HB HOOSIER BANKER MAGAZINE indianabankers.org IBA Annual Washington Trip 2017 Hoosier bankers on the Hill PLUS! Recap of 2017 IBA Annual Convention NOVEMBER / DECEMBER 2017
Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the inaugural IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, rlasley@indianabankers.org. This prestigious distinction celebrates exceptional bankers throughout Indiana’s history. These honorees have left their mark in Banking Community Service Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. Now through April 30, 2018, the Indiana Bankers Association is accepting nominations for the INAUGURAL CLASS of the IBA Leaders in Banking Excellence.
4 NOVEMBER / DECEMBER 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, Indianapolis 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. 6 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 COVER STORY 10 IBA Annual Washington Trip 2017 Dax Denton, IBA ARTICLE SPOTLIGHT 14 The New Frontier Christina M. Bennett, CMP, IBA FEATURES 6 Vantage Viewpoints Amber R. Van Til, IBA 7 IBA Calendar of Events 8 Board Review Michael C. Rechin, First Merchants Corporation 20 Cyber Ready Camden R. Fine, ICBA 21 Tax Reform Robert S. Nichols, ABA 22 Centennial Celebration FLD FOCUS 19 FLD Success COMPLIANCE CONNECTION 24 Charging Loan Origination Fees Brett J. Ashton, Krieg DeVault LLP OPERATIONS / TECHNOLOGY 26 New Entrants Cash In Mick Oppy, Vantiv HUMAN RESOURCES 28 ADA Not a Medical Leave Entitlement Statute Debra A. Mastrian, SmithAdmundsen LLC DIRECTORS / SENIOR MANAGEMENT 30 Avoiding the Pitfalls Jeffrey F. Caughron, The Baker Group PRODUCTS & SERVICES 32 Bank Insurance Offerings Rod Lasley, IBA PSP SHOWCASE 34 PSP Year-End Summary DEPARTMENTS 25 From the Board Room 29 Taking It Easy 33 Anniversary Milestones 33 IBA Employees of the Month 40 Associate Members’ Corner 41 In Memory of 42 Honorable Mentions 44 Banking Center Updates 46 Banking on Community 48 Bankers on the Move 54 Advertisers Index
6 NOVEMBER / DECEMBER 2017 Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINTS As I reflect on the events and happenings of 2017, I’m grateful to report that it’s been a good year, both for the Indiana Bankers Association and, more importantly, for our member banks. For the IBA, it’s been a good year because we made it through several milestones. We’ve experienced a smooth leadership transition, thanks to help and guidance from our capable board, engaged members and dedicated staff. We’ve moved to new offices – conveniently located near interstate access – designed with a modern flair to reflect our forward focus. We’ve launched our inaugural Banking on Women conference, opening the door to expanded opportunity for women in banking in Indiana. And we’ve updated communications, for example through the redesigned Hoosier Banker that you are now reading. On the legislative front, which impacts member banks directly, we likewise have seen success. At the state level, your IBA Government Relations Team worked hard this past session in promoting two bills and two amendments of benefit to the industry. Specifically, the bills protect appropriate lender notification when collateral is at risk through selling of personal property; and the amendments allow lenders to deliver trust documentation electronically, plus to extend the state income tax filing deadline one month beyond the federal income filing deadline. Equally important, the GR Team played active defense at the Statehouse, helping to prevent passage of legislation harmful to the industry. Among the many bills and amendments that did not come to pass, critical was the prevention of legislation that would have: enabled school corporations to file for municipal bankruptcy; enabled municipally owned water utilities to have a super priority lien for water; allowed public deposits to be invested outside of Indiana through brokered certificates of deposit; and extended the mortgage foreclosure filing fee indefinitely. Thank you for your grassroots support of the above successes, and certainly on the national level, as well. We are fortunate to be operating in an environment that in recent months has been friendlier to business, with deeper understanding of the importance of free market economics. As of this writing, a major victory was reached when the U.S. Senate voted to overturn the final rule on arbitration issued in July