Annette RUSSELL Leading as IBA chair PLUS! Amber Van Til: Giving voice to banking MARCH / APRIL 2017 HB HOOSIER BANKER MAGAZINE indianabankers.org
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4 MARCH / APRIL 2017 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: n Maintain the highest ethics, integrity and respect for others; n Serve with professionalism, innovation and resourcefulness; n Instill passion, positive attitude and enthusiasm; n Remain mindful that the success of the IBA is judged by the success of its members. View HB Digital at indianabankers.org. Publication Disclaimer Hoosier Banker (ISSN 0018 473X) is published bimonthly 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 or on the IBA website is the property of the Indiana Bankers Association. HB DIRECTORS & STAFF IBA BOARD OF DIRECTORS IBA Officers Chair ..................................................Annette M. Russell, Security Federal Savings Bank, Logansport First Vice Chair ................................................ Clay W. Ewing, German American Bancorp Inc., Jasper Second Vice Chair ..........................................................................Andrew J. Briggs, Bank of Geneva Immediate Past Chair .....................................Michael H. Head, First Federal Savings Bank, Evansville President and Chief Executive Officer ....................Amber R. Van Til, JD, Indiana Bankers Association Constituent Directors ICBA State Director................................................David M. Geis, Jackson County Bank, Seymour ABA Membership Council.................................... Michael K. Bauer, WesBanco 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 Jeffrey W. Gump ..................................................................Farmers and Merchants Bank, Laotto Michael C. Marhenke ....................................................................iAB Financial Bank, Fort Wayne Michael S. Zahn ................................................................First Federal Savings Bank, Huntington Northwest Region Directors Benjamin J. Bochnowski ...........................................................................Peoples Bank, Munster Joseph D. Carlson ................................................................Community State Bank, Royal Center Arden L. Cramer ....................................................................................Logansport Savings Bank Southeast Region Directors Archie M. Brown Jr. .......................................................MainSource Financial Group, Greensburg George W. Ferriell ................................................................................................Bath State Bank Dennis Wayman ..........................................................................................State Bank of Medora Southwest Region Directors Michael L. Baker ...........................................................................................State Bank of Lizton Matthew W. Howrey .................................................................................North Salem State Bank Kent L. Parisien ..........................................................................The First National Bank of Odon FUTURE LEADERSHIP DIVISION BOARD Kristin Marcuccilli, President.................................................................... STAR Bank, Fort Wayne Kirby Drey, Vice President ......................................................................................Kentland Bank Emily Boardman ...................................................................................Crossroads Bank, Wabash Craig Buse .......................................................Springs Valley Bank & Trust Company, French Lick Michael J. Clampitt ..................................................................................North Salem State Bank Jason L. Ernst ...................................................................... First Financial Bank, NA, Terre Haute Ryan Hart .................................................................................................Lake City Bank, Warsaw J. Daniel Maddox ........................................................................ Citizens State Bank, New Castle Jon-Myckle D. Price ....................................................Security Federal Savings Bank, Logansport Andrew J. Saner.............................................................................MainSource Bank, Greensburg 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 and Chief Executive Officer ................................................................. Amber R. Van Til, JD Executive Vice President ..................................................................................Paul W. Freeman, CAE Senior Vice President - Government Relations....................................................................Dax Denton Vice President - Meetings & Events............................................................Christina M. Bennett, CMP Vice President - Products & Services ................................................................................. Rod Lasley Vice President - Education & Training............................................................................Laurie A. Rees Vice President - Communications ................................................................................... Laura Wilson Assistant Vice President - Government Relations ..................................................... Erika L. Hall, Esq. 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 Kubly 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: HB@indianabankers.org
