2019 Leaders in Banking Excellence HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! BankLEAD Internship Program SEPTEMBER / OCTOBER 2019
SEMINAR CELEBRATION 2019 The Westin Kierland Resort 6902 E Greenway Pkwy Scottsdale, AZ 85254 480.624.1000 October 24-25, 2019 Scottsdale, Arizona Westin Kierland Golf Club 15636 N Clubgate Dr Scottsdale, AZ 85254 480.922.9283 Member: FINRA and SIPC Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Long Island, NY | Salt Lake City, UT | Springfield, IL The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc. www.GoBaker.com | 800.937.2257 For forty years The Baker Group has been known for its proven software and products, and for helping clients make sound, strategic decisions. The Baker Group’s Interest Rate Risk and Investment Strategies Seminar was developed specifically for managers of financial institutions. Designed to meet current financial challenges, it is an in-depth examination of topics including: • Economic Overview, Market Update, and Fed Policy Outlook • Interest Rate Cycle Dynamics – Preparing the Balance Sheet for the Next Environment • Best Practices to Comply with the Latest Liquidity and IRR Regulatory Guidance • What Should Our Institution Be Buying Today? Seeking the Best Relative Value • Managing Cashflow Optionality to Protect Against Extension and Contraction Risk • Protecting Your Portfolio with a Robust Municipal Credit Process Who Should Attend Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar. Guest Speaker David Rosenberg Chief Economist/Strategist Gluskin Sheff & Associates 11 hours of CPE credits will be earned for your attendance. Register online at GoBaker.com/arizona. For more information call Skoshi Heron at 888.990.0010. OCT Thursday Breakfast 7:30 am Seminar 8:30 am Lunch 12:00 pm Adjourn 4:30 pm Dinner 7:00 pm Friday Breakfast 7:30 am Seminar 8:30 am Conclusion 11:30 am Golf 12:45 pm Join us at our 40th Anniversary seminar celebration in Scottsdale, AZ, at The Westin Kierland Resort & Spa.
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4 SEPTEMBER / OCTOBER 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. 5 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 10 IBA Leaders in Banking Excellence ARTICLE SPOTLIGHT 16 BankLEAD Internship Program FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Andrew J. Briggs, Farmers & Merchants State Bank 8 Staff Selection Wendy Colin, IBA 9 IBA Calendar of Events 40 Social Media Compliance for Banks Craig Lippmann, CSI 42 Reframing the Credit Union Debate Robert S. Nichols, ABA 44 Community Banks Support Financial Literacy Rebeca Romero Rainey, ICBA 50 State Deposits in Indiana Financial Institutions GR SUMMIT 20 New Programs in GR Team’s Toolkit Dax Denton and Eric J. Augustus, IBA PSP SHOWCASE 22 Are Biometrics the Future? Alan Nevels, ICBA Bancard PRODUCTS & SERVICES PROFILE 24 Accuracy and Reliability Rod Lasley, IBA INDIANA BANK & THRIFT STOCK UPDATE 26 Stock Analysis Review Michael A. Renninger, Renninger & Associates LLC AG BANKING 28 Indiana Farmland Values Brady Brewer and Todd Kuethe, Purdue University DIRECTORS / SENIOR MANAGEMENT 30 Investing in a Flat Yield Curve Ryan W. Hayhurst, The Baker Group HUMAN RESOURCES 32 Common FLSA Violations Debra A. Mastrian, SmithAmundsen LLC 36 How to Leverage Training Programs Mark Angott and Charlie Tudor, Angott Research Group OPERATIONS / TECHNOLOGY 34 Understanding the Use of AI Julie Stackhouse, Federal Reserve Bank of St. Louis SECURITY / FRAUD 38 Information Security Risk Joe Oleksak, Plante Moran COMPLIANCE CONNECTION 46 Differing Late Fees Brett J. Ashton, Krieg DeVault LLP DEPARTMENTS 15 Honorable Mentions 23 From the Board Room 23 Next-Gen Bankers Video Series 25 C2C Video 27 Banking Center News 29 Anniversary Milestones 29 Taking It Easy 35 IBA ‘High Five’ 47 Associate Members’ Corner 48 Banking on Community 52 Bankers on the Move 58 Advertisers Index
6 SEPTEMBER / OCTOBER 2019 Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT Annual Washington Trip Oct. 20-22 Join the chorus and make your voice heard at our nation’s capital. Banking on Women Conference Nov. 20-21 Women in banking gather to unlock potential and own the future. Indiana Economic Outlook Forum Dec. 6 Listen and learn about what to expect in the economic landscape for 2020. Don’t Miss Out! The secret to growing an autumn garden, they say, is to plant an appealing mix of annuals and perennials. The annuals bring forth new and different sights and scents, while the perennials keep returning for lasting beauty. My favorite fall flowers are chrysanthemums, which are a crossover of sorts between annuals and perennials, depending on when they are planted. Chrysanthemums planted late in the summer will respond as annuals, showing off their fall colors for one year only. But when planted in the spring, “hardy mums,” as they are called, will dig their roots deep enough to withstand