HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! 2019 IBA Mega Conference JULY / AUGUST 2019
The Indiana Bankers Association is honoring six members of the Indiana banking community with its second annual IBA Leaders in Banking Excellence awards, to be presented at a special ceremony in August at the IBA offices in Indianapolis. This award celebrates exceptional Indiana bankers whose leadership has positively impacted banks and the communities they serve. Details about the awards ceremony are forthcoming in the September/October Hoosier Banker. At the awards event, Indiana dignitaries from private and public sectors will be making presentations, and honorees will be invited to offer comments. The event will culminate with the viewing of the updated IBA Leaders in Banking Excellence wall, with individual plaques showcasing each honoree. The wall plaques are to remain on permanent display at the IBA offices, and each honoree will be given a separate plaque as a keepsake. The 2019 Leaders in Banking Excellence represent a range of current and retired bankers. One honoree is deceased, to be represented at the ceremony by close family members. All honorees were nominated by IBA-member banks and approved by the IBA board of directors. IBA Honors 2019 Class of Leaders in Banking Excellence Congratulations to the 2019 class of IBA Leaders in Banking Excellence For more information about the awards, please contact Rod Lasley at 317-387-9380, rlasley@indianabankers.org. James G. Hiatt First State Bank of Middlebury David M. Findlay Lake City Bank Warsaw Merle J. Kendall Spencer County Bank Santa Claus Robert C. Nelson (deceased) Indiana Bankers Association Morris L. “Morrie” Maurer The National Bank of Indianapolis Kip White The Fountain Trust Company Covington
4 JULY / AUGUST 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 Executive & 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 Administrative Assistant ......................................................................................................Wendy Colin
Hoosier Banker 5 CONTENTS Vol. 103 No. 4 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 @indianabankers Publisher: Amber R. Van Til Editor: Laura Wilson Advertising: Rod Lasley Submit materials to: HB@indianabankers.org Copy deadline: First of the month preceding publication. View editorial guidelines/calendar at: indianabankers.org/sites/default/files/ HB_Edit_Guidelines.pdf 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 12 Join the IBA’s C2C Campaign Emily Brooks, IBA ARTICLE SPOTLIGHT 18 2019 IBA Mega Conference Christina M. Bennett, IBA FEATURES 6 IBA Member Benefits Report 2018 8 Vantage Viewpoint Amber R. Van Til, IBA 9 Chairman’s Report Andrew J. Briggs, Farmers & Merchants State Bank 10 Board Review John M. Kennedy, Greenfield Banking Company 11 IBA Calendar of Events 22 Banking Concentration Created in Indiana 24 New IBA Officer Candidates 2020 34 The Farm Bill Made CBD Legal Lori Jean, Krieg DeVault LLP 38 Credit Union Shopping Spree Rebeca Romero Rainey, ICBA 40 Diversifying Our Most Important Asset Robert S. Nichols, ABA FLD FOCUS 26 FLD 101: What It Is Josh Myers, IBA PRODUCTS & SERVICES PROFILE 28 Student Loan Debt Relief Rod Lasley, IBA PSP SHOWCASE 30 Forty Remarkable Years, and Just Getting Started Jeffrey F. Caughron, The Baker Group GR SUMMIT 32 General Assembly 2019 Conclusion Dax Denton and Eric J. Augustus, IBA AG BANKING 42 Current State of Agricultural Lending Brady Brewer, Purdue University 44 The Soybean ‘War’ Against China Dinese Watson, Merchants Bank of Indiana HUMAN RESOURCES 46 Pay Equity Debra A. Mastrian, SmithAmundsen LLC OPERATIONS / TECHNOLOGY 48 Customer Acquisition Laura Ryan, CSI SECURITY / FRAUD 52 Ensure Security Ben Hayden, SHAZAM Inc. COMPLIANCE CONNECTION 54 Permissible Late Charges Brett J. Ashton, Krieg DeVault LLP SALES / MARKETING 56 Relationship Cultures and Customer Care Tom Hershberger, Cross Financial INDIANA BANK & THRIFT STOCK UPDATE 59 Stock Analysis Review Michael A. Renninger, Renninger & Associates LLC DEPARTMENTS 14 From the Board Room 16 Video Bonus 17 Honorable Mentions 27 IBA ‘High Five’ 39 Anniversary Milestones 45 In Memory of 45 Banking Center News 50 Taking It Easy 58 Banking on Community 60 Associate Members’ Corner 62 Bankers on the Move 66 Advertisers Index IBA’s C2C Campaign Tells the Story of Banking
BANK MEMBERSHIP IBA 750 s 62 s 415 s 1251 s 360 s 174 s Live Event Attendees s Roundtable / Forum s Mega Conference s CEO Peer Group s Banking on Women Conference s Annual Convention s Economic Outlook Forum Number of seminars, webinars, schools, conferences and forums 700+ Total banker attendees at live events 5600+ 124 Bank members 100% Indiana-based banks 2,013 Branches/offices 29,346 Hoosiers employed BANK MEMBERSHIP PRODUCTS & SERVICES 22 13 180 Associate Members Preferred Service Providers Diamond Associate Members 90% Associate Member Retention $0 $50M $100M $150M $200M $250M $300M BANKPAC Dollars Raised $294,000 Dollars Distributed $285,000 GOVERNMENT RELATIONS Member Bank Participation 78% Individual Donors 1700+ Candidates Supported 146 Contributor Banks FAIR SHARE 80 Bills Monitored 900+ 67 2018 IBA Annual Washington D.C. Trip Attendees Banks Participating in Grassroots 100+ Grassroots messages sent to legislators 1000+ EDUCATION & TRAINING Indiana Bankers Association Members Benefits Report 2018 6 JULY / AUGUST 2019