Hoosier Banker 5 CONTENTS Vol. 101 No. 2 6925 Parkdale Place Indianapolis IN 46254-4673 Phone: 317-387-9380 Fax: 317-387-9374 Twitter: @indianabankers Publisher: Amber R. Van Til, JD Editor: Laura Wilson Advertising: Rod Lasley Submit materials to: HB@indianabankers.org Copy deadline: First of the month preceding publication. Advertising: Rates available at indianabankers.org. Advertisers should reserve space by the 10th day of the month preceding publication, and submit artwork by the 15th of the month preceding. 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 to members and associate members of the Indiana Bankers Association. Public access to HB Digital is available at indianabankers.org. HOOSIER BANKER MAGAZINE indianabankers.org Annette M. Russell, Security Federal Savings Bank, Logansport, is 2017 chair of the Indiana Bankers Association. COVER STORY 8 Annette Russell: Leading as IBA chair ARTICLE SPOTLIGHT 14 Amber Van Til: Giving voice to banking FEATURES 6 Vantage Viewpoints Amber R. Van Til, IBA 7 IBA Calendar of Events 24 State Deposits in Indiana Financial Institutions 33 The Regulatory Feedback Initiative Donald J. Musso, FinPro Inc. 40 Changes Coming Diane M. Zimmerman, Baden Gage & Schroeder LLC 51 Bankruptcy Math Susan E. Trent, Rothberg Logan & Warsco LLP GR SUMMIT 19 IBA Hosts Successful Legislative Briefing and Reception Dax Denton, IBA COMPLIANCE CONNECTION 22 Check Fraud Brett J. Ashton, Krieg DeVault LLP HUMAN RESOURCES 26 Beware of Antitrust Risks Debra A. Mastrian, SmithAmundsen LLC PSP SHOWCASE 28 Managing Interest Rate Risk Rod Lasley, IBA PRODUCTS & SERVICES PROFILE 30 Employers Take Heart Stephen James, IBA Group Insurance Trust DIRECTORS / SENIOR MANAGEMENT 36 Understanding the Tax Treatment Dana Sparkman, The Baker Group SECURITY / FRAUD 42 Cyber Fraud Prevention Jonathan Biggs, Investors Title Insurance Company 50 Threat Assessment Mike Burke, The SHAZAM Network SALES / MARKETING 46 Trust-Based Selling Jack Hubbard, St. Meyer & Hubbard 52 You Want to Grow? Achim Griesel, Haberfeld Associates DEPARTMENTS 17 Honorable Mentions 23 Anniversary Milestones 31 IBA Employee of the Month 35 In Memory of 38 Taking It Easy 38 Banking Center Update 44 Associate Members’ Corner 49 Banking on Community 53 From the Board Room 55 Bankers on the Move 62 Advertisers Index
6 MARCH / APRIL 2017 Since 2006, more than 1,500 banks nationwide have failed, have been acquired or have been merged out of existence. In Indiana, since the 2007 enactment of the Dodd-Frank Act, 53 banks were lost to mergers and acquisitions. That represents more than a 33 percent reduction in the number of Indiana banks in less than a decade. This data is astounding and unacceptable! Banks of all sizes operate under the same mission: to help ensure and promote financial security and growth for both the customers and the communities they serve. Unfortunately, government-created regulatory overburden has too often restricted the industry’s ability to do what it does best ‒ that is, to help America and Americans thrive. Banks power economic growth by assisting businesses in creating jobs, by investing in local communities, and by facilitating the American dream of homeownership and small business ownership. Data doesn’t lie (with the apparent exception of political polling). America needs the support of a banking industry that is allowed to fulfill its mission by enabling pro-growth policies. An America without strong banking support is an America that cannot reach its full potential. This isn’t a new phenomenon. Bankers across Indiana and the nation have known this truth for a long time. I have had the great privilege to accompany Indiana bankers to visit Capitol Hill many times during the last 15 years. Within the last 10 years, those visits to the Hill have been frustrating. Over and over, our bankers have taken time from their schedules to meet in congressional offices and plead with members of our delegation regarding the need for regulatory reform, for a level playing field with other financial services providers, and for the government to reverse laws aimed at price-fixing and picking winners/losers in the free market. We have engaged with regulators whose primary focus seemed to be to punish broadly, without evidence of wrongdoing. Yet we persevered. IBA bankers came back to the Hill every year, with a bigger group each time we visited. I am pleased to report that our persistence has paid off. The message has been received, and the time for reform is now upon us. President Donald Trump has signed an executive order requesting reform of the Dodd-Frank Act. In the executive order, President Trump instructed the Department of the Treasury to work with the members of the Financial Stability Oversight Council to create a report with recommendations on the rollback of Dodd-Frank. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) has reintroduced the Financial CHOICE Act, a comprehensive regulatory reform package including, but not limited to, tiered regulation and the very important repeal of the Durbin Amendment. Additionally, there is much discussion within the new administration, Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org Twitter: @grbanker VANTAGE VIEWPOINTS as well as on Capitol Hill, regarding the best method for scaling back or eliminating the Consumer Financial Protection Bureau. A recent court decision, PHH Mortgage v. CFPB, stated that the president may now fire the CFPB director at will. Reform is within reach, but to be successful we will need all hands on deck. IBA-member grassroots engagement is highly critical to the success of this promising agenda. Expect to see a significant increase in IBA action alerts. We ask that you don’t stop at sending an email. Make phone calls, send messages through social media, join us for a trip to Capitol Hill. There will be significant opposition efforts to any repeal of Dodd-Frank, softening of the CFPB and repeal of the Durbin Amendment, and we need to act. Take some time to peruse the roughly 15,000 pages of new regulations under Dodd-Frank. Look at how much the Durbin Amendment has cost your bank and your customers. Analyze how many loans have gone to subsidized lenders, such as credit unions and Farm Credit Services. The data, like the number of banks we’ve lost, will be astounding and unacceptable. We’ve been waiting for this moment for a long time. Let’s partner together now, while our efforts can make a true difference, for the sake of your customers and the communities you serve. HB The Indiana Bankers Association welcomes two new members to the Future Leadership Division board of directors: Michael J. Clampitt is senior vice president, commercial lending, with North Salem State Bank, which he joined in 2008. He serves on the board of directors of the Putnam County Economic Development Center and on the finance committee of the Putnam County Community Foundation. Clampitt is a graduate of Indiana State University and of the Barret Graduate School of Banking. Ryan L. Hart is vice president, commercial banking officer, with Lake City Bank, Warsaw, serving the Indianapolis market. He joined the bank in 2004 and has served in several commercial banking positions. Hart is active with Young Professionals of Central Indiana and the Central Indiana Risk Management Association. He earned a bachelor’s degree from Indiana University and an MBA from I.U.-Fort Wayne. WELCOME, FLD BOARD MEMBERS HB Digital: Click to view a roster of IBA Future Leadership Division members.
