Rebeca Romero Rainey Writing the next chapter at ICBA HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! 2018 IBA Mega Conference JULY / AUGUST 2018
David A. Bochnowski Peoples Bank Munster Alonzo Hernly Boyd Jr. (deceased) Wayne Bank and Trust Company Cambridge City John H. Colvin North Salem State Bank Michael L. Cox (deceased) First Merchants Bank Muncie S. Joe DeHaven Indiana Bankers Association Indianapolis Patrick J. Glotzbach The New Washington State Bank Charlestown Dan L. Moore Home Bank Martinsville James L. Saner Sr. North Salem State Bank Mark A. Schroeder German American Bank Jasper The Indiana Bankers Association is honoring nine members of the Indiana banking community with its first annual IBA Leaders in Banking Excellence awards, to be presented at a special ceremony on Aug. 3 at the IBA offices in Indianapolis. This newly created award celebrates exceptional Indiana bankers whose leadership has positively impacted banks and the communities they serve. Details and photos from the awards ceremony are forthcoming in the September/October Hoosier Banker. At the awards event, Indiana dignitaries from private and public sectors will be making presentations, and honorees will be invited to offer comments. The event will culminate with the unveiling of the IBA Leaders in Banking Excellence wall, with individual plaques showcasing each honoree. The wall plaques are to remain on permanent display at the IBA offices, and each honoree will be given a separate plaque as a keepsake. The 2018 Leaders in Banking Excellence represent a range of current and retired bankers. Two honorees are deceased, to be represented at the ceremony by close family members. All honorees were nominated by IBA-member banks and approved by the IBA board of directors. IBA Honors 2018 Class of Leaders in Banking Excellence Congratulations to the 2018 class of IBA Leaders in Banking Excellence For more information about the awards, please contact Rod Lasley at 317-387-9380, rlasley@indianabankers.org.
4 JULY / AUGUST 2018 DIRECTORS & STAFF 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 • Email IBA staff using first name initial, plus last name, plus “@indianabankers.org” – example: jdoe@indianabankers.org • Email Hoosier Banker materials to: HB@indianabankers.org IBA BOARD OF DIRECTORS IBA Officers Chairman.........................................................................Clay W. Ewing, German American Bank, 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 Bank, 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 George W. Ferriell ...........................................................................................................Bath State Bank Gregory Inman .......................................................................Scottsburg Building and Loan Association Karen B. Woods ....................................................................................... First Financial Bank, Cincinnati Southwest Region Directors Matthew W. Howrey ............................................................................................North Salem State Bank Kent L. Parisien ................................................................................................First Savings Bank, Odon Jamie R. Shinabarger ........................................................Springs Valley Bank & Trust Company, Jasper FUTURE LEADERSHIP DIVISION ADVISORY 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 Bank, 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 - Government Relations...........................................................................Eric J. Augustus Vice President - Meetings & Events ................................................................Christina M. Bennett, CMP Vice President - Products & Services...................................................................................... Rod Lasley Vice President - Education & Training ................................................................................Laurie A. Rees Vice President - Communications ....................................................................................... Laura Wilson Assistant Vice President - Member Engagement ................................................................... Josh Myers Member Engagement Specialist..........................................................................................Emily Brooks Government Relations Coordinator.................................................................................... Michelle Long Events & Products/Services Assistant...................................................................................Susan Clark Education Meeting Coordinator..........................................................................................Marcy Borden Education Meeting Coordinator......................................................................................... Elizabeth Kilty Staff Accountant ..................................................................................................................Timothy Fry Technology Manager ............................................................................................................ Tracy Kubly
