2023 Mega Conference INDIANA BANKERS ASSOCIATION MARCH / APRIL 2023 PLUS! Legislative Day 2023
DIRECTORS & STAFF PUBLISHER Amber R. Van Til EDITOR Evan Hoffmeyer ADVERTISING Rod Lasley DESIGN 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 reservations are due the 20th of the month, two months before 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., which 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 Vol. 107 No. 2 IBA BOARD OF DIRECTORS Officers Jamie R. Shinabarger, Chairman..........Springs Valley Bank & Trust Company, Jasper Benjamin J. Bochnowski, First Vice Chairman ..............................Peoples Bank, Munster Matthew W. Howrey, Second Vice Chairman ..............................North Salem State Bank Garry D. Kleer, Immediate Past Chairman ............................................. First Bank Richmond Amber R. Van Til, President and CEO ........................................Indiana Bankers Association Constituent Directors Michael K. Bauer, ABA Membership Council ..............WesBanco Bank, Wheeling, WV Sherri L. Reagin, ICBA State Director.................................................. North Salem State Bank Brock C. Goggins, IBA FLD President............................... German American Bank, Jasper Joseph F. Breen, Non-IN HQ Banks ...........Huntington National Bank, Columbus, OH Regional and At-Large Directors David M. Findlay, At-Large ..........................................................................Lake City Bank, Warsaw Kent A. Liechty, At-Large.........................................................................................First Bank of Berne J. Daniel Maddox, North Region ...........................................Citizens State Bank, New Castle Bradley J. Monts, North Region..............Hoosier Heartland State Bank, Crawfordsville Jacqueline M. Ruge-Perkins, North Region ...............................First State Bank of Porter Lisa Arnold, South Region...........................................................................Home Bank, Martinsville Mark E. Bruin, South Region ...............................................The National Bank of Indianapolis Gregory Inman, South Region .......................Scottsburg Building and Loan Association IBA FUTURE LEADERSHIP DIVISION ADVISORY BOARD Brock C. Goggins, President ................................................... German American Bank, Jasper Michael J. Clampitt, Vice President .....................................................North Salem State Bank Ryan Anderson .............................................................The Fountain Trust Company, Covington Greg Barnes Jr. .....................................................................................................STAR Bank, Fort Wayne Jenilee Bransteter........................................................................................................First Bank of Berne Ryan Cook .................................................................................................Mutual Savings Bank, Franklin Kyle Goodwin ................................................................................................................DeMotte State Bank Christopher Griffith ..............................................................................First Harrison Bank, Corydon Zach Hockersmith ...........................................Hoosier Heartland State Bank, Crawfordsville Casey Johnson ....................................................................................................Home Bank, Martinsville Jonathon Malin ........................................................Community First Bank of Indiana, Kokomo Andrea McGordon .................................................................................Old National Bank, Evansville Amanda Morris-Feldman ............................................First Federal Savings Bank, Rochester Jon-Myckle D. Price .............................................Security Federal Savings Bank, Logansport Laura Shake.....................................................................................The National Bank of Indianapolis Casey Shireman ...........................................................................................................NWSB, Charlestown IBA STAFF Amber R. Van Til ............................................................................................................President and CEO Rod Lasley ................................................................................................................Chief Operating Officer Dax Denton ........................................................................................................................Chief Policy Officer Christina M. Bennett, CMP...............................................Vice President - Meetings & Events Josh Myers............................................................................Vice President - Member Engagement Laurie A. Rees ........................................................................Vice President - Education & Training Ross Teare .............................................................................Vice President - Government Relations Evan Hoffmeyer ....................................................Assistant Vice President - Communications Emily Brooks............................................................................................................Digital Media Manager Maria L. Dowers ...........................................Executive & Government Relations Coordinator Susan Clark ...............................................................................Events & Products/Services Assistant Elizabeth DeHaven ....................................................................................................Education Manager Beth Abney ..........................................................................................Education Meeting Coordinator Timothy Fry ............................................................................................................................Staff Accountant Tracy Kubly ...................................................................................................................Technology Manager Silvia Peraza ..........................................................................................................Administrative Assistant HB HOOSIER BANKER indiana.bank OUR ASPIRATION The Indiana Bankers Association strives to grow stronger banks and stronger communities. OUR VALUES In fulfilling our mission, we will: Maintain the highest ethics, integrity and respect for others; Serve with professionalism, innovation and resourcefulness; Instill passion, positive attitude and enthusiasm; Remain mindful that the success of the IBA is judged by the success of its members.
