IBA Leaders in Banking Excellence INDIANA BANKERS ASSOCIATION SEPTEMBER / OCTOBER 2023 PLUS! 2023 Annual Convention Recap
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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. 5 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 Karen B.Woods, Non-IN HQ Banks....................................... First Financial Bank, Cincinnati 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 Larissa Fox ...................................................................................................Old National Bank, Evansville 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 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: 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.
IN THIS ISSUE 20 FUELING THE GREEN ECONOMY PSP Showcase Community banks have emerged as key players in financing renewable energy projects, challenging the dominance of large national banks. 14 ARTICLE SPOTLIGHT Rise to the Challenge 2023 Annual Convention More than 400 bankers, vendors, dignitaries and guests joined us in French Lick for IBA's Annual Convention. “We've come a long way since the ‘80s...” 40 RETIREMENT REFLECTIONS Jeffrey F. Caughron, The Baker Group A senior partner at an IBA Preferred Service Provider and Diamond Associate Member looks back on lessons learned over the past 40 years. 10 IBA Leaders in Banking Excellence RISEto the challenge
DIRECTORS / SENIOR MANAGEMENT 40 Reflections on a Career in Financial Markets Jeffrey F. Caughron, The Baker Group CLOSING NOTE 54 Partnership Financing DEPARTMENTS 25 Honorable Mentions 27 In Memory Of 29 IBA ‘High Five’ Awards 37 Taking It Easy 42 Banking on Community 43 Anniversary Milestone 44 Associate Members' Corner 46 Bankers on the Move 51 Banking Center News 53 From the Board Room 53 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 Leaders in Banking Excellence 22 SUCCESSION PLANNING Rebeca Romero Rainey, ICBA 24 PARTNERS IN THE FIGHT AGAINST ELDER ABUSE Robert S. Nichols, ABA 32 STATE DEPOSITS Jan. 1 - June 30, 2023 38 3 FUNDAMENTAL STEPS TO CRAFTING THE IDEAL BRANCH Jared Monce, Design Collaborative ARTICLES ARTICLE SPOTLIGHT 14 2023 Annual Convention Recap FLD FOCUS 18 Embrace Your Future with FLD Josh Myers, IBA PSP SHOWCASE 20 Fueling the Green Economy Joshua C. Miller, The Keystate Companies COMPLIANCE CONNECTION 26 Electronic Lien Filing Fees Brett J. Ashton, Krieg DeVault LLP HUMAN RESOURCES 28 Tracking Down Beneficiaries Mary Hopkins, Ascensus 34 Important FMLA Guidance Debra A. Mastrian, Amundsen Davis GR SUMMIT 30 Federal Legislative Landscape Dax Denton and Ross Teare, IBA INDIANA BANK & THRIFT UPDATE 36 Stock Analysis Michael A. Renninger, Renninger & Associates LLC 38 42 INTERACT WITH US
6 SEPTEMBER / OCTOBER 2023 Don’t Miss Out! Midwest Agricultural Banking School Nov. 27-30 Learn the latest about ag credit and finance at Purdue University. Indiana Economic Outlook Luncheon Dec. 1 Listen and learn about what to expect in the economic landscape for 2024. BSA Graduate School Feb. 6-7 Learn about Bank Secrecy Act requirements, plus cybercrime and other related topics. For event updates, visit: indiana.bank/calendar Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank VANTAGE VIEWPOINT Laura Wilson, retired IBA vice president of communications, accepted the Governor’s Century Business Award from Indiana Economic Development Corporation chief operating officer David Rosenberg, left, and Gov. Eric J. Holcomb, right, on behalf of the Association. Honorees were recognized at a reception Wednesday, Aug. 9, 2023, at the Statehouse. The honor recognizes Hoosier companies and organizations that have remained in operation for at least 100 years. Wilson was integral in obtaining the recognition as part of the IBA’s year-long 125th anniversary celebration in 2022. Autumn is always a busy time in the Van Til household. We’ve traded summer baseball for fall soccer and, as hard as it is to believe, we’re already making plans for Christmas. We’re just as busy in the office between state and federal government relations tracking and advocacy, to putting on some of our biggest events of the year. As I write this, we just wrapped up our Annual Convention, which you can read more about on page 14 of this issue. I look forward to working with your newly elected 2024 chairman Ben Bochnowski of Peoples Bank, Munster, and the rest of the board. I also want to thank Jamie Shinabarger for his work as our chair so far this year. I know he will finish strong and ensure a seamless handoff into the new year. By the time you read this, we will also have put on our Security & Technology Conference, FLD Leadership Conference, Advanced Agricultural Bankers Conference and the IBA Annual Washington Trip. In August, we inducted our 2023 class of Leaders in Banking Excellence. Meet this