Hoosier Banker 31 For more information about the LIBOR transition, visit: gobaker.com/wp-content/uploads/articles/TBG-B0081ARRC-Best-Practices.pdf also lead to an early demise. Fannie Mae and Freddie Mac will no longer be buying adjustable rate mortgages tied to LIBOR after the end of this year, but they will begin accepting SOFR-based ARMs before this year is out. According to John Williams, president of the Federal Reserve Bank of New York, the use of LIBOR in loan agreements should have stopped by now, and lenders are encouraged to develop fallback language for LIBOR-referenced loans that will specify the replacement rate, SOFR, upon LIBOR’s cessation. For community bankers, communication with customers is key. The earlier that process is started, the more smoothly the rate transition is likely to go, especially if LIBOR goes away sooner than expected. HB Centier Bank, Merrillville, has concluded its first year of offering Billinero, a mobile application launched in August 2019. The digital, prize-linked savings account provides a game-like savings approach for customers. Participants use the Billinero app to build savings, and in the process become eligible to win cash prizes of $1,000 monthly and $10,000 quarterly. The application is currently available to users who reside in Arkansas, Connecticut, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, Oregon, South Carolina or Virginia. Billinero savings accounts are insured up to the standard maximum deposit insurance amount of $250,000 through Centier Bank, member FDIC. Additional information is available at billinero.com. HB Centier Bank customer Alexandra Kaminski, who opened a Billinero account to save money toward purchasing a home, was pleasantly surprised to win $1,000 through the program. Centier Bank Offers Billinero Indiana Bankers Association leadership has submitted op-eds to local media to address the growing trend of credit union acquisition of banks. These types of sales have been more prevalent in Indiana than anywhere else in the nation, with more than half of recent Indiana bank acquisitions going to credit unions. Chairman Lucas White wrote an opinion piece, “Another Taxpaying Bank Bought out by a Credit Union,” that was published in the Sept. 4 edition of the Indianapolis Business Journal. His article reviews the trend and points out the serious tax revenue consequences of these sales. Amber Van Til, IBA president and CEO, has a piece published Oct. 12 in The Journal Gazette, Fort Wayne: “Communities bank on more than financial influx.” Written in response to an Indiana Credit Union League op-ed, her article approaches the topic from the perspective of community service. View these and past IBA op-eds on the IBA website at: indiana.bank/iba-op-eds. HB Op-Eds Focus on CU Acquisition of Banks A communications toolkit created by the Indiana Bankers Association helps member banks share good-news stories with media outlets. Additionally, the toolkit provides an optional quick-link webform for submitting Toolkit Helps ‘Tell the Story’ of Banking updates to Hoosier Banker, such as bank hires/promotions, branch openings, community service and more. View the toolkit at: indiana.bank/communications-toolkit. HB
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