Clay Ewing Leading with an eye for the future HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! Recap of 2017 IBA Banking on Women Conference JANUARY / FEBRUARY 2018
Guest Speaker Christopher Thornberg — Founding Partner of Beacon Economics, LLC Who Should Attend Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar. CPE credits will be earned for your attendance. April 12-13, 2018 Destin, Florida The Henderson 200 Henderson Resort Way Destin, FL 32541 855.741.2777 Member: FINRA and SIPC www.GoBaker.com 800.937.2257 Oklahoma City, OK | Atlanta, GA Austin, TX | Indianapolis, IN Salt Lake City, UT | Springfield, IL Successful strategies require INSIGHT. The Baker Group has long been known for its proven software and products, but it takes insight to make sound, strategic decisions. For financial institutions, insight can be defined as the ability to see what others may not see. Successful financial institution managers know the importance of achieving a high-performance plan. Establishing such a plan requires not only sound data and accurate information, but also an insightful partner; The Baker Group is that partner. The Baker Group’s Interest Rate Risk and Investment Strategies Seminar was developed specifically for managers of financial institutions. Designed to meet the challenges of 2018, it is an indepth examination of current topics including: • Market Conditions and the Banking Environment • Interest Rates, Liquidity, and Balance Sheet Strategies: Everything’s a Cycle • Modeling Interest Rate Risk: Best Practices and Regulatory Compliance • Investment Strategy and Security Selection for Each Rate Environment • Municipal Bonds and the Pension Crisis: How to Develop a Process to Protect Your Portfolio • Techniques for Managing MBS to Minimize Prepay Volatility • Liquidity, Cash Flow, and the Bond Portfolio For your convenience, register online at GoBaker.com/florida. Call Skoshi Heron at 888.990.0010 for more information. Agenda Thursday Breakfast Seminar Lunch Seminar Dinner Friday Breakfast Seminar Conclusion Golf
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 JANUARY / FEBRUARY 2018 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 article submissions, advertising or other magazine needs, please send emails to HB@indianabankers.org. IBA BOARD OF DIRECTORS IBA Officers Chairman ........................................................ Clay W. Ewing, German American Bancorp Inc., Jasper First Vice Chairman........................................................................Andrew J. Briggs, Bank of Geneva Second Vice Chairman..................................... Lucas White, The Fountain Trust Company, Covington Immediate Past Chair ........................Annette M. Russell, Security Federal Savings Bank, Logansport 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 ..........................................................Kirby Drey, Kentland Bank 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 Gregory Inman ...................................................................Scottsburg Building and Loan Association Southwest Region Directors Matthew W. Howrey .......................................................................................North Salem State Bank Kent L. Parisien ................................................................................ The First National Bank of Odon Jamie R. Shinabarger ...................................................Springs Valley Bank & Trust Company, Jasper FUTURE LEADERSHIP DIVISION BOARD Kirby Drey, President .................................................................................................... Kentland Bank Melodie K. Yarnell, Vice President......................................................Jackson County Bank, Seymour Emily Boardman ........................................................................................ Crossroads Bank, Wabash Jessica Carroll ............................................................The New Washington State Bank, Charlestown Michael J. Clampitt .......................................................................................North Salem State Bank Jason L. Ernst ............................................................................First Financial Bank, NA, Terre Haute Brock C. Goggins ........................................................................................German American, Jasper Ryan Hart ......................................................................................................Lake City Bank, Warsaw J. Daniel Maddox ...............................................................................Citizens State Bank, New Castle Kristin Marcuccilli ..........................................................................................STAR Bank, Fort Wayne Jon-Myckle D. Price .........................................................Security Federal Savings Bank, Logansport Jeremy Siegle ...........................................................................................................Bank of Wolcott Billy Winter ..........................................................................................Bippus State Bank, Huntington 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 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. 