HB HOOSIER BANKER MAGAZINE indiana.bank PLUS! Bank Exam Prep Center MAY / JUNE 2021 Together Again Grab your seat, it’s time to meet
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DIRECTORS & STAFF HOOSIER BANKER MAGAZINE indiana.bank IBA BOARD OF DIRECTORS Officers Michael S. Zahn, Chairman ...............................................First Federal Savings Bank, Huntington Garry D. Kleer, First Vice Chairman.............................................................. First Bank Richmond Jamie R. Shinabarger, Second Vice Chairman..........Springs Valley Bank & Trust Company, Jasper Lucas White, Immediate Past Chairman...........................The Fountain Trust Company, Covington 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 John Corbin, Non-Indiana Headquartered Bank Director .Huntington National Bank, Columbus, OH Emily Boardman, Future Leadership Division President......................... Crossroads Bank, Wabash At-Large and Regional Directors David M. Findlay, At-Large ......................................................................Lake City Bank, Warsaw Kent A. Liechty, At-Large ...............................................................................First Bank of Berne Benjamin J. Bochnowski, North Region ....................................................Peoples Bank, Munster Joseph D. Carlson, North Region..........................................Community State Bank, Royal Center Jeffrey W. Gump, North Region ........................................... Farmers and Merchants Bank, Laotto Jessica Carroll, South Region ............................... The New Washington State Bank, Charlestown Gregory Inman, South Region.......................................Scottsburg Building and Loan Association John M. Kennedy, South Region ...................................................... Greenfield Banking Company IBA FUTURE LEADERSHIP DIVISION ADVISORY BOARD Emily Boardman, President……............................................................. Crossroads Bank, Wabash Jon-Myckle D. Price, Vice President............................Security Federal Savings Bank, Logansport Greg Barnes Jr........................................................................................ STAR Bank, Fort Wayne Michael J. Clampitt.................................................................................North Salem State Bank Jason L. Ernst......................................................................................Terre Haute Savings Bank Gavin Fisher ............................................................... Community First Bank of Indiana, Kokomo Nashelle Frazier. ............................................................................... Fifth Third Bank, Cincinnati Brock C. Goggins........................................................................ German American Bank, Jasper Kyle Goodwin............................................................................................... DeMotte State Bank Christopher Griffith ........................................................................ First Harrison Bank, Corydon Ryan Hart ...............................................................................................Lake City Bank, Warsaw Zach Hockersmith...................................................Hoosier Heartland State Bank, Crawfordsville Heather Lucas .........................................................................The National Bank of Indianapolis Amanda Morris-Feldman ...................................................First Federal Savings Bank, Rochester Billy Winter...................................................................................Bippus State Bank, Huntington Melodie K. Yarnell ......................................................................Jackson County Bank, Seymour 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, CMP ....................................................................Education Meeting Coordinator Elizabeth DeHaven ......................................................................Education Meeting Coordinator Timothy Fry .....................................................................................................Staff Accountant Tracy Kubly ................................................................................................Technology Manager 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 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. Material published in Hoosier Banker and on the IBA website is the property of the IBA. All rights reserved. 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. 105 No. 3
Hoosier Banker 5 CONTENTS 12 COVER STORY Together Again Josh Myers, IBA 16 ARTICLE SPOTLIGHT Bank Exam Prep Center Rod Lasley, IBA FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Michael S. Zahn, First Federal Savings Bank 8 IBA 2020 Member Benefits Report 11 IBA Calendar of Events 39 The More Things Change... Rebeca Romero Rainey, ICBA 40 Consistent ‘Rules of the Road’ Robert S. Nichols, ABA SALES / MARKETING 18 High-Touch Coaching Tony Cole, Anthony Cole Training Group LLC PSP SHOWCASE 20 Providing Stability Shawn M. Norris, NFP COMPLIANCE CONNECTION 22 Interviewing a Candidate Brett J. Ashton and Charles O. Richert, Krieg DeVault LLP IBA INSURANCE SOLUTIONS 24 HELOC Accounts Chuck Maggard, IBA Insurance Solutions DIRECTORS / SENIOR MANAGEMENT 26 Riding the Liquidity Waves Dale Sheller, The Baker Group 34 Capital Raising for Community Banks Michael J. Messaglia, Krieg DeVault LLP 42 Triaging Your Institution Earl Charneske, PCBB 50 The Loyalty Factor Achim Griesel and Sean Payant, Haberfeld AG BANKING 28 Carbon Credits Brady Brewer, Purdue University HUMAN RESOURCES 30 COVID-19 Long-Haulers Debra A. Mastrian, SmithAmundsen LLC INDIANA BANK & THRIFT STOCK UPDATE 32 Stock Analysis Michael A. Renninger, Renninger & Associates LLC PRODUCTS & SERVICES PROFILE 36 Credit Card Rewards Rod Lasley, IBA LENDING / CREDIT 44 Our Credit Lives on Main Street David Ruffin, IntelliCredit CLOSING NOTE 58 IBA Board Review Kent A. Liechty, First Bank of Berne DEPARTMENTS 23 Taking It Easy 27 Anniversary Milestones 29 From the Board Room 33 Banking Center News 33 In Memory of 41 Honorable Mentions 46 Associate Members Corner 48 Banking on Community 52 Bankers on the Move 57 Advertisers Index 12 16 58 In This Issue Reconnect at the IBA Annual Convention. “I have a mission statement.” Knowledge is power.