year’s honorees in our cover story starting on page 10. The Aug. 4 event also marked the formal unveiling of our new Wall of Excellence permanently on display at IBA headquarters in Indianapolis, showcasing the 40 bankers who have been inducted since the program’s inception in 2018. Be sure to check it out the next time you attend one of the Association’s many professional development opportunities. It feels like just yesterday that we adopted the IBA’s current threeyear strategic plan, but we are halfway through its implementation. Your IBA staff is following a detailed grid of more than 100 action items to push the Association forward in government relations, banking talent, operational effectiveness, new ventures and future opportunities. You can see a copy of the plan at indiana.bank/strategicplan. As we head into Q4, be sure to reach out to the Association if there’s anything we can do to help you finish out the year strong and set you up for success in 2024. As always, it is a pleasure to serve each of our members. HB
Hoosier Banker 7 Down the home stretch of 2023, I asked Amber Van Til to identify where I might be able to help the Association the most, and she succinctly pointed out four areas of focus. Supporting bank members in a time of industry-wide uncertainty Asset quality has been resilient up to now, but with a 500+ basis point increase in rates, how will our commercial borrowers and households hold up to the increase in their debt service? Will the Indiana banking industry experience increased consolidation if rates stay high for as long as the Federal Reserve is now telegraphing? Budget constraints caused by those rapidly rising interest rates are compounded by a regulatory environment that places a bounty on “junk fees,” described by the Biden administration as those without merit or justification. We would describe them as charging for a service the customer values and even demands – a charge that can be avoided if they manage their account judiciously. This uncertainty casts a shadow over the industry we represent. Newly minted 1071, Durbin 2.0 and a myriad of other burdensome regulations threaten the existence of small banks altogether and carry a heavy cost for even the biggest banks – a cost that gets paid by the customer no matter how you slice it. It is within this business climate that the Association needs to take a cautionary position as we wait for 2024 and beyond to fully unfold. BANKPAC The 2023 BANKPAC campaign represents one of our most direct ways to influence the legislative environment that lies ahead. Last year we performed like gangbusters, hitting $410,000 in contributions when we budgeted only $350,000. I issued a challenge at the 2022 Annual Convention to increase that to $450,000 this year. The clout of Indiana banking hangs in the balance and these funds complement the trust and credibility IBA has built with in-state legislators over many, many years. Our voice also reverberates in Washington through a portion of the BANKPAC, making material contributions to the American Bankers Association’s and Independent Community Bankers of America’s respective PAC efforts to address banking legislation at the federal level. Annual IBA Washington Trip Everything we are, think and do in Indiana community banking revolves around relationship building. This starts with our customers, but extends to our staff, communities, legislators and regulators. The IBA’s Annual Washington Trip provides the opportunity to augment grassroots relationship building that starts within our local voting Jamie R. Shinabarger Chairman Indiana Bankers Association CEO and Director Springs Valley Bank & Trust Company, Jasper CHAIRMAN'S REPORT Hoosier Heartland State Bank • @myhhsb • Jul 25 The next class in our Youth Financial Education series is tonight! Join us at @Fusion54CVille @ 6 PM or tune in via Zoom for “It’s Not What You Spend, It’s What You Save!” Want to dive into financial literacy on your own time? Visit myhhsb.learnbanzai.com to learn more. Riddell National Bank • @RiddellNatlBank • Jul 25 Excited to announce that RNB is proud to support the THPD Outreach Program! Making a difference in our community is what it’s all about. #CommunityOutreach #THPD #CommunityBank 1st Source Bank • @1stSourceBank • Jul 15 The LaPorte County Family YMCA’s Summer Day Camp program in Michigan City is such an important resource for families in our community! The 1st Source Foundation is happy to partner with them to offer this program to local kids! #communityleadership Home Bank • @HomeBank_1890 • Jul 3 At Home Bank, we believe it’s better to give than receive! We are excited to announce our newest recipient of the Home Bank Gifting Program, Artesian Little League. Little League Baseball has long been a cherished institution that has captured the heart of our