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2018 Vol. 102 No. 6

George Ferriell Upholding the spirit of banking HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! 2018 IBA Annual Convention NOVEMBER / DECEMBER 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 annual 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, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who 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, 2019, the Indiana Bankers Association is accepting nominations for the 2019 CLASS of the IBA Leaders in Banking Excellence.

4 NOVEMBER / DECEMBER 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 DeHaven Staff Accountant ..................................................................................................................Timothy Fry Technology Manager ............................................................................................................ Tracy Kubly

Hoosier Banker 5 CONTENTS Vol. 102 No. 6 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 @indianabankers Publisher: Amber R. Van Til Editor: Laura Wilson Advertising: Rod Lasley Submit materials to: HB@indianabankers.org Copy deadline: First of the month preceding publication. Advertising: Rates available at indianabankers.org. Advertisers should reserve space by the first day of the month preceding publication, and submit artwork by the fifth of the month preceding. Hoosier Banker advertising is available to members and associate members of the Indiana Bankers Association only. Subscriptions: Hoosier Banker subscriptions are provided free of charge to members and associate members of the Indiana Bankers Association. Public access to HB Digital is available at indianabankers.org. About Hoosier Banker: Award-winning Hoosier Banker magazine is the flagship publication of the Indiana Bankers Association. Its subscriber base includes all banks and thrifts headquartered in Indiana, IBA-member banks headquartered out-of-state, and IBA associate members. HOOSIER BANKER MAGAZINE indianabankers.org COVER STORY 10 George Ferriell: Upholding the spirit of banking ARTICLE SPOTLIGHT 16 IBA Annual Convention Christina M. Bennett, IBA FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Clay W. Ewing, German American Bank 8 Staff Selection Emily Brooks, IBA 9 IBA Calendar of Events 20 Builders of Banking GR SUMMIT 22 IBA Annual Washington Trip 2018 Dax Denton, IBA INDIANA BANK & THRIFT STOCK UPDATE 25 Stock Analysis Michael A. Renninger, Renninger & Associates LLC HUMAN RESOURCES 28 Volunteerism Debra A. Mastrian, SmithAmundsen LLC 30 Health Savings Accounts Steven Christenson, Ascensus FLD FOCUS 32 FLD Networking Lunches Josh Myers, IBA DIRECTORS / SENIOR MANAGEMENT 34 Interest Rate Risk Matt Harris, The Baker Group COMPLIANCE CONNECTION 36 Cyberattacks and Security Breaches Brett J. Ashton, Krieg DeVault LLP PRODUCTS & SERVICES PROFILE 38 PSP Year-End Summary Rod Lasley, IBA MARKETING & SALES 44 Consumers Have Spoken Steve DuPerrieu, CSI DEPARTMENTS 26 Anniversary Milestones 35 From the Board Room 37 Banking Center News 37 In Memory of 46 Associate Members’ Corner 46 IBA Employees of the Month 48 Honorable Mentions 50 Banking on Community 52 Bankers on the Move 58 Advertisers Index

