Table of Contents 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

2019 Vol. 103 No. 6

CONNECT CULTURE RESULTS Network Share Strategy Mission Educate Convene Learn Support Ambition Future Motivate Potential Engage Spotlight Volunteer Advocate Community Participate Grow Challenge Business Skills Finance Leadership Banking Next-Gen Success Skills Grow Opportunity Knowledge Relationships Solutions Build Performance Teamwork Excellence HB HOOSIER BANKER MAGAZINE indianabankers.org PLUS! 2019 IBA Annual Convention NOVEMBER / DECEMBER 2019

Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the annual IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, rlasley@indianabankers.org. This prestigious distinction, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who have left their mark in Banking  Community Service  Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. Now through April 30, 2020, the Indiana Bankers Association is accepting nominations for the 2020 CLASS of the IBA Leaders in Banking Excellence.

4 NOVEMBER / DECEMBER 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 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 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. 6 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 @indianabankers Publisher: Amber R. Van Til Editor: Laura Wilson Advertising: Rod Lasley Submit materials to: HB@indianabankers.org Copy deadline: First of the month preceding publication. 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 Future Leadership Division ARTICLE SPOTLIGHT 14 IBA Annual Convention FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Andrew J. Briggs, Farmers & Merchants State Bank 9 IBA Calendar of Events 18 Builders of Banking GR SUMMIT 20 Interim Study Committee Meetings Dax Denton and Eric J. Augustus, IBA FLD FOCUS 22 FLD Leadership Conference Josh Myers, IBA INDIANA BANK & THRIFT STOCK UPDATE 26 Stock Analysis Michael A. Renninger, Renninger & Associates LLC COMPLIANCE CONNECTION 28 Indiana Do Not Call Law Brett J. Ashton, Krieg DeVault LLP DIRECTORS / SENIOR MANAGEMENT 30 Net Interest Margins Dale Sheller, The Baker Group 32 Community Banks Feel the Pressure Carolyn Duren and David Hayes, S&P Global Market Intelligence HUMAN RESOURCES 34 Major Change to FLSA Overtime Rule Debra A. Mastrian, SmithAmundsen LLC 36 Mortgage Loan Officers Tracy Marks, LenderSelect Mortgage Group OPERATIONS / TECHNOLOGY 38 Fintech and Technology Julie Stackhouse, Federal Reserve Bank of St. Louis PSP SHOWCASE 40 PSP Year-End Summary 2019 Rod Lasley, IBA DEPARTMENTS 27 New Member Welcome 27 Taking It Easy 31 Banking Center News 33 In Memory of 37 Next-Gen Bankers Video Series 39 IBA ‘High Five’ 46 Anniversary Milestones 48 From the Board Room 49 Honorable Mentions 50 Associate Members’ Corner 52 Banking on Community 54 Bankers on the Move 62 Advertisers Index