102 No. 1 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 Clay Ewing: Leading With an Eye for the Future ARTICLE SPOTLIGHT 16 2017 IBA Banking on Women Conference Laurie A. Rees, IBA FEATURES 6 Vantage Viewpoints Amber R. Van Til, IBA 7 Chairman’s Report Clay W. Ewing, German American Bancorp Inc. 8 Board Review Kirby Drey, Kentland Bank 9 IBA Calendar of Events 24 The IBA Presents the 2018 Board of Directors 30 Midwest Agricultural Banking School Freddie L. Barnard, Purdue University 44 Making Things Happen Robert S. Nichols, ABA 45 Into the Breach Camden R. Fine, ICBA FLD FOCUS 20 FLD Leadership Conference Joshua A. Myers, IBA PRODUCTS & SERVICES PROFILE 28 Quality Products From FF&S Rod Lasley, IBA PSP SHOWCASE 32 Set Your Board of Directors Free Christy Rikel, CSI HUMAN RESOURCES 34 Restrictive Covenants in Indiana Debra A. Mastrian, SmithAdmundsen LLC DIRECTORS / SENIOR MANAGEMENT 36 Are Your IRR Assumptions Going Up in Smoke? Lester Murray, The Baker Group 48 What Keeps You Up at Night? Steve Brown, PCBB, and Jeff Baker, RSM US LLP COMPLIANCE CONNECTION 38 Contracting With a Government-Authorized Vendor Brett J. Ashton, Krieg DeVault LLP MARKETING / SALES 40 Facebook Advertising Michael Reynolds, Capital Point Marketing DEPARTMENTS 23 Anniversary Milestones 23 IBA Employees of the Month 27 Honorable Mentions 27 From the Board Room 31 Associate Members’ Corner 35 Banking Center Update 46 Banking on Community 47 In Memory of 50 Bankers on the Move 54 Advertisers Index
6 JANUARY / FEBRUARY 2018 Last year in this column, I thanked you for giving me the opportunity to serve the Indiana Bankers Association as president and CEO. I also listed several goals that we were aiming to accomplish during 2017. Due to your strong support of the Association, those goals have been met. One goal was to host a women’s conference in the fall. In November, we did indeed host a Banking on Women Conference, with hopes of drawing about 100 attendees to the inaugural event. Instead a crowd of 300 women joined in IBA’s first-ever women’s conference, soaking in the message of “Imagine, Believe, Achieve.” Plans are already underway for the second annual women’s conference this November. We also planned to move IBA headquarters in 2017 to a new location large enough to consolidate the main office with our government relations needs. That move took place in July, and we are now happily located at 8425 Woodfield Crossing Blvd., Suite 155E, in northeast Indianapolis. If you haven’t yet visited your new home, please come visit soon. Another goal met was staff professional development throughout 2017, with a final wrap-up scheduled in early 2018. The IBA was fortunate to work with Chorus Inc., a company recommended by Chairman Clay Ewing, and we could not have been more pleased in discovering ways to go from good to great in serving our valued members. Chorus Inc. also played into another IBA goal last year, which was to engage in strategic planning with current and past board members. This planning took place in October in a tucked-away location near Nashville, Indiana, for two productive days of intensive discussion and planning. One theme that came up, over and over again, was that bankers are hungry to “tell our story.” Which brings me to a very important goal for 2018. The IBA communications department will be reaching out to members, inviting opportunities for the IBA to create videos that tell your story of your community commitment. You have good-news stories to share, and we would like to help. Your good-news story might be a group of employees at your bank who regularly help at a local soup line. Or you might have staff who are reaching youth through financial literacy instruction. Or perhaps you have a business client whose dream came true through the loan you made and the guidance you provided. There is no end to the good-news stories of bank community commitment, and the IBA is eager to tell your story. If you have suggestions for banking stories to tell, please send them to Laura Wilson at lwilson@indianabankers.org. Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINTS Related to telling your story of community commitment is telling the larger story of industry views. Last year, the IBA distributed three op-eds to Indiana media, the most recent covering the benefits of the Economic Growth, Regulatory Relief and Consumer Protection Act, and thanking Sen. Joe Donnelly for his support of it. That op-ed was published by five Indiana newspapers. We will continue to distribute op-eds this year to make your voice heard. Looking forward, another goal for 2018 is the establishment of the IBA Leaders in Banking Excellence awards, as shown on page 3. These awards give your bank the opportunity to honor those individuals who helped lead your organization and community to excellence. Please consider who you would like to honor – a current or past president, director or other bank associate – who deserves credit for making a lasting mark on your institution. For details, please contact Rod Lasley at rlasley@indianabankers.org. Now, with our sights set on the future, a major goal for the year is helping Chairman Ewing bring to life his vision of establishing a university banking major in Indiana. He addresses that plan in the Chairman’s Report on the facing page and also in this month’s cover story. Currently the IBA is exploring ways to establish an internship program to work in tandem with the plans for a banking major. As with