HB HOOSIER BANKER MAGAZINE indiana.bank PLUS! FLD Day at the Statehouse MAY / JUNE 2020 Banks Helping Hoosiers Caring through COVID-19
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DIRECTORS & STAFF HOOSIER BANKER MAGAZINE indiana.bank 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, Wheeling, WV Michael H. Head, ICBA State Director ...................................First Federal Savings Bank, Evansville Tim Massey, Non-Indiana Headquartered Bank Director ...........................BMO Harris Bank, Chicago 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 .....................................................................................Terre Haute Savings Bank Gavin Fisher ............................................................... Community First Bank of Indiana, Kokomo Nashelle Frazier .............................................................................Old National Bank, Evansville Brock C. Goggins .......................................................................German American Bank, Jasper Kyle Goodwin .............................................................................................. DeMotte State Bank Ryan Hart ...............................................................................................Lake City Bank, Warsaw Zach Hockersmith ..................................................Hoosier Heartland State Bank, Crawfordsville Amanda Morris-Feldman ...................................................First Federal Savings Bank, Rochester Jon-Myckle D. Price ...................................................Security Federal Savings Bank, Logansport 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 Co-Editors: Laura Wilson and Emily Brooks Advertising: Rod Lasley Design/Print: The Westcott Group Inc. Submissions: HB@indiana.bank Advertising: Media kits are available at indiana.bank. 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 “@indiana.bank” – example: jdoe@indiana.bank Indiana Bankers Association 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis IN 46240-7321 317-387-9380 Vol. 104 No. 3
Hoosier Banker 5 CONTENTS 10 COVER STORY Banks Helping Hoosiers Emily Brooks, IBA 18 ARTICLE SPOTLIGHT FLD Lends its Voice Josh Myers, 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 15 IBA Member Benefits Report 2019 20 Engaging Customers Greg Waltz, Harland Clarke 22 Banking Scam and Fraud Attempts Leo Reap, IT Resource 24 Dealing With Pandemic Disruption Bill Elliot and William J. Showalter, Young & Associates Inc. 26 Why Move to .BANK? Rod Lasley, IBA 43 CECL Deadlines Extended Rick Martin, Fiserv FINANCIAL MANAGEMENT 28 Municipal Credit Update Managing Credit Risk Dana Sparkman, The Baker Group COMPLIANCE CONNECTION 30 Loan Origination Fees Brett J. Ashton, Krieg DeVault LLP AG BANKING 32 The Farmer of Tomorrow Brady Brewer, Purdue University PRODUCTS & SERVICES PROFILE 34 Hoosier Bankers Protecting Senior Citizens Aimee Leeper, CRA Partners HUMAN RESOURCES 36 Families First Coronavirus Response Act Debra A. Mastrian, SmithAmundsen LLC INDIANA BANK & THRIFT STOCK UPDATE 38 Stock Analysis Michael A. Renninger, Renninger & Associates LLC PSP SHOWCASE 40 Electronic Lien and Title Law Rod Lasley, IBA GOVERNMENT RELATIONS 42 Indiana General Assembly Dax Denton and Eric Augustus, IBA CLOSING NOTE 54 Staff Selection Lizzie Ketzenberger, IBA DEPARTMENTS 21 Anniversary Milestone 25 Banking Center News 25 #OpenToServe Video 29 Taking It Easy 29 IBA ‘High Five’ 39 From the Board Room 39 Honorable Mentions 44 Associate Members’ Corner 46 Banking on Community 47 Bankers on the Move 53 Advertisers Index 10 18 26 In This Issue Caring Through COVID-19 IN General Assembly Adjourns Sine Die 2020
6 MAY / JUNE 2020 Our world has been rocked by seismic change. COVID-19 hit us in unprecedented ways, and some might say it was impossible to be prepared for it. Yet the banking community was prepared. Equipped with business continuity plans that include pandemic response, banks in Indiana and nationwide have continued to provide essential financial services without interruption, while remaining helpers to the communities they serve. I have had the opportunity to listen to bank leaders on peer group calls that the Indiana Bankers Association has been coordinating. Listening in on call after call, it’s been heartening to know that servant leadership is alive and well in the Indiana banking community. The caring nature of banking is evident in the ways bankers address the need for service continuity, express concern for the well-being of staff and customers, and recognize the economic plight of businesses and families. Banks are responding to the needs of their communities, and this issue of Hoosier Banker highlights some of the support provided. In addition to hosting peer calls for bank CEOs and presidents, the IBA has been facilitating calls between bank leaders and other groups such as regulators; elected officials; and banking advisers, including attorneys, CPAs and leadership from the Federal Home Loan Bank of Indianapolis. These ongoing calls give bank leadership direct access to information to help navigate the many ways banks may assist their communities. Another way the IBA is working to help you is by gathering and sharing pertinent information about COVID-19. The barrage of news makes it a challenge to keep up, so the IBA has set up a COVID-19 webpage with access to the latest information, including regulatory updates. We