6 NOVEMBER / DECEMBER 2019 Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT Banking on Women Conference Nov. 20-21 Women in banking gather to unlock potential and own the future. Midwest Agricultural Banking School Dec. 2-5 Learn the latest about ag credit and finance at Purdue University. Indiana Economic Outlook Forum Dec. 6 Listen and learn about what to expect in the economic landscape for 2020. Don’t Miss Out! This is the time of year that goes by all too quickly. Once we hit the month of November, all of a sudden we’re in a rush to get everything done by year-end. Aside from the holiday flurry, an activity that keeps all of us busy is reviewing and assessing annual goals. We want to ensure we’ve met our goals and, if not, determine how to do so before the current year closes. At the Indiana Bankers Association, just as at your bank, staff have multiple goals to complete each year. In our case, goals are in support of the five pillars of our strategic plan: Tell the Story, Fiscal Strength, Education, Government Relations and Next-Gen Bankers. I’m pleased to report that we are doing well in this fourth-quarter stretch. In the area of Tell the Story, we’ve been actively telling your story, in part by showcasing exemplary bankers and their community service through IBA awards. So far this year we’ve presented Commitment to Community and Leaders in Banking Excellence awards. Later this month we’ll bestow the Woman of the Year and the Woman on the Rise awards at the Banking on Women Conference. Awards are only the tip of the iceberg, though. Notably, we’ve been tapping into technology to create and share videos highlighting bank community service and next-gen bankers. In fact there’s a recent nextgen banker video in this magazine issue on page 37 that tells the story of how banking is a worthy career for the next generation of young professionals. In the area of Fiscal Strength, our goal is not only to be strong but to stay strong. With a new fiscal policy manual serving as our guidepost, we look forward to continuing to keep our budget variance within a range of 1%. Additionally, this year we’ve enhanced our endorsed partnership program by adding a new Preferred Service Provider and a new IBA subsidiary, significantly helping to diversify our revenue stream and keep your membership dues low. Our robust Education area is working to ensure that IBA offerings adapt to meet future needs. With member banks continuing to merge, the IBA is taking a regional viewpoint, reaching out to neighboring state bankers associations to address education delivery options in a regional landscape. IBA’s Education department also is continuing to evaluate emerging leader educational needs and programming. For our fourth strategic plan pillar, Government Relations, your GR team is ensuring that all bases are covered for 2019 while simultaneously gearing up for 2020. All is well on the back end, with updated BANKPAC materials in place, increased peer-to-peer networking, and a successful Future Leadership Division Day at the Statehouse, which recorded a 27% jump in attendance. Going forward, the GR team has been reviewing issues that potentially could impact banking in readiness for the upcoming legislative session, starting in January. Also, as of this writing, the IBA Annual Washington Trip is around the corner. I always enjoy time in DC with a contingent of Indiana bankers, who consistently represent the industry by asking the right questions and delivering the right solutions. For our final strategic plan pillar, Next-Gen Bankers, much progress has been made. The students of the first class of the banking concentration at Purdue University Northwest are now wrapping up the fall semester. Our hope is that this concentration will inspire a new wave of Indiana students to consider banking as their preferred career choice. Also in Next-Gen, the former Indiana Banking Internship Program has been rebranded as the BankLEAD Internship Program. This program helps to bring top college students to IBA-member banks for summer internships, plus provides tools and resources for participating banks to help them structure internships that truly benefit both the intern and the bank. So there you have it. We’re finishing out a good year, and we look forward to serving you in the next. Please keep in mind in 2020 that we’d like to shine a spotlight on as many members as possible, so be on the lookout for information about nominating your bank/bankers for the Commitment to Community awards, 40 Year Club and Leaders in Banking Excellence opportunities. HB

Hoosier Banker 7 NOTABLE QUOTES Bank Community Service on Twitter First Financial Bank • @BankAtFirst • Oct. 3 Cheers to all the runners & walkers who participated in the 13th Annual @SophiesAngelRun in Bridgetown! We’re proud to be a sponsor to help raise awareness for pediatric brain tumor research & keep Sophie’s memory alive through scholarships. #bankatfirst #givefirst 1st Source Bank • @1stSourceBank • Sept. 22 A big thank you to our client, Mary, for allowing us to be part of her visit to her hometown Thikah, Kenya and the school children there! She asked if we’d provide a small item she could gift to the 1,000 students. Sometimes all it takes is a pencil to make someone smile. Crossroads Bank • @CrossroadsBank • Sept. 13 Carly Doerr of our #NorthManchester Branch recently presented a check to #AnimalWelfareLeague. The bank made this donation on her behalf for winning the @CrossroadsBank #EmployeePetContest with Ellie Mae. First Savings Bank • @fsbindiana • Sept. 5 Proudly supporting our communities! First Savings Bank’s Charlestown Office is collecting non-perishable items on behalf of the North Clark Outreach Center. Items may be dropped off through the end of September. Hoosier Heartland State Bank • @myHHSB • Aug. 26 Thank you to our generous community for supporting our annual food drive! We collected the most donations to date! #fooddrive #hhsbgivesback #communitybank 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 A highlight each year at the Indiana Bankers Association is the Annual Convention, which you can read about in this issue. As always, we had a terrific event, with outstanding presentations, great food and entertainment, and lots of networking opportunity. At Convention, the Future Leadership Division was very successful in raising funds for BANKPAC, with more than $25,000 coming from the auction alone. And if you were there, you may remember an unusual item on the live auction agenda. For the auction, our incoming chairman, Lucas White of The Fountain Trust Company, offered a shoe-shopping experience to the highest bidder. It wasn’t just any kind of shoe shopping – it was shopping for high-end Allen Edmonds shoes. This make of shoe has been the topic of conversation for some time with the IBA government relations team and other banking advocates. Apparently Allen Edmonds shoes are pricey, but stylish and comfortable. What better way to raise funds and have some fun than for Lucas to personally pledge to buy a pair of Allen Edmonds for the highest bidder? It became even more fun when the winning bidder turned out to be the brother of Lucas, Campbell White. I hear the brothers have already gone on their shoe shopping trip, with some IBA staff tagging along to watch. Lucas clearly is a man of his word. That was all good fun, but serious, too, because in the end more funds were raised to support the PAC that supports Indiana banking. Those shoes, too, are a little bit of a metaphor. We community bankers like to say that we wear many hats, but since hats aren’t as popular as they once were, maybe we should say we wear many different kinds of shoes. When you as a banker are making a presentation to your board, you wear a formal kind of shoe – maybe even Allen Edmonds. Then when you’re visiting with clients, you might wear steel-toed safety shoes, if touring a plant; or mud-proof hiking boots, if visiting a farm; or sneakers, if helping at an elementary school event. Bankers also walk a fine line day in and day out, constantly balancing between being too tight in lending standards versus too loose. There are many fine lines for bankers, among the various constituents including shareholders, customers, staff and members of the community. At the same time, we need to point our toes in the right direction in order to walk boldly into the future. We know that whatever it is that we’ve done for years to be successful may not work in upcoming years or weeks or days. We need to choose our steps carefully to walk into a successful tomorrow. Sometimes the pace of banking is so fast that we need running shoes, not walking shoes, just to keep up. In my case as IBA chairman, I feel like I’m running a relay race, soon to pass on the leadership baton to Lucas. Later he’ll pass it on to his successor, and on and on. I look forward to seeing how Lucas fulfills his role as 2020 chairman. He and I represent different career stages, but we share a legacy, in that we both come from banking families. Lucas is a fourth-generation banker and attorney, and I’m a fifth-generation banker. You don’t have to be born into a banking family, though, to hold utmost respect for this industry. I’ve met many fine banking professionals throughout my career, and I consider the Indiana banking community to be my other family, with a strong tradition going back too many generations to count. As year 2019 winds to an end, I’d like to thank each of you for allowing me to serve as your chairman. I’ll always consider it one of the highest honors of my career, and it’s been a privilege to work with you. HB