6 MAY / JUNE 2021 In the last couple of years, the Indiana Bankers Association has been creating member benefits reports of achievements and accomplishments. It’s our pleasure to offer you the 2020 IBA member benefits report, shown on pages 8 and 9 in this issue of Hoosier Banker. This report carries extra meaning because it illustrates that, despite the challenges of a pandemic year, your IBA continued in service to membership, just as you continued in service to your customers and communities. Among the accomplishments shown in the report, we are particularly proud to have expanded college-level educational offerings in Indiana through the establishment of banking minors at two institutions: Ball State University and Purdue University Northwest. Considering that it was just in 2018 that the IBA set a goal to create secondary educational opportunities, this is fast-moving progress that reflects our commitment to the next generation of banking talent. Additionally in 2020, IBA expanded awards and honors, granting two Commitment to Community awards instead of one, bestowing 10 Leaders in Banking Excellence awards, and again presenting two VANTAGE VIEWPOINT Don’t Miss Out! awards at the Banking on Women Conference. We always welcome opportunities to shine a spotlight on our valued members. On this page, pie chart graphs of income and expenses tell an underlying story. Note that less than a quarter of what the IBA spent last year went to management and general administration, while the rest went to providing quality education, training and events; government relations advocacy; product and service offerings; and communications to keep us connected. Conversely, barely more than one-fourth of our income derives from membership dues, a point of pride in the IBA having one of the lowest dues structures among state bankers associations nationwide. Instead of heavy reliance on dues dollars, we gain income from offerings that benefit members, as well as investments and other sources. Thanks to your support, we fared well in 2020. The biggest takeaway from last year, though, is reflected in the COVID-19 response section on the facing page, as detailed by Chairman Zahn. Every portion of the pandemic response had to be implemented with speed and accuracy in order to accommodate your needs while navigating through the unknown. Finally, not shown in the report but deeply appreciated is the strength, fortitude and resilience of the Indiana banking community. Clearly 2020 was a trying year, but a year made possible because of our association with each other, reaffirming that we are stronger together. It was an honor to serve you in 2020, and it remains an honor to serve you in these brighter days of 2021. HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indiana.bank @grbanker Annual Washington Trip July 18-20 Join the chorus and make your voice heard on industry issues at our nation’s capital. Annual Convention Aug. 15-17 Bank leaders convene, connect and conduct IBA business in scenic French Lick. FLD Leadership Conference Sept. 21-22 Emerging leaders build skills and strengthen networks at this premier FLD event. For event updates, visit: indiana.bank/calendar 27% Membership Dues 4% Communications 28% Education, Training & Events 10% Investment Income 27% Products & Services 4% Contributionss IBA INCOME 5% Communications 24% Management & General 43% Education, Training & Events 20% Government Relations 8% Products & Services IBA EXPENSES
Hoosier Banker 7 This issue of Hoosier Banker marks several milestones. We’re well past the one-year mark since the onset of COVID-19, and we are now moving forward in big ways. Convention, anyone? This issue’s cover story makes me look forward to reconvening in French Lick and reconnecting with banker friends. Another milestone is the publication of the IBA member benefits report, available on the next two pages. This infographic version of an annual report offers a quick glance at the prior year, giving us a chance to see how far we’ve come as a unified community. While you can see the impressive income/expense pie charts on the facing page, and the many achievements of the IBA in the next two pages, please note on this page IBA’s COVID-19 response statistics. The year 2020 represents a bonus for IBA members, because your Association went above and beyond to help us navigate a difficult year. First, while many other trade associations struggled financially during pandemic shutdowns, the IBA created its IMPACT Players program – Industry Makers Pledging Assistance, Cooperation & Togetherness – of 23 dedicated associate members who provided substantial support to ensure the IBA could maintain its high standards throughout the pandemic. Second, the IBA kept members informed and connected. Bankers in Indiana didn’t have to pore through the barrage of updates from the Small Business Administration, Department of the Treasury and other sources, because the IBA vetted that information and presented it to membership in clear, concise language. The IBA distributed some 150 emails, orchestrated 64 CEO peer group calls, initiated a Google Group devoted to pandemic topics, set up a COVID-19 webpage and launched two e-publications to address related topics. Third, the IBA helped keep the public informed. In addition to its general news releases, the IBA issued a dozen releases in 2020 that were specific to PPP loans, coin circulation and other issues to let customers and communities know how hard banks worked to help keep Hoosiers