Newspaper Publishing of IBA Op-Eds 11 News Releases 10 Op-Eds & Talking Points 10 750+ Likes 1400+ Followers 2000+ Followers Bank Applicants 9 Student Applicants 30 3 Member Awards Initiated COMMUNICATIONS s Leaders in Banking Excellence s Woman of the Year s Commitment to Community Award 4 Primary IBA Publications Hoosier Banker IBA E-News Directory of Financial Institutions IBA Insighter Video Program Established Videos Added 5 Google Groups Member e-platform for idea-sharing 17 NEXT-GEN BANKERS Future Leadership Division Members 300+ Communication Platforms 4 s FLD Focus s Google Groups s Facebook s LinkedIn Lunch Series Leadership Conference Mega Networking Reception Day at the Statehouse Banking Major 10Universities Contacted IN Banking Internship Program 0 20 40 60 80 100 60 s 90 s 100 s 50 s FLD ATTENDEES This report summarizes IBA accomplishments made during 2018. Information shown reflects year 2018 only; progress made in 2019 is to be provided in a new report available next year. Progress reflected in the statistics below coincides with IBA’s 2018-2020 strategic plan which addresses five pillars: Tell the Story, Fiscal Strength, Education, Government Relations and Next-Gen Bankers. The staff of the IBA express thanks to current and past IBA board members for their guidance in shaping the strategic plan. Hoosier Banker 7
8 JULY / AUGUST 2019 Instead, nearly two-thirds of our costs go directly to the members we serve by providing quality education, training and events, plus government relations support of legislative issues. Your IBA staff takes care in stewarding expenses to ensure appropriate use of funds. When you review the infographic summary of IBA accomplishments in 2018, please keep in mind that the information reflects year 2018 only. In the meantime, your IBA team has been working at a fast clip through the first half of 2019, adding yet more value to your membership. For example, Chairman Briggs shares some very good news on the facing page about the establishment of a college-level banking concentration in Indiana. Highlights covered in the member benefits report include the successes of our advocacy team, the breadth of education/ events offerings, relationships with products/services providers, our communications outreach, and the forward focus of nextgen initiatives. Details not shown are how many pieces of harmful legislation are prevented through effective advocacy, banker knowledge gained by attending IBA events, banker efficiencies made possible by using IBA-vetted products/services, the “telling of the story” of banking through IBA communications, and the future of the industry made brighter by addressing next-gen initiatives. Finally, there is one statistic not mentioned in the report, but it is written in our hearts: 100%. Your IBA staff is committed 100% to you, our members. Thank you for the honor of serving you, and for the generous support that you provide to the IBA. HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT FLD Leadership Conference Aug. 27-28 Emerging bank leaders come together for inspiration, networking and leadership-building. Annual Convention Sept. 15-17 Indiana bank leaders convene, connect and conduct IBA business in scenic French Lick. Bank Security Conference: Cybersecurity/Fraud/Physical Oct. 1-2 Diverse departments collaborate at this inaugural event to develop maximum security effectiveness. Don’t Miss Out! At this midway point in 2019, it’s my pleasure to present our first Indiana Bankers Association member benefits report, as shown on the preceding two pages. The purpose is to summarize IBA accomplishments during 2018. First, though, a word of thanks. The progress reflected in this report was made possible by the well-crafted 2018-2020 strategic plan shaped by current and past IBA board members. IBA leaders guided IBA staff in creating an ambitious plan that addresses five pillars: Tell the Story, Fiscal Strength, Education, Government Relations and Next-Gen Bankers. All of the accomplishments shown in the member benefits report point to at least one of these pillars. Also, please note the two pie charts on this page, showing percentages of IBA income and expenses. I am proud to report that less than one-fourth of IBA income comes from member dues. Your IBA team works hard to bring in a steady stream of non-dues revenue in order to keep our dues among the lowest of the state bankers associations nationwide. I also am proud of how we manage expenses. Less than a quarter of what we spend is allocated to administration, overhead and staff. 40% Education, Training & Events 23% Management / General 22% Government Relations 9% Products / Services IBA EXPENSES 24% Membership Dues 32% Education Registration & Products 16% Meetings / Conferences 16% Royalty Income 7%PAC Contributions 3% Advertising Income 2% Other Income IBA INCOME
