HB HOOSIER BANKER MAGAZINE indiana.bank PLUS! 2021 Mega Conference NOVEMBER / DECEMBER 2021 Michelle W. Bowman Serving the Federal Reserve System
Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the annual IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, rlasley@indiana.bank. This prestigious distinction, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who have left their mark in Banking Community Service Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. Now through April 30, 2022, the Indiana Bankers Association is accepting nominations for the 2022 CLASS of the IBA Leaders in Banking Excellence.
DIRECTORS & STAFF HOOSIER BANKER MAGAZINE indiana.bank 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. 6 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 Lisa Arnold, South Region...................................................................... Home Bank, Martinsville 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 Rod Lasley ............................................ Executive Vice President-Operations & Member Services Dax Denton ............................................................Senior Vice President - Government Relations Christina M. Bennett, CMP ....................................................Vice President - Meetings & Events Laurie A. Rees ...................................................................Vice President - Education & Training Ross Teare .......................................................................Vice President - Government Relations Laura Wilson ........................................................................... Vice President - Communications Josh Myers ........................................................Assistant Vice President - Member Engagement Emily Brooks ..............................................................................Member Engagement Specialist Susan Clark ......................................................................Events & Products/Services Assistant 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.
Hoosier Banker 5 CONTENTS 10 COVER STORY Michelle W. Bowman: Serving the Federal Reserve System 16 ARTICLE SPOTLIGHT Sparks Flew at Mega Ignite! Emily Brooks, IBA 20 SPECIAL TRIBUTE Paul Freeman: Lasting Legacy to Indiana Banking FEATURES 6 Vantage Viewpoint Amber R. Van Til, IBA 7 Chairman’s Report Michael S. Zahn, First Federal Savings Bank 9 IBA Calendar of Events 44 Developing our Strongest Assets Rebeca Romero Rainey, ICBA 46 Banking On Inclusion Robert S. Nichols, ABA 48 Surging Deposits Tepid Loan Activity Carl D. White II, Federal Reserve Bank of St. Louis FLD FOCUS 22 2021 FLD Leadership Conference Josh Myers, IBA IBA INSURANCE SOLUTIONS 26 'Jugging' Incidents Chuck Maggard, IBA Insurance Solutions INDIANA BANK & THRIFT STOCK UPDATE 28 Stock Analysis Michael A. Renninger, Renninger & Associates LLC DIRECTORS / SENIOR MANAGEMENT 30 New Mortgage Modification Options Andrea F. Pringle, The Baker Group HUMAN RESOURCES 32 FMLA Fraud and Abuse Debra A. Mastrian, SmithAmundsen LLC PSP SHOWCASE 34 PSP Year-End Summary 2021 Rod Lasley, IBA COMPLIANCE CONNECTION 40 Elder Abuse Brett J. Ashton, Krieg DeVault LLP AG BANKING 42 Agricultural Data and Technology Brady Brewer, Purdue University CLOSING NOTE 58 Retirement Reflections Paul W. Freeman DEPARTMENTS 25 Banking Center News 31 In Memory of 38 Anniversary Milestones 41 Honorable Mentions 43 Associate Members Corner 47 Taking It Easy 51 Bankers on the Move 57 Banking on Community 57 Advertisers Index On the cover: Gov. Michelle W. Bowman poses in the boardroom of the Eccles Building, headquarters of the Federal Reserve System. Cover photo and page 11 photo by Zoeica Images DC Documentary Photography. 18 58 In This Issue “It has been my privilege to serve Indiana bankers for the past 34 years.” 2021 Mega Conference Recap 10 Gov. Michelle W. Bowman
6 NOVEMBER / DECEMBER 2021 For this final Hoosier Banker of 2021, I’d like to thank Gov. Michelle W. Bowman of the Board of Governors of the Federal Reserve System for being our cover story feature. We asked Gov. Bowman to share her insights with our readers, because she is the first to serve on the Board in a specific role, created by Congress, to be filled by a community banker. She has a community banker background, and we are grateful for her service. I’d also like to thank you, the members of the Indiana Bankers Association, for enthusiastically embracing recent opportunities to gather again in person. More than 700 attendees came to our Mega Conference in October for two packed days of education, inspiration and joyful networking. Given the circumstances, that was outstanding. Thank you to all attendees, sponsors and speakers for making it possible. Also thanks to those who interacted so kindly with a young volunteer at the registration desk. That was my son, Preston, on fall break from high school, who gained a wonderful learning experience by being with you. A perennial Mega highlight is the chance to recognize Five Star Members and Diamond Associate Members, plus banks that were nominated for the 2020 C2C Awards (Commitment to Community). VANTAGE VIEWPOINT Don’t Miss Out! We appreciate all of our members and are grateful to the banks that submitted C2C nominations, each of which tells the winning story of bank community service. This year at Mega, an extra special highlight was the presentation of the Distinguished Hoosier Award to our own Paul Freeman, who recently retired from the IBA. For 34 years, Paul served as a pillar of strength for the IBA, doing whatever it took to deliver top service to members. An article about Paul appears on pages 20-21, detailing some of his many accomplishments. There also are personal comments from Paul in the Closing Note section, page 58. When you read Paul’s words, you’ll understand why he is so highly regarded and now deeply missed. Paul leaves an enduring legacy to the IBA and the full Indiana banking community. As we close out 2021, much is being done to continue to deliver quality opportunities to you, some of which are highlighted on this page. The Indiana Economic Outlook Luncheon, for example, gives you the chance to show appreciation to your business clients by inviting them. We also are working with IBA directors to roll out a new strategic plan in 2022. Additionally, to celebrate IBA’s 125-year anniversary in 2022, we invite member banks to upload histories and photos at indiana.bank/history. Thank you all for another fruitful year, and we look forward to working with you in 2022. HB Amber R. Van Til President and CEO Indiana Bankers Association avantil@indiana.bank @grbanker Security and Risk Management Conference Nov. 16-17 Stay on top of effective ways to protect your customers and your bank. Midwest Agricultural Banking School Nov. 29-Dec. 2 Learn the latest about ag credit and finance at Purdue University. Indiana Economic Outlook Luncheon Dec. 3 Listen and learn about what to expect in the economic landscape for 2022. For event updates, visit: indiana.bank/calendar A skilled craftsman, Paul Freeman carefully hung each panel of the IBA Wall of Excellence.