Hoosier Banker 5 CONTENTS Vol. 102 No. 4 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 Rebeca Romero Rainey is president and CEO of the Independent Community Bankers of America. The May/June issue of Hoosier Banker featured Robert S. Nichols, president and CEO of the American Bankers Association. COVER STORY 10 Rebeca Romero Rainey: Writing the next chapter at ICBA ARTICLE SPOTLIGHT 17 Amplify: 2018 IBA Mega Conference Christina M. Bennett, IBA FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Clay W. Ewing, German American Bank 9 IBA Calendar of Events 24 New Officer Candidates 2019 GR SUMMIT 20 IBA Regional Meetings Dax Denton, IBA FLD FOCUS 22 If You Tell Your Story Josh Myers, IBA HUMAN RESOURCES 26 Class-Action Waivers Debra A. Mastrian, SmithAmundsen LLC PSP SHOWCASE 28 Find Peace of Mind Rod Lasley, IBA PRODUCTS & SERVICES PROFILE 30 A Meaningful CRA Program Sue Shaffer, CRA Partners COMPLIANCE CONNECTION 32 Indiana Do-Not-Call Law Brett J. Ashton, Krieg DeVault LLP DIRECTORS / SENIOR MANAGEMENT 34 Liquidity Stress Testing Dale S. Sheller, The Baker Group 38 Why Are Banks Shuttering Branches? Julie Stackhouse, Federal Reserve Bank of St. Louis INDIANA BANK & THRIFT STOCK UPDATE 36 Stock Analysis Michael A. Renninger, Renninger & Associates LLC DEPARTMENTS 23 Taking It Easy 27 IBA Employees of the Month 40 Banking Center News 42 Associate Members’ Corner 43 Anniversary Milestones 44 Banking on Community 46 Honorable Mentions 48 From the Board Room 49 In Memory of 50 Bankers on the Move 54 Advertisers Index
6 JULY / AUGUST 2018 Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT In the last edition of Hoosier Banker, I shared with you that the Indiana Bankers Association has embarked on an ambitious three-year strategic plan, which presents the Association vision in five categories: Tell the Story, Fiscal Strength, Education, Government Relations and Next-Gen Bankers. The middle three categories – Fiscal Strength, Education and Government Relations – are perennial topics from past strategic plans, but within each are new elements: • Fiscal Strength – We will set formalized fiscal policies regarding investments and reserves. • Education – We will initiate a talent management educational track to offer coaching and succession planning topics. • Government Relations – We will reprise the successful BANKPAC captain program to grow PAC funds, and we will build a database of banker/legislator contacts to strengthen grassroots advocacy. The remaining two – Tell the Story and Next-Gen Bankers – are new goals, essential in meeting future needs. Tell the Story means going beyond telling the IBA story. It is time to tell your story. It also is time to extend beyond traditional communications into social media, digital media and video production, to make your stories resonate. You’ll see this theme of Tell the Story echoed by our cover story feature, Rebeca Romero Rainey. The other noteworthy goal, Next-Gen Bankers, centers on stirring interest in the next generation in banking as a career. One component of this goal is to develop an internship program. Bankers report to us that they would like to host interns, but lack the time and resources to make internships meaningful. We will be working on formalizing a program to provide the tools you need to bring quality students to your banks. Another feature of the Next-Gen Bankers goal, spearheaded by Chairman Ewing, is to create a banking major. Pieces of the needed curriculum are already in place at several universities in Indiana, but have yet to be assembled into a banking major. The process to achieve this goal will be long but worthwhile, in order to prepare tomorrow’s professionals for banking careers. We’ll also be advancing the Next-Gen Bankers goal through sharpened focus on the IBA Future Leadership Division. The FLD has been thriving, and we’ll build on this success through partnership opportunities with the IBA Leadership Development Program, a program designed to build skills for all levels of bank leadership. To make these strategic goals a reality, it is my great pleasure to announce some personnel changes at the IBA: Eric Augustus has joined the Association as vice presidentgovernment relations. Eric is well-versed in advocacy, having lobbied for the Indiana Utility Shareholders Association and the Indiana Association of Realtors. He will be a great partner to Dax Denton at the Statehouse. Michelle Long has been promoted to government relations coordinator. She retains many of her former administrative responsibilities, but additionally helps the GR Team by coordinating government relations activities and organizing advocacy events. Josh Myers has been promoted to assistant vice president-member engagement. He continues to lead the FLD and to support GR through BANKPAC and grassroots, but he now also leads the digital and social media push that is so vital to our strategic plan. Emily Brooks, hired as member engagement specialist, will be assisting Josh. Emily is experienced in video production, digital communications and social media, allowing us to step up communications on your behalf. Thanks to your generous support, all the pieces are now in place. We have our team ready and eager to serve, and we have our roadmap set. I will continue to update you on progress as we forge ahead on the IBA strategic plan. HB To view a brochure detailing the IBA Strategic Plan, click on the hand icon in HB Digital, or go to: indianabankers.org/about IBA Strategic Plan IBA Annual Convention Sept. 9-11 Indiana bank leaders convene, connect and conduct IBA business in scenic French Lick. Annual Washington Trip Sept. 30-Oct. 2 Joing the chorus, and make your voice heard at our nation’s capital. FLD Leadership Conference Oct. 15-16 Emerging bank leaders come together for networking, leadership-building and inspiration. Don’t Miss Out! Save the Dates for These IBA Events
