HB HOOSIER BANKER MAGAZINE indianabankers.org Floodplain Consultants Premier provider of flood zone certification PLUS! IBA Regional Meetings SEPTEMBER / OCTOBER 2017
The Baker Group is one of the nation’s largest independently owned securities firms specializing in investment portfolio management for community financial institutions. Member: FINRA and SIPC www.GoBaker.com Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Salt Lake City, UT | Springfield, IL | 800.937.2257 *The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc. Leaders in innovation. The Baker Group remains the industry leader when it comes to innovation. We are truly a one-stop shop that never outsources services. To find out how The Baker Group can assist your institution in defining and meeting its financial objectives, call your Baker representative or Ryan Hayhurst at 800.937.2257. Education Tailored Board Education Webinars for ALCO Interest Rate Risk Seminars Investment Strategies Develop Quarterly Strategies Determine Optimal Relative Value Manage Risk vs. Reward Tradeoff Asset/Liability Management Evaluate Earnings and Capital at Risk Simulate Stressed Rate Scenarios Analyze Risk Management Strategies Leadership requires vision. For financial institutions, vision can be defined as “the ability to see and assess an unfolding financial landscape.” Successful managers seek out the tools, resources, and processes that bolster sound decisions in the face of changing market conditions. They also develop the plans and winning strategies necessary to lead their financial institutions to high performance. Establishing such a plan requires a trusted partner; The Baker Group is that partner. Our proven approach of total resource integration utilizing software and products developed by Baker’s Software Solutions* — combined with our solid investment experience and advice — makes us the investment firm of choice for financial institutions. When it comes to casting an effective financial vision for the future, The Baker Group can help you make the right choices for your institution. The Baker difference. Dr. James Baker revealed his innovative approach to banking in the 1970s. When he wrote his book, Asset/Liability Management, little did he know The Baker Group would one day be known as the industry leader in interest rate risk management. It’s no surprise the same spirit of innovation that launched the company in 1979 is what has kept us at the visionary forefront of creating tools that manage performance while balancing risk and reward.
4 SEPTEMBER / OCTOBER 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. 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. Contact Us To contact any team member of the Indiana Bankers Association staff, either send an email or call 317-387-9380. Email addresses are the first initial of the staff person’s first name, plus last name, plus “@indianabankers.org.” Example: jdoe@ indianabankers.org. For Hoosier Banker articles submissions, advertising or other magazine needs, please send emails to HB@indianabankers.org. 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 CEO ......................................................Amber R. Van Til, Indiana Bankers Association Constituent Directors ICBA State Director ........................................Michael H. Head, First Federal Savings Bank, Evansville 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, Ind Northeast Region Directors Jeffrey W. Gump ........................................................................Farmers and Merchants Bank, Laotto Michael C. Rechin ..................................................................... First Merchants Corporation, Muncie 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, Brownsburg 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 Jessica Carroll ............................................................The New Washington State Bank, Charlestown 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 CEO ................................................................................................... Amber R. Van Til 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 Steuerwald, Esq. Executive & Government Relations Coordinator ........................................................ Joshua A. Myers Events & Products/Services Assistant..............................................................................Susan Clark Education Meeting Coordinator .....................................................................................Marcy Borden Education Meeting Coordinator .................................................................................... Elizabeth Kilty Accountant ......................................................................................................................Timothy Fry Technology Manager ....................................................................................................... Tracy Kubly Administrative Assistant ...............................................................................................Michelle Long DIRECTORS & STAFF
