HB HOOSIER BANKER MAGAZINE indianabankers.org Lucas White Focused on the future PLUS! 2019 Banking on Women Conference JANUARY / FEBRUARY 2020
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Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the annual IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, rlasley@indianabankers.org. This prestigious distinction, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who have left their mark in Banking Community Service Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. Now through April 30, 2020, the Indiana Bankers Association is accepting nominations for the 2020 CLASS of the IBA Leaders in Banking Excellence.
HOOSIER BANKER MAGAZINE indianabankers.org DIRECTORS & STAFF IBA BOARD OF DIRECTORS Officers Lucas White, Chairman ....................................................The Fountain Trust Company, Covington Michael S. Zahn, First Vice Chairman ..................................First Federal Savings Bank, Huntington Garry D. Kleer, Second Vice Chairman ...........................................................First Bank Richmond Andrew J. Briggs, Immediate Past Chairman .........Farmers & Merchants State Bank, Archbold, Ohio Amber R. Van Til, President and CEO .............................Indiana Bankers Association, Indianapolis Constituent Directors Michael K. Bauer, ABA Membership Council ......................................WesBanco Bank, New Albany Michael H. Head, ICBA State Director ...................................First Federal Savings Bank, Evansville Tim Massey, Non-Indiana Headquartered Bank Director .....................BMO Harris Bank, Indianapolis Melodie K. Yarnell, Future Leadership Division President .................Jackson County Bank, Seymour Regional and At-Large Directors Benjamin J. Bochnowski, North Region .....................................................Peoples Bank, Munster Joseph D. Carlson, North Region ...........................................Community State Bank, Royal Center Arden L. Cramer, At-Large ....................................................................Logansport Savings Bank Jeffrey W. Gump, North Region ............................................Farmers and Merchants Bank, Laotto Gregory Inman, South Region ........................................Scottsburg Building and Loan Association John M. Kennedy, South Region ....................................................... Greenfield Banking Company Michael C. Rechin, At-Large ............................................................First Merchants Bank, Muncie Jamie R. Shinabarger, South Region .........................Springs Valley Bank & Trust Company, Jasper IBA FUTURE LEADERSHIP DIVISION ADVISORY BOARD Melodie K. Yarnell, President .......................................................Jackson County Bank, Seymour Emily Boardman, Vice President ...........................................................Crossroads Bank, Wabash Greg Barnes Jr. ...................................................................................... STAR Bank, Fort Wayne 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 Gavin Fisher ............................................................... Community First Bank of Indiana, Kokomo Brock C. Goggins .......................................................................German American Bank, Jasper Kyle Goodwin .............................................................................................. DeMotte State Bank Ryan Hart ...............................................................................................Lake City Bank, Warsaw Amanda Morris-Feldman ...................................................First Federal Savings Bank, Rochester Zach Hockersmith ..................................................Hoosier Heartland State Bank, Crawfordsville Jon-Myckle D. Price ...................................................Security Federal Savings Bank, Logansport Crystal Taylor-Baker.......................................................................Old National Bank, Evansville Billy Winter ..................................................................................Bippus State Bank, Huntington IBA STAFF Amber R. Van Til ........................................................................................... President and CEO Paul W. Freeman, CAE .......................................................................... Executive Vice President Rod Lasley ............................................ Executive Vice President-Operations & Member Services Dax Denton ............................................................Senior Vice President - Government Relations Eric J. Augustus ...............................................................Vice President - Government Relations Christina M. Bennett, CMP ....................................................Vice President - Meetings & Events Laurie A. Rees ...................................................................Vice President - Education & Training Laura Wilson ........................................................................... Vice President - Communications Josh Myers ........................................................Assistant Vice President - Member Engagement Emily Brooks ..............................................................................Member Engagement Specialist Lizzie Ketzenberger .............................................Executive & Government Relations Coordinator Susan Clark ......................................................................Events & Products/Services Assistant Marcy Borden..............................................................................Education Meeting Coordinator Elizabeth DeHaven ......................................................................Education Meeting Coordinator Timothy Fry .....................................................................................................Staff Accountant Tracy Kubly ................................................................................................Technology Manager Wendy Colin ......................................................................................... Administrative Assistant 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. Publisher: Amber R. Van Til Editor: Laura Wilson Advertising: Rod Lasley Printer: The Westcott Group Inc. Submissions: HB@indianabankers.org Advertising: Media kits are available at indianabankers.org. Advertising is reserved for members and associate members of the Indiana Bankers Association. Deadlines: Editorial and ad space reservations are due the first of the month preceding publication. Subscriptions: Subscriptions are provided free of charge to members and associate members of the Indiana Bankers Association. About: The flagship publication of the Indiana Bankers Association, Hoosier Banker is distributed to all banks and thrifts headquartered in Indiana, IBA- member banks headquartered out-of-state and IBA associate 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 and on the IBA website is the property of the IBA. Contact IBA Email IBA staff using first name initial and last name, plus “@indianabankers.org” – example: jdoe@indianabankers.org Indiana Bankers Association 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 Vol. 104 No. 1