have also created a coronavirus Google Group to allow members to interact with each other and share insights. These resources will continue in place as long as needed. Additionally, the IBA continues in our commitment to help Indiana banks succeed. Pages 16 and 17 of this issue provide a summary of offerings provided last year in service to you. You can see that 2019 was busy and successful, with achievements including the establishment of Indiana’s first banking studies program at Purdue Northwest University, the inauguration of IBA’s Commitment to Community Award and record attendance at multiple events. Because fiscal responsibility is essential, we present two pie charts on page 15 that show the makeup of the IBA’s income and expenses. I am proud to note that the IBA continues to derive less than onefourth of its income come from member dues. The IBA team works hard to maintain a steady stream of non-dues revenue in order to keep our dues among the lowest of state bankers associations nationwide. VANTAGE VIEWPOINT Don’t Miss Out! On the expense side, our team continues to provide you with quality offerings efficiently, as our administration, overhead and staff costs make up less than one-fourth of our total expenses. Meanwhile over two-thirds of our costs go directly back to membership through education, training and events, and government relations support. The IBA team will continue serving you through the appropriate use of funds. While it’s gratifying to reflect on the accomplishments of the past year, the IBA staff is looking ahead to 2020 and beyond. The world may have “paused” for a few months, but our team keeps finding new ways to serve your needs. Regarding the IBA Mega Conference, originally set for springtime, we are now exploring ways to reschedule it to a more opportune time later in the year. Also, many of our educational and training events are being revamped to a virtual format, giving bankers a new way to stay informed. In addition, our fast-moving government relations department has ratcheted up its pace to a new level, while your communications team is working diligently to make sure you have all of the information you need. Clearly there have been many changes in 2020 and more to come, but there is one constant. Your IBA team is fully committed to serving you, our members, in the same way that you are fully committed to serving your staff, your customers and your community. As a closing thought, I remind you of the words of comfort of Fred Rogers, the legendary children’s television show host. He often shared that in times of trouble, “Look for the helpers. You will always find people who are helping.” Thank you, Indiana banking community, for being helpers in your communities at this time of need. HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indiana.bank @grbanker IBA Annual Washington Trip July 26-28 Join the chorus and make your voice heard at our nation’s capital about industry issues. FLD Leadership Conference Aug. 27-28 Emerging leaders build skills and strengthen networks at this premier FLD event. Annual Convention Sept. 13-15 Indiana bank leaders convene, connect and conduct IBA business in scenic French Lick. For event updates, visit: indiana.bank/covid-19-update-banks
Hoosier Banker 7 In my last Chairman’s Report, I talked about how our community is not just where we live or work, but includes every banker in Indiana. As the rest of the world fell apart in mid-March with the COVID-19 pandemic, our Indiana banking community united and worked together. It also became crystal clear why it is important to have a strong state banking association, as we do with the Indiana Bankers Association. Like many of us, the IBA turned on a dime and transformed its operations overnight. The entire staff began working from home while the mission of the IBA carried on. Previously scheduled educational seminars and in-person meetings were converted to virtual events, while the Association geared up to become the central point for information and resources that all of us needed. Within days of the crisis hitting, the IBA staff arranged peer group calls so that we could find out what other banks around the state were doing to address the crisis. The Association opened those peer group calls to members who were not officially in peer groups, so they could take part in the discussions as well. As a result, we had members on the peer group calls who had never been involved with the Association beyond paying their dues. Once the crisis hit, they quickly saw the value provided by the IBA, and some members participated more than they ever had before. As the crisis unfolded and stay-at-home orders took effect, we bankers had to convince some customers that leaving their money in the bank was the safest thing to do, and that our banks will not shut down. The press releases of the IBA, FDIC and other organizations helped, but what really calmed our customers’ fears is the confidence they have in their bankers. Whether with a loan officer, a teller or the bank president, personal conversations with scared customers did more to calm the fear than anything else. That is the value of a personal banking relationship and what community banking is all about. Indiana bankers should be proud to be bankers, providing a much-needed sense of calm in such turbulent times. As the days passed, the IBA not only continued to facilitate communication between bankers and