the long, cold winter to bloom again in future years. When well cared for, they’ll grow larger and fuller each year until reaching maximum size. This time of year, the event offerings of the Indiana Bankers Association remind me of an autumn garden – bountiful, beautiful, and with a healthy mix of annuals and perennials. Our fall garden has already started to bloom, beginning in August when we hosted the second annual induction of the Leaders in Banking Excellence – the subject of this Hoosier Banker cover story. On Aug. 9, IBA board members and staff welcomed about 80 guests to our offices for the induction of the class of 2019 Leaders in Banking Excellence. These awards, IBA’s highest honor, are reserved for the shining stars of Indiana banking who have dedicated decades of outstanding leadership and service. Thank you to our guest dignitaries, who helped to make the event special: Director Thomas C. Fite of the Indiana Department of Financial Institutions, Speaker Brian Bosma of the Indiana House of Representatives, and IBA Chairman Andrew J. Briggs. We also appreciate that four honorees from the 2018 class of Leaders in Banking Excellence were in attendance: John Colvin, Joe DeHaven, Pat Glotzbach and Dan Moore. We are now in the month of September, beginning a series of perennial offerings that you have come to know and count on. Topping the list is the IBA Annual Convention, scheduled for Sept. 15-17. If you are reading this magazine in hard copy format, Convention is already underway, featuring a theme of “Fresh Perspectives on the Way We Bank.” Details are forthcoming in the next Hoosier Banker. For the advocacy-minded, fall also ushers in the IBA Annual Washington trip. This year our trip to the nation’s capital is set for Oct. 20-22. Whether you’re a veteran of government relations or simply wanting to learn more, please plan to join us to hear firsthand from lawmakers and regulators about the policies that affect your business. Later, as autumn progresses into colder months, IBA offerings continue. On Nov. 20-21, we present the third annual Banking on Women Conference. This now-regular event attracted more than 300 women in banking when initiated in 2017, and it’s still going strong. Please consider who in your bank would benefit by coming to this event. Offerings continue into December with the Midwest Agricultural Banking School taking place Dec. 2-5 at Purdue University, capped off with the Ag Clinic. For those who serve the farming sector, there’s no better place to learn the latest about agricultural credit and finance than at this perennial event. December also brings a reprise of the Indiana Economic Outlook Forum. This luncheon gathering was reintroduced last December to much acclaim, drawing a crowd of more than 200 professionals eager to gain insights into economic expectations. Be sure to join us on Dec. 6 for a peek at what to expect in the coming year. All of the above are only some highlights – the hardy perennials of what we bring to you. Our garden of offerings also includes an ample supply of annuals, with examples shown on the page 9 calendar of events. At the IBA, we strive to provide you with regular programming you can rely on, year after year, while creating fresh new offerings in response to current developments. Please let us know how we can continue to serve your needs. HB
Hoosier Banker 7 NOTABLE QUOTES Bank Community Service on Twitter Home Bank • @HomeBankSB • Aug. 5 The school year is here and we’ve partnered with a number of other community groups to help North Madison Elementary build an accessible playground! We can’t wait to see students having a blast! The Farmers Bank • @Mybankforlife • Aug. 2 Please support The Farmers Bank annual back to school supply drive from Aug 1 - Aug 27! You can drop off school supplies at any Farmers Bank location. You will find a decorated collection box at each location. School supplies collected will be donated to local schools. German American Bank • @_GermanAmerican • July 30 WOW! German American’s Sellersburg, Indiana, team surprised customers at various local coffee shops throughout Jeffersonville and Sellersburg by paying for their coffee! What a fun way to brighten up everyone’s Friday! We are so proud to give back to such wonderful communities! Centier Bank • @CentierBank • July 16 We are proud to support the @unitedwaypc connecting families to free financial workshops, no-to-low cost banking services, tax prep services, emergency support services and more through the Northern Indiana Bank On Alliance! Community First Bank • @CFBIndiana • July 11 What a great day! We are so excited to present a check for $1,000 to Student Impact of Westfield to go towards their $25,000 Capital Campaign! We’re so inspired by the work they do and the impact they have on this community! #cfbindiana #cfbcares @ StudentImpactW 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 