Hoosier Banker 5 CONTENTS Vol. 101 No. 5 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 @indianabankers Publisher: Amber R. Van Til 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 first day of the month preceding publication, and submit artwork by the fifth 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. About Hoosier Banker: Award-winning Hoosier Banker magazine is the flagship publication of the Indiana Bankers Association. Its subscriber base includes all banks and thrifts headquartered in Indiana, IBA-member banks headquartered out-of-state, and IBA associate members. HOOSIER BANKER MAGAZINE indianabankers.org Wayne Capek (left) and Craig Callahan uphold high standards at Floodplain Consultants, Brownsburg. Located nearby is Arbuckle Acres Park, coincidentally situated on a floodplain. COVER STORY 10 Floodplain Consultants ARTICLE SPOTLIGHT 18 IBA Regional Meetings: Stronger Than Ever Dax Denton, IBA FEATURES 6 Vantage Viewpoints Amber R. Van Til, IBA 7 IBA Calendar of Events 8 Board Review Jeffrey W. Gump, Farmers and Merchants Bank 20 Covering Your Losses With Flood Certifications Lori Jean, Krieg DeVault LLP 30 State Deposits in Indiana Financial Institutions 40 Treasury’s Roadmap Robert S. Nichols, ABA 42 Finishing Strong Camden R. Fine, ICBA DIRECTORS / SENIOR MANAGEMENT 22 Yield Curve Behavior Jeffrey F. Caughron, The Baker Group HUMAN RESOURCES 24 ‘Ban the Box’ Ordinances Debra A. Mastrian, SmithAdmundsen LLC 34 Recruit and Motivate Staff Brian M. Howe, Plante Moran 48 The Recruiter’s View Charlie Tudor and Mark Angott, Angott Search Group COMPLIANCE CONNECTION 26 Waiving HELOC Closing Costs Brett J. Ashton, Krieg DeVault LLP PRODUCTS & SERVICES PROFILE 28 Mobile Wallet New Card Products Damon Moorer, TCM Bank, NA PSP SHOWCASE 32 All Things Payments Rod Lasley, IBA OPERATIONS / TECHNOLOGY 38 ‘Zelle’ Insights From Fifth Third Bank MARKETING / SALES 44 Attracting Deposits Erich Buckenmaier, Promontory Interfinancial Network 54 Bank Marketing Tip: A CSR at Every Desk Jeff Rendel, Rising Above Enterprises DEPARTMENTS 16 Anniversary Milestones 21 Taking It Easy 23 From the Board Room 23 IBA Employees of the Month 25 In Memory of 27 Honorable Mentions 36 Associate Members’ Corner 41 Banking Center Update 46 Banking on Community 50 Bankers on the Move 54 Advertisers Index
6 SEPTEMBER / OCTOBER 2017 This redundant data-gathering takes time, slows the proces, and may weaken a community bank’s lending ability. Thus the regulation induces the opposite effect of its intent, with fewer banks making fewer loans to the small businesses that were to have been served. This is not a small issue. Small business is a powerful economic driver, and any time a small business fails to obtain a loan, the usurped opportunity to grow and to create jobs resonates beyond the walls of that particular business to the community at large. Multiply that negative economic impact by thousands of small businesses nationwide, and this single example of burdensome overregulation translates into a heavy economic toll on Americans everywhere. On an encouraging note, however, lawmakers have been hearing your voices, and momentum is now building to relieve the regulatory burden. The CLEAR Relief Act of 20171 provides for commonsense relief, and the bipartisan Regulatory Accountability Act addresses overregulation in multiple industries. Additionally, in June the House passed the Financial CHOICE Act2, which streamlines regulation in multiple areas. At the Indiana Bankers Association, we will continue to advocate for regulatory relief, and ask for your help through grassroots engagement. Easing the burden will benefit your bank and the community it serves by allowing you to do what you do best – conduct the business of banking as stewards of safety, soundness and profitability. HB Red tape is a red flag to bankers. Banking is a business of serving the public with efficiency and profitability, enabling communities to prosper. Any impediments to progress – e.g. red tape – can threaten banks’ ability to meet the diverse financial needs of consumers. What is red tape? Merriam-Webster dictionary defines it as: “official routine or procedure marked by excessive complexity which results in delay or inaction.” The term has been around since the mid1700s, when red tape literally was used to secure official documents. At some point the elegant red binding became too much of a good thing, and “red tape” took on a negative meaning. The banking industry strives to reduce red tape in the form of overregulation as much as is reasonable, while retaining an appropriate level of procedures to ensure safety and soundness. For all depository financial institutions, safety is paramount. What is clear to bankers, but not necessarily to the general public, is that banks serve consumers by holding, lending, exchanging, issuing or transmitting funds in a manner that benefits both the consumer and the financial institution. Each transaction needs to be as streamlined as possible, while adhering to prudent standards of safety, in order for both the customer and the bank to register a profit. This is where red tape comes in. When the procedures required of a bank become so complex as to impede functionality, the mutually beneficial relationship between the customer and the bank is impaired. In these days of heightened