Table of Contents 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

2018 Vol. 102 No. 2

Rep. Trey Hollingsworth Bringing business sense to Washington, D.C. HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! IBA Legislative Day 2018 MARCH / APRIL 2018

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 MARCH / APRIL 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: Q Maintain the highest ethics, integrity and respect for others; Q Serve with professionalism, innovation and resourcefulness; Q Instill passion, positive attitude and enthusiasm; Q 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 -&% 3JƤGIVW 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 Scott Carr .............................................................................................First Savings Bank, Clarksville 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 Crystal Taylor-Baker ..............................................................................Old National Bank, Evansville 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 Staff Accountant..............................................................................................................Timothy Fry Technology Manager ....................................................................................................... Tracy Kubly Administrative Assistant ...............................................................................................Michelle Long DIRECTORS & STAFF

Hoosier Banker 5 CONTENTS Vol. 102 No. 2 ;SSHƤIPH 'VSWWMRK &PZH 7YMXI ) 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 XLI ƤVWX HE] SJ XLI QSRXL TVIGIHMRK publication, and submit artwork by the ƤJXL SJ XLI QSRXL TVIGIHMRK 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 MW XLI ƥEKWLMT TYFPMGEXMSR SJ XLI -RHMERE 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 6IT 8VI] ,SPPMRKW[SVXL QIIXW ,SSWMIV LSQIWGLSSP JEQMPMIW EX E VSYRHXEFPI HMWGYWWMSR SR XLI FIRIƤXW SJ school choice during National School Choice Week. COVER STORY 10 Rep. Trey Hollingsworth Bringing Business Sense to Washington, D.C. ARTICLE SPOTLIGHT 16 Legislative Day 2018 Dax Denton, IBA FEATURES 6 Vantage Viewpoints Amber R. Van Til, IBA 7 Chairman’s Report Clay W. Ewing, German American Bancorp Inc. 8 Board Review Jamie R. Shinabarger, Springs Valley Bank & Trust Company 9 IBA Calendar of Events 32 Gimme Shelter Camden R. Fine, ICBA 34 Textbook Advocacy Robert S. Nichols, ABA 36 State Deposits in Indiana Financial Institutions FLD FOCUS 20 FLD Day at the Statehouse Joshua A. Myers, IBA DIRECTORS / SENIOR MANAGEMENT 22 Look Before You Leap Lester Murray, The Baker Group 38 Best Practices to Grow Your HELOC Portfolio David Carlson, Haberfeld Associates HUMAN RESOURCES 24 Spoliation Issues Debra A. Mastrian, SmithAdmundsen LLC PSP SHOWCASE 26 New Tax Law Tom Edmiston, Cinnaire Corporation PRODUCTS & SERVICES PROFILE 28 Expand Your Services Rod Lasley, IBA COMPLIANCE CONNECTION 30 Public Depository Brett J. Ashton, Krieg DeVault LLP DEPARTMENTS 25 IBA Employee of the Month 29 Anniversary Milestones 35 Banking Center Updates 40 Associate Members’ Corner 42 Banking on Community 44 Taking It Easy 45 Honorable Mentions 46 From the Board Room 48 In Memory of 50 Bankers on the Move 54 Advertisers Index