6 NOVEMBER / DECEMBER 2018 In order to help tell the story of banking, the Indiana Bankers Association proudly announces the first-ever Commitment to Community Award. The purpose of this award is to demonstrate how much banks reach out to and support the communities they serve. The 2018 award, to be presented at the 2019 IBA Mega Conference in May, will be based on community service completed in 2018 – both overall scope and the creativity of a single project. Judging is to be conducted by a panel of individuals unaffiliated with the IBA, and asset size may be taken into consideration in the review process. We look forward to your award submissions; the deadline is Feb. 15, 2019. Click on the Commitment to Community Campaign logo at right in HB Digital to link to the award entry form, or go to: indianabankers.org/commitment-community-award. For more information, please contact Laura Wilson at lwilson@indianabankers.org, 317-333-7146. This new award was created to support the “Tell the Story” pillar of the IBA strategic plan. Our ambitious 2018-2020 plan resulted from a planning retreat held in 2017, when current and past IBA board members met for two days of intensive brainstorming. “We need to tell our story,” was a refrain heard often at the retreat, so sharing the story of banking is now an IBA goal. There are several means of telling the story of banking, but a sure way to make a splash and attract attention is through a contest. We can utilize the IBA Commitment to Community Award to tell the story of banking by creating a video highlighting the award-winning bank. The video is to be displayed at Mega and distributed through traditional media, such as news releases and Hoosier Banker, and IBA social media channels. We also will explore possible filming of non-winning entries, to further tell the story of banking. Tell the Story is not the only unique feature of the 2018-2020 IBA strategic plan. Another new feature is the “Next-Gen Bankers” pillar, which is all about the future. On the facing page, Chairman Ewing addresses exciting initiatives, launched under his leadership, relating to Next-Gen Bankers. Additionally, I’d like to draw your attention to page 20, our Builders of Banking page. Paying tribute to those who helped build the strong, solid banking community in Indiana, Builders of Banking offers oneclick connections to rosters that showcase Indiana centennial banks, IBA past presidents and 40 Year Club members. Also included are IBA Future Leadership Division members, who are working toward building a vibrant future for banking. Another group of bankers who are working hard for the future of the industry are our banking advocates. Thank you to the nearly 45 Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT Midwest Agricultural Banking School Nov. 26-29 Learn the latest about agricultural credit and finance onsite at Purdue University. Indiana Economic Outlook Forum Dec. 7 James Bullard, president and CEO of the Federal Reserve Bank of St. Louis, shares economic insights. Legislative Reception & Briefing Feb. 4, 2019 This annual event is a prime opportunity to discuss issues of the day with Indiana lawmakers. Don’t Miss Out! bankers who dedicated time to join the IBA Annual Washington Trip this fall. Dax Denton writes about the trip on pages 22-24, but I’d like to add my appreciation to all who attended. A side note about this year’s DC trip is that I had the chance to bring along my 12-year-old son, Preston, for his first trip to our nation’s capital. He is old enough to appreciate Washington, DC, and even seems to be catching the political bug. In fact, I suspect that Preston may soon be lobbying for mandatory recess nationwide – he’s just the man to get the job done! Thank you for all you do in support of the IBA and our industry. I hope you enjoy a wonderful holiday season, and we all look forward to serving you in 2019. HB

Hoosier Banker 7 Also, German American Bank currently is working with the University of Evansville (UE) and the University of Southern Indiana on a program through which GAB bankers visit the campus to speak to business classes. Also, in November the IBA and UE are hosting a panel that will include participants from several IBA-member banks in southwest Indiana, to help students understand career opportunities available within the banking industry. IBA will continue to work to create a banking major in Indiana and to make internships a reality for more of our banking community. It is essential to look toward the future to ensure that we have a steady stream of talent coming into banking. Our industry depends on it and, by building our workforce, we encourage the best and brightest to stay in-state and build the vibrancy of Indiana. For me, it’s a personal mission. I am fortunate to be part of a banking environment where succession planning and skills development are deeply embedded in the culture. Even more, I have always found banking to be a gratifying career, and I am confident that top talent that comes into this profession will find it equally rewarding. Thank you again for allowing me to serve as 2018 IBA chairman. I have enjoyed the experience immensely. HB NOTABLE QUOTES Bank Community Service on Twitter Old National Bank, Evansville • @Old_National • Aug. 25 “What a night for @BgcEvansville–#100MenWhoCook raised $226,000 to help young people in our community. Thank you to the guests, chefs and everyone who help make this night a big success!” 1st Source Bank, South Bend • @1stSourceBank • Aug. 28 “The sun is hot, but the progress isn’t slowing down! The 1st Source team is working hard at the #habitatcwp site. Thank you to all the amazing volunteers making such a big difference for these families!” Farmers and Merchants Bank, Laotto • @F_M1914 • Sept. 6 “Open a New Checking account at F&M Bank from September 8th through October 19th and along with your FREE gift you will get to pick a blanket to be donated to the Fort Wayne Rescue Mission.” The Farmers Bank, Frankfort • @Mybankforlife • Sept. 7 “The Farmers Bank is in its fifth year of working with the Community Schools of Frankfort Reading Champions program. The success of the program has been documented in improved scores on the state’s I-Read test. https://vimeo.com/273566575” STAR Bank, Fort Wayne • @STARFinancial • Sept. 26 “STAR Bank partnered with @Phoenix_Theatre Indianapolis to secure funding to build a new state of the art facility. Watch the video to hear their story: http://www.starfinancial.com/startalk” Follow IBA Twitter: @indianabankers Twitter Clay W. Ewing Chairman Indiana Bankers Association President, Chief Banking Officer and Secretary to the Board of Directors German American Bank, Jasper CHAIRMAN’S REPORT This column marks my final Chairman’s Report to IBA members. The year has flown by, and I’d like to thank you all for your support and encouragement as we’ve worked together to help the IBA move forward. Last year, when I accepted the IBA leadership gavel, I announced two goals I hoped to accomplish. Both are in support of the “Next-Gen Bankers” pillar of the strategic plan, which addresses much-needed succession issues. The first goal was to establish an internship program to help bring students into banks and instill interest in banking as a profession. Many bankers first came into the industry because of positive internship experiences. The dilemma is that not all banks have the resources to set up internships. Additionally, even if they could manage to bring students in, having an intern on board is only the first step. In order for the internship to be a success, meaningful programming needs to be in place. To achieve this first goal, the IBA has launched the Indiana Banking Internship Program. Through this initiative, the IBA acts as a liaison between member banks and Indiana colleges/universities to attract quality students to bank internships. The program additionally provides guidance to banks on how to structure and format the internship experience. The IBA has contacted bank leaders throughout the state with an invitation to participate in the inaugural Indiana Banking Internship Program, with students scheduled to be in place in the summer of 2019. This program is your tool, designed to be useful whether you seek to start an internship program, or you would like assistance with already existing internships. Dovetailing with the Indiana Banking Internship Program is my other chairmanship goal, which is to establish a banking major in Indiana. Currently many Indiana colleges and universities have related components in place, but the effort to synthesize the pieces into a banking major has never been undertaken. Creating a banking major is a long-term process, as it is essential to meet the needs of our academic partners, which take time to fulfill. However, progress has been made. IBA representatives have had multiple conversations with university leaders throughout the state, our dialogue has been encouraging, and a foundation of mutual interest has been set. Additionally, we have done some specific reach-out to universities to forge links between banking and university environments. At the IBA Annual Convention in September, we hosted a contingent of business students and a professor from the University of Evansville to attend the convention, as a welcome to Indiana banking.