Hoosier Banker 7 View full calendar and register online at indianabankers.org/education-events, or click on the icons above in HB Digital. IBA Center for Professional Development | 6925 Parkdale Place | Indianapolis, IN 46254 | 317-387-9380 & EVENTS CONFERENCES CLASSROOM INSTRUCTION ONLINE LEARNING Convene and connect at signature IBA events. Build knowledge via webinars or on-demand. Learn with peers in a classroom setting. Calendar of Events CALENDAR UPDATE Bank Directors Boot Camp: For New Directors, and Refresher Course for Veterans April 6 • IBA Center Consumer Lending School April 11-12 • IBA Center IBA Leadership Development Program April 11-14 • Wooded Glen, Henryville Cybersecurity Seminar April 12 • IBA Center Branch Management Series: Session 2 - Leading, Developing and Engaging the Team April 18 • IBA Center Essentials of FCRA & Fair Lending April 18 • IBA Center Essentials of Banking: Session 1 - Banking 101 April 19 • IBA Center BSA/AML Compliance School April 19 • IBA Center Elder Financial Exploitation: A Growing Concern to Banks and Regulators April 25 • IBA Center IBA Mega Conference May 2-4 • Indiana Convention Center, Indianapolis Community Bankers for Compliance Series - Session 2 May 8 • The Landmark Centre, Fort Wayne May 9 • IBA Center May 10 • IBA Center Analyzing Tax Returns in Self-Employed and Small Business Situations May 16 • IBA Center C&I Business Cash Flow Analysis May 17 • IBA Center Risk Management Officer Forum May 18 • IBA Center Senior Retail Banking Forum May 18 • IBA Center Stepping Up to Supervisor May 23 • IBA Center Regulation Z University May 23-25 • IBA Center Auditing TRID June 6-7 • IBA Center IBA Leadership Development Program June 7-9 • Wooded Glen, Henryville Talent Assessment and Succession Planning June 8 • IBA Center Commercial Lending School June 12-16 • IBA Center Universal Banker: Growing the Retail Branch June 13 • IBA Center Essentials of Banking: Session 2 - Business Operations & Management June 14 • IBA Center Real Estate Lending Compliance June 15-16 • IBA Center Chief Financial Officer Forum June 20 • IBA Center - Group 1 June 23 • IBA Center - Group 2 Senior Lender Forum June 21 • IBA Center - Group 1 June 22 • IBA Center - Group 2 Marketing Directors Forum June 27 • IBA Center IT & Operations Officer Forum June 28 • IBA Center - Group 1 June 29 • IBA Center - Group 2 HR Directors Forum July 11 • IBA Center Administering Construction Loans July 11 • IBA Center CRE Appraisals: Reviewing and Interpreting July 12 • IBA Center Auditing BSA July 20 • IBA Center Community Bankers for Compliance Series - Session 3 Aug. 7 • The Landmark Centre, Fort Wayne Aug. 8 • IBA Center Aug. 9 • IBA Center Social Media Deep Dive Aug. 15 • IBA Center Leadership Development Program Aug. 16 • Wooded Glen, Henryville Branch Management Series: Session 3, Leading, Developing and Engaging the Team Aug. 22 • IBA Center Advanced Branch Management Aug. 23 • IBA Center Numbers Talk, and Lenders Need to Listen Aug. 23 • IBA Center Understanding Business Borrowers Aug. 24 • IBA Center Essentials of Banking: Session 3 - Safeguarding the Bank and Customer Service Aug. 24 • IBA Center Compliance for Mortgage Loan Processors Aug. 30 • IBA Center Advanced Agricultural Credit Conference: Successfully Navigating the Repayment Obstacles Ahead Sept. 6-7 • Four Points by Sheraton West Lafayette IBA Annual Convention Sept. 10-12 • French Lick Resort Employment Law Compliance for Bankers Sept. 14 • IBA Center Advanced Credit Analysis Sept. 14-15 • IBA Center Mortgage Lending School Sept. 19-21 • IBA Center
8 MARCH / APRIL 2017 COVER STORY Annette M. Russell is president and CEO of Security Federal Savings Bank, Logansport, and 2017 chair of the Indiana Bankers Association. Annette RUSSELL Leading as IBA chair Leading a successful community bank, especially through trying economic times, is an accolade in and of itself. For Annette M. Russell, president and chief executive officer of Security Federal Savings Bank, Logansport, a host of additional achievements apply. Russell’s impressive resume includes her role as chair of the board of directors of the Indiana Bankers Association. She was named to this position effective Jan. 1, making Russell the first female chair of the IBA in its 120-year history. Previously she served the Association as first and second vice chair and as northwest region director. On the national landscape, Russell serves the banking industry on the American Bankers Association Community Bankers Council. Statewide, she also gives service as a member of the Indiana Board of Depositories; she was appointed to the board in June 2016 by former Gov. Mike Pence. The community at large has likewise benefited from Russell’s leadership. Past involvement includes service on the board of trustees of Logansport Memorial Hospital; as campaign chair for the 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. As a community leader, Russell has garnered several honors, including the Indiana University Kokomo Alumni Association’s Distinguished Alumni Award in 2006, induction into the IU Kokomo Alumni Hall of Fame in 2013, and being named Logansport/Cass County Chamber of Commerce Business Woman of the Year for 2007-08. She has been recognized twice by NorthWestern Financial Review magazine – as a Rising Star in Banking in 2010 and as an Outstanding Woman in Banking in 2014. A certified public accountant, Russell began her banking career with Security Federal Savings Bank in 1991 and was named president and CEO in 2003. She 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. Additionally Russell completed the inaugural IBA Leadership Development Program in 2013. Hoosier Banker interviewed Russell last fall at her office in Logansport. You are the first woman to serve the Indiana Bankers Association as board chair. Also effective this year, the IBA board has selected its first female leader to hold the title of president and CEO. What do these milestones mean for the industry? “When I started at Security Federal 25 years ago, there was one female on the board of directors. Today, four of the nine seats are