community. Security Federal Savings Bank • @sfsbank • Jun 3 We are so proud to sponsor teams of kiddos who love to play soccer!! Our very own Branko Isailovic coaches and mentors every chance he gets. #playsoccer #goteam #communitymatters Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter districts. When we show up with 75-100 community bankers on Capitol Hill and the halls of the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, etc., we are saying loud and clear that we are here to engage, and we are committed to our cause through the investment of our time and resources. My challenge for our members this year was to send 100 bankers to Washington for our annual Washington trip. There will be a recap of the trip in the November/December Hoosier Banker. Being the voice of the Indiana banking industry Finally, one cannot underestimate the gravity of representing the interests of community bankers across Indiana through our messaging. Speaking on behalf of the Indiana banking industry behooves us to truly understand the issues and help create consensus on a path forward. Many good ideas and messages must be honed into a few pointed messages that resonate with the majority while attempting not to leave anyone behind. We try very hard not to get caught up in the politics of the day, but to maintain the ability for our bankers to operate as independently as possible while preserving the fiduciary-driven decisions that have served us for the last century. HB
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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 IRA School Oct. 17-18 • IBA Center Leadership Development Program – Session 4 Oct. 17-19 • Abe Martin Lodge Brown County State Park Bank Security Officer Forum Oct. 19 • IBA Center Compliance School: Regulations Z Module Oct. 19-20 • Virtual Marketing Directors Forum Oct. 24 • IBA Center Certified Teller Program – Angry Customers, Irate Customers, Active Shooters and Robberies: De-escalation Tools, Tips and Techniques to Address Volatile Situations Oct. 24 • Virtual Information/Cybersecurity/IT/ Operations Officer Forum – Group 1 Oct. 25 • IBA Center Information/Cybersecurity/IT/ Operations Officer Forum – Group 2 Oct. 25 • IBA Center Certified Teller Program – Angry Customers, Irate Customers, Active Shooters and Robberies: De-escalation Tools, Tips and Techniques to Address Volatile Situations Oct. 26 • Virtual Compliance School: Lending Module Oct. 26-27 • Virtual Marketing and Advertising Compliance Oct. 31 • IBA Center Retail Banking Management Series – Part 4: Raising the Bar for Sustainable Growth Nov. 2 • IBA Center Chief Operations Officer Forum Nov. 3 • IBA Center Banking on Women Conference Nov. 8-9 • Marriott Indianapolis North Community Bankers for Compliance – Part 4 Nov. 14 • IBA Center & Virtual Emerging Leader Digital Program – Part 5: Coaching 101 – Performance & Growth Nov. 15 • Virtual Human Resources Directors Forum Nov. 15 • IBA Center Chief Financial Officer Forum – Group 1 Nov. 16 • IBA Center Professional Development/Education/ Training Forum Nov. 16 • IBA Center Chief Financial Officer Forum – Group 2 Nov. 17 • IBA Center Midwest Agricultural Banking School Nov. 27-30 • Purdue University West Lafayette Risk Management Forum Nov. 29 • IBA Center Ag Clinic Nov. 30 • Purdue University West Lafayette Indiana Economic Outlook Luncheon Dec. 1 • Ritz Charles • Carmel Treasury Management Forum Dec. 4 • IBA Center Advanced Commercial Lending School Dec. 5-6 • IBA Center Home Mortgage Disclosure Act Seminar Dec. 6 • IBA Center Loan Operations Manager Forum Dec. 7 • IBA Center Emerging Leader Digital Program – Part 6: Coaching, Performance Reviews & Leadership Plan Dec. 12 • Virtual Internal Bank Audit School Dec. 12-13 • IBA Center BSA Graduate School Feb. 6-7 • Virtual 2024 Leadership Development Program – Session 1 March 18-20 • Abe Martin Lodge Brown County State Park FDIC Director College March 21 • IBA Center General Banking School (in partnership ǁith the <entƵĐŬLJ anŬers ssŽĐiaƟŽnͿ June 3-7 • Griffin Gate Marriott Lexington, KY Commercial Lending School June 10-14 • IBA Center NOTE: For the latest information about IBA event dates, locations and format, please visit: indiana.bank/calendar CALENDAR UPDATE
10 SEPTEMBER / OCTOBER 2023 COVER STORY IBA Leaders in Banking Excellence Class of 2023 Inductees and dignitaries gathered for the presentation of the Indiana Bankers Association’s 2023 Leaders in Banking Excellence Awards. Shown are, from left, Michael K. Bauer, WesBanco Bank, Wheeling, W.Va.; Thomas C. Fite, Indiana Department of Financial Institutions; Sen. Scott Baldwin, R-Noblesville; Michael E. Schrage, Centier Bank, Merrillville; Michael F. Petrie, Merchants Bank of Indiana, Carmel; Senate President Pro Tempore Rodric Bray, R-Martinsville; and Sen. Travis Holdman, R-Markle.