6 MARCH / APRIL 2018 Each year in Hoosier Banker, we share a cover story profile of a public servant – someone either elected or appointed into office to serve the common good. In this issue of the magazine, it is our honor to present a profile of Rep. Trey Hollingsworth, who has been serving in the U.S. House of Representatives since early 2017. A small businessman by profession, Rep. Hollingsworth understands the important connection between a healthy banking industry and a strong business environment. He also respects the need for organizations of all sizes – in both banking and business – to keep the economy moving. A newcomer to Washington, Hollingsworth brings refreshing common sense to the halls of Capitol Hill. Also in this issue of Hoosier Banker, we recap a couple of our landmark events – the IBA Legislative Day, held in January, and the Future Leadership Division Day at the Statehouse, which took place in February. Both of these events help pave the way for advocacy throughout the year by the IBA Government Relations Team and our dedicated grassroots bankers. Government relations is integral to the success of the IBA, as are other key areas of our services to you. To ensure that the IBA continues to provide what you need, we are in the final stages of a months-long strategic planning process to explore areas to build upon and improve. Working with the guidance of Chorus Inc., which also conducted staff professional development, the IBA sought input from past and present board members, hosted a strategic planning retreat with board members and staff last fall, and held an in-house staff retreat in February. From the board/staff retreat last fall, five pillars, or goal areas, were identified: education, fiscal strength, next-generation bankers, “tell the story” and government relations. These pillars served as the starting point for the in-house retreat in February, with the intent to translate goals into action. The government relations pillar surely is familiar to our members. The IBA regularly shares action alerts, IBA Insighter updates, and IBA E-News legislative topics with our membership. We often ask for your help, and you consistently provide generous support, whether by contacting legislators, hosting Indiana BANKPAC campaigns, or joining us in D.C. for the IBA Annual Washington Trip. Education is another area familiar to IBA members. The IBA is graced with a robust education department that provides hundreds of seminars, webinars, roundtables/peer groups, schools and other opportunities each year. Our Mega Conference, with attendance exceeding 1,200 each year, is second to none, and our Annual Convention brings together more than 400 attendees for educational sessions, along with association business meetings and networking. Fiscal strength certainly is a phrase near and dear to bankers. All organizations need to be fiscally responsible in order to continue into the future, and no one appreciates that reality more than banking professionals. While the IBA currently is blessed with a strong bottom line, it is our mandate that we uphold fiscal responsibility to assure fiscal strength going forward. A new phrase that came up in this recent strategic planning exercise is the pillar of next-generation bankers. Engaging the next generation of talent into the banking community will be critical to the future viability of the industry. Simply put, we need to attract and retain the best and the brightest into banking, in order to continue successfully into the future. The final initiative is the pillar of telling the story. This phrase was mentioned several times at the board/staff retreat last fall in terms of, “We want to tell our story.” It is now an official IBA goal. The tell-the-story pillar overlaps the goal of next-generation bankers, because the more we can raise public awareness about the inherent goodness of banking, the more young professionals will be drawn to this industry. It also impacts the success of advocacy efforts and of bringing customers into your bank. As a bonus, raising the profile of banking can help bring you the recognition you deserve for working hard to grow and strengthen your communities. For all five of these strategic planning pillars, the IBA management team has been gathering into working groups to break down each goal into strategies; set up milestone measures, metrics and timeframes; and identify action steps. We will be communicating progress continually with the IBA board in order to be held accountable to successful execution. In the meantime, please keep an eye out for upcoming IBA events. The Leadership Development Program starts its 2018 round in March. Guided by a world-class faculty, this intense, eight-month programming helps develop the leadership needed throughout all levels of a vibrant banking organization. The IBA also is hosting a number of educational opportunities that address banker concerns about security. Notably, the Security, Fraud and Risk Management Conference takes place in April, and the Cybersecurity Conference is set for October. Dates are shown on page 9 and on the outside back cover. On the legislative front, regional meeting will be resuming this summer for meaningful interaction with Indiana legislators. Later this fall, we hope to have as many bankers as possible join us for the IBA Annual Washington Trip in Washington, D.C., to make our voices heard on national issues. And our signature events – the Mega Conference in May, and the Annual Convention in September – present additional opportunities to convene and connect with fellow bankers. I look forward to seeing you at these gatherings. I also look forward to making progress on the strategic plan laid out for the IBA through your thoughtful support. We aim to succeed, so that you can succeed, because an important tenet of the IBA values statement is to “remain mindful that the success of the IBA is judged by the success of its members.” HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINTS

Hoosier Banker 7 At the time of this writing, the Indiana legislative session is entering its second half. By the time you receive this issue, the session is nearly over, scheduled to conclude on March 14. 2018 is one of the “short” legislative years in Indiana, which for outside observers seems to end almost as soon as it begins. Surely it doesn’t seem quite that quick for our IBA Government Relations Team. As of now, even with sine die looming near, your IBA team is working as diligently as ever. The challenge in monitoring legislation is not so much in voicing support or opposition to bills. The challenge is in checking each and every bill, over and over, to make sure that no amendments from previously killed bills have been slipped in. That means copious readings, listening in on hearings and meetings, and keeping an ear to the ground in conversations with others in the Statehouse. Legislatively, our year got off to a strong start, and I want to thank the nearly 160 bankers, who joined with approximately 40 legislators, for this year’s IBA Legislative Day on Jan. 30. This annual event is wellregarded by members of the Indiana General Assembly. For members of the IBA board, Legislative Day stretches long, but it’s important. Board members meet in the morning, are joined at lunchtime by members of the IBA Government Relations Committee, then take part in an afternoon-long GR Committee meeting, where we hear a detailed review of all of the pending bills that could affect banking. Following the GR Committee meeting is the actual Legislative Briefing – attended by a larger crowd of bankers and IBA associate members – with another summary of bills of interest to bankers. Then comes the Legislative Reception itself. By this time, we bankers are well prepared to converse with legislators about bills that pertain to banking, and our legislators appreciate it. Because as long as the day is for bankers, it’s longer still for senators, representatives and other elected officials. They’ve completed an intense day of bill review, committee meetings, votes, readings and endless conversations. When they come to the IBA Legislative Reception, they can rely on a warm welcome and an informed constituency. A listing of some of the more pertinent legislation appears in Dax Denton’s legislative article on page 17. To summarize, general topics of interest this year include escrow accounts, bonding procedures, notarial acts, credit services organizations, unclaimed property, electronic titles, unsecured consumer instalment loans, and consumer credit. Beyond Indiana, it is important to keep our eyes on the national landscape, as well. Since my last column in Hoosier Banker, the federal government has shut down twice – though one shutdown started at night and ended by morning, so it was relatively painless. We’ve also experienced a stock market adjustment that was within the guidelines of what we’ve been expecting – yet it still felt jarring. Some good news: Tax reform legislation has prompted at least one IBA-member bank to cite new tax rules as the impetus for a spike in small business loans. We also saw two IBA-member bankers – Gene Miles and a member of his team – head to Washington, D.C., at the invitation of Sen. Todd Young, to attend the State of the Union address in person. See page 45 for details and a Facebook video link. But we can’t let down our guard, as misunderstandings and misrepresentations of banking can happen at any time. In midFebruary, the Center for Investigative Reporting published findings from an analysis of Home Mortgage Disclosure Act data. This information was picked up by a national media outlet, which promptly ran an accusatory article based on the data release, but with inaccurate conclusions drawn. The article made the egregious claim that the HMDA data show a pattern of “troubling denials” for minorities in markets across the country. The authors apparently overlooked that the initial sample size of the data was too small to be statistically appropriate. They also overlooked the fact that HMDA data alone is not enough to come to the conclusion that racial discrimination has taken place. HMDA data can only determine if a disparity exists, with no explanation. Yet the explanation is important; this is why federal regulators review loan file information along with HMDA data. So we still have work to do, and we always will. As we head into the spring season, the IBA GR Team will continue to reach out for grassroots advocacy support. We rely heavily on the IBA team, and that reliance is reciprocal. Bankers are the constituents whose voices legislators especially want to hear. Please step up and speak up in support of the industry when asked. Along the lines of supporting this industry, a new way this year to bring positive attention to your institution, while supporting the Association, is to participate in the inaugural IBA Leaders in Banking Excellence awards program. Details are on page 3, or visit indianabankers.org/leaders-banking-excellence to read more. The awards are your opportunity to honor those individuals, past and present, who have led your institution to excellence. I am proud to be a banker. Thank you for the opportunity to serve as your chairman this year, as we all work together to continue to keep our industry strong. HB Clay W. Ewing Chairman Indiana Bankers Association President, Chief Banking 3JƤGIV ERH 7IGVIXEV] to the Board of Directors German American Bancorp Inc., Jasper CHAIRMAN’S REPORT