A phrase that the Indiana Bankers Association has been using to describe careers in this great industry is “Better in Banking.” It’s even a Twitter hashtag, coined by the IBA: #BetterInBanking The cover story of this issue of Hoosier Banker focuses on the 2019 class of Leaders in Banking Excellence. Every one of those deserving individuals can attest that their careers were indeed better in banking. That’s good news for an entire generation of soon-to-be professionals seeking jobs that not only provide paychecks and security, but also a sense of fulfillment. Banking can do that. The IBA is now moving full steam ahead in sharing the message that banking is a wonderful profession, and there’s a place for the best and brightest in the Indiana banking community. Here’s one reason why it’s better in banking: Bankers are dream makers. When we are able to grant loans, it’s more than an office transaction. For the recipient, it’s a life changer, allowing the pursuit of a worthy goal, whether that be starting a business, buying a house or going to college. Of course, we can’t always say yes, but even when we have to decline a loan, we are telling clients what they need to hear. There is a fellow I know in my hometown who, many years ago, approached my banker grandfather for a loan. This fellow was straight out of high school, and he hadn’t managed his time or resources well. Needless to say, he didn’t get the loan. He was crushed when he left the bank, but also determined to change his course. So he worked hard, made something of himself, and years later came into the bank to thank my family for what my grandfather had done for him. So even the times we have to say no, it’s better in banking. I believe that being a banker is something like being a parent. Every parent wants to say yes, but good parents know when to say no. It’s the same for this industry. Bankers were unfairly vilified in 2008 and 2009 for the misdeeds of nondepository institutions that said yes when they should have said no. Those nonbank organizations did plenty of harm, including to our reputation, but over the past decade we’ve been working hard to rebuild our communities and our image. Now is time for the next step, which is to bring new talent into banking. There are many reasons that the next generation should want to come to your bank. You and I know the reasons, and the bankers on the cover of this magazine know the reasons – now we need to make the future workforce recognize that their future careers can be better in banking. The last Hoosier Banker ran an article on the IBA’s success in establishing a banking concentration in Indiana. This issue, starting on page 16, reports on the BankLEAD internship program, which recently wrapped up its pilot year successfully. What makes the program unique is that it does more than simply bring interns into your bank. BankLEAD also provides resources, including attention from IBA staff, to ensure that the intern’s time and the bank’s efforts are well spent. Hosting an intern is an investment, one that can help link your institution to the next generation of banking professionals. Just as a business needs a steady source of capital to succeed in the long run, the banking industry must attract new talent to ensure its future. Young people today are looking for fulfillment, not only a paycheck, and that’s what banking can provide. Let’s keep sharing what we have to offer through the “better in banking” message so that a new generation can one day look back proudly on how they helped build communities and make dreams come true. HB
8 SEPTEMBER / OCTOBER 2019 Hello, IBA members. I am happy to be here as the newest member of the IBA team. I joined the Association in April as administrative assistant. My hours are part-time, but I feel fully embraced by my coworkers and IBA members. As administrative assistant, I provide customer service and administrative support, including database updates, supply ordering, reports and deposits. I have nearly 10 years of administrative and customer service experience, most recently serving as executive administrative assistant at a computer recycling company. My main IBA focus, though, is on customer service. I am the receptionist in the lobby who greets you when you walk in the front door, and the person who answers the phone when you call. I enjoy this welcoming role. The best training in customer service came when I worked in a doctor’s office. It’s challenging work, because people who are sick are not always nice. I learned to treat them with extra patience, no matter what. I also learned that empathy, professionalism, teamwork and communication is a formula that works for me. Communication is very important, and the IBA is really good at it. Everyone here is friendly and approachable, and I can tell that my coworkers care about our members and each other. We have well-run staff meetings