regulators, it also gathered all of the regulatory guidance being issued into a single, convenient location. The government relations staff worked with the ICBA and ABA and analyzed the federal laws and stimulus packages being passed. They provided crucial summaries and information about the bills, so that we bankers could concentrate on running our banks instead of researching new laws. There is no better example of why a strong state banking association is important than the botched rollout of the Paycheck Protection CHAIRMAN’S REPORT First Savings Bank • @fsbindiana • April 10 Our Daviess County crew provided lunch for the hardworking, essential healthcare employees of Ketcham Memorial Center yesterday. #thankyou #essentialemployees #INthistogether Alliance Bank • @AllianceBank_IN • April 9 These @NWhiteSchools cafeteria workers and bus drivers are doing their part to ensure our kids have meals during #isolation. Compliance Officer Tara Garling delivered gift certificates to them from the Whistle Stop to say thanks! #supportlocal #banklocally #myalliancebank First Federal Savings Bank • @ffbanking • March 27 First Federal Savings Bank was able to repurpose a few iPads for use by Kelly Agee and her staff at Families First Center in South Bend. Families First provides supportive services for children and families, and needed some devices to be able to perform their work via video. Security Federal Savings Bank • @sfsbank • March 16 We’re happy to help supply sack breakfasts and lunches to @ LSCLafayette students. Giving in a time of need - It’s what Community Banks do! Stock Yards Bank • @sybsince1904 • March 6 A few members of the SYBT team had a wonderful time volunteering for The Epilepsy Foundation Of Kentuckiana today! SYBT helped put together informational packets for neurologists in the community. Thank you for having us @efkentuckiana! Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter Program (PPP). The IBA helped us all navigate the mass confusion caused by incomplete guidance that came out the night before the program launched, lack of access to the SBA portal for many banks, and contradictory statements by governmental officials. The IBA helped get answers to our many questions and facilitated massive conference calls for us to exchange information so we were better prepared to help our customers. If we did not have a strong state association, Indiana businesses and our customers would have suffered, because we would not have been able to overcome the government’s flawed rollout of the PPP as quickly as we did. As for me, my bank visits came to an abrupt halt in mid-March, along with the rest of the world. I have visited one-half of the banks in the state and look forward to resuming my visits once things get back to some sense of normal. My goal is still to visit everyone in the state before convention time in September. HB Lucas White Chairman Indiana Bankers Association President The Fountain Trust Company, Covington @LucasNWhite
8 MAY / JUNE 2020 Give back to your community with community rewards cards. The consumer credit card program at Bankers’ Bank is tailored to make community banks shine. This referral card program lets you offer three great consumer card options: • up to 3% cash-back rewards when customers shop at participating community-based businesses • up to 3X rewards for travel, merchandise and gift card rewards when customers shop at participating community-based businesses • a no-frills card with an especially low rate While your customers appreciate your community support, you’ll appreciate the turn-key program offering reliable fee income. Contact us to get started. Always your partner, never your competitor.™ Koubra Bandawal — 317.518.1278 Correspondent Banking Linda Lease — 317.504.2007 Commercial Banking Asset Liability Mgmt • Bank Cards • Cash Letter • Commercial • International • Investments • Leasing • Mortgages • SBA 7(a) • Wealth Mgmt BankersBank.com Madison, WI • Chicago, IL • Des Moines, IA • Indianapolis, IN
Hoosier Banker 9 View full calendar and register online at indiana.bank/calendar, 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 Risk Management Forum May 22 • IBA Center Consumer Lending School May 27-28 • IBA Center Human Resources Directors Forum May 28 • IBA Center Security Officer Forum June 4 • IBA Center Senior Lender Forum June 10 • IBA Center • Group 1 June 11 • IBA Center • Group 2 Essentials of Banking: Session 2 - Business Operations and Management June 18 • IBA Center CFO Forum June 18 • IBA Center • Group 1 June 19 • IBA Center • Group 2 Marketing Forum June 23 • IBA Center IT Forum June 24 • IBA Center • Group 1 June 25 • IBA Center • Group 2 Commercial Lending School July 13-17 • IBA Center Cybersecurity Seminar July 14 • IBA Center Risk Forum July 16 • IBA Center Compliance Management School July 21-22 • IBA Center Treasury Management: A Powerful Tool to Increase Deposits and Fee Income July 22 • IBA Center Annual Washington Trip July 26-28 • The Willard InterContinental Washington, D.C. Training the Credit Analyst July 28-29 • IBA Center Universal Banker Certification July 28-29 • IBA Center Stepping Up to Supervisor July 30 • IBA Center CBC Series - Session 3 Aug. 11 • IBA Center Aug. 12 • IBA Center Aug. 13 • Indiana Wesleyan University Fort Wayne Security Officer Forum Aug. 13 • IBA Center Branch Management Series – Session 3 Aug. 18 • IBA Center Essentials of Banking: Session 3 - Lending, Bank