emotions and conflicting political messages, plus memories of the financial crisis of 2008, there is much confusion about the role of banks in free market economics. In fact, perhaps your customers and others in the community have been asking why the banking industry advocates for regulatory relief. If you are fielding these questions, this is an opportunity to engage in productive dialogue. You can explain that, when you talk to legislators about easing the regulatory burden, you are advocating not only for the financial wellbeing of your bank and shareholders, but also of your customer base. Market economics dictate that a bank, as a for-profit institution, must act in the best interest of its customers, or those customers will go elsewhere. For that reason, the issue of overregulation is not an either/or scenario, with banks on one side of the fence, and consumers on the other. Instead, both parties share the same goal of achieving prosperity. Adding to current confusion is the conflict between regulatory intent and reality. While the intent of a regulation may be for the greater good, its outcome and effects can thwart that good intent. For example, Section 1071 of the Dodd-Frank Act requires the Consumer Financial Protection Bureau to collect and report data on banks’ small business lending in a detailed manner, similar to the reporting requirements already in place through the Home Mortgage Disclosure Act. Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINTS VIDEO BONUS The Indiana Bankers Association has moved to a new location at 8425 Woodfield Crossing Blvd., Suite 155E, Indianapolis. Tina Schmitt of Freedom Bank, Huntingburg, attended one of the first educational events held at IBA’s new home. To view her impressions, click on the video icon above in HB Digital online. 1 CLEAR = Community Lending Enhancement and Regulatory Relief 2 CHOICE = Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs
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 | 8425 Woodfield Crossing Blvd., Suite 155E | Indianapolis, IN 46240 | 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 Employment Law Compliance for Bankers Sept. 14 • IBA Center Advanced Credit Analysis School Sept. 14-15 • IBA Center Advanced Deposit Account Administration Sept. 19-20 • IBA Center Mortgage Lending School Sept. 19-21 • IBA Center Risk Management Officer Forum Sept. 21 • IBA Center Navigating and Understanding the UCC for Compliance Professionals Sept. 22 • IBA Center IBA Annual Washington Trip Sept. 24-26 • Washington, DC Implementing the Revised HMDA Rules Sept. 26 • IBA Center Security Management Seminar Sept. 27 • IBA Center Writing Compliant Real Estate Evaluations Internally Sept. 28 • IBA Center BSA/AML Compliance Fundamentals Oct. 3 • IBA Center Essentials of Banking: Session 4 - Lending, Bank Investments and Bank Performance Oct. 4 • IBA Center Senior Retail Banking Forum Oct. 4 • IBA Center Effective Prospecting Strategies … Your Roadmap to Acquiring New Business Oct. 5 • IBA Center Fundamentals of Consumer Lending Oct. 5 • IBA Center Chief Financial Officer Forum Oct. 10 • IBA Center • Group 1 Oct. 13 • IBA Center • Group 2 Senior Lender Forum Oct. 11 • IBA Center • Group 1 Oct. 12 • IBA Center • Group 2 Cybersecurity Conference Oct. 11-12 • Renaissance Indianapolis North Hotel, Carmel Community Bankers for Compliance School Oct. 16-17 • Operations/Deposits Oct. 18-20 • Lending Compliance Asset / Liability Management Oct. 17 • IBA Center Understanding Business Borrowers Oct. 18 • IBA Center Numbers Talk, and Lenders Need to Listen Oct. 19 • IBA Center Marketing Directors Forum Oct. 24 • IBA Center IRA School - Exploring the Universe of IRA Oct. 24-25 • IBA Center IT & Operations Officer Forum Oct. 25 • IBA Center • Group 1 Oct. 26 • IBA Center • Group 2 Certified Teller Program: Concepts for Planning, Preparing and Preventing Robberies for All Branch Personnel Nov. 2 • Hampton Inn, Clarksville Nov. 6 • The Landmark Conference Centre, Fort Wayne Nov. 7 • The Sherman House, Batesville Nov. 13 • Huntingburg Event Center Nov. 14 • Courtyard by Marriott, Lafayette Community Bankers for Compliance Series - Session 4 Nov. 6 • The Landmark Conference Center, Fort Wayne Nov. 7 • IBA Center Nov. 8 • IBA Center Inaugural Banking on Women Conference Nov. 8-9 • Indianapolis Marriott North Hotel Internal Audit and Risk Management School Nov. 9-10 • IBA Center Fundamentals of Commercial Lending Nov. 14-15 • IBA Center Human Resource Director Forum Nov. 15 • IBA Center Midwest Agricultural Banking School Nov. 27-30 • Purdue University, West Lafayette Branch Management Series: Raising the Bar for Sustainable Growth Nov. 28 • IBA Center Universal Banker: Growing the Retail Branch Nov. 29 • IBA Center Ag Clinic Nov. 30 • Purdue University, West Lafayette Future Leadership Division Annual Conference Nov. 30-Dec. 1 • Omni Severin Hotel, Indianapolis Successful Business Development: Making 2018 Your Breakout Year Dec. 5 • IBA Center Lenders Comprehensive Guide to Mortgage Lending Dec. 5-6 • IBA Center Brand Distillery - Transform Your Bank’s Marketing Efforts Dec. 7 • IBA Center 2018 Mega Conference May 1-3, 2018 • Indiana Convention Center, Indianapolis