any organization, many of our current goals are to build upon past successes. We look forward to serving you in 2018 with a new round of familiar activities: the Legislative Briefing and Reception on Jan. 30, the Future Leadership Division Day at the Statehouse on Feb. 13, the Mega Conference May 1-3, and the many other IBA offerings you have come to know. Also looking to the future, I’d like to welcome Kirby Drey to his new role as FLD president for 2018-19. He follows in the capable footsteps of Kristin Marcuccilli, who did much to grow the FLD, which now has more than 200 members. Kirby shares some insights in his Board Review on page 8. As we embark on our goals and aspirations for 2018, I thank you again for entrusting me with this opportunity to serve you. As 2017 was my first year as president and CEO, it was a learning experience in many ways. One lesson I learned and hold dear is that I am extremely fortunate to be working with the Indiana banking community. The bankers of Indiana are the finest of professionals, who work hard every day to make the future better and brighter for others. HB
Hoosier Banker 7 Trump signed into law, a comprehensive tax reform bill – the first overhaul of the U.S. tax code in more than three decades. An advocacy win for the banking industry, the landmark legislation sets the tax rate for C corporations at 21 percent and provides a 20 percent deduction for Subchapter S banks and other pass-through entities. Other provisions of the tax reform bill include establishment of a top individual tax rate of 37 percent; elimination of the corporate alternative minimum tax; capping the mortgage interest deduction for new mortgages of $750,000 or more; retention of the low-income housing and new markets tax credits; deductibility of net interest expense limited to 30 percent of adjusted gross income for businesses, with more than $25 million in annual gross receipts; and elimination of net operating loss carrybacks, with a limitation on carryforwards. The IBA GR team will be reporting on implications for banks as details unfold. On this and other issues, such as mortgage relief and cybersecurity, the IBA will continue to advocate for enabling banks to serve their customers and communities. Please pay heed to IBA action alerts, so you can add your voice to the chorus. Another primary goal for this year – a new one – is to work toward instituting a university banking major. Indiana has outstanding universities, and we can be a national leader on this effort. This banking major, combined with an intensive internship program that the IBA is coordinating, will help to bring the best and brightest to our industry – critical for the future of banking. This year will be full and exciting as our plans unfold. Thank you for the honor of electing me to serve as your chairman. The IBA is blessed with an engaged, active membership, and I look forward to working with you in the months to come. HB Imagine being a legislator, with days and evenings packed with meetings, events, gatherings and countless other obligations. Also imagine that, as a legislator, you must cast votes on topics that you may not have a background in, but those votes will have far-reaching repercussions on the lives and livelihoods of others. Wouldn’t you want expert guidance, especially on complicated topics? This very real pressure is why our elected officials actually welcome hearing from bankers on banking topics. No one can better explain the complexities of this industry than the professionals who devote their careers to it. It’s important to recognize that legislators want to hear from us, as we consider how to be engaged in grassroots advocacy. As 2018 chairman of the Indiana Bankers Association, one of my goals is to promote a deepened sense of grassroots advocacy among members. A prime opportunity to meet with legislators and present your point of view is coming up on Jan. 30, when the IBA hosts its annual legislative briefing and reception in downtown Indianapolis. It is always a worthwhile event to attend, given the impact that legislative decisions can have on the industry. At the briefing, which starts at 4 p.m., you’ll hear a summary from IBA’s government relations team on what issues to expect to arise this session at the Statehouse, and how various pieces of legislation could impact your bank. Following the briefing is the legislative reception itself, during which you’ll have a chance to meet with and talk to the legislators who will be voting on those issues. Does grassroots advocacy work? Thanks to bankers lifting their voices, there has been recent progress on Capitol Hill. In early December, the Senate Committee on Banking, Housing, & Urban Affairs passed S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. This regulatory relief package was a bipartisan effort, and much credit goes to Sen. Joe Donnelly for garnering support for it. Among other features of the act are provisions for the rightsizing of rules that apply to community banks. Also, in a late-year legislative breakthrough, the U.S. House and Senate passed, and President Clay W. Ewing Chairman Indiana Bankers Association President, Chief Banking Officer and Secretary to the Board of Directors German American Bancorp Inc., Jasper CHAIRMAN’S REPORT Post your openings on the premier career website for the banking industry, brought to you by the Indiana Bankers Association and other state bank trade associations. BankTalentHQ.com