8 NOVEMBER / DECEMBER 2018 As of this writing, I’ve now been working for the IBA for four whole months! I’ve really enjoyed my time with the IBA so far, and I’m excited to dive in further to my main role of serving our members. I had a great time at our Annual Convention in September meeting some of you while I was running around taking photos and recording video. As IBA’s member engagement specialist, I’m responsible for just about anything you can think of related to digital communications. I run all of the social media accounts, which means producing different types of visual media – videos, photos and graphics, mainly. I also produce visual content on behalf of our member banks. Some of my other responsibilities include producing IBA E-News, our weekly newsletter, and assisting with Hoosier Banker. I graduated from Indiana University in May with a degree in journalism. In the journalism program, I was encouraged to try out many different types of storytelling in order to establish my strengths as a communicator. I tried to nail down just one type of storytelling to pursue, but I found something to like in almost everything I tried, especially in visual storytelling. I thought that being a “jack of all trades” in college would be my downfall, but it ended up being a strength, as I am able put those skills to work here at the IBA. I originally became interested in communications because my high school English teacher, Mrs. Smith, encouraged me to develop my ability to write and urged me to put that talent to use. Mrs. Smith also taught journalism, so I started writing for the school newspaper. Eventually I decided that writing was what I wanted to do, and I headed to IU to pursue journalism. After a year or so in college, I realized that my passion didn’t necessarily lie in writing, but in communication in general. I began exploring other forms of communication. My experience in videography also began in high school – I learned how to film and edit videos when I was in a broadcast journalism class. I went to a small school, where we had to be creative to find news, and our main task in that class was creating a weekly newscast. We had to cater to all our students, ranging from kindergarteners through high schoolers, so we got really silly and creative with our newscasts in order to engage our full audience. Before I knew it, I was dedicating every study hall and even hours after school to making those videos. From that experience, I fell in love with creating videos. I loved seeing how video can grab people’s attention and made them laugh while still relaying relevant information. I never really thought about making videos as a potential professional skill, however, and I stopped making videos for a while once I graduated high school. I picked videography back up again in my sophomore year of college when I was involved with a Christian campus ministry called Reformed University Fellowship (RUF). I started making promotional videos for RUF events, solely because I was the only one who knew how. This experience reignited my interest in videography and ultimately inspired my professional goals. From those promotional videos I was able to get internships with Indiana INTERNnet and the Indiana Association for Adult and Continuing Education, which solidified my interest in doing videography professionally. The most important thing I learned in my internships was the value of teamwork and communication. Prior to those internships, I was always working independently. Whether it was for school assignments or small freelance jobs, I was used to relying on myself only. At times that’s a good skill to have, but now I prefer to collaborate and communicate on my projects here at the IBA – it takes so much guesswork out of the equation and gives me an opportunity to get valuable feedback. Outside of work I love spending time with my family, which is easy considering how close I live to them. I live in the third-floor apartment of my grandmother’s house, where my mom lives in the second-floor apartment, and my grandma lives on the ground floor. We each have our own spaces, but still share the same house, which is so fun. People always joke that my living situation sounds like a sitcom! For a little while my older sister, Alyssa, also lived with us before she went to grad school at IU. I’m very close with my family and I love being able to see them every day. I also have a cat, Dolly, who’s the sweetest and most mischievous cat ever. I love animals, and I had been so eager to have a pet that I adopted her as soon as I could – the end of my first week with the IBA. Dolly is black with bright green eyes, and only has three legs due to a dog attack she suffered when she was a stray. Today, she gets around just fine and is almost always running across my apartment at full speed playing with her toys. One of my favorite parts of working at the IBA is being a resource to banks that may have limited communication resources. For example, your bank might be doing a great service project, but maybe you don’t have anyone to take photos, make a video, or otherwise document or promote it. Or, maybe your bank has already completed a project, and you’d like the IBA to help get the word out to others. That’s where I come in. I love being able to serve our member banks in situations like that, and it goes to show how much the IBA cares for and wants to serve its members that they even hired me. I’m so happy to have a position that’s based on serving others while using my skills at the same time, and I look forward to connecting with more of you as I continue in this position. HB Emily Brooks Member Engagement Specialist Indiana Bankers Association ebrooks@indianabankers.org STAFF SELECTION

