sate Director David M. Geis Jackson County Bank, Seymour Northeast Region Michael C. Marhenke iAB Financial Bank, Fort Wayne Northwest Region Benjamin J. Bochnowski Peoples Bank, Munster Southeast Region George W. Ferriell Bath State Bank Northeast Region Michael S. Zahn First Federal Savings Bank, Huntington Southwest Region Matthew W. Howrey North Salem State Bank Constituent Directors Second Vice Chairman Clay W. Ewing German American Jasper Immediate Past Chairman Larry W. Myers First Savings Bank, Clarksville
15 Hoosier Banker January 2016 Continued on page 16. IBA Presents 2016 Board of Directors The activities of the Indiana Bankers Association operate under the guidance of the Association’s board of directors. Acting as governing body of the IBA, the board consists of 21 members: three elected officers, one past chairman, the Association president/CEO, two representatives of national associations, the Future Leadership Division president, a non-Indiana headquartered bank director and 12 representatives from four IBA geographical regions. At present there are 20 board members, due to a vacancy in the northwest region; the vacancy is to be filled shortly. The functions of the board are to develop IBA policy and to establish long-range goals and objectives. The board also helps determine IBA’s legislative programs and positions on issues affecting the banking community. The IBA board acts with the same authority as the board of a bank or a corporation. An executive committee — composed of the chairman, first and second vice chairmen, immediate past chairman, Association president/ CEO and two appointed directors — is authorized to act in lieu of the board between regular board meetings. Officers serve one-year terms and are elected by the entire membership at the IBA Annual Convention. Members of the 2016 board assumed their positions on Jan. 1. Directors are listed by the capacities in which they serve. Officers Michael H. Head, IBA chairman of the board, is president, chief executive officer and a director of First Federal Savings Bank, Evansville, which he joined in 1980. He has served as a board member of the University of Southern Indiana (USI) Foundation, Deaconess Health System and Habitat for Humanity of Evansville. Head currently is serving on the advisory board of the USI Romain School of Business, the West Side Professional and Business Association and Treasurer of the St. Mary’s Medical Center Foundation Board. He also serves as a member of the Independent Community Bankers of America lending committee, and he has served on the IBA board as first vice chairman, second vice chairman and as a southwest region director. Head earned a bachelor’s degree from the University of Southern Indiana and an MBA from the University of Evansville. Annette M. Russell, first vice chairman, is president and chief executive officer of Security Federal Savings Bank, Logansport. She joined the bank in 1991. A certified public accountant, Russell is a graduate of Indiana University-Kokomo, of the Graduate School of Bank Investments and Financial Management and of the Stonier Graduate School of Banking. She serves on the board of trustees of Logansport Memorial Hospital and on the American Bankers Association Community Bankers Council. Past involvement includes service as campaign chair for United Way; as chair of the Logansport/ Cass County Economic Development Corp.; on the Reading Railroad advisory board; and on the boards of directors of the Cass County Chamber of Commerce and Special Olympics of Cass County. Additionally she had prior service on the IBA board as second vice chairman and northwest region director. Russell was granted the Indiana University Kokomo Alumni Association’s Distinguished Alumni Award in 2006, was inducted into the IU Kokomo Alumni Hall of Fame in 2013, was named Chamber of Commerce Business Woman of the Year for 2007-08 and completed the IBA Leadership Development Program in 2013. She has been honored twice by NorthWestern Financial Review magazine ‒ as a Rising Star in Banking in 2010 and as an Outstanding Woman in Banking in 2014. Clay W. Ewing, second vice chairman, is president of German American, Jasper. He has more than 35 years of banking experience and joined German American in 1994 as president and chief executive officer of a subsidiary bank of the company. Ewing is active in regional economic development and currently serves as chairman of the Perry County Development Corp. and as a board member of the Economic Development Coalition of Southwest Indiana. He additionally serves on various other civic and community boards and has served the IBA as southwest region director. Ewing is a graduate of Lockyear College and of The School for Bank Administration at the University of Wisconsin. Larry W. Myers, immediate past chairman, is president and chief executive officer of First Savings Bank, Clarksville. He additionally serves on the bank’s board of directors and as president of the First Savings Charitable Foundation. Myers joined First Savings Bank in 2005 as chief operating officer and was named to his current position in 2006. He previously served since 1982 with National City Bank, most recently as area president of Southern Indiana. Myers is a member of the St. Louis Federal Reserve Community Depository Institutions Advisory Council and has served the American Bankers Association on the Community Bank Council and Mutual Council. He is past chairman of the Lincoln Heritage Council of Boy Scouts of America and is active with the One Southern Indiana-Chamber of Commerce. A certified trust financial adviser, Myers earned bachelor’s and MBA degrees from the University of Kentucky, has completed the Graduate School of Banking of the South and the Cannon Trust School, and holds Series 7 and Series 66 licenses. He has served the IBA as chairman, first vice chairman, second vice chairman and southeast region director. S. Joe DeHaven, IBA president and chief executive officer, joined the Association as president and chief operating officer in 2006, as a result of the merger of the Association with the Community Bankers Association of Indiana (CBAI). In 2007 he was promoted to president and chief executive officer. DeHaven previously served CBAI as president and CEO from 1990 through the 2006 merger. He has prior experience as an executive officer of Merchants National Bank of Muncie - now First Merchants Bank, NA. He is a member and past chairman of the board of trustees of the Graduate School of Banking at the University of Wisconsin; member and past chairman of the board of trustees of the Herbert V. Prochnow Educational Foundation; member of the New Markets Tax Credit Advisory Board of the Cinnaire Corporation Fund for Housing; assistant treasurer and board member of the Indiana Legal Foundation; member of the advisory council of Friends of Traditional Banking; and member of the administrative committee of the State
indiana.bankRkJQdWJsaXNoZXIy MTg3NDExNQ==