IN THIS ISSUE 16 MAKE THE MOST of Your Year with FLD While the IBA offers a multitude of networking, education and professional development programs, there is one peer group that all bankers should consider engaging with this year. 12 ARTICLE SPOTLIGHT Legislative Day 2023 The annual event saw a return to prepandemic attendance levels as bankers gathered together to kick off the 2023 advocacy year. “Community banking is the greatest career I could ever imagine.” 58 CLOSING NOTE IBA Board Review Matthew W. Howrey, North Salem Bank Get to know Matthew W. Howrey, second vice chairman of the Indiana Bankers Association Board of Directors. Howrey is president and CEO of North Salem State Bank. 10 IBA Mega Conference 2023 Analysis, trends and innovations
INDIANA BANK & THRIFT UPDATE 40 Stock Analysis Michael A. Renninger, Renninger & Associates LLC DIRECTORS / SENIOR MANAGEMENT 42 Battle Ready Achim Griesel & Sean Payant, Haberfeld PRODUCT & SERVICES PROFILE 44 Merchant Services: A Business Lifeline Rod Lasley, IBA 46 Compliance Rod Lasley, IBA CLOSING NOTE 58 IBA Board Review Matthew W. Howrey, North Salem State Bank DEPARTMENTS 21 In Memory 27 IBA ‘High Five’ Awards 33 Honorable Mentions 35 Taking It Easy 41 From the Board Room 50 Banking on Community 52 Associate Members' Corner 54 Bankers on the Move 57 Advertisers Index FEATURES 06 VANTAGE VIEWPOINT Amber R. Van Til, IBA 07 CHAIRMAN'S REPORT Jamie R. Shinabarger, Springs Valley Bank & Trust Company, Jasper 09 IBA CALENDAR OF EVENTS COVER STORY 10 IBA Mega Conference 2023 20 BEATING BACK A BAD IDEA Robert S. Nichols, ABA 22 MARKETING THROUGH COMMUNITY INVOLVEMENT Rebeca Romero Rainey, ICBA 24 HOOSIER BANKER SURVEY RESULTS Evan Hoffmeyer, IBA 39 STATE DEPOSITS July 1 – Dec. 31, 2022 ARTICLES ARTICLE SPOTLIGHT 12 Legislative Day 2023 Dax Denton and Ross Teare, IBA FLD FOCUS 16 Make the Most of Your Year with FLD Josh Myers, IBA AG BANKING 18 Midwest Agricultural Banking School Brady Brewer, Purdue University DIRECTORS / SENIOR MANAGEMENT 26 Revisiting the Economic Value of Equity Jeffrey F. Caughron, The Baker Group HUMAN RESOURCES 28 Pregnant Workers and Nursing Mothers Debra A. Mastrian, Amundsen Davis LLC 48 Plan Loans Jeff Aga, Ascensus SECURITY / FRAUD 32 Financial Institutions and Elder Financial Abuse OPERATIONS / TECHNOLOGY 34 Embedded Fintech or Embedded Finance? Virginia Heyburn, Engage fi CONGRESSIONAL UPDATE 36 Houchin Named to House Financial Services Committee COMPLIANCE CONNECTION 38 Consumer Lending Regulations Brett J. Ashton, Krieg DeVault LLP 24 47 INTERACT WITH US The results are in...
6 MARCH / APRIL 2023 As I write this column, we are halfway through the state legislative session. Your government relations team is working hard to advocate at the Statehouse for Indiana banks and bankers against policies that, even if well-intentioned, will have grave consequences if passed in the form we find them at this midway point. HB 1008 would require the Indiana Public Retirement System (INPRS) to not do business with any outside investment manager that provides or markets investments focused on environmental, social and governance policies, often referred to as ESG investing. INPRS would also be banned from doing business with any bank or investment firm perceived by the state treasurer or attorney general to have divested from or limited investment in certain protected industries, including fossil fuels, firearms and agriculture. We’ve already seen how taxpayers lose when elected leaders play politics with finances. A study from the University of Pennsylvania looked at a Texas law banning its municipalities from doing business with banks that have ESG policies against fossil fuels and firearms. They found the law has driven down competition for public-sector business, leading to higher interest rates on municipal bonds that are expected to cost taxpayers an extra $300-530 million. Indiana banks invest in their communities every day. Not only are they a financial bedrock, but bankers like you give of your own time, talent and treasure. Hoosier bankers give more than 250,000 volunteer hours in this state annually, teach more than 100,000 Hoosier children Don’t Miss Out! Mega Conference May 16-18 Mega is the largest, most comprehensive state banking event in the nation. Commercial Lending School June 5-9 Mid-level bank officers and commercial loan officers receive a thorough understanding of commercial lending administration. Annual Convention August 27-29 Indiana bank leaders convene, connect and conduct IBA business in scenic French Lick. For event updates, visit: indiana.bank/calendar Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank VANTAGE VIEWPOINT financial literacy and donate nearly $30 million to community causes through local fundraisers and in-kind donations. These ties help bankers know their communities, both the people and their needs. Banks then make lending decisions based on their own risk tolerance and the expertise of their employees, as well as the creditworthiness of applicants. We’re calling on lawmakers to let our bankers focus on their fiduciary duty for the benefit of Hoosiers who depend on these investments for their retirement after a life of public service. While advocating for our members at the Statehouse, Dax and Ross also helmed our annual Legislative Briefing and Reception on Jan. 31, with the help of our incredible IBA support staff. They have a more detailed report from that event on pages 12-14 of this issue. Thank you to the many bankers, IBA associate members and elected officials who took time to make the event a success. As we continue into the second half of the legislative session and into the rest of the year, remember that the IBA staff works every day mindful that the association’s success is judged by the success of you, our members. It’s an honor to serve! HB Thomas C. Fite, director of the Indiana Department of Financial Institutions, addressed bankers at the IBA’s annual Legislative Briefing & Reception at the Hyatt Regency Indianapolis, Jan. 31, 2023.