8 MARCH / APRIL 2018 Being part of a community bank is like being part of a large family. The people we serve are like family members – we conduct daily business with them, attend church with them, and often share meals with them at chamber lunches or other venues. We know and trust each other. That family-like relationship extends to the Indiana banking community as a whole. We work side-by-side with our brother and sister bankers, making our communities better and stronger. We lend the capital that is the fuel that drives commerce, whether on Main Street or on a gravel road in the country. The Indiana Bankers Association is part of that professional family network. I have been exposed to other bank trade groups before coming to Indiana nearly 10 years ago, and I can say with certainty that the IBA does a stellar job in its mission. It has assembled a super team of professionals, with Amber Van Til succeeding her mentor, Joe DeHaven. There are many opportunities for IBA members. Legislative representation is available through several annual events: the Legislative Briefing and Reception, Future Leadership Division Day at the Statehouse, regional meetings and the IBA Annual Washington Trip. In education, the IBA offers a variety of schools, seminars and webinars, plus networking opportunities at the Mega Conference, Annual Convention and C-level roundtables. IBA also helps members by vetting the third-party service providers that we often need to handle specialized projects or services. All of these benefits are meaningful to me, and I am honored to help by serving on the IBA board of directors. Though my work schedule is full as president and CEO of Springs Valley Bank & Trust Company, my IBA service is time well spent. A little background about me: I came to Springs Valley Bank nine years ago by way of Ohio. I had attended Taylor University in Indiana, and later earned my MBA from Indiana Wesleyan University, but I’m originally from a small, centennial farm in northwest Ohio. My banking career started in 1980 with Federal Land Bank of Bryan, Ohio, as an agricultural loan officer and appraiser. That position led to service as a loan asset specialist with the consolidated Farm Credit Services of Defiance, Ohio. Later I joined Hicksville Building, Loan & Savings Bank in Hicksville, Ohio, first as a loan officer and IRA administrator, then as president and CEO, a position I held for 14 years. Four months after I joined Springs Valley Bank, my predecessor, Mike Ahern, passed away unexpectedly. I was suddenly leading a bank I was just learning about. Add to that the challenge of working in a much larger institution. HBLS Bank was less than $100 million in assets; Springs Valley Bank had more than $250 million in assets when I joined. Due to that size difference, the transition into Springs Valley Bank leadership was one of learning to better work in teams and focus on leading a group of senior managers, as opposed to doing a lot of the hands-on work myself. Succession planning also became a major lesson, since it hit home so hard in our circumstance. We all face challenges, and one that impacts the banking industry daily is how quickly it is changing. We work to get a grip on the right mix of physical and digital products and services. Nonbank fintech competitors also have our attention, as they encroach on territory that historically has been bank turf. We additionally face unfair competition from non-tax-paying credit unions and the quasigovernment-guaranteed Farm Credit System. Another challenge is building our next generation of bank leadership, both in terms of C-level officers and board members. And there is the ever-present challenge of modern life, with the digital world blurring the line between our business and personal lives. But the rewards are many. I like to think that the spirit of Jimmy Stewart’s portrayal of George Bailey in the classic film, “It’s a Wonderful Life,” is still alive in community banking today. The rules of banking have changed, and we operate differently than we did a decade ago, but community bankers continue to go the extra mile. Like most of you, I am active in the community, involved with the Dubois Strong Community Development Organization, Radius Indiana and the Kiwanis Club of Jasper, to name a few. My wife Sam also helps. She has a certified therapy dog that she takes to nursing homes, hospice patients, and to our local grade school as part of a “Read to a Dog” program. Sam has a big heart and a passion for all animals. Home life is wonderful. Sam and I have five daughters between us – three in Ohio with six grandkids, and two in Jasper with four grandchildren. We like to take trips, we both read a fair amount, and we are finishing up a large renovation project at our home just outside of Jasper. My life has been a series of blessings, from my upbringing on a farm – where I learned a strong work ethic – to my life now as a husband, father, grandfather and banker. Most importantly, I was raised with a faith in God that guides my thoughts and actions. In today’s world of “anything goes,” it is a must to be grounded in a creator, a being beyond ourselves, a higher power. That abiding faith fits well with the good people I meet in the Indiana banking community. BOARD REVIEW Jamie R. Shinabarger 7SYXL[IWX 6IKMSR (MVIGXSV Indiana Bankers Association President and CEO Springs Valley Bank & Trust Company, Jasper