8 SEPTEMBER / OCTOBER 2017 BOARD REVIEW When I started working for Farmers and Merchants Bank in 1985 as a teller, I never dreamed that this would be my final stop. I had never intended to be a banker. I figured I would work at the bank until something better came along. Lo and behold, 32 years later, I am still here, and I could not be happier. I was 20 years old when I hired on as a teller. We were a $19 million bank at that time. I had a great boss in my predecessor, Monty Lepper. He was patient with me and a wonderful mentor. I went from the teller line to bookkeeping to loan collections. Eventually I was eased into consumer lending. As the bank grew, so did my responsibilities. When Monty retired in 2006 and handed the reins to me, he gave me some excellent advice. He told me to not walk around “like you’re the boss.” When you (the bank) have problems – and you will have problems – look to see who the staff turns to for guidance and answers. Monty also stressed the importance of empowering people. He emphasized the importance of allowing people to make mistakes (hopefully not big ones) to grow and to learn. I would like to think that I have taken his advice to heart. As president and chief executive officer, I oversee bank and branch operations and manage the investment portfolio, among other responsibilities, but I am primarily a lender. I have been a lender for over 25 years. Our main office is in Laotto, which has a population of approximately 300 people. When people from our community come in and need a loan or someone to talk to, they expect to be able to see me. I try to always be available to them. While we strive to be profitable, and we pride ourselves on being an independent bank, it goes beyond that. The goal of the board and management has always been to take care of our employees, whose average tenure on our staff is slightly over 20 years, and our community. It is about doing what is right. It is helping people realize their dreams or helping them out of bad situations. I feel that, as a community banker, I have an obligation to support my community whenever possible. I believe that by supporting the communities we serve, those same communities will continue to support us. It has worked well for the past 103 years. Without question, what I value about what I do is the daily interaction with people, whether with my coworkers or our customers. Hand in hand with that is that I get the opportunity to really help people. The relationships that I have been able to build, both in the bank and beyond, are something I treasure. I felt honored to be asked to serve as a board member of the Indiana Bankers Association, and it was an obligation I felt I needed to fulfill. My life and career have benefited greatly because of the bank and the financial industry as a whole. I feel that it is important to be involved and to champion our community banking cause. It is much easier to sit on the sideline and let others do the work, but I felt I needed to be more involved. I would give two pieces of advice to young bankers starting their careers. First, work in as many departments within the bank as possible, even if just for a short time. The more you understand about how a bank operates, the more well-rounded a banker you will become. Second, don’t take yourself too seriously. You can get the job done, be profitable, and still have a good time doing it. My wife Laura and I have been married for 24 years, and we became empty nesters in June 2016. We have always enjoyed traveling, and now we have a little more flexibility of when and where we want to go. We also enjoy trying exotic cuisine. In my free time, I enjoy reading, playing with our goldendoodle Pepper, and I love to be outside and the outdoors in general. After being in an office for too many hours a day, I look forward to getting some fresh air. HB Jeffrey W. Gump Northeast Region Director Indiana Bankers Association President and CEO Farmers and Merchants Bank, Laotto Six members of the Indiana banking community were among the 100+ community bankers and staff of the Independent Community Bankers of America who met on May 1 with President Donald Trump as part of the ICBA Capital Summit. In an exclusive meeting with ICBA leadership bankers, Trump said his administration is focused on addressing regulatory burdens to help community banks lend to small businesses. Read more on page 42. Vice President Mike Pence also was at the meeting, along with Gary Cohn, director of the U.S. National Economic Council, and Linda McMahon, administrator of the Small Business Administration. Indiana was represented by the following bankers: • William W. Harrod, First Harrison Bank, Corydon • Michael H. Head, First Federal Savings Bank, Evansville • Mark A. Schroeder, German American, Jasper • Ryan M. Warner, Bippus State Bank, Huntington • Lucas White, The Fountain Trust Company, Covington. Indiana Bankers Meet With President Trump Shown at the White House for the 2017 ICBA Capital Summit are (from left): Mark Schroeder, German American, Jasper; Bill Harrod, First Harrison Bank, Corydon; Ryan Warner, Bippus State Bank, Huntington; and Mike Head, First Federal Savings Bank, Evansville. Not pictured is Lucas White, The Fountain Trust Company, Covington.
