HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! 2018 IBA Banking on Women Conference JANUARY / FEBRUARY 2019 Andrew Briggs Fifth-generation bank leader
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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 JANUARY / FEBRUARY 2019 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......................................... Andrew J. Briggs, Farmers & Merchants State Bank, Archbold, Ohio First Vice Chairman ...............................................Lucas White, The Fountain Trust Company, Covington Second Vice Chairman...................................... Michael S. Zahn, First Federal Savings Bank, Huntington Immediate Past Chairman ...............................................Clay W. Ewing, German American Bank, Jasper President and CEO...................................... Amber R. Van Til, Indiana Bankers Association, Indianapolis 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 D. 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 Garry D. Kleer ..........................................................................................................First Bank Richmond Michael C. Rechin .....................................................................................First Merchants Bank, Muncie 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 Gregory Inman .......................................................................Scottsburg Building and Loan Association John M. Kennedy .......................................................................................Greenfield Banking Company Karen B. Woods ....................................................................................... First Financial Bank, Cincinnati Southwest Region Directors Matthew W. Howrey ............................................................................................North Salem State Bank Jamie R. Shinabarger ........................................................Springs Valley Bank & Trust Company, Jasper Luke J. Yaeger .............................................................................................Commerce Bank, Evansville FUTURE LEADERSHIP DIVISION ADVISORY BOARD Kirby D. Drey, President .....................................................................................................Kentland Bank Melodie K. Yarnell, Vice President ..........................................................Jackson County Bank, Seymour Greg Barnes Jr. ...................................................................................................STAR Bank, Fort Wayne 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 Zach Hockersmith .............................................................Hoosier Heartland State Bank, Crawfordsville J. Daniel Maddox ...................................................................................Citizens State Bank, New Castle Jon-Myckle D. Price ..............................................................Security Federal Savings Bank, Logansport 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. 103 No. 1 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 @indianabankers Publisher: Amber R. Van Til Editor: Laura Wilson Advertising: Rod Lasley Submit materials to: HB@indianabankers.org Copy deadline: First of the month preceding publication. Advertising: Rates available at indianabankers.org. Advertisers should reserve space by the first day of the month preceding publication, and submit artwork by the fifth of the month preceding. Hoosier Banker advertising is available to members and associate members of the Indiana Bankers Association only. Subscriptions: Hoosier Banker subscriptions are provided free of charge to members and associate members of the Indiana Bankers Association. Public access to HB Digital is available at indianabankers.org. About Hoosier Banker: Award-winning Hoosier Banker magazine is the flagship publication of the Indiana Bankers Association. Its subscriber base includes all banks and thrifts headquartered in Indiana, IBA-member banks headquartered out-of-state, and IBA associate members. HOOSIER BANKER MAGAZINE indianabankers.org COVER STORY 10 Andrew Briggs: Fifth-generation bank leader ARTICLE SPOTLIGHT 16 2018 IBA Banking on Women Conference Laurie A. Rees, IBA FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Andrew J. Briggs, Farmers & Merchants State Bank 8 Board Review Karen B.Woods, First Financial Bank, Cincinnati 9 IBA Calendar of Events 24 The IBA Presents the 2019 Board of Directors 30 Outlook for 116th U.S. Congress Rep. Trey Hollingsworth, U. S. Congress 31 A Tribute to Bob Nelson, 1923-2018 42 Midwest Agricultural Banking School 48 IBA Leadership Development Program FLD FOCUS 20 2018 FLD Leadership Conference Josh Myers, IBA GR SUMMIT 28 GR Initiatives Dax Denton and Eric J. Augustus, IBA INDIANA BANK & THRIFT STOCK UPDATE 32 Stock Analysis Michael A. Renninger, Renninger & Associates LLC DIRECTORS / SENIOR MANAGEMENT 34 Asset/Liability Rate