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 &7% 3JƤGIV *SVYQ March 14 • IBA Center CRE Appraisals: Reviewing and Interpreting March 15 • IBA Center IBA Leadership Development Program: Session 1 - It’s Simple, But It Isn’t Easy March 19-22 • Wooded Glen Retreat and Conference Center • Henryville HMDA Essentials March 20 • IBA Center CRA Essentials March 21 • IBA Center Consumer and Commercial Lending Documentation March 21-22 • IBA Center Cybersecurity Seminar April 10 • IBA Center Consumer Lending School April 11-12 • IBA Center Branch Management Series: Session 2 - Leading, Developing and Engaging the Team April 17 • IBA Center Essentials of Banking: Session 1 - Banking 101 April 18 • IBA Center Annual Security, Fraud and Risk Management Conference April 18-19 • Renaissance Indianapolis North Hotel, Carmel Implementing Updated TRID Rules April 23 • IBA Center Analyzing Personal Financial Statements and Tax Returns April 26 • IBA Center Analyzing Business/Corporate Financial Statements and Tax Returns April 27 • IBA Center IBA Mega Conference May 1-3 • Indiana Convention Center Community Bankers for Compliance Series - Session 2 May 14 • The Landmark Center • Fort Wayne May 15 • IBA Center May 16 • IBA Center 6MWO 1EREKIQIRX 3JƤGIV *SVYQ May 17 • IBA Center Senior Retail Banking Forum May 17 • IBA Center Regulation Z University May 30-June 1 • IBA Center 'LMIJ *MRERGMEP 3JƤGIV *SVYQ June 5 • IBA Center • Group 1 June 8 • IBA Center • Group 2 Senior Lender Forum June 6 • IBA Center • Group 1 June 7 • IBA Center • Group 2 IBA Leadership Development Program: Session 2 - Do Something That Scares You June 6-8 • Wooded Glen Retreat and Conference Center • Henryville Commercial Lending School June 11-15 • IBA Center Workshop for Loan Assistants June 14 • IBA Center Essentials of Banking: Session 2 - Business Operations and Management June 19 • IBA Center BSA/AML Compliance School June 20-21 • IBA Center Marketing Directors Forum June 26 • IBA Center -8 ERH 3TIVEXMSRW 3JƤGIV *SVYQ June 27 • IBA Center • Group 1 June 28 • IBA Center • Group 2 HR Directors Forum July 17 • IBA Center Lenders Comprehensive Guide to Mortgage Lending July 18-19 • IBA Center Community Bankers for Compliance Series - Session 3 Aug. 6 • The Landmark Center • Fort Wayne Aug. 7 • IBA Center Aug. 8 • IBA Center Bank Directors Workshop Aug. 13 • The Landmark Center • Fort Wayne Aug. 14 • IBA Center Compliance for Mortgage Loan Processors Aug. 14 • IBA Center Bank Directors Workshop Aug. 15 • IBA Center IBA Leadership Development Program: Session 3 - Limitations Are Self-Imposed Aug. 15-17 • Wooded Glen Retreat and Conference Center • Henryville Branch Management Series: Session 3 - Growing the Retail Branch Aug. 21 • IBA Center &7% 3JƤGIV *SVYQ Aug. 22 • IBA Center Advanced Branch Management Aug. 23 • IBA Center Essentials of Banking: Session 3 - Safeguarding the Bank and Customer Service Aug. 23 • IBA Center Deposit Account Administration Sept. 5-6 • IBA Center 6MWO 1EREKIQIRX 3JƤGIV *SVYQ Sept. 13 • IBA Center IBA Annual Washington Trip Sept. 30-Oct. 2 • Washington, D.C.

10 MARCH / APRIL 2018 COVER STORY Rep. Trey Hollingsworth Bringing business sense to Washington, D.C. Rep. Trey Hollingsworth was sworn into office on Jan. 3, 2017, to represent Indiana’s 9th District in the U.S. House of Representatives. Prior to public service, he was a successful small business owner for 14 years. He began his career by renovating and rehabilitating abandoned industrial sites, and later ventures included the establishment of a large aluminum remanufacturing operation in Indiana. Rep. Hollingsworth serves in Congress on the U.S. House Financial Services Committee and on three of its subcommittees: Capital Markets, Securities, and Investment; Monetary Policy and Trade; and Oversight and Investigations. Current issues he is fighting for include tax relief, jobs creation, congressional term limits, and lobbying bans on former members of Congress. Trey Hollingsworth has been welcoming of the Indiana banking community, meeting with bankers at the Indiana Bankers Association Annual Convention last September and during the IBA Annual Washington Trip in November. Hoosier Banker recently interviewed him about his work as a public servant. Why did you choose to enter public service? “Two reasons: One, I wanted to make sure that we get real and genuine business experience in Washington. What Washington lacks is an understanding of what it takes to create opportunity across the country. “We need policies that create jobs and opportunities for small businesses to grow and for people to save for their financial future. Washington couldn’t achieve those policy issues, because it was devoid of business experience. I’m focused on investing my business experience, so we can achieve better outcomes. “The second reason is that we’ve got too many career politicians in D.C. who promote their own interests, rather than the people’s interests. I’m a big fan of term limits and lifetime lobbying bans, so that we can stop being influenced by the values of Washington. “It’s really important that people have expiration dates. If there’s an alignment of incentives – if politicians know that they’re going to have to get a job again – they’ll create the type of regulatory environment where jobs are created. “My first day in Congress, the very first email out of my outbox was to the Legislative Counsel, instructing a draft on term limits legislation. I’m on every single true term limits bill in the House of Representatives, all eight Rep. Trey Hollingsworth represents Indiana’s 9th District in the U.S. House of ZĞƉƌĞƐĞŶƚĂƟǀĞƐ͘