8 JANUARY / FEBRUARY 2018 It is an honor and privilege to serve on the Indiana Bankers Association board of directors as the 2018-19 president of the IBA Future Leadership Division. Ever since I was young, growing up on my family farm in Northwest Iowa, I knew I wanted to be a banker. After graduating high school, I attended Buena Vista University in nearby Storm Lake. I graduated with a degree in finance and economics, while also having the opportunity to work closely with my father on our family farm. I started my banking career with BB&T in Lexington, Kentucky, as a teller and then as a relationship banker. After two years with BB&T, I had the opportunity to move closer to northwest Iowa and work for ProfitStars, a Jack Henry Company based in Omaha, Nebraska. Focusing on asset liability software as a client relations specialist, I came to understand the importance of behind-the-scenes network and server configurations, accounting and financial reporting of the bank balance sheet, interest rate sensitivity, and asset liability management of financial institutions. While at ProfitStars, I conducted the installation of the software for Kentland Bank in Kentland, Indiana. This opportunity ultimately led me to a change in my career, when I accepted a position at Kentland Bank. In September 2007, I joined Kentland Bank as vice president of finance/cashier. Over the next few years, I worked within the operations department on bank financial reporting analysis and IT-related issues. During my tenure, I have been promoted to my current position of senior vice president and chief financial officer. Over the past 10 years, Kentland Bank has grown from $208 million to $300 million in total assets, with five locations serving Newton, Jasper and Tippecanoe counties. Many changes in technology have occurred, including server virtualization upgrades, remote deposit, mobile and teller capture, along with mobile and online banking platforms. It has been an exciting time at the bank, helping to implement these new technology capabilities into our banking system. Volunteerism and community involvement has also been a focus during my tenure with Kentland Bank. Currently I am president of the South Newton Junior Achievement board, president of the Kentland Chamber of Commerce, and fundraising chair for the Kentland Rotary Club. These organizations work hard to help provide the extra resources needed for our community to thrive. Throughout my career, I have found that my work ethic and values stem back to my upbringing in rural Iowa. I am thankful for the love, dedication and positive examples my parents set for our family. As the oldest of five siblings, I have had the privilege of watching my younger brothers and sisters grow, start their own families, and begin their own BOARD REVIEW Kirby Drey Future Leadership Division President Indiana Bankers Association Senior Vice President and 'LMIJ *MRERGMEP 3JƤGIV Kentland Bank career opportunities as successful athletes, business owners, teachers and bankers. I have had the opportunity to be involved with the Indiana Bankers Association, first joining the Future Leadership Division almost 10 years ago. At that time there were less than 10 members, and it has grown today to over 200. The identity of the FLD has evolved from members solely considered as next executive leaders to identifying leaders in all levels of member institutions, from front line support to top executives. The mission statement of the FLD is “Bridging Bankers, Building Leaders.” Committed to this purpose, we have implemented networking opportunities and leadership training conferences. Each year the Future Leadership Division hosts its annual leadership conference. During the conference, attendees have access to motivational and leadership speakers, as well as the opportunity to network. The FLD also works to provide bankers with additional resources outside of their current institutions. We look to add value to your bank and your bankers through the Future Leadership Division. For example, in 2018 we will grow our regional networking lunches from two meetings to four, in an effort to provide more networking opportunities in each of our four regions of the state. In February, as part of the IBA’s strategic planning process, the FLD will participate in a planning session that will ultimately align with an important strategic pillar for the IBA – the cultivation and retention of emerging leaders in community banking. Our current Future Leadership Division board is excited for this opportunity and is ready to take our organization to the next level. HB Brock C. Goggins, senior vice president-head of retail banking of German American, Jasper, has been named to the board of directors of the Indiana Bankers Association Future Leadership Division. He joined German American in 2016 and has been working in financial services since 2009 in retail and consumer banking roles, including serving as vice president, district manager, for a regional bank. Goggins serves on the board of USO of Indiana as vice president. He is a graduate of Hanover College and currently is attending the Graduate School of Banking at the University of Wisconsin. Goggins Joins FLD Board