Hoosier Banker 7 value them. Mega 2023 is the premier state banking event in the nation, and it’s within only a few hours' driving distance of just about anywhere in the state. COME for the golf, lodging amenities, education, networking, exceptional food, exposure to new products and services, and to financially support IBA! LEAVE with the same or higher golf handicap, feeling rested due to a needed break in routine, smarter, more connected to friends and colleagues, on a food high, better equipped to compete and knowing that you probably helped keep association membership affordable for your fellow IBA members! See you at Mega 2023! HB As we turn the corner from winter to spring, I want to look toward the 2023 Mega Conference. Last year, IBA Chairman Garry Kleer reminded you that we were returning to a full, in-person Mega 2022 after two years of disruption due to COVID-19. And return you did – to the tune of 1,079 bank presidents/CEOs, bank directors, officers, associate members and more. The 2023 Mega Conference – to be held May 16-18 at the Indiana Convention Center in Indianapolis – promises to provide a great opportunity for Indiana bankers to listen, learn and network with peers. The conference features 50 total sessions as well as a vibrant exhibit hall. Let’s unpack the real value of attendance at this year’s IBA Mega Conference, shall we? First, let’s kick off Mega on Tuesday, May 16, with 18 holes of golf followed by the evening Welcome Reception to honor our associate members. If you’re bringing only one club, may I suggest the 7-iron (courtesy Tin Cup)? The educational sessions and exhibit hall are in the spacious convention center, which is conveniently connected to the Westin, where four-star lodging for participants awaits. Educational sessions will span 12 broad tracks: Directors, Human Resources, Risk Management, Operations & Technology, Sales & Customer Service, Wealth Management, Business Lending, Compliance, Financial Management, Leadership, Marketing, and Retail & Customer Experience. Each track will feature four sessions, creating the daunting task of choosing which sessions to attend. Let me offer a solution to the conundrum: Bring more staff so you can get full coverage without forgoing strategic content! Lunch on both Wednesday and Thursday will feature notable keynote speakers who will inspire, challenge and, yes, may even stir your emotions such that you’ll shed a tear or two. On Tuesday and Wednesday evenings, there will be opportunities for exceptional meals with friends or vendors in downtown Indianapolis within walking distance. And let’s not forget that Mega is one of IBA’s most successful events not only in terms of what it offers bankers, but also in terms of profitability due to support from our associate members. The revenue generated from Mega augments association dues, which have not increased since 2006. We already have 72 associate members signed up for the exhibit hall, with more registrations coming in every day. Whether they are vendors you already use or a company you aren’t familiar with at all, these are the providers who can help come up with the innovative solutions you need for your bank. The IBA’s associate members are a vital part of Mega 2023 and your Indiana Bankers Association! Please engage with them and allow them to help with any of your bank's strategic or operational needs. Let me conclude this piece with a challenge: Bring just one or two more bankers to the conference than your bank brought last year. An investment in developing your people is always wise and, in this labor market, it’s twice as impactful because it reinforces how much you Jamie R. Shinabarger Chairman Indiana Bankers Association President, CEO and Director Springs Valley Bank & Trust Company, Jasper CHAIRMAN'S REPORT Citizens State Bank • @CSB_Indiana • Jan 15 Earlier this week we enjoyed an amazing tour of @SecondHelpings. If you’re looking for a place to volunteer, we can assure you this group is having a great time! More importantly, they’re doing important work for our community. Springs Valley Bank & Trust Company @SpringsValleyBT • Jan 11 Springs Valley Bank & Trust Company is proud to donate $1,000.00 to DPI (Downtown Princeton, INC)! DPI is dedicated to the improvement and preservation of the Princeton area!! #svbtloyaltoyou #svbtgivesback #GibsonCountyIN Hoosier Heartland State Bank • @myHHSB • Jan 11 The Prom Dress Drive continues! Help make a local student feel like a queen for a day – dust off those dresses and drop them off at either HHSB Crawfordsville location before Jan. 31st! #YourDressTheirDream #PromDressDrive #HHSBGivesBack Centier Bank • @CentierBank • Jan 3 Last month, Centier Bank proudly donated to various Domestic Violence Organizations across #Indiana! Thanks to associate donations, casual for a cause days and creative efforts by “Amanda’s Angels,” we were happy to present $990 to 8 local organizations! First Federal Savings Bank, Rochester @ffbanking • Dec 15 Our Bremen branch volunteered to ring the bells for the Salvation Army earlier this week for donations for the Food Pantry! Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter
To learn more, contact Shawn Norris, RHU, ChHC | 812.422.4000 | shawn.norris@nfp.com Health insurance today is a catch-22: insurance costs continue to go up, but you want better benefits at lower costs. Your health plan needs to line up with your needs and your goals — without breaking the bank. That’s where NFP and UnitedHealthcare come in. They’ll work with you to create competitive, fairlypriced options with an eye on your bottom line. The Right Solutions at the Right Time Working with NFP and UnitedHealthcare will allow the IBA Group Insurance Trust to provide you with the following benefits: • Flexible, lower-cost, quality group insurance plans and strategies. • Defined road map for reducing present and future healthcare costs. • Flexible prescription drug approach (approximate 20% savings through discounts and rebates). • Access to the nation’s largest provider network, offering seamless healthcare access within Indiana and nationwide. • Powerful data, insights, and innovation to help build a focused, strategic approach for achieving healthier results at a lower cost. • Industry-driven approaches to support IBA’s goal of delivering quality health insurance and pricing that is not attainable to member banks standing alone.
