Hoosier Banker 39 • Do you need to change your strategy to protect against potential rate changes? You’ll soon realize the data you’ve sorted and analyzed offers insights that go far beyond credit loss. Data generated for CECL can be used in conjunction with budgeting and planning for more strategic risk management. It illuminates a broad range of information required to measure credit losses, including reasonable and supportable forecasts regarding expected collections of loan principles and payments. By analyzing all available data, including information about past events, current conditions and reasonable and supportable forecasts, the solution calculates more accurate loss rates so that you can minimize ALLL reserve requirements. Additional data also helps generate more accurate budget projections. With those analyses in mind, your organization can build a strategy to become more competitive and profitable. With that level of credit data, your organization can further extend a riskadjusted return on capital to include all of the credit elements that have previously been out of reach for quantitative analysis. That can affect decisions on the prices you’ll set or the products you’ll offer. Using data to drive strategic decisions can lead to lower overall risk and better managed return for every stakeholder, including borrowers. That’s a remarkable place for your financial institution to be. Achieving True Strategic Risk Management Because credit risk has significant enterprise-wide implications for an organization, it’s one of the most significant types of risk a financial institution takes – perhaps bigger than reputational, compliance, regulatory or market risks. To mitigate that risk, invest in people, processes and technology that will move your organization from the low end of the risk management curve – where compliance doesn’t drive value – to true strategic risk management. It is to your benefit to implement CECL processes now to help your organization go well beyond compliance to yield business-boosting results. HB Bob Jones, chairman and CEO of Old National Bancorp, Evansville, has announced plans to retire as CEO effective May 2. He is to remain chairman of the board through January 2020. Jones has been serving as CEO since 2004, prior to which he served for 25 years at KeyCorp in northern Ohio. He serves on numerous boards, including Vectren, the University of Evansville, the Evansville Regional Business Committee Inc. (current chair), SW Indiana Business Leaders Roundtable for Early Childhood Development, Riley Children’s Foundation, Central Indiana Corporate Partnership, the American Bankers Association American Bankers Council Chair, International City/County Management AssociationRetirement Corporation (ICMA-RC), the American Bankers Council and the Mid-Size Bank Coalition’s executive committee. A Sagamore of the Wabash and a Distinguished Hoosier, Jones has been inducted into the Evansville Regional Business Hall of Fame and the Evansville Vanderburgh School Corporation Hall of Fame. Morris “Morrie” Maurer has retired as president and CEO of The National Bank of Indianapolis and The National Bank of Indianapolis Corporation after 25 years. He continues to be involved with the bank and corporation as a member of the board of directors and consultant. Maurer has 44 years of experience in the banking and financial services industry. From 1975 to 1992 he worked at Indiana National Bank, where he held positions that included strategic planning and service as chief financial officer and senior vice president. In 1993, he became a founder of The National Bank of Indianapolis, serving as director, president and CEO. In the community Maurer has been active with numerous civic and corporate boards, including the Indy Chamber, Indianapolis Symphony Orchestra, Indiana Landmarks, Newfields, the Booth Tarkington Civic Theatre and the Indiana Board for Public Depositories. He is a member of the Indiana Bankers Association 40 Year Club. Darrell Jaggers, senior partner with Centier Bank, Merrillville, has retired after nearly 45 years in banking. He joined Centier Bank in 2008 after prior service with Tower Bank, Fort Wayne. Jaggers has served various community organizations, including the Allen County United Way Board, Allen County/Fort Wayne Historical Society Board, Vincent House Board, Project Renew, Allen County Economic Development Forum, Forum for the Review of Local Government, Leadership Fort Wayne, and the College of Business Advisory Board at Purdue University Northwest. He is a member of the Indiana Bankers Association 40 Year Club and a 30-year veteran of the U.S. Army. James Walstra, chairman of the board of DeMotte State Bank, has retired after 28 years of board service. Daniel J. Ryan, executive vice president and loan administrator at DeMotte State Bank, has retired after 35 years of service. He serves the community as a district governor of Rotary International. HB TAKING IT EASY
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