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 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 Lending Compliance Update Nov. 27 • IBA Center BSA Officer Forum Nov. 28 • IBA Center Ag Clinic Nov. 29 • Purdue University • West Lafayette Indiana Economic Outlook Forum Dec. 7 • Renaissance Indianapolis North Hotel • Carmel Internal Audit School Dec. 11-12 • IBA Center Advanced Commercial Lending School Jan. 9-10, 2019 • IBA Center Branch Management Series, Session I - New Year, New Start: Key Components for a Successful Year Jan. 15 • IBA Center Retail Banking Forum Jan. 16 • IBA Center BSA Officer Forum Jan. 17 • IBA Center Measuring Financial Conditions and Performance for Ag Business Jan. 17 • IBA Center Universal Banker Program Jan. 30-31 • IBA Center Legislative Briefing and Reception Feb. 4 • Hyatt Regency Indianapolis BSA Graduate School Feb. 5-6 • IBA Center CFO Forum Feb. 7 • IBA Center • Group 1 Feb. 8 • IBA Center • Group 2 Community Bankers for Compliance Series: Session 1 Feb. 12 • IBA Center Feb. 13 • IBA Center Feb. 14 • The Landmark Centre • Fort Wayne IRA Basics Feb. 13 • IBA Center Advanced IRA Feb. 14 • IBA Center Training the Credit Analyst Feb. 14-15 • IBA Center Risk Management Officer Forum Feb. 19 • IBA Center Outside Calling School Feb. 19 • IBA Center Senior Lender Forum Feb. 20 • IBA Center • Group 1 Feb. 21 • IBA Center • Group 2 Call Report Update Feb. 26 • IBA Center Marketing Directors Forum Feb. 26 • IBA Center IT & Operations Officer Forum Feb. 27 • IBA Center • Group 1 Feb. 28 • IBA Center • Group 2 Real Estate Lending Compliance March 5-6 • IBA Center New Account Documentation and Compliance March 5 • The Landmark Centre • Fort Wayne March 6 • IBA Center Leadership Development Program: Session 1 - It’s Simple, but It Isn’t Easy March 5-7 • Wooded Glen Retreat and Conference Center • Henryville Risk, Response, Reputation March 12 • IBA Center Consumer Loan Documentation March 13 • IBA Center Commercial Loan Documentation March 14 • IBA Center Administering Construction Loans March 19 • IBA Center Analyzing Tax Returns in Self-Employed and Small Business Situations March 20 • IBA Center Human Resource Directors Forum March 21 • IBA Center Preparing for Your IT Exam April 9 • IBA Center Vendor Management April 10 • IBA Center Consumer Lending School April 16-17 • IBA Center TRID Essentials April 22 • IBA Center Branch Management Series: Session 2 - Leading, Developing and Engaging the Team April 23 • IBA Center Essentials of Banking: Session 1 - Banking 101 April 24 • IBA Center BSA Officer Forum May 1 • IBA Center Retail Banking Forum May 2 • IBA Center Mega Conference May 13-15 • Indiana Convention Center • Indianapolis Commercial Lending School June 3-7 • IBA Center Risk Management Officer Forum June 11 • IBA Center