Hoosier Banker 5 CONTENTS 10 COVER STORY Lucas White: Focused on the Future 16 ARTICLE SPOTLIGHT 2019 Banking on Women Conference Laurie A. Rees, IBA FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Lucas White, The Fountain Trust Company 9 IBA Calendar of Events 24 Community Banking in 2020 Jeffrey C. Gerrish, Gerrish Smith Tuck Consultants LLC GR SUMMIT 20 Indiana General Assembly 2020 Dax Denton and Eric J. Augustus, IBA FLD FOCUS 22 FLD 2020 Josh Myers, IBA INDIANA BANK & THRIFT STOCK UPDATE 26 Stock Analysis Michael A. Renninger, Renninger & Associates LLC HUMAN RESOURCES 28 Mandatory Employment Arbitration Agreements Debra A. Mastrian, SmithAmundsen LLC PSP SHOWCASE 30 Focus on Fraud Jonathan W. Biggs, Investors Title Insurance Company PRODUCTS & SERVICES PROFILE 32 Save Time, Save Money Rod Lasley, IBA DIRECTORS / SENIOR MANAGEMENT 34 Market Conditions Jeffrey F. Caughron, The Baker Group 36 From LIBOR to SOFR Earl Charneske, PCBB 38 Upside-Down Thinking on Efficiency David Carlson, Haberfeld COMPLIANCE CONNECTION 40 NSF Fees Brett J. Ashton, Krieg DeVault LLP AG BANKING 44 A Look Ahead at Ag Banking Brady Brewer and Jason R. Henderson, Purdue University CLOSING NOTE 54 The New IBA Website Emily Brooks, IBA DEPARTMENTS 15 Anniversary Milestones 25 Staff Celebration 29 From the Board Room 33 IBA ‘High Five’ 35 Banking on Community 37 C2C Video 39 In Memory of 42 Honorable Mentions 46 Associate Members’ Corner 48 Bankers on the Move 53 Advertisers Index “Banks are the lifeblood of communities.” 10 IMAGINE. BELIEVE. THE NEXT BEST VERSION OF YOU. ACHIEVE. 16 202022 In This Issue
6 JANUARY / FEBRUARY 2020 The year 2020 has an especially nice ring to it – grounded yet futuristic. For the Indiana Bankers Association, this year means entering the final phase of our 2018-20 strategic plan. We’ve made great strides at this two-thirds mark on the plan timeline. In the plan pillar of Tell the Story, we’ve introduced four new awards for banks and individuals, each designed to tell the story of banking. Two of those awards were presented in November, as detailed on page 18 in our spotlight article about the Banking on Women Conference. Congratulations to Kathy A. Schoettlin, Old National Bank, Evansville, honored as 2019 Woman of the Year, and Evelyn Rivas, German American Bank, Jasper, named 2019 Woman on the Rise. We’ve also been successful with our C2C “Commitment to Community” campaign, showcasing bank community service through videos and a C2C award. Visit indianabankers.org/commitment-community on our all-new website to see videos that tell the story of bank community service. Please let us know if you have videos to share or would like video assistance in telling your stories. Videos are one portion of the C2C Campaign; C2C awards make up the other part. Last May we gave the inaugural C2C award to The Farmers Bank, Frankfort, at the IBA Mega Conference. I’m happy to report that this May we’ll be giving out two awards, based on different asset sizes. Please submit your nomination by Jan. 31; details at indianabankers.org/commitment-community. For our second plan pillar of Fiscal Strength, we have completed a fiscal policy manual to formalize IBA’s approach to investments and reserves. All the while, we continue to steward income and expenses with care so that we can keep member dues among the lowest in the nation. Regarding Education – the third pillar of the strategic plan – we’ve not only been offering more programming in terms of quantity, but we continuously monitor, evaluate and refine our educational offerings to bring you the best of quality. We want to ensure that you receive a healthy return on investment when you enroll your associates in IBA programming. Government Relations, our fourth pillar, is active with a variety of offerings designed to help pave the way to banker engagement. Grassroots advocacy is extremely effective, and our Ambassador of Strategic Advocacy and key contact banker programs provide the tools to help bankers reach out to elected officials about industry topics. The final pillar of the IBA strategic plan, Next-Gen Bankers, has made dramatic strides. The purpose of this goal is to keep the industry strong by bringing in new talent. You’ll notice on our new website that we’ve added a “Next-Gen Bankers” channel devoted entirely to this topic. Amber R. Van Til President and CEO Indiana Bankers Association avantil@indianabankers.org @grbanker VANTAGE VIEWPOINT Legislative Briefing & Reception Jan. 15 Meet face-to-face with Indiana lawmakers to discuss issues of the day. FLD Day at the Statehouse Feb. 10 Future Leadership Division participants learn about and engage in grassroots advocacy. Leadership Development Program March 24-26 This program helps the next generation of bank leaders reach full potential. Don’t Miss Out! Visit the channel at indianabankers.org/next-gen to access videos about banking as a career and to learn about BankLEAD, IBA’s internship program; BankTalentHQ, an online resource for attracting talent to banking; and the Future Leadership Division, a platform of 300+ emerging bank leaders. The Next-Gen Bankers pillar also has seen much success in the creation of a banking concentration at a university in Indiana and in the implementation of scholarships. Our new scholarships, highlighted on page 23 in the FLD Focus article in this issue, encourage participation in the rigorous Leadership Development Program and the always-important IBA Annual Washington Trip. We’re proud of how far we’ve come, but we’re not done yet. We’ll continue to work hard on your behalf as we go down the final stretch of the three-year plan. Most importantly, I want to thank you, our dedicated members. None of this progress would be possible without your support. We’re also extremely proud of our new website which resulted from months of IBA teamwork, ably led by Josh Myers and Tracy Kubly. Read more on page 54, and visit indianabankers.org to enjoy the new site. Finally, it’s my pleasure to share with you that IBA has promoted Rod Lasley to executive vice president-operations & member services. It’s a long title, but it takes a long title to try to capture all that Rod does for us. As a former bank CEO, he understands very well what our members’ needs are. And as an adept strategist, Rod has insight into making sure the IBA is on the right path to meeting those needs. You can read more about Rod on page 46. HB