Hoosier Banker 7 In my first Chairman’s Report to you, back in the January/February Hoosier Banker, I wrote that I looked forward to working with you throughout this year. The year 2021, like all years, has had its highs and lows, which I fully expected. What I didn’t expect was how quickly it would fly by. Time always flies when you’re staying busy and having fun, and I’ve experienced plenty of both. It’s been a busy year, because the Indiana Bankers Association has to move at a fast clip to keep up with the world around us. And it’s been fun, because working with the Indiana banking community means working with top professionals, many of whom are good friends. Much happened during this past year. At the start of 2021, we began by focusing on the Indiana legislative session. Despite pandemic protocols and social distancing, our hard-working elected officials accomplished a great deal during this year’s session. Two key pieces of legislation – civil immunity related to COVID-19, and a fix to a prior law affecting recording requirements – were passed and signed into law in record time. Bankers also stayed busy with the Paycheck Protection Program, allowing us to continue to help businesses in their time of need. A new element in 2021 was the forgiveness portion of the program. As ever, the IBA was at the forefront, helping members to navigate the complex processes and myriad requirements. Throughout the year, the IBA also continued to give us a voice. From coordinated grassroots advocacy efforts to promoting our stories of community service, the IBA regularly provides a platform to let the public know how much we do to support the communities we serve. As for grassroots advocacy, recent alarming developments on Capitol Hill demonstrate how greatly our voice is needed. The IBA also gave us much-needed togetherness in 2021. At the start of the year, while the shutdown was still in effect, the IBA organized multiple gatherings, albeit virtually, not to mention the extremely helpful CEO calls. Then when we were able to gather in person again – first at the IBA Annual Washington Trip, then at the Annual Convention and recently at the Mega Conference – these meetings were accomplished with prudent measures in place so that we could attend in comfort. It’s been an eventful year, a fast-moving year, and a year that I’ll always remember as a highlight of my banking career. Thank you to IBA members and staff for all of your support. I’d especially like to thank my wife Susan and our sons for being my daily inspiration, and my father, Stephen E. Zahn, for being a role model, both professionally and personally. HB CHAIRMAN’S REPORT Centier Bank • @CentierBank • Sept. 29 Our Granger associates presented a community donation to the @SJCsuicideprevention. September is National #SuicidePreventionMonth, a time to raise awareness and spread hope. We thank them for their amazing work in our community! 1st Source Bank • @1stSourceBank • Sept. 28 Our team members had a fun-filled day volunteering at and participating in the JA ‘Fore’ Impact Golf Outing last week! What a great way to come together and do some good! #communityleadership Community First Bank of Indiana • @CFBIndiana • Sept. 14 The @rescuekokomo Fall Food Drive is happening now, and all 3 of our Kokomo branches are official drop-off locations. Bring non-perishable food items through September 24th to help them feed the homeless and hungry in our community. Thank you! STAR Bank • @STARFinancial • Sept. 8 One of the many perks of being on Monument Circle is supporting Christ Church Cathedral’s 55th Annual Strawberry Festival. Kevin Wright, EVP, Commercial Banking, was scooping sweets when STAR Bank’s President, Tom Wright visited. Thanks to all our volunteers! Hoosier Heartland State Bank • @myHHSB • Sept. 3 Our team in Roachdale was proud to present a sponsorship check to NPHS Athletic Director Bart Jochim yesterday in support of @NorthPutnamHS athletics. Good luck to all student athletes this year! Go Cougars! #communitybank #hhsbgivesback Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter Twitter Michael S. Zahn Chairman Indiana Bankers Association President and CEO First Federal Savings Bank, Huntington INDIANA ECONOMIC OUTLOOK Luncheon Click on this ad in HB Digital to register, or visit indiana.bank/education December 3, 2021
8 NOVEMBER / DECEMBER 2021 Laura Barrett Kentland Bank Kentland David Bedwell Horizon Bank Michigan City Randy Brinneman First Bank of Berne Berne Kevin Buechler Freedom Bank Huntingburg Justin Dunmyer Citizens State Bank New Castle Mike Graf Greenfield Banking Company Greenfield Christa Koons First Bank of Berne Berne Matt Reinoehl First Bank of Berne Berne Brian Schwartz Springs Valley Bank & Trust Company French Lick Lance Weirich First State Bank of Middlebury Middlebury Sponsored by: CONGRATULATIONS 2021 GRADUATES FROM IBA-MEMBER BANKS We congratulate you on completing the rigorous 25-month program and joining the more than 20,000 alumni who have gone on to leadership positions in their organizations, associations and the financial services industry. Best wishes for continued success! Educating Professionals, Creating Leaders 5315 WALL STREET #280, MADISON, WI 53718 • PH. 800-755-6440 • GSB.ORG