Hoosier Banker 11 of them, and I’m the only representative on more than three. “I’ve also introduced a ban on lifetime lobbying, so that if you’ve ever been a member of Congress, you can never be a lobbyist. It’s not a one-year ban, or a two- or three-year ban, but a lifetime ban. “The biggest and most profound change we can make, outside of getting the economy moving, is changing the culture in Washington. It has served itself well, but not Americans.” How does your background as a small business owner inform your legislative views? “It informs every aspect of what I do. I want to ensure that the economy is growing, that people are getting jobs, that people are seeing real wage growth, and that people are able to start small businesses in their garages that will become the business leaders of their communities two generations from now. “We’ve gotten away from that. Instead, we’ve got career politicians in D.C. who have no private sector experience. They don’t know what it’s like to run a small business, or create a product, or create opportunity. “What I’m there for is to combine real-world experience and common sense with good policies, so that more Hoosiers can get jobs and see pay increases. PHOTO CAPTION: %WWSGMEXIW SJ ( 7XSRI Inc., Bloomington, talk FYWMRIWW [MXL 8VI] ,SPPMRKW[SVXL 8LI GSQTER] WTIGMEPM^IW MR -RHMERE EVGLMXIGXYVEP limestone.

12 MARCH / APRIL 2018 When Hoosiers can keep more of their hard-earned dollars, versus send them to Washington, ultimately they can start small businesses and other ventures that benefit the economy.” What are the responsibilities of serving on the House Financial Services Committee? “I’m passionate about Financial Services, because what makes the economy grow is efficient allocation of capital. If you build a better mousetrap, you should be able to get the capital to get that mousetrap out to people to buy it, then be able to produce more and expand to new locations. We need an environment where people with great ideas can access the capital they need to get their innovations out to the market. “At times it comes down to life-or-death situations. This country has led the world in biotechnology innovation, and we have successfully pushed the limits of what we’re capable of solving in terms of cures. “Now we need to roll back some of the regulatory environment that detracts from advancements, so that we can develop the next generation of cures to combat illnesses that plague Americans and Hoosiers. So, I’m passionate about how Financial Services can play a role not only in bettering the economy, but in bettering people’s lives.” In addition to the House Financial Services Committee, you serve on several subcommittees. What have you learned from your committee and subcommittee work? “What I’ve learned, and it’s really been disappointing, is how challenging the regulatory environment has been for our small community lenders. If you live in Salem, Indiana, or in any other small town, you have fewer choices for banks than you did just 10 years ago. “We’ve seen over one-third of small community banks either get acquired by bigger institutions, or close their doors because of the huge regulatory burden that’s been placed on them by people in Washington who didn’t understand fundamental differences between small community banks and big banks in New York or L.A. or San Francisco. “These bank lifelines to communities are hugely important. When you’re starting a small business, you go to your local bank to say, ‘You know me. We’ve gone to church together. You see this opportunity. You know this town could use a new pizza shop. You know this town needs a new car mechanic place.’ “We have for too long let policymakers in D.C. say that small lenders were the problem and impose a regulatory environment that’s caused banks to close their doors. We need to roll that back. “It’s astounding to me that the policies over the past 10 years have led us so far astray. But over the past year, we’ve worked really hard to make sure that we’re rightsizing and tailoring regulations, so that small community lenders are revived and enabled to serve their communities, not a bureaucracy in Washington.” As a new congressman, what were some of the surprises to you about public service? “A couple of surprises we’ve already talked about. One is how much career politicians are promoting their own interests in D.C., and not the interests of Hoosiers and Americans back home. “To me that is shocking, and it has led to $20 trillion in debt, to the hollowing out of our military, to regulatory burden on our businesses, to feeling unsafe in our communities. We have to reverse that culture in Washington. “The second big surprise is how far we’ve come in a year. For the last eight or nine years, economic growth had been anemic, but last year economic growth began to take off. We’ve seen two consecutive quarters of gross domestic product growth above 3 percent growth, and 2.6 growth in the fourth quarter. “We’ve also seen nearly 2 million jobs created over the last year. We’ve seen real wages beginning to take off. We’ve seen a tax code that’s finally been updated for the first time in 31 years. “It’s amazing how far we’ve come in just one year in starting to build a better economy that reaches every Hoosier and every American.” What would you like for bankers to understand about the legislative process? “That their voices are tremendously important. That there are too many policymakers who lack real-world business experience, so we need bankers to say, ‘This is really important to small community lenders across this country. This will enable us to make more loans. This will empower us to help get more people into the banking system, so they can start building a financial future for themselves.’ “It’s so important that people call my office, email my office, write letters and come visit. Making sure that we know what the right objectives are in policy, by getting voices heard in D.C., is priority No. 1 for me. During his interview with Hoosier Banker, Trey Hollingsworth discusses public service goals.