Hoosier Banker 9 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 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. 24 • IBA Center Measuring Financial Conditions and Performance for Ag Business Jan. 25 • IBA Center IBA Legislative Briefing and Reception Jan. 30 • Indianapolis Marriott Downtown 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 IBA Future Leadership Division Day at the Statehouse Feb. 13 • Hyatt Regency Indianapolis Hotel 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 Bonds 101 Feb. 28 • IBA Center Marketing Directors Forum March 6 • IBA Center Indiana Deposit Account Administration March 6 • The Landmark Conference Center • Fort Wayne March 7 • IBA Center HR Directors Forum March 8 • IBA Center Construction Lending: Commercial and Residential March 14 • IBA Center CRE Appraisals: Reviewing and Interpreting March 15 • IBA Center IBA Leadership Development Program March 19-22 • Wooded Glen Retreat and Conference Center • Henryville Home Mortgage Disclosure Act March 20 • IBA Center Community Reinvestment Act March 21 • IBA Center Branch Management Series: Session 2-Leading, Developing and Engaging the Team April 17 • IBA Center 2018 Essentials of Banking: Session 1 - Banking 101 April 18 • IBA Center Annual Security, Fraud & Risk Management Conference April 18-19 • Location TBD Mega Conference May 1-3 • Indiana Convention Center
10 JANUARY / FEBRUARY 2018 COVER STORY Clay Ewing Leading with an eye for the future Clay W. Ewing 2018 Chairman Indiana Bankers Association Serving the Indiana Bankers Association as 2018 chairman of the board is Clay W. Ewing, president, chief banking officer and secretary to the board of directors of German American Bancorp Inc., Jasper. A banker for more than 35 years, Ewing began his career in the accounting field, out-of-state, before meeting an opportunity to join banking when he and his wife Barbara returned to their hometown of Tell City, Indiana, in 1978. At that point Ewing received a job offer from Citizens National Bank, which he served for more than 15 years, eventually as executive vice president. In 1994 he joined German American as president and CEO of a subsidiary bank of the company. Ewing is very active in regional economic development. He is chairman of the Perry County Development Corp., an executive board member of the Economic Development Coalition of Southwest Indiana, and serves on various other civic and community boards. For the IBA, he has served on the board as first and second vice chair and as a southwest region director. Ewing is a graduate of Lockyear College and of the School for Bank Administration at the University of Wisconsin. Barbara Ewing, Clay’s wife of more than 40 years, likewise is extremely civic-minded, having recently completed two terms of service as mayor of Tell City and over 30 years as an elected official. She now dedicates her time to the Ewings’ three grandchildren, ages five to 11, while continuing to volunteer for numerous civic and not-forprofit organizations. Daughter Micki Kidder lives with her husband and children in South Bend, where she is an associate vice president of development at the University of Notre Dame. The Ewings’ son Matthew and his wife live in Boise, Idaho. Coincidentally, Matthew’s line of work is similar to his sister’s; he is an associate vice president of development at Boise State University. Hoosier Banker recently interviewed Clay Ewing about his career and plans for the IBA during his chairmanship. Why did you choose banking as a career? “Ironically, I did not originally choose banking as a career path. When I graduated from college, we had a family business, but it wasn’t really what I wanted to do. My degree was in accounting, and I was interested in finding something along those lines. “My mother suggested I apply for a job at one of the local banks. She told me, ‘You will have a job for the rest
Hoosier Banker 11 of your life, and you’ll be able to help improve peoples’ lives.’ Tell City is a small town, and at that time, when you worked at a bank, it was a 40-year career, all at the same institution. “With my accounting degree in hand, I applied with Citizens National Bank, one of two local institutions. Unfortunately they did not offer me a job. I am not certain if it was because I wasn’t qualified, or because they didn’t have a position! “So Barbara and I were married and moved to Atlanta, Georgia, where I worked in the accounting department for Swift Food Service. It was a wonderful learning opportunity. Later we moved to Huntsville, Alabama, where I continued to work in the accounting department for Swift. “Barbara had not completed her college education, so she continued pursing her degree at Alabama A&M University. Soon after, ready to start our own family and wanting to be closer to our parents, we began thinking about moving home. “We moved back to Tell City with no real plans. We were very young and had faith something would work out. “It was then that the bank called and asked if I was interested in a position as their internal auditor. The rest, as they say, is history. I was extremely fortunate to begin my career as the internal auditor. This position allowed me to touch and learn fromevery department in the bank. “From then on, my interest in banking grew and grew. I must say, I have been truly blessed.” PHOTO CAPTION: Clay W. Ewing is president, chief banking officer and secretary to the board of directors of German American Bancorp Inc., Jasper.