that keep us updated, and everyone brings their own voices and experiences. Most of the staff have been here a long time – 10, 20, even 30 years. That’s a good thing, but it can be intimidating for a new employee. When I joined, I knew I had big shoes to fill. What helped was that I had great training. I worked closely with Michelle Long, who had been at the lobby desk, and also received very good guidance from Paul Freeman. The IBA is like a family, and that’s important to me. I come from a big family in Mount Prospect, Illinois, about 40 minutes from Chicago. I have three brothers and a sister. My parents came to the United States from Mexico, and they set an example for their children of hard work and sacrifice. My father always worked hard to support us, and my mother was a stay-at-home mom who worked just as hard. We are a close family, and we had a lot of fun together growing up. I remember going to parks and having picnics. On Sundays we’d go out to dinner after church. It was a wonderful childhood. My parents taught us many life lessons. Education was of great significance in our home, so I had the opportunity to attend Everest College. Language was key, so we all became bilingual in English and Spanish. Most importantly, my parents taught me that failure is often necessary in order to learn and succeed. There were times when I was scared to try something new, but my parents would encourage me to take risks. They also allowed me to make my own decisions. Taking a risk is always better than not trying, and failure is just a time out. That lesson has helped me in every aspect of life. It allows me to enjoy my victories more, because I know how hard I’ve worked. This lesson definitely helped about five years ago when my husband, Edgar, and I decided to move to Indiana. We fell in love with Indiana after visiting his mother, who lives nearby. My husband is a business technician for Comcast, which has a lot of locations, so it was an easy transfer. The hard part was leaving family in Illinois, but my dad said, “Changes are always good.” He told me it’s important to adapt and that the move would be good for my children. My father is always telling me that I can do anything. Sometimes I think he has too much confidence in me! My mother was worried that we’d be too far away. But we talk on the phone every day, and now she loves it when she comes to visit. My husband and I have three children, and everything I do outside of work involves them. Our oldest daughter Delilah is nine, our son Milo just turned five, and Kayla is three. Delilah is active in school, which keeps us busy. I also volunteer at the day care that our younger two attend, organizing dances and other activities. And there are children’s sports throughout the year. For family activities, we go different places like the Children’s Museum or the zoo. This past summer we discovered Eagle Creek Park and learned that our son is a patient little fisherman. Balancing work and family is busy, but worth every minute of it. (Coffee helps a lot.) So thank you for the opportunity to be here. I am fortunate to have a happy family at home, a supportive family in Illinois, and a job that I enjoy very much. The next time you come to the IBA offices, please stop by the front desk. I look forward to meeting you. HB Wendy Colin Administrative Assistant Indiana Bankers Association wcolin@indianabankers.org STAFF SELECTION Bank Security Conference: Cyber, Fraud, Physical Diverse departments collaborate at this inaugural event to develop maximum security effectiveness. Click on the icon in HB Digital for more information, or go to: indianabankers.org/calendar-of-events Carmel OCT. 12
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 Annual Convention Sept. 15-17 • French Lick Resort Mortgage Lending School Sept. 18-20 • IBA Center Future Leadership Division Networking Lunches Sept. 23 • Schnitzelbank Restaurant • Jasper Sept. 25 • Chop’s Steak and Seafood • Fort Wayne Sept. 27 • Farmhouse Restaurant • Fair Oaks Oct. 8 • Tre Bicchieri • Columbus Oct. 11 • IBA Center • Indianapolis CBC Compliance School - Lending School Sept. 24-26 • IBA Center Powerful Sales Strategies: Tools to Crush Your Goals Sept. 24 • IBA Center ACH Processing and Compliance Sept. 26 • IBA Center Bank Security Conference: Cyber/Fraud/Physical Oct. 1-2 • IBA Center Banking Essentials Session 4 Oct. 3 • IBA Center Indiana Deposit Documentation Oct. 3 • IBA Center Human Resources Roundtable Oct. 4 • IBA Center Certified Teller Program Oct. 7 • Huntingburg Event Center Oct. 8 • The Sherman • Batesville Oct. 9 • Courtyard by Marriott • Lafayette Oct. 10 • The Landmark Centre • Fort Wayne 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 Trust Officer Roundtable Oct. 15 • 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 Social Media Bootcamp Nov. 4 • 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 Lending Update Dec. 11 • IBA Center Compliance Roundtable Dec. 12 • IBA Center Branch Management Series: Session I - New Year - New Start: Key Components for a Successful Year Jan. 14, 2020 • IBA Center Retail Banking Forum Jan. 15 • IBA Center BSA Officer Forum Jan. 16 • IBA Center Advanced Commercial Lending School Jan. 22-23 • IBA Center BSA Graduate School Jan. 22-23 • IBA Center Measuring Financial Conditions and Performance for Ag Business Jan. 28 • IBA Center