Hoosier Banker 7 I would like to start my year as chairman by thanking Andrew Briggs and his wife, Rhonda, for being such good friends. My wife, Sue, and I have enjoyed getting to know Andrew and Rhonda over the years by traveling to Washington D.C. together on the Indiana Bankers Association Annual Washington Trip. Andrew has not only been a great chairman this past year, he has been a great mentor. I have learned much from him, and we have had a lot of good times together, so thanks again to my friend Andrew. A couple of weeks after the IBA Annual Convention, I started visiting banks around the state. As of this writing, I have visited about 25. I started in Clarksville with Larry Myers,* since he was the last (probably only) chairman to visit every bank. Since then I have been all over the state, but I still have a lot of distance to cover. I have been amazed by the wonderful receptions and visits so far. Everybody has been extremely welcoming and willing to talk not only about the Association, but also about their banks. I try to post pictures on Twitter as I travel the state, so people can follow along with my travels (@LucasNWhite). Everyone knows there are big banks and small banks in Indiana, but the diversity of our banks is much greater than size alone. I have met with banks of all sizes. Some are publicly traded. Some are family-owned. The number of employees has ranged from 800+ all the way down to five. I expected those differences. What I did not expect was how we all have a different plan to succeed based on our philosophy, time horizon, ownership and communities. Some banks are content with their current size and situation. Other banks are trying to grow. Some banks are pursuing growth through acquisitions. Other banks prefer de novo branches over acquisitions. Of those banks with a branching strategy, some branch into large metropolitan areas, and yet others target medium-sized towns or even small towns from which larger banks have withdrawn. Everyone has a different strategy, and they all make sense given the individual bank’s philosophy and goals. We are lucky in the United States to have a community banking model. No other country in the world has as many banks as we do, and as I travel around the state it is clear that our communities benefit from our banking model. Our small towns with banks are much more vibrant than those without banks. If we had a different banking model, it would be our small communities and pioneering spirit that would suffer. It is also clear from my visits that the IBA is held in high regard, and that every bank finds value in it. Whether it is the education, government relations, Preferred Service Providers or networking opLucas White Chairman Indiana Bankers Association President The Fountain Trust Company, Covington @LucasNWhite CHAIRMAN’S REPORT NOTABLE QUOTES Bank Community Service on Twitter Home Bank • @HomeBank_1890 • Nov. 25 Huge “thank you” to all of our customers who opened their accounts in Plainfield between September 14th and October 21st - you raised $1,000 for Family Promise of Hendricks County. #gathergrowgive #makinglivesbetter Stock Yards Bank • @sybsince1904 • Nov. 13 The Indianapolis Sales Team recently presented The Salvation Army with a donation for their Angel Tree Initiative. With this donation, several children will be provided with gifts to help make the holidays a special time. Many thanks to those who made this possible! MutualBank • @MutualBank • Nov. 7 During the month of November, each of our Financial Centers will be collecting non-perishable food items for local food banks. Want to help? Donations can be dropped off at any of our Financial Centers. For a complete listing, please visit: bankwithmutual.com German American Bank • @_GermanAmerican • Nov. 5 German American Bank presented a check for $75,000 to Tri-County YMCA’s Reimagine Your Y Capital Campaign today. These funds will have a direct impact on the facility and programming expansion the Tri-County YMCA plans to complete mid year of 2020. Security Federal Savings Bank • @sfsbank • Nov. 4 We have several morning appointments available for our November 14th blood drive. Will you be a lifesaver? Please sign up to give blood if you are eligible. Follow IBA Twitter @indianabankers Twitter portunities, every bank I have met with finds value in the Association. The high quality of our staff has also been a recurring comment during my visits. On the Association front, our Government Relations Team has been busy preparing for the 2020 legislative session by working throughout the General Assembly interim committee process in August, September and October. The IBA GR Team continues to address reforming and modernizing the Uniform Consumer Credit Code. In addition, our team has been working on policy matters related to estate law, foreclosure process, elder financial exploitation protection, and problems related to the telephone solicitation registration and credit rating reporting. The upcoming short session will undoubtedly bring about new issues for the IBA to use our voice, and I hope you’ll be involved in advocacy. One of the topics I enjoy chatting about during bank visits is the importance of grassroots connection with elected officials. Please let 2020 be the year that you explore grassroots advocacy, if you haven’t in the past. Or if you’re already part of IBA’s robust government relations, thank you for the part you’ve played in helping us to keep our industry strong and vibrant. HB * Larry W. Myers, president and CEO of First Savings Bank, Clarksville, visited every IBA-member bank headquartered in Indiana during his tenure as 2015 IBA chairman.