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 CBC Session 4 Nov. 16 • IBA Center Nov. 17 • IBA Center Nov. 18 • Indiana Wesleyan University • Fort Wayne Security, Fraud and Risk Management Conference Nov. 16-17 • Renaissance Indianapolis North Hotel • Carmel Training Directors Forum Nov. 18 • IBA Center Midwest Agricultural Banking School Nov. 29-Dec. 2 • Purdue University • West Lafayette CBC Deposit Compliance School Nov. 30-Dec. 1 • IBA Center Internal Banking Audit School Nov. 30-Dec. 1 • IBA Center Ag Clinic Dec. 2 • Purdue University • West Lafayette Indiana Economic Outlook Luncheon Dec. 3 • Renaissance Indianapolis North Hotel • Carmel Leadership Development Program - Session 4 Dec. 8-10 • Abe Martin Lodge • Nashville Essentials of Banking: Session 4 - Safeguarding, Providing Exceptional Service and Growing the Bank Dec. 9 • IBA Center Branch Management Series: Session I - New Year, New Start: Key Components for a Successful Year Jan. 11, 2022 • IBA Center Senior Retail Banking Officer Forum Jan. 12 • IBA Center Financial Analysis and Cash Flow Bootcamp Jan. 12-14 • IBA Center BSA Officer Forum Jan. 13 • IBA Center Outside Calling School Jan. 19 • IBA Center Bank Security Officer Forum Jan. 27 • IBA Center Compliance Officer Forum - New Program Feb. 1 • IBA Center Senior Lender Forum Feb. 2 • Group 1 • IBA Center Feb. 3 • Group 2 • IBA Center BSA Graduate School Feb. 8-9 • IBA Center CFO Forum Feb. 10 • Group 1 • IBA Center Feb. 11 • Group 2 • IBA Center Community Bankers for Compliance Program - Session 1 Feb. 15 • IBA Center Feb. 16 • Indiana Wesleyan University Marketing Director Forum Feb. 16 • IBA Center Advanced Credit Analyst School Feb. 17-18 • IBA Center IT & Operations Officer Forum Feb. 23 • Group 1 • IBA Center Feb. 24 • Group 2 • IBA Center IRA Basics March 1 • IBA Center IRA Intermediate March 2 • IBA Center Risk Management Forum March 3 • IBA Center ACH Processing and Compliance March 3 • IBA Center Call Report Update March 8 • IBA Center Training Director Forum March 8 • IBA Center Leadership Development Program - Session 1 March 8-10 • Abe Martin Lodge • Nashville Essentials of Banking: Session 1 - Banking 101 March 9 • IBA Center Branch Manager Forum March 10 • IBA Center Commercial Lending School March 14-18 • IBA Center New Account Documentation and Compliance March 15 • Indiana Wesleyan University March 16 • IBA Center Human Resource Directors Forum March 22 • IBA Center Branch Management Series: Session 2 - Leading, Developing, and Engaging the Team April 12 • IBA Center Universal Banker Certification Program April 13-14 • IBA Center NOTE: For the latest information about IBA event dates, locations and format, please visit: indiana.bank/calendar
10 NOVEMBER / DECEMBER 2021 COVER STORY Michelle W. Bowman Serving the Federal Reserve System On Nov. 26, 2018, Michelle W. Bowman was appointed to the Board of Governors of the Federal Reserve System to complete an unexpired term. Reappointed in January 2020, Gov. Bowman has been sworn in for a full 14-year term that ends Jan. 31, 2034. She fills a specific role created by Congress that provides for an individual from a community banking background to serve on the Board. Miki Bowman’s banking experience stems from her service as vice president of Farmers & Drovers Bank in Kansas from 2010 to 2017. Afterward, she served as the Kansas state bank commissioner from January 2017 to November 2018. Additional past experience, prior to banking, includes service in the Washington, D.C., office of Sen. Bob Dole of Kansas, as a counsel to the U.S. House Committee on Transportation and Infrastructure and the Committee on Government Reform and Oversight, as a director at the Federal Emergency Management Agency, and in capacity as a deputy assistant secretary and policy adviser to Homeland Security Secretary Tom Ridge. Following her time in Washington, Bowman led a government and public affairs consultancy in London before returning to Kansas in 2010. She earned a bachelor’s degree from the University of Kansas, a JD from the Washburn University School of Law, and she is a member of the New York State Bar. Recently, Gov. Bowman shared her insights and expertise in addressing the following questions for Hoosier Banker readers: On the Board of Governors of the Federal Reserve System, you are the first to serve in the role created by Congress for a community banker to fill. What does your unique perspective bring to the Board? As a former community banker and state bank regulator, I bring the unique perspective of someone from a rural, agricultural community, who has worked to support the economic well-being of customers, businesses and their communities. My family has deep roots in rural Kansas and a long history in farming, ranching and banking. I have spent my banking career living, working and raising a family in a rural area, which aren’t typical experiences for a Fed policymaker. I view this diversity as a strength, as Congress recognized in the creation of this role, and I believe the perspective I bring has been critical – especially during the COVID-19 pandemic. We need strong community banks because they help support strong communities and are an important economic driver for small business in America. What are the primary responsibilities of the Board of Governors? The Board has five key responsibilities on behalf of the American people: • Conducting monetary policy through the Federal Open Market Committee to promote the goals of Michelle W. Bowman Member of the Board of Governors Federal Reserve System