8 NOVEMBER / DECEMBER 2019 Coming Soon... Read details about the new site in the next Hoosier Banker. A fresh, updated indianabankers.org!

Hoosier Banker 9 View full calendar and register online at indianabankers.org/calendar. IBA Center for Professional Development | 8425 Woodfield Crossing Blvd., Suite 155E | Indianapolis, IN 46240 | 317-387-9380 ONLINE Build knowledge via webinars or on-demand. CLASSROOM Learn with peers in a classroom setting. SCHOOLS Deepen understanding through multi-day learning. EVENTS Experience a variety of IBA gatherings. CONFERENCES Convene and connect at signature IBA events. Calendar of Events CALENDAR UPDATE 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 ACH Processing and Compliance Dec. 5 • IBA Center 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 Advanced Commercial Lending School Jan. 15-16 • IBA Center Senior Retail Banking Officer Forum Jan. 15 • IBA Center BSA Officer Forum Jan. 16 • IBA Center Outside Calling School Jan. 21 • IBA Center BSA Graduate School Jan. 22-23 • IBA Center Measuring Financial Conditions and Performance for Ag Business Jan. 28 • IBA Center IRA Basics and Advanced Feb. 4-5 • IBA Center CFO Forum Feb. 6 • IBA Center • Group 1 Feb. 7 • IBA Center • Group 2 CBC Compliance – Session 1 Feb. 11 • IBA Center Feb. 12 • IBA Center Feb. 13 • Indiana Wesleyan University • Marion Risk Management Officer Forum Feb. 18 • IBA Center Consumer Loan Documentation Feb. 18 • IBA Center Commercial Loan Documentation Feb. 19 • IBA Center Marketing Director Forum Feb. 25 • IBA Center IT and Operations Officer Forum Feb. 26 • IBA Center • Group 1 Feb. 27 • IBA Center • Group 2 Call Report Seminar March 3 • IBA Center Personal/Business Financial Statement Analysis and Business Cash Flow Analysis Bootcamp March 4-6 • IBA Center New Account Documentation & Compliance March 10 • Indiana Wesleyan University • Fort Wayne Senior Lender Forum March 11 • IBA Center • Group 1 March 12 • IBA Center • Group 2 New Account Documentation and Compliance March 11 • IBA Center New Security Officer Forum March 15 • IBA Center Human Resource Directors Forum March 26 • IBA Center Leadership Development Program – Session 1: It’s Simple But It Isn’t Easy March 24-26 • Abe Martin Lodge • Nashville Consumer Lending School April 7-8 • IBA Center Mega Conference May 12-14 • Indiana Convention Center • Indianapolis Annual Convention Sept. 13-15 • French Lick Resort