8 JANUARY / FEBRUARY 2020 Educating Professionals, Creating Leaders GSB.org NEARLY $300,000 IN SCHOLARSHIPS AVAILABLE ANNUALLY OPPORTUNITY AWAITS AT GSB Sponsored by: The Indiana Bankers Association is pleased to offer scholarship opportunities to its member bankers through the Herbert V. Prochnow Educational Foundation, a supporting organization to the Graduate School of Banking at the University of Wisconsin – Madison. Scholarships are distributed through the IBA for the Graduate School of Banking and the GSB Human Resource Management School.
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 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 Legislative Briefing and Reception Jan. 15 • Hyatt Regency Indianapolis 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 Future Leadership Division Day at the Statehouse Feb. 10 • Hilton Indianapolis Hotel & Suites CBC Series – Session 1 Feb. 11 • IBA Center Feb. 12 • IBA Center Feb. 13 • Indiana Wesleyan University • Fort Wayne Risk Management Forum Feb. 18 • IBA Center Consumer Loan Documentation Feb. 19 • IBA Center Commercial Loan Documentation Feb. 20 • 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 and 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, IN Consumer Lending School April 7-8 • IBA Center Branch Management - Session 2 April 14 • IBA Center Banking Essentials - Session 1 April 15 • IBA Center Universal Banker April 16-17 • IBA Center Digital and Social Strategy Bootcamp April 21 • IBA Center Auditing Mortgage Loans April 28 • IBA Center CBC Series - Session 2 May 5 • IBA Center May 6 • IBA Center May 7 • Indiana Wesleyan University • Fort Wayne Mega Conference May 12-14 • Indiana Convention Center • Indianapolis Leadership Development Program – Session 2: Do Something That Scares You May 19-21 • Abe Martin Lodge • Nashville, IN Commercial Lending School June 1-5 • IBA Center HMDA Seminar June 9 • IBA Center Real Estate Lending Compliance June 10 • IBA Center Annual Washington Trip July 26-28 • Washington, D.C. FLD Leadership Conference Aug. 27-28 • The Westin Indianapolis Annual Convention Sept. 13-15 • French Lick Resort
10 JANUARY / FEBRUARY 2020 COVER STORY Lucas White Focused on the future Lucas White, 2020 chairman of the Indiana Bankers Association, has set high goals for his leadership tenure. In addition to overseeing the final year of IBA’s ambitious three-year strategic plan, he intends to visit every member bank headquartered in Indiana. One other IBA chairman in recent history set out to visit every Indiana bank. Larry W. Myers, president and CEO of First Savings Bank, Clarksville, accomplished the feat in 2015. White, who serves as president of The Fountain Trust Company, Covington, will be adding his own touch to bank visits by traveling to some of the calls by motorcycle. White’s history with the Indiana banking community stretches back four generations. His great-grandfather, William N. White, purchased shares in The Fountain Trust Company a few years after the Great Depression. By 1940 he became president of the bank and continued in that role for 25 years, until he passed away at age 90. Since then, all of the presidents of The Fountain Trust Company have been descendants of William White: Luke White, Kip White and now Lucas White. Each also have been lawyers, operating the firm of White & White Attorneys LLP, which adjoins the bank. Another family legacy is repeated in Lucas White’s being elected chairman of the IBA. His father Kip served in the top volunteer leadership position of the former Independent Bankers Association of Indiana during the negotiation and passage of the Banking Structure Reform Act of 1985. Kip White is now chairman and CEO of The Fountain Trust Company. Campbell White, Lucas’ brother, serves the bank as executive vice president. Lucas White joined The Fountain Trust Company in 1994 as a part-time teller and was promoted to president in 2016. He is a director of the Independent Community Bankers of America, chairman of the ICBA Bank Services Committee and past chairman of the ICBA Safety and Soundness Committee. White was honored as a Rising Star in Banking by the ICBA in 2012 and with the same title by BankBeat magazine in 2015. In addition to having served on the IBA board during his FLD presidency, White has served the board as first vice chairman and second vice chairman. He earned a bachelor’s degree from Indiana University, a JD from the IU Maurer School of Law at Bloomington as Order of the Coif, and he has completed the Graduate School of Banking at the University of Wisconsin. White and his wife Sue, a magistrate, have three sons: Lyric, 7; Oliver, 6; and Graham, 1. Both parents are proficient in Italian and have traveled extensively, including a trip to Europe last summer with their children. Hoosier Banker interviewed White at his office in Covington.