Risk Lester Murray, The Baker Group 36 Charter a New Bank Greyson E. Tuck, Gerrish Smith Tuck PC PRODUCTS & SERVICES PROFILE 38 Track Insurance and Protect Collateral Rod Lasley, IBA COMPLIANCE CONNECTION 40 Consumer Loan Fee Changes Brett J. Ashton, Krieg DeVault LLP HUMAN RESOURCES 44 Employee Background Checks Debra A. Mastrian, SmithAmundsen LLC PSP SHOWCASE 46 Banks Continue Community Support Keith Broadnax, Cinnaire Corporation Fred Hash, 430 Park Avenue Consultants DEPARTMENTS 31 In Memory of 33 Staff Celebrations 35 Anniversary Milestones 41 Honorable Mentions 45 IBA Employees of the Month 47 Banking Center News 50 Associate Members’ Corner 50 Taking It Easy 52 Banking on Community 53 From the Board Room 54 Bankers on the Move 58 Advertisers Index
6 JANUARY / FEBRUARY 2019 Click on the video icon in HB Digital to view the IBA Foster the Need holiday video. Foster the Need was created by the IBA Leadership Development Program (LDP) team of George Goodlink, Lake City Bank; Kristen Lovell, Crossroads Bank; Shane Martin, Security Federal Savings Bank; and Krisha Sutphin, North Salem State Bank. See page 49 for a listing of all 2018 LDP graduates. embrace the holiday spirit by supporting a cause created by member bankers. Called “Foster the Need,” the program came about through one of the 2018 Leadership Development Program working groups. This outstanding program coordinates with the Indiana Department of Child Services to provide supply kits to children entering into foster care, to ease the transition process. Certainly, this is only one of many community initiatives that Indiana banks engage in throughout the year to help Hoosiers of all ages. Thank you for all you do in support of the communities you serve. HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT Legislative Reception & Briefing Feb. 4 This annual event is a prime opportunity to discuss issues of the day with Indiana lawmakers. Leadership Development Program March 5-7 “It’s simple, but it isn’t easy” is the theme of the first session of this life-changing program. FLD Day at the Statehouse March 12 IBA Future Leadership Division members and prospective members engage in hands-on advocacy. Don’t Miss Out! Welcome to 2019. We open this year with new programs to share with you. First, allow me to remind you of the inaugural IBA Commitment to Community Award, designed to bring attention to the community outreach of Indiana banks. The winner of the 2018 award is to be announced at the Mega Conference in May. We invite each IBA-member bank to submit a nomination by Feb. 15. Details are available at indianabankers.org/commitment-community-award, or contact Laura Wilson at lwilson@indianabankers. org, 317-333-7146, for more information. Another “new” is the reinstatement of a past successful program, the IBA Indiana Economic Outlook Forum. Recreated in December, the 2018 forum featured guest speakers Gerry Dick of Inside INdiana Business news and James Bullard, president and CEO of the Federal Reserve Bank of St. Louis. While past economic forums were held in January, moving the event forward to December in anticipation of the new year seemed to be the magic formula. Nearly 200 bankers and sponsors, plus their respective business guests, filled almost every seat. The program provided an excellent view into what to expect in the economic landscape of 2019. Also this year, we are increasing our efforts to help you tell your story. Advocacy-based talking points are available on the IBA website at indianabankers.org/iba-talking-points. These can help you if you receive media requests, have speaking engagements, or simply would like to review concise highlights of legislative topics. Also, the IBA has created a communications toolkit at indianabankers.org/communications-toolkit. The purpose is to assist member banks with communications needs in both traditional and social media. Additionally, the toolkit provides a quick-upload webform for those banks that would like an online means of submitting news for publication in Hoosier Banker. That webform is at indianabankers.org/ submit-news. Currently, our Government Relations Team is back at the Indiana Statehouse, reviewing bills and making plans for the Legislative Reception and Briefing on Feb. 4. In the meantime, a new endeavor of the GR Team is the creation Ambassadors of Strategic Advocacy (ASAs), bank point people who coordinate PAC information and grassroots efforts among their personnel. As ever, our educational offerings continue to bring you professional opportunities. Last fall, we wrapped up a successful second year of the Banking on Women Conference. Congratulations to Jessica Carroll of The New Washington State Bank, Charlestown, who was named the 2018 IBA Woman of the Year at the event. Finally, I’d like to share that in December the IBA staff elected to VIDEO BONUS