10 NOVEMBER / DECEMBER 2019 Emily Brooks Member Engagement Specialist Indiana Bankers Association ebrooks@indianabankers.org COVER STORY IBA Future Leadership Division Forging a path into the future The Future Leadership of the Indiana Bankers Association serves a clear mission: to connect banking professionals within IBA membership by providing education, networking and volunteer opportunities in order to develop and inspire leaders who will advocate for and sustain the future of Indiana’s banking industry. The FLD in its current state has only existed since the early part of the decade. Before then, its membership had fluctuated over the years and eventually dwindled to solely those on the FLD advisory board, and the group provided few official event offerings. With the banking industry’s emphasis on attracting and maintaining new talent, it was imperative that the FLD gain strong membership, leadership and structure, and a reforming of the group was necessary to ensure its future success. Predictably, the new group’s numbers started out small. It is estimated there were only about 20 FLD members at the beginning of this rejuvenation process. As a result of the efforts of the group and IBA staff, FLD numbers nearly quadrupled within only a few years. Official data shows the FLD had 78 members as of December 2014. FLD advisory board president Kirby Drey of Kentland Bank says that the FLD’s growth was possible “through the hard work of Chris Bennett, Dax Denton, Josh Myers and the FLD advisory board members over the years,” plus through the creation of a strategic plan that laid out specific goals for the FLD. “It was a strategic initiative to grow the member base from more than just an advisory board,” says FLD advisory board vice president Melodie Yarnell of Jackson County Bank, who will rise to the role of FLD president in 2020. “With that initiative, the advisory board and the IBA made it a priority to design a program for future leaders, no matter their age, that would focus on building relationships with their peers, enhance their knowledge of banking and leadership, and understand the importance of advocacy and the GR process,” she adds. “With continued development of the FLD offerings and promotion of its brand to all bankers, including executives, the FLD has been very successful in building its membership.” As of this writing, the FLD has 387 members, with a goal of reaching 400 members by the end of 2019. Over 50% of IBA member banks have FLD members, and of these participating banks, the FLD boasts an average of more than five members per bank.

Hoosier Banker 11 Groups like the FLD have become a staple among state bankers associations, and Yarnell emphasizes they are essential in maintaining talent. “As our population ages, there is and will continue to be a knowledge drain in our industry,” she says. “If we aren’t focusing on those interested in leadership and a career in banking, further constriction of our industry and community banks will continue. Community banking is a staple in many of our communities and without community banks, the focus on consumer needs will be eliminated.” Upcoming FLD advisory board vice president Emily Boardman of Crossroads Bank says, “Bankers more connected to the industry are more likely to stay in the industry. Emerging leader groups are a way to demonstrate that you are investing in those people in your institution.” To best engage its membership the FLD offers a variety of events throughout the year, including FLD Day at the Statehouse and the FLD Leadership Conference. This August the FLD Leadership Kirby Drey 2019 FLD President Melodie Yarnell 2020 FLD President Emily Boardman 2020 FLD Vice President PHOTO CAPTION: Members of the Future Leadership Division gather for the 2019 FLD Day at the Statehouse.