10 SEPTEMBER / OCTOBER 2019 LEADERS IN BANKING EXCELLENCE IBA Leaders in Banking Excellence Class of 2019 Inductees and dignitaries gather for the second annual presentation of the Indiana Bankers Association Leaders in Banking Excellence awards. Shown are (front row, from left): David M. Findlay, Lake City Bank, Warsaw; Morris L. Maurer, The National Bank of Indianapolis; Merle J. Kendall, Spencer County Bank, Santa Claus; Director Thomas C. Fite, Indiana Department of Financial Institutions; and (back row, from left): Kip White, The Fountain Trust Company, Covington; James G. Hiatt, First State Bank of Middlebury; Amber R. Van Til, IBA; Speaker Brian Bosma, Indiana House of Representatives; Richard C. Nelson, representing the late Robert C. Nelson, IBA; and IBA Chairman Andrew J. Briggs, Farmers & Merchants State Bank, Archbold, Ohio.
Hoosier Banker 11 The Indiana Bankers Association honored six members of the Indiana banking community with its second annual IBA Leaders in Banking Excellence awards at a ceremony on Aug. 9. The award, IBA’s highest honor, was created in 2018 to celebrate exceptional leaders who have positively impacted Indiana banks and the communities they serve. The awards ceremony took place at the IBA offices in Indianapolis, with presentations from dignitaries including: Director Thomas C. Fite, Indiana Department of Financial Institutions; Speaker Brian Bosma, Indiana House of Representatives; IBA Chairman Andrew J. Briggs, Farmers & Merchants State Bank, Archbold, Ohio; and Amber R. Van Til, IBA president and CEO. The ceremony culminated with the showing of the IBA Wall of Excellence, where plaques representing each honoree are to remain on permanent display. Additionally, each honoree was given a separate plaque as a keepsake. This year’s Leaders in Banking Excellence honorees include a range of current and retired bankers. One is deceased and was represented at the ceremony by family. All honorees were nominated by IBA-member banks and approved by the IBA board of directors. The IBA congratulates the 2019 class of Leaders in Banking Excellence: David M. Findlay, Lake City Bank, Warsaw James G. Hiatt, First State Bank of Middlebury Merle J. Kendall, Spencer County Bank, Santa Claus Morris L. “Morrie” Maurer, The National Bank of Indianapolis Robert C. Nelson (deceased), Indiana Bankers Association Kip White, The Fountain Trust Company, Covington Following are biographies of each honoree, as showcased on the Wall of Excellence at the IBA offices. DAVID M. FINDLAY Lake City Bank Warsaw JAMES G. HIATT First State Bank of Middlebury David M. Findlay is president and CEO of Lake City Bank, Warsaw, and Lakeland Financial Corporation. He joined the bank in 2000 as executive vice president and chief financial officer, was promoted to president in 2010, and was named president and CEO in 2014. Findlay began his banking career in 1984 with The Northern Trust Company, Chicago. He chairs the Regional Chamber of Northeast Indiana, Logan Center, AcceLINX and the Regional Chamber of Northeast Indiana. Additionally, he is active with organizations including OrthWorx, the Indiana Chamber, the Central Indiana Corporate Partnership, Orthopedic Capital Foundation, Northeast Indiana Regional Partnership, Ivy Tech Foundation and the Community Foundation of Elkhart County. Findlay is a member of the American Bankers Association Community Bankers Council and additionally serves on the boards of the Indiana Bankers Association Holding Company and IBA Service Corporation. James G. Hiatt is a director of First State Bank of Middlebury and Crystal Valley Financial Corporation. He also served the bank as president and CEO from 1982 to 2015. Prominent among Hiatt’s accomplishments is his able leadership during the Great Recession of Elkhart County, successfully maintaining bank profitability and retaining all employees despite areawide economic hardship. Hiatt began his career in 1970 as a computer programmer with First National Bank, Elkhart. His community outreach includes Middlebury Development Corp., Northridge Dollars for Scholars, Greencroft Foundation, Elkhart General Hospital, the Economic Development Corporation of Elkhart County and Michiana Public Broadcasting, among other organizations. He is a member of the Indiana Bankers Association 40 Year Club, a past IBA board member, and a graduate of Ball State University and the Graduate School of Banking at the University of Wisconsin.