12 JANUARY / FEBRUARY 2018 Please describe your responsibilities with German American. “I am president, chief banking officer and secretary to the board of directors of the bancorp. We are a one-bank holding company, so our holding company is not active from a day-to-day standpoint. “The majority of my day-to-day responsibilities lie at the bank level. As chief banking officer, I am responsible for everything that happens within our banking unit – managing, mentoring and coaching, primarily of our executive management and senior management teams. “I work closely with Mark Schroeder, our chairman and CEO, helping to set strategy for the company and visioning future growth, whether through acquisition or organic market growth opportunities.” Why are mentoring and coaching such a strong part of the culture at German American? “Professional development runs deep in German American’s culture. This is because we believe very strongly in the importance of succession planning. I give Mark credit for setting this culture. There will be a time when Mark and I retire, and our goal is that German American is prepared for whatever the future holds. “A true test of any organization’s success is to have a succession plan in place that allows the company to continue after current leadership retires. Effective planning means preparing people not only for what they know is coming, but also for what they don’t know is coming. “As organizations change and grow, responsibilities change as well, and opportunities present themselves to people who have never dreamed of or been exposed to the possibilities. We are preparing people so that, when those opportunities arise, they are ready to step in. “Each year we conduct talent assessments of our upper-level management and future leaders. We evaluate their abilities and their future growth potential. This is definitely a two-way evaluation, as the employees share with their supervisors both long- and shortterm goals, and the supervisor responds with guidance and direction towards meeting those goals. This has been a wonderful exercise that benefits both the company and the employee.” How does community service factor into your work life? “My family and I have always been extremely involved in our community. One reason I enjoy banking so much is that it allows me the opportunity to work with local organizations and to help our community prosper. In my banking career, I have been blessed over the years with support from directors and executive management who value this type of involvement. “I am a strong believer in being engaged and being active in local not-for-profit and community-based organizations. I have always been taught: As your community grows, so does your business! The only way to ensure things go in the right direction is to get involved. “But that’s only the business reason for community service. I also give back to my community for personal satisfaction. Barbara and I are very fortunate to have lived in and raised our family in our hometown, Clay Ewing confers with Melissa Hafele, executive assistant at the Jasper headquarters of German American Bancorp Inc. German American has won multiple Star Awards from the Indiana Bankers Association in recognition of the organization’s IBA involvement.
Young & Associates, Inc. Consultants to the Financial Industry HMDA Survival Toolkit — $595 Ensure that your bank's HMDA data is accurate prior to submission and that bank policies and procedures comply with the January 2018 requirements. Includes: 2018 HMDA Survival Guide: A consolidation of the 2015 Final Rule, 2017 amendments, and the Official Commentary Customizable HMDA Policy: Updated to incorporate the new requirements effective January 1, 2018 – customize to fit your bank’s policy HMDA PowerPoint Presentation: Designed to train staff on the new HMDA requirements – customize to fit your bank’s HMDA process Data Integrity: Includes the banking agencies’ transaction testing guidelines and designated key data fields Compliance Review Model: Excel spreadsheet designed to facilitate a review of your compliance with the new HMDA requirements Sample HMDA Review Report Template: Document your compliance review with this report template – edit to include the review scope, relevant findings, and recommendations regarding data integrity, as well as disclosure and notice requirements Reference Guide: Provides links to CFPB’s resources for HMDA filers and other agency information System Requirements: Microsoft® Excel 2007 and Word 2007 or higher 39 YEARS 1978 - 2017
14 JANUARY / FEBRUARY 2018 and we both want to always be giving back. “I have been involved in economic development for over 30 years. In the 1990s our small community had to reinvent itself when all of the manufacturing jobs left Tell City. Up until that time, we had a General Electric plant that, at its peak, employed 3,000 people, plus three wood manufacturing plants that employed approximately 1,500. They were all gone. “The community leaders had to be creative in bringing jobs back, and we’ve been able to do just that. We totally shifted our focus, and now Tell City has the world’s most productive gray and ductile iron foundry, and is a major employer for the region. This company primarily manufactures parts for the automotive industry. We have also been successful in attracting ancillary companies, which support the automotive industry. “From a local, regional and state perspective, being involved is one of the most important things anyone can do. Fortunately, our children have inherited this trait, and Barbara and I are proud to say that both of our children carry a deep belief in being philanthropic.” What goals do you envision for the IBA in 2018? “I have big plans for the IBA in 2018. One of my primary goals is to create curricula in higher education that focuses on banking. We’ve had numerous conversations with major universities in Indiana. These meetings have been with university presidents, business school chairs and various other university educators, and have been very productive, with strong interest. “The feedback has been tremendously