by the Consumer Financial Protection Bureau. The House of Representatives had already voted this summer for overturn. Now, with President Trump’s signature, the overreaching rule has been put to rest. It is a win for banks and consumers alike. Rather than help consumers, instead the rule would have encouraged the filing of frivolous class action lawsuits, to the benefit of some profiteering members of the legal profession, but not to the benefit of consumers. Worse still, costs would have increased for consumers and for banks of all sizes, as confirmed by both the U.S. Department of the Treasury and the Office of the Comptroller of the Currency in their independent analyses. Clearly the overturning of CFPB’s final rule on arbitration is good news. But here’s the catch: To paraphrase Newton’s third law of physics, it seems that for every legislative positive action, there is an equal and opposite public reaction. In other words, though the news is good for consumers, it isn’t being portrayed that way. Rather, it has defaulted to a tired metaphor – a conflict of consumers versus banks. It’s an old concept, and it’s untrue. Banks are on the side of consumers. You know that. I know that. The legislators who vote with reason know that. It’s time to let consumers know it, too. One of IBA’s goals for 2018 is to reach out more fully and deeply to the media. This year, we’ve had a couple of op-eds published in Indiana newspapers and aim to do more in the New Year. We’d also like to more effectively use social media to share good news about banks and the true story of banking. Our work is cut out for us, but just as advocacy works best with grassroots support, so does image-building. Consider what you can do to make your voice heard, whether it’s by chatting with customers, presenting at community organizations, or simply saying hello to your media contacts and offering to be a resource. And through it all, let us know how the IBA can help – our best ideas come from you. This year has been eventful and successful, thanks to our supportive members and associate members. We look forward to continuing to serve you in 2018. HB twitter.com/indianabankers facebook.com/indianabankersassociation linkedin.com/company/indiana-bankers-association facebook.com/IBAfutureleadershipdivision
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 Inaugural Banking on Women Conference Nov. 8-9 • Indianapolis Marriott North Hotel Fundamentals of Consumer Lending Nov. 13 • IBA Center Certified Teller Program: Concepts for Planning, Preparing and Preventing Robberies for all Branch Personnel Nov. 13 • Huntingburg Event Center Nov. 14 • Courtyard by Marriott, Lafayette 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 Agricultural Clinic Nov. 30 • Purdue University, West Lafayette FLD Leadership Conference Nov. 30-Dec. 1 • Omni Severin Hotel, Indianapolis Successful Business Development: Make 2018 Your Breakout Year Dec. 5 • IBA Center Lending Compliance Update Dec. 6 • IBA Center Brand Distillery - Transform Your Bank’s Brand Messaging Dec. 7 • IBA Center Internal Audit School Dec. 12-13 • IBA Center Compliance Roundtable Dec. 14 • IBA Center BSA Graduate School Jan. 10-11 • IBA Center Branch Management Series: Session I – New Year, New Start: Key Components for a Successful Year Jan.16 • IBA Center Retail Banking Forum Jan.17 • IBA Center Risk Management Officer Forum Jan.18 • IBA Center IBA Legislative Briefing and Reception Jan. 30 Tentative Community Bankers for Compliance Series - Session I Feb. 5 • The Landmark Centre, Fort Wayne Feb. 6 • IBA Center Feb. 7 • IBA Center Training the Credit Analyst Feb. 8-9 • IBA Center IRA Basics Feb. 13 • IBA Center Advanced IRA Review and Update Feb. 14 • IBA Center IT and Operations Officer Forum Feb. 14 • IBA Center • Group 1 Feb. 15 • IBA Center • Group 2 Chief Financial Officer Forum Feb. 20 • IBA Center • Group 1 Feb. 23 • IBA Center • Group 2 Senior Lender Forum Feb. 21 • IBA Center • Group 1 Feb. 22 • IBA Center • Group 2 Advanced Commercial Lending School Feb. 22-23 • IBA Center Marketing Directors Forum Feb. 27 • IBA Center Bonds 101 Feb. 28 • IBA Center 2018 Mega Conference May 1-3 • Indiana Convention Center VIDEO BONUS See how IBA’s Brand Distillery workshop on Dec. 7 can help clarify your brand, increase your reach, and transform marketing outcomes to business growth. Click on the video icon above in HB Digital.