Hoosier Banker 11 PHOTO CAPTION: Gov. Michelle W. Bowman is shown in the atrium of the Eccles Building in Washington D.C., where the Federal Reserve System is headquartered. Her 14-year term on the Board of Governors continues through Jan. 31, 2034. maximum employment and price stability for the U.S. economy; • Monitoring financial system stability and seeking to minimize and contain systemic financial risk to the broader economy; • Supervising the safety and soundness of individual financial institutions, and monitoring their impact on the broader financial system; • Ensuring payment and settlement system safety and efficiency; • Supporting consumer protection and community development through consumer-focused bank supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations. How has the COVID-19 pandemic affected the Board’s priorities? Though the COVID-19 pandemic is primarily a health crisis, it caused substantial disruptions to U.S. financial markets and the economy. The Board took actions that were designed to help support households, businesses, nonprofits, and state and local governments. Guided by our dual mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote the stability of the financial system, the Fed and the FOMC quickly: • Lowered interest rates to near zero to bolster the economy; • Took steps to stabilize the financial system; and • Implemented emergency programs to support the flow of credit in the economy. These actions helped keep many businesses and organizations from closing and better positioned employers to retain workers and to rehire as the recovery continues. The Federal Reserve also took additional actions intended to restore market
12 NOVEMBER / DECEMBER 2021 functioning; support the flow of credit to households, businesses and communities; and reduce the bank regulatory reporting and compliance burden. You have commented on the importance of bringing credit and housing opportunities to low- to moderate-income communities. How can banks help with this effort? One of the key issues related to access to credit and home ownership is often geographic proximity to a financial institution. For this reason, it is important that we have a large and diverse landscape of banks located in or near every community across the country. Another important element of financial inclusion is financial education to empower consumers to select financial products that meet their needs while understanding what is required to maintain an account in good standing. Community banks are particularly engaged in financial education efforts with various organizations in their communities, from schools to churches to civic groups. While progress is being made in the effort to bring more consumers into the financial system, as shown by the FDIC’s 2019 survey, How America Banks, there is still more work to be done. Approximately 5.4% – or 7.1 million of U.S. households – are unbanked. To address the problem, we need to understand who the unbanked are, and why they have chosen not to participate in and/or have left the banking system. I am sure you are familiar with the “Bank On” program which promotes access to standardized low-cost transaction accounts for all Americans, particularly for the unbanked. To be included, an account must have the following features: $25 or less minimum deposit, free debit card, no overdraft or low balance fees, reduced monthly maintenance fees, $2.50 or less ATM fee when using out-of-network ATMs, free branch access and telephone banking, free bill pay, check cashing and monthly electronic statements. It’s innovative programs like this that help bridge the gap and bring credit and housing opportunities to low- to moderate-income communities. You also have spoken of the Federal Reserve’s work with high schools and universities “to inspire students’ interest in economics and finance.” Please elaborate. The Board is committed to inspiring students’ interest in pursuing education and careers in economics and finance, with an additional interest in expanding diversity. Let me share a few examples of efforts we undertake to advance this goal: • Twice a year the Board and System host an online Federal Reserve Board event: Exploring Careers in Economics. Staff discuss career opportunities and diversity in economics and share information about career paths within the Federal Reserve System. In 2021, we partnered with The Sadie Collective to expand their membership. • Annually, the Federal Reserve hosts the On Jan. 30, Michelle W. Bowman was sworn in for her second term as a member of the Board of Governors of the Federal Reserve System by Chair Jerome H. Powell. At center is Gov. Bowman’s husband, Wes Bowman.