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 Retail Banking Forum May 2 • IBA Center BSA Officer Forum May 3 • IBA Center Essentials of Banking - Session 2: Business Operations & Management May 9 • Virtual Community Bankers for Compliance Program – Session 2: Issues and Errors in the Loan Application Process May 9 • IBA Center Essentials of Commercial Credit Analysis Series - Session 3: C&I Lending, Financial Statement Analysis and Direct (UCA) Cash Flow Analysis May 10 • IBA Center Auditing RESPA & Escrow May 10 • IBA Center Retail Lending Series - Session 3: Essential of Retail Loan Compliance, Loan Documentation and Retail Loan Portfolio Management May 11 • IBA Center Mega Conference May 16-18 • Indiana Convention Center Indianapolis Frontline Branch Series - Session 1: Cultural Shifting in Community Banks May 17 • Virtual Treasury Management Forum May 22 • IBA Center Bank Security Officer Forum May 23 • IBA Center Certified Banking Security Manager Bootcamp May 23-24 • Center for Banking Excellence • Springfield, Ill. Leadership Development Program – Session 2 May 23-25 • Abe Martin Lodge Brown County State Park Compliance Officer Forum June 1 • IBA Center Commercial Lending School June 5-9 • IBA Center CFO Forum – Group 1 June 8 • IBA Center CFO Forum – Group 2 June 9 • IBA Center Bank Operations Bootcamp June 13 • IBA Center Commercial Loan Documentation June 13 • IBA Center Compliance for Lenders and Loan Processors June 14 • IBA Center Senior Lender Forum – Group 1 June 14 • IBA Center Senior Lender Forum – Group 2 June 15 • IBA Center Safe Deposit Regulatory Compliance & Security Issues June 15 • Virtual Emerging Leader Digital Program: Managing and Performance (1 of 6) June 20 • Virtual BSA/AML Compliance School June 21-22 • IBA Center Website Optimization and Content Strategy Bootcamp June 26 • IBA Center Marketing Directors Forum June 27 • IBA Center Frontline Branch Series - Session 2: Wowing the Customer June 28 • Virtual Information/Cybersecurity/IT/ Operations Officer Forum – Group 1 June 28 • IBA Center Information/Cybersecurity/IT/ Operations Officer Forum – Group 2 June 29 • IBA Center Professional Development/Education/ Training Forum July 11 • IBA Center Essentials of Banking: Credit and the Banking Business (3 of 4) July 11 • Virtual Essentials of Commercial Credit Analysis Series: Effective Credit Memos, Proper Loan Grading, Portfolio Management and Relationship Building (4 of 4) July 12 • IBA Center Outside Calling School - Part 1 July 13 • Virtual Retail Lending Series: Building Client Loyalty and Growing the Bank (4 of 4) July 13 • IBA Center Human Resources Directors Forum July 18 • IBA Center NOTE: For the latest information about IBA event dates, locations and format, please visit: indiana.bank/calendar CALENDAR UPDATE
10 MARCH / APRIL 2023 TRENDS & ANALYSIS INNOVATIONS COVER STORY MAY 16-18, 2023 THE WESTIN INDIANAPOLIS & INDIANA CONVENTION CENTER
Hoosier Banker 11 Business as Unusual: How to Future-Proof Your Business in Transformational Times JACK ULDRICH WEDNESDAY, MAY 17, 2023 The world has catapulted into a future of deep change. In this engaging, provocative and insightful keynote session, acclaimed global futurist and best-selling author Jack Uldrich will show how the world of tomorrow is exponentially changing and why so many of the trends that were on the horizon in the past year continue to accelerate. History reminds us that great challenges produce great change – as well as great opportunities. To take advantage of these extraordinary opportunities, businesses must position themselves now to operate in a world where “business as unusual” is the new “usual.” This session will help leaders at every level of an organization leverage 10 “unconventional” techniques to succeed in today’s – and tomorrow’s – transformational times. Sponsored by: Success Redefined: Confidence, Hustle, Drive MERIDITH ELLIOTT POWELL THURSDAY, MAY 18, 2023 Uncertainty changes everything! The marketplace – customers – competition – your team. To grow and compete, you need a new perspective and a new strategy for how you lead and how you position your organization for growth. In this powerful program, you will learn the new tools for success in a highly shifting, constantly changing marketplace. Keynote speaker and business growth strategist Meridith Elliott Powell will share the business growth strategies you need to dominate your market. Build a team that thrives in change. Design a strategy that gets results. You’ll learn the secrets to defy marketplace gravity and grow no matter the challenge or obstacles this market puts in your way. In this session, Meridith will share the innovative leadership development and sales strategies you need to navigate change and succeed no matter what this economy does. Sponsored by: Our Mega theme for 2023 is “Think Forward,” because, in the world of banking, it is imperative that your initiative stands out and get your institution noticed while remaining true to your brand and furthering your bank’s mission.