positive. The key is to understand what the universities and educators are looking for but, most importantly, what the students are looking for. The aim is to show young adults that banking is a wonderful career – it is rewarding personally, professionally and financially. The more exposure we can provide, the more we can bring in talent to help resolve the succession challenges that many community banks face. “This first goal leads into a related goal of establishing an internship program. One part of the banking curriculum would include a two-year internship component. Details are open for discussion, but the long-term view is to provide exposure to students, so they will view banking as a true career path. “An overall goal for the IBA is to continue growing our political action involvement. We need more people attending the IBA Annual Washington Trip, and we need more people engaging in meaningful grassroots communication with their legislators. “Bankers should be meeting with legislators and having a dialog with them on a regular basis. This provides a platform to tell our story … the story of bankers assisting the citizens and small businesses in the legislator’s district. “It takes time to elevate engagement to have more personal contact with legislators, and it can be difficult to convince people that the effort really is worthwhile. Being active in different IBA events, such as the Future Leadership Division Day at the Statehouse, the annual IBA legislative briefing and reception, and the DC trip are ways to solidify relationships and, therefore, add value when reaching out to our elected officials to discuss current or changing legislation. “Generally for grassroots advocacy to work, there is no single activity that will create the desired results. The IBA must continue offering multiple activities and create an environment that promotes advocacy within the political arena.” How can bankers maximize the benefits of IBA membership? “Members can maximize the benefits of being an IBA member by becoming more engaged. One way is to allow your employees to utilize the IBA’s tremendous educational offerings and opportunities. “And from a government relations perspective, bankers can become engaged in the annual legislative briefing and reception at the beginning of each legislative session, and by attending the summer regional meetings held throughout the state. The connections made and relationships built, not only with legislators, but with bankers, allow us the opportunity to pick up the phone, call one of our banking peers and say, ‘I’m challenged with this issue, how do you handle it within your institution?’” How has the IBA served you in your career? “The IBA has helped with my career development mainly through affiliation with leadership of the Association, other bankers and our elected officials. My involvement in the IBA has been more engaging for the last 10 years, from participating in educational programming to peer interaction. “It’s very helpful, as we manage our individual institutions, to share best practices with peers and to gain a better understanding of how the industry is moving. The IBA has definitely been instrumental in my career development, and for that I am more than willing to serve in any way possible in an effort to assist future Indiana bankers.” HB Family photos are on proud display in the office of Clay Ewing.
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16 JANUARY / FEBRUARY 2018 ARTICLE SPOTLIGHT 2017 IBA Banking on Women Conference Imagine. Believe. Achieve. The Indiana Bankers Association hosted its first annual Banking on Women Conference in November 2017. The inaugural conference provided an opportunity for Indiana women in banking to unlock potential, build confidence and chart a course to owning the future.
Hoosier Banker 17 Imagine. Believe. Achieve. The Indiana banking community imagined it, believed it could be done, and achieved the first-ever Indiana Bankers Association Banking on Women Conference. This inaugural event took place Nov. 8-9 in Indianapolis, drawing a crowd of 300, far surpassing our goal of 100. Inspiration, warmth and camaraderie defined the spirit of the conference, as female bankers from every corner of Indiana gathered for two days of presentations, networking and lifelong relationshipbuilding. Events began at 1 p.m. on Wednesday, Nov. 8, with opening remarks from Annette Russell, 2017 chair of the IBA – the first female to hold that position – and Amber Van Til, IBA’s first female president and CEO. Presentations then kicked into high gear with audienceparticipatory sessions. Topics included: understanding emotional intelligence, cracking the communications code and embracing disruption. Notable about the event was the high level of engagement from attendees, who spoke up, asked questions and became part of the presentations. Though the conference room was filled to capacity, this interaction gave the event an intimate feel. During the evening network reception, guests caught up with friends and made new ones, while perusing an inviting display of auction items, set up as a fundraiser for Girls on the Run, a transformational learning program for girls ages 8 to 13. Following the reception were dine-around outings at several choice restaurants, extending fellowship well into the evening. Early Thursday morning, Nov. 9, some attendees took part in rise-and-shine yoga for a wake-up workout. Shortly after, everyone gathered for a day-starting Laurie A. Rees Vice PresidentEducation & Training Indiana Bankers Association lrees@indianabankers.org @Laurie1107 Thank You, Sponsors BKD, LLP Crowe Horwath LLP Federal Home Loan Bank of Indianapolis The First National Bank of Odon Graduate School of Banking at the University of Wisconsin IBA Group Insurance Trust IBA Insurance Agency Inc. Thank you to the sponsors whose support made the inaugural IBA Banking on Women Conference possible: breakfast and then convened to the meeting space for a full day of quality programming. Juli Lynch, a popular presenter from the IBA’s Leadership Development Program, captivated the