Hoosier Banker 13 College Fed Challenge, which is a team competition for undergraduate students. This long-standing event attracted 90 teams from colleges around the country, with the final competition hosted by the Board of Governors (virtually in 2020 and 2021). Teams analyze economic and financial conditions and formulate a monetary policy recommendation, modeling the Federal Open Market Committee. • We continue to do outreach for Exploring Careers in Economics, Fed Challenge and other economic education events to diverse universities and colleges, Historically Black Colleges and Universities (HBCUs), and Hispanic-Serving Institutions (HSIs). • We also do considerable outreach to attract diverse candidates in our recruiting of staff. This includes participating in minority recruitment events at HBCUs, HSIs, and Hispanic professional conferences and career fairs. Our outreach is particularly notable, as we hire recent college graduates as full-time research assistants, a position which can be an important step toward a career in economics. • The Fed also co-sponsors with the Conference of State Bank Supervisors and the FDIC the annual community bank research conference where we feature the winning undergraduate team from CSBS’ community bank case study competition. This annual competition provides students an opportunity to partner with a community bank to develop an original case study. Indiana colleges and universities have competed in the competition in most years. Several of my Federal Reserve colleagues even serve as competition judges. The winning case study is presented during the annual research conference, and the team’s research is published in CSBS’ Journal of Community Bank Case Studies. Indiana bankers interested in partnering with a student team should contact CSBS to get more information on which Indiana schools have expressed interest in the 2022 competition. In recent months, you have often referenced optimism about economic recovery. What do you foresee for 2022 regarding the U.S. economy? U.S. businesses and households have demonstrated great resilience as the economy continues to open, and I remain optimistic about the ongoing expansion. The economic activity reflects not just the incredible resilience of U.S. households and businesses, but also very supportive monetary and fiscal policy. I continue to be concerned about the difficulties small businesses are experiencing around the country, particularly with employment and supply chains. I am also closely monitoring inflation pressures across the economy. • On the price stability side of our mandate, as we have all seen, inflation has been running well above our 2% goal, and I suspect supply-and-demand imbalances are playing an important role in the rise in inflation this year. As the supply Rob Nichols, president and CEO of the American Bankers Association, engaged in an onstage chat with Gov. Bowman at an ABA community bankers conference in 2019. Gov. Michelle Bowman (left) joined with Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, for a virtual ICBA summit last December.
14 NOVEMBER / DECEMBER 2021 chain bottlenecks are worked out, these pressures will likely ease, but that could take some time, as some supply chain bottlenecks might continue well into 2022. And therefore, I am concerned that inflation might end up being higher than most expect. I will continue to closely monitor inflation pressures going forward. • On the maximum employment side of our mandate, economic conditions bode well for the achievement of our goal. I expect the unemployment rate to continue to decline, but at a slightly slower rate going forward. But I am concerned about lower labor force participation and will be closely watching it. The most recent reports on employment and anecdotal reports from a wide range of businesses suggest that, even when offering higher wages and signing bonuses, many employers are finding it difficult to fill open positions. History tells us that the longer workers remain out of the workforce, the less likely it is that they will return to employment and the greater the likelihood that they will lose skills and connections with the job market, which could weigh on labor force participation for years to come. The Federal Reserve’s policy tools are useful for promoting a strong job market, but they are not well suited to addressing these harmful effects on labor supply. What concerns you the most about the coming year that community bankers should be aware of? As we see the economy and workforce returning to a more normal state, I would note that the banking system entered into the pandemic in a very strong financial condition, with plenty of capital and liquidity. With this in mind, community banks have continued to perform well throughout the pandemic. And I believe that community bankers will continue to provide a vital source of funding to local businesses, because they live in their communities and understand the needs and conditions of the local economy. More generally, community banks will likely continue to face the same issues that existed prior to the pandemic, including a low interest rate environment, competition from other market participants, shifting market conditions as a result of technological innovation, and pressure to adapt and embrace technology. HB Gov. Bowman’s banking tenure took place at Farmers & Drovers Bank, Council Grove, Kansas. Headquartered on the Santa Fe National Historic Trail, the bank was founded in 1882 by W.H. White, Bowman’s great-great-grandfather.