fiscally sound and our economy healthy. Your efforts did not go unnoticed, thanks to these communications. Every one of these offerings represents support to the Indiana banking community to help us cope and conquer the obstacles of a worldwide crisis. We’re all still standing today, despite the pitfalls of 2020, in part because the IBA delivered resources that were timely, helpful and a lifeline to getting to the other side. Thank you all for being part of this great Association. HB CHAIRMAN’S REPORT First Savings Bank • @fsbindiana • March 24 When one of southwest Indiana’s favorite attractions, the Indiana Theater, lost a projector, our Daviess County crew knew they had to think fast. Area President, Kent Parisien, and Personal Banker, Holly Graber, presented them with a check to help repair the projector. Home Bank • @HomeBank_1890 • March 19 In recognition of Home Bank’s 130 year anniversary and Dan Moore’s legacy of creating a culture of leadership and giving back, Home Bank’s gifting program has donated $130,000 to Stability First. Crossroads Bank • @CrossroadsBank • March 16 Crossroads Bank donated a total of $7,000 to nonprofit organizations in the communities we serve. Our Peru branch presented a gift certificate to Above All Things, Inc. #ProudToBeYourCommunityBank Springs Valley Bank & Trust Company • @SpringsValleyBT • Feb. 23 Springs Valley recently donated two Chromebooks to the Dubois County Health Department. These Chromebooks will assist with the administration of COVID-19 vaccines at the upcoming mass vaccination clinics. A big thank you goes to so many community members today and always! Hoosier Heartland State Bank • @myHHSB • Feb. 9 HHSB is proud to partner with Circles Putnam County! Circles is a nationally known, proven and innovative strategy of connecting people across income lines in an effort to support individuals & families from poverty to stability. Visit http://circlesputnamcounty.org to learn more! Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter Michael S. Zahn Chairman Indiana Bankers Association President and CEO First Federal Savings Bank, Huntington NEWS Releases 12 WEBPAGE Creation 1 IMPACT PLAYERS 23 Industry Makers Pledging Assistance, Cooperation & Togetherness PPP/COVID-19 150 EMAILS 64 CEO PEER GROUP CALLS GOOGLE GROUP CREATION 1 2020 Publications IBA COVID-19 Updates IBA IMPACTful Insights 2 IBA COVID-19 RESPONSE
8 MAY / JUNE 2021 Indiana Bankers Association Member Benefits Report 2020 BANK MEMBERSHIP IBA 732 728 239 Signature Event Attendees s Forums s Mega Reimagined/Convention s Banking on Women Conference Number of Seminars, Webinars, Schools, Conferences and Forums 987 Total Bankers Utilizing IBA Education/Training Programs 4654 116 Bank members 100% Indiana-based banks 2,052 Branches/offices 30,781 Hoosiers employed BANK MEMBERSHIP PRODUCTS & SERVICES 21 12 164 Associate Members Preferred Service Providers Diamond Associate Members 87% Associate Member Retention GOVERNMENT RELATIONS Member Bank Participation 76% Individual Donors 1416 Candidates Supported 143 Contributor Banks FAIR SHARE 72 Bills Monitored 900+ 1 3 6 2020 IBA Annual Washington Trip Attendees (virtual) Banks Participating in Grassroots 101 EDUCATION & TRAINING BANKPAC 200% CLUB 17 Banks Represented in Attendance 97% $0 $50K $100K $150K $200K $250K $350K BANKPAC Dollars Raised $301,000 Dollars Distributed $282,000 $300K
Hoosier Banker 9 Scholarships Awarded 1 $1500 FUNDED 14 Member Awards Presented COMMUNICATIONS s 10 Leaders in Banking Excellence s Woman of the Year s Woman on the Rise s 2 Commitment to Community 5 IBA Publications Hoosier Banker E-News Directory of Financial Institutions IBA Insighter Commitment to Community Videos Videos Added 9 Google Groups Member e-platform for idea-sharing 17 Future Leadership Division Members 413 Student Applicants 21 BankLEAD Internship Program FLD Focus NEXT-GEN BANKERS 1241 Followers 2359 Followers 2342 Followers 338 Followers Next-Gen Banker Videos4 FLD ATTENDEES 0 20 40 60 80 100 55 s 96 s 59 s FLD Coffee Club Leadership Conference Day at the Statehouse BANKING MINORS 2 ESTABLISHED OP-EDS Published 2 General News Releases 9
10 MAY / JUNE 2021 ALREADY SOLVING YOUR NEXT CHALLENGE. Capital Planning Budgeting Profit Projections ALCO Capital Planning Decay/Beta Analysis Regulatory Investment Portfolio Investment Duration Investment Mix Interest Rate Risk Loan Pricing Floors From regulatory requirements to working toward enhancing your financial institution’s performance, the challenges are growing even more demanding by the day. Fortunately, we understand what you’re up against. We can help you navigate the many complexities of your operation with confidence, as well as provide you with solutions that are backed by our own experience and resources. We know how to get you there, because we’ve already been there. Learn more at www.bokfinancial.com/institutions. Bank dealer services offered through Institutional Investments, Bank of Oklahoma, which operates as a separately identifiable trading department of BOKF, NA. Services may be offered under our trade name, BOK Financial Institutions Group. BOKF, NA is the bank subsidiary of BOK Financial Corporation. Some services may be offered through BOK Financial Securities, Inc., member FINRA/ SIPC, and an affiliate of BOKF, NA. Investment products are: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE Sign up to receive invitations to upcoming webinars offered throughout the year. Go to bokfinancial.com/webinar or scan the QR code.