8 NOVEMBER / DECEMBER 2017 BOARD REVIEW Michael C. Rechin Northeast Region Director Indiana Bankers Association President and CEO First Merchants Corporation, Muncie Next year, First Merchants Corporation celebrates 125 years of community banking service, and it’s a point of pride for our company to have been an integral part of the community for so long. First Merchants, along with Ball Corporation, Ball Memorial Hospital and Ball State University, also helped build Muncie and surrounding areas, serving as the bedrock of the greater Delaware County community. This year, 2017, the Indiana Bankers Association marked its 120th anniversary. As a recent addition to the IBA board of directors, I am honored to be part of two longstanding organizations. It’s a wonderful opportunity to become more closely connected with the Indiana banking community. When I joined First Merchants over 11 years ago, I saw very quickly that people, like the late Mike Cox, our former president/CEO, got great value from the IBA, as did First Merchants as an institution. Mike made it a priority to be involved. This year that lesson was reinforced when iAB was joining with First Merchants. I saw firsthand that Mike Marhenke, iAB’s president and CEO, felt as strongly about the Association as did Mike Cox. So when Amber Van Til asked me if I could see a way to add value by way of being on the board, I jumped at the chance to serve this organization that serves the banks of Indiana.* Banking has always been a comfortable fit for me. I began my career in sales after graduating from Miami University of Ohio. My major was in English, and I wanted to add to my training, so I went back to Miami University at night to take business and finance classes. I liked the classwork and, with encouragement from my wife Debbie, completed my MBA. It was the right thing to do, because it led to my career in banking, which I fell in love with from the start. Now, 35 years later, I’m still doing it and still loving it. What I enjoy most about banking is that it’s fast. When you rise to the kind of broad position that I’ve been fortunate enough to get to, everything moves quickly. It’s fast-changing, and I enjoy the challenge. I also appreciate that banking plays a critical role in the formation of our economy. One of the first things I felt, early in my career, is that banking plays such an important role in the drive of any economy. Through the years, it’s all become even more fast-paced. There’s considerable pressure, because the technology changes quickly, and the client aspect keeps changing. Customers want more and more delivery channels, so we need to adapt and constantly be open to change. The changes go beyond clients to employees, too. Young professionals want their career paths to be clear to them very early, which also puts pressure on banks as employers. I welcome the pressure, though. One thing I like to do is lead by example. That means willingness to be involved in any aspect of the business where I can help. At this point in my career, as president/CEO of First Merchants Corporation, much of what I do is eliminate obstacles, so that our people can be successful. Though our company has grown substantially, we’ve remained nimble and easy to navigate. So I can see when there are blocks holding people up from being great at their jobs, or from being great at serving their clients. It’s my job to get into the mix, identify what needs to change, and then make it happen. Making decisions with ethics and integrity is a big part of the leadership of any organization. It’s natural for people to look for their leaders to make ethical decisions. It’s important to lead by example, and be willing to get in and get the work done. My advice to anyone new to this profession is to think about what banking means. It’s a noble profession. It adds value. It’s one of the critical elements that helped drive our economy back into gear following the financial crisis of 2008. Banking continues to drive the gears of our economy – at the local, state and national levels. The industry does so much good. We, as bankers, help consumers and businesses, and I’d encourage young bankers to feel pride in that. Young people have always had lofty aspirations, and banking can fulfill them. A handful of years ago, coming out of the recession, banking seemed to be a bit out of favor. Now I find that, even with more choices available, there are a lot of young people who see banking as a great place to get a broad, pragmatic education. It’s parallel to what the IBA does. The IBA does great things in the training function, helping people advance their skills. I’m fortunate to be part of both First Merchants and the IBA. It’s leadership at two levels – the banks of Indiana help lead and strengthen their communities, and the IBA helps banks succeed. We work together to help brighten the future of each of our cities, towns and counties. HB Branch Management Series Congratulations to Larissa Phelps of The Friendship State Bank, who completed the Indiana Bankers Association Branch Management Series in August. * Michael C. Rechin was appointed to the IBA board following the July merger of iAB Financial Bank into First Merchants Corporation, filling a position previously held by Michael C. Marhenke.