10 NOVEMBER / DECEMBER 2018 COVER STORY George Ferriell Upholding the spirit of banking In a recent video, “The Story of Banking,” George W. Ferriell, president and CEO of Bath State Bank and president of Bath State Bancorp, defines the essence of community banking. “It’s about getting out into communities,” he says, explaining that his staff give “everything that they have” in their outreach to community. “That’s what community banking is all about,” Ferriell summarizes. The story of banking has been George Ferriell’s story for nearly four decades. He began his banking career with First National Bank of Richmond in 1980 as a branch manager and loan officer after two years of prior experience with Household Finance Corp. In 1986, Ferriell made the move to his final banking home when he joined Bath State Bank as operations officer. He since served in positions including head of lending before being named president and CEO in 2007. In everything that he does, Ferriell embodies the community banker spirit by engaging 100 percent, whether in teaching financial literacy, serving on a community board, or supporting 4-H auctions. He has been a volunteer for Junior Achievement for 31 years, and he also serves on the board of JA of Eastern Indiana. Additionally, Ferriell is active with the Franklin County Community Foundation, the Indiana Council for Economic Education Committee and the Indiana Financial Literacy Task Force, and is a member of the Indiana Bankers Association board of directors. He is a graduate of Hanover College, the Midwest Agricultural Banking School, the School of Deposit Counselors, the National School of Real Estate Finance and the Graduate School of Banking at the University of Colorado. Ferriell’s wife Tina is likewise active in the community. She serves as office manager of the Franklin County Community Foundation, and soon will be retiring. George and Tina enjoy spending time with their four grown children and six grandchildren. As year 2018 winds to a close, Ferriell is preparing to retire as bank president and CEO, effective Dec. 31. He will retain title as president of Bath State Bancorp. Ferriell’s successor is Branden Logue, executive vice president and chief operating officer, who is to become president and CEO of Bath State Bank in 2019. Hoosier Banker had the opportunity to interview George Ferriell about his community banking career. What are your responsibilities as president and CEO of Bath State Bank? “I jointly oversee the bank with Branden Logue, my successor. We have a unique relationship. Branden has his areas of responsibilities, I have mine, and we respect

Hoosier Banker 11 those areas on each side. We’re always there for each other. “Branden manages our funds management and investments, and has responsibility for all the board reporting. I still oversee on the lending side, because I grew up in lending, and I also oversee a lot of the compliance area. “This arrangement allows me to devote more time to public relations work for the bank. I enjoy getting out and meeting with customers, stockholders and various community leaders. It also allows me to participate with the IBA and bring that awareness back to our staff, and to stay active in volunteer work.” Your bank serves more than 30 counties from its two rural Indiana locations. What accounts for that success? “First, we have a strong marketing program. At the same time, our best marketing program is word of mouth, so we make sure we are visible in all of the counties we serve. We go to 10 different 4-H auctions to support the children of the families that bank with us. “Second, we have a good staff, especially in agriculture. Everyone in our ag department has grown up on farms, participated in 4-H and are still farming or involved with their family farms. This is significant, because our staff can relate to our farmers, in good times and bad. PHOTO CAPTION: George Ferriell is president and CEO of Bath State Bank and president of Bath State Bancorp. He is scheduled to retire from the bank year-end, but retain his title with the holding company.