Hoosier Banker 11 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 Senior Lender Forum June 2 • Group 1 • IBA Center June 3 • Group 2 • IBA Center Measuring Financial Condition and Performance for Agricultural Business June 14 • IBA Center To Catch a Thief: Covid-Related Scams, Fraud and Keys for Prevention June 14 • virtual June 15 • virtual BSA/AML Compliance School June 15-16 • IBA Center Emerging Leaders Digital Program June 16 • virtual Essentials of Banking Series: Session 1 June 17 • IBA Center CFO Forum June 17 • Group 1 • IBA Center June 18 • Group 2 • IBA Center Digital and Social Strategy Bootcamp June 21 • IBA Center Marketing Forum June 22 • IBA Center IT Forum June 23 • Group 1 • IBA Center June 24 • Group 2 • IBA Center Auditing Reg E June 29 • IBA Center Home Mortgage Disclosure Act Seminar June 30 • IBA Center Financial Analysis and Cash Flow Bootcamp July 6-8 • IBA Center Branch Manager Forum July 13 • IBA Center Leadership Development Program - Session 1 July 13-15 • Abe Martin Lodge • Nashville Emerging Leaders Digital Program July 14 • virtual 2021 Cannabis Banking Update July 14 • IBA Center Annual Washington Trip July 18-20 • Washington, D.C. Human Resource Director Forum July 20 • IBA Center Training Director Forum July 21 • IBA Center Risk Management Forum July 22 • IBA Center Consumer Lending School July 27-28 • IBA Center Tech Shop: Acting Like You've Been Breached July 29 • IBA Center Administering Construction Loans Aug. 3 • IBA Center CRE Appraisal Review and Interpretation Aug. 4 • IBA Center Stepping Up to Supervisor Aug. 5 • IBA Center Annual Convention Aug. 15-17 • French Lick Resort CBC Session Aug. 10 • IBA Center Aug. 11 • IBA Center Aug. 12 • Indiana Wesleyan University • Fort Wayne Emerging Leaders Digital Program Aug. 17 • virtual Branch Management Series: Session 3, Growing the Retail Branch Aug. 17 • IBA Center Essentials of Banking Series: Session 2, Business Operations and Management Aug. 18 • IBA Center Compliance for Loan Processors Aug. 19 • IBA Center Leadership Development Program - Session 2 Aug. 24-26 • Abe Martin Lodge • Nashville Commercial Lending School Aug. 23-27 • IBA Center Opening New Account Documentation Aug. 31 • Fort Wayne Sept. 1 • IBA Center Advanced Agricultural Lenders Conference Sept. 14-15 • DoubleTree by Hilton • Lafayette FLD Leadership Conference Sept. 21-22 • The Westin Indianapolis Mortgage Lending School Sept. 21-23 • IBA Center Cybersecurity Conference Sept. 29-30 • Renaissance Indianapolis North Hotel • Carmel Mega Conference Oct. 11-13 • Indiana Convention Center • Indianapolis Banking on Women Conference Nov. 3-4 • Sheraton Indianapolis North Hotel NOTE: For the latest information about IBA event dates, locations and format, please visit: indiana.bank/calendar
12 MAY / JUNE 2021 Together Again Grab your seat, it’s time to meet COVER STORY The last year and a half has been a rollercoaster ride that we will not soon forget. Years from now, many of us will be telling our kids and grandkids about the challenges and trying times that the year 2020 included. Divisive elections, COVID-19, social issues, you name it – it happened in 2020 and then spilled over into the cold start of 2021. The only thing missing was an invasion from outer space. Yet despite all the negativity, here we find ourselves at the beginning of a new season. Vaccines are creating hope for millions of Americans, and optimism is growing for a new normal no longer dominated by COVID-19. It is with this spirit that the Indiana Bankers Association is moving forward. While IBA staff has enjoyed the opportunity to stay connected with you through Zoom and other meeting platforms, we are beyond thrilled to once again prepare for face-to-face interaction with our members that we so proudly served throughout the pandemic. As we approach the rest of 2021, the IBA is looking forward to reengaging with members through in-person events and other opportunities that were previously put on hold because of COVID-19. While you consider your plans for the remainder of the year, take a few moments and consider reengaging with your Association and your colleagues through these upcoming in-person opportunities: 1. Reconnect at the IBA Annual Convention. The IBA Annual Convention is scheduled for Aug. 15-17 at the beautiful and historic French Lick Resort. If you have missed your interactions with peers in the industry, this is a worthwhile opportunity to reconnect with your banker and associate member friends, as this will be the first large-scale, in-state event that the IBA hosts as we begin opening back up. Over the years, the IBA Annual Convention has been a meeting place for members to enjoy a round of golf, celebrate the past year of accomplishments, look ahead to future opportunities, and catch up with other banking professionals for networking and camaraderie. The IBA Annual Convention presents outstanding industry speakers, the annual IBA chairman’s banquet and the Future Leadership Division’s silent auction to benefit Indiana BANKPAC, which will feature a one-of-a-kind painting from national anthem artist Joe Everson. As a bonus this year, the IBA Annual Convention will include the induction ceremony of the 2020 and 2021 classes of the IBA Leaders in Banking Excellence. For those who have not witnessed this special event, it will be an excellent opportunity to celebrate the careers of distinguished professionals who have upheld the honorable legacy of Indiana banking. So if you find yourself eager to get out and reconnect with others, be sure to visit with us in French Lick. Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indiana.bank @joshmyersIN