Hoosier Banker 9 Congratulations 2017 Graduates from Indiana We congratulate you on completing the rigorous 25-month program and joining the more than 20,000 alumni who have gone on to leadership positions in their organizations, associations and the financial services industry. Best wishes for continued success! 5315 Wall Street #280, Madison, WI 53718 | Ph. 800-755-6440 | Please visit gsb.org Educating Professionals, Creating Leaders Faith Allen The Fountain Trust Company Covington Kandra Conley Wayne Bank & Trust Co. Cambridge City Danielle Conner Owen County State Bank Spencer Ryan Cook Mutual Savings Bank Franklin Chris Crabb Bank of Wolcott Seth Hoagland The Fountain Trust Company Covington Jeff Kiger Tri-County Bank & Trust Company Roachdale Bryan Miller Greenfield Banking Company Greenfield Jon-Myckle Price Security Federal Savings Bank Logansport Justin Ratz Federal Home Loan Bank of Cincinnati Brookville Sherri Reagin North Salem State Bank Geoff Smith The Fountain Trust Company Covington Kelly Stephenson Security Federal Savings Bank Logansport Lee Thomas The New Washington State Bank Charlestown Eric Todd First Federal Savings Bank Huntington Kyle White First Bank of Berne Sponsored by:
10 NOVEMBER / DECEMBER 2017 COVER STORY IBA Annual Washington Trip 2017 Hoosier bankers on the Hill Article author Dax Denton Senior Vice President- Government Relations Indiana Bankers Association ddenton@indianabankers.org @ibagovrelations This fall, member bankers of the Indiana Bankers Association traveled to our nation’s capital to speak up for the industry. Nearly 80 participants joined together Sept. 24-26 for the 2017 IBA Annual Washington Trip. During our packed schedule, IBA bankers received briefings from the American Bankers Association and Independent Community Bankers of America; met with representatives from the Consumer Financial Protection Bureau, Federal Reserve, Office of the Comptroller of the Currency and U.S. Department of the Treasury; and held legislative meetings with all Indiana congressional members and both U.S. senators on the Hill. There was much to cover. Current topics on the national landscape cover a wide range of issues, including tax reform, regulatory relief, cybersecurity/ data breaches, Volcker Rule reform, Basel III regulatory simplification, home mortgage disclosure rules, and responsible innovation regarding fintech and other technological advances. Also of interest is the outcome, yet to be determined of industry-advocated legislation: the CLEAR Relief Act, the Financial CHOICE Act and the Regulatory Accountability Act. Day 1 of the Washington Trip began with preparatory briefings from the ABA and ICBA, during which representatives presented background updates on pertinent federal issues and proposed regulations. Following these briefings, our bankers then met with the representatives of various regulatory agencies for in-depth issues review. The second day of the trip was allocated to meeting with the offices of the Indiana Congressional delegation. The large number of bankers on this year’s trip certainly made a positive impact on the regulators and the members of Congress, as a big showing speaks to the level of commitment of the Indiana banking community. One of the benefits of the trip is the networking, both with fellow bankers and with legislators. On the first evening, bankers networked with each other while enjoying a “Monuments by Moonlight” tour of the city’s highlights. The second evening, bankers convened over
Hoosier Banker 11 dinner with U.S. Representatives Jackie Walorski, Larry Bucshon, Trey Hollingsworth and Todd Rokita. Rep. Walorski spoke to the group on the topic of tax reform. Overall, the business mood in Washington is changing favorably, and we now stand at the cusp of potential regulatory reform. However, it will not happen on its own, so we urge all of our members to stay engaged. Please read IBA advocacy messages, take part in action alerts, and consider how to carry over your involvement into 2018. Your industry needs your support. Just as prudent savings habits for individuals must continue through good times and bad, so it is that industry advocacy never stops. In today’s promising political environment, we need to remain vigilant, alert and prepared to speak up for our industry. Thank you to all the members who made the 2017 IBA Annual Washington Trip a success. HB DC Trip Participants Thank you to those who made the 2017 IBA Annual Washington Trip successful. Click the hand icon above in HB Digital to view a list of the IBA Annual Washington Trip participants. PHOTO CAPTION: Indiana bankers gather on the Hill.
12 NOVEMBER / DECEMBER 2017 Thank you to the following sponsors of the 2017 IBA Annual Washington Trip: American Bankers Association Independent Community Bankers of America Bose McKinney & Evans LLP WASHINGTON TRIP PHOTO GALLERY Equias Alliance Federal Home Loan Bank of Indianapolis Krieg DeVault LLP Renninger & Associates LLC SmithAmundsen LLC DC Trip Sponsors HB Digital: Click to view additional photos from the IBA Annual Washington Trip.