Hoosier Banker 7 Internships for the 2019 program begin this summer. This program is starting out strong, with internship opportunities available at about 15 banks. The IBA is now working with universities throughout the state to fill those spots. The Indiana Banking Internship Program is more than a simple matching service. It includes detailed guidelines, for both participating banks and students, on how to make internships successful. Thank you to the banks that are part of this year’s program. As for the banking major goal, Clay and IBA staff devoted a great deal of time last year traveling around the state and meeting with university leaders. There is strong interest in a couple of universities, though there is still work to be done in making a banking major happen. It will take more time to reach this goal, but progress is being made. Thank you to Clay for recognizing the need to prepare for the future, and thanks to all of you for the honor of serving you this year as IBA chairman. I look forward to working with you throughout the year. HB NOTABLE QUOTES Bank Community Service on Twitter Springs Valley Bank & Trust • @SpringsValleyBT) • Oct. 18 “Springs Valley employees Bernita Berger and Karen Stenftenagel volunteered their time today at Jasper Middle School’s Ice Cream Social. Springs Valley is this year’s sponsor of the 1st Quarter Ice Cream Socials for 6th, 7th, and 8th grades!” German American Bank • @_GermanAmerican • Nov. 7 “With the help of our generous communities we were able to present a check for $11,962 for the Quest for a Million Pennies for the Hadi Shriners Children’s Hospital Transportation fund! Thank you for all of your support!” Hoosier Heartland State Bank • @myHHSB) • Nov. 20 “We’re ringing the bell for the Salvation Army today at County Market! Stop by and donate any spare change to a great cause!” First Savings Bank • @fsbindiana) • Nov. 30 “Proudly supporting our communities! First Savings Bank’s employees donated $1000 and the bank matched a $1000 to purchase and donate 30 bikes and 8 helmets for the 103.1 ‘Bike or Bust’ holiday drive. Proud of our staff!!” Centier Bank • @CentierBank) • Dec. 3 “Our #Elkhart North team did us proud this weekend when they helped give away 400 books to children at the Elkhart Public Library (@myEPL)!” Follow IBA Twitter @indianabankers Andrew J. Briggs Chairman Indiana Bankers Association First Senior Vice President for Business Development Farmers & Merchants State Bank, Archbold, Ohio CHAIRMAN’S REPORT Hello, fellow bankers, and thank you for this opportunity to serve as 2019 chairman of the Indiana Bankers Association. This new year is an exciting one for my team at Bank of Geneva, which has now merged with Farmers & Merchants State Bank, Archbold, Ohio, as of the start of 2019. The merger went smoothly, due to the blending of two like cultures. As an example, both banks have 1935 Chevrolet firetrucks to use for parades and other promotional events. How many banks happen to have a 1935 Chevy fire engine? Our merged bank now has two. Both banks also share values, and one very important value is the need to engage in grassroots advocacy. There is a major opportunity coming up Feb. 4 when the IBA hosts its Legislative Briefing and Reception. This annual event starts with a briefing at 4 p.m., and, this year, includes a panel discussion by the WFYI “Indiana Week in Review” crew for no-holds-barred debate and discussion. Following the briefing, bankers have a chance to mix and mingle with legislators at the reception. Our elected officials appreciate and enjoy this annual reception, because it’s a welcomed break from their busy schedules, and a chance for them to meet with their constituents. Please be sure to put Feb. 4 on your calendar. Another legislative event coming up is the IBA Future Leadership Division Day at the Statehouse, scheduled for March 12. This is your chance to send your up-and-coming bankers to learn firsthand about advocacy. Grassroots support from all levels and areas of the bank is essential, and one goal of the IBA is to encourage more FLD members to engage, such as at the annual Washington Trip this fall. This engagement builds both the government relations capabilities of the IBA and also the next generation of bankers. Please consider who in your bank should be part of the Future Leadership Division. The FLD has been a tremendous success, now counting at about 300 members strong. You can read more about it in the FLD Focus article in this issue. Other future-focused endeavors of the IBA are two very important initiatives started by my predecessor, Clay Ewing of German American Bank, who served as 2018 chairman of the IBA. Under Clay’s guidance, the IBA took on two ambitious goals: to start a bank internship program, and to make headway on creating a banking major in Indiana. On the internship side, the IBA has succeeded in rolling out the Indiana Banking Internship Program. The purpose is to bring new talent to the Indiana banking community by encouraging internships, with the IBA acting as the liaison between Indiana colleges and universities and IBA-member banks.