Investments and Bank Performance Aug. 19 • IBA Center Community Reinvestment Act Seminar Aug. 19 • IBA Center Compliance for Loan Processors Aug. 20 • IBA Center HR Directors Forum Aug. 24 • IBA Center FLD Leadership Conference Aug. 27-28 • The Westin Indianapolis Advanced Agricultural Lending Conference Sept. 3-4 • DoubleTree by Hilton • Lafayette Call Report Sept. 3-4 • IBA Center Retail Banking Forum Sept. 9 • IBA Center Digital and Social Strategies Bootcamp Sept. 10 • IBA Center BSA Officer Forum Sept. 10 • IBA Center Annual Convention Sept. 13-15 • French Lick Resort Advanced Credit Analyst School Sept. 16-17 • IBA Center TRID Refreshed Sept. 16-17 • IBA Center Mortgage Lending School Sept. 22-24 • IBA Center Cybersecurity Conference Oct. 1-2 • Renaissance Hotel • Carmel IRA School Oct. 1-2 • IBA Center CBC Lending Compliance School Oct. 6-9 • IBA Center Banking on Women Conference Oct. 23-24 • Sheraton Indianapolis Hotel NOTE: Due to COVID-19 precautions, the Indiana Bankers Association is exploring rescheduling options for the Mega Conference and will be notifying members as updates become available. For latest information about all IBA events, visit: indiana.bank/covid-19-update-banks
10 MAY / JUNE 2020 COVER STORY Banks Helping Hoosiers Caring through COVID-19 Since the onset of the COVID-19 pandemic, so many aspects of life have changed – our daily routines, our work habits, our home lives and more. Not many things have remained untouched in the virus’s wake. One thing that so clearly remains unchanged by the pandemic, however, is banks’ tirelessly searching for any way to give back to their communities. Although circumstances have changed, banks’ commitment to their communities is still alive, well and strong as ever. In the last several weeks we’ve seen countless press releases, social media posts and emails detailing all the efforts IBA-member banks have been undertaking to support others in this uncertain time. Instead of a traditional cover story, we’re opting to highlight the many of you who have shared your good works with us. In addition to this community outreach, many banks are providing financial assistance for customers such as loan payment deferrals, suspension of foreclosures and repossessions, and transaction fee reimbursement. Thank you to the following banks for sharing examples of how you are continuing to serve your communities well. For banks headquartered out-ofstate, some of the dollars indicated in these stories was used within Indiana. 1st Source Bank, South Bend, committed $600,000 in grants to the United Ways of northern Indiana and southwestern Michigan, which serve a total of 18 counties between the two states. Emily Brooks Member Engagement Specialist Indiana Bankers Association ebrooks@indiana.bank
Hoosier Banker 11 Alliance Bank, Francesville, is allowing employees to wear jeans through the duration of the lobby closures in exchange for a donation to support local businesses. Employees are encouraged to give what they can, and the bank will match their giving up to $750. Within a few days of beginning this initiative, nearly $1,500 was donated by employees and the board of directors. In total, the bank donated $2,241 to support small businesses and to lift up those affected by the virus. These initial funds raised were used for protective gear for first responders, restaurant gift certificates distributed to various workers and more. Bank of America, Chicago (IL), committed $100 million to support local communities in need as the world faces unprecedented challenges from the coronavirus. The funds will help increase medical response capacity, address food insecurity, increase access to learning as a result of school closures and provide support to the world’s most vulnerable populations. Bippus State Bank, Huntington, formed “The Giving Box,” which is a cooler filled with dry goods and nonperishable items outside the lobby doors for anyone who may be in need, with a “take what you need, leave what you can” policy. Chase Bank, New York (NY), through its parent company JPMorgan Chase, announced a $50 million global philanthropic commitment to address the immediate public health and long-term economic challenges from the COVID-19 global pandemic. Funds will support communities and people hit hardest by this public health crisis through an initial $15 million commitment, including: $5 million to provide immediate healthcare, food and other humanitarian relief globally; $2 million to existing nonprofit partners around the world that are responding to the COVID-19 crisis in their communities; and $8 million to assist small businesses vulnerable to significant economic hardships in the U.S., China and Europe. The remaining $35 million will be deployed over time to help the most vulnerable communities and people recover from the crisis and have an opportunity to benefit from future economic growth. Community State Bank, Brook, purchased 60 large pizzas from the local Monical’s Pizza and handed them out to customers, residents of Brook and businesses. Farmers & Merchants State Bank, Archbold (OH), donated a supply of N95 masks to Adams County Memorial Hospital. Benton Community Food & Service Co-op volunteers receive their lunch from the Dan Patch Café courtesy of Alliance Bank, Francesville. “The Giving Box,” pictured outside of a branch of Bippus State Bank, Huntington, is a cooler filled with dry goods and nonperishable items for anyone in need.