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
The New Frontier Recap of 2017 IBA Annual Convention ARTICLE SPOTLIGHT
Hoosier Banker 15 With a theme of “The New Frontier,” the Indiana Bankers Association 2017 Annual Convention forged into the future, Sept. 10-12 at French Lick Resort. More than 400 attendees gathered for the annual meeting of educational offerings, official association business proceedings, and camaraderie in abundance. Events began with a golf outing at the famed Donald Ross Course. It was a beautiful day to enjoy the outdoors. Congratulations to the winning golf team from The First National Bank, Monterey: Clip, George and Mark Wamsley; and Kevin Crawford. The team members generously donated their earnings from the win to the Indiana BANKPAC. Opening day continued with a relaxing Wild West welcome party, as guests mixed and mingled wearing cowboy boots and hats, enjoyed down-home barbecue, and swayed and danced to a country music band. Some of the braver attendees completed the experience by testing their mettle against a mechanical bull. The next two days saw an impressive display of educational events, covering topics ranging from consolidation trends to technological disruption to differing generational mindsets. Monday morning, the IBA was honored to have U.S. Rep. Trey Hollingsworth, a member of the House Financial Services Committee, give a congressional update. Presentations also were made by leadership from the American Bankers Association and the Independent Community Bankers of America. IBA Chair Annette M. Russell, Security Federal Savings Bank, Logansport, led the Monday luncheon business meeting, including proceedings for election of officers for 2018. She also gave an update on the status of the Association, including legislative success, a summary of educational programming and events, and growth of the IBA Future Leadership Division. Also at the Monday luncheon, Dax Denton, IBA senior vice president-government relations, presented the 2017 IBA Legislator of the Year award to Rep. Tom Washburne, in recognition for his support of legislation favorable to the growth of the industry and the communities they serve. Washburne has announced his retirement from the Indiana Statehouse, but will continue in his professional capacity as corporate counsel of Old National Bancorp in Evansville. A highlight each year at Convention is the Future Leadership Division silent auction, held to raise funds for the Indiana BANKPAC. This year’s event was a success, raising more than $22,000. Combined with mulligan sales from the golf outing, plus dollars brought in through the annual sweepstakes, the total contributions made to the Indiana BANKPAC through Convention activity came to more than $75,000. Another highlight at this year’s Annual Convention was the Tuesday lunchtime keynote by noted economist Dr. Stephen Happel. Bankers paid rapt attention as Dr. Happel presented on the economy and the diverse factors contributing to it. After breakout sessions Tuesday afternoon, the Convention rounded out with the traditional closing banquet. Past IBA presidents/chairmen were recognized for their contributions to the Association. Members of the IBA 40 Year Club also were recognized, and new club members were given lapel pins. Additionally at the banquet, Chair Annette Russell was honored with a Circle of Corydon award from Gov. Eric Holcomb. The award, presented by Thomas C. Fite, director of Christina M. Bennett, CMP Vice President- Meetings & Events Indiana Bankers Association cbennett@indianabankers.org @cbennettin
16 NOVEMBER / DECEMBER 2017 the Indiana Department of Financial Institutions, recognizes exemplary citizens who have made remarkable contributions to the betterment of Indiana. Per tradition, the leadership gavel was passed to 2018 Chairman Clay W. Ewing, German American Bancorp Inc., Jasper. He then addressed the audience and recounted IBA achievements over the past year, including the move to new offices, the planning of the first Banking on Women conference, and the groundwork set for IBA Leaders in Banking Excellence awards. He also highlighted developments to come: An important function of each IBA Annual Convention is to conduct official business. On Sept. 11, new officers for 2018 were elected. Also at the meeting, IBA Chair Annette M. Russell recognized three current directors whose board terms will be ending in December. New Officers Elected Effective Jan. 1, 2018 Chairman – Clay W. Ewing, German American Bancorp, Jasper; First vice chairman – Andrew J. Briggs, Bank of Geneva; Second vice chairman – Lucas White, The Fountain Trust Company, Covington. Other Board Elections Effective Jan. 1, 2018 Kirby Drey, Kentland Bank Gregory Inman, Scottsburg Building and Loan Association Jamie R. Shinabarger, Springs Valley Bank & Trust Company, Jasper Board Retirements Effective Year-End 2017 Kristin Marcuccilli, STAR Bank, Fort Wayne Michael L. Baker, State Bank of Lizton Dennis Wayman, State Bank of Medora Allied Solutions American Bankers Association Angott Search Group Anthem Blue Cross Blue Shield Associated Bank The Baker Group Bankers’ Bank BITS BKD, LLP BOK Financial Institutional Advisors Bose, McKinney & Evans LLP Check Printing Contract Consulting Cinnaire Corporation Crowe Horwath LLP Donaldson Capital Management Executive Benefits Network IBA Service Corporation Equias Alliance Executive Benefits Network Federal Home Loan Bank of Indianapolis Floodplain Consultants Gibson Teldata Inc. IBA Insurance Agency