Hoosier Banker 7 It finally happened. On May 24, President Donald J. Trump signed into law S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. The significance of this new law is nothing less than monumental. While no single law is a cure-all, this legislation goes a long way toward reversing much of the overreach of the DoddFrank Act. Since the enactment of DFA nearly a decade ago – a knee-jerk reaction to the financial crisis of 2008 – the banking industry has been challenged by overregulation. The specific ills of the 2,300-page act are too numerous to list, but essentially Dodd-Frank punished the depository, taxpaying banking community for the faults of nonbank institutions. It also disproportionately affected small banks. Now with S. 2155 signed into law, “thank you” is the phrase of the day. The officers, directors and staff of the Indiana Bankers Association appreciate the teamwork applied to make this bipartisan legislation come to fruition. Starting at the top, we thank President Trump for signing the bill into law. We thank members of the U.S. House of Representatives, who voted for passage of the law two days before it was signed into law. Closer to home, we thank the members of the Indiana delegation who voted in favor: Representatives Trey Hollingsworth, Luke Messer, Jackie Walorski, Jim Banks, Todd Rokita, Susan Brooks, Larry Bucshon and André Carson. In particular Representatives Hollingsworth and Messer, as members of the House Finance Committee, were helpful in encouraging Committee Chairman Jeb Hensarling and House Speaker Paul Ryan to put the bill on the floor for a vote. We thank the U.S. Senate for taking the first steps to make this bill come to life by passing the legislation on March 14. Both of our Indiana senators, Joe Donnelly and Todd Young, voted in favor. Notably, Sen. Donnelly was instrumental to this legislation in his service as a member of the Senate Committee on Banking, Housing, and Urban Affairs. He worked closely with a bipartisan group of senators to put together a regulatory reform bill that would satisfy both Democrats and Republicans and gain enough votes for passage in the Senate. Finally, we thank you, the member bankers of the IBA, who extended grassroots advocacy to make sure this bill kept its momentum and made it across the finish line. Many times the IBA asked for your help in reaching out to legislators to explain how this legislation would allow you to better serve your customers and communities. Each time we asked, you helped. To aid legislators in understanding why S. 2155 is so critical, you shared stories from your banks of being unable to make loans to creditworthy borrowers, knowing that the same loans in a different environment would have easily been approved. You gave examples of watching customers you could not help, due to overregulation, NOTABLE QUOTES From the Twittersphere Financial Services · @FinancialCmte · May 22 Ű &6)%/-2+ ,SYWI TEWWIW QSWX WMKRMƤGERX TVS KVS[XL ƤRERGMEP VIKYPEXSV] VIJSVQ MR E KIRIVEXMSR [MXL E FMTEVXMWER ZSXI SJ 2I\X WXST $VIEP(SREPH8VYQTŭW HIWO XS FI WMKRIH MRXS PE[ ű Rob Nichols · @BankersPrez · May 24 Ű8LERO ]SY $VIEP(SREPH8VYQT JSV LIPTMRK XS QEOI FMTEVXMWER GSQQSRWIRWI 6IK6IJSVQ E VIEPMX] 8VYP] E XYVRMRK TSMRX MR FEROMRK TSPMG] ű Rebeca Romero Rainey · @romerorainey · May 24 Ű-XŭW SJƤGMEP 7 XSHE] [EW WMKRIH MRXS PE[ F] $43897 ƤREPM^MRK E QENSV EGLMIZIQIRX JSV XLI REXMSRŭW GSQQYRMX] FEROW ű The White House · @WhiteHouse · May 24 Ű4VSZMHMRK GSQQYRMX] PIRHIVW [MXL VIPMIJ JVSQ YRRIGIWWEV] VIKYPEXSV] FYVHIRW [MPP LIPT TVSQSXI IZIR KVIEXIV IGSRSQMG KVS[XL ű St. Louis Fed · @stlouisfed · June 15 Ű7SQI EVIEW SJ VIKYPEXSV] VIPMIJ XLEX 7 WLSYPH TVSZMHI GSQQYRMX] FEROW MRGPYHI VIHYGIH VITSVXMRK PIWW JVIUYIRX WEJIX] ERH WSYRHRIWW I\EQW ERH :SPGOIV 6YPI I\IQTXMSRW ű Follow IBA Twitter: @indianabankers Clay W. Ewing Chairman Indiana Bankers Association President, Chief Banking 3JƤGIV ERH 7IGVIXEV] to the &SEVH SJ (MVIGXSVW German American Bank, Jasper CHAIRMAN’S REPORT put themselves at financial risk by seeking loan alternatives through unregulated shadow lenders. You expressed the frustration of spending countless hours tending to burdensome regulation, preventing you from devoting time to your customers and communities. You spoke, and legislators listened. Thank you for that. As for some of the specifics of S. 2155, the legislation will be impacting banking by providing: % Improved consumer access to mortgage credit; % Regulatory relief and improved consumer access to credit; % Protections for veterans, consumers and homeowners; and % Tailored regulations for certain bank holding companies. Those are only starting points. To learn more, contact your IBA team at 317-387-9380 for additional details. S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, will help to grow the economy by providing regulatory relief, while retaining important protections for consumers. This bipartisan bill represents a major victory not only for banking, but for the customers and communities you serve. HB
The Indiana Bankers Association applauds the passage of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. We thank the members of the Indiana congressional delegation who voted in favor of this bipartisan bill, as well as IBA members for their grassroots support. S. 2155 will help grow the economy, provide regulatory relief and retain important consumer protections. You Thank