Hoosier Banker 9 Much work took place behind the scenes from IBA members/staff plus the academic community to realize this achievement. It generally takes much longer to initiate a college-level concentration, but with determination this goal was met quickly. We all know how good it feels when our banks contribute to our communities. This feeling is now statewide, as the full Indiana banking community is helping to make a difference in bringing the best and brightest of talent to the world of banking. Yes, I believe banking should be simple. There is so much that community banks do to support shareholders, depositors and employees. Now, with the establishment of a banking concentration in Indiana, our group efforts are going further to support the future of the industry. Thank you to Clay Ewing, my predecessor as IBA chairman, for his vision in helping to make this banking concentration possible. And thank you to the members of the IBA, who have helped to bring this vision into view. HB NOTABLE QUOTES Bank Community Service on Twitter First Financial Bank • @BankAtFirst • June 4 In #Indiana alone, 1 million people - including 1 in 5 kids - don’t know where they’ll get their next meal. Our Indy team recently spent the day with @MMealMovement packing meals for fellow #Hoosiers in need & organizing the warehouse. #givefirst #bankatfirst #fighthunger Farmers & Merchants State Bank • @FMStBank • June 3 On Friday we went “Casual for a Cause!” For a small donation to a local charity, F&M employees could wear jeans. We are happy to say that we raised $1220.00 for the Ronald McDonald House Charities (RMHC)! #ronaldmcdonaldhouse #casualforacause 1st Source Bank • @1stSourceBank • May 21 Another great Women Build in the books. Thank you to our team members who gave their time and muscle this weekend, and thank you Habitat for Humanity for your impact on our community! Citizens State Bank • @CSB_Indiana • May 14 We’ve partnered with Orangetheory Fitness Fishers - Nickel Plate to support @augiesquest in the quest to find treatments and cures for #ALS. To learn how you can help, stop by Orangetheory or our Fishers location. West End Bank • @WestEndBank • May 3 We’re having a bake sale! In order to raise funds for the @AmericanCancer and @RelayForLife, West End employees are selling paint themed treats for this year’s Relay For Life: Colors of Hope! Follow IBA Twitter @indianabankers Twitter Andrew J. Briggs Chairman Indiana Bankers Association First Senior Vice President for Business Development Farmers & Merchants State Bank, Archbold, Ohio CHAIRMAN’S REPORT Building Better Bankers” was the theme of this year’s Indiana Bankers Association Mega Conference, as detailed in this issue. Mega 2019 marked another successful event for the Association, bringing in around 1,250 attendees. Indiana bankers come together to many IBA educational events year-round in order to become better bankers. In addition to professional development, though, the next question is, how do you build a better bank? Each bank is unique, so there is no single answer to how to build a better bank, but I’ve long been a believer that banking should be simple. The fundamental formula is: Take in deposits for a reasonable amount of interest return to the customer; at the same time, lend out those funds at a reasonable rate to your customers. All the while, you “live in the middle of it,” keeping expenses low, so you can earn a solid return. It’s even simpler if you know your bank, your people and your customers. That might mean becoming a niche bank to serve a niche within your community. It’s important to identify what each bank does best. Banking is a sort of a circulatory system for the economy. We have to be careful because if we are too restrictive in the flow of capital, we inhibit growth. If we are too lax, we experience false growth that is unsustainable. This banking/circulatory system needs nurturing and constant monitoring. We all walk this fine line between being overly aggressive in lending and under aggressive in lending. Throughout my years in banking, I’ve learned a lot, to a large extent through the IBA. I particularly appreciate the time I’ve spent at the CEO roundtables that the IBA hosts. There are so many good ideas at those roundtables gleaned from bankers around the state. It’s a chance to learn what others are doing in their shops, so that we can all build better banks. We’re in the business of making people’s dreams come true. Sometimes those dreams aren’t realistic, and then we have to say no … but we prefer to say yes. We want people to realize their dreams. There’s a sense of pride in seeing customers flourish, because we’re partners of sorts with the people we serve. If they fail, we feel like we fail a little bit with them. If they succeed, we know we helped along the way. In the end, building a better bank means rising to the responsibility of being good stewards. As bankers, we get to be community leaders and facilitators, helping to build not only a better bank, but a better community. That’s why banking is one of the most rewarding careers anyone can pursue. In light of banks’ building better communities, please be sure to turn to page 22 to read about IBA’s success with helping to create a first in Indiana: the establishment of a banking concentration at Purdue University Northwest. Recently the IBA and member banks presented a check for $135,000 to PNW in support of this initiative.