Hoosier Banker 15 K4 Architecture + Design has helped community banks across the Midwest reimagine their buildings and branch strategies in ways that help build strong connections to the communities they serve, integrate digital technologies and sustainability, and to position themselves for growth. From new prototypical branch development to branded remodels, turn to K4 for a total solutions partner who will provide a successful blueprint for designing the future of community banks & beyond, and to position yourself at the forefront of the evolution of branch design. We believe that a commitment to your brand and investments in marketing and facilities can solidify the bank branch as a significant community pillar, both now and well into the future. Visit us at www.k4architecture.com. YOUR COMMUNITY BANK PARTNER We do more than design facilities, we build relationships GRAPHIC DESIGN ARCHITECTURE INTERIOR DESIGN CONSTRUCTION The Friendship State Bank - Madison, IN Wayne Bank & Trust - Cambridge City, IN The Napoleon State Bank - Greensburg, IN First State Bank - Goshen, IN State Bank of Lizton Main Office - Brownsburg, IN State Bank of Lizton Main Office - Brownsburg, IN
16 NOVEMBER / DECEMBER 2021 A RATRI CTLI CE LSEPSOPTOL TI GLHI GTH T Sparks Flew at Mega Ignite! Recap of 2021 Mega Conference
Hoosier Banker 17 In October the Indiana Bankers Association hosted over 700 Indiana bankers at the Mega Conference in downtown Indianapolis, the first time the event has been held in person since the onset of the pandemic. The event kicked off Monday night with a reception at The Westin Indianapolis in appreciation of our associate members. Later, the traditional hospitality suite was hosted by IBA Chairman Michael S. Zahn. Tuesday morning brought the official start of the educational programming, with 12 different learning tracks for attendees to choose from. The luncheon keynote speaker, John O’Leary, spoke movingly about how to live a radically inspired life. O’Leary, who was nearly killed in a fire accident as a child, encouraged the audience to “live on fire.” Also at the Tuesday luncheon, awards were presented to Diamond Associate Members. Additionally, a slideshow video was shown depicting Five Star Member awards being hand-delivered to Five Star banks by IBA staff. On Tuesday evening, attendees gathered in the exhibit hall for the Mega Celebration to network over appetizers and drinks. Following the Mega Celebration, the IBA hosted a reception honoring Paul Freeman, who retired on Sept. 30 after 34 years with the IBA. Earlier that day, he had been presented with the Distinguished Hoosier Award by Sen. Travis Holdman, and at the reception Chairman Zahn presented Paul with a plaque of appreciation. That evening, the IBA Future Leadership Division also held a networking reception at the Yard House restaurant. Wednesday brought further educational sessions and a keynote by speaker Jeff Havens titled, “Uncrapify Your Future.” The keynote used humor to address how to bring innovation into organizations. At Wednesday’s luncheon, the finalists and winners of the 2020 Commitment to Community Awards were recognized. This award showcases exceptional community bank outreach in Indiana. Congratulations to Community First Bank of Indiana, Kokomo, the winner in the category of banks under $500 million in assets, and to Centier Bank, Merrillville, the winner in the category of banks over $500 million in assets. The winner of the Indiana BANKPAC sweepstakes drawing was Robert Schafstall of Mutual Savings Bank, Franklin. He won a scenic trip for two to the Canadian Rockies and Glacier National Park. The 2021 Mega Conference wrapped up on Wednesday afternoon after additional prize drawings and educational sessions. Thank you to all who attended, and many thanks to our generous sponsors. We hope to see you at next year’s Mega Conference, scheduled for May 9-11, 2022, at the Indiana Convention Center. HB Emily Brooks Member Engagement Specialist Indiana Bankers Association ebrooks@indiana.bank
MEGA PHOTO GALLERY Thank You, Sponsors Aunalytics The Baker Group BancMac/Community Banc Mortgage Corporation Bankers’ Bank Bedel Security BKD CPAs & Advisors BMO Harris Bank Capitale Analytics Inc. Check Printing Contract Consulting Cinnaire Corporation CLA Crowe LLP CSPI-Computer Service Professionals Inc. DDI Technology Dentons Bingham Greenebaum LLP ETS Environmental & Associates LLC Executive Benefits Network Federal Home Loan Bank of Indianapolis The Federal Reserve Financial Services Federated Hermes Inc. Graduate School of Banking at the University of Wisconsin Green Sign Company IBA Group Insurance Trust Independent Community Bankers of America Investors Title Insurance Company K4 Architecture + Design The KeyState Companies Kilpatrick Townsend & Stockton LLP Matrix Integration NContracts NFP Executive Benefits Premier Capital Profit Resources Inc. PULSE, A Discover Company QSI Inc. Renninger & Associates LLC SmithAmundsen LLC Strategic Resource Management Strategic Risk Associates TIB-The Independent BankersBank, NA Titan Armored Title Center of Indiana LLC Travelers United Bankers’ Bank UnitedHealthcare Virtual Innovation Inc. Voluforms Young & Associates Inc. 18 NOVEMBER / DECEMBER 2021
Alliance Bank, Francesville Bank of Wolcott Bippus State Bank, Huntington Citizens Bank, Mooresville Citizens State Bank, New Castle Community First Bank of Indiana, Kokomo Community State Bank, Royal Center Crossroads Bank, Wabash DeMotte State Bank Farmers and Mechanics Federal, Bloomfield Farmers and Merchants Bank, Laotto The Farmers Bank, Frankfort First Bank of Berne First Bank Richmond First Farmers Bank & Trust Co., Converse First Federal Savings Bank, Evansville First Federal Savings Bank, Huntington First Federal Savings Bank, Rochester First Harrison Bank, Corydon First Savings Bank, Jeffersonville First State Bank of Middlebury First State Bank of Porter The Fountain Trust Company, Covington Garrett State Bank German American Bank, Jasper Greenfield Banking Company Home Bank, Martinsville Hoosier Heartland State Bank, Crawfordsville Jackson County Bank, Seymour Kentland Bank Logansport Savings Bank, Logansport Mutual