Hoosier Banker 11 PHOTO CAPTION: Lucas White was inaugurated as 2020 IBA chairman at the Annual Convention last fall. You are deeply involved with both the IBA and the ICBA. How do you balance association time with work duties and your busy home life? “The work side is actually easier than the home life. We have a very good management team at the bank, including my father and brother. When I leave, the bank keeps running. “Everybody is fairly used to me being gone on a somewhat regular basis, and they can always call or email me to get in touch. So the work side is really not bad. “Home life with three kids is the harder part, so I try to limit the time away from home as much as I can. If I have a trip, Sue and I talk about the dates and work out details. “I couldn’t do it without Sue. She takes care of things on the homefront when I’m gone and always steps up when I have to be out of town. She supports my involvement and takes care of the kids and house while I’m away. “Invariably someone will get sick while I’m gone, or something will break, but Sue handles it. I was thinking about it recently, because I was on a plane to D.C. for an ICBA trip to meet with the Federal Reserve, and she was on her own for two days.” What do you plan to accomplish as 2020 chairman of the IBA? “I want to visit all the bankers, like Larry Myers did when he was chairman. Five years ago, he visited every bank in the state. The members appreciated having the chairman come see them. I hope to make the members who are not very involved with the Association feel closer to it and to encourage them to get more involved. I also want to hear everyone’s opinion of how the Association is doing.
12 JANUARY / FEBRUARY 2020 Continued on page 14. Lucas White (left) and his father Kip White pose with photos of past presidents of The Fountain Trust Company, on display in the bank lobby. “On the personal side, there are still some bankers across the state that I’ve never met or don’t know well. It’s a good opportunity for me to get to know them. “I’ve talked to Sue about it and mapped out how many days it will take. Since we have the kids at home, my plan is to be gone from home as little as possible and basically fit the visits into workdays whenever possible.” The current IBA strategic plan emphasizes ‘Next-Gen Bankers.’ How can banks attract and retain talent? “There are several parts to this. It’s certainly harder for small banks in rural areas like ours. Most people in Covington who go on to college move away. Small towns have a hard time attracting young people. “We’ve actually had some success recently getting a couple of young promising people, and two things helped us do that. The first is to be a vibrant place to work, with a plan to succeed and grow. Then share what the plan is, where you want to go, and how you want to get there. “The second thing to do is to accept that younger people have different expectations, as far as what it’s like to come to work every day, how quickly they can move up, what the benefits are and the work-life balance. “Young people don’t want to work 60 hours a week. They have hobbies and outside interests. The ability to adapt to that expectation will help attract people. Things don’t have to be the way they always were.” IBA’s strategic plan also has a ‘Tell the Story’ initiative. What is the story of banking? “The traditional story is that we help people buy homes and cars. They come to get a loan, and we help make it happen. That story has been told for years. “The bigger story is how much community banks help their local communities. When the town needs something, or the school needs something, or when a group in town needs something, they can come to the bank, and we help them out. We can’t help everybody, but we help people out generally. “One example is the park playground that we helped fund in Covington. It had rusty old equipment and nobody was using it. So a group of mothers decided it was time to redo the playground. “It took them three years of fundraising. They got a state grant for a couple hundred thousand, and the rest were donations from the community and businesses. “Our bank gave $50,000 to that project. If we weren’t a local bank here in Covington, we wouldn’t have done that. That’s the story of community banks. “Where there is a bank in town, the town is still vibrant. Where there is no bank in town, the town ultimately dies. Banks are the lifeblood of communities. “That is our competitive advantage. We are local, we are here, and we’re tied to the communities.” How did your family become involved with banking? “My great-grandfather and greatgrandmother started out as farmers. The family story is that my great-grandmother was out slopping the hogs one day and spilled some slop down her boot. She said, ‘That’s the last hog I’m ever going to slop.’ “The next day she went to Indianapolis and enrolled my great-grandfather in law school. Apparently back then you didn’t have to take the LSAT or entrance exams. You could just go enroll. A paneled room upstairs at The Fountain Trust Company serves as a quiet place for management team meetings.