ARTICLE SPOTLIGHT Legislative Day 2023 Bankers gather for first grassroots advocacy event of the year
Hoosier Banker 13 Thank you to all who attended the Indiana Bankers Association’s Legislative Briefing and Reception on Jan. 31 at the Hyatt Regency Indianapolis. More than 150 IBA-member bankers and associate members attended – a return to pre-pandemic levels – as well as nearly 50 lawmakers, up from 40 in 2022, making this year’s event a wonderful success. The morning began with a meeting of the IBA Board of Directors. The directors were then joined by members of the IBA Government Relations Committee for a luncheon with guest speaker – and newly inaugurated state treasurer – Daniel Elliott. The mid-afternoon was then dedicated to an indepth review of bills at the Statehouse that could have an impact on the banking industry. This annual meeting provides an opportunity for valuable feedback from members of the GR Committee regarding their views on pending legislation. Later that afternoon, the wider Legislative Briefing was offered for any member of the association to attend. Bills reviewed included: % HB 1008: Pension Investments & SB 292: INPRS Investments % SB 2: Taxation of Pass Through Entities % SB 452: Consumer Credit and Financial Institutions % SB 261: Economic Development Districts % SB 242: DNR Best Floodplain Mapping Data % SB 35: Financial Literacy % HB 1547: Finance Charges for Supervised Loans % HB 1494: Prohibition on Charging Residual Interest % SB 5: Consumer Data Protection % HB 1005: Housing The discussion of bills was followed by a presentation of awards by IBA Chairman Jamie Shinabarger, honoring those banks that are strong supporters of Indiana BANKPAC. Twenty-two banks were recognized with the BANKPAC 200% Club award, which is given to banks that contribute at least twice their fair share amount. In total, 81% of IBA-member banks participated in raising funds for the PAC through corporate or personal donations, with 71 meeting their fair share goal. Chairman Shinabarger presented BANKPAC’s top awards to First Merchants Bank, Muncie, and Springs Valley Bank & Trust Company, Jasper, for most dollars raised and highest percentage of fair share raised, respectively. The IBA’s Board of Directors and Government Relations Committee greatly appreciate the support of all IBA-member banks in this crucial endeavor. After the awards presentation, attendees were treated to a panel discussion with the cast of WFYI’s Indiana Week in Review. Panelists offered a close look at the politics driving legislative efforts at the Statehouse from both partisan and nonpartisan viewpoints. The evening culminated with the Legislative Reception, giving IBA members the chance to meet face-to-face with Indiana lawmakers for conversation and networking in a relaxed atmosphere. The annual IBA Legislative Briefing and Reception signals the start to several grassroots advocacy events throughout the year. The Future Leadership Division’s Day at the Statehouse took place March 7, to be reported on in the May/June issue of Hoosier Banker. Other events still on the calendar this year include the IBA Annual Washington Trip, scheduled for Sept. 25-27 instead of our normal summer dates, as well as regional meetings and other opportunities. Please join with your colleagues to give a strong voice to the Indiana banking community through grassroots advocacy. HB Dax Denton Chief Policy Officer Indiana Bankers Association DDenton@indiana.bank Ross Teare Vice President - Government Relations Indiana Bankers Association RTeare@indiana.bank
14 MARCH / APRIL 2023 LEGISLATIVE DAY GALLERY
Nellie Szczech EVP, Institutional Relationships 315.383.9648 nellie@bhg-inc.com BHGBank.Network/IN Join the largest bank network in America
16 MARCH / APRIL 2023 Josh Myers Vice President - Member Engagement Indiana Bankers Association JMyers@indiana.bank Make the Most of Your Year with FLD FLD FOCUS With a few months already in the rearview mirror, 2023 is off to a fast start. Chances are that, by now, you have already been thinking about the rest of the year that awaits you and have strategized ways to accomplish the various goals you have set for yourself. While there is a multitude of networking, education and professional development programs out there, there is one Indiana Bankers Association peer group that all bankers should consider engaging with this year. The Future Leadership Division is available for all members of the IBA and is an easy way to learn from peers and connect with others, whether you are new to the banking industry or have been around for a bit. So as you think about your coming year, be sure to sign up – for free – for FLD membership if you are not already a member, and watch for future FLD offerings to take advantage of this year. While the FLD’s first event of the year, FLD Day at the Statehouse, will have already happened by the time you read this article, rest assured that other opportunities will be held throughout the year. If you are new to the FLD or have never heard of its offerings before, here are some highlights of what is to come this year. Each year the FLD hosts a two-day leadership conference in Indianapolis, scheduled this year for Sept. 12-13. The event features a strong lineup of top-flight presenters, with educational sessions focusing on topics such as leadership traits, technology and industry insight. Because relationship-building is instrumental to the banking community, there is ample opportunity for peer networking with fellow future banking leaders. This conference is a can’t-miss event for anyone in the industry that wants to build their peer network and learn from others. If you can’t commit to a two-day conference this year, the FLD hosts several other opportunities that are convenient for your busy schedule. On May 17, the FLD will host a networking reception in conjunction with the IBA’s Mega Conference. This event is open to all FLD members, as well as Mega Conference attendees who are interested in learning more about the Future Leadership Division. The reception is an outstanding opportunity to meet, and establish new relationships with, the FLD board, fellow FLD members and other bankers interested in growing as banking professionals in the state of Indiana. FLD Networking Lunches will be held throughout the state in five different cities later this year. The FLD believes one of the best ways to grow as a banking professional is to learn from each other through networking opportunities with peers from across the state. Bankers, no matter their role or geographic location, each share common experiences we all can relate to and learn from. These lunches, reserved only for FLD mem-