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 Community Bankers for Compliance Series - Privacy, Fair Credit Reporting Act, and Regulation V 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 • Wooded Glen Conference and Retreat Center • Henryville Aug. 15 • IBA Center Compliance for Mortgage Loan Processors Aug. 14 • IBA Center Branch Management Series: Session 3 - Growing the Retail Branch Aug. 21 • IBA Center BSA Officer Forum 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 CECL From End to End: Discussions, Data Decisions Aug. 27 • Landmark Center • Fort Wayne Aug. 28 • Huntingburg Event Center Aug. 29 • IBA Center Deposit Account Administration Sept. 5-6 • IBA Center Advanced Agricultural Credit Conference Sept. 5-6 • DoubleTree by Hilton Lafayette East Call Report Update and Review Sept. 6-7 • IBA Center Annual Convention Sept. 9-11 • French Lick Resort Risk Management Officer Forum Sept. 13 • IBA Center Advanced Credit Analysis School Sept. 13-14 • IBA Center Employment Law for Bankers Sept. 18 • IBA Center Mortgage Lending School Sept. 18-20 • IBA Center Certified Banking Cybersecurity Manager Certification Class Sept. 19-20 • IBA Center Flood Insurance Essentials Sept. 23 • IBA Center Asset/Liability Management Seminar Sept. 26 • IBA Center Talent Assessment and Succession Sept. 26 • IBA Center Security Management Seminar Sept. 28 • IBA Center Annual Washington Trip Sept. 30-Oct. 2 • Washington, D.C. BSA/AML Compliance Seminar Oct. 3 • IBA Center Senior Retail Banking Forum Oct. 4 • IBA Center IBA Cybersecurity Conference Oct. 4-5 • IBA Center Chief Financial Officer Forum Oct. 9 • IBA Center • Group 1 Oct. 12 • IBA Center • Group 2 Senior Leader Forum Oct. 10 • IBA Center • Group 1 Oct. 11 • IBA Center • Group 2 FLD Leadership Conference Oct. 15-16 • The Alexander • Indianapolis Community Bankers for Compliance School Oct. 15-19 • IBA Center Essentials of Banking: Session 4 - Lending, Bank Investments and Bank Performance Oct. 17 • IBA Center Pick the Fraud Out: Skills to Detect Fraud at the Frontline Oct. 17 • The Sherman House • Batesville Oct. 18 • The Landmark Conference Centre • Fort Wayne Oct. 22 • Huntingburg Event Center Oct. 23 • Holiday Inn Express • Bloomington Oct. 24 • DoubleTree by Hilton Lafayette East Marketing Directors Forum Oct. 23 • IBA Center IRA School - Navigating the Treacherous Trails of IRAs Oct. 23-24 • IBA Center IT & Operations Officer Forum Oct. 24 • IBA Center • Group 1 Oct. 25 • IBA Center • Group 2 FDIC Director College/Banker Outreach Program Oct. 30 • Renaissance Indianapolis North Hotel * Carmel ACH Processing and Compliance Oct. 31 • IBA Center Human Resource Directors Forum Nov. 8 • IBA Center Banking on Women Conference Nov. 13-14 • Indianapolis Marriott North Hotel Fundamentals of Commercial Lending Nov. 15-16 • IBA Center Midwest Agricultural Banking School Nov. 26-29 • Purdue University • West Lafayette Branch Management Series: Raising the Bar for Sustainable Growth Nov. 27 • IBA Center Ag Clinic Nov. 29 • Purdue University • West Lafayette Economic Outlook Forum Dec. 7 • Renaissance Indianapolis North Hotel • Carmel
10 JULY / AUGUST 2018 COVER STORY Rebeca Romero Rainey Writing the next chapter at ICBA Earlier this year, Rebeca Romero Rainey took on the top leadership role of the Independent Community Bankers of America as president and CEO. She follows in the footsteps of Camden R. Fine, who had been leading ICBA since 2003 before retiring effective May 5. A lifelong banker, Romero Rainey is the third generation of her family to serve in community banking. Before joining ICBA, she was chairman and CEO of Centinel Bank of Taos, New Mexico. During her tenure with the bank, she served the larger banking community as president of the Independent Community Bankers of New Mexico in 2007-08. On a national scale, Romero Rainey became engaged with ICBA through committee service. She was the first chairman of ICBA’s Minority Bank Council, and she also served on ICBA’s Executive Committee and as ICBA chairman in 2016-17. She has also been active with the Federal Deposit Insurance Corp., serving on the Advisory Committee on Community Banking, and on the Kansas City Federal Reserve Community Depository Institution Advisory Council. A community advocate, Romero Rainey is the cofounder of the Bridges Project for Education. She was selected as Taos Citizen of the Year in 2009 and has been awarded the New Mexico Governor’s Award for outstanding women. Romero Rainey is a graduate of Wellesley College and of the Pacific Coast School of Banking. For Hoosier Banker readers, Romero Rainey addresses the following questions about her service to community banking as leader of ICBA: What are your responsibilities as president and CEO of the Independent Community Bankers of America? “As president and CEO of ICBA, my mission is ICBA’s mission – to create and promote an environment where community banks flourish. As a third-generation community banker, I’m honored and passionate about leading community banks as we continue to build on our solid reputation and legacy of consumer trust. “As a former ICBA chairman, I’ve had such an advantage coming into this position, knowing so many community bankers and our state association executives. Over the past weeks, I’ve had several opportunities to visit state association conventions and catch up with bankers and state association leaders, which I’ve enjoyed immensely. I’ve also had the opportunity to forge new relationships with members, which is a highlight. “In my eyes, this is a very exciting time to be a comThis article featuring Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, is the second in a two-part series highlighting leadership at the national bank trade associations. The May/June Hoosier Banker featured Robert S. Nichols, president and CEO of the American Bankers Association.