Inc. Independent Community Bankers of America Thank You, IBA Annual Convention Sponsors! IBA Annual Convention Elections enhanced Association communications, including statewide op-eds and more social media; increased networking and peer group opportunities; work with universities to create a banking major option for college students; and overall reach-out to the next generation of bankers through internships and other industry connections. The closing banquet would not be complete without the excitement of prize drawings. Thank you to The KeyState Companies, sponsor of the sweepstakes drawing trip for two to Europe’s Imperial Cities – Prague, Vienna and Budapest. This year’s lucky winner was Dana Huber, First Harrison Bank, Corydon. Also thank you to The SHAZAM Network, sponsor of the grand prize of exquisite diamond stud earrings. Congratulations to the winner of the drawing, Jon-Myckle Price of Security Federal Savings Bank, Logansport. And finally, the evening capped off with one-of-kind entertainment by Jon Stetson, a mentalist who dazzled the audience. The 2017 IBA Annual Convention marked a successful step into The New Frontier. Please plan to join us at next year’s gathering, Sept. 9-11, 2018, in French Lick. HB Infotex Investors Title Insurance Company K4 Architecture + Design Keefe, Bruyette & Woods The KeyState Companies Krieg DeVault LLP Lee & Mason Financial Services Matrix Integration Monroe Shine & Co. Inc. NewGround PCBB Plante Moran ProBank Austin Profit Resources Inc. Promontory Interfinancial Network LLC Renninger & Associates LLC The SHAZAM Network SmithAmundsen LLC TIB-The Independent BankersBank Title Center of Indiana LLC Travelers Wilmington Trust, NA Young & Associates Inc. HB Digital: Builders of Indiana Banking Dedicated professionals have made the Indiana banking community strong and vibrant. Please click the names of lists at right in HB Digital to view, or visit indianabankers.org/about: • IBA Past Presidents/Chairmen • IBA 40 Year Club Members Note: For hard copy printouts, please email HB@indianabankers.org, or call 317-387-9380. ARTICLE SPOTLIGHT
Hoosier Banker 17 Access a full gallery of Convention photos by clicking on the dates below in HB Digital online: • Day 1 – Sept. 10, 2017 • Day 2 - Sept. 11, 2017 • Day 3 - Sept. 12, 2017 HB Digital: Convention Photos Online
Linda Lease 317.504.2007 Indiana Jeff Niesen 608.577.8081 Midwest Brad Stamper 608.829.5540 Midwest Mark Wade 317.523.4342 Indiana www.BankersBankUSA.com Madison, WI • Des Moines, IA • Indianapolis, IN • Springfield, IL Member FDIC • Equal Housing Lender Expand your horizons with new loan products. Meet the challenges of non-conforming rural properties with Rural Residence Plus — a solution for qualified applicants who wish to purchase or refinance a property that might include minor agricultural activities such as hobby farms, small orchards, or other limited income production. Developed and serviced by Bankers’ Bank, you have the option of collecting payments at your bank, maintaining your customer relationship. Call or visit our website to learn more. Always your partner, never your competitor.™
Hoosier Banker 19 FEATURE {CECL is coming.} Are you ready to implement FASB’s final standard relating to the financial instruments impairment project (CECL)? CECL is arguably the largest change in accounting for financial institutions in the last 30 years and has widespread implications for the industry. Watch our on-demand webinar to prepare, access our new CECL Guide, and download our suggested timeline for implementation now. Download the complimentary guidebook now: cecl.plantemoran.com Rob Bondy robert.bondy@plantemoran.com Steve Schick steve.schick@plantemoran.com A higher return on experience. The Indiana Bankers Association Future Leadership Division has had another successful year through the work of the FLD board and the leadership of current chair, Kristin Marcuccilli of STAR Bank, Fort Wayne. The organization currently lists a staggering 195 bankers as members of the organization, and this number continues to grow. By the close of 2017, the FLD will have hosted six events, with more member opportunities to come in 2018. The Future Leadership Division started off the year by hosting the FLD Day at the Statehouse. This award-winning single-day program was initiated two years ago to reflect the FLD’s commitment to enhancing IBA advocacy by engaging in the legislative process. This year’s event drew 55 bankers from across the state for a crash course in the legislative process. It also provided FLD members with an opportunity to speak in a unified voice at the Indiana Statehouse regarding policies that impact the banking industry. In May, the FLD hosted a networking reception in conjunction with the IBA Mega Conference. The intent of this event, initiated one year prior, is to provide FLD members and potential members with an additional means of building relationships, while in attendance at Mega. By all accounts, the reception exceeded expectations, with roughly 90 people attending. It also succeeded in bringing members into the FLD. In August, the FLD piloted a regional networking luncheon program, with intent to bring mid-year networking value to members. The format included a group discussion, bringing attendees into conversation with each other on a variety of industry-related topics. Two luncheons took place through this year’s effort, one in northeast Indiana, and the other in the southwest part of the state. All told, a total of 32 FLD members