Hoosier Banker 17 bers, are an excellent opportunity to network with other peer bankers and participate in a facilitated group discussion on pertinent industry topics. In October, the FLD will host a networking lunch at Topgolf for members to share in friendly competition and networking with peers. This event will be a quick and easy way to engage with others in a fun atmosphere, and I highly recommend attending. In addition, the FLD plans to host a few Coffee Club meetings throughout the calendar year. These virtual meeting opportunities allow for convenient networking time without leaving the office and let you make new connections and share in roundtable conversation. I hope you will consider making it a priority to attend one or more of these upcoming FLD events. While signing up for FLD membership is easy to do, the benefits you can receive ultimately depend on the effort you put in. There are numerous bankers who have grown and developed through their involvement with the FLD, and I feel confident they would recommend the FLD for others. Make 2023 the year you commit to being engaged with FLD, and seeing the benefits of getting involved. FLD Advisory Board Adds New Members The IBA Future Leadership Division welcomes two new members to the FLD Advisory Board this year. Board members advise the IBA Board of Directors on matters related to FLD events, offerings and strategies for reaching next-generation bankers and bank leaders, acting as ambassadors for the banking industry. Ryan Anderson serves as senior vice president and chief financial officer of The Fountain Trust Company, Covington. He joined the bank in 2019 as controller before being promoted to chief financial officer in 2020. Anderson earned a bachelor’s degree from Purdue University Northwest, master’s degree from the University of Illinois Urbana-Champaign, and is a graduate of the Graduate School of Banking at the University of Wisconsin. He has completed the IBA’s Leadership Development Program. Casey Shireman serves as vice president of deposit and technology services with NWSB, Charlestown. She began her banking career with NWSB (formerly New Washington State Bank) in 2014 and has served as management assistant and assistant controller/trust officer. Prior to banking she worked as a commercial underwriter. Shireman is active with Farm Bureau, Junior Achievement, the New Washington Alumni Association and various other committees. She graduated from Purdue University. HB
18 MARCH / APRIL 2023 Brady Brewer, Ph.D. Assistant Professor, Agricultural Economics Purdue University Brewer94 @Purdue.edu Midwest Agricultural Banking School Annual session celebrates 50 years AG BANKING The 2022 Midwest Agricultural Banking School was held at the end of November. Thirty-two students came from Indiana, Illinois, Ohio and Michigan. The school is co-sponsored by the Indiana, Illinois and Michigan bankers associations; the Ohio Bankers League; and the Department of Agricultural Economics at Purdue University. This was the 50th year this school has been in existence educating students from Indiana and the surrounding states. All previous participants of the school were recognized at a banquet to mark the festivities. The school consisted of three back-to-back days of instruction, with a fourth day for the 2022 Ag Clinic. The curriculum provides needed instruction while minimizing time spent away from the bank. An optional introductory session was provided on the morning prior to the start of the school. The curriculum for the school is designed to help further the education of bankers and others involved in the field of agricultural finance. Classwork features the practical aspects of agricultural credit and finance. Curriculum includes environmental audits; FSA loan program; agricultural financial statements and financial analysis; customer relationship development; land acquisition and rental arrangements; land appraisals; crop insurance; marketing alternatives used by producers; special assets; and farm policy. Faculty members include acaStudents of the 2022 Midwest Agricultural Banking School gather at Purdue University in Nov. 2022. demics, bankers and other agricultural professionals. Each instructor is carefully selected based on knowledge and presentation skills. I served as director of the 2022 school and Laurie Rees, vice president of education and training for the Indiana Bankers Association, served as registrar. The 2023 school is tentatively set for Nov. 27-29 with the Ag Clinic set for Thursday, Nov. 30, on the campus of Purdue University. Information for the 2023 school will be distributed by the state banking associations in the early fall. Contact me at (765) 494-4324 and Brewer94@Purdue.edu, or Laurie Rees at (317) 3879380 and LRees@indiana.bank for more information about the 2023 Midwest Agricultural Banking School. We congratulate the graduates of the 2022 Midwest Agricultural Banking School! HB
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20 MARCH / APRIL 2023 FEATURE Beating Back a Bad Idea How bankers united to play defense against Durbin expansion Robert S. Nichols President and CEO American Bankers Association RNichols@ABA.com There’s a saying that “everything old is new again,” and that’s certainly an adage you can bank on in Washington, D.C. – especially when it comes to poor public policy proposals. A textbook example of this unfolded during the 117th Congress, when our industry found itself once again facing a bad idea that we thought had been soundly defeated: placing restrictive routing mandates on credit cards, like those imposed on debit cards by the Durbin amendment over a decade ago. The idea came in the form of a bipartisan bill – the so-called Credit Card Competition Act – introduced in the Senate by Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan., and in the House by Reps. Peter Welch, D-Vt., and Lance Gooden, R-Texas. Bankers know all too well that the 2010 Durbin amendment had disastrous consequences for banks and their customers: it increased the costs of checking accounts and debit cards and ultimately led to the elimination of popular debit card rewards programs. The Durbin amendment’s most damaging provisions apply to banks of all sizes, causing a nearly 25% cut in the per-transaction debit card revenue earned by banks with under $10 billion in assets. At the same time, it helped line the pockets of large retailers who talked a big game about passing savings on to consumers – but 10 years’ worth of data tells us that simply isn’t what happened. In fact, the Federal Reserve published a study finding that only 1% of merchants lowered prices for consumers since the Durbin price controls took effect. What’s more, the Credit Card Competition