Hoosier Banker 11 munity banker, as we look towards a future of innovation, blended with the steadfast relationship business model that’s unique to our industry. It’s a time unlike any other, and we need to leverage all of the opportunity that is out there to help us advance our industry and our individual banks. “My role as ICBA president and CEO will be to lead ICBA and community banks into this exciting future, as we write the next chapter of our community banking story. And yes, you know I’m all about community bankers telling their story. It was my platform message as ICBA chairman, and it will continue to be my call to action as ICBA president and CEO. “There are a few key themes that will help us tell this story. First, advocacy. ICBA has and always will advocate for the unique needs of community banks – and only community banks. ICBA exclusively promotes the community bank agenda before Congress, the administration and regulators, ensuring the needs of community bankers are heard. My priorities will be to ensure a tiered and proportionate regulatory environment for community banks, along with a level playing field for those who want to be part of the banking system. “The second key theme is innovation. ICBA has invested significant resources in this space, as we will continue to promote innovation opportunities and solutions that will help community banks grow and thrive. “I’m also very passionate about our third theme – PHOTO CAPTION: Rebeca Romero Rainey advocates for community banks nationwide.
12 JULY / AUGUST 2018 education. ICBA will continue to promote the community bank profession and is fully committed to helping community bankers and their staffs grow in all stages of their community banking careers. “With advocacy, innovation and education being key priorities, I know that ICBA will be doing everything possible to create and promote an environment for community banks to flourish.” The community banking industry recently enjoyed a major legislative victory with the passage of S. 2155. What insights can you offer about how this and other legislative progress will affect community banking? “The Economic Growth, Regulatory Relief, and Consumer Protection Act, S. 2155, is a community banker victory, and we want to thank all of the community bankers who stood up, told their story and advocated for our industry. Suffice it to say, our years of advocacy included hundreds of meetings with policymakers on Capitol Hill and at the White House, tens of thousands of community banker messages to lawmakers, congressional testimony, joint state association letters, petitions, articles, opeds and more. “But it was all worth it. By working together and pressing tirelessly for needed change, we will be able to better serve our customers and communities. “There are beneficial regulatory relief measures in this law for community banks of all sizes. It will unravel many of the suffocating regulatory burdens our nation’s community banks face and puts community banks in a much better position to unleash their full economic potential. “Many of the provisions that were included in the law reflect ICBA’s Plan for Prosperity regulatory relief platform, which was originally launched in February 2013. ICBA’s Communities First Act preceded it. As a community banker who also served as ICBA chairman, I can tell you that regulatory relief has been job No. 1 at ICBA for a very long time, and will continue to be well into the future. “But as you know, ICBA’s quest for commonsense regulation is not over. While this new law will make a positive difference for community banks, there is plenty more work ahead of us. We will continue looking for ways to create and promote an environment where community banks flourish, and we won’t take no for an answer.” Where is future progress needed? “As I said, I’m very focused on innovation and education. We need to continue to innovate as an industry, and ICBA is here to help shepherd and serve community banks in this space. In fact, we’ve dedicated significant resources to it. ICBA brought on Kevin Tweddle, ICBA’s chief innovation officer, a year ago. His role is to help community banks partner with financial technology solutions that work for them. “We also released a Fintech Strategy Roadmap in March, written in collaboration with Hunton & Williams LLP, to help community banks navigate all of the options that are available to them. I encourage all community bankers to look at the roadmap, A “selfie” brings together attendees of the 2018 ICBA LIVE Convention in March, gathering to thank the Senate for its passage of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. Continued on page 14. Rebeca Romero Rainey is joined by her husband John at the closing banquet of the 2016 Indiana Bankers Association Annual Convention.