Hoosier Banker 9 PHOTO CAPTION: Annette Russell joined Security Federal Savings Bank, Logansport, in 1991. represented by women in business. My predecessor was a visionary and recognized the value that women could bring to leadership roles in our industry. “I also felt that my age would be a challenge, coming in to the CEO role at age 38. I quickly found out that I wasn’t unique from that standpoint. Generational differences in values and work ethic also give rise to diversity in the workplace. “In my experience, positions are filled based on the best candidate for the job. While it’s true that women now hold more executive-level positions than in the past, I feel it’s more a matter of choosing the best candidate. Diversity, whether it be gender, age, values or skill, can benefit the IBA on many levels.” What are your goals this year for the IBA? “First and foremost is to support Amber in her new role. The executive committee worked hard last year to make the transition from Joe to Amber* go as smoothly as possible for the IBA staff and members. We support the staff development initiative that Amber initiated and want to ensure that her team is aligned with the vision for the IBA. “At the board strategic planning meeting in the fall of 2013, the board and IBA leadership established four priorities. One of those priorities, ‘proactively assisting in building the next generation of bank leaders,’ ranks as my second primary goal. “One of our industry’s challenges is retaining and attracting millennials. This
10 MARCH / APRIL 2017 COVER STORY As a community bank leader, Annette Russell sets high standards. “I am continuously seeking ways to improve myself,” she says. generation represents our future workforce. I look to millennials as being future innovators of our industry. From my perspective, I want to know how they think and interact, so that I can support their initiatives to service this generation. “IBA’s Leadership Development Program is a natural progression to membership in the Future Leadership Division. FLD membership has been growing each year, which I believe is a representation of the quality of education and networking opportunities provided. Our bank has five active participants in the FLD, and several more I would love to get involved. “Our FLD members look forward to all of the events, especially the Day at the Statehouse. I have started taking two FLD members on the IBA Annual Washington Trip each year as an extension of their experience at the state level. It’s imperative that we help them understand the importance of grassroots efforts, and how they can advocate for the future of our industry.” What are your responsibilities as president/CEO of Security Federal Savings Bank, Logansport? “One of my primary responsibilities is providing strategic leadership and direction for the future of the bank. Obviously there are a lot of underlying parts that have to be in place in order to accomplish this. Having the right people on your management team is critical, and I’m fortunate to have a team that has the same passion for preserving the integrity of community banking. “I serve as the chair of our risk management committee, which I established two years ago. By creating a dashboard for key areas of risk in the bank, I developed our own internal model for monitoring enterprise risk. This risk monitor is now a key component of our board report and strategic planning tools. “We’ve worked hard over the last 13 years to develop and maintain a team culture. Two of the rules at the IBA Leadership Development Program were ‘no egos’ and ‘no B.S.!’ You can’t develop a team without trust, so rather than a top-down approach, it’s an all-around approach. “My goal is to empower everyone here with the knowledge and the resources needed to be successful. It’s my responsibility to build consensus and lead the team in setting appropriate goals and celebrating their success. “I also write a monthly newsletter that’s shared with the board, our team and our community relations board. I include recognition of service anniversaries, updates on the industry, board meeting updates and a question-and-answer section. The Q&A is derived from questions asked at our service anniversary celebrations held throughout the year. Each participant is asked to bring a question on any topic to the celebration as their ‘ticket’ for admission. “Communicating effectively across the organization, both in writing and speaking, is imperative ‒ and something I’ve not perfected. I am continuously seeking ways to improve myself, and I don’t set any limits for my own potential.” How has your CPA background enhanced your career? “When I started in 1991, I was hired as the controller. I had worked in public accounting, but had limited opportunity for growth. My analytical skills allowed me to grow in the areas of lending, business planning, investment strategies and prioritizing projects. I’m not comfortable with any major change or proposal until it’s been analyzed to death. “I spend a lot of time analyzing and perfecting my own work, which can become a time management issue at times. I openly say, ‘I pity anyone who gives me a report or minutes to proof!’ I’m a grammar freak, too.” You are a member of the inaugural class of the IBA Leadership Development Program. What did you gain from that experience? “If you speak with anyone who’s attended, you’ll quickly learn there are a lot of activities no one anticipated. I won’t let the surprises out, but I will say that the program keeps you on your toes. The only schedule you were sure of was lunch at noon and dinner at 5. Everything else was a freefor-all. The uncertainty put me out of my comfort zone, which I’m sure was part of the intention. “In all honesty, I got to know Dax Denton on a different level ‒ like a marriage, in good times and bad! The poor guy felt my wrath after 48 hours of very little sleep and a whole lot of challenges. “We learned the benefits and challenges of developing a plan with a team of people with different personality traits. This required a lot of patience and objectivity. The projects also allowed us to fail, more than once, but