12 MAY / JUNE 2020 Fifth Third Bank, Cincinnati, committed $8.75 million to help address the effects of the COVID-19 pandemic, including $3.25 million for COVID-19 response needs in the regions served by Fifth Third Bank and $5.5 million in “Strengthening our Communities Fund” grants to support the long-term sustainability of the economy. First Federal Bank of the Midwest, Defiance (OH), made a $100,000 commitment from the Charitable Foundation to help local nonprofit partners address the challenges faced from the COVID-19 global pandemic. The funds will support organizations which are focused on providing medical supplies, food and other critical health-related essentials to the elderly. In addition, the bank has also donated 2,000 N95 masks to the Defiance County Emergency Management Agency. The masks were from inventory that First Federal Bank had in storage locally in Defiance. First Federal Savings Bank, Huntington, committed a total of $50,000 to the counties of Huntington, Allen and Kosciusko to be used to support families in need during the COVID-19 pandemic. Funds will be distributed with the help of the local United Ways, community foundations and social service agencies. The bank also provides lunch to employees at all six offices from local restaurants once per week. First Financial Bank, Cincinnati, is contributing $1 million to help fund COVID-19 relief efforts in their communities. The contribution will put funds in the hands of agencies actively working throughout communities, such as United Way, United Fund, and other community agencies also managing COVID-19 relief efforts. First Harrison Bank, Corydon, established a $2,000 “tab” in conjunction with a local real estate company that can be utilized by local hospital staff, first responders and other essential personnel to use for their lunches. The restaurant is also giving a 20% discount on these orders. The bank also orders food three days a week for staff from local restaurants. First Savings Bank, Clarksville, has bought lunch for its branch offices from a local restaurant every Friday since March 17 to support local businesses. In addition, it has handed out over 2,000 hand sanitizers to customers in the drive-through and has provided food for several essential businesses including Harrison County Hospital, Baptist Health Floyd, Clark Memorial Hospital, Greentree Pet Center, ACE Hardware, Ketcham Memorial Center and Lafayette Township Volunteer Fire Department. Employee volunteer work includes making scrub hats for healthcare workers and stocking shelves at a local store. First State Bank of Middlebury donated a truckload of snacks to healthcare workers at a local hospital. The vending company from which the snacks were purchased matched the donation. Additionally, to accommodate the local Amish population, the bank set up a table in the drive-through for walk-up customers to make calculations and/or fill out a ticket. Several employees from German American Bank, Jasper, sewed masks for local hospitals. Other employees have assisted with filling backpacks with food for children no longer getting meals in school. Home Bank, Martinsville, provided 175 pizzas for workers at IU Health Morgan in Martinsville. They responded, “Thank you so much for all of the pizza! We, at IU Health Morgan, appreciate you all at Home Bank.” Hoosier Heartland State Bank, Crawfordsville, purchased lunch for the local Montgomery County Health Department. It also has participated in the social distancingA Community State Bank, Brook, employee hands a pizza to a drive-through customer. Andrew Briggs (right), first senior vice president of business development for Farmers & Merchants State Bank, Archbold (OH), presents a donation of N95 masks to a local hospital. Angela Eppard (left) and Emma Davidson of First Federal Savings Bank, Huntington, pose with cupcakes purchased by the bank from a local bakery. Harrison County Hospital employees pose with meals donated by First Savings Bank, Clarksville. Continued on facing page.
Hoosier Banker 13 approved “Bear Hunt” game, where teddy bears are placed in windows of homes and businesses for children to spot. The bank gave away pop sockets and suckers to any child that spotted the bear in their drivethrough window. Horizon Bank, Michigan City, announced that it is pledging $250,000 in aid for those affected by the COVID-19 pandemic. Funds will be allocated across several not-for-profit groups that are working to assist affected individuals in the communities the bank serves in Indiana and Michigan. The bank also donated $10,000 to United Way of LaPorte County’s COVID-19 Relief Fund. This fund will support the immediate and emerging needs of individuals in LaPorte County. Mid-Southern Savings Bank, FSB, Salem, provides lunch to its three branches and loan production office every Monday and Friday to support local eating establishments in the four counties it serves and to show appreciation to staff for their continued dedication. North Salem State Bank pledged $1,000 to a food pantry or charity every day until further notice. Organizations chosen are all local and help families in need in the community. Followers of the bank’s Facebook page have the opportunity to nominate their organization of choice. Old National Bank, Evansville, continues to enable associates to volunteer at health and human service agencies, especially local food banks that are in critical need of assistance. The bank also has assisted local American Red Cross chapters with blood drives by echoing their announcements for donations and scheduling a blood drive at Old National’s headquarters. Peoples Bank, Munster, has dedicated its employee philanthropic committee to fundraising for a new cause each week, and plans to continue until the end of the COVID-19 pandemic. Efforts have included raising money for the Campagna Academy, an organization that provides homes and guidance for children to get them on a more successful path in life. Due to the shelter-in-place order and social distancing, the children that live Managing the web of complex issues and regulatory constraints that surround banking today has never been more challenging. So the deep expertise of our banking team has never been more vital. Make life easier. Call us today. New Albany 812.945.2311 Louisville 502.423.0311 monroeshine.com CERTIFIED PUBLIC ACCOUNTANTS Audit & Assurance BSA & ACH Compliance Outsourced Internal Audit SEC & SOX Compliance Loan Review IT Risk Management Consulting Services Merger & Acquisition there are no longer able to have visitors, so the organization wanted to purchase webcams so that their residents can have virtual visits with their families. Another week, employees raised money for the local food bank. They were able to donate $1,000 generated by employees, not including the bank’s matching donation. Employees of First State Bank of Middlebury and Maple City Dispensing present a snack donation to a local hospital. Employees of IU Health Morgan pose with a donation of 175 pizzas from Home Bank, Martinsville. Employees of Hoosier Heartland State Bank, Crawfordsville, pose with a teddy bear in their drive-through window as a part of the social distancing-approved “Bear Hunt” game. Any child who spotted the bear received a prize.