8 JANUARY / FEBRUARY 2019 Thank you for the opportunity to serve on the Indiana Bankers Association board of directors. I was named to the board last year as a southeast region director through my affiliation with First Financial Bank, headquartered in Cincinnati, where I have been serving as general counsel since First Financial’s merger with MainSource Bank in April 2018. I have also recently been named the chief risk officer of First Financial Bank. At First Financial Bank, my responsibilities include overseeing the legal department, risk and compliance department, and human resources department. The legal team responds to all of the legal needs of the bank and the holding company. The risk and compliance department operates as a second line of defense to address the various compliance and enterprise risks facing the bank. And the human resources department is responsible for all employment matters within the organization. In all I have nine direct reports, each of whom oversees a very strong team in each department. I regularly meet with the employees who report to me, individually and in broader groups, and we all maintain close contact through telephone and email. Before joining First Financial I was with MainSource Bank, headquartered in Greensburg, which I joined in January 2016 after 20 years practicing law. My most recent law position was serving as a partner with Krieg DeVault LLP, Indianapolis, focused on representing financial institutions and corporate clients. My law background, with its focus on financial institutions, helped very much in the transition to working inside a bank. Both law and banking environments require dealing with a multitude of issues covering a range of topics. Now, as bank counsel and risk officer, my day is just as varied as when I was working in a law firm, attending to multiple clients in various departments. I enjoy working directly with the bank because of the emphasis on business decisions in addition to legal decisions. Whether serving as a corporate lawyer or as in-house counsel, it’s critical to know the industry and be well-versed on company matters. My career began shortly after I completed law school at Indiana University when I had the opportunity to join a small law firm as an associate. The firm had approximately 35 lawyers, which makes for a different scenario than a large firm. While new lawyers might come into a very large firm with a specialty, at a smaller firm, you do what needs to be done, then begin to develop focus over the first year or two. In my case, the focus happened quickly. During my first week, one of the partners asked me to join a team that was working on a bank transaction. I worked on that transaction for the next six months and then continued to work on similar assignments. Soon my path was clear; I wanted to focus on transactional law. Transactional lawyers do not go to court and litigate. Instead, we focus on the transactional side of law, such as general corporate matters, mergers and acquisitions, securities and capital transactions. Before I entered officially into banking, I had the opportunity to practice law for 20 years, representing both public and private companies and banks. I also have a connection to banking through family. My late grandfather, Carlos A. Life, was a banker. He was trained as a lawyer, but never practiced law. Instead, he began a banking career in Chicago in the 1920s, then came to Indiana in 1940 and purchased Wabash Valley Bank and Trust Company, Peru, where he served as president. Wabash Valley was a family-owned bank. My mother and aunt served on the board, two of my uncles served as president after my grandfather’s retirement, and several of my cousins are still in banking. Additionally, one of my uncles, Richard A. Life, served the IBA as president in 1974-75.* I started coming to IBA functions about 15 years ago. Over time, I’ve been able to meet a lot of good people, learn about the industry, get to know some of the newer generation of bankers, and really understand the history of banking. Banks have done great things, especially in the state of Indiana. That made it easy to say yes when I was asked to serve on the IBA board. My life is busy and satisfying, both at work and at home. My husband Ron teaches chemistry at North Central High School in Indianapolis. We have two children, both very active with soccer. Our son is a sophomore at North Central, and our daughter is a seventhgrader at Saint Richards Episcopal School. As a family, we love to travel. A couple of recent favorite trips were skiing in Colorado last year and visiting France the year before. Our other family hobby is traveling to Ann Arbor, Michigan, to watch football at the University of Michigan, my alma mater. Anyone who knows me would be disappointed if I didn’t drop a Michigan reference! We go as often as we can, and we all love it. I also love my work with bankers. The many bankers I’ve met throughout the years are honest, interested in their communities and incredibly giving of their time. They understand the importance of their role in the community, and they take it seriously. I am proud to represent this industry, because it’s foundational, it’s everywhere, and it’s somewhat creative. Notwithstanding the constraints of regulators, banking is a solution business. It is an honor for me to be part of the banking community. HB Karen B. Woods Southeast Region Director Indiana Bankers Association General Counsel and Chief Risk Officer First Financial Bank, Cincinnati BOARD REVIEW * Prior to 1987, top bank leaders of the Indiana Bankers Association were titled as president, and the highest-ranking staff member was executive vice president. A structural change in 1987 renamed the position titles to chairman and president, respectively.