12 NOVEMBER / DECEMBER 2018 “Mortgage lending is another strength. Even though interest rates have gone up, and mortgage lending is projected to start slowing, it hasn’t slowed down for us. We are extremely busy. “We also keep up with technology, because it plays a significant role. And we have a board of directors that supports us in all that we do, which helps us be successful.” What was a pivotal moment in your career development? “When I was five years into my career, still working at First National Bank in Richmond, an insurance agent asked if I’d like to become licensed and sell on a part-time basis. I was young and energetic, and I thought the extra income sounded great. Continued on page 14. George Ferriell (left) works closely with Branden Logue, his successor as president and CEO of Bath State Bank. “I talked to the executive vice president at the bank about the opportunity. He told me that if I really wanted to excel in my banking career – not necessarily make the most money, but get to a higher level – I should devote all my time to my job. “I took his advice and turned down the insurance offer. Then my career advanced faster than I expected, with a couple of promotions at First National before coming to Bath State Bank. “Once I came to Bath State Bank, I devoted a tremendous amount of time to it, and sometimes it seemed like I was here day and night. But one year to the day after I came here, I was elected to the board of directors. Then, 11 years ago, I was named president. “So the advice of that EVP paid off. It was a big decision to turn down the insurance opportunity, but it was the right career choice.” What do you enjoy most about your career? “I enjoy making a difference by learning about people and helping them achieve their goals. Making a difference is what it’s all about, and it applies to staff, customers, shareholders and community. “I know all of our staff members, including their families and what’s going on in their lives. It’s important to me to be able to walk into anybody’s office and ask them about their child or their spouse, or whatever career their spouse is in. “I also love getting out in the community. At 4-H auctions, I’m out and about the whole evening, talking to dozens of people. I enjoy doing that. “Back when I was at First National Bank, our president impressed on me the idea that bankers represent their bank every time they’re out. I’ll never forget him saying that you represent your bank at all times, even when you’re at home in your pajamas. “I didn’t fully embrace that idea at the start, but I grew into it, and now I’m very cognizant of representing the bank. No matter if it’s in the evening, the morning, a Sunday or a holiday, I am proud and honored to be doing what I love and also representing the bank. That means the world to me.” What are the biggest challenges to banking? “There are many, starting with the various regulations, but here’s a fact: Compliance challenges and regulations and farm credit are here, and they’re going to continue to be here in the future. We have to face those challenges head on and turn them into opportunities. “Another challenge is keeping a good succession plan in place, which means not only finding qualified personnel, but finding people who fit your culture. It also means having a strong succession plan for your shareholders and directors. “Expanding your niche is another challenge. Many banks lack in expanding their expertise, and then must merge to become stronger. “For Bath State Bank, our niche is agriculture, which is ever-changing. We are constantly coming up with new programs to fit our farming clients’ needs.” How can bankers become more engaged in grassroots advocacy? “Pay attention to IBA emails and updates to gain understanding of bills and to appreciate the need to contact legislators. Thanks to the IBA, I have learned how important George Ferriell greets Kelsea Brown, head teller/customer service representative, in the lobby of Bath State Bank. Ferriell takes pride in knowing the names of all his employees, plus their spouses and children.

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14 NOVEMBER / DECEMBER 2018 different traits together, you have a strong, well-balanced team. A team that works well together can accomplish its goals and can turn any challenge into an opportunity.” How is your retirement being structured? “I’m going to stay on as president of the holding company and will be working from home, with some travel involved. I’ll be starting a shareholder relationship program to work on shareholder succession planning. I’ll also be looking for additional revenue sources for the holding company. “I want to continue to stay involved with Junior Achievement, because I’m on an executive committee and board of directors. I want to stay involved with the IBA as much as I can. I’d like to continue to review advocacy materials and encourage bank staff to participate. “Mostly, I look forward to family time. Tina and I have six grandchildren, plus I have another son and daughter who don’t have children yet, so we may end up with more grandchildren. Also my father is 94, and we care for him a lot, and I’m thankful for that time together. “I have a passion for my job, and that passion will never go away, but now it’s time for family.” HB advocacy is, not only to our bank, but also to the industry. “What we need to know is in front of our eyes every day from the IBA team. I sometimes read the information about bills two or three times, to make sure I understand how it pertains to Bath State Bank. Every IBA banker should read those bills, because there will always be something that pertains to each bank and staff. “Also, if there’s an issue and we need to contact legislators, IBA makes it easy through email reminders. I read everything when I hear from the IBA Government Relations Team. “I enjoy doing all I can to assist the IBA team. Assisting IBA in its fight against legislation harmful to banking makes all our lives easier and more enjoyable.” You are extremely active with Junior Achievement and other organizations. What is your community service philosophy? “For our staff, there is no limit, because it is common sense to help your communities. We have employees involved in many areas throughout several counties. “We don’t have any limitations on it. If an employee needs to be gone longer from work, we plan ahead and have people fill in for one another. Even if they need to be gone all day, I allow them to do it. “Volunteers are special people. They make our communities prosper, and I encourage our staff to be involved.” Your president’s message on the bank website states, “Having the right people by your side is what matters.” Please explain. “You can be a great player on the field, but if you do not have the right players out there with you, you will not win any games. We have worked diligently to learn employee’s strengths and to put them in the right places, where they can be the most efficient and valuable to the bank. “Years back, when we were building our staff, it was a learning process. At times we thought someone would be good in a position, but it wouldn’t work out. So we started studying people’s strengths and weaknesses. “My philosophy is to strengthen the strengths, eliminate the weaknesses, and let people do what they do best. We have built a very strong team with that, especially with our supervisors and within their departments. “When you bring these The motto of Bath State Bank has evolved through the years to: “The Bank by the Side of the Road That Is Always a Friend!” VIDEO BONUS The Story of Banking George Ferriell exemplifies the community banking spirit in “The Story of Banking.” To view, click on the video icon in HB Digital, or visit: indianabankers.org/iba-commitment-community-campaign-videos. Branden Logue (left) and George Ferriell stand by a display of trophies that demonstrate Bath State Bank’s commitment to Junior Achievement and the Indiana Bankers Association.