Hoosier Banker 11 The rebranding in 2012 of Security Federal Savings Bank included an updated lobby, mixing elegant details with welcoming touches. made us persistent, because we couldn’t give up until we completed the task. “I’ve sent four of our team members to the program since then. I am truly a fan, and I feel the IBA has coordinated a well-rounded program with top-notch instructors. I am definitely an advocate of IBA’s Leadership Development Program.” The website of Security Federal Savings Bank lists institutional values of courtesy, safety and flexibility. How does your bank apply these values consistently among your five locations? “Our core values of courtesy, safety and flexibility are our top priorities. When we rebranded the bank in 2012, the financial crisis was still being played out. We wanted to put an emphasis on making our customers and noncustomers feel a sense of personal security and safety. We incorporated the feel into the bank look by creating an environment where people feel welcomed, listened to and served by a bank that has their best interest in mind. “Along with the rebranding came a program we call ‘Customer Xperience.’ This program sets clear standards and expectations for how we treat customers, both internal and external ‒ the ‘courtesy’ value. We actively follow the Golden Rule and treat our colleagues and customers with the utmost care, loyalty and respect, which makes everyone feel important. Every new employee completes the Customer Xperience training program, and existing employees are reminded frequently of our agreed-upon affirmations. “We wanted our customers and communities to recognize that, as a community bank, Security Federal remains strong and committed to the communities we serve. We also updated our look to reflect a progressive feel to show the communities that we intend to be around for many years to come, and that we will continue to provide the most feasible products to suit their needs. “Being a community bank allows us to provide flexibility to our customers. Each customer interaction is unique, and we want our team to be equipped to meet the customers’ needs and not try to fit everyone into the same product, especially if it’s not in their best interest.” What do you enjoy most about banking? “Every day is different. I enjoy knowing that I can help provide a necessary service to the community I was born and raised in. When I have the opportunity to work directly with our customers, I want to do everything I can to help them reach their goals. “Every day our decisions impact peoples’ lives, and you want all of those decisions to have a positive impact. It can be difficult in a small community to constantly balance what’s best for the customer and what’s in the best interest of the bank. These are your friends and family and people you see at the grocery. “I also enjoy watching our young talent grow. For one, that means I can retire sooner, and secondly, they will most likely make better leaders because of the attention devoted to growing them. “I prefer the term ‘growing,’ rather than grooming. I don’t want to groom someone to be like me; I want people to use their own natural abilities to develop ideas using all of the resources they have available, even if they are not specific to banking. I feel the best thing I can do is support their motivation to continually improve their skills.” You have received multiple community and industry honors, including from Indiana University-Kokomo, the Logansport/ Cass County Chamber of Commerce and NorthWestern Financial Review magazine. What is your community service/work philosophy? “The communities we service are the people who enable us to provide jobs and pay salaries. As a mutual, Security Federal doesn’t have the same earnings philosophy as a stock institution, which allows us to be more charitable in our communities. “I have expectations of all of our officers that they be actively involved in local organizations. Fortunately the philosophy of
12 MARCH / APRIL 2017 COVER STORY employees complements the bank’s mission to give back to the community. “Very often we have greater than 90 percent participation in the United Way campaign. Giving is part of our culture, whether it is in the form of a financial contribution or volunteering. “About a year ago, we started hosting ‘Fundraiser Fridays.’ Employees pay $5 to wear jeans on Fridays; the proceeds are then donated to a nonprofit in one of our markets. Recently we gave over $600 to the Tornado Relief Fund in Howard County, which was money our employees contributed out of their own pockets.” Please describe the impact of an influential person or people in your life. “On the day I got my driver’s license, my dad was killed in a motorcycle accident. Coming from a normal, middle-class family, he was the breadwinner, and my mom stayed home most of her adult life raising me and my three brothers. I happened to be the oldest child living at home at the time. “I watched my mom work in jobs that required a lot of physical labor, long hours and unpleasant working conditions. My mother is my first source of inspiration and power. Her strength and determination have grown in me. “Mom would be the one to say, ‘You can’t quit now, you’ve gone too far’ ‒ just the kick in the pants I needed at the time. Today, at 75, she still maintains her own lawn, will paint her house and does the majority of the home maintenance. “My predecessor, Richard Cassidy, was also an inspiration. He became a father figure, always pushing me to keep learning. He was a visionary, and we were well aligned on the future of the bank. “Mr. Cassidy would take me to seminars and sit there reading the newspaper, eating peanut M&Ms, paying no attention to what was going on. It struck me as rude at