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14 JULY / AUGUST 2018 of the new law and help promote economic vitality in their communities. ICBA has already sent letters to the regulators and the Consumer Financial Protection Bureau advocating for its expeditious implementation. “We will also continue to urge Congress to end the credit union industry’s unwarranted federal tax subsidy and oppose expanded powers for the industry, as long as it remains exempt from taxation and the Community Reinvestment Act. And we’ll continue raising concerns with the Office of the Comptroller of the Currency’s proposed special-purpose national bank charter for fintech companies, and ensuring that the OCC does not proceed without explicit statutory authority from Congress. “A strong farm bill is also needed. We’ll continue to call on Congress to pass a farm bill that provides stability to the volatile farm sector and to prevent the Farm Credit System from abusing its tax-advantaged status. “Clearly the list is long, and there is plenty if they haven’t already. It’s the first community bank resource that takes a deep dive into the legal and compliance elements associated with fintech partnerships. “I also believe that the core processor relationship is a critical component of financial technology and the future of our industry. ICBA recently released a Core Processor Resource Guide and Best Practices for working with cores and managing the partnership. Again, I encourage all community bankers to take advantage of these ICBA resources. “In terms of advocacy, there is still more work to be done. We need to get the rules written as quickly as possible for S. 2155, so community bankers can leverage the benefits more that needs to be accomplished, but with the help of our members and the ICBA staff, we will achieve more community bank victories in the coming years.” How can bankers engage effectively in grassroots advocacy? “Three words – ‘tell your story.’ One of the reasons why ICBA and community bankers were able to get generational community bank regulatory relief and tax reform through Congress was by making our voices heard through our individual stories. “Each community bank is unique, and your narrative demonstrates that. ICBA makes it easy by providing community banks with resources to advocate, promote their banks, and stay in the know. Our Be Heard Grassroots Action Center makes it easy to send a letter to a member of Congress with the click of a button, and our Marketing and Communications Toolkit makes it easy for community banks to promote their brand throughout the year. “By standing up and making our voices heard through examples and storytelling, we will make great change happen for our industry. Keep up the great work, community bankers!” What are upcoming opportunities in banking? “I’ll go back to innovation and education. Opportunities abound, and it’s up to community bankers to take advantage of opportunities that are out there. We hold the keys to prosperity in our hands; we just need to turn on the ignition. “Succession planning and grooming our industry’s future leaders is a big part of this. That’s why I’m so excited to be part of ICBA’s LEAD FWD event powered by Community Banker University. It will be held Sept. 17-18 in Louisville, Kentucky. “It’s a privilege to be a community banker – that’s why I see such a great opportunity to promote this profession and get more people excited about careers in community banking. And we’ll do that by showing the impact community bankers make in people’s lives, and how they are an integral part of the community. “That’s another reason why I think ICBA’s Rebeca Romero Rainey mingles with attendees at the 2016 Indiana Bankers Association Annual Convention. CERTIFIED PUBLIC ACCOUNTANTS New Albany 812.945.2311 | monroeshine.com | Louisville 502.423.0311 VISION FOR TOMORROW EST 1925 KNOWLEDGE FOR TODAY AUDIT & ASSURANCE BSA & ACH COMPLIANCE CONSULTING SERVICES IT RISK MANAGEMENT LOAN REVIEW MERGER & ACQUISITION OUTSOURCED INTERNAL AUDIT SEC & SOX COMPLIANCE Throughout the decades our commitment to the financial institutions industry and technical knowledge, combined with outstanding responsiveness and service, has helped our clients manage complex issues and regulatory requirements.
Hoosier Banker 15 The May/June Hoosier Banker featured the first article of a two-part leadership series. Click on the magazine graphic above in HB Digital to read the first installment. From the Last Hoosier Banker Go Local initiative is so important. We need to continue to show how the community bank business model affects local communities. There’s a natural fit here for the millennial generation and beyond. We just need to get out there and continue to tell that story. “If community banks aren’t already participating in Go Local or our Go Local Wednesday initiative, I encourage them to learn more at icba.org/golocal.” What do you most enjoy about your work? “Everything. Right now, I’m thrilled to be building new relationships and reconnecting with community bankers, state association executives and staff, along with community banking advocates from across the nation. I’m enjoying working with the tremendous ICBA staff and doing what we do best – fighting for the needs of the nation’s community banks.” What influences guided your career development? “When you grow up in a family of community bankers, working in a community bank from an early age and seeing the positive impact that the bank has on the community, you can’t help but be influenced by it. Over the years, I’ve seen small businesses thrive and be turned over to the next generation of leadership. All of this was instrumental in helping me grow into the community banking professional and advocate I am today. Rebeca Romero Rainey is president and CEO of the Independent Community Bankers of America, headquartered in Washington, D.C. “I also can’t say enough positive things about getting involved with your local state association to engage with other community bankers and advocate for our industry. I learned so much by getting involved with the Independent Community Bankers of New Mexico and serving as their president back in 2007. “Serving on ICBA’s Executive Committee was also instrumental in my career development, because it was a great learning experience and provided