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14 JANUARY / FEBRUARY 2020 “So he became a lawyer. Then, during the Depression, the local attorneys were the ones that helped close down the banks that failed. My great-grandfather closed down a number of banks and figured out that banking is not that complicated – you just can’t make bad loans. “He started buying bank stock and got control of The Fountain Trust Company. The family has been in control of the bank ever since.” What are the pros and cons of being in a family business? “The pro is you get to work with family. The con is you get to work with family. “With family, one advantage is that you can have frank discussions. You can voice your opinion a little more strongly and bluntly, without too much concern for being fired. “If it’s not a family business, you can’t always tell the chairman what you’re really thinking. In our case, Campbell and I can tell Dad our honest opinions and have open discussions. “Also, when your family owns more than half the stock, business priorities are different. Our family wants to be profitable, but we don’t want to risk the bank. If you have mostly outside shareholders who are Lucas White and his brother attended banking events throughout childhood. Shown from left in this undated photo are Campbell, Jayne, Lucas and Kip White, meeting with horse racing representatives at a convention. simply looking for the best return, things can go sideways. “The downside of working with family is that it never stops. We talk business constantly. At my son’s first birthday party, business came up. At Thanksgiving, it came up again. “That’s the disadvantage. You lose some of the family focus, as the business relationship comes into play.” What was your first job at The Fountain Trust Company? “I started as a teller in the drive-up at the age of 14, working every day after school. School got out at 3:15, then I’d come to the drive-up and work until it closed. “It closed at six o’clock most days, and on Thursdays and Fridays it closed at seven. On Saturdays we were open from about 8 a.m. to noon. “Then someone would have to come pick me up, because I couldn’t drive. We lived six miles outside of town. “I earned minimum wage – I think it was $4.25 an hour – for the first three years. If I remember right, minimum wage went up a quarter every year, and I would get a raise of a quarter about a month before minimum wage went up. The raises happened to coincide with minimum wage.” What is your first IBA memory? “As kids, Campbell and I always went to the conventions with our parents, though I honestly can’t say whether they were IBA or ICBA events. I remember going as a little kid, and Dad would introduce me to people. “I have no idea where it was, but I remember being on a bus, and Dad introduced me to a banker from Lowell, Indiana. I don’t remember the banker’s name, but that’s my first memory. I was about six. “My more recent ‘first’ memory is working at the silent auction at French Lick the first year that I went to the IBA Annual Convention as an actual banker, not just a kid tagging along. That was probably in 2009.” You are both a lawyer and a banker. How do those disciplines support each other? “A lot of the law practice that I’ve done has been in the courtroom, speaking in court. That has helped me with public speaking and being able to put together a coherent sentence. “It’s helpful not only when dealing with customers, but also for activities with the Association and going to D.C. It helps to be able to speak concisely and coherently. “For about eight years I was a public
Hoosier Banker 15 Lucas White, president of The Fountain Trust Company, Covington, is showcased in this video profile. White serves the Indiana Bankers Association as 2020 chairman. To view the video, click on the icon in HB Digital. Video Bonus Brenda Culp, customer service representative, Logansport Savings Bank, has completed 30 years of service with the bank. Jeff Jones, senior vice president/ag officer, Logansport Savings Bank, has completed 20 years of service with the bank. He began his banking career in 1987 with The First National Bank of Logansport, now PNC Bank, NA, after prior employment with Farm Credit Services. Jones is active with the Logansport and Cass County Kiwanis Club of Logansport, the PurdueCass County Extension board and the Purdue Christian Campus House. He is a graduate of Purdue University. Tracey Remley, loan operations supervisor, Logansport Savings Bank, has completed 20 years of service. She attended Ivy Tech Community College. ANNIVERSARY MILESTONES A salute to bankers with 20+ years of service Madeline Tocco, parttime receptionist at Logansport Savings Bank, has completed 20 years of service with the bank. She has 52 years of total banking experience. Prior to her banking career, she served for 10 years in the Cass County Courthouse, 10 years with the Cass County Abstract Co. Inc. and five years in a real estate office. Becky Shank, senior customer service representative, First Bank Richmond, has completed 25 years of service with the bank. Brandy Lakes, secretarial department supervisor/ human resource assistant, First Bank Richmond, has completed 20 years of service with the bank. She is a graduate of International Business College. HB defender. Issues in the cases were fairly complex, and I had to simplify it so that my clients could understand. That’s useful in banking, as well, because a lot of customers really don’t understand how banking works. “The other advantage from law practice is that as you are doing things in the bank, the law side is always in the background. You know what you can and can’t do, or should and shouldn’t do.” In a past Hoosier Banker interview, you said your motto is, ‘Work hard, play hard.’ What do you mean by that? “When I play, I tend to play hard. I’ve been accused of doing everything as hard as I can. “I enjoy long-distance motorcycle trips, though those are happening less now that we have three kids. I also started running a few years ago and have done a few marathons. “Running, motorcycle trips and bicycling are my three big hobbies. Every now and then I’ll go to an IBA meeting on a motorcycle. “I have gone to court on my motorcycle, but it’s a little tough to ride it in a suit and still look decent by the time you get there. When I visit with bankers this year, though, I plan to sometimes go on casual days and ride a motorcycle.” If you weren’t a banker/lawyer, what would you be? “If I weren’t a banker, probably I’d be unemployed. I’m not sure I would be qualified to do anything else. Ever since I was a kid, I knew I wanted to come to the bank, and being a lawyer is just what the family did, so I’ve literally never done anything else. “At one time I thought it would be interesting to be a bicycle mechanic. I can’t work on my own bike, but I always thought it would be fun. “And I’ve always wondered about being a high school teacher, just because kids have a lot of energy. I would teach something in the liberal arts, probably English. “I was always better at math and science, but I majored in philosophy in college.” HB