the time but, thinking back, he probably already knew what the speaker was talking about. Maybe this was one of his grooming tactics? “Although I knew that I was named as Mr. Cassidy’s successor in the management succession plan, it wasn’t something we discussed in detail. I viewed the plan as a regulatory requirement, not anticipating we would need it in the short-term. There was no formal grooming plan. “Dick passed away suddenly at age 62 while playing basketball, something he loved. I have told our young leaders this story only to let them know that that’s why I’m so passionate about helping them know and realize their future. I want them to recognize that it’s never too early to start preparing for the unexpected.” Please tell a bit about your home life and pastimes. “I was born and raised in Logansport, and I graduated from Logansport High School. I attended Indiana University-Kokomo so that I could stay closer to home. My husband Steve and I have been married for 19 years, and we have a 16-year-old son, Josh. I also have a stepdaughter, Holly, who lives in Avon with her family. We have two grandchildren, Matti and Case. “I know it’s important for my mental wellbeing to stay active. I try to make exercise part of my daily routine, including yoga, which I’ve been doing for over 15 years. Other pastimes include camping, boating, fishing and photography.” HB Steve and Annette Russell have been married for 19 years. * S. Joe DeHaven retired as chief executive officer of the Indiana Bankers Association at year-end 2016. Amber R. Van Til became IBA president and CEO effective Jan. 1, 2017. HOW IS YOUR FLOOD ZONE DETERMINATION PROVIDER HANDLING BORDERLINE CASES? Flood Zone Determinations LOMA/LOMR Assistance Flood Insurance Guidance Interfacing with: Encompass 360, Calyx Point, Byte Pro & Fis-Serv Craig Callahan 800-945-0246 We take pride in our industry leading accuracy and customer service. Find out what a true “community bank” minded company we are. PREFERRED SERVICE PROVIDER OF THE IBA. Serving Indiana lenders since 1991
Guiding Indiana Community Banks Since 1978 Kent, OH Strategic Planning Capital Planning Liquidity Planning Regulatory Assistance Stock Valuations Capital Markets Internal Audit Information Technology Recruitment & Human Resources Lending & Loan Review Regulatory Compliance Policy Development Young & Associates, Inc. Consultants to the Financial Industry 38 YEARS 1978 - 2016
14 MARCH / APRIL 2017 ARTICLE SPOTLIGHT Bankers statewide know Amber R. Van Til, JD, president and chief executive officer of the Indiana Bankers Association, as a tireless champion of the industry. Since joining the Association 15 years ago as vice president-government relations, her advocacy efforts have helped safeguard the Public Deposit Insurance Fund, reduce the Financial Institutions Tax and streamline the tax sale process, among other victories. Van Til additionally has built a reputation at the Indiana Statehouse and on Capitol Hill as a reliable source of information. She balances the contrasting traits that define successful lobbyists – tenacious and competitive, yet compassionate and kind ‒ while maintaining the highest standards of integrity. All the while, she and teammates at the IBA have orchestrated a strong grassroots advocacy base to give a clear, collective voice to bankers. Beyond her IBA title, Van Til also serves the industry as a trustee of IBA Health Insurance, the Graduate School of Banking at the University of Wisconsin and the Herbert V. Prochnow Educational Foundation; she additionally is a member of the boards of directors of the Indiana Statewide Certified Development Corp., Indiana Fiscal Policy Institute and Indiana Legal Foundation. In the community, Van Til has been active with the Interim Study Committee on Mortgage Lending Practices and Home Loan Foreclosures, Indiana Foreclosure Prevention Network and Indiana’s Hardest Hit Fund. A graduate of the University of Indianapolis and of the Indiana University Robert H. McKinney School of Law, Van Til has completed the Lacy Leadership LEAD program, the Graduate School of Banking at the University of Wisconsin (UW), and has earned the certificate of executive leadership from the UW School of Business. In 2015 she was honored by the Indiana Society of Association Executives as Association Professional of the Year, and in 2008 she won in the category of Banking & Financial Services for the Best & Brightest awards, sponsored by Junior Achievement of Central Indiana Inc. Hoosier Banker recently interviewed Van Til about her background and goals: What are your responsibilities as IBA president and chief executive officer? “My responsibilities include setting the vision for the Association and strategically guiding the board and staff toward the accomplishment of those goals. I also serve as an advocate for banking issues and an industry spokesperson.” What are your short-term and long-term goals for the Association? Amber R. Van Til is president and CEO of the Indiana Bankers Association. Amber Van Til Giving voice to banking
Hoosier Banker 15 “We are doing a lot of exciting things at the IBA right now. We are in the process of relocating our main office, launching the redesign of the Hoosier Banker, engaging in a robust professional development program for our staff, hosting a new women’s conference and rolling out the BankTalentHQ tool. “This fall we are holding a strategic planning retreat for our board of directors. The retreat will focus on how the IBA can continue to provide a high level of service to our members throughout the coming years. As the banking model is transformed by the changing social, economic and political environments, the Association must adjust to meet the changing needs of our membership. “Our mission is: ‘To advocate for and sustain an environment in which banks can succeed.’ Our goals should always be focused on upholding that mission.” How can the IBA help member banks address industry challenges? “The IBA will be a national leader in advocating for thoughtful and balanced deregulation, on both the state and national levels. We will work toward loosening the chokehold that government has on our members’ ability to serve their customers and communities well. “We can also be a resource for our members, as banking leadership roles transition from the boomer generation to Gen X and millennials. We must be proactive and vigilant in assessing a rapidly changing environment, while listening intently to the needs of our member banks. “We will continue to educate and advocate for our membership, while providing ample opportunity for networking. When Indiana bankers need resources, we want them to think of the IBA first, whether it be for education, products and services, communications or advocacy. If we don’t have the answer, we will find it for you.” How might recent changes to the political landscape affect banking? “There is a renewed sense on Capitol Hill that we have a better chance than ever for meaningful regulatory reform. Indiana has two congressional members on the House Financial Services Committee, Reps. Luke Messer and Trey Hollingsworth, and one on the Senate Committee on Banking, Housing, & Urban Affairs, Sen. Joe Donnelly. “All three congressmen are excellent advocates for the banking industry, but they need our support. If ever there was a time to make our voices heard, it is now. The IBA will be engaging in a high-level grassroots PHOTO CAPTION: U.S. Rep. Trey Hollingsworth, second from right, meets with Amber Van Til and a contingent of Indiana bankers in Washington, D.C. Hollingsworth is a member of the House Financial Services Committee. Shown are (from left): David Findlay, Lake City Bank, Warsaw; Van Til; Jeff Knight, Old National Bank, Evansville; Rep. Hollingsworth; and Mike Bauer, WesBanco Bank, New Albany. Photo courtesy of Carrie Clark/American Bankers Association. Paul Freeman, IBA executive vice president, and Amber Van Til participate in the Association’s first Employee of the Month staff name drawing. Van Til implemented the monthly recognition program as part of a professional development initiative.
16 MARCH / APRIL 2017 ARTICLE SPOTLIGHT effort with our membership throughout this congressional session, as regulatory reform is being debated on Capitol Hill.” What can member bankers do to help strengthen the industry? “Speak up! Contact your members of Congress, and let them know how much our industry needs reg reform. Respond to every action alert that the IBA sends. It takes only seconds to send an alert that could have meaningful impact on your bank’s ability to function well.” When you began your career, what attracted you to advocating for banks? “As many folks know, both of my parents are bankers. My father, Dan Moore, is the president and CEO of Home Bank, Martinsville, and vice chair of the Federal Home Loan Bank of Indianapolis. My mother is a retired bank executive. “It seems that this is my destiny. My role at the IBA is a perfect combination of my love for advocacy and my passion for an industry that has blessed my family for many years. “Over the years, a few legislators have commented that I seem very passionate about banking issues. While we were not always on the same side of issues – and they may have not meant the comment as a compliment – I have always been proud to say that my passion is genuine. “I work for some of the finest, most upstanding citizens of this great state. Our members are generous, hardworking Hoosiers and leaders of their communities. Anyone who tries to tell me otherwise is subject to an earful! Serving the banking industry has been one of the greatest honors of my life.” How has your law background served your career? “Law school doesn’t really teach the law. Instead, it teaches a person to think like a lawyer. While I often have to refrain from verbalizing the constant thought process in my head that says, ‘I don’t think that’s advisable,’ I have found significant value in the training that I received in law school. “It has been invaluable in my interactions with legislation and legislators at the Statehouse, and I am certain that it will be of great value in the management of the day-to-day activities of the Association.” You trained as a vocalist while studying political science and history at the University of Indianapolis. How has vocal training impacted your professional life? “I entered college as a vocal performance major. I often joke that my taste in expensive shoes and purses unfortunately did not coincide with my level of vocal talent, and voice quickly became my college minor rather than major. But I am a firm believer that God sets us on the right path, whether or not we recognize it at the time. “My vocal training prepared me well for my current position, as it played a significant factor in my comfort level in front of a crowd. I learned early on that no performance, whether spoken or sung, will be perfect. Getting over the idea that you need to be perfect is the key to being comfortable in a public setting.” What role have mentors played in your personal and professional development? “I have been blessed with many mentors throughout my life, who have helped guide me in my decisions and helped to correct me when I needed correcting. Friends and colleagues were willing to have the hard conversations with me that resulted in needed personal growth. I also am blessed to have parents and a husband who provide daily encouragement, advice and accountability. “I continue to have several mentors today, many of whom are members of the banking community, and I also am privileged to serve as a mentor to others. The accountability Each fall, the IBA hosts a contingent of bankers to travel to the nation’s capitol for meetings with regulators and legislators. Shown from left are Van Til; Clay Ewing, German American Bancorp Inc., Jasper; and Rep. Todd Rokita. S. Joe DeHaven, past IBA president and CEO, and Amber Van Til participate in the circus-themed opening reception of the 2016 IBA Annual Convention.