14 MAY / JUNE 2020 PNC Bank, NA, Wilmington (DE), announced $30 million in charitable support of coronavirus relief efforts, primarily directed toward basic needs and hardship relief programs across the markets in which PNC operates. Security Federal Savings Bank, Logansport, contributed $5,000 to provide lunches and breakfasts for school children in its Lafayette market. Local families are able to pick MARY ALICE AVERY mavery@wilmingtontrust.com 302.636.6127 MINDY WALSER mwalser@wilmingtontrust.com 702.866.2203 Trustee Services for Senior and Subordinated Debt and Trust Preferred Securities Investment Subsidiaries and Holding Companies Custody Portfolio Accounting Investment Management ©2020 Wilmington Trust Corporation and its a liates. All rights reserved. Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary of M&T Bank Corporation (M&T). 43300-A 200218 VF ENTITY MANAGEMENT DELAWARE AND NEVADA EXPERIENCE 43300-A GCM20 Hoosier Banker ad 200218 VF.indd 1 2/18/2020 4:13:26 PM up bagged breakfast and lunch via drive-up service each day. Spencer County Bank, Santa Claus, purchased 41 gift cards of $25 from local restaurant customers doing carry-out only and distributed them to bank employees. An employee of STAR Bank, Fort Wayne, used her volunteer time off to sew masks for healthcare workers. State Bank of Lizton, Brownsburg, made donations to local food pantries in Hendricks and Boone Counties totaling $10,000. The donation was divided among three food pantries: Hendricks County Food Coalition, which disburses supplies/food to all the pantries in Hendricks County; Love Inc. in Lebanon; and The Caring Center in Lebanon. United Fidelity Bank, Evansville, donated $500 to Feed Evansville, a food donation program, to help with supplies needed for Grab & Go Meals for local students while schools are closed. U.S. Bank, National Association, Minneapolis (MN), announced a $30 million commitment to support immediate and long-term COVID-19 relief efforts in communities around the country. Wells Fargo, San Francisco (CA), announced charitable donations of $175 million to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations as customers, communities and employees grapple with the impact of COVID-19. WesBanco Bank, Wheeling (WV), has established a $350,000 grant pool to support nonprofit organizations in communities served by WesBanco that have been directly impacted by COVID-19. HB Save the dates for this opportunity for Indiana women in banking to unlock potential, build confidence and chart a course to owning the future. Click on the icon above in HB Digital to learn more or go to: indiana.bank/events/banking-women. Indianapolis OCT. 2324 Banking on Women Conference
Hoosier Banker 15 2019 Member Benefits Report 21% Membership Dues 3% Advertising 29% Education & Training 15% Meetings & Events 18% Rent, Royalties & Sales 6% PAC Contributions 8% Interest & Dividends 5% Communications 20% Administration 48% Education, Training & Events 19% Government Relations 8% Products & Services IBA EXPENSES IBA INCOME Continued on page 16. Thank you to the members of the Indiana Bankers Association for continued support of Association initiatives and success. Our member banks and associate members have been steadfast supporters of IBA advocacy, education, service provider relationships, and paving the way for the next generation of bankers. Additionally, leadership provided by members of the IBA Board of Directors, past and present, has ably guided the Association to ongoing success.