10 JULY / AUGUST 2019 One of the keys to being an effective bank leader is to determine how the institution should look five years down the road. In my role as president and chairman of Greenfield Banking Company and Greenfield Bancshares, I imagine many different paths. The challenge is choosing the best one under a changing banking environment that is clearly not your father’s bank anymore. I joined GBC in 2005 as vice president and trust officer and became president and CEO in 2012, then chairman in 2018. My educational background includes a bachelor’s degree from Purdue University, an MBA from Rutgers University and certification as a chartered financial analyst. Before I came to GBC, I worked with the Federal Home Loan Bank of Indianapolis, NBD Trust and Investments, and JPMorgan Chase Bank. I value the lessons learned through those experiences, but I’ll always credit the U.S. Navy with providing me with the most memorable training. My life as an adult began in the Navy, not financial services. I served as a naval officer for four years, which nearly satisfied a youngster’s dream of driving ships to far-off and exotic places. By the way, “far-off” most definitely resulted, “exotic” not as much. Then when I came home, I followed in the footsteps of many in my family and focused on banking, with one minor twist. As I wasn’t quite ready to hang up the uniform, I continued with the Navy as a reservist, eventually retiring after 30 years as a captain. Between those two professions, and from time to time receiving orders to “exotic” naval assignments around the world, I learned some invaluable lessons. First, I learned that there is no such thing as being overworked. In the military, accomplishing the mission is wrapped around the concept of preparation and hard-core motivation. You learn that concept in basic training and just assume that this is the way life will always be. And almost as important, I learned of the importance of leadership. Yearly “fitness reports” evaluated several traits, and although your skills in your professional assignment were measured, leadership was by far the most important – and this prominence, up and down the ranks, was paramount from day one of your service. In addition to leadership results, something the military and the banking industry have in common is that both are service-oriented; that is, committed to causes beyond the self. Military personnel are in service to our nation, and community bankers serve their communities. From the standpoint of our community, Greenfield Banking Company is heavily engaged through a number of outreaches. One such example is our annual Entertainment on the Plaza. Each summer we provide eight free outdoor concerts. Our involvement goes beyond writing a check – we book the bands and do all of the event coordinating. Additionally, and much like other banks, our bank provides board and committee help for area organizations and charities. Our officers balance community involvement and banking responsibilities by working outside normal hours to make good things happen. GBC also provides substantial annual gifting to local organizations. Some of my current personal outreach includes the Hancock County Economic Development Council, United Way Central Indiana and the U.S. Naval Academy Admissions department, for which I serve as a Blue Gold Officer. From the standpoint of my family, my wife, Cris, also does her part in the community. Along with serving as co-trustee for a sizeable family trust (not our family) that provides annual funding to schools in the Archdiocese of Indianapolis, she uses her gift of languages and teaching to make enormous differences in kids’ lives in the Indianapolis Public School system. Likewise she has made a big difference in our home. Because I was either working long hours at the bank, or gone two or three weeks or more in “exotic” places as a reservist, Cris handled the fort. And handled it well. Our oldest son, John, is a third-year med student at Marian University and is an ensign in the Naval Reserve Medical Corps on the Navy’s physician scholarship program. He recently married a nurse, Mary Kathryn, who helps him maintain his sanity. Our second son, Michael, is also an ensign but proudly notes, “Regular Navy,” as he graduated from the U.S. Naval Academy and is now attending flight school in Pensacola, which makes mom very nervous. Our daughter, Jacqueline, is a junior at Purdue University, learning as much as possible in the biomedical engineering program. She rounds out the plan: We figure we will have a pilot-son to fly us to our physician-son, who can implant medical devices designed by our engineer-daughter. It’s fun to keep track of our kids. It’s also fun, and rewarding, to be part of the banking community, helping people to reach their life’s goals. HB John M. Kennedy Southeast Region Director Indiana Bankers Association President and CEO Greenfield Banking Company BOARD REVIEW Annual Convention Return to the grandeur of the French Lick Resort for a convention theme of “Fresh Perspectives.” Join with senior bank management from throughout Indiana for a chance to convene, connect and gain new insights. Click on the icon at left in HB Digital for more information, or go to: indianabankers.org/convention. French Lick SEPT. 1517