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 Advanced Commercial Lending School Jan. 9-10 • 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 FLD Day at the Statehouse March 12 • The Westin Indianapolis 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 Senior Retail Banking Forum May 2 • IBA Center Community Bankers for Compliance - Session 2 May 7 • IBA Center May 8 • IBA Center May 9 • The Landmark Centre • Fort Wayne Leadership Development Program: Session 2 – Do Something That Scares You May 8-10 • Wooded Glen Retreat and Conference Center • Henryville Mega Conference May 13-15 • Indiana Convention Center • Indianapolis Regulation Z University May 22-23 • IBA Center Commercial Lending School June 3-7 • IBA Center Workshop for Loan Assistants and Loan Processors June 6 • IBA Center Risk Management Officer Forum June 11 • IBA Center Senior Lender Forum June 12 • IBA Center • Group 1 June 13 • IBA Center • Group 2 Essentials of Banking: Session 2 - Business Operations and Management June 18 • IBA Center
10 JANUARY / FEBRUARY 2019 COVER STORY Andrew Briggs Fifth-generation bank leader The banking legacy of Andrew J. Briggs, 2019 chairman of the Indiana Bankers Association, goes beyond his 40+ years of banking. It extends to early childhood, when he and his brothers would count pennies, nickels and dimes on Saturdays in the family-run Bank of Geneva. But his history goes back even further to five generations ago, when his great great grandfather, James Day, helped found a bank in Ohio and served as its president. The family tradition moved to Indiana, when Briggs’ great grandfather, A.G. Briggs, co-founded the Bank of Geneva and became its first president. Three more generations of Briggs led the Bank of Geneva, culminating with Andrew Briggs, who began his tenure as president and CEO in 1994. Today, the bank has entered into a new phase with its recent merger with Farmers & Merchants State Bank, Archbold, Ohio. Briggs now serves Farmers & Merchants as first senior vice president for business development, making him the institution’s highest-ranking banking officer in the state of Indiana. The merger has been smooth, reports Briggs, due to strong cultural similarities. For example, both Farmers & Merchants State Bank and the former Bank of Geneva owned 1935 Chevrolet firetrucks for promotional purposes. “How likely is it that two banks would have the same make and model of a 1935 fire engine?” Briggs muses. “And they’re both in pristine condition.” With the merger completed, Briggs’ position in business development is logical, given his deep community involvement. He is treasurer of the Indiana State Museum, corporate secretary of Limberlost State Historic Site, a director of the Northeast Indiana Regional Development Authority, treasurer of Adams County Economic Development and treasurer of the Adams Public Library System. He also serves on the Indiana Board of Depositories, appointed by Gov. Eric J. Holcomb in 2017. Additionally, Briggs is past president of the Geneva Town Council and past treasurer of the Northeast Indiana Regional Partnership. He has served on the IBA board as first and second vice chairman and as northeast region director. A member of the IBA 40 Year Club, he is a graduate of Ball State University. He and his wife Rhonda, also employed at the bank, count travel among their pastimes. Hoosier Banker interviewed Andrew Briggs about his background and his plans as IBA chairman. How has your family legacy shaped you? “I grew up in a ‘you didn’t talk about anybody’ atmosphere, because everybody here is your customer. You can’t leave the bank and tell others what the customers
Hoosier Banker 11 told us. People trust that we will respect their privacy. “I grew up in this. We’d have Sunday dinner at my grandparent’s house, and nobody ever talked about a customer. This is why I’m so protective of people’s information.” How has banking changed through the years? “I keep a mortgage note in my drawer to remind me. It’s a note from when I first started in banking in the early ’70s, and it’s just a simple note – almost a handshake deal. “When my grandfather was here, instead of five Cs of credit, there was one C, and that was ‘character.’ My grandfather basically made all character loans. “We can’t do that anymore, and I understand the reasons, but it’s a sad commentary. It used to be that if someone gave you his word, you would get paid. “It also adds to the compliance issues of making sure the i’s are dotted and the t’s crossed. A technicality can invalidate a loan. “It goes back to the family. My grandmother used to talk about people and their integrity. My grandparents had integrity, and they wouldn’t deviate from that. That sort of formulated what I am today, because you never want to disappoint your grandparents.” PHOTO CAPTION: Andrew Briggs stands by a display of Indiana Bankers Association awards presented through the years to the Bank of Geneva.