Hoosier Banker 17 piece is the most important. If you don’t have people in your life who you can trust to be honest with you about how you present yourself to the world, you will never reach your true potential.” Please tell a bit about home life/pastimes. “I am blessed, blessed, blessed. While I am honored by my new title at the IBA, my favorite title is that of ‘mom.’ My husband Russ and I have two sons – Preston, aged 10, and Hudson, who is 7. “Preston thinks about and talks about sports 24/7. He plans to play in the NBA, but he tells us that plan B is to live off the interest in his bank account. I have to laugh and admit that I appreciate his passion for banking … but maybe I’ve oversold it! “Hudson has a vivid imagination. He loves to play games and pretend, but he also has a competitive streak. Hudson tells me he is going to get married, have five kids, and still live at home, so I can tuck all of them in every night. I think this plan is excellent ‒ my husband doesn’t agree. “Russ and I spend much of our time attending our boys’ sporting events. They play basketball, baseball and soccer. We also are very involved in our church. “Regarding pastimes, I am a committed fan of all of my boys’ sports teams. At home, I am the chauffeur, nurse, secretary, cook, maid, teacher, and finder of lost things. I am a news and political junkie. I enjoy cooking and interior design. It may not be glamorous, but I wouldn’t trade a minute of it!” HB Amber Van Til addresses bankers at a luncheon preceding the 2017 IBA Legislative Briefing and Reception. Craig M. Dwight, chairman and chief executive officer, Horizon Bank, NA, Michigan City, has been named to the board of directors of the Indiana Chamber of Commerce. Larry W. Myers, president and chief executive officer, First Savings Bank, Clarksville, has been elected to the board of the Indiana Statewide Certified Development Corp. Myers has been involved with the organization since 1990 and previously served on its southern loan committee. He is a board member of the Lincoln Heritage Council of the Boy Scouts and of One Southern Indiana and a past chair of the Indiana Bankers Association. Joseph G. Pierce, retired chief executive officer of Farmers State Bank, LaGrange, has been presented the Sagamore of the Wabash Award. The award was given in recognition of his work as the founding chairman of the LaGrange County Economic Development Corp. and as chair of the Northeast Indiana Regional Partnership. Additionally, he has worked to advance the banking industry in Indiana as chair of both the Community Bankers Association of Indiana and the Indiana Bankers Association. Pierce is a memeber of the IBA 40 Year Club. J. Daniel Maddox, president and chief executive officer of Citizens State Bank, New Castle, has been named to the Indianapolis Business Journal Forty Under 40 listing. He serves the Indiana Bankers Association as a board member of the Future Leadership Division. Additionally he is a member of the boards of directors of the Indiana Chamber of commerce, the Henry County Economic Development Corp. and the Outfitters of South Madison County. Maddox completed the Graduate School of Banking at the University of Wisconsin. Two bankers with Lake City Bank, Warsaw, were honored in December 2016 with awards from the Indiana Statewide Certified Development Corp. for “Most SBA 504 Debenture Dollars”: William R. Redman, senior vice president, commercial Indianapolis regional manager, and Ryan L. Hart, commercial banker. Hart additionally was recognized as the commercial banker with the largest transaction and highest dollar amount of SBA 504 loans. Lake City Bank has been recognized as the Indiana institution with the highest dollar amount of Small Business Administration 504 loans in 2016. Kevin D. Campbell, FCN Bank, Brookville, has received the Premier Capital Super Star award in recognition for having generated more than $5 million in SBA 504 program projects for 2016. First Federal Savings Bank, Huntington, was recognized for its years of service to the community during the annual dinner of the Huntington County Chamber of Commerce. HB Joe Pierce, CEO of Farmers State Bank, is presented with a Sagamore of the Wabash by Sen. Sue Glick. HONORABLE MENTIONS
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