me with opportunities to travel the country and connect with my fellow community bankers. “Something that I’m really drawing on now is my past experience in engaging with the regulators. Thanks to my time on the Federal Deposit Insurance Corp. Advisory Committee on Community Banking and the Kansas City Federal Reserve Community Depository Institution Advisory Council, I was able to learn how to work with regulators to make change happen.” What was key leadership advice that you received? “Two key phrases come to mind. First, the power of listening. When I assumed the leadership role at my family bank, I learned early on that you need to listen in order Rebeca Romero Rainey was a featured speaker at the 2016 Indiana Bankers Association Annual Convention. to learn. The core is being able to listen to ensure you understand the problems you are trying to solve and being open to hearing the potential solutions, so you can make the best business decisions. “My other key leadership advice came from my dad, who taught me the power of making the hard right decision instead of the easy wrong decision. This advice has guided so much of what I do.” HB VIDEO BONUS ICBA Video on S. 2155 ICBA President and CEO Rebeca Romero Rainey reacts to the passage of S. 2155. To view, click on the video icon in HB Digital. Rob Nichols Forward-looking leader of the ABA HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! FLD Focuses on the Future MAY / JUNE 2018
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Hoosier Banker 17 Christina M. Bennett, CMP Vice President- Meetings & Events Indiana Bankers Association cbennett@indianabankers.org @cbennettin ARTICLE SPOTLIGHT MAXI VIDEO BONUS Amplify 2018 IBA Mega Conference With a theme of “Amplify,” the 2018 Indiana Bankers Association Mega Conference brought to light new strategies for amplifying performance, efficiencies and market share. More than 1,250 attendees joined us at the 27th annual Mega to convene, connect and gain insights into amplifying personal and company-wide success. Mega events began with a golf outing on Tuesday, May 1, at the beautiful Broadmoor Country Club. The weather was ideal, providing plenty of sunshine and clear skies. Congratulations to the winning golf team, with a score of 60 (12 under par): Marvin Veatch and Jeff Nolting, Jackson County Bank, Seymour; Tim Holt, Profit Resources Inc.; and John Tanselle, SmithAmundsen LLC. Also, thank you to the dedicated members of the IBA Future Leadership Division, who added spirit to the outing by selling mulligans in support of Indiana BANKPAC. On Wednesday, May 2, Mega attendees assembled at the Indiana Convention Center for the first day of educational sessions. Concurrent sessions addressed the topics of Risk Management, Directors, Operations & Technology, Human Resources, Sales & Customer Service, and Trust. Our lunchtime speaker was the always-popular Lee Wetherington of ProfitStars. A guru in the world of bank technology, Lee guided the audience through “future techs with nearterm impacts.” On the same day, the IBA presented Five Star and Diamond Associate awards in recognition of member banks and service providers that have engaged with the Association at a high level. Congratulations to all honorees, and thank you for your strong support of the IBA. Following Mega tradition, the first day of educational sessions capped off with the annual Mega Celebration, an opportunity for bankers to mix and mingle with each other and service providers in the Exhibition Hall. Also on Wednesday evening, the Future Leadership Division hosted a reception at Yard House for its growing membership and potential new members. Thursday morning, May 3, Mega participants gathered again in the Convention Center for the final day of Mega. Concurrent sessions covered Business Lending, Financial Management, Retail Banking, Marketing, Compliance and Strategic Thinking. Following the morning sessions, guests gathered for a luncheon featuring keynote speaker Pete Smith, author of Dare to Matter. Pete’s people-focused presentation inspired attendees to take ownership of shaping their futures. Additionally at the luncheon, Maxi Awards were presented to IBA-member banks, highlighting their innovative advertising and marketing campaigns. Click on the video link below in HB Digital to view the awards video that was presented at Mega. This year, to add variety to the schedule, we followed up the luncheon with a buffet dessert session, presented in the Exhibit Hall. Guests had the chance to continue their networking with service providers and fellow bankers, while selecting from an array of delectable desserts. Also new to the schedule, we closed out the final day of Mega with “deep dive sessions.” These concluding sessions gave attendees a chance to wrap up their Mega experience with an in-depth look at one of six concurrent topics. Mega 2018 was a success, thanks to the planners, sponsors, trade show exhibitors, speakers, attendees and others who made this event possible. Please plan to join us next year at the Indiana Convention Center for the 2019 IBA Mega Conference, scheduled for May 13-15. HB To view a video showcasing 2018 MAXI Award winners, click on the camera icon in HB Digital, or go to: vimeo.com/indianabankers
18 JULY / AUGUST 2018 ARTICLE SPOTLIGHT The Indiana Bankers Association appreciates the support of the following organizations: American Bankers Association Anthem Blue Cross Blue Shield Associated Bank The Baker Group BancMac/Community Banc Mortgage Corporation Bankers’ Bank Bingham Greenebaum Doll LLP BITS BKD, LLP BMO Harris Bank BOK Financial Institutional Advisors Capital Point Marketing Cardiac Science Check Printing Contract Consulting CIBC Bank USA Cinnaire Corporation CliftonLarsonAllen Crowe LLP CSI Equias Alliance Executive Benefits Network Farmer Mac Federal Home Loan Bank of Indianapolis Federated Floodplain Consultants Inc. Franklin American Mortgage Company Graduate School of Banking IBA Group Insurance Trust ICBA Bancard Investors Title Insurance Company K4 Architecture + Design Keefe, Bruyette & Woods The KeyState Companies Kilpatrick Townsend & Stockton LLP Laurel Hill Advisory Group LLC Lee & Mason Financial Services Inc. Matrix Integration NewGround ProBank Austin Profit Resources Inc. Renninger & Associates LLC The SHAZAM Network Simplifile