16 JANUARY / FEBRUARY 2020 ARTICLE SPOTLIGHT IMAGINE. BELIEVE. THE NEXT BEST VERSION OF YOU. ACHIEVE.
Hoosier Banker 17 2019 Banking on Women Conference Achieving the ‘next best version of you’ The Indiana Bankers Association continued with its successful hosting of the 2019 Banking on Women Conference. The event, held Nov. 20-21 at the Indianapolis Marriott North, surpassed prior-year attendance, with 398 women coming together for professional development, networking and inspiration. Attendees gathered mid-day on Tuesday, Nov. 20, for registration, then delved into an afternoon packed with powerhouse presentations. Shane Pilarski, chair of the conference planning committee and president/CEO of Alliance Bank, Francesville, welcomed guests and offered opening remarks on the uplifting spirit of the Banking on Women Conference. Afternoon sessions began with a thought-provoking presentation by emcee Juli Lynch, Ph.D., a perennial favorite from the previous two conferences and the IBA Leadership Development Program. In “The Seven Aspects of Personal and Professional Transformation,” Lynch shared insights on transforming lives to achieve balance, harmony and alignment to achieve “the next best version of you.” Ensuing presentations were “Fearless: Advancing Your Career as a Financial Professional” presented by Jennifer Sanders, BKD CPAs & Advisors, and “The Brilliance of Resilience: Beating Burnout When Work Gets Overwhelming” presented by Jacy Imilkowski, University of Wisconsin, Madison. Wednesday rounded out with a lively reception featuring interactive food and beverage stations. Throughout the reception, attendees visited with service providers in the IBA exhibit area. The number of exhibitors surpassed the prior year with 23 booths. New this year to the exhibit area was the availability of a professional photographer, sponsored by the Indiana University Kelley School of Business. Stephanie Nicole Photography provided headshots for attendees to update their social media brand and workplace websites. Another addition to the exhibit area was a fun photo booth sponsored by IT Resource Inc. Filled with silly hats, feather boas and humorous catch phrases, the booth provided a lighthearted means to bond with fellow bankers. The reception also gave guests an opportunity to bid on a treasure trove of items at a silent auction benefiting Ascent 121, a faith-based agency that provides longterm trauma recovery services for teen survivors of sex trafficking, along with an entire continuum of care. Named after Psalm 121, Ascent 121 has served over 200 survivors in Indiana since its establishment in 2013. After the reception, fellowship extended into the evening, as attendees sampled a variety of dine-arounds at local restaurants, where each attendee enjoyed a fine meal and good company with other attendees from the conference. Thursday, Nov. 21, began bright and early with riseand-shine yoga. A continental breakfast in the exhibit area followed, after which commenced a full day of learning, networking, engaging, connecting and empowering. Presentations included: “Chasing the Bright Side: Why Optimism Is the Secret Ingredient to Success” presented by Jess Ekstrom, Headbands of Hope; “Smart Women, Smart Money” by Suzie Jones, Training Resources Consulting LLC; “Developing the Potential of Women” by Vicki Floyd Clark, Building the Capacity of Organizations; and “Maximizing Your Personal Brand Using Social Media” by Kristin Sundin Brandt, Sundin Associates. Thursday’s luncheon also provided a new element to the conference – the inaugural IBA Woman on the Rise Award. Several outstanding women were nominated by their peers for this award, designed to celebrate a woman age 40 or younger who is making a significant impact in her industry and community. Laurie A. Rees Vice President-Education & Training Indiana Bankers Association lrees@indianabankers.org @Laurie1107
20 JANUARY / FEBRUARY 2020 GR SUMMIT Indiana General Assembly 2020 The importance of a short session 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 2020 Indiana General Assembly session pace is brisk, at times bordering on frenetic. This year the Legislature is operating in what is affectionately referred to as a “short session,” which takes place during even calendar years. Indiana is a biennial budget state. Every other year, during odd years, fiscal leaders craft a two-year operating budget. The legislative calendar during these budget years lasts nearly twice as long as during short sessions, coming in at just under four months. The end of April is the deadline to finalize all legislative activity during odd years. Prior to 1970, these budget-year sessions were the only legislative activity that occurred in Indiana. Even-year short sessions did not exist. If an issue was identified upon the conclusion of an odd-year session or shortly thereafter, the wait was two years before the Indiana Legislature could act. Arguably, 20+ months is a long time to wait to address an issue that needs immediate attention. The Legislature resolved this dilemma by voting in 1970 to create a session for the “off years,” designed to handle unresolved issues leftover from the budget session. The short session