Hoosier Banker 13 2. Be an industry advocate. The IBA gives the state banking community a voice in the Indiana General Assembly and in Washington, D.C., advocating for a healthy banking environment by initiating, negotiating and lobbying for the enactment of business-positive laws and regulations, and by opposing measures that would be hurtful to banks and their customers. Joining in the effort are IBA bankers who work in the industry every day and can provide real-life stories to the banking issues that matter. This advocacy function has never been more important as the banking industry navigates the aftermath of the COVID-19 pandemic, the Paycheck Protection Program and other priorities to ensure our communities have every opportunity to succeed. Consider getting involved by learning more about Indiana BANKPAC, and be sure to watch for IBA action alerts through which you can reach out to legislators and regulators to make your voice heard. Furthermore, engage in grassroots advocacy by joining your IBA peers in Washington, D.C., as we relaunch our in-person trip July 18-20. In addition, look out for IBA regional meetings for an opportunity to network with other bankers and state lawmakers from your area. 3. Network through the FLD. The IBA’s Future Leadership Division is committed to connecting next-generation banking professionals. During the pandemic, the FLD offered virtual networking through Coffee Club meetings, the 2020 Leadership Conference and 2021 Day at the Statehouse – though we all know that networking through a computer screen is not as impactful as connecting face-to-face. The FLD is now preparing to reengage members with networking opportunities to build your peer networks and connect with other emerging leaders, including the FLD Leadership Conference set for Sept. 21-22 in Indianapolis. Sign up for FLD membership if PHOTO CAPTION: The IBA Annual Convention returns to the grandeur of French Lick Aug. 15-17. Photo courtesy of French Lick Resort.
14 MAY / JUNE 2021 with industry experts, top-notch keynote speakers and numerous award programs to shine a spotlight on IBA members. This year’s Mega Conference will offer the same quality programming you have come to expect, bringing together some 1,300 of your closest banking friends. So mark your calendars and celebrate banking at the 2021 Mega Conference. COVID-19 precautions, IBA staff will be ready to open our doors and welcome you for learning opportunities throughout the second half of 2021. Many of the staple educational offerings offered each year are already scheduled and can be found online on the IBA’s education calendar. 5. Immerse yourself at the IBA Mega Conference. The 2021 IBA Mega Conference is scheduled to take place Oct. 11-13 in Indianapolis. As the largest IBA event of the year, and the largest statewide banking event in the nation, the Mega Conference was pushed to October in anticipation that the COVID-19 vaccination process would be mostly completed and the virus under control, allowing for large group gatherings to safely take place. If you have ever attended the IBA Mega Conference, you know this event is bustling with activity, including the vibrant exhibit hall featuring our valued service providers, dozens of educational tracks you are an emerging bank leader, or consider who else in your bank would benefit from this organization. 4. Grow and develop through IBA educational offerings. Prior to the COVID-19 pandemic, the IBA training center was abuzz with banking seminars, group forums, schools and other educational events taking place to allow bankers to build their skills and enhance their careers. Many bankers enjoyed the opportunities to get to know their peers, learn new ideas and information, and network over lunch and afternoon cookies. Though some procedures may not look exactly like you remember, due to The IBA Annual Washington Trip returns to the nation’s capital July 18-20. The Future Leadership Division hosted a virtual Day at the Statehouse in April and is now making plans for its in-person FLD Leadership Conference, set for Sept. 21-22 in Indianapolis. While last year’s Mega Reimagined was held virtually, this year the IBA Mega Conference takes place at the Indianapolis Convention Center Oct. 11-13.