Hoosier Banker 9 HELPING YOU CONNECT THE DOTS 866.440.6515 | www.bokfinancial.com/institutions © Securities, insurance and advisory services offered by BOK Financial Securities, Inc., member FINRA/SIPC and a subsidiary of BOK Financial Corporation. Some services offered through our affiliate, Institutional Investments, Bank of Oklahoma which operates as a separately identifiable trading department of BOKF, NA. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE INTEREST RATE RISK INVESTMENT MANAGEMENT REGULATORY LOAN/DEPOSIT PRICING LIQUIDITY EARNINGS BOARD OF DIRECTORS BUDGET Our balance sheet services are designed to provide a seamless approach to bank management. Utilizing a top down approach, our team of Institutional Advisors will help your financial institution connect the dots. ASSET/LIABILITY MODELING | ASSET/LIABILITY THIRD PARTY REVIEWS | DECAY RATE STUDIES | INSTITUTIONAL FIXED INCOME INVESTMENT MANAGEMENT | MUNICIPAL CREDIT ANALYSIS | TRADING/UNDERWRITING | CD UNDERWRITING
10 SEPTEMBER / OCTOBER 2017 COVER STORY Floodplain Consultants Premier provider of flood zone certification Since 1991, Floodplain Consultants Inc. (FCI) has been providing flood zone certifications and consulting on the National Flood Insurance Program (NFIP). Specific offerings include flood zone certification, census tract, floodplain management, life-of-loan services and flood insurance. FCI serves more than 300 financial institutions. Wayne C. Capek Jr., president and CEO of Floodplain, is one of the founders of FCI. Craig Callahan, vice president of business development and marketing, joined the company in 2003. They explain that Floodplain quality flood zone certification services provide peace of mind on two levels – both for financial institutions, and for their customers. From a compliance standpoint, FCI keeps its lending clients informed about map changes, and invites lenders to contact FCI for customized reports as needed. From a technology perspective, Floodplain has partnered with several loan origination systems, including Encompass 360, Calyx, BytePro and Fiserv EZ lender. A loyal supporter of the Indiana Bankers Association, Floodplain Consultants is an IBA Preferred Service Provider. The Indiana-based company has completed nearly 1 million flood certificates, and has conducted thousands of site inspections. Value-added services include life-of-loan tracking, complimentary Letter of Map Amendment (LOMA) services and flood insurance policy guidance. When a borrower is informed that it is in a Special Flood Hazard Area, the situation can be complicated. Thus for each certificate that designates a home/building in a special flood hazard area, FCI provides a flood insurance rate map to illustrate the reason for the designation, along with educational information about the NFIP and the LOMA process. Recently Hoosier Banker had the opportunity to interview Wayne Capek and Craig Callahan about their careers and roles within the company. Wayne Capek What are your duties as Floodplain president and CEO? “I participate in all of the hiring, budgeting, payroll, employee benefits and other general business-related duties. However my most important duties are to create, communicate and implement Floodplain Consultants’ vision, mission and overall direction to our staff. “I want to make sure that the direction is communicated on a level that allows all employees to feel as if they are part of something bigger than themselves. We are always trying to put ourselves in our clients’ shoes. Wayne C. Capek Jr. President and CEO Floodplain Consultants Craig Callahan Vice President Business Development and Marketing Floodplain Consultants Floodplain Consultants is a Preferred Service Provider of the Indiana Bankers Association.
Hoosier Banker 11 PHOTO CAPTION: Problem-solving for clients is a passion for Craig Callahan (seated) and Wayne Capek, Floodplain Consultants. “In addition I spend a considerable amount of time focusing on developing new technologies to become more accurate and efficient for ourselves and our clients. I make an effort to stay directly involved with our clients, particularly in regard to resolving floodplain issues to make sure we have a satisfied customer. I want our clients to have easy access to talk with any one of our four owners to answer questions or resolve issues, and to feel like we are part of their bank.” How did your career begin, and what led to your current leadership role? “My career path to my current position started the year I got out of high school. Because of my interest in everything involved with water, I became a lifeguard, water safety instructor and waterfront director at Potato Creek State Park in North Liberty. I also worked for the South Bend Parks Department East Race as part of the Whitewater River rescue squad and power boat operator trained by the Indiana River Rescue School. “After graduating from Ball State University with a geography degree, specializing in weather and climatology, I went to work for the Indiana Department of Natural Resources, Division of Water, as a surveyor. The Division of Water was the perfect fit for me. Within a year I was promoted to a water resource planner, and the next year I became the head of the floodplain management section and worked with Federal Emergency Management Agency as the Indiana state coordinator for the National Flood Insurance Program. “During my years at the IDNR, I worked with many bankers and their borrowers to resolve incorrect flood determinations. I recognized