Indiana Bankers Association Members Benefits Report 2019 16 MAY / JUNE 2020
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18 MAY / JUNE 2020 ARTICLE SPOTLIGHT On Feb. 10, the Indiana Bankers Association had the privilege of welcoming nearly 60 banking advocates to downtown Indianapolis for the FLD Day at the Statehouse. The event has been a staple of the FLD for several years and is one of the best ways for emerging leaders to learn about the legislative process and become involved in IBA’s grassroots advocacy efforts. Beginning inside the Hilton Indianapolis Hotel & Suites, the day began with a fun and challenging “FLD Feud” trivia and icebreaker where attendees had the opportunity to introduce themselves to their peers and answer a trivia question about state government. For example, did you know that there were over 900 bills filed during the 2020 Indiana legislative session and that there are nearly 50 committees in the General Assembly? Following was an in-depth discussion from IBA’s government relations staff, Dax Denton and Eric Augustus, on the 2020 legislative session. They discussed the basics, like what the IBA government relations team does, plus went in-depth on important banking bills and how FLD members can lend their voices to support the IBA’s advocacy efforts with legislators. Next, the group traveled a short distance to the Indiana Statehouse for an opportunity to meet with legislators as a group. The first meeting included Sen. Eric Bassler (R-Washington) and Sen. Andy Zay (R-Huntington). Sen. Bassler is the chairman, while Sen. Zay is the ranking member of the Senate Insurance and Financial Institutions Committee. Next FLD Lends its Voice at the Indiana Statehouse the group met with Rep. Woody Burton (R-Whiteland) and Rep. Donna Schaibley (R-Carmel). Rep. Burton, who is retiring after the 2020 session, has served for several years as the chairman of the House Financial Institutions Committee, which Rep. Schaibley also serves on. Both meetings with legislators provided FLD members with an insider's view of the Statehouse and the legislative process, and an opportunity to discuss issues and ask questions. Attendees then had freedom to move about the Statehouse. Several used the opportunity to schedule individual meetings with legislators to meet for the first time or to get to know them better and talk about banking issues. Others toured the Statehouse and took in the sights of Indiana’s history. The day culminated with a delicious networking lunch and a fun, enlightening discussion from Abdul-Hakim Shabazz. Among other roles, Shabazz is an attorney, hosts the “Abdul at Large” talk show on WIBC-FM 93.1, is an editor and publisher of IndyPolitics.org, and is a frequent panelist on Fox 59’s IN Focus and “Inside Indiana Business.” He provided an interesting look at the political environment, the hot issues of the 2020 session and more. The IBA is very appreciative of all the members that participated in this event, as well as Krieg DeVault LLP for sponsoring lunch. For FLD members and other emerging leaders who missed the event, there are still several grassroots advocacy opportunities available, including IBA regional meetings, the IBA Annual Washington Trip and more. You have a story, and your voice matters. HB Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indiana.bank @joshmyersIN
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20 MAY / JUNE 2020 FEATURE Engaging Customers When and how it matters most What can financial institutions do in a national health crisis, especially one for which we cannot yet make any clear predictions? One during which many customers are whipsawed by rapid-fire reporting on virus proliferation, panic buying of everyday essentials and adjusting to 24/7 life at home? At Harland Clarke, we are urging our financial institution partners to step back and consider focusing on household acquisition. It might seem counterintuitive, but your voice can actually be better heard now because there is less marketing saturation and “noise.” Why the reduction in noise? Many marketers have moved to the sidelines. They have shifted to a short-term focus in the midst of the crisis, and one of the first things they do is cut their marketing budgets. Harland Clarke advocates, based on experience, that this is the time to speak up, not retreat, and the time to acquire, not take a pass. An effective, properly targeted marketing message that helps your customers during these uncertain times is a positive customer experience, not a sales pitch. We expect a significant spike in customer dissatisfaction. Many are going to have negative customer experiences throughout this crisis. They will experience long hold times, fee assessments and challenges finding quick answers to their pressing questions. The industry as a whole isn’t prepared to deal with this likely dramatic escalation in dissatisfaction. If you are, that spells competitive advantage. Consumers are looking for reassurance, support and a financial partner who knows them. As financial institutions with a proven history of weathering economic challenges, banks are well-positioned to seize this opportunity with highly targeted marketing to focus on acquisition – not just during the current crisis, but when the crisis subsides and economic activity returns. Harland Clarke recommends focusing limited marketing dollars in three primary areas: 1. Community involvement and engagement: With a highly visible and physical presence in your markets, you have a unique advantage to further elevate your brand to the top of financial consumers’ minds. The branch network and local presence has felt like a liability in recent times. That was then, this is now. Your local presence has never been more valuable. Why? Because within your brick-and-mortar walls are real people. Consumers need that assurance right now. Here are some of our recommendations to leverage this advantage: • Promote your position in the community; • Promote your ability to interact and consult with your customers; and • Leverage the existing customers you have served to spread the word to friends and neighbors. Greg Waltz Vice President – Strategy Consulting Harland Clarke greg.waltz@harlandclarke.com Harland Clarke is an associate member of the Indiana Bankers Association.