12 JANUARY / FEBRUARY 2019 biggest change is the sign out front. “Lars Eller, the new CEO of Farmers & Merchants State Bank, speaks German, because his parents came from Germany. So we’re going to introduce him to the Amish community at a bishops dinner, and he’ll be able to speak with them in German. “Lars follows in the footsteps of Paul Siebenmorgen, who’s retired, but Paul is well-known in the Indiana banking community. He was originally with Lake City Bank. He told me that Joe Pierce, now retired from Farmers State Bank in LaGrange, gave him his first mortgage. “Culturally, both Farmers & Merchants and Bank of Geneva are very similar. We both used to close on Columbus Day for education, so this past Columbus Day, Bank of Geneva employees went to Farmers & Merchants for education. “The F&M staff are fantastic people, and they went out of their way to make us feel welcomed. It’s almost like this was meant to be.” Why did you choose to accept a leadership role with the Indiana Bankers Association? “One, it’s a great honor, and two, I think following Clay Ewing and his banking major initiative with the universities is tremendous. I also think that the Future Leadership Division is doing a great job reaching the next generation of bankers. “I’m really happy for the Lucas Whites and Mike Zahns who are coming up through the chairs and keeping our industry strong. These are good people – good at the IBA level, and also good for their banks and communities. Continued on page 14. A small, single-sheet mortgage note from the early 1970s is evidence of a simpler time in the financing of homes. What are some of the greatest challenges and rewards in banking today? “We’re partners with a lot of people, and I derive satisfaction from seeing what people can accomplish by working with us. When people come in, they want to hear yes. They want to know that we believe in their dreams. We’re sort of dream-fulfillment people. “I often say, though, that we have to walk a fine line between being too conservative and too liberal. If we’re too conservative in our lending and practices, we restrict growth. If we’re too liberal, then the growth is artificial and can’t sustain itself. We have to walk the path between the two, so that we experience good, solid growth. “To keep that up year after year can be a challenge. It’s a fine line, but we are a facilitator, and the rewards are great.” How does the merger of Farmers & Merchants State Bank and Bank of Geneva serve your customer base? “F&M has been looking at how they can continue our success. That’s why I’m staying on, and they’re keeping our customer contact people. The majority of our customers are relationship customers, and they’ll be dealing with the same people as before. The Farmers & Merchants State Bank and the former Bank of Geneva display their matching 1935 Chevrolet firetrucks at a parade.
Annual membership includes: • Compliance Coaching • Compliance Products and Policies • Automatic Updates to All Compliance Policies • Weekly Compliance Blog • Online Compliance Forum • Compliance Review/Consulting/Audit Fee Discounts • Regulatory Compliance Training Manuals • Optional Advertising Review Services For more information and pricing, contact Karen Clower at 1.800.525.9775 or kclower@younginc.com. HMDA Privacy Reg Z BSA Reg CC Virtual Compliance Consultant (VCC) Program 40 YEARS 1978 - 2018 Guiding Community Banks Along the Road of Regulatory Compliance Young & Associates, Inc. Consultants to the Financial Industry
14 JANUARY / FEBRUARY 2019 in a university in the state of Indiana. “Banking has been such a good life for me, and I see the same for other bankers. I would think more people would want to come into banking.” You’ve been quoted as saying, ‘All you’ve got is people.’ What does that mean? “That’s what it’s all about. Whether they’re employees or customers or friends, it’s all about people, so choose to treat them nicely. “Everybody has their little quirks, but I enjoy people, and you learn so much from them. If you just sit down and listen, they’ll tell you their story, they’ll tell you their problems, they’ll tell you their experiences. It’s all interesting to me. “I don’t remember names really well, but I remember people and faces. I’ve met some incredible people.” HB “At our bank, we have some young bankers who have just started with us, and they are stars. They have enthusiasm, and they’re quick learners. We’re lucky to have them. “Now with the merger, I’ve been getting phone calls from other bankers wanting to know if some of our people are being released, because they want to pick them up. That goes back to the value of networking through the IBA, and it shows that there’s a need for good bankers in the state of Indiana.” What is the value to you of the IBA? “I enjoy going to the IBA functions, because we can talk about things. We don’t give names, but we can talk about our like experiences in CEO roundtables, or at IBA functions. We can discuss what’s happened to us and ask, ‘How would you handle this?’ We can all learn from all these experiences. “Indiana bankers are probably one of the nicest bunch of people you can meet. Yes, we make mistakes, and we sometimes make a wrong decision. At the same time, look how strong Indiana is, and look how strong our banking system is, and look at the camaraderie. Everyone is approachable.” What are your goals as 2019 IBA chairman? “We need to carry on the banking major initiative with the schools, because there’s been good progress. I would love to see a banking track available to students, so that when they graduate, they’ve already got many of the needed skills. “They’ll be able to come right into a banking environment, whether it’s with a small bank or big bank. They won’t need much additional training, because they’ll already understand some basic concepts and regulations. “At the Annual Convention last fall, I was talking with several others about Clay’s initiative. They all agreed that it’s important and necessary for our industry to establish a banker’s program Rhonda and Andrew Briggs enjoy traveling and are shown dining in a steakhouse in Tampa, Florida. Andrew Briggs has fond childhood memories. In this undated photo, a young Andrew watches as his grandparents make sausage in their basement. Andrew Briggs is corporate secretary of Limberlost State Historic Site, dedicated to the legacy of Gene Stratton-Porter, 1900s naturalist and author. Stratton-Porter was married to Charles Porter, who co-founded the Bank of Geneva with several investors, including A.G. Briggs, Andrew’s great grandfather.