12 NOVEMBER / DECEMBER 2019 Conference had its largest turnout ever, with 104 attendees. Drey says that FLD events have helped him grow as a banker: “Attending different Future Leadership conferences, I have listened to a variety of speakers that focus on leadership skills. Over the years I have been able to utilize these programs as an opportunity for personal growth. We have even used some of the speakers in our own organization.” Events such as the FLD Day at the Statehouse demonstrate the FLD’s emphasis on advocacy as a method of building leadership skills while also benefiting the banking industry as a whole. The IBA believes that the most effective advocacy takes place at the grassroots level, when bankers meet face-to-face with their lawmakers to express industry views. For Boardman, FLD events have opened Emily Boardman (center), Crossroads Bank, speaks with Kirby Drey and Melodie Yarnell at the 2018 FLD Leadership Conference. her eyes to how she can make an impact as a banker, especially in the advocacy realm. “I joined FLD after attending a Day at the Statehouse event in 2015,” she says. “I became more aware of the importance of advocacy and how the legislative environment has a direct impact on our roles within our banks.” Boardman continues: “It also became clear to me how little I knew about our state legislative process. Unfortunately, the world is slightly more complex than the ‘Schoolhouse Rock: How a Bill Becomes a Law’ version from elementary school. The IBA event, and events since, have provided great insight for the process that governs our industry.” In the coming year, the FLD advisory board looks to continue building upon the group’s success. “We now have a great group of individuals on this advisory board that Melodie Yarnell speaks at 2018 FLD Leadership Conference at The Alexander. Kirby Drey leads an FLD advisory board meeting. Members of the FLD advisory board convene at the IBA offices in 2018. come from all different areas of the bank and are excited about growing the FLD even more,” Drey says. Overall, Yarnell is pleased with the group’s development during her time on the FLD advisory board. “Growing our membership to nearly 400 members in a short period of time, increasing the importance of advocacy among future leaders, and watching the relationships among our leaders develop and grow are all successes that I’m proud to have been a part of,” she says. Boardman’s goal is for FLD members to stand out in the industry. “I want FLD to be seen as the talent pool to draw on the next level of leadership for each individual financial institution,” she says. “I hope it will be obvious which members of your team have been active in the industry through FLD.” HB

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.

14 NOVEMBER / DECEMBER 2019 IBA Annual Convention Fresh perspectives in banking ARTICLE SPOTLIGHT In September more than 450 IBA members gathered for the annual meeting at the French Lick Resort. This year’s event began with the traditional golf outing at the Donald Ross Course, and the evening festivities kicked off with a reception in the exhibit hall and the Chairman’s Banquet. Past IBA presidents and chairmen were recognized for their contributions to the Association, and members of the 40 Year Club were recognized. New 40 Year Club members were also inducted on this evening. The ceremonial passing of the gavel, from 2019 Chairman Andrew Briggs to 2020 Chairman Lucas White, also took place. Tom Fite, director of the Indiana Department of Financial Institutions, and State Rep. Matt Lehman were also on hand to present a Sagamore of the Wabash award to Andrew on behalf of Gov. Eric Holcomb. Afterward Andrew expressed his pleasure at the award, saying that he followed in the footsteps of his father in receiving this honor. The grand prize drawing, sponsored by SHAZAM Inc., also took place, and Billy Winter, Bippus State Bank, was announced the winner of a diamond necklace. After the proceedings concluded, the group was entertained by mentalist Jon Stetson, who astounded the audience with his powers of perception. Thank you to the Chairman’s Banquet sponsor – the IBA Group Insurance Trust, Insured by Anthem – and also to the entertainment sponsor SmithAmundsen LLC. On Monday members attended educational sessions on a range of educational topics, and the entire conference was woven together by emcee Joe Micallef. Presentations also were made by leadership from the American Bankers Association and the Independent Community Bankers of America. Monday’s lunch, sponsored by the Federal Home Loan Bank of Indianapolis, featured a keynote address titled “Eight Traits of a Quality Teammate” by Coach Kevin Kush. The official voting for 2020 also took place at the luncheon, and the group heard from incoming Chairman Lucas White on his plans for the coming year. Additionally, State Rep. Jeff Ellington was awarded the honor of IBA Legislator of the Year. Monday night was the Future Leadership Division silent auction which raised a record $25,189 for Indiana BANKPAC. The sweepstakes drawing for a trip to Scotland also was held; congratulations to winner La 'Saundra Williams of First Merchants Bank. Both the auction dinner and the sweepstakes were sponsored by The KeyState Companies. Tuesday began with a keynote breakfast that kicked off with a state of the association address by IBA President and CEO Amber Van Til. The breakfast speaker, Lt. Col. Bob Darling, gave attendees a glimpse into the White House bunker on Sept. 11, 2001. Thank you to our breakfast sponsor Keefe, Bruyette & Woods. Following breakfast there were exhibitor prize drawings and more educational sessions focusing on payment and the hemp industry, before the convention concluded at noon. Please plan to join us next year for the IBA Annual Convention, scheduled for Sept. 13-15, 2020, again in French Lick. HB Christina M. Bennett, CMP Vice President- Meetings & Events Indiana Bankers Association cbennett@indianabankers.org @cbennettin Annual banking Community Bankers of Loan Bank of Bank of Indianapolis, of Indianapolis, featured