Hoosier Banker 21 2. Bundling of products and services for the benefit of your customer: We encourage you to think about your lead product and create tailored product bundles around it. With interest rates at historic lows, mortgage refinancing is likely to drive mortgage loans to the lead-product position. But don’t just push additional services: Create a portfolio to support and help the customer. As bankers, we typically think: transact, save, borrow, invest and protect — in that order. With mortgage refinancing as a potential lead product, we suggest re-ordering as follows: • Borrow: Create greater financial flexibility. • Transact: Add a depository account and reward them with a rate advantage on their loan if they also bring direct deposit. • Protect: Offer overdraft protection and do so in a non-punitive manner for the next six months. • Save: It is hard to save in the midst of challenges like these, but help your new customers establish a budget that includes automatic savings. • Invest: FDIC-insured savings, money markets and CDs may very well become the new in-vogue investment. 3. Concentrating marketing spend on highly efficient consumer targeting: Now that you have determined your consumer portfolio strategy, it is critical to identify those consumers that meet your lead product profiles. In times of major economic disruptions, a highly targeted marketing approach can provide superior results and returns on precious marketing dollars. • Partner with firms that can help you identify your target segments and those specific target customers. • Be extra vigilant regarding losing customers. Do not allow your customers to take their mortgage business elsewhere or the entire relationship may follow. • In acquisition messaging, reinforce all the ways new accounts can be opened without the consumer needing to come into the branch. CINNAIRE.COM It takes more than good intentions to transform communities. It takes capital, development capacity and trusted partnerships. In 25 years, we’ve delivered more than $7.3 billion in community impact. Overcoming challenges. Solving problems. Backed by a commitment to creating healthy communities that has never wavered. The Return on Investment: Safe, Affordable Homes. Healthy Communities. Better Lives. INVESTING IN INDIANA COMMUNITIES FOR MORE THAN 25 YEARS. Transforming Communities. Transforming Lives. The strength of the greatest banking system in the world will help lead the way through our current disruptions. Those institutions that take the opportunity to focus on acquisition while marketing messages are not diluted by oversaturation. They will come through this with stronger customer relationships and accelerating customer acquisition above and beyond their peers. HB Shanon DeLong, vice president of corporate planning and CRA, United Fidelity Bank, has completed 25 years of service with the bank. HB ANNIVERSARY MILESTONE A salute to 20+ years of banking service
22 MAY / JUNE 2020 Leo Reap Vice President & Senior Partner IT Resource leor@itrw.net IT Resource is an associate member of the Indiana Bankers Association. FEATURE Banking Scam and Fraud Attempts In a post COVID-19 World The world did not see this coming. The COVID-19 pandemic that is sweeping the globe has knocked everyone back on his or her heels. The good news, however, is that we will get through this, and perhaps we will have learned how to be more prepared in the future. The economic crisis caused by COVID-19 will also abate, but slowly. This isolated situation is allowing a continuing “virus” to flourish, however – swindle and fraud artists, particularly those related to your bank. Now more than ever, unscrupulous actors are looking for every way possible to separate your customers from their money and identity. While not a new concept, it is one that is taking on a completely new meaning for the banking industry. With the recent passage of the Families First Coronavirus Response Act, there are checks and cash floating around mailboxes and/or bank accounts. Obviously, this is a rich environment for fraudsters. This now gives the scammers a completely new arena in which they can practice their skills at defrauding your customers out of their money. For example, there have been reports of text messages and emails telling people how to get their checks faster from Uncle Sam. Tell your customers to question inquiries like these strongly (and delete them), as the federal government will never text or email anyone. After the pandemic subsides, what should banks be doing to further protect their customers from scammers? First, banks should insist customers use complex passwords, if complex passwords are not required already. In fact, banks should increase the required complexity of those passwords. Second, banks should insist on multifactor authentication, if not doing so already. Many banks use SSL certificates and require enrollment of devices with them to verify a device accessing user accounts. Security and user validation will continue to take center stage for banks, so it is important to remind customers to always look for the lock symbol on your bank web page. Third, banks should be much less tolerant of login failures. The typical bank allows three failed login attempts before locking an account and this number should be reduced. In addition, banks should be accelerating their use of facial recognition as a means to authenticate a user. This is a very secure method of first-level authentication enhanced by multi-factor authentication to verify the user. Banks should be providing documents, personnel, and training to their customers to help them identify scammers and the like. Also, banks should expect to continue significant internal staff training – not only to help employees be more vigilant, but also so that employees can train customers on the scammer’s methods. Overall, the methods of attempted fraud and scamming will likely not change much after the COVID-19 pandemic. Nefarious people will continue to prey on the weak and uninformed and will look for any vulnerable customer of which they can take advantage. The best option for banks is to tell their customers to always be suspicious and call the bank with any questions. HB
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