attended the luncheons, representing 15 financial institutions. Given the positive feedback, the FLD plans to expand these luncheons to other regions of the state in 2018. The FLD has historically been a strong supporter of the Indiana BANKPAC, primarily through the organization’s hosting of the IBA Annual Convention silent auction and through mulligan sales at IBA golf outings. This year the FLD board helped raise $25,661 for the Indiana BANKPAC, making it a mainstay of the total support provided to the PAC. The upcoming FLD Leadership Conference promises to cap off a successful year. This is the fifth year that the FLD is hosting this marquee event. Last year, more than 70 bankers attended the two-day conference to hear from top-flight speakers on leadership development. This year’s FLD Leadership Conference, set for Nov. 30 and Dec. 1 in downtown Indianapolis, promises to bring even more value. Emerging bank leaders interested in growing their careers are strongly encouraged to attend. Details are available at indianabankers.org. As the FLD moves into 2018, the board will conduct a strategic planning meeting to determine how to further evolve the organization in coming years. As the organization continues to progress, it will be directing the industry toward the future by providing enhanced value and benefit to participating bankers across Indiana. The IBA Future Leadership Division has built a strong foundation on which to build for years to come. HB FLD Success Future Leadership Division recap 2017 Join the FLD IBA-member bankers are invited to apply for membership to the Future Leadership Division. To read more or submit a membership request, click on the icon above in HB Digital, or go to: indianabankers.org/future-leadershipdivision-membership-request.
20 NOVEMBER / DECEMBER 2017 FEATURE Cyber Ready You can never be quite sure of what tomorrow will hold. Will other natural disasters like Hurricane Harvey or Hurricane Irma devastate our communities? Will another largescale data breach compromise consumer financial information? Will hackers manage to find their way into another company’s server – or into a bank’s data? These are all questions that weigh on business leaders’ minds, regardless of the industry. We can’t escape them, but we can heed warnings, anticipate the worst and proactively develop plans to protect our customers and businesses. October was National Cybersecurity Awareness Month, but community banks are dedicated to protecting our customers’ personal and financial data today and every day. This is part of what makes our relationship banking business model so special. Customer protection is at the heart of community banks’ cyber strategy, just as it is for disaster preparedness or any other business recovery plan. We must remember that cybercriminals are sophisticated actors seeking to exploit personal and systemic vulnerabilities for financial gain. That’s why the Independent Community Bankers of America is focused on helping community bankers address the growing challenge of cybersecurity, arming them with the information, resources and partnerships they need to safeguard their institutions and their customers. As a first line of defense, ICBA is an actively engaged member of the Financial Services Information Sharing and Analysis Center (FS-ISAC) and the Financial Services Sector Coordinating Council (FSSCC). The majority of community banks are also members of FS-ISAC. FS-ISAC is the global financial industry’s go-to resource for cyber and physical threat intelligence analysis and sharing. If banks are not members of the FS-ISAC, they can share cyberthreat and mitigation information through the Department of Homeland Security’s Automated Indicator Sharing portal. Participating in these groups is key to protecting our institutions and our customers. ICBA is also a founding board member of Sheltered Harbor, an industry-led organization that is part of the FS-ISAC. It provides rapid restoration of customer account data after a cyberattack or other debilitating event. Similar to a fallout shelter, Sheltered Harbor is the answer if all other disaster recovery options have been exhausted. Community banks and financial institutions of all sizes have the opportunity to become members of Sheltered Harbor – a major step toward being prudent and poised in today’s “when, not if” cyber reality. Sheltered Harbor combines proactive, secure data storage with a cooperative recovery plan to get your customers through a major cyberattack faster than you would on your own. By storing your institution’s data in Sheltered Harbor’s industry-standard format, a peer institution or core service provider can restore account information, resulting in minimized impact to customers. Participating in Sheltered Harbor is affordable, proactive and smart. When the worst-case scenario could happen tomorrow, it’s important to know you’re not alone. You have resources and groups like FS-ISAC, FSSCC and Sheltered Harbor looking out for your bank and your customers. You also have ICBA: coordinating, advocating and communicating what you need on the cyber front. Community bankers, we are in this cyber war together. No matter what tomorrow holds, you can rest assured that ICBA is there with you every step of the way. HB Article author Camden R. Fine President and CEO Independent Community Bankers of America cam.fine@icba.org