Savings Bank, Franklin The New Washington State Bank, Charlestown North Salem State Bank Owen County State Bank, Spencer Riddell National Bank, Brazil Security Federal Savings Bank, Logansport Springs Valley Bank & Trust Company, French Lick Wayne Bank and Trust Company, Cambridge City Commitment to Community Awards Five Star Members Thank you to the 22 member banks that submitted nominations for the 2020 C2C Awards. The stories of all nominating banks were highlighted as a Hoosier Banker cover story in the July/August issue, as well as in an IBA social media campaign using hashtag #C2CAwards. Nominations are open for the 2021 C2C Awards, to be presented at the 2022 Mega Conference. For more information, visit indiana.bank/commitmentcommunity-award, or contact Emily Brooks at ebrooks@indiana.bank. Diamond Associate Members The Baker Group Bankers’ Bank Federal Home Loan Bank of Indianapolis infotex K4 Architecture + Design The KeyState Companies Krieg DeVault LLP NFP Executive Benefits Renninger & Associates LLC SmithAmundsen LLC Asset Size: Under $500 Million Community First Bank of Indiana, Kokomo - winner Alliance Bank, Francesville - finalist Home Bank, Martinsville - finalist Bath State Bank Farmers and Mechanics Federal Savings Bank, Bloomfield First Federal Savings Bank, Huntington Hoosier Heartland State Bank, Crawfordsville Indiana Trust Wealth Management, Mishawaka Mutual Savings Bank, Franklin The New Washington State Bank, Charlestown Tri-County Bank, Roachdale Asset Size: $500 Million and above Centier Bank, Merrillville - winner First Farmers Bank & Trust Company, Converse - finalist First Savings Bank, Jeffersonville - finalist 1st Source Bank, South Bend Bank of America, Indianapolis First Bank Richmond First State Bank of Middlebury Horizon Bank, Michigan City Jackson County Bank, Seymour Peoples Bank, Munster STAR Bank, Fort Wayne DIAMOND ASSOCIATE MEMBER Hoosier Banker 19
20 NOVEMBER / DECEMBER 2021 His banking journey began as a senior in high school, when Paul worked part-time for American Fletcher National Bank and Trust Company, Indianapolis. He continued with AFNB while an undergraduate at Butler University and, upon graduation, entered the bank’s management training program. Paul remained with AFNB for five years, during which time he married his wife Jo Eva, earned an MBA from Butler, and segued into commercial loan administration. New work duties included training responsibilities, a natural fit for Paul. One day a brochure from RMA, then known as Robert Morris Associates, spurred Paul to consider working for the development and training organization. He sent RMA an unsolicited resume, was hired, and he and Jo Eva began a new life phase in Philadelphia with their baby girl Jessica. Paul’s RMA years provided impressive growth and career opportunity, but the experience was tempered by the challenges of being on the road some 100 nights per year, compounded by distance from extended family. Seeking to return to Hoosier roots, Paul mailed another unsolicited resume to the Indiana Bankers Association and was hired in May 1987. At that time, the banking landscape As 2021 closes out, the Indiana Bankers Association marks the end of a treasured era with the retirement of Paul W. Freeman, CAE. Paul retired as executive vice president effective Sept. 30, leaving a legacy of accomplishments that forever changed the IBA for the better. A reception was held in his honor in October at the IBA Mega Conference in downtown Indianapolis. Paul’s affiliation with the IBA traces back to 1987, when he joined the Association as director of member services, a newly created position. He was uniquely qualified for the role, fortified with foundational experience in a range of bank operations, coupled with a strong background in association management. in Indiana was in transition. Passage of the Banking Structure Reform Act of 1985 permitted Indiana banks to branch across county lines and also to acquire – or be acquired by – banks in contiguous states. The resulting flurry of mergers and acquisitions significantly reduced the number of independent banks operating in the Hoosier state. To help Indiana banks succeed in the more competitive environment, the timing was ideal for the IBA to form a member services division. With Paul at the helm, this new effort produced lasting results. Among his many IBA accomplishments, Paul conceived of and created the IBA Mega Conference in 1992. This revolutionary concept provided quality education for all functional areas of banking in a single, large event setting. Mega has since grown to become the largest state bankers association meeting in the country. Paul also was the driving force in hosting year-round schools and seminars on premise. He orchestrated IBA’s move in 1996 from downtown Indianapolis office space to a stand-alone building on the Meridian Street corridor, where he established the IBA Center for Professional Development. Nearly 5,000 Indiana bankers now benefit each year from IBA education and training. Other achievements include coordinating two additional office moves, managing New Markets Tax Credits transactions and creation of the IBA Five Star Program. In other arenas, Paul has served in leadership and board positions with the Indiana Council for Economic Education, the Shown at center, Paul Freeman and other members of the IBA staff display Mega Conference T-shirts in 1992, the first year of Mega. SPECIAL TRIBUTE