Hoosier Banker 11 Class of 2023 Plaque Inscriptions Michael K. Bauer is senior vice president and senior credit officer for the Indiana, Kentucky, Ohio and Tennessee markets with WesBanco Bank, Wheeling, West Virginia. He previously served as executive vice president, commercial lending for MainSource Bank, Greensburg; president and CEO of Regional Bank, New Albany; and president and CEO of Harris Bank, Bartlett, Illinois. He is chairman of the board of advisors of IU Southeast and a member of the American Bankers Association Membership Council. Additionally, Bauer has served on the boards of the Southern Indiana Chamber, the Economic Development Corporation of Southern Indiana and the Arts Council of Southern Indiana. He earned a bachelor’s degree from Eastern Illinois University and an MBA from DePaul University. Bauer served the IBA as 2010 chairman of the board; he also is a past director of the Community Bankers Association of Indiana. Michael F. Petrie, CMB, is chairman and CEO of Merchants Bancorp. He co-founded Merchants Capital with the goal of increasing access to affordable housing in the Midwest. Petrie chaired the Mortgage Bankers Association (MBA) in 2004-05 and has served on numerous boards of directors including the Federal Home Loan Bank of Indianapolis, the Society of Certified Mortgage Bankers, the Indiana Association of Community and Economic Development, the Indianapolis Neighborhood Housing Partnership, the Indiana Affordable Housing Council, the Marian University Board of Trustees and the Indianapolis Chamber of Commerce. He earned both his bachelor’s and master’s degrees from the Indiana University Kelley School of Business, earned the certified mortgage banker designation from the MBA, is a member of the IBA 40 Year Club and was named a Sagamore of the Wabash in 2004. Michael E. Schrage is the chairman and CEO of Centier Bank, Merrillville. He first joined the bank in 1972 when it was known as Bank of Whiting, eventually being elected chairman of the board in 1982. Schrage is the fourth-generation leader of the family-owned financial institution. Under his leadership, Centier became the largest private, family-owned bank in Indiana, receiving national recognition and accolades such as the Best-in-State Banks Award from Forbes annually 2019-2023. Schrage has served numerous community organizations including the Northwest Indiana Symphony, St. Jude House, American Red Cross, YMCA and the Calumet Council Boy Scouts. He is an alumnus of Culver Academy, earned his bachelor’s degree from Denison University and a master’s from the University of Colorado-Boulder. He was named a Sagamore of the Wabash in 1995 and is a member of the Indiana Bankers Association 40 Year Club. HB The Indiana Bankers Association created the Leaders in Banking Excellence Awards in 2018 to showcase exceptional individuals who have positively impacted Indiana banks and the communities they serve. With three new honorees in the class of 2023, the association has now bestowed its highest honor upon 40 Indiana bankers. This year’s awards were presented on Friday, Aug. 4, at a ceremony at the IBA’s offices in Indianapolis. Dignitaries who presented the awards were Sen. Rodric Bray, president pro tempore of the Indiana State Senate; Sen. Travis Holdman, majority caucus chair of the Indiana State Senate; Director Thomas C. Fite, Indiana Department of Financial Institutions; IBA Chairman Jamie R. Shinabarger; and Amber R. Van Til, IBA president and CEO. Each honoree was invited to make their own comments and was then presented with an ebony keepsake plaque. The ceremony culminated with a viewing of the new permanent Wall of Excellence on display at the IBA offices, with crystalline plaques showcasing all Leaders in Banking Excellence since the inception of the award. All inductees were nominated by IBAmember organizations and approved by the IBA Board of Directors. Congratulations to the 2023 class of Leaders in Banking Excellence: Michael K. Bauer, WesBanco Bank, Wheeling, WV Michael F. Petrie, Merchants Bank of Indiana, Carmel Michael E. Schrage, Centier Bank, Merrillville MICHAEL K. BAUER WesBanco Bank New Albany MICHAEL F. PETRIE Merchants Bank of Indiana Carmel MICHAEL E. SCHRAGE Centier Bank Merrillville
The Indiana Bankers Association officially unveiled a new Wall of Excellence at its headquarters on the northeast side of Indianapolis as part of the ceremony honoring the 2023 class of IBA Leaders in Banking Excellence on Friday, Aug. 4, 2023. This wall of honor is on permanent display with each new class added to the existing honorees. LEADERS IN BANKING EXCELLENCE GALLERY 12 SEPTEMBER / OCTOBER 2023
Hoosier Banker 13
14 SEPTEMBER / OCTOBER 2023 ARTICLE SPOTLIGHT RISEto the challenge 2023 ANNUAL CONVENTION RECAP