Act goes several steps further than the Durbin amendment. Not only would it require banks to add a second network to their customers’ cards, but it would limit them to options set by the Fed, unlike the Durbin amendment, which allowed banks to choose between any two unaffiliated networks. The Credit Card Competition Act also requires banks to accept virtually any kind of transaction, functionally requiring them to onboard potentially many more than two networks, even networks that don’t meet basic data security standards. Given the potentially catastrophic effect the bill could have on community banks and bank customers – while providing no tangible cost savings or benefits for consumers – the industry sprang into action to set the record straight. Immediately following the bill’s introduction, ABA led a coalition of eight national financial services trade groups in issuing a statement of strong opposition to the bill. We then followed this up with numerous letters, op-eds, grassroots calls to action and co-branded ads with the Texas and Kansas bankers associations that ran in their respective districts. The efforts were amplified by an op-ed from the Florida Bankers Association and a creative “Don’t Let Congress Steal Your Credit Card Rewards!” social media campaign from the Missouri Bankers Association. In early December, we then expanded that effort into an all-out media blitz to stave off any last-minute efforts to attach the bill to a must-pass piece of year-end legislation. Every step of the way, our efforts at the national level were complemented by robust advocacy efforts by our partners at the state bankers associations who stepped
Hoosier Banker 21 up to make calls, attend Washington fly-ins, pen letters and columns, and even appear on national TV to address our concerns about the bill. Together, we blanketed Capitol Hill with a succinct, united message: the Credit Card Competition Act is terrible public policy that should not be enacted. Our combined efforts proved the hollowness of this bill. It failed to attract a single co-sponsor beyond the initial two in both the House and Senate or gain enough support to advance as a standalone measure and was successfully blocked from any other bills moving through Congress as the lame-duck session came to a close. This win underscores the tremendous value of our state association alliance and demonstrates the power that our industry can have when we unite behind one message. It’s also an important reminder about vigilance. We can’t say for certain whether and how these bad ideas will rear their heads again in Congresses to come. But what we can say is that if they do, our industry will be ready to respond. HB IN MEMORY OF Allen B. Chesser, Jr., 68, president & CEO of First National Bank of Monterey, passed away Dec. 28. He married his high school sweetheart, Mary L. Croy, in 1976, with whom he raised three children: Emily, Alex and Carl. The couple also had eight grandchildren. Chesser was a member of many local organizations including the Woodlawn Hospital Board, the Aubbeenaubbee Improvement Association and the Leiters Ford United Methodist Church. He earned a bachelor’s degree from Purdue University and was an alumnus of the Graduate School of Banking at the University of Wisconsin – Madison. Jimmie Lee Morrison, 79, passed away Feb. 4. He retired in 2018 from First Financial Bank, NA, Terre Haute, where he specialized in agricultural lending. Morrison is survived by his wife, Thelma, with whom he raised a son and daughter: Michael Morrison and Heather Kirchoff. The couple also had six grandchildren and eight great-grandchildren. Morrison served in the Indiana National Guard and was active in many organizations, including the Indiana Bankers Association Ag Committee, Indiana Human Resources Investment Council Board of Directors, Kiwanis Club, Knox County Chamber of Commerce and the Knox County Life After Meth program. William “Bill” E. Yoder, 74, board member of Garrett State Bank, passed away Jan. 5. Yoder was the owner of the Ford dealership in Garrett since purchasing it from his father in the late 1980s. He’d served on the bank’s board since 2013. He was also a longtime supporter of the Girl Scouts, Garrett Public Library, the Judy A. Morrill Recreation Center and a former exalted ruler of the local order of the Elks. In 2015, Yoder received the Junior Achievement Hall of Fame Award for Most Outstanding Business of the Year. He earned his bachelor’s degree from Michigan State University. HB THANK YOU infotex Blue Team Testing XDR NG SIEM infotex
22 MARCH / APRIL 2023 Rebeca Romero Rainey President and CEO Independent Community Bankers of America Rebeca.RomeroRainey@ ICBA.org FEATURE Marketing Through Community Involvement “For community banks, marketing often points to finding ways to educate, support and grow community, as well as customer knowledge and awareness.” True relationships withstand the test of time, ebbing and flowing with the cycles of life. Such is the case with the community bank–customer connection. It’s not unusual to hear about a community bank having served a family or a business for generations, and that’s a testament to the strength of the relationship. I took time recently to reflect on exactly what differentiates the community banker and how marketing can help in growing and retaining business. I kept coming back to the fact that, for community banks, marketing often points to finding ways to educate, support and grow community, and develop customer knowledge and awareness. By extension, these promotional efforts assume a natural role in a community bank’s journey, just enhancing what are already mission-critical initiatives. Consider ICBA Chairman Brad Bolton’s Community Spirit Bank in Red Bay, Alabama, and its work to share tips for financial resolutions in the local paper. Offering that information to the community helps individuals strengthen their financial savvy and supports a broader story of community bank leadership. Or look to ICBA past chairman Bob Fisher’s bank, Tioga State Bank, in Spencer, New York, and how it teams up with local television stations to support causerelated activities, like the No Shave November Cure the Blue 5K. Not only does this event help raise funds for an important program, but it also demonstrates the bank’s involvement with and commitment to its community. These examples offer only a snapshot of what community banks all over the country do to support their communities from a mission-based approach. In many cases, the added promotion these efforts deliver is a side benefit to serving the community. That’s precisely why these efforts are successful: They garner attention because they are the right things to do. These stories create a value proposition around why banking with a community bank is so vital, and the differentiation from credit unions happens by leading with the community bank relationship model front and center. So, as you think about your bank’s planned storytelling this year, know that ICBA is standing by to help. Because beyond promotion, what you do matters to the customers and communities you serve. You are and will remain a partner through your customers’ lives and financial journeys. From a marketing perspective, that’s an ideal place to be. HB