12 SEPTEMBER / OCTOBER 2019 MERLE J. KENDALL Spencer County Bank Santa Claus MORRIS L. MAURER The National Bank of Indianapolis Merle J. Kendall is chairman of the board of Spencer County Bank, Santa Claus. His career began with The Dale State Bank in 1954 and took a remarkable turn in 1965 when William A. Koch requested a loan to develop the Santa Claus area. The bank declined, but Kendall offered to partner with Koch to purchase The Lake State Bank, Richland City. By 1968 Kendall had relocated The Lake State Bank to Santa Claus, renamed it Spencer County Bank, and proceeded to lead it through decades of success, all while helping develop the Santa Claus community. Kendall has been honored as Businessman of the Year by the Spencer County Regional Chamber of Commerce, was presented with a Century Award for the bank by former Gov. Mitch Daniels and is a member of the Indiana Bankers Association 40 Year Club. Morrie Maurer is a member of the board of directors and consultant with The National Bank of Indianapolis and The National Bank of Indianapolis Corporation. He retired as president and CEO of the bank and its holding company in early 2019. Maurer previously served from 1975 to 1992 with Indiana National Bank, and in 1993 he became a founder of The National Bank of Indianapolis. During his 25-year tenure with NBofI, the bank grew from a staff of 18 to 330, and its assets grew from $14 million to over $2 billion. Maurer has been active with organizations including the Indy Chamber, Indianapolis Symphony Orchestra, Indiana Landmarks, Newfields, the Booth Tarkington Civic Theatre and the Indiana Board for Depositories. He earned bachelor’s and MBA degrees from Indiana University and is a member of the Indiana Bankers Association 40 Year Club. Robert C. Nelson, leader of the Indiana Bankers Association from 1967 to 1988, passed away in 2018. He had served the Association for 33 years before retiring as president, the highest staff rank at the time. Previously, he was with LaPorte Bank and Trust Company, the U.S. Army Air Corps finance department and Associates Investment Company of South Bend. Affiliations included the Foundation for Full Service Banks, American Bankers Association, Central States Conference of State Associations, Indiana Council for Economic Education and the Economic Club of Indiana. Additionally, he volunteered with Kiwanis International and served on the board of SCORE. Nelson was an Army veteran of World War II, a Sagamore of the Wabash and Kentucky Colonel, a member of the IBA 40 Year Club, and an alumnus of Oxford University in England and Indiana University. ROBERT C. NELSON Indiana Bankers Association Indianapolis KIP WHITE The Fountain Trust Company Covington Kip White is chairman and CEO of The Fountain Trust Company and Piper Holdings Inc., Covington, and practices law with White & White Attorneys LLP. He joined the bank in 1970, serving as president from 1995 to 2015. White is a past Indiana representative of the Independent Community Bankers of America (formerly Independent Bankers Association of America); legislative director, treasurer and president of the Community Bankers Association of Indiana (formerly Independent Bankers Association of Indiana); Covington School Board member; and Pension Management Oversight Commission lay appointee. He was instrumental in the negotiation and passage of the landmark Banking Structure Reform Act of 1985. The third generation of his family to serve as both a lawyer and bank leader, White is a member of the Indiana Bankers Association 40 Year Club and a graduate of DePauw University and the Indiana University School of Law. HB LEADERS IN BANKING EXCELLENCE Event photos on page 14. For more information, visit: indianabankers.org/leaders-banking-excellence
Hoosier Banker 13 Young & Associates, Inc. Consultants to the Financial Industry 41 YEARS 1978 - 2019 Planning Services Strategic Planning Capital Planning Liquidity Planning Pro t Planning Budgeting Expansion Planning Succession Planning For more information on our Planning Services, contact Bob Viering at bviering@younginc.com or 800.525.9775.