Hoosier Banker 11 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 July Regional Meetings July 9 • Biaggi’s Ristorante Italiano • Fort Wayne July 10 • The Columbia Club • Indianapolis July 18 • Cooper’s Hawk Restaurant • Merrillville July 29 • The Exchange • New Albany July 31 • Upland Brewing Co. • Bloomington Auditing TRID July 9-10 • IBA Center CRE Cash Flow July 10 • IBA Center CRE Appraisals July 11 • IBA Center Human Resource Director Forum July 11 • IBA Center Cash Management July 16 • IBA Center Workshop for Loan Assistants and Loan Processors July 23 • IBA Center Loan Review for Community Banks July 24 • IBA Center Stepping Up to Supervisor July 30 • IBA Center Training the Credit Analyst Aug. 1-2 • IBA Center Community Bankers for Compliance - Session 3 Aug. 6 • IBA Center Aug. 7 • IBA Center Aug. 8 • The Landmark Centre • Fort Wayne Bank Directors Workshop Aug. 12 • The Landmark Centre • Fort Wayne Aug. 13 • IBA Center Aug. 14 • Sheraton Louisville Riverside Hotel • Jeffersonville The IT Role for Bank Management Aug. 15 • IBA Center Branch Management Series: Session 3, Growing the Retail Branch Aug. 20 • IBA Center Advanced Branch Management Aug. 21 • IBA Center Compliance for Loan Processors Aug. 21 • IBA Center Essentials of Banking: Session 3 - Lending, Bank Investments and Bank Performance Aug. 22 • IBA Center Flood Insurance Update Aug. 22 • IBA Center FLD Leadership Conference Aug. 27-28 • Hyatt Regency Indianapolis Advanced Agricultural Credit Conference Sept. 4-5 • Lafayette Call Report Sept. 4-5 • IBA Center Advertising Compliance Bootcamp Sept. 10 • IBA Center Senior Retail Banking Officer Forum Sept. 11 • IBA Center Advanced Credit Analyst School Sept. 11-12 • IBA Center BSA Officer Forum Sept. 12 • IBA Center Annual Convention Sept. 15-17 • French Lick Resort Mortgage Lending School Sept. 18-20 • IBA Center CBC Compliance School - Lending School Sept. 24-26 • IBA Center Sales Seminar Sept. 24 • IBA Center ACH Processing and Compliance Sept. 26 • IBA Center Bank Security Conference: Cybersecurity/Fraud/Physical Oct. 1-2 • IBA Center Banking Essentials Session 4 Oct. 3 • IBA Center Indiana Deposit Documentation Oct. 3 • IBA Center Risk Management Officer Forum Oct. 8 • IBA Center Lenders Comprehensive Guide to Mortgage Lending Oct. 8-9 • IBA Center Senior Lender Forum Oct. 9 • IBA Center • Group 1 Oct. 10 • IBA Center • Group 2 Business Development Oct. 10 • IBA Center CFO Forum Oct. 17 • IBA Center • Group 1 Oct. 18 • IBA Center • Group 2 Annual Washington Trip Oct. 20-22 • Washington, DC Marketing Director Forum Oct. 22 • IBA Center BSA Bootcamp Oct. 22-23 • IBA Center IT & Operations Officer Forum Oct. 23 • IBA Center • Group 1 Oct. 24 • IBA Center • Group 2 IRA School Oct. 29-30 • IBA Center Community Bankers for Compliance - Session 4 Nov. 5 • IBA Center Nov. 6 • IBA Center Nov. 7 • The Landmark Centre • Fort Wayne Human Resource Director Forum Nov. 7 • IBA Center Fundamentals of Commercial Lending Nov. 7-8 • IBA Center Branch Management Series: Raising the Bar for Sustainable Growth Nov. 19 • IBA Center Banking on Women Conference Nov. 20-21 • Indianapolis Marriott North Hotel Midwest Agricultural Banking School Dec. 2-5 • Purdue University • West Lafayette CBC Compliance School - Deposit/Operations Compliance School Dec. 3-4 • IBA Center Ag Clinic Dec. 5 • Purdue University • West Lafayette Indiana Economic Outlook Forum Dec. 6 • Indianapolis Marriott East HMDA Update Dec. 10 • IBA Center Internal Bank Audit School Dec. 10-11 • IBA Center
12 JULY / AUGUST 2019 COVER STORY Join the IBA’S C2C Campaign Showcasing banks’ commitment to community One of the five pillars of the Indiana Bankers Association’s 2018-2020 strategic plan is “Tell the Story,” the goal of which is to share the good news of banks, particularly news about community service. As the plan states: “Indiana banks play an integral role in the wellbeing of the communities they serve.” To underscore the IBA’s support of our members and their community service, we’ve implemented the Commitment to Community (C2C) Campaign. The overall purpose of this campaign is to draw attention to banks’ community service through IBA channels and publications such as social media, Hoosier Banker and IBA E-News. The C2C campaign puts a particular emphasis on creating and publicizing videos about bank community service. In comparison to text and photos, videos provide a special, firsthand look into banks’ community service. The IBA’s recent video showcasing Wayne Bank and Trust Company, Cambridge City, and its donation of four drones to the Richmond Fire Department is a great example of this concept. Simply hearing about the drone donation, or perhaps seeing a photo of the drone, doesn’t quite communicate as much information about the donation and its importance versus a video featuring real drone footage. The video features footage from an actual building fire in Richmond, and most importantly shows the viewer exactly how the drones benefit the fire department. To view this video and others, click on the C2C screenshots on page 16 in HB Digital, or visit: indianabankers.org/commitment-community. Videos featured in the C2C campaign can be found on the IBA website and on IBA YouTube and Vimeo