Hoosier Banker 15 6. Lend your support through committee involvement. The IBA is a member-driven organization that relies on the insights of you, our member bankers, to create the best programs and strategies to succeed. If you would like to get involved with the IBA at an enhanced level to offer your insights with other bankers who share similar interests, consider joining an IBA committee. 7. Experience the energy of the IBA Banking on Women Conference. Many bankers and associate members experienced the virtual Banking on Women conference in 2020. This year, the IBA is excited to return to the in-person format that truly promotes the importance of fostering relationships and inspiring women to reach their career goals and aspirations. This annual event is another opportunity for professional development and leadership training through powerhouse speakers, and attendees will be able to take advantage of the abundant networking opportunities. Mark your calendars for Nov. 3-4, and plan to get engaged through the Banking on Women Conference. As we near the halfway point of 2021 and see the light at the end of the tunnel, we hope that you are looking forward to reconnecting in person as much as we are. Be on the lookout for these opportunities and more to reconnect with the IBA and your peers. If you have questions about reengaging with the IBA or upcoming opportunities, please contact me at 317-333-7165 or jmyers@ indiana.bank. HB • Learn more about the FLD at: indiana.bank/futureleadership-division • View educational offerings at: indiana.bank/calendar • Explore committee options at: indiana.bank/committeesignup The 2021 Banking on Women Conference resumes in person, scheduled for Nov. 3-4 in Indianapolis. • Hoosier Banker, IBA's flagship publication, is distributed bimonthly to 7,000+ digital subscribers, plus 4,000+ hard copy subscribers. Email feature articles for consideration, or items for Associate Members Corner, to lwilson@indiana.bank. Deadlines are the first of the month preceding publication. Associate Member Publication Opportunities Associate members of the Indiana Bankers Association are invited to share information and news with Indiana bankers through Hoosier Banker magazine and the IBA Service Provider Showcase e-newsletter. Not sure who to contact? Email any one of us, and we’ll follow up, or call 317-387-9380. • Service Provider Showcase, a monthly e-newsletter, keeps member banks connected with the service provider community. Associate members may submit one item per month, including current updates, company accolades and upcoming webinars/events. Email materials to jmyers@indiana.bank or ebrooks@indiana.bank.
16 MAY / JUNE 2021 ARTICLE SPOTLIGHT Bank Exam Prep Center Providing vital exam preparation The general public and elected officials have relied on banks’ critical role throughout the COVID-19 pandemic. Banks in turn have relied on regulators’ commitments when delivering crucial support to small businesses. In Indiana and across the United States, banks stepped up and executed the Paycheck Protection Program and other initiatives to assist small business customers. As with any new government program, and especially one that was originated, implemented and executed so swiftly, there potentially will be challenges from regulators. Often it is not determined until after everyone had a chance to pause and look back what could have or should have been done differently. These types of hindsight determinations may be highlighted during your next exam. As you continue to work with your customers, it is critical that regulators take a consistent and fair approach, and that your bank be prepared for success. The Indiana Bankers Association is a founding member of the Coalition of Bankers Associations that created the Regulatory Feedback Initiative over 10 years ago. You have heard me encourage you to participate in the anonymous post-exam RFI survey at the conclusion of each of your various examinations. Survey data is collected nationwide and by state, and the compiled information has been useful to banking delegations when meeting with examiners and/or legislative bodies regarding regulatory matters. Survey results help demonstrate the need for fair and consistent practices from agency to agency and region to region, as well as provide an “audit” of regulators’ practices. In an effort to provide timely and beneficial information to you as you prepare for upcoming examinations, the Coalition has developed a powerful new resource Rod Lasley Executive Vice President - Operations & Member Services Indiana Bankers Association rlasley@indiana.bank @rodlasley to assist banks called the Bank Exam Prep Center. This centralized resource is accessible through the IBA website’s Regulatory Feedback Initiative page at indiana.bank/regulatory-feedback-initiative. The Bank Exam Prep Center not only contains the link to access the post-exam survey, but also provides other tools to assist you in your exam preparation, including: • Regulatory Radar – What Are Regulators Focusing on? • Building Blocks – Keys to a Successful Exam • Exam Takeaways – Exploring Results • Expert Advice – Observations From Industry Experts • Hot Tips – Tell Us What You Are Hearing (anonymously, of course). After additional survey data is compiled, three other areas are to be added: Exam Trends; Hot Topics; and No Regrets – What Bankers Wished They Knew Prior to the Exam. At the IBA, we believe the Bank Exam Prep Center will become your “go-to” as you prepare for future exams. To maximize its value, however, Indiana banks need to commit to completing the post-exam surveys so that information can be available for you and your peers for upcoming examinations. As a reminder, all information collected and presented is anonymous. Please take a moment to check out the Bank Exam Prep Center so that you can complete the post-exam survey regarding your most recent examination. Your participation helps the Indiana banking community and leads the way in making this offering a valuable resource in preparation for your next examination. For more information contact me, Rod Lasley, at rlasley@ indiana.bank or 317-387-9380. HB
Hoosier Banker 17 Knowledge is power. The pandemic has challenged the way banks operate. You'll likely be faced with unique challenges during your next exam. Get exam knowledge you need by reviewing feedback from your peers before your next exam. Bank Exam Prep Center is your regulatory exam central. Prep before your exam and be sure to return after to take a survey and share your experience. • What questions are examiners digging in on? • What are the hot topics as field examiners meet with your peers? • How are regulators addressing COVID-19 lending practices? • What discussions are taking place over pandemic operational challenges? Visit the Bank Exam Prep Center indiana.bank/regulatory-feedback-initiative