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Hoosier Banker 15 HONORABLE MENTIONS Bob Jones, chairman of Old National Bank, Evansville, has been named senior adviser of ethical leadership for the Lacy School of Business at Butler University. In this capacity he is serving as part of the school’s leadership team, as well as a mentor to students, faculty and staff. The only previous senior adviser in the school was Andre B. Lacy. Jones joined Old National Bank in 2004 and continues as chairman, having retired as CEO in early May. Under his leadership, the bank has been recognized as a leader in ethics, equality and impact by the Ethisphere Institute, Bloomberg and VolunteerMatch. Jones serves on the boards of the University of Evansville, Riley Children’s Foundation, the American Bankers Association American Bankers Council Chair and International City/County Management Association-Retirement Corporation. Previously, he served on the Federal Reserve Bank of St. Louis board of directors, where he was a member of its executive committee and chaired the audit committee. Among other honors, Jones is a Sagamore of the Wabash and a Distinguished Hoosier, and has been inducted into the Evansville Regional Business Hall of Fame and the Evansville Vanderburgh School Corporation Hall of Fame. Jones was also appointed by Gov. Eric Holcomb to serve on the Next Level Teacher Compensation Commission, and he also serves on the Second Curve Capital Advisory Board. Bradley S. Cunningham, The Farmers Bank, Frankfort, has been appointed to the board of trustees of the Lafayette campus of Ivy Tech Community College. Cunningham serves the bank as senior vice president, manager of commercial lending. Previously he held several positions at NBD Bank, including vice president of retail banking. Cunningham is a member of the Clinton County YMCA board, Frankfort Kiwanis, Symposiarchs and Frankfort Jaycees, among other organizations. He also has served on the boards of the Clinton County Chamber of Commerce and United Way of Clinton County. Cunningham is a graduate of Indiana University and of the Graduate School of Banking at the University of Wisconsin. First Bank Richmond was presented in April with the United Way Community Partner Award in recognition of exceptional commitment and leadership with the United Way campaign over numerous years. Additionally, Ryan Lathery, assistant vice president/loan officer, was honored as United Way Outstanding Board Member of the year. * Commerce Bank has announced its intended sale to Indiana Members Credit Union, to be finalized in 2020. Charity Mohr, loan officer of First Bank Richmond, Shelbyville location, was honored in January with the F.C. Bud Tucker Community Service Award. This award is presented to those who make a positive impact on the community outside of real estate. Leaders of Horizon Bancorp Inc., both past and present, gathered in New York on Aug. 5 to ring the Nasdaq opening bell. The organization is the holding company of Horizon Bank, Michigan City. The bell-ringing ceremony celebrated Horizon’s 146 years in business and reaching over $5 billion in total bank assets by the end of the second quarter of this year. Five member banks of the Indiana Bankers Association were recognized in the Indiana listing of Forbes’ “America’s Best Banks in Each State” list, published in June. The listing is based on a survey of more than 25,000 U.S. customers regarding current and former banking relationships in the areas of trust, terms and conditions, branch services, digital services and financial advice. Banks with branches in at least 15 states were excluded from the ranking. IBA-member banks were: Centier Bank, Whiting STAR Bank, Fort Wayne Huntington National Bank, Columbus, Ohio First Financial Bank, NA, Terre Haute First Merchants Bank, Muncie Three member banks of the Indiana Bankers Association have been ranked among the 200 healthiest banks of America in the 2019 list compiled by DepositAccounts.com. The online assessment publication analyzed 5,267 U.S. banks insured by the Federal Deposit Insurance Corp. to compile the list, using a formula containing components including Texas ratio, deposit growth and capitalization. The following IBA-member banks are included in the 2019 list: No. 38 - Commerce Bank, Evansville* No. 76 - Hendricks County Bank & Trust Company, Brownsburg No. 149 - Dearborn Savings Bank, Lawrenceburg HB Leadership of Horizon Bancorp Inc. gather in Times Square for the ceremonial ringing of the Nasdaq opening bell. Shown at the United Way awards recognition of First Bank Richmond are (from left): Traci Trotter and Brandy Lakes, First Bank Richmond; Paul Stanley, United Way president; and Ryan Lathery and Craig Lichtenberger, First Bank Richmond. DEPARTMENTS