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24 MARCH / APRIL 2023 1. How do you typically read Hoosier Banker? 34.72% print edition 40.28% mix of print and digital 18.06% digital edition 6.94% I don’t, or rarely read Hoosier Banker 2. Of the five issues released so far in 2022, how many have you engaged with? 63.38% all 5 18.31% 3-4 12.68% 1-2 5.63% none 3. When you read it, how much time do you spend exploring each issue of Hoosier Banker? 21.13% up to 15 minutes 53.52% 15-30 minutes 25.35% 30 minutes to an hour 0.00% more than an hour Hoosier Banker Survey Results FEATURE 4. How many people in addition to yourself generally read your copy of Hoosier Banker? 57.75% none 25.35% 1-2 4.23% 3-4 12.68% 5+ 5. How would you rate Hoosier Banker’s promotion of IBA education and events? 56.72% Excellent 37.31% Good 2.99% Fair 0.00% Poor 2.99% no opinion Evan Hoffmeyer Assistant Vice President - Communications Indiana Bankers Association EHoffmeyer@indiana. bank The Indiana Bankers Association conducted a survey of the Hoosier Banker readership last year. Responses were collected from Oct. 20-Nov. 9, 2022, asking questions designed to help the IBA staff better understand how you, our members, are best served by the association’s flagship publication. Nearly two-thirds of respondents said they had engaged with all five issues that had been released last year at the time the survey was conducted, with the majority spending 15-30 minutes reading each issue. Readers generally preferred single-page stories with some 2-3 page articles mixed in. One of my favorite stats to see was how the magazine motivates IBA members to connect with one another, with 30% contacting a colleague they had seen in Bankers on the Move or another member feature. The IBA appreciates the feedback of our subscribers who took the time to respond to the survey. Below is a summary of the results.
Hoosier Banker 25 6. How would you rate the uniqueness of content in Hoosier Banker (you read things in this magazine you don’t see elsewhere)? 44.78% Excellent 41.79% Good 5.97% Fair 0.00% Poor 7.46% no opinion 7. What is your preferred length for articles? 12.12% half-page blurbs 65.15% single-page stories 21.21% 2-3 page articles 1.52% 4-page+ analysis 8. Which actions have you taken, at least partially as a result of reading Hoosier Banker in 2021 or 2022? (check all that apply) 55.38% registered for an IBA event (Mega Conference, Annual Convention, Banking on Women, FLD Conference or regional meeting) 29.23% registered for an IBA educational opportunity 4.62% signed up for another member benefit 21.54% donated to BANKPAC 30.77% contacted a colleague in Bankers on the Move or other member feature 36.92% forwarded my copy, either print or digital, to another colleague 55.38% saved an article or issue 49.23% visited IBA’s website 3.08% contacted an author 9.23% contacted an advertiser 10.77% none of the above 9. What description best fits your role within your institution? 14.06% CEO/President 10.94% Director 26.56% Senior Manager 31.25% Department Specialist 3.13% Branch Manager 4.69% Administrative Personnel 3.13% other 6.25% n/a – not employed with a financial institution 10. What is your role in making purchasing decisions in your area of your financial institution? 18.46% Make the final buying decision 27.69% Recommend choices directly to the decision-maker 13.85% Research and review as part of the decision-making process 20.00% Offer other input into the decision-making process 10.77% none – not involved in the decision-making process 9.23% n/a – not employed with a financial institution 11. What products/services do you intend to purchase for your financial institution in the next 12 months? (check all that apply) 32.43% Consulting services – audit 21.62% Consulting services – compliance 8.11% Consulting services – mergers & acquisitions 18.92% Consulting services – process improvement/efficiency 13.51% Consulting services – other 16.22% Credit, debit and merchant card services 13.51% Employee benefits and personnel services 16.22% Facilities design 2.70% Insurance services 16.22% Internet banking technology 8.11% Investments and investment banking 10.81% Lending services – lending platform solutions 13.51% Lending services – loan participation/purchases/sales 13.51% Lending services – tax credit opportunities 2.70% Lending services – other 21.62% Marketing and advertising 8.11% Mobile banking capabilities 24.32% Operations and technology – information security 13.51% Operations and technology – monitoring solutions 8.11% Operations and technology – network management 10.81% Operations and technology – ongoing support 5.41% Operations and technology – telecommunication solutions 5.41% Operations and technology – other 10.81% Risk management software 40.54% Staff development and training 12. What changes would you recommend for Hoosier Banker? (open response) “I enjoy getting my bimonthly magazine.” “I enjoy Hoosier Banker because it is in paper format. I read it for ideas, education and entertainment. I understand if you decide to publish solely online; however, to be truthful – I doubt I would give it much attention. After looking at a computer all day – the last thing I want to do is read a newspaper or magazine online. Perhaps an idea is to shorten the articles. Thanks for all that you do.” “I enjoy the paper magazine, like to take it home.” “IMO, the key is to keep the information useful and delivery consistent. (Not sure how you can control that for internal distribution.) Sometimes the articles feel more like ‘attaboys’ than useful information - I don’t envy the fine line you need to tread.” “Keep the hard copy. While I review electronic magazines and newsletters, I glance [at] them very quickly. When I hold a publication in my hand, I read it longer and more carefully.” “None at this time, it’s a very informative publication.” “Nothing! I enjoy it as you currently have it published.” “Print edition availability to all.” “Very well-structured magazine, combining useful articles along with updates on banks and bankers across the state.” HB
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