Hoosier Banker 15 New Officers Elected Effective Jan. 1, 2020 Chairman - Lucas White, The Fountain Trust Company, Covington First Vice Chairman - Michael S. Zahn, First Federal Savings Bank, Huntington Second Vice Chairman - Garry D. Kleer, First Bank Richmond Congratulations to the winners of the 2019 IBA Annual Convention golf outing: Michael O’Connor, Brian Pilarski, and Jeffrey Webb of Alliance Bank, Francesville; and Jerald Murphy of BITS, Newark, New Jersey. American Bankers Association Angott Search Group The Baker Group BancMac/Community Banc Mortgage Corporation Bankers’ Bank BITS BKD CPAs & Advisors Boenning & Scattergood BOK Financial Institutional Advisors Check Printing Contract Consulting CIBC Bank USA Cinnaire Corporation Clark Schaefer Hackett Crowe LLP Donaldson Capital Management Donnelly Penman & Partners Equias Alliance, an NFP Company ETS Environmental & Associates LLC Federal Home Loan Bank of Indianapolis Green Sign Company Haberfeld IBA Group Insurance Trust, insured by Anthem Annual Convention Elections Thank You, Annual Convention Sponsors Independent Community Bankers of America Infotex Investors Title Insurance Company IT Resource Inc. K4 Architecture + Design Keefe, Bruyette & Woods The KeyState Companies Krieg DeVault LLP Plante Moran ProBank Austin Profit Resources Inc. Promontory Interfinancial Network LLC PULSE, a Discover Company Renninger & Associates LLC SHAZAM Inc. SmithAmundsen LLC TIB-The Independent BankersBank, NA Title Center of Indiana LLC Travelers United Bankers’ Bank Wilmington Trust NA Young & Associates Inc. Golf Outing Winners

16 NOVEMBER / DECEMBER 2019 ARTICLE SPOTLIGHT

Hoosier Banker 17

Builders of Banking Celebrating the foundation of Indiana banks For more information about membership opportunities, contact the IBA offices at 317-387-9380, or visit indianabankers.org Some 85 IBA-member banks have been in business 100 years or longer, setting the foundation for the proud heritage of banking in the Hoosier state. These banks endured the Great Depression, wars, droughts, economic downturns and other challenges, yet have remained in business and continue to serve their communities. More than 225 bankers have served through the years as presidents and chairs of the IBA, including leaders from merged organizations – the Indiana League of Savings Institutions and the Community Bankers Association of Indiana. These banking professionals have given countless hours of time and talent to voluntary leadership. This club recognizes Indiana bankers who have served 40 or more years in banking. More than 400 current members of the club are invited each year to the Chairman’s Banquet at the IBA Annual Convention. Additionally, club members may receive Hoosier Banker magazine, helping to keep retirees in touch with the IBA. Because the building of banking is an ongoing process, the IBA reaches out to emerging bank leaders through the Future Leadership Division to offer opportunities in education, networking and leadership development. Additionally, the FLD advisory board president serves on the IBA board, giving voice to 380+ FLD members. The Indiana Bankers Association salutes the builders of Indiana banking, the people and institutions that serve as the foundation of the Indiana banking community. An association is as strong as its members, and the IBA benefits from a membership fully dedicated to Indiana banks and the communities they serve. Below are the four categories of IBA Builders of Banking. To view member lists in each category, click on the corresponding logo in HB Digital. To request hard-copy rosters, contact Laura Wilson at lwilson@indianabankers. org, 317-333-7146. 18 NOVEMBER / DECEMBER 2019

First State Bank Middlebury - Goshen, IN First Bank of Berne Operations Center - Berne, IN The Napoleon State Bank - Greensburg, IN K4 believes in designing and creating environments in which banks can succeed and thrive. We believe it is possible to design your space to attract both younger and older generations. We believe you can integrate technology while still preserving the traditional core values and legacy of your institution. We believe that people still value personal relationships. We believe in brand consistency and balance. We believe in the future of the bank branch and in the Indiana Banking Community. Whether you need a new facility, an interior remodel, or a graphics refresh; we provide appropriate design solutions for where and when you need them. We are proud to share our financial portfolio and have completed over 2,000 financial projects in the last 20 years. Contact us today, we look forward to building a relationship with you. Look for K4 at the 2020 IBA Mega Conference & Annual Convention WAYNE INTERIOR SHOT FPO ARCHITECTURE + DESIGN Wayne Bank & Trust - Cambridge City, IN