audience with her harrowing-yet-inspiring “pushing the limits” experience of embarking on an eco challenge in Australia with U.S. Navy SEALS. Her message was to take fears along while forging into new opportunities, rather than be sidelined by doubt. Other speakers throughout the day built upon this leadership messaging, encouraging women to create their own brand, be champions of diversity and mentorship, and rise to challenges. A session on business finesse – saying and doing the right thing at the right time – rounded out the day with an entertaining presentation on clothing, style and business etiquette. At the close of the day, Juli Lynch showed photos captured throughout the two-day conference, while reviewing and summarizing the plentiful highlights. Attendees also were treated to the good news that the silent auction raised $2,925 for Girls on the Run programming. Additionally, each attendee went home with gift bags full of coupons, perfume samples and other merchandise, and several won fabulous door prizes. Many thanks to the attendees, speakers and sponsors who made the dream of the Banking on Women Conference a reality. Also, thank you to the bank leaders who encouraged their associates to attend and make the event a success. This year, the second annual IBA Banking on Women Conference is to take place in early November. Please be on the lookout for details for another don’tmiss event. HB IBA Service Corp. Infotex The KeyState Companies Krieg DeVault LLP Lake City Bank, Warsaw Plante Moran Profit Resources Inc. SmithAmundsen LLC
18 JANUARY / FEBRUARY 2018 CONFERENCE PHOTO GALLERY HB Digital: Access all photos from the 2017 IBA Banking on Women Conference by clicking online on the dates below: • Day 1 – Nov. 8 • Day 2 – Nov 9
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20 JANUARY / FEBRUARY 2018 FLD FOCUS FLD Leadership Conference
Hoosier Banker 21 Article author Joshua A. Myers Executive & Government Relations Coordinator Indiana Bankers Association jmyers@indianabankers.org The Indiana Bankers Association’s Future Leadership Division has furthered its mission of building the next generation of banking professionals through the success of the 2017 FLD Leadership Conference. Held Nov. 30 through Dec. 1, the conference took place in downtown Indianapolis at the Omni Severin Hotel. Nearly 90 participants took part in the conference’s educational and networking opportunities. The FLD Leadership Conference kicked off on Thursday, Nov. 30, with registration and lunch for all attendees, providing pre-conference networking time for attendees. Following lunch, 2016-17 FLD board President Kristin Marcuccilli, STAR Bank, Fort Wayne, provided introductory remarks and encouraged those who were not currently FLD members to sign up for membership. She then introduced Kevin Kush, the opening speaker of the event. Kush, a former football coach who had been featured as Person of the Week on ABC World News Tonight, discussed eight traits that can turn any organization into a cohesive, high-performing team. Among other traits, Coach Kush covered the ability to exhibit selfless behavior, show respect, be accountable and adapt to change. Next up was Fredricka Joyner, Ph.D., of the firm ADVISA. A senior leadership and organizational development consultant, Dr. Joyner discussed the challenges of creating an engaging work culture, and provided four “engagement dials” that leaders can use to turn up the volume on workplace engagement. To round out the afternoon, this year’s conference featured the addition of roundtable discussions. Topics covered included marketing, retail/delivery operations and commercial lending, allowing attendees to break out into groups of varying banking interests to network with peers and exchange ideas and experiences. Thursday night shifted from intensive leadership and professional development time to a period of relaxed networking and team-building activities. A reception marked the start of evening events, followed by a well-received “Taco Thursday!” During dinner, participants divided into teams for the first-ever FLD Trivia Night competition, hosted by FLD President Marcuccilli and FLD board member Andrew J. Saner, MainSource Bank, Greensburg. Competition and laughter ruled the night, as teams tested their knowledge on topics such as cartoons, commercials, U.S. presidents and more. On Friday, the second day of the conference, Indiana Department of Financial Institutions Director Thomas C. Fite spoke on the current state of Indiana banking. Director Fite provided his helpful insight on the industry and answered questions for participants. Immediately following, Erick Rheam leveraged his skill and training gained from his experience as a former military police officer and special investigator in the U.S. Army to teach body language interpretation and technique. His presentation provided attendees with common mistakes professionals can avoid. The final presentation of the conference belonged to Karim R. Ellis, a dynamic motivational speaker, who energized the crowd with seven unforgettable core principles that unlock greatness in every facet of life to break through hidden boundaries that keep most people stuck. His unique presentation was an excellent finale to the 2017 edition of the FLD Leadership Conference. Overall, the conference was a smash hit with attendees and has received outstanding reviews among those who attended. The IBA appreciates all of the bankers who took time to attend and make the event a success. Furthermore, the IBA is grateful for the event sponsor, Krieg DeVault LLP, and other associate members which provided tremendous sponsorship support. The IBA Future Leadership Division is a valuable asset to Indiana’s banking industry, and we strongly encourage you to become involved. The next FLD event, FLD Day at the Statehouse, is coming up on Feb. 13. Please consider attending this IBA grassroots advocacy event, and also look into the benefits of becoming a member. HB HB Digital: Click to view full gallery from the FLD Leadership Conference.
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