channels, in addition to being shared on social media platforms such as Facebook, Twitter and LinkedIn. The IBA also regularly shares social media posts by member banks demonstrating community service in an effort to continuously acknowledge the good work of our member banks and bankers. See page 9 for sample bank community service tweets. C2C Awards To complement the C2C campaign, the IBA felt it was time to recognize all the work our member banks are doing in their communities on a larger scale by introducing the Commitment to Community Award at this year’s Mega Conference. Taking home the inaugural prize was The Farmers Bank, Frankfort, which was recognized for its “Reading Champions” program. This award-winning program is an ongoing partnership with a Frankfort-area school to help third-grade students improve their reading proficiency. The partnership was formed six years ago when bank personnel contacted the school to ask how the bank could be supportive. Emily Brooks Member Engagement Specialist Indiana Bankers Association ebrooks@indianabankers.org
Hoosier Banker 13 “Indiana has a state test at third grade every year,” said Lesley Miller, director of literacy for Community Schools of Frankfort. “We know that it is critical that third graders are on track in their reading by third grade, because otherwise that slump begins of, ‘I’m not a reader. I don’t feel confident as a reader,’ and so they start to just move away from it.” The result was the creation of the “Reading Champions” program, matching bank volunteers with third graders in need of reading skills improvement. Every week, bankers visit the school to work one-onone with Reading Champion students. “At the beginning of the year, we’re paired up with a student that is in third grade, and we don’t know them, typically, when they come into the classroom,” said Stephanie Buntin, comptroller at The Farmers Bank. “Normally, what we find by Christmastime is we’ve started developing that relationship where we talk to them, we find out, ‘What do you do at home, what’s your family like, what kind of things do you like to do?’ And it becomes a partnership, versus a teacher-andstudent type relationship.” The program has been so successful that last year 100% of Reading Champion students passed critical reading assessments, allowing them to continue to the fourth grade. Approximately 25% of bank staff participate in this outreach effort. “We know that reading changes lives, and student success is important to our community so that we can be a vibrant community … these students that our employees are reading to today may become the future employees of The Farmers Bank,” said Karen Gregerson, PHOTO CAPTION: Andrew Briggs, IBA chairman, presents the 2018 C2C Award to The Farmers Bank, Frankfort at the 2019 Mega Conference. Displaying the award are Stephanie Buntin (center), comptroller of The Farmers Bank, and Karen Gregerson, bank president and CEO.
14 JULY / AUGUST 2019 president and CEO of The Farmers Bank. See page 16 for a video link. Overall the IBA received 11 nominations for the year 2018 Commitment to Community Award and looks forward to expanding the award in the future. For the year 2019 award, to be presented at the Mega Conference in 2020, there will be two asset size divisions ($500 million and larger, and below $500 million) with one winner in each division, allowing the IBA to honor two banks with this award. In addition, the nomination process will be streamlined to simplify it as much as possible. The nomination will be more project-driven versus the numbers-based approach utilized for the year 2018 award. C2C Videos The IBA doesn’t want to stop at recognizing one bank for community service, however – we want to hear about every member’s story and share how your bank is impacting its community. One opportunity to share your story is through the Commitment to Community video campaign. This campaign is meant to showcase bank service projects using videos to be featured in IBA social media, the IBA website, Hoosier Banker and IBA E-News. These videos can be produced by your bank and submitted to the IBA, or the IBA can provide complimentary filming and editing. Additionally, your bank is able to use any IBA-created video for your own promotion. If you have an upcoming service project that you’re particularly excited about, please consider having it featured in the Commitment to Community video campaign. If you’re interested in submitting a video or having the IBA create one at no charge, please contact Laura Wilson at lwilson@ indianabankers.org, 317-333-7146. HB Jerry D. Petro has been elected chairman of the boards of directors of Third Century Bancorp and Mutual Savings Bank, Franklin. He joined the bank board in 1997 and the holding company board in 2004. Robert D. Schafstall, past chairman, remains a director on both boards until May 2020. Prior to retirement, Petro owned commercial real estate for light industrial use, bottled water distribution businesses and commercial coatings businesses. He earned an undergraduate degree from Franklin College and a master’s degree from Indiana University. Paul G. Allemeier, member of the board of directors of Mid-Southern Bancorp Inc. and of Mid-Southern Savings Bank, FSB, Salem, has retired