Thank you to the more than 400 bankers, vendors, dignitaries and guests who joined us in French Lick Aug. 27-29 for IBA’s 2023 Annual Convention. Packed with insightful discussions, valuable networking and impactful presentations, this year’s convention inspired attendees to Rise to the Challenge. With plenty of opportunities to forge new connections and embrace old friends, it was another great year for all. Featured Sessions & Speakers Programming kicked off with an eye on the industry’s most pressing issues. Matt Miller from FinPro led a session on “Solving the Liquidity Crisis,” delving into strategies to address liquidity challenges in the ever-changing financial environment. One of the most highly attended sessions, though, came later that morning in the form of our industry leaders panel featuring both Rebeca Romero Rainey, CEO of the Independent Community Bankers of America, and Rob Nichols, CEO of the American Bankers Association. Additional sessions ranged from the role of finance in driving digital sales to leveraging AI for banking success. At breakfast Tuesday morning, attendees heard a keynote from Lee Wetherington of Jack Henry & Associates looking ahead to the forces that will shape banking over the next decade. Dr. Chris Kuehl from Armada Corporate Intelligence closed the roster with an economic outlook offering a glimpse into the economic landscape banks will navigate in the months and years ahead. Live Illustrator Adding a unique dimension to this year’s convention was live illustrator Matt Orley from Big Paper Strategy. With his exceptional visual storytelling skills, he captured the essence of each educational session through his artistry. Attendees were treated to his captivating work, displayed on large panel boards throughout the convention. Bonding & Banquets The schedule was carefully crafted to balance learning with engagement and camaraderie. As attendees arrived, they had the opportunity to tee off at the annual golf tournament at the Donald Ross Course. Sunday evening featured a lively opening reception in the exhibit hall, fostering connections and setting the tone for the rest of the convention. Attendees put on their fanciest threads for the black-tie optional Chairman’s Banquet. Post-dinner entertainment was provided by the high energy, all-request dueling pianos duo Felix and Fingers. Monday evening brought the Future Leadership Division auction and dinner. Members had the opportunity to bid on silent auction items from Notre Dame football tickets and sports memorabilia to jewelry and designer handbags, top-of-the-line tech and even children’s toys, to support Indiana BANKPAC. Live auction items included a guitar signed by Paul McCartney, two Allen Edmonds Shoe Shopping Experiences and more. By the end of the evening, nearly $100,000 had been raised for the PAC between the silent auction, live auction and sweepstakes drawing for an all-expenses-paid trip to Paris. The night ended with the annual Euchre tournament, with cash prizes for the top three players. Players and spectators alike got to enjoy late-night pizza along with drinks. Special Recognition At the banquet, 2023 Chairman Jamie R. Shinabarger was honored for his contributions this year, and was presented with a Sagamore of the Wabash by State Sen. Travis Holdman, R-Markle. He then ceremoniously passed the chairman’s gavel to 2024 Chair Benjamin J. Bochnowski. Ben, his fellow officers and other directors were formally elected at Monday’s lunch. State Rep. Jeff Thompson, R-Lizton, was recognized as the 2023 IBA Legislator of the Year. The retired chemistry, physics and math teacher from Danville Community High School now serves as vice chair of the board at North Salem State Bank and owns a small hay and straw business. Thank you to all who attended this year’s convention, and a special thanks to all our generous sponsors. Be sure to join us for next year’s Annual Convention, scheduled for Sept. 8-10, 2024, in French Lick. HB Christina M. Bennett, CMP Vice President – Meetings & Events Indiana Bankers Association CBennett@indiana.bank Hoosier Banker 15
VISUAL STORYTELLING COMES TO LIFE! thank you, sponsors American Bankers Association Amundsen Davis LLC Angott Search Group The Baker Group Banc Card of America Inc. Banc Consulting Partners BancMac Bankers’ Bank Bedel Security Check Printing Contract Consulting Cherry Bekaert (formerly MCM CPAs & Advisors LLP) Cinnaire Corporation CLA Crowe LLP ETS Environmental & Associates LLC Executive Benefits Network Federal Home Loan Bank of Indianapolis Floodplain Consultants Inc. FORVIS Glia Green Sign Company Hartman Executive Advisors IBA Group Insurance Trust ImageQuest LLC Independent Community Bankers of America Independent Correspondent Bankers’ Bank Inc. infotex Investors Title Insurance Company IT Resource LLC K4 Architecture + Design The KeyState Companies Krieg DeVault LLP Ncontracts NFP Executive Benefits Plante Moran The Plateau Group Inc. Profit Resources Inc. Renninger & Associates LLC S&P Global Market Intelligence Title Center of Indiana LLC Travelers United Bankers’ Bank UnitedHealthcare 16 SEPTEMBER / OCTOBER 2023
CONVENTION GALLERY Hoosier Banker 17