12 SEPTEMBER / OCTOBER 2017 an urgent need to provide a flood determination service that is more accurate and would provide superior customer service. “Knowing that I needed help, in the summer of 1991 I took my idea and sold it to my lifelong friend and co-founder, Grant Walmoth, while in my backyard pool. Grant and I spent many late nights developing our business plan for Floodplain Consultants at my house for several weeks and, shortly afterward, moved to a small 12-foot-by12-foot, one-room office along Eagle Creek near downtown Indianapolis, protected by a floodwall. During the first few months, Grant slept under the table at the office, and would go to a truck stop to shower and put on a suit to meet with bankers to sell our service. “I was vice president, and Grant served as president for the first nine years. In 2000 I took over as president and CEO. In 2003 we promoted Tom Luken as office manager/ owner and added Craig Callahan as VP of sales and business development/owner.” How has a person or event impacted the evolution of your career? “I have been fortunate to work with and learn from some great managers. Dwight Brooks, state park property manager, Paul McMinn, assistant manager South Bend Parks Department, and Jim Hebenstreit, assistant director IDNR Division of Water, along with all my coworkers and staff. “I am thankful for our first client, who had faith and took a risk of using our service, and every client since. Our clients have challenged and pushed me and my staff to new levels of service and success. Without the support of our clients, we would not have achieved our first endorsement in 1994 with the Indiana League of Saving Institutions. “This endorsement ushered in growth beyond our expectations. In 1997 we received the endorsement of the Community Bankers Association of Indiana. With the support and encouragement of Joe DeHaven, then CBAI president, we also landed endorsements from the Ohio Banker League and the Illinois Bankers Association. “Our current endorsement with the IBA in 2006 has reinforced that we are the firm of choice for Indiana lending institutions. Growing with our clients, we have now expanded our industry-leading services nationwide. “I also give equal credit to my partners and staff at Floodplain Consultants, who work on the frontlines daily, providing the best service possible to our clients and their borrowers. It is not always easy to tell borrowers that their buildings are in the Special Flood Hazard Area (floodplain) and do the day-to-day work. “I consider myself an average leader with an above-average ability to pick outstanding people who have added greatly to my success. My staff is the hardest working and best in our industry.” What would you like IBA members to know about Floodplain Consultants? “If you are one of our clients, please remember you can always call me or my staff for help. If you are not currently a client, you are also welcomed to call us for help. “We want to show you the value of our service by reviewing current or past problem flood zone determinations. You get help for free, and we get the opportunity to show you the value of our service.” Please share a bit about home life and/or pastimes. “I have been married to my wife Cindi for 29 years, and we have three children. We now live in Indianapolis in the Meridian-Kessler area. Our twin sons, Luke and COVER STORY The history of Floodplain Consultants is carefully preserved in a scrapbook.
Hoosier Banker 13 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 SEPTEMBER / OCTOBER 2017 numerous bank trade association conferences each year, meeting face-to-face with both prospective customers and our current customers, to listen to their needs and to communicate our service offerings.” When you were a student at Indiana University, what were your career plans? “I am the first person in my family to go to college. The significance of that is that college was not an expectation, and I had no thoughts about attending one as I grew up. The ‘career path’ was to graduate from high school and get a job. Both of my parents were fortunate to be able to work nearly their entire careers for one company, and that seemed like a good plan to me, as well. “Then, after high school, one of my best friends and I took basic laborer construction jobs for a company in Tampa, Florida, building condominiums. Even though the sun and beaches were cool for an 18-year-old male, it didn’t take very many months of working 12-hour days in the hot sun, digging holes and carrying plywood, shingles and sheet rock around the construction site, for me to question my decision. “Not seeing this as a path to stay on, I called home and asked my parents if I could come back and attend college. Their answer, of course, was yes. Still not knowing exactly what I would major in, I followed a pretty generic degree program, with a focus on management.” How has your career evolved? “Upon graduation, I shotgunned resumes to companies in Indianapolis and landed a sales and marketing role with Golden Rule Insurance Company. I gained a great deal of experience and confidence, earned several sales and leadership accolades, and seemed to find that ‘company I could work for my entire career,’ as had been modeled by my parents. “Golden Rule offered tuition reimbursement for employees pursuing degrees, so as my wife and I were starting our family, I enrolled in an MBA program at the University of Indianapolis. Working full-time during the day and taking evening classes, I was able to graduate and take on a new management position within Golden Rule. “All was good, until the day when the somewhat large company decided it was necessary to eliminate some middle management jobs. I learned a valuable lesson in that, when an employee is a producer, i.e. sales, it is easy to point to the value one adds to an organization. “On the other hand, being in management tends to position one as a fixed cost, with a vague ability to see direct impact beyond people skills, as compared to a sales role. I felt a sense of rejection, but I also resolved to shift my career back to a sales/ producer role, where I could quantify my efforts and leave no doubt about my value to an organization. “This led me to a few sales roles offering products or services to banking and insurance industry businesses. I was fortunate to be exposed to some top-notch training, and I gained invaluable experience. “With