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14 MARCH / APRIL 2018 stronger, demand is vibrant. How can I get more people to help me, so that I can help them with their financial future, as well?’ Making sure that we build the right skillsets is hugely important, so that those who are sidelined can have their slice of the American dream.” Please tell a bit about home life and pastimes. “My wife Kelly and I had our first baby six months ago. Joseph is the first grandbaby on both sides, so he is the center of our universe, for both us and his grandparents. Kelly and I have been astounded by the I want small community bankers to be able to inform and guide policy by getting their voices heard.” What do you foresee for the U.S. economy throughout your term of service? “Though I don’t prognosticate about the economy, I can tell you it’s the primary issue that I focus on. So much of my time is focused on how to fix the regulatory environment to empower more businesses, and to enable banks to make more loans. “I also focus on how to fix the tax code, which we’ve done, to make sure that it reflects a 21st century economy. Every Hoosier needs to be able to hold onto more of their earnings and create a better future for themselves, not a future that Washington dictates. “Third, I focus on making sure that we create the right policy with regard to employees and labor, so that we give people the skills that they need to get back into the workforce. We’ve got so many Americans who have been sitting on the sidelines, not finding the right job. How do we empower them to come back? “What I hear from businesses across the district is, ‘I can’t find enough people. The economy is getting better, it’s getting 8VI] ,SPPMRKW[SVXL QIIXW [MXL ,SSWMIV JEVQIVW EX E PSGEP GSJJII WLST XS LIEV XLIMV XLSYKLXW EW LI ƤKLXW XS IRWYVI -RHMEREŭW EKVMGYPXYVI GSQQYRMX] MW [IPP VITVIWIRXIH in Washington. Rep. Trey Hollingsworth talks EFSYX LMW KVIEXIWX MRƥYIRGI growing up in this brief video. To view, click on the icon above in HB Digital. VIDEO BONUS outpouring of support, from all across the district, in starting our family. “Becoming a parent made me recognize that the decisions being made in Washington today – building a better economy, getting more people in the workforce, improving our national security, making sure we feel safe in our communities – are going to resonate not just in our lifetimes, but for future generations of Hoosiers and Americans. “I’m reminded of that responsibility every time I look at my son. It’s truly and deeply an honor to be serving the needs of Hoosiers in the U.S. House of Representatives.” HB

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ARTICLE SPOTLIGHT Legislative Successful annual grassroots event

Hoosier Banker 17 On Jan. 30, nearly 200 bankers, lawmakers and associate members of the Indiana Bankers Association came together for IBA Legislative Day events at the Indianapolis Marriott Downtown. This annual gathering provides an opportunity for IBA members to network with lawmakers and discuss current legislative topics. As in past years, events began in the morning with a meeting of the IBA board of directors, followed by a luncheon, sponsored by The KeyState Companies, that included members of the IBA Government Relations Committee. Director Thomas C. Fite of the Indiana Department of Financial Institutions was guest speaker at the luncheon. In the afternoon, bankers met with the IBA Government Relations Team for an in-depth review of each bill in the Statehouse that could impact banking. The meeting was a two-way conversation, with the GR Team presenting a review of pertinent legislation, and bankers providing their insights and input. The Legislative Briefing began at 4 p.m., with more than 160 bankers and associate members present. While in past years the briefing lasted one hour, this year the timing was extended to an extra half hour, to allow coverage of several pieces of legislation: % SB 145 – Probate Matters % SB 163 – Distribution From Escrow Accounts % SB 248 – Biometric Identifiers % SB 347 – Bonding Procedures % HB 1048 & SB 353 – Tax Credits % SB 372 – Notarial Acts % SB 384 – Liens for Agricultural Supply Dealers % SB 416 – Consumer Credit Code % SB 420 – Credit Services Organizations % SB 422 – Land Banks % HB 1090 & SB 376 – Unclaimed Property % HB 1095 – Electronic Titles % HB 1288 – Economic Development % HB 1303 – Electronic Powers of Attorney, Trusts, and Wills % HB 1397 – Financial Institutions and Consumer Credit The briefing concluded with a presentation of awards by IBA President and CEO Amber Van Til to honor those banks that are strong supporters of Indiana BANKPAC. Twenty-five banks were recognized with the BANKPAC 200% Club award, and two new awards also were presented: Most Dollars Raised and Highest Percentage of Fair Share Raised. The IBA appreciates the generosity of members in supporting the PAC. Following the briefing, the Legislative Reception began. This congenial atmosphere gives IBA members and associate members the chance to mix and mingle with Indiana representatives, senators and other elected officials, and to thank them for their service. The annual IBA Legislative Day is the traditional start to several grassroots advocacy opportunities throughout the year that give a voice to Indiana bankers. Other advocacy events include the Future Leadership Division Day at the Statehouse, as reported on pages 20-21; summertime regional meetings; and the IBA Annual Washington Trip, scheduled this fall for Sept. 30-Oct. 2. The IBA also keeps members informed about advocacy issues through the IBA Insighter, IBA E-News and action alerts. For more information, please contact Josh Myers, 317-333-7165, jmyers@indianabankers.org. HB Dax Denton 7IRMSV :MGI 4VIWMHIRX +SZIVRQIRX 6IPEXMSRW Indiana Bankers Association ddenton@indianabankers.org @ibagovrelations Article author HB Digital: Click to view a gallery of photos from the 2018 IBA Legislative Day.