18 SEPTEMBER / OCTOBER 2023 Josh Myers Vice President - Member Engagement Indiana Bankers Association JMyers@indiana.bank FLD FOCUS While the IBA’s Future Leadership Division has been going strong since it was revitalized nearly a decade ago, it’s important to reflect on the FLD and the opportunities it provides as new professionals continue to join the banking industry. The Future Leadership Division’s mission is to connect banking professionals within IBA membership by providing education, networking and volunteer opportunities. The FLD seeks to develop and inspire emerging leaders who will continue to advocate for and sustain the future of Indiana’s banking industry. FLD membership is intended for IBA-member bankers and associate members pursuing a long-term career in the banking industry. It is not exclusive to future bank presidents, CEOs or executive-level employees, because leadership happens at all levels and within all departments of the bank. The FLD is designed for self-motivated bankers who want to grow their leadership ability and help lead banking initiatives. It is important to note that FLD membership costs nothing. There is no risk or obligation in joining, and members are invited to take advantage of opportunities as their schedules permit. Member benefits are plentiful and include opportunities designed to help develop leadership potential. Embrace Your Future with FLD Networking Without a doubt, access to networking opportunities is the most recognized benefit of being involved. FLD brings together emerging leaders who have a common interest in growing professionally, providing them with a peer group that allows them to share their struggles, successes and everything in between when it comes to growing as a bank leader. Regardless of geographic location, job title or bank department, those who engage with FLD networking events regularly benefit from this large peer group throughout their career. Education The FLD provides several outstanding educational opportunities throughout the year for members to utilize. % Networking lunches and virtual coffee club meetings provide peer roundtable discussions. % The annual FLD Day at the Statehouse offers a crash course in grassroots advocacy and its career importance. % The can’t-miss FLD Leadership Conference is a two-day event of educational speakers, roundtable discussions and more. Volunteerism This aspect of FLD continues to evolve as the banking industry changes and new opportunities emerge. One thing that we always hope FLD members will embrace
Hoosier Banker 19 is the need for grassroots advocacy. From participating with IBA action alerts about specific banking issues, to attending regional meetings or the annual Washington trip, new leaders are always needed to push forward our grassroots advocacy efforts for long-term success, and FLD members can be the next generation of grassroots leaders. Opportunities also exist in promoting banking careers and building the image of banking that FLD members can support. The IBA Future Leadership Division provides worthwhile opportunities for today’s emerging leaders, including the chance to make a positive impact on the lives of others. It can help you, your bank, your community and the industry grow. If you are looking for a way to get more involved with the industry, sign up today to join the more than 500 banking peers who share your interests and desire to grow in the industry. Learn more and sign up now at indiana.bank/Future-Leadership-Division. HB BANCMAC provides correspondent and wholesale lending and is your Community Bank Mortgage Partner to help your financial institution originate fixed-rate secondary market loans including: PROGRAMS • Conventional Loans • USDA Rural Development Loans • Rural Living (Hobby Farm) Loans • VA Loans • Jumbo Loans • FHA Loans OUR PARTNERS RECEIVE: • Superior Service & Competitive Pricing • No Minimum Volumes • Significant, Non-Interest Fee Income • Non-Solicit Protections & More BANCMAC COMMUNITY BANC MORTGAGE CORP. YOUR COMMUNITY BANK MORTGAGE PARTNER bancmac.com mortgages@bancmac.com 888.821.7729 | NMLS# 571147
20 SEPTEMBER / OCTOBER 2023 PSP SHOWCASE Joshua C. Miller CEO The KeyState Companies JMiller@Key-State.com In recent years, community banks have emerged as key players in financing renewable energy projects, challenging the dominance of large national banks. With the extension and expansion of investment tax credits (ITCs) and government guarantee programs, such as the U.S. Department of Agriculture’s Renewable Energy for America Program (REAP), community banks are rapidly increasing their involvement in financing renewable energy projects. If your institution isn’t taking advantage of these opportunities, you’re missing out on the benefits of tax equity investments and renewable energy lending for community banks. Shifting Landscape in Renewable Energy Financing Until recently, large national and super regional banks held a monopoly on financing renewable energy Fueling the Green Economy The growth of renewable energy financing by community banks projects. However, the demand for small and mid-size renewable energy projects, driven by state and local governments, corporations with renewable energy targets and incentives like the ITC, has created an opportunity for community banks to enter the market. Community banks are well-suited to finance smaller projects that align with their local communities’ needs. The Power of Tax Equity One avenue for community banks to engage in renewable energy financing is through tax equity investments. By investing in a solar tax equity fund, community banks can reduce the developer’s reliance on debt and capital, making projects more feasible. Solar tax equity investors benefit from a 30% (or higher) ITC, tax losses from project depreciation and stable cash returns over a 5-6 year holding period. The recent extension of the ITC for at least 10 more years ensures that investors KeyState is a Preferred Service Provider of the Indiana Bankers Association.