Hoosier Banker 15 First State Bank Middlebury - Goshen, IN First Bank of Berne Operations Center - Berne, IN State Bank of Lizton Main Office & Branch - Brownsburg, IN K4 believes in designing and creating environments in which banks can succeed and thrive. We believe it is possible to design your space to attract both younger and older generations. We believe you can integrate technology while still preserving the traditional core values and legacy of your institution. We believe that people still value personal relationships. We believe in brand consistency and balance. We believe in the future of the bank branch and in the Indiana Banking Communitiy. Whether you need a new facility, an interior remodel, or a graphics refresh; we provide appropriate design solutions for where and when you need them. We are proud to share our financial portfolio and have completed over 2,000 financial projects in the last 18 years. Contact us today, we look forward to building a relationship with you. Look for K4 at the 2019 IBA Mega Conference & Annual Convention WAYNE INTERIOR SHOT FPO ARCHITECTURE + DESIGN Wayne Bank & Trust - Cambridge City, IN

16 NOVEMBER / DECEMBER 2018 ARTICLE SPOTLIGHT

Hoosier Banker 17 Christina M. Bennett, CMP Vice President- Meetings & Events Indiana Bankers Association cbennett@indianabankers.org @cbennettin In September at the French Lick Resort, more than 400 attendees gathered for the annual meeting of educational offerings, association business proceedings and camaraderie. This year’s event began with a golf outing on a less-than-great day on the Donald Ross Course and a wine and spirits tasting session at the French Lick Winery. This year we broke from tradition and held the Chairman’s Banquet on the first evening of the convention. Past IBA presidents and chairmen were recognized for their contributions to the Association, and members of the 40 Year Club were recognized. New 40-year members were also inducted on this evening. Read more about the 40 Year Club on page 20. The ceremonial passing of the gavel, from 2018 Chairman Clay Ewing to 2019 Chairman Andrew Briggs, also took place. Tom Fite, director of the Indiana Department of Financial Institutions, was also on hand to present a Sagamore of the Wabash award to Clay on behalf of Gov. Eric Holcomb. The grand prize drawing, sponsored by The SHAZAM Network, also took place, and Jessica Carroll from The New Washington State Bank was the big winner, taking home a stunning diamond bracelet. After the proceedings concluded, the group was entertained by ventriloquist Steve Brogan, who provided a lot of laughs. Thank you to the Chairman’s Banquet sponsor, the IBA Group Insurance Trust, Insured by Anthem, and also to the entertainment sponsor Smith Amundsen LLC. The next day and a half saw a wide range of educational topics, from changes in our industry to marijuana banking, cybersecurity, finding deposits and an economic outlook. Damian Mason was back as the emcee and kept the group laughing between sessions. Presentations also were made by leadership from the American Bankers Association and the Independent Community Bankers of America. Clay Ewing, 2018 IBA chairman, led the Monday luncheon business meeting, including proceedings for election of officers for 2019. Clay also gave an update on the status of the Association, including legislative success, a summary of educational programming and events, and advancements in developing a banking degree. The legislator of the year was also presented at this luncheon. Congratulations to State Rep. Michael Karickhoff for being named the IBA Legislator of the Year. Monday night was the Future Leadership Division silent auction. This year’s event also featured a wine pull and raised a total of $21,422 for Indiana BANKPAC. Please plan to join us next year for the IBA Annual Convention, scheduled for Sept. 15-17, 2019, in French Lick. HB IBA Annual Convention Getting ready for tomorrow