Hoosier Banker 21 Indiana Statewide Certified Development Corporation, and the Indiana Society of Association Executives, which in 2006 named him ISAE Association Professional of the Year. He earned his certified association executive (CAE) credentials from the American Society of Association Executive in 1995. When asked who has influenced his leadership style, Paul praises the 34 IBA chairs he has worked with, noting that despite different leadership styles, “their commitment to the industry, the profession and the Association has been unwavering.” He also gives a shoutout to each IBA state executive he has worked with: Bob Nelson, Bill King, Jim Cousins, Joe DeHaven and Amber Van Til. Regarding personal influences, Paul credits his late parents. He says his father demonstrated a strong work ethic, working six days a week and many evenings in the auto industry, and his mother was the family keeper of the faith and traditions. Also, on the subject of family, Paul proudly shares that he and Jo Eva celebrated their 40th wedding anniversary in October. She, too, has a banking background, having retired two years ago as a business banker with Horizon Bank. Daughter Jessica clearly is another source of pride. She earned an undergraduate Flashing his trademark smile at an office celebration, Paul Freeman marked his 25th anniversary with the IBA in 2012. degree from the University of Notre Dame and a master’s degree from the University of Chicago, and now lives in Minneapolis with her husband, Michael Iselin, an accounting professor at the University of Minnesota. The Iselins are busy parents to Becca, age 9, Grant, 7, and Adam, 3. Regarding retirement plans, Paul says that for now he is focused on short-term goals of spending more time reading, traveling, exercising and visiting family. Future options may include volunteering or part-time opportunities, but for now: “We’re going to take it slow.” The officers, directors and staff of the Indiana Bankers Association wish Paul and Jo Eva well in their retirement years and thank Paul for his lasting legacy to the IBA. He also is to be congratulated for being named a Distinguished Hoosier by Gov. Eric J. Holcomb, with the honor presented to Paul on Oct. 12 at the 2021 IBA Mega Conference. HB Paul Freeman (center) was presented with a Distinguished Hoosier award on Oct. 12 by Sen. Travis Holdman and congratulated by Amber R. Van Til, Indiana Bankers Association. Right: At an Indiana Society of Association Executives ceremony in 2009, Paul Freeman displays one of several awards won by the IBA.
22 NOVEMBER / DECEMBER 2021 DELIVERING CONTENT AND CONNECTION FLD FOCUS
Hoosier Banker 23 Josh Myers Assistant Vice President - Member Engagement Indiana Bankers Association jmyers@indiana.bank @joshmyersIN The 2021 FLD Leadership Conference, the IBA Future Leadership Division’s signature event, was held Sept. 21-22 in the heart of our state’s capital. The event brought together bankers, plus a handful of associate members, with varying levels of experience and expertise, providing an opportunity for all to focus on the shared goal of growing professionally and personally. Through a combination of speakers, roundtables discussions and networking, conference attendees were able to tap into one of the greatest resources that a banking association can offer: its people. Beginning in the morning of Tuesday, Sept. 21, the FLD Leadership Conference kicked off with welcoming comments from Amber Van Til, president and CEO of the Indiana Bankers Association, who encouraged attendees to network with each other and to learn about grassroots advocacy, among other topics. Next, conference attendees were treated to the hilarious yet insightful keynote address of Paul Long, whose “FUNdamism” presentation gave everyone the chance to laugh, reflect and have FUN. Long’s message centered on the idea that, while our society appears to be more focused on what’s not working as opposed to what is, we all have the choice to embrace “what’s GOOD.” Following a networking lunch, Amber Farley led a thought-provoking discussion about advancing the bank’s brand. While all banks have a brand, it is not always front-of-mind among all departments of the bank. Farley conveyed that each bank should create a unique brand that employees can be passionate about. She emphasized that emerging leaders can play a vital role in the brand’s success. Nic Baumann joined the conference for the last presentation of the day with a look at respect in the workplace. Baumann’s presentation left attendees with tools to recognize both obvious and subtle indicators of disrespect, suggestions for identifying contributing factors, and ideas to effectively establish respect-reinforcing behaviors. Speed roundtables closed out the education portion of the day, allowing attendees to meet with peers while discussing a variety of topics. Later that night, participants joined together for an impromptu game night after a rainy forecast changed plans for a previously scheduled outdoor scavenger hunt. After a few rounds of UNO, Pictionary, euchre and other games, the night finished up with a relaxing dinner at the Yard House restaurant. The FLD Leadership Conference continued early Wednesday morning with a grassroots advocacy panel moderated by Dax Denton, IBA’s SVP-government relations, who was joined by FLD Advisory Board members Emily Boardman, Jon-Myckle Price and Michael Clampitt. Board members shared their experiences in grassroots advocacy, how they have been impacted, and why emerging leaders need to get involved. Boardman, president of the FLD Advisory Board, then engaged attendees in an IBA action alert regarding IRS reporting rules. Karen Butcher served as keynote speaker for the morning, addressing the concept of transforming fear of conflict into “curious communication.” Her thorough discussion on communication provided attendees with various ideas to: experience the art of self-evaluation; face fear and transition to building courage; embrace curiosity; drop judgement while remaining neutral; and practice tough conversations. The conference concluded with a final opportunity for speed roundtable discussions, allowing for additional networking and idea-sharing. Following the roundtables, each conference attendee had the chance to share with the group a key takeaway. The 2021 FLD Leadership Conference was a memorable event and a much-needed opportunity for the nearly 75 attendees to connect and grow together. It brought about laughter, motivation, self-reflection and more. It was also a reminder that all bankers have a common purpose of serving their customers and communities, and we should all rally for each other as members of the IBA and the FLD. Thank you to all the bankers and associate members who participated in this year’s event, and special thanks to our sponsors. HB
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