Hoosier Banker 21 can build a portfolio of solar tax equity investments that provide a meaningful, annual benefit. Supporting Community Banks KeyState has been facilitating solar tax equity investments by community banks since 2019 when it formed KeyState Renewables and launched the SOLCAP tax equity fund platform. To date, SOLCAP has raised and deployed $275 million in tax equity, financing 53 projects across the U.S. SOLCAP’s typical investors are community banks with $2-$25 billion in assets. Nearly all the banks invest annually to establish a recurring, annual earnings benefit for their institution. To help community banks comply with the regulatory and accounting requirements for solar tax equity investments, KeyState offers comprehensive underwriting packages, provides financial and GAAP models, and serves as the fund asset manager, providing quarterly updates on investments. This support helps community banks confidently navigate solar tax equity investments. Expansion into Renewable Energy Lending As community banks gain familiarity with renewable energy project finance, many are seeking to expand their involvement beyond tax equity investments. They may explore opportunities to provide construction and permanent lending for small and mid-size solar projects. Programs like REAP offer government guarantees for rural project loans that meet specific criteria. The recent announcement of the Empowering Rural America (New ERA) program further incentivizes developers to build rural projects that community banks can finance. Embracing the Renewable Energy Industry Community banks have a remarkable opportunity to participate in and benefit from the fast-growing renewable energy industry. By diversifying their financing platforms and supporting the transition to clean energy, community banks can align with their communities’ sustainability goals while generating long-term economic benefits. The renewable energy financing landscape is undergoing a transformation, with community banks playing an increasingly vital role. Through tax equity investments and renewable energy lending, community banks are capitalizing on the opportunities presented by the expanding renewable energy sector. KeyState is committed to supporting community banks as they navigate and expand their renewable energy financing initiatives, positioning them as key contributors to a sustainable future. HB KeyState Captive Management LLC’s bank captive program is endorsed by the Indiana Bankers Association. While the KeyState solar tax equity investment program is not endorsed by the IBA, we believe it is a valid opportunity for consideration.
22 SEPTEMBER / OCTOBER 2023 Rebeca Romero Rainey President and CEO Independent Community Bankers of America Rebeca.RomeroRainey@ ICBA.org Our success lies in the things we don’t have to do.” Earlier this year, I attended the Independent Bankers Association of Texas’ EDGE event, and when Hazem Ahmed, the chairman of the IBAT Education Foundation, uttered those words, I sat up and took notice. That’s because as leaders, this sentiment resonates as we consider the future of our banks and our communities. What are we doing outside of our daily operations to support the next generation? How are we bringing our teams along with us? In short, what are we doing that we don’t have to do to create continuity and lasting success? This concept really rears its head when we consider succession planning. As we think about who will fill our shoes, we need to recognize that preparing for the future is not as much about filling a particular job description as it is about creating a conscious path for our banks and communities. To paraphrase immediate past chairman Brad Bolton, we aren’t just building bank leaders, we’re cultivating community continuators. That goes beyond running the bank. So, when we look at staff development, our focus cannot be solely on Succession Planning Cast a vision instead of creating a job description Preparing for the future is not as much about filling a particular job description as it is about creating a conscious path for our banks and communities. FEATURE that new role or title. It needs to address how what we’re doing today will prepare and grow them for the future. It takes conscious planning and preparation, extending further than development plans to inspire our teams to want to be the next community continuators. When I speak on this topic, I often ask for a show of hands in the room of how many people have identified their successor. A fair number of hands rise. Then I ask, “Does that individual have any clue what you’re thinking?” The chuckles I get from that follow-up are fascinating. All too often, we’ve decided this person could do the job, but we’re not telling them. We need to have these conversations and let people know they have great potential, because our careers are journeys, not destinations. While we can’t guarantee what the future holds, we can share our vision and provide that individual with a sense of purpose and an inspiration for what their role could become. I encourage you to ask yourself what more you could do to launch the next generation of community continuators. I’m betting you’ll come up with a few new ideas, and chances are that these “unrequired” actions are a key to your bank’s continued success. HB “
H IS YOUR COMMUNITY BANK SECURE? Meet Dina. Dina provides clients with the guidance they need to steer clear of card fraud all year long. Working together with ICBA Bancard partners, she ensures client banks are receiving the level of care and support they deserve. Even when she’s waiting to pick up her kid from practice, she’s scribbling notes on how we can better protect banks from fraud. By working with ICBA Bancard, your bank has Dina’s ongoing support. Learn more at icbabancard.org