18 NOVEMBER / DECEMBER 2018 New Officers Elected Effective Jan. 1, 2019 Chairman – Andrew J. Briggs, Bank of Geneva First vice chairman – Lucas White, The Fountain Trust Company, Covington Second vice chairman – Michael S. Zahn, First Federal Savings Bank, Huntington Other Board Elections Effective Jan. 1, 2019 John M. Kennedy, Greenfield Banking Company Garry D. Kleer, First Bank Richmond Luke J. Yaeger, Commerce Bank, Evansville Board Retirements Effective Year-End 2018 George W. Ferriell, Bath State Bank Kent L. Parisien, First Savings Bank, Odon Annette M. Russell, Security Federal Savings Bank, Logansport Winners of the 2018 IBA Annual Convention golf outing, from The First National Bank, Monterey, were: Clip, George and Mark Wamsley, and Keven Crawford. Congratulations, and thank you for donating the winnings to Indiana BANKPAC! American Bankers Association Angott Search Group Approval Payment Solutions Inc. The Baker Group Bankers’ Bank BITS BKD, LLP Boenning & Scattergood BOK Financial Institutional Advisors Check Printing Contract Consulting CIBC Bank USA Cinnaire Corporation Clark Schaefer Hackett Crowe LLP Donaldson Capital Management Donnelly Penman & Partners Equias Alliance, an NFP Company Executive Benefits Network Federal Home Loan Bank of Indianapolis Haberfeld Associates IBA Group Insurance Trust, insured by Anthem Infotex IBA Annual Convention Elections ARTICLE SPOTLIGHT Thank You, IBA Annual Convention Sponsors Investors Title Insurance Company The Invictus Group IT Resource Inc. K4 Architecture + Design Keefe, Bruyette & Woods The KeyState Companies Krieg DeVault LLP Matrix Integration PCBB Plante Moran ProBank Austin Profit Resources Inc. Promontory Interfinancial Network LLC PULSE, A Discover Company Renninger & Associates LLC The SHAZAM Network Simplifile SmithAmundsen LLC TIB-The Independent BankersBank, NA Title Center of Indiana LLC Travelers Wilmington Trust NA Young & Associates Inc. Golf Outing Winners HB Digital: Click the hand icon to view the full gallery of photos from the 2018 IBA Annual Convention.

Hoosier Banker 19

Builders of Banking Celebrating the foundation of Indiana banks For more information about membership opportunities, contact the IBA offices at 317-387-9380, or visit indianabankers.org A total of 85 IBA-member banks have been in business 100 years or longer, setting the foundation for the proud heritage of banking in the Hoosier state. These banks endured the Great Depression, wars, droughts, economic downtowns and other challenges, yet have remained in business and continue to serve their communities. More than 225 bankers have served through the years as presidents and chairmen of the IBA, including leaders from merged organizations – the Indiana League of Savings Institutions and the Community Bankers Association of Indiana. These banking professionals have given countless hours of time and talent to voluntary leadership. This club recognizes those bankers who have served 40 or more years in banking in Indiana. More than 400 current members of the club are invited each year to the Chairman’s Banquet at the IBA Annual Convention. Additionally, club members may receive Hoosier Banker magazine, helping to keep retirees in touch with the IBA. Because the building of banking is an ongoing process, the IBA reaches out to emerging bank leaders through the Future Leadership Division to offer opportunities in education, networking and leadership development. Also, the FLD advisory board president serves on the IBA board, giving voice to 270+ FLD members. The Indiana Bankers Association salutes the builders of Indiana banking, the people and institutions that serve as the foundation of the Indiana banking community. An association is as strong as its members, and the IBA benefits from a membership fully dedicated to Indiana banks and the communities they serve. Below are the four categories of IBA Builders of Banking. To view member lists in each category, click on the corresponding logo in HB Digital, or visit indianabankers.org/buildersbanking. To request hard-copy rosters, contact Laura Wilson at lwilson@indianabankers.org, 317-333-7146. 20 NOVEMBER / DECEMBER 2018

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