18 MAY / JUNE 2021 SALES / MARKETING High-Touch Coaching In a high-tech world Relationship management has changed. In order to be successful in today’s highly digitized world, relationship managers need to cultivate the art of high-touch selling. At the heart of high-touch selling is making meaningful human connections that focus on service instead of sales. The book, Go-Givers Sell More, by Bob Burg and John David Mann, tells us that the word “sell” is derived from the Old English word “sellan,” which means “to give.” Good service is selling. Moreover, high-touch selling fits well into what today’s relationship managers want, which is to: • Know that their work matters. • Make a difference. • Work collaboratively with a team. • Work remotely and independently. These desires go hand-in-hand with a distaste for an aggressive sales culture that prizes sales over service. High-touch selling is about having great interactions with clients, providing solutions for their clients that solve their problems, and also creating revenue for the bank. Selling is not about the product or about the relationship manager, but about the client. How does a bank ensure that its relationship managers are competent in high-touch selling? The answer is high-touch coaching. Experience tells us that most banks are good at setting sales goals and measuring results, but the statistics around coaching tell a different story. First, let’s examine facts about salespeople today:* • 91% are too trusting of prospects. • 68% have difficulty recovering from rejection. • 90% do not have a clearly defined and effective selling system. • Only 32% have written goals. Next, let’s look at the weaknesses of managers as coaches: • Do not consistently coach and debrief. • Ineffective at joint sales calls. • Do not ask questions. • Have a need for approval from salespeople. • “Rescue” salespeople. • Do not have a sales process. • Ineffective at commitments. • Beliefs do not support coaching. • Do not have goals and a plan. • Do not know what motivates salespeople. Less than 2% of managers are adept at coaching. There are many reasons for this, including: they themselves were not coached or had a bad experience with coaching; they were elevated to a team lead or management position based on their sales success and not their coaching performance; and they have not had any coaching training, either formal or informal. Short of establishing a formal coaching program, there are some simple, concrete steps managers can take to initiate high-touch coaching and high-touch selling. It begins with managers developing an understanding of what motivates their salespeople. Less than 7% of sales managers know the personal goals of their people. Since most relationship managers today are intrinsically versus extrinsically motivated, this is key in the manager-salesperson relationship, as Tony Cole Founder Anthony Cole Training Group LLC tony@anthonycoletraining.com Anthony Cole Training Group LLC is an associate member of the Indiana Bankers Association.
Hoosier Banker 19 * All statistics are from Objective Management Group evaluations. well as the relationship manager-client relationship. High-touch coaching occurs when managers are proactively asking questions of their team members, giving feedback on a regular basis and showing a genuine interest in the development of the relationship manager. To get started, managers should: 1. Set time aside for a personal goal discussion. This should be done in-person or via a video conference call so that there is eye contact. Relationship managers are motivated first by their personal goals. The goal is to find out what drives the relationship manager and what is important to them. Encourage them to dream big and freethink about their life goals, including family and personal aspirations. No goal should be too big or too small. After that, goals should be translated into SMART (Specific, Measurable, Attainable, Realistic and Time-based) goals. 2. Set professional goals. Begin by asking the relationship manager to consider how meeting their professional goals can help them reach their personal goals. Set professional goals that not only include targets for sales, cross-sell and retention, but also what the relationship manager has shared is important to them. (While many goals are set by lines of business and other institutional needs, creating room for additional goals set in consultation with the relationship manager can be beneficial. If a life goal, for example, is to one day write the great American novel, make it a goal for the relationship manager to identify volunteer opportunities at writing workshops that can be done as part of your institution’s commitment to the community.) 3. Set regular check-ins. Establish a rhythm for follow-up and discussion about both the relationship manager’s personal and professional goals. These check-ins should include managing activities identified in the plan, holding relationship managers accountable to activity levels, helping to identify choke points, coaching how they are doing what they do, asking for the opportunity to observe sales calls and encouraging debriefs. High-touch coaching and selling is ultimately about developing a meaningful human connection, a relationship. This has to begin with the sales manager and the relationship manager before it can translate into a relationship manager and client relationship. When this is accomplished – and it’s not a one-and-done proposition, but an art that requires regular attention – banks can develop service-to-sales career paths for their relationship managers that lead to success for all. HB