20 NOVEMBER / DECEMBER 2019 GR SUMMIT Interim Study Committee Meetings Winding down for 2019 Dax Denton Senior Vice PresidentGovernment Relations Indiana Bankers Association ddenton@indianabankers.org @ibagovrelations Eric J. Augustus Vice President-Government Relations Indiana Bankers Association eaugustus@indianabankers.org The fall season brings to an end the annual interim study committee process that convenes every summer. The interim study committee process is critical for issues that the legislature might consider in the upcoming session. By assigning issue topics to interim study committees, the legislature gets a head start on considering potential changes in law in order to be better prepared to tackle important issues when session starts in January. There are dozens of interim study committees that could be charged with studying a variety of topics each summer. Through the course of summer meetings, these committees identify changes to the law that they deem appropriate through the committee deliberations. Each committee that convenes may choose to put forth a recommendation from the committee to the Indiana General Assembly, suggesting specific policy changes to be considered during the legislative session. A recommendation is generated only if a majority of the members of the interim committee vote to approve it. This past summer the IBA government relations team kept busy tracking multiple topics important to the banking industry. The Probate Code Study Commission considered a couple of legislative topics that would impact banks. The first, and most concerning, is a forced foreclosure proposal that would mandate that a mortgage holder file a mortgage foreclosure if requested by the heir of an estate, even if there is no delinquency in question. Such a statute would conflict with existing state and federal statutes, is unnecessary, unfairly harms the lender and would potentially violate the contract impairment clauses of the Indiana Constitution. The Indiana Bankers Association voiced concerns with this approach throughout the interim committee process. We also asked that the forced foreclosure language not be included in the committee’s recommendation. (As of this writing, there is still one more meeting of the Probate Code Study Commission, during which the commission will release its list of recommendations and take a vote on whether to approve those recommendations to be shared with the full Indiana General Assembly.) Another topic of note being considered by the Probate Code Study Commission is cleanup language to the legacy trust bill that passed earlier this year, SEA 265. Your IBA Government Relations Team worked to ensure that the technical changes being proposed will not alter the overall creditor safeguards that we advocated for in SEA 265, nor hinder the way legacy trusts can be used in accordance with that law. HEA 1136, which passed during this past year’s legislative session, included language asking the Indiana General Assembly to review the topic of the Uniform Consumer Credit Code during the interim. As a result, the Interim Study Committee on Financial Institutions and Insurance was assigned the topic, and the committee conducted a hearing on the UCCC on Aug. 15. In anticipation of this conversation, the IBA assembled an advisory panel of bankers to provide feedback on the UCCC related to how it impacted the industry, and how it limited banks’ ability to lend to customers. Using feedback provided by the advisory panel, the IBA testified at the hearing about issues with the UCCC. Among the IBA recommendations were: consolidating mortgage lending provisions (HELOCs) under the existing statute that governs first-lien mortgages, and simplifying the UCCC provisions related to refunding interest and fees when a loan is paid off early. The committee included four of the five IBA-suggested changes to the UCCC in its final report,

Hoosier Banker 21 and in late September it voted in support of the report. Finally, the Interim Study Committee on Corrections and Criminal Code met on Oct. 8 to discuss a proposal to consolidate Indiana’s fraud statutes, including those that pertain to crimes involving financial institutions. The IBA worked with the author of the preliminary draft, Sen. Mike Young, to address any issues and inconsistencies with the newly merged format. In doing so, the IBA also identified existing language in need of updating and is currently working with committee members to address the problems. The 2019 season of legislative interim study committees has been a busy one, with 45 topics assigned to the various interim committees for discussion and possible recommendation for further legislative action. With adopted proposals from interim committees often being the blueprint for To experience our commitment to helping financial institutions make strong strategic decisions, contact: © 2019 Performance Trust Capital Partners LLC. The information and analysis expressed herein is for general and educational purposes only and is not intended to constitute legal, tax, securities, or a recommended course of action in any given situation. Investing involves risks, including the potential for principal loss. There is no guarantee that the strategies and services will be successful or outperform other strategies and services. Investment Banking Matt Kennedy 704.228.0557 Balance Sheet Strategy David Gobberdiel 312.521.1448 800-843-6284 | PTCP.com | info@performancetrust.com policy for the coming legislative session, it is important that we engage in discussion of topics that impact banking. Due to several proposals notable to the industry being brought forward by various committees, the IBA was active throughout the summer study committee process, which began in the summer and continued through early fall. HB The Indiana Bankers Association has rebranded its internship program as the BankLEAD Internship Program. Next year marks the second year of this program, following a successful 2019 pilot year. BankLEAD is designed to bring the best and brightest of new talent to the Indiana banking community. The program is managed by the IBA, which acts as the liaison between Indiana colleges and universities (providers of students/interns) and Indiana banks (provider of jobs/internships). Additionally, BankLEAD provides members with guidance on how to ensure a productive experience for both the intern and the bank. Currently the IBA is collecting input from member banks interested in bringing interns to their institutions next summer. To explore internship possibilities, please contact Eric Augustus at eaugustus@indianabankers.org by Dec. 15. To learn more about BankLEAD, click on the logo above in HB Digital or visit: indianabankers.org/banklead-internshipprogram. HB BankLEAD Internship Program Rebranded