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16 JANUARY / FEBRUARY 2019 ARTICLE SPOTLIGHT
Hoosier Banker 17 Laurie A. Rees Vice President - Education & Training Indiana Bankers Association lrees@indianabankers.org @Laurie1107 After a blockbuster start in 2017, the Indiana Bankers Association continued the dream with its successful hosting of the 2018 Banking on Women Conference. The event, held Nov. 13-14 at the Indianapolis Marriott North, surpassed prior-year attendance, with some 360 women coming together for professional development, networking and inspiration. Attendees gathered mid-day on Tuesday, Nov. 13, for registration, then delved into an afternoon packed with powerhouse presentations. Karen F. Gregerson, chair of the conference planning committee and president/CEO of The Farmers Bank, Frankfort, joined with Amber R. Van Til, IBA president and CEO, in welcoming guests and offering opening remarks on the uplifting spirit of the Banking on Women Conference. Afternoon sessions began with a thought-provoking presentation by Juli Lynch, Ph.D., a perennial favorite from the 2017 conference and the IBA Leadership Development Program. In “The Tribe Has Spoken,” Juli deftly demonstrated how personality influences the need to survive, and she shared insights into how to use innate traits for personal and professional growth. Ensuing presentations covered leadership skills, business strategies, organizational culture and more, all while engaging the audience in participatory activity. Additionally, the 2018 Banking on Women Conference reprised the prior year’s touch of having decorated boxes with index cards, so attendees could write notes of appreciation for others in attendance. Periodically the notes were read aloud, adding a heartfelt quality to the conference. Tuesday rounded out with a lively reception featuring interactive food and beverage stations. Throughout the reception, attendees had the chance to visit with service providers in the IBA exhibit area, and also to bid on a treasure trove of items at a silent auction benefiting Girls on the Run, a nonprofit organization that provides learning opportunities for girls ages 8 to 13. After the reception, fellowship extended into the evening, as attendees sampled a variety of dine-arounds at local restaurants. Wednesday, Nov. 14, began bright and early with rise-andshine yoga. A continental breakfast in the exhibit area followed, after which commenced a full day of learning, networking, engaging, connecting and empowering. Presentations ranged from igniting brilliance to maximizing energy to reducing organizational defensiveness. Justine Fedek of BMO Financial Group presented the luncheon keynote, “How Does Fear Impact Your Ability to Succeed: Removing Invisible Barriers.” Justine led the audience through a problem-solving journey of facing fears, removing obstacles and choosing happiness. Wednesday’s luncheon also provided a new element to the conference: the inaugural IBA Woman of the Year Award. A total of 14 women were nominated by their peers for this award, designed to celebrate women in banking for their professional excellence, community engagement, and the ability to support other women to reach their full potential. The winner of the 2018 IBA Woman of the Year Award is Jessica Carroll, CEO of The New Washington State Bank, Charlestown. Congratulations to Jessica, and to all of the outstanding nominees who represent the finest in the Indiana banking community. 2018 IBA Banking on Women Conference The dream continues... Continued on next page.