from board service. He served the bank as president and CEO from 1987 to 1999, as chairman of the board from 1987 to 2013, and as a director from 2013 to 2019. Allemeier began his banking career in 1959 as a management trainee with Central Savings & Loan in Columbus, Ohio. He later served as an examiner for the State of Ohio; as vice president-treasurer with the Federal Home Loan Bank of Indianapolis; and as vice president of finance at Valley Federal Savings, Terre Haute. Additionally, he was a member of the Salem Lions Club, a past board member of the Washington County Economic Growth Partnership and a member of the board of the Washington County Hospital Foundation. A veteran of the U.S. Navy, Allemeier earned a bachelor’s degree from Ohio State University and a postgraduate degree from Indiana University. Richard C. Harris, chairman of the board of directors of Grant County State Bancshares Inc. and of Grant County State Bank, Swayzee, has retired from board service. He served on the board for 23 years. Harris is a former president of James Matthews Inc., Marion, and a graduate of Indiana University. HB FROM THE BOARD ROOM The 2019 Indiana Bankers Association C2C (Commitment to Community) Awards will showcase exceptional community bank outreach completed this calendar year. Two awards, based on asset size, are to be presented at the 2020 Mega Conference and additionally will be featured in IBA videos. Nominations are due Jan. 31, 2020. For more information, contact Laura Wilson at lwilson@indianabankers.org, 317-333-7146. Click on the C2C logo at left in HB Digital to submit your nomination, or visit indianabankers.org/commitment-community-award 2019 IBA Commitment to Community Award
Hoosier Banker 15 Guiding Community Banks for Over 40 Years Strategic Planning Capital Planning Liquidity Planning Regulatory Assistance Stock Valuations Capital Markets Internal Audit Information Technology Recruitment & Human Resources Lending & Loan Review Regulatory Compliance Policy Development Young & Associates, Inc. Consultants to the Financial Industry
16 JULY / AUGUST 2019 Bath State Bank C2C Videos Showcase Banking’s Commitment to Community As of press time, eight C2C videos are highlighted on the IBA website. To view, click on each screenshot below in HB Digital or visit: indianabankers.org/commitment-community. To submit a video or have the IBA provide complimentary filming/ editing, please contact Laura Wilson at lwilson@indianabankers.org, 317-333-7146. The Farmers Bank, Frankfort Home Bank, Martinsville Hoosier Heartland State Bank, Crawfordsville Merchants Bank of Indiana, Carmel Old National Bank, Evansville STAR Bank, Fort Wayne Wayne Bank and Trust Company, Cambridge City
Hoosier Banker 17 Annette M. Russell, president and CEO of Security Federal Savings Bank, Logansport, was one of four bankers nationwide appointed in May to the Mutual Savings Association Advisory Committee of the Office of the Comptroller of the Currency. The role of the MSAAC includes assessing the condition of mutual savings associations, regulatory changes or other steps the OCC may take to ensure the health and vitality of mutual savings associations. Among other accomplishments, Russell served as chair of the Indiana Bankers Association in 2017. Jon-Myckle D. Price, senior vice president, trust operations of Security Federal Savings Bank, Logansport, has been named a Rising Star in Banking by BankBeat magazine. He joined the bank in 2008, serving as trust administrator/security director and trust officer before being promoted to vice president-trust operations in 2015 and to his current position in 2018. He previously was with Zehner Maloy & Associates, Logansport, and with Salin Bank, Indianapolis. Price is a member of the American Bankers Association Emerging Leaders Advisory Board and serves the Indiana Bankers Association on the Future Leadership Division advisory board. He has been active through the Logansport-Cass County Chamber of Commerce, serving as chair in 2018 and 2019. A certified trust and financial adviser, Price is a graduate of Wabash College, the IBA Leadership Development Program and the Graduate School of Banking at the University of Wisconsin; additionally, he attended the Cannon Trust School. Three IBA-member bankers have been selected for a nationwide listing of 40 Under 40: Emerging Community Bank Leaders, as shown in the June issue of Independent Banker magazine, published by the Independent Community Bankers of America: Kyle Goodwin, assistant vice president, digital product officer, DeMotte State Bank; Kayla A. Konger, vice president and senior retail officer, Garrett State Bank; Deon Shoaf, senior vice president, chief operations officer, First Bank of Berne. Seven member institutions of the Indiana Bankers Association have been recognized by S&P Global Market Intelligence, an IBA associate member, as Best-Performing Community Banks and Credit Unions for 2018. Rankings are based on year-end financials. IBA members included in the list for banks with $3 billion to $10 billion in assets are: No. 6 – Merchants Bancorp, Carmel No. 15 – First Merchants Corp., Muncie No. 21 – German American Bancorp Inc., Jasper No. 29 – Stock Yards Bancorp Inc., Louisville, Kentucky No. 32 – Lakeland Financial