22 NOVEMBER / DECEMBER 2019 Bigger and better than ever FLD FOCUS

Hoosier Banker 23 The Indiana Bankers Association Future Leadership Division recently held its signature event, the FLD Leadership Conference. This conference, held in late fall in past years, shifted to the summer in an effort to enjoy the warm summer air as well as other scheduling benefits. The timing change, combined with excellent leadership speakers, networking and roundtable discussion, resulted in the largest group ever in attendance at the conference with just over 100 emerging leaders from over 35 IBAmember banks who enjoyed two days of networking and leadership-oriented presentations. Beginning on Aug. 27 at the Hyatt Regency Indianapolis, the conference opened with Lindsay Boccardo, who has spoken at past IBA events. She shared tremendous insight into today’s work environment, and why it is vital that leaders take time for self-care to avoid burnout. After Boccardo’s keynote, attendees were treated to an enjoyable networking lunch to get to know new contacts or catch up with past friends. The group then had the opportunity to learn from Jeff Hudock of nCino as he presented his ideas on five phases of design thinking, and how bankers can use them to create a better banking experience for their customers. Next up on the agenda was a special highlight for this year’s conference and one of the reasons the conference was moved to the summer. August is traditionally a district work period for members of Congress. As the FLD grows in membership, a goal of the IBA is to also increase FLD members’ presence in the grassroots advocacy arena. We were delighted this year to have Rep. Trey Hollingsworth, who serves Indiana’s 9th congressional district and is a member of the U.S. House Committee on Financial Services, speak to the FLD attendees. His passion and enthusiasm for serving the people of Indiana is exceptional, and he shared great insight on the banking industry’s role in local communities, and why emerging leaders need to be involved to make their voices heard in legislative matters. Speed roundtables were held next and were a great conversation starter for all involved. Attendees broke up into groups of approximately eight people and were given a choice of topics to discuss. After 20 minutes of peer-to-peer exchange, groups split up, and everyone joined a new group of eight people to discuss other topics. After three rounds of discussions and a variety of topics, group members were able to learn from each other and share ideas with their peers, which everyone benefits from. The grand finale for the first day of the conference brought attendees to a night at the ballpark as they traveled a few blocks away to watch the Indianapolis Indians face the Toledo Mudhens at Victory Field. Rain had finally passed through the area earlier in the afternoon and made way for a perfect summer night. While the local team didn’t win, the night was still a home run, and a great time was had by all. The second day, Aug. 28, began with breakfast and a thought-provoking presentation from Donna Flynn on the art and science of peopling. Her presentation focused on the defensive nature found in ourselves and our coworkers, and how to best deal with those issues in the workplace. Robby Slaughter followed with a presentation on email and offered new ideas on how to manage this form of communication. Emails are a form of work that never stops, and it was intriguing to learn new strategies to better control the constant stream of tasks that come with each email. Finally, the conference ended with the most energetic and hilarious presentation, as Judson Laipply discussed the constant state of change we face in our lives and how we are the only ones who can control how we react. His presentation, combined with his memorable dance routine, “Evolution of Dance,” which I strongly encourage you all to search for on YouTube, was the perfect, light-hearted way to cap the conference. Overall, the 2019 FLD Leadership Conference offered new highlights, exceptional leadership and professional development speakers, and extremely valuable networking time. I believe that, once again, the FLD Leadership Conference delivered on its mission to help develop and connect the banking industry’s emerging leaders. HB Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indianabankers.org @joshmyersIN

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