a growing family and unsure of my career, I decided to pursue an opportunity to work four blocks from my home as an Edward Jones financial services representative. It seemed like all the pieces were falling into place. I could control my productivity, be a fixture in my community, and be close to home – a career path to sail off into the sunset on. The Floodplain Consultants team is located in Brownsburg, in an office converted from a house. Matthew, just graduated from college (IUPUI and Purdue), and our daughter Grace is a sophomore at Purdue. “I am very grateful that my wife has been so supportive. It would not have been possible to follow my dreams without her help. My wife has always told me that ‘water follows you wherever you go,’ and she is not just talking about my career. “There is one funny story that my wife loves to tell concerning our first house in Speedway. It was a fixer-upper, and I decided to impress my wife with my handyman skills, so I remodeled the upstairs bathroom. It looked great … for a day. “The next day we went out of town for the weekend, and we returned to a major flood. It took us 48 hours to pump the water out of our basement. I was not allowed to do plumbing for the next 10 years. “I enjoy spending time with my wife, family and friends. I love serving and attending our church and meeting new people in our neighborhood. I have a passion for fishing, boating, weight training and cycling.” Craig Callahan What are your responsibilities as vice president business development and marketing? “I am responsible for the growth and customer relations of our business. I attend
Hoosier Banker 15 “Then I met Wayne Capek. We had developed a friendship from meeting at a local church in Danville. Our children were similar ages. Our boys were in Scouts together, and we enjoyed similar interests like cycling. One day he was sharing how he and his business partner wanted to grow Floodplain Consultants in Indiana and beyond, and that his founding partner, Grant Walmoth, was willing to sell a stake of his ownership, if they could find the right person. “For some reason, what he described resonated with me. I gathered up the courage to ask my wife if this was something we should do. To this day, I still say that after hearing her say yes to my wedding proposal, this was the second biggest sale of my life. The rest is history. “We have been blessed, in that the business has more than doubled, while we have methodically and deliberately grown. We now enjoy serving nearly 300 lenders. “The lesson I take away is that you need to constantly evaluate where you are in terms of your talent, education, experience, interest and knowledge. Then make calculated steps forward, based on the information you should work with. We cannot expect to know the future and exactly how our careers or lives will unfold. “Step by step, a life and career is built; not taking steps is unacceptable. Some measure of faith in yourself is required, and a trust that things will work out. I have often thought of the Bible verse that says something to the effect that a man makes his plans, but it is God who directs his steps.” Describe how a mentor has influenced you throughout your career. “I cannot say I have a single mentor who has influenced me throughout my career. My parents and many other people have come into my life to teach me and influence me, often at just the right time. I feel that I can learn something from everyone, and many teachers, motivators and preachers have planted seeds of encouragement and shown me how to live a productive, loving life. “Again, a Bible verse comes to mind: ‘As iron sharpens iron, so one person sharpens another.’ So many people have played a role in influencing me and, much like when iron is sharpening iron, sometimes there have been sparks, heat, noise and intense pressure. But it is all for my good, and I hope I have been able to influence others in a similar, positive way.” Please share a bit about home life and/or pastimes. “Home life and pastimes are hugely important to me. My wife Amy, a graduate of Purdue University, put her career on the shelf shortly after our second child Grant was born. Amy stays home and invested in raising our children. I hope one day our children recognize the deep sacrificial love she has for them. She is the glue that allows us all to chase our dreams. “We have four children, ages 24, 22, 20 and 18. My daughter is the oldest and attends the Indiana University School of Medicine. Grant recently graduated with a computer science degree from Milligan College. Luke is in his third year at Rose-Hulman Institute of Technology. Our youngest son, Zachary, is a freshman at Rose-Hulman. “Our children kept us plenty busy over the years, as we cheered them on in their endeavors. All four competed at high levels in high school and in college sports, such as running, swimming and basketball. More importantly, they all excelled in the classroom. I could not be prouder of the choices they have made, and who they have become as young adults. Wayne Capek (left) and Craig Callahan knew each other through church and family activities before becoming business partners. F C I Floodplain Consultants Inc. "We visit the site!" www.floodplain.com TM PREFERRED SERVICE PROVIDER OF THE IBA. Serving Indiana lenders since 1991 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 We take pride in our industry leading accuracy and customer service. Find our what a true “community bank” minded company we are. Craig Callahan 800-945-0246 ccallahan@ oodplain.com