SmithAmundsen LLC TIB-The Independent BankersBank NA Tilson Title Center of Indiana LLC Travelers TRUPOINT Partners Virtual Innovation Inc. Voluforms Wilmington Trust NA Works24 Young & Associates Inc. Alliance Bank, Francesville Bank of Geneva Bank of Wolcott Bath State Bank Bippus State Bank, Huntington Citizens Bank, Mooresville Citizens State Bank, New Castle Commerce Bank, Evansville Community First Bank of Indiana, Kokomo Crossroads Bank, Wabash The Farmers Bank, Frankfort Farmers and Merchants Bank, Laotto First Bank of Berne First Bank Richmond First Farmers Bank & Trust Company, Converse First Federal Savings Bank, Evansville First Federal Savings Bank, Huntington First Federal Savings Bank, Rochester First Harrison Bank, Corydon First Savings Bank, Clarksville First State Bank of Middlebury The Fountain Trust Company, Covington Fowler State Bank Garrett State Bank German American Bank, Jasper Greenfield Banking Company Home Bank, Martinsville Hoosier Heartland State Bank, Crawfordsville Jackson County Bank, Seymour Kentland Bank Logansport Savings Bank Mutual Savings Bank, Franklin MutualBank, Muncie The New Washington State Bank, Charlestown North Salem State Bank Ossian State Bank Owen County State Bank, Spencer Riddell National Bank, Brazil Salin Bank, Indianapolis Security Federal Savings Bank, Logansport Springs Valley Bank & Trust Company, French Lick State Bank of Lizton, Brownsburg State Bank of Medora United Community Bank, Lawrenceburg Wayne Bank and Trust Company, Cambridge City West End Bank, Richmond The Baker Group Bankers’ Bank Equias Alliance, an NFP Company Federal Home Loan Bank of Indianapolis Congratulations to the 2018 Maxi Award winners, recognized for excellence in bank marketing: The Five Star Member banks listed below have been recognized for their commitment to the IBA through various areas of engagement: The following IBA Diamond Associate Members have demonstrated commitment to the Association in multiple areas of involvement: Diamond Associate Members Five Star Members Maxi Award Winners Mega Sponsors Infotex The KeyState Companies Krieg DeVault LLP Plante Moran Renninger & Associates LLC Annual Report First Federal Savings Bank, Huntington STAR Bank, Fort Wayne Branding Campaign Home Bank, Martinsville Lake City Bank, Warsaw Deposit Campaign First Internet Bank of Indiana, Fishers Digital Content First Bank Richmond West End Bank, Richmond Loan Campaign First Savings Bank, Clarksville Riddell National Bank, Brazil Public Relations German American Bank, Jasper Home Bank, Martinsville Series Lake City Bank, Warsaw West End Bank, Richmond Single Piece Salin Bank, Indianapolis Springs Valley Bank & Trust Company, French Lick BEST OF SHOW Lake City Bank, Warsaw The SHAZAM Network SmithAmundsen LLC Wilmington Trust NA
Hoosier Banker 19 Access a full gallery of Mega photos by clicking on the dates below in HB Digital. • May 1, 2018 • May 2, 2018 • May 3, 2018 View 2018 IBA Mega Photos Online
20 JULY / AUGUST 2018 GR SUMMIT Summer is here, the season for the Indiana Bankers Association to host summer regional meetings. At this annual round of meetings throughout the state, member bankers have the chance to interact with lawmakers in a convenient lunchtime setting. A major legislative topic this year at the meetings is S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law on May 24. This bipartisan legislation marks a significant legislative achievement for banking, as well as for consumers and communities. We at the IBA thank you, our members, for your enduring support of this legislation. Your calls, emails, letters and testimonials to lawmakers were heard. On page 7, Chairman Ewing covers S. 2155 in greater depth, but please contact us at the IBA if we can answer any questions for you. The other main legislative topic at the regional meetings this year is a review of the 2018 legislative session. An important issue addressed during session was public funds, specifically HEA 1262-Public Funds and Tax Refund Intercepts. This issue had come to the forefront last year and continued into 2018, as there had been some ambiguity in how public funds are to be territorially invested in banks in Indiana. The signing of HEA 1262 into law brings clarity to existing law related to when a local governmental entity may invest funds statewide. Bill language also reaffirms the requirement that public funds remain invested in a specified geographic area, if eligible depository opportunities exist in the area. IBA Regional Meetings A review of 2018 legislation Another topic of note to bankers is HEA 1095-Electronic Titles, which passed into law in early March. This law allows the Bureau of Motor Vehicles to update its system by building an electronic lien and title program (ELT) in Indiana. Of key importance to Indiana bankers is bill language clarifying that the ELT program is optional to lenders. Also of note on the electronic front is the topic of remote notarization, as covered by SEA 372-Notarial Acts, which passed into law. Remote notarization is a technology that allows consumers to use electronic audio-visual systems to facilitate notarial authentication remotely. Essentially this legislation makes technical changes in order to standardize language concerning registration of trademarks and regulation related to notarial acts. An incident that set the 2018 session apart from others is that it failed to address five notable bills by the session deadline. Two bills were related to tax issues, one on restructuring of public school systems, one on school safety, and there was a technical corrections bill. Gov. Holcomb called for a special session which then convened on May 14 and, in a single day, addressed all five of the unresolved bills. I’d like to conclude with a quick welcome to two new members of IBA’s GR Team – Eric Augustus, our new hire as VP-government relations, and Michelle Long, whose responsibilities are being realigned to include government relations. Amber Van Til announces these, plus two other personnel changes, on page 6. It’s an exciting time at the IBA, as we gear up with a full staff in order to better serve our members’ needs. HB Dax Denton Senior Vice PresidentGovernment Relations Indiana Bankers Association ddenton@indianabankers.org @ibagovrelations
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