18 MARCH / APRIL 2018 LEGISLATIVE DAY GALLERY

Hoosier Banker 19

20 MARCH / APRIL 2018 FLD FOCUS The IBA Future Leadership Division kicked off its slate of 2018 events with the FLD Day at the Statehouse on Feb. 13 at the Hyatt Regency Indianapolis. The event, created in 2013 to educate young bank leaders on the importance of grassroots advocacy, was attended by almost 50 bankers, who ventured to Indianapolis to visit the Statehouse to see and hear firsthand from members of the IBA Government Relations Team, political insiders and legislators who play significant roles in shaping legislation. The day began with introductory comments from FLD Board President Kirby Drey of Kentland Bank, followed by an in-depth discussion from Dax Denton, IBA senior vice president-government relations. Attendees were able to learn about Indiana’s legislative process, including a summary of how a bill becomes a law and the importance that legislative committees play in moving legislation forward. In addition to the legislative process, the group was reminded of the importance of bankers being engaged in grassroots advocacy efforts and building relationships with legislators, so that they can serve as sources of trusted information when banking issues arise. Next the group made its first of two trips over to the Statehouse for meetings with legislators. First the group had the privilege to hear from Sen. Rodric Bray (R-Martinsville), chairman of the Senate Judiciary Committee, and Sen. Chip Perfect (R-Lawrenceburg), chairman of the Senate Insurance and Financial Institutions Committee, inside the Senate chamber. Attendees had the chance to sit at the desks of the 50 state senators during the meeting, and were briefed by the senators on their experiences in the Senate and advised on how bankers can make their voices heard in the legislative process. The group then had the opportunity to travel across the hall and visit inside the House chamber with Rep. Woody Burton (R-Whiteland), chairman of the House Financial Institutions Committee, and Rep. Thomas Washburne (R-Inglefield), chairman of the House Courts and Criminal Code Committee. The duo of legislators discussed their backgrounds in banking legislation and the importance of bankers remaining in contact with their legislators to advise on banking issues. The final meeting included an in-depth question-and-answer session with members of the Indiana Future Caucus, which consists of legislators 40 years and younger. The group was introduced to Rep. David Ober (R-Albion), Rep. Ryan Hatfield (D-Evansville) and Rep. Dan Forestal (D-Indianapolis). The legislators offered an insightful look at the Indiana General Assembly and their experiences as young legislators. They expressed an overwhelming positive influence that younger legislators have had on the Indiana General Assembly, and how they are able to shape public policy. They also discussed the need for younger people to run for public office, and the important role that bankers can play in their communities. The IBA would like to thank Sen. Bray, Sen. Perfect, Rep. Burton, Rep. Washburne, Rep. Ober, Rep. Hatfield and Rep. Forestal for their service in the General Assembly, as well as their generosity of time in meeting with our bankers. The group then returned to the Hyatt Regency for lunch, sponsored by Krieg DeVault LLP. The lunch hour included a panel of political insiders who offered their views on the 2018 Indiana legislative session and the upcoming elections. Michael R. O’Brien of 1816 inc., Michael C. Leppert of Krieg DeVault LLP, and Brandon Smith of Indiana Public Broadcasting, all presented outstanding and insightful views of Indiana politics and legislation. All three individuals are featured on or FLD Day at the Statehouse Offers an inside view Article author Joshua A. Myers )\IGYXMZI +SZIVRQIRX 6IPEXMSRW 'SSVHMREXSV Indiana Bankers Association jmyers@indianabankers.org @joshmyersIN HB Digital: Click to view a gallery of photos from the FLD Day at the Statehouse.

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