24 SEPTEMBER / OCTOBER 2023 FEATURE Robert S. Nichols President and CEO American Bankers Association RNichols@ABA.com According to a 2022 FinCEN advisory, elder fraud scams affect at least 10% of older adults in the U.S. annually. But because fraud and scams are often significantly underreported, it means that the actual percentage of victims is likely much higher. Elder financial exploitation generally falls into one of two categories. The first is elder theft, in which a trusted individual like a family member or caregiver steals from an older person by forging checks, stealing retirement or Social Security benefits, using credit cards or bank accounts without permission, or other means. The second is elder scams in which a stranger succeeds in coercing an older adult into transferring money to them through tech support scams, romance scams or other impostor scams. Seniors are often targeted for their accumulated wealth, and these scams can be financially and mentally devastating to the victims. In fact, the average loss per older adult was just over $35,000 in 2022, according to the FBI’s Internet Crime Complaint Center. In worst cases, seniors may lose their life savings or their homes. That’s why it’s critical for bankers — who are on the front lines in the fight against elder financial exploitation — to have a solid understanding of the red flags that can signal when an older customer is potentially being exploited. This might look like an older customer making sudden or unusual changes to their account like adding new contacts located overseas, making uncharacteristic attempts to wire large sums Partners in the Fight Against Elder Abuse of money, or seeming fearful of or submissive to a caregiver or family member. This year, the ABA Foundation has partnered with the FBI to create a new guide for bankers to help them recognize, respond and report suspected elder financial exploitation to the proper authorities. The guide outlines red flags, provides steps bankers can take if elder abuse is suspected and includes a list of agencies and other partners that can provide additional resources. The ABA Foundation also offers its popular Safe Banking for Seniors program, a free national program that provides bankers with helpful tools and resources to connect with their local communities to discuss topics like avoiding scams, preventing identify theft, choosing a financial caregiver and more. Any bank in the country — member or non-member — can access these free resources by registering at ABA.com/Seniors. You can also access a comprehensive list of resources for older Americans at ABA.com/OlderAmericans. Finally, ABA continues to support the fight against fraud more broadly through its award-winning #BanksNeverAskThat campaign. The consumer-facing awareness campaign aimed at educating the public about the types of information banks would never ask them to disclose over the phone or via text or email will be back this fall, complete with updated resources. Check it out at ABA.com/BanksNeverAskThat and register to join the more than 2,200 banks across the country doing their part to protect their customers. HB
Hoosier Banker 25 HONORABLE MENTIONS The Ag Department at Bath State Bank was named one of the Independent Community Bankers of America’s Top Agricultural Lenders for 2023. The bank was ranked 4th among farm lenders across the nation with assets less than $300 million. The recognition is based on strength of relationships, competitive banking services and loan growth ranked by dollar volume. Hoosier Heartland State Bank, Crawfordsville, ranked 11th for banks with $300 million - $1 billion in assets and First Bank of Berne ranked 5th among banks with more than $1 billion. Centier Bank, Merrillville, was named one of the Best Places to Work in Indiana by the Indiana Chamber of Commerce. The bank was ranked #3 out of 17 honorees in the Large Company category (250-999 employees). Rankings are determined through employer reports and anonymous, comprehensive employee surveys. This is the 17th year in a row that the bank has made the list. IBA Diamond Associate Member NFP made the list for small companies (15-74 employees). Brock Iseminger, president and CEO of Community State Bank, Brook, was named one of the Independent Community Bankers of America’s 40 Under 40 Community Bank Leaders for 2023. Honorees are chosen for their work “making a difference in their banks and communities through trailblazing innovations, a philanthropic spirit and a dedication to their industry.” Bath State Bank’s Ag Department includes, from left, Maria Chesnut, administrative assistant; Annette Meier, administrative assistant; Krissy Myers, vice president, ag loan department operations manager; Molly Belmonte, credit analyst; Alex Nocton, vice president, ag loan officer; Barb Bruns, administrative assistant; Keaton Mueller, ag loan officer; and Brandon Ertel, assistant vice president, ag loan officer. (Not pictured: Greg Selking, assistant vice president, ag loan officer) Craig Dwight, the outgoing chairman and CEO of Horizon Bank, Michigan City, was presented with the Sagamore of the Wabash for his civic leadership and significant contributions to his community. He has served on and chaired his local hospital board, the United Way of La Porte County and the local economic development corporation. Dwight has also chaired fundraising campaigns for the United Way, Salvation Army, Boys and Girls Club, the Martin Luther King Center, Michigan City Area Schools and the La Porte County YMCA. He has also served on the Michigan City Aviation Commission, the Michigan City Economic Development Commission, the Chicago Federal Reserve Bank’s Community Financial Institutions Counsel and more. In June, Forbes released a list of the top five banks in Indiana. Four of the five that made the list in Indiana are Indiana Bankers Association members. In ranked order, they were. 1st Source Bank, South Bend; First Farmers Bank & Trust Co., Converse; Centier Bank, Merrillville; and Fifth Third Bank, Cincinnati. The rankings were based on a survey of 31,000 U.S. residents who were asked to name all the banks and credit unions where they had a checking or savings account, and then to evaluate each on its customer service, quality of financial advice, whether fees are transparent and reasonable, ease of navigating the company website, on-location branch services and overall level of trust. Large, nationwide banks and credit unions with branches in 15 or more states were excluded so the list would reflect community and regional institutions. HB
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