Corp., Warsaw No. 39 – First Defiance Financial Corp., Defiance, Ohio No. 50 – First Bancshares Inc., Merrillville Raymond James, a diversified financial services firm, has awarded three Indiana Bankers Association members with the 2018 Community Bankers Cup, recognizing them as among the top 10% of community banks in the nation, based on various profitability, operational efficiency and balance sheet metrics. A total of 26 were awarded the cup, chosen from a pool of 258 exchange-traded domestic banks, excluding mutual holding companies and potential acquisition targets, with assets between $500 million and $10 billion as of Dec. 31, 2018. Recognized IBA members are: First Merchants Corp., Muncie Merchants Bancorp, Carmel Stock Yards Bancorp Inc., Louisville, Kentucky Seven member organizations of the Indiana Bankers Association were recognized in May by Keefe, Bruyette & Woods, Chicago, an IBA associate member, in its honor roll of financial institutions with consistent earnings growth during the past 10 years. Eligible companies must be publicly traded and have more than $500 million in total assets. IBA-member organizations on the KBW honor roll are: 1st Source Corp., South Bend Associated Banc-Corp. Associated Banc-Corp., Chicago First Defiance Financial Corp., Defiance, Ohio First Savings Financial Group Inc., Clarksville German American Bancorp Inc., Jasper Lakeland Financial Corp., Warsaw U.S. Bancorp, Cincinnati HB HONORABLE MENTIONS Convert to HB Digital to Enjoy: n Bonus links to videos, photos and more n Portability by phone/mobile device n Early access, averaging two weeks ahead of snail mail Switch to HB Digital HOOSIER BANKER MAGAZINE indianabankers.org Hoosier Banker is available free of charge to all IBA members and associate members. To start your HB Digital subscription – or convert hard copy to digital-only – contact Laura Wilson at lwilson@indianabankers.org, 317-333-7146. DEPARTMENT
Hoosier Banker 19 MAXI VIDEO BONUS To view a video showcasing 2019 Maxi Award winners, click on the camera icon in HB Digital. ARTICLE SPOTLIGHT Christina M. Bennett, CMP Vice PresidentMeetings & Events Indiana Bankers Association cbennett@indianabankers.org @cbennettin The 2019 Indiana Bankers Association Mega Conference, held May 13-15, gave Indiana bankers the opportunity to listen, learn and network with peers. The theme for 2019 was “Building Better Bankers,” because a strong foundation is essential to building a successful future. This year’s event kicked off on Monday, May 13, with a golf outing at the famous Brickyard Crossing Golf Course where players braved the chilling temperatures to enjoy a spring round of golf. Congratulations to the winning golf team: Eric Augustus, IBA; Doug Dwyer, Allied Solutions, Carmel; Tom Guthrie, Farmers and Merchants Bank, Laotto; and Mel Ward, Kentland Bank. Also thank you to the members of the IBA Future Leadership Division who sold mulligans to raise funds for Indiana BANKPAC. Monday evening, our valued associate members were honored at a reception at the headquarters hotel, the Indianapolis Marriott Downtown. Afterward, many headed off to enjoy dinner in downtown Indianapolis. On Tuesday, May 14, Mega attendees assembled at the Indiana Convention Center for the first day of educational sessions. Concurrent sessions addressed the topics of Compliance, Directors, Operations & Technology, Retail, Sales & Customer Service, and Wealth Management. Our lunchtime speaker was leadership guru Cindy Solomon, who talked about how courage is an increasingly important leadership and job skill. On the same day, the IBA presented Five Star and Diamond Associate awards in recognition of member banks and service providers that have engaged with the Association at a high level. The inaugural Commitment to Community Award was also presented to The Farmers Bank, Frankfort, as detailed in the cover story of this issue. Congratulations to all honorees, and thank you for your strong support of the IBA and your communities. Following Mega tradition, the first day of educational sessions capped off with the annual Mega Celebration. The same evening, current and prospective members of the IBA Future Leadership Division gathered at the FLD Networking Reception. Wednesday, May 15, Mega participants gathered again in the Convention Center for the final day of Mega. Concurrent sessions covered Business Lending, Financial Management, Human Resources, Marketing, Strategic Risk and the newest track addition, Emerging Leaders. Following the morning sessions, guests gathered for a luncheon featuring keynote speaker Steve Gilliland, who urged attendees to make the most of each day in “Enjoy the Ride.” Steve’s people-focused presentation inspired attendees to take control of their lives and make the most of every moment. Also presented at this luncheon were the Maxi Awards, highlighting member banks’ innovative advertising and marketing campaigns. Thank you to the committee members who aided in the planning of this year’s event, as well as the sponsors, exhibitors, speakers, attendees and others who made this event possible. Please join us next year for Mega 2020, scheduled for May 12-14. HB Building Better Bankers 2019 IBA Mega Conference
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