Bringing Banking to the Next Generation 16 SEPTEMBER / OCTOBER 2019 ARTICLE SPOTLIGHT BankLEAD Internship Program Wraps up successful first year In order for the Indiana banking community to thrive into the future, it must continually attract and retain new talent. This need is so prominent that it is featured as the “Next-Gen Bankers” pillar of the Indiana Bankers Association’s 20182020 strategic plan. Talent acquisition is addressed through two goals: (1) create a banking concentration at an Indiana university, and (2) implement a meaningful internship program. The IBA is pleased to report that both initiatives have been a success. The establishment of a banking concentration has been completed, as covered in the July/August 2019 Hoosier Banker, page 22. Equally successful is the pilot-year implementation of the BankLEAD internship program. The purpose of BankLEAD is to create a robust program that brings high-caliber college and university-level students to IBA-member banks for a mutually beneficial work experience. While several member banks already had internship programs in place, others indicated they wanted to offer internships, but lacked the resources to develop programming. To address this issue, last fall the IBA rolled out the BankLEAD internship program, through which the IBA acts as a liaison between member banks and participating colleges/universities. To give consistency to internships, the IBA created detailed guidebooks for both banks and interns. Additional IBA responsibilities range from prescreening candidates to hosting intern events. The pilot year of the program was completed this past summer, with four banks and five interns taking part. The program kicked off at the IBA Mega Conference in May with an orientation track for interns, who additionally had the opportunity to meet with members of the IBA Future Leadership Division. As the summer progressed, IBA staff remained in close contact with participants to monitor progress, seek input, and assess program strengths and weaknesses. In July the IBA hosted a joint event for banking interns and FLD members that combined professional
Hoosier Banker 17 Steven Guipe completed a summer internship at North Salem State Bank. He is a junior at Spring Arbor University in Michigan, majoring in finance. Andrew Schuler completed a summer internship at Citizens State Bank, New Castle. He is a junior at Ball State University, majoring in finance. Morgan Shields completed a summer internship at The Farmers Bank, Frankfort. She is a senior at Ball State University, majoring in accounting. HB Wyatt Althoff completed a summer internship at North Salem State Bank. He is a senior at Anderson University, double majoring in accounting and finance. Tucker Dawson completed a summer internship at Home Bank, Martinsville. He is a senior at the University of Evansville, studying management and economics. BankLEAD – Year 2019 Interns development with outdoor activities for networking entertainment. The IBA thanks the four member banks that took part in the pilot year of this program: • Citizens State Bank, New Castle • The Farmers Bank, Frankfort • Home Bank, Martinsville • North Salem State Bank Plans are underway to continue and grow BankLEAD for 2020. For questions or more information, contact Eric Augustus at 317387-9380, eaugustus@indianabankers.org. HB
18 SEPTEMBER / OCTOBER 2019 To help promote banking as a career, the Indiana Bankers Association has created a shareable #BetterInBanking flyer for banks to download. The flyer features information about bank functional areas and matching skillsets, the benefits of a career in banking, and how being part of the banking industry can make a difference in the communities that banks serve. To access the #BetterInBanking flyer, scroll down to the green arrow on the IBA’s Banking as a Career webpage at indianabankers.org/banking-career Additionally, the Banking as a Career webpage provides details about the IBA Next-Gen Bankers Video Series, the Indiana Banking Internship Program, BankTalentHQ and the IBA Future Leadership Division. HB #BetterInBanking Flyer Available BOLI & Deferred Compensation Experts | 800.780.4EBN www.ebn-design.com ©2019 EBN A Grand Slam Way to Let the experts of EBN illustrate the advantage of a �������e��� �e�e��e� �a�� �n�en�ve Plan. We can help you financially mo�vate and retain your best talent with a plan that is effec�ve, cost-efficient and simple to execute. ��er all, our best talent is helping you keep yours. Reward Your Best Talent On July 12, the IBA hosted a mid-summer gathering for members of the Future Leadership Division and interns at IBA-member banks. Some of the interns were affiliated with the BankLEAD internship program, and others were with banks that had pre-existing internships in place. The purpose of the event was to provide professional development and networking opportunities to emerging bank leaders and the next generation of bankers. HB FLD/Intern Mid-Summer Event Human Resources Roundtable The IBA Roundtable Series is designed to provide a forum for peer exchange. Each roundtable will have a peer moderator to facilitate the exchange of ideas. Click on the icon in HB Digital for more information, or go to: indianabankers.org/calendar-of-events Indianapolis OCT. 4
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