18 JANUARY / FEBRUARY 2019 Thank You, Sponsors! The Baker Group BancMac/Community Banc Mortgage Corporation BKD, LLP Crowe LLP Faegre Baker Daniels LLP Federal Home Loan Bank of Indianapolis First Financial Bank, Columbus IBA Group Insurance Trust Independent Community Bankers of America Infotex The KeyState Companies Krieg DeVault LLP Lake City Bank, Warsaw SmithAmundsen LLC Young & Associates Inc. Another conference highlight was a presentation by Sonya Jones of NBC “Biggest Loser” fame, who lost 144 pounds through her determination to make a positive change. She inspired attendees to look within to be their own agents of change in her moving presentation, “Why Not You?” At the end of the day, Juli Lynch again engaged with the audience in an interactive closing ceremony. She highlighted the conference theme of “Imagine, Believe, Achieve” to leave the attendees energized and eager to go back to their workplaces and pursue their dreams as proud women in banking. Thank you to the planners, attendees, speakers and sponsors who made the IBA Banking on Women Conference a success. Also thank you to all who participated in the silent auction for Girls on the Run; a total of $4,223 was raised for this girl-empowering cause. ARTICLE SPOTLIGHT Not Even Our Second. We’ve got 40 years under our advertising belt and that’s no accident. We stay in the saddle by putting our clients first. We listen. We flex. And we deliver results time and time again. Nope, our 40 years in business isn’t an accident. It’s proof we’ve been doing something right. Giddyup. Bank Marketing Solutions For Retail, Small Business, Commercial, Trust and more... dearing-group.com The IBA looks forward to presenting its third annual Banking on Women later this year. Please be on the lookout for details about the 2019 conference, scheduled to take place in mid-November. HB Jessica Carroll, CEO of The New Washington State Bank, Charlestown, has been named the Indiana Bankers Association Woman of the Year for 2018. Within her bank, she co-developed the woman-only Emerging Leaders Program, and she champions for women in the community through the Professional Women’s Network and the Power of the Purse support system. A member of the IBA Future Leadership Division advisory board, Carroll is active with Clark County Purdue Extension, The Center for Women and Families Southern Indiana partnership council, and the New Washington High School Alumni scholarship committee, plus she and her family manage a 100-acre farm. Carroll is a graduate of Hanover College and the Stonier Graduate School of Banking. HB IBA Woman of the Year 2018
Hoosier Banker 19 IMAGINE. BELIEVE. ACHIEVE.
2018FLD LEADERSHIP CONFERENCE FLD FOCUS Building on FLD momentum
Hoosier Banker 21 This fall one of Indianapolis’ trendiest hotels, The Alexander, played host to the Indiana Bankers Association’s 2018 FLD Leadership Conference, the annual signature event for the IBA Future Leadership Division. With nearly 80 emerging leaders from Indiana’s banking industry in attendance Oct. 15-16, the conference continued to build on the momentum and energy that the FLD experienced over the last year. Kirby Drey of Kentland Bank, president of the FLD advisory board, kicked off the event with welcoming remarks and an introduction of opening keynote speaker Jackson Hataway of Strategic Arts and Sciences. Hataway, an instructor in the prestigious IBA Leadership Development Program, hit the ground running with an engaging presentation on banking in a new era of engagement – specifically how targeted innovation driven by strategic value can help bankers perform better than ever in the future. Following the presentation, former graduates of the IBA Leadership Development Program shared their experiences about how the program has impacted their professional and personal lives, while encouraging attendees to consider attending the 2019 session. Then, a networking lunch was held to allow attendees to build and create relationships with their peers. After lunch, Starla West of Starla West International provided an in-depth look at how bankers’ professional style and delivery projects credibility, offering several areas to consider including appearance, nonverbal communication and more. Tisha Gierhart of Shafer Leadership Academy followed. Gierhart discussed the importance of emotional bank accounts, explaining how every interaction with a human being may be classified as a deposit or withdrawal, which directly impacts the level of trust in a relationship. After the afternoon sessions, attendees then had the opportunity to break out into smaller roundtable groups to network and talk about issues relevant to their careers. Discussion group topics included commercial lending, compliance, marketing, retail delivery and more. The first day concluded with a night of casual networking and fun. Starting off with a reception to mix and mingle, bankers shared conversation and laughter before enjoying a delicious dinner in anticipation of a competitive game of trivia. Bankers were randomly assigned to teams, and then tested their knowledge in categories including strange history, superheroes, blockbuster movies and even Christmas songs. Congratulations to the winning teams! The FLD Leadership Conference continued the next day with breakfast before receiving an insightful discussion of Indiana’s banking environment from Chris Dietz of the Indiana Department of Financial Institutions. Dietz shared analysis of the latest trends and issues found in Indiana banking. Emily Boardman of Crossroads Bank, Wabash, a member of the FLD advisory board, followed with a short promotion of FLD membership and its benefits, as well as a video on the Graduate School of Banking at the University of Wisconsin. Next, the conference featured Leslie Fiorenzo of Employee Assistance Center, who conducted an eye-opening presentation on the age of constant contact. Fiorenzo shared how smartphones and technology have improved our ability to communicate and be productive, but also how we should be cautious to avoid pitfalls associated with technology. The closing keynote speaker was Brian Townley, who spoke on reaching beyond boundaries to help identify what might be holding back bankers and their banks from being more fearless and taking chances that could result in personal and professional success. The FLD Leadership Conference closed out with an Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indianabankers.org @joshmyersIN
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