16 SEPTEMBER / OCTOBER 2017 Denise L. Rollins, investment and correspondent bank accounting manager of The First National Bank of Odon, has celebrated 35 years of service with the bank. She joined First National Bank as “I am super excited to turn to the next chapter of my life with Amy and see what is in store, as we transition into being empty nesters. In the meantime, we are enjoying the moments. Outside of simply being with my family, I am hoping to find more time to do things like cycling, walking, playing with our dogs, hiking, fishing, camping and generally exploring cool places. “Wayne and I have quite a history of cycling adventures together, and it seems we have sorted out many of life’s biggest issues while cycling empty country roads. In addition to riding the Hilly Hundred and the Ride Across Indiana, Wayne I joined with some friends a few years ago to cycle 50 miles to camp at Turkey Run State Park, in celebration of Wayne’s 50th birthday. Wayne and I have a competitive streak in us, and sometimes we work things out via short sprints or races up hills.” Closing Observations The Floodplain website indicates that the company has built its reputation on quality and customer service. Customers have VIDEO BONUS Hear Craig Callahan, vice president of business development and marketing for Floodplain Consultants, describe why his partner’s belief in the company compelled him to join Floodplain 14 years ago. To view, click on the icon above in HB Digital online. provided numerous testimonials about FCI’s expert analysis, information and availability to solve problems, with results ranging from saving loans, earning business and freeing up clients to focus on their areas of expertise. A distinguishing trait of FCI is that its team will meet with customers or lenders in person, or be readily available by phone. The goal is to contribute to the client’s bottom line through partnership versus a shortterm, transaction-oriented approach. As Wayne Capek elaborates: “We purposely have slowed our process down a bit to provide more accuracy, and we charge a bit more than the average, so that we can provide a higher level of care. The saying that you get what you pay for definitely applies to flood zone determination services. “Lenders get to choose to hire flood zone certification firms that will either provide the lowest price and nearly instant certifications, or they can choose FCI to provide the highest level of accuracy and customer care in a timely fashion. We are a fit for lenders who desire the latter.” HB Ruth Schmitz, vice president/loan operations at DeMotte State Bank, has celebrated 40 years of service. She joined the bank in 1977 and moved through the organization as head teller, branch supervisor, administrative assistant, control administrator, controller, assistant cashier and assistant VP/CIS. Schmitz was named to her current position of vice president/loan operations in 1998. She is a member of the Indiana Bankers Association 40 Year Club. Christy Brooks, loan counselor, MutualBank, Muncie, marks 40 years of service to the bank in September. She is a member of the IBA 40 Year Club. Kentland Bank is celebrating its 85th anniversary. Founded by two former school teachers, the bank opened for business on Sept. 19, 1932. Initial capitalization was $10,000, with a surplus of $5,000. The bank was chartered as a private bank, and in 1962 was reorganized as a state bank. In 1982, shareholders approved the transfer of stock to KenBancorp. Anniversary Milestones A salute to bankers with 20+ years of service Associates of Kentland Bank gather in celebration of the institution’s 85-year anniversary. a high school student through an intensive office labs program, then became a full-time employee in 1982. Rollins has served the bank as teller, bookkeeper/CSR and loan clerk. HB
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18 SEPTEMBER / OCTOBER 2017 ARTICLE SPOTLIGHT A tradition that has been growing each year and gaining momentum is the summer series of Indiana Bankers Association regional meetings, designed to give member bankers an opportunity to meet with legislators in a relaxed setting, in order to foster relationship-building. Both bankers and legislators have come to look forward to this chance to meet with each other in convenient locations. This past summer, the IBA hosted eight regional meetings, from early June through late July, and attendance was an impressive increase over last year. A total of 194 bankers, plus several associate members and 52 legislators, took part in the 2017 round of regional meetings. Each meeting opened with an Association and legislative update for IBA members. Topics covered included a variety of state and federal issues, plus other components related to advocacy. Lunch with area legislators followed, providing an ideal opportunity for IBA members to meet with elected officials in a relaxed setting. This year’s format was based on past years’ events of brief presentations about IBA offerings and a summary of legislative developments. This year’s meetings, however, included presentations from representatives from the IBA Future Leadership Division. The IBA has been making a concerted effort to strengthen and grow the FLD, and particularly to encourage FLD members to engage in grassroot advocacy. The IBA thanks all who made the 2017 regional meetings a networking success: bankers, associate members and legislators. Thank you also to our sponsors, who made the meetings possible: Approval Payment Solutions Inc., Equias Alliance, Executive Benefits Network, Federal Home Loan Bank of Indianapolis, FF&S, Lee & Mason Financial Services, Plante Moran and Profit Resources Inc. Soon the IBA Government Team will be traveling to our nation’s capital for the 2017 IBA Annual Washington Trip. We hope you will help build upon the success of GR efforts this year by enrolling to join your fellow bankers in Washington, Sept. 24-26, for the IBA Annual Washington Trip. Your voice, along with voices of other industry advocates, helps keep the industry vibrant and strong. HB Article author Dax Denton Senior Vice President- Government Relations Indiana Bankers Association ddenton@indianabankers.org @ibagovrelations IBA Regional Meetings Stronger than ever HB Digital: Click to view additional photos from 2017 IBA regional meetings.
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