20 MAY / JUNE 2021 PSP SHOWCASE Shawn M. Norris Vice President NFP Registered Health Underwriter and Chartered Healthcare Consultant IBA Group Insurance Trust shawn.norris@nfp.com IBA Group Insurance Trust is a Preferred Service Provider of the Indiana Bankers Association, and NFP is an IBA associate member. Providing Stability In a time of uncertainty To say that the year 2020 was challenging and unprecedented in our lives would be an understatement. With the onset of a global pandemic and election fervor, it was certainly a year to remember (and for some to forget). It is in times like these that stability provides the strength needed to weather the events surrounding our lives and businesses. Financial institutions were essential for helping their business and individual clients maintain stability throughout the pandemic that still overshadows us today. These same financial institutions are now looked to by their associates to ensure they have health insurance coverage that will protect them from the unknowns of COVID-19. For participating member banks, the IBA Group Insurance Trust has helped provide this stability to members in light of the many factors surrounding health insurance costs and coverage. With the size and scope provided by the 45+ participating member banks, the Trust has remained strong and has provided average renewals for the 2021 plan year well below national averages. This follows a year in which all participating banks received a reduction in their health plan costs. For the 2021-22 plan year, participating member banks will have access to additional resources and cost savings for their associates. Some program examples are: • Specialty copay assistance program – For eligible members, this copay assistance will cover most, if not all, out-of-pocket expenses for specialty medications. • Omada Health – This is a digital health solution focusing on prevention and assisting members with diabetic and hypertensive conditions. A personalized program with one-on-one health coaching is available at no extra cost for members. • Employee engagement and well-being – One of the biggest challenges plaguing human resource departments today is delivering an economical, comprehensive, total engagement solution. The PeopleEQ Platform addresses these challenges by strategically combining an employer benefits and communication hub with an employee resources dashboard plus lifestyle well-being programs, with the result of creating a cost-effective, comprehensive and engaging platform. • Ancillary coverage – For new and existing member banks, a change in providers for ancillary coverage (life, disability, worksite) will produce significant cost savings and provides new value-added programs such as an employee assistance program, ID theft credit monitoring solutions and more. All of these solutions have one common goal: to provide your associates with the tools and resources they need to better manage their healthcare needs. The IBA Group Insurance Trust remains committed to providing emerging and relevant resources to continue providing long-term stability during these volatile times. For further information regarding the IBA Group Insurance Trust, contact Shawn Norris of NFP at shawn.norris@nfp.com or 812-422-4000, or Rod Lasley of the Indiana Bankers Association at rlasley@indiana. bank or 317-387-9380. HB
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22 MAY / JUNE 2021 Interviewing a Candidate Who breaches fiduciary duty COMPLIANCE CONNECTION Brett J. Ashton Partner Krieg DeVault LLP bashton@kdlegal.com Charles O. Richert Associate Krieg DeVault LLP crichert@kdlegal.com Krieg DeVault LLP is a Diamond Associate Member of the Indiana Bankers Association. Question: For our chief lending officer position, we recently interviewed a candidate who currently serves in the same position at our largest competitor. In the interview, the candidate voluntarily disclosed several facts about the strategic plan of his current bank, and discussed how he could assist our bank in pursuing similar strategies to compete. While the candidate has great ideas, should we be concerned that he may be breaching some kind confidentiality requirement with his current bank that could create a problem for our bank if we hire him? Answer: Yes. While on the surface it may sound beneficial that the candidate is sharing potentially confidential information from your competitor, you are right to be concerned that this may not be information he should be sharing, or that your bank should be using. If this individual is an officer of the competitor bank, Indiana law imposes certain fiduciary duties on actions while serving in that role. These obligations include, but are not limited to, the three fiduciary duties imposed on officers and directors of any Indiana corporation: good faith, care and loyalty. To prevail on a claim for breach of fiduciary duty in Indiana, a plaintiff must show: “(1) the existence of a fiduciary relationship; (2) a breach of the duty owed by the fiduciary to the beneficiary; and (3) harm to the beneficiary.”1 It is a breach of duty when officers divert corporate assets or opportunities for their own personal gain, or fail to act in the best interest of their corporations. If the chief lending officer candidate is disclosing confidential information about your competitor, these actions would certainly appear to breach his duty This information is provided for general education purposes and is not intended to be legal advice. Please consult legal counsel for specific guidance as to how this information applies to your institution’s circumstances or situation. 1 Good v. Indiana Tchrs. Ret. Fund, 31 N.E.3d 978, 983 (Ind. Ct. App. 2015) 2 Case details available at: federalreserve.gov/newsevents/ pressreleases/files/enf20210330a1.pdf. of loyalty to his current employer/your competitor bank that is not in that bank’s best interests. Further, if you hire this candidate and pursue the goals he has disclosed, the competitor bank may argue that you did so intentionally. While these issues rarely attract the attention of regulators, recently the Federal Reserve Board of Governors issued a prohibition order against two Wyoming bankers for similar activities to those you describe.2 In that case, the individuals both worked for Central Bank and Trust in Lander, Wyoming, before switching to another Wyoming bank, Farmers State Bank. The two bankers invested in Farmers while still working at Central and leveraged contact lists and other confidential information from Central during their transition to Farmers. The Board found that both bankers violated state and federal law, including breach of fiduciary duty and participating in unsafe and unsound banking practices, and permanently banned them from participating in any activities within the industry. In sum, think twice before hiring someone who breaches fiduciary duty to their current bank. Not only could this individual face civil liability for breaching fiduciary duty, but they may also attract unwanted attention from regulators. Further, while it is your competitor being harmed with the indiscretion today, it could be your bank’s harm tomorrow if you hire this candidate … who may later interview with another bank. HB
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