reference is certainly appropriate based on the legislative calendar. The General Assembly has scarcely over two months to accomplish any and all legislative activity. This year’s short session is no different. The first day of the 2020 session is Jan. 6, and the end date – or sine die – is scheduled for March 14. There will be a strong push to end earlier, however, with March 11 identified as the target date. The intensity of a short session comes from the limited time lawmakers have to move bills through committee. This year the calendar shows there are just over three weeks allotted to committees before bills meet the demise of legislative deadlines. Currently, the IBA is working on two issues that arose after the passage of legislation from last year’s session. One issue focuses on a new telephone solicitation registration requirement that was inadvertently imposed on all businesses in the state of Indiana. The other issue revolves around credit inquiries, and what information is provided in the event of a mismatch of borrower information. Both issues have created challenges related to implementation. Thankfully, we have an opportunity to address these issues this year, rather than having to wait 20 months to try to implement a fix. The short session affords opportunities such as these, and many would agree that having this annual opportunity is critical to ensuring good public policy. HB
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22 JANUARY / FEBRUARY 2020 Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indianabankers.org @joshmyersIN FLD 2020 A look ahead at the new year The past year has been an outstanding year for the Indiana Bankers Association’s Future Leadership Division as the group continued its forward momentum in connecting emerging leaders within the banking industry. As we look ahead to 2020, I would like to take a moment to update membership briefly on a variety of items to look forward to in the new year. First, please note some changes taking place with the FLD Advisory Board. After several years of service, former FLD Advisory Board president Kirby Drey of Kentland Bank has concluded his service on the board. An Advisory Board member since 2009, Drey served as 2018-19 president and helped lead efforts to shape the organization into what it is today, including the structure of the board and the key strategies of the FLD. Also, Dan Maddox of Citizens State Bank, New Castle, has concluded his service on the FLD Advisory Board. Maddox served since 2014 and has been an eager participant in numerous FLD activities during his time. The IBA is thankful to both Kirby Drey and Dan Maddox for all of their contributions to the Future Leadership Division. In 2020, the FLD Advisory Board is fortunate to have Melodie Yarnell of Jackson County Bank serving as president, as well as Emily Boardman of Crossroads Bank serving as vice president. Both Yarnell and Boardman have been great ambassadors for banking, and I look forward to their leadership as we continue our growth in the future. In addition, the FLD Advisory Board welcomes three new members: Gavin Fisher, Community First Bank of Indiana, Kokomo; Kyle Goodwin, DeMotte State Bank; and Amanda Morris-Feldman, First Federal Savings Bank, Rochester. We look forward to their participation in helping to continue the momentum of the FLD. While the FLD Advisory Board has changed, the FLD’s commitment to offering networking, education and volunteer opportunities has not. We will continue to offer the same quality events to allow emerging leaders to become more connected in the banking industry. This year we are hosting the FLD Day at the Statehouse on Feb. 10, the FLD Leadership Conference Aug. 27-28, FLD networking lunches to be scheduled at a later date, and more. The IBA will continue to strengthen the bond between the FLD and the IBA Leadership Development Program by offering the FLD 2 LDP Scholarship. This scholarship, sponsored by SmithAmundsen LLC, provides one FLD member with $1,500 toward LDP registration fees for an outstanding opportunity to further leadership potential. The FLD will continue offering resources for FLD members, including FLD Spotlight Opportunities. In case you have not stumbled onto the FLD Spotlight Opportunities resource page, this is a special area of the IBA website that is dedicated to showcasing educational opportunities that are directly related to professional development and leadership growth, as well as major networking opportunities. Please visit the page on our newly updated website at: indianabankers.org/fld-spotlight-opportunities. Also, the FLD is excited to further build bridges by actively promoting banking to future generations through assisting with the IBA BankLEAD Internship Program and college banking concentrations. Both of these initiatives help to bring new talent into banking. 2020 is sure to be another great year for the FLD, as we build upon past success and continue to move forward into the future. If you are not an active member or not a member at all, consider making 2020 the year that you become more engaged and take your career to another level. HB FLD FOCUS
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