Hoosier Banker 21 Nothing in Washington that is worth doing is easy, and tax reform is no exception. There is no doubt that our tax code needs a rewrite. As Congress’ Joint Committee on Taxation points out, since our last overhaul in 1986, our economy has nearly doubled in size, and the internet and globalization have fundamentally changed the way we do business. Today’s tax code fails to recognize these changes, puts us at a global competitive disadvantage (the combined state and federal U.S. corporate tax rate of more than 39 percent is two and three times higher than that of “competing” countries), and ultimately hinders job and economic growth. The good news is that leaders in the House, Senate and White House agree on the need for tax reform and are committed to its enactment. While that creates a solid foundation for this important effort, we all know it will take fortitude and persistence to change a tax code that now spans 74,000 pages. The American Bankers Association is strongly in favor of tax reform that strengthens economic growth and creates jobs. A stronger economy would be good for the country, our members and their customers. We have made ourselves a resource to the lawmakers and staff who are at the center of this enormous undertaking, providing analysis and expertise. We also are encouraging bankers to raise this topic in meetings with their elected representatives. Of course, like others, we have strong opinions about specific provisions, like the deductibility of interest and the tax-favored status of bank competitors. But we also know that economic growth – which tax reform is intended to spur – is priority No. 1 for our industry, and that any package put forward must be evaluated as a whole, based on its net impact on the economy, banks and bank customers. That is why we developed a set of core principles for tax reform that will serve as the basis for our comprehensive analysis of any package that emerges from the deliberations. Those principles, which are available in full on aba.com, urge policymakers to: • Lower rates for all businesses substantially – 15 to 20 percent has been proposed – to boost growth and allow U.S. businesses to be competitive in the global market. • Broaden the base and simplify the tax code to level the playing field. • Specifically eliminate favored tax treatment enjoyed by credit unions and the Farm Credit System. • Consider carefully the effects of any potential effort to limit the deductibility of interest, which could adversely impact economic growth. (The extent of tax rate reductions will be a key factor in assessing the broader impact of any changes to the deductibility of interest.) • Avoid industry-specific taxes, which would be punitive and unfair, and would slow economic growth. • Provide adequate transition time for the market and balance sheets to adjust to the new system. ABA developed these principles through an internal tax reform working group that has coordinated closely with ABA’s banker-led Taxation Administrative Committee and solicited feedback from bankers in various forums. We have highlighted the principles in communications to Capitol Hill, informing members that we will strongly support tax reform efforts that align with these principles. Our goal is to encourage a smart approach to comprehensive tax reform that can help America’s communities thrive. As a veteran of the Treasury Department in the early 2000s when tax cuts were enacted, I know this undertaking is hard -- I have the bruises to prove it. But that doesn’t mean it can’t be done. It can, and we should do everything in our power to make it happen. HB Article author Robert S. Nichols President and CEO American Bankers Association nichols@aba.com Tax Reform A hard job worth doing FEATURE
22 NOVEMBER / DECEMBER 2017 To mark its centennial anniversary, the bank hosted an outdoor celebration in June with games, prizes, refreshments, gift cards and a “dunk your banker” activity. Earlier in the year, the bank also gave away keepsake anniversary calendars featuring historic photos of the people, places and buildings of Boonville. Centennial Celebration Indiana banks founded in 1917 FEATURE This year, two Indiana banks are celebrating 100-year anniversaries. In total, more than 90 banks in Indiana have been in operation for 100 years or longer. The Indiana Bankers Association appreciates the dedication of the “centennial banks” that have helped build the strength of the Indiana banking community. The current Boonville Federal Savings Bank building, the bank’s sole office, was constructed in 1986. Boonville Federal Savings Bank Established almost 100 years to the day after the founding of its namesake town, Boonville Federal Savings Bank has for the last century been providing banking services to the citizens of Warrick County and the surrounding area. Operating from a single location at 123 N. Third St., the bank’s website states: “Since Boonville Federal is your hometown independent bank, ‘all decisions will be made within the four walls of the bank.’” Boonville Federal Savings Bank can trace its inception back to 1917, when it operated from this cherry roll top desk. Originally the bank was known as the Boonville Building and Loan Association. CentreBank, Veedersburg Originally called The Veedersburg State Bank when it opened for business on Oct. 13, 1917, CentreBank went through a name change in 1990 when the bank expended operations beyond Veedersburg into Covington. The bank has since expanded further into Kingman and Hillsboro. All of its branches, plus a drive-up location in Sterling, are located in Fountain County.
indiana.bankRkJQdWJsaXNoZXIy MTg3NDExNQ==