Preserving Benefits While Controlling Costs INDIANA BANKERS ASSOCIATION NOVEMBER / DECEMBER 2023 PLUS! 2023 FLD Leadership Conference Recap
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. 6 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 ICBA State Director..........................................................................................................election pending 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 10Preserving Benefits While Controlling Costs 26 COUNTERFEIT CHECKS Compliance Connection When a fraudulent check is cashed and the bank of first deposit is slow or even refuses to reimburse you for the loss, do you have to reimburse the customer? 14 ARTICLE SPOTLIGHT FLD Leadership Conference More than 90 members of IBA’s Future Leadership Division gathered in downtown Indianapolis Sept. 12-13 for networking, professional development and axe-throwing. 50 ARTIFICIAL INTELLIGENCE Benefits & Challenges It’s critical to embrace the advancements of the future, but also to consider the security and regulatory requirements and overall risk to the organization and your customers.
27 32 INTERACT WITH US DIRECTORS / SENIOR MANAGEMENT 38 Is Your Balance Sheet Recession-Ready? Dale Sheller, The Baker Group PSP SHOWCASE 46 PSP Year-End Summary 2023 Rod Lasley, IBA INDIANA BANK & THRIFT UPDATE 40 Stock Analysis Michael A. Renninger, Renninger & Associates LLC CLOSING NOTE 62 IBA Board Review David M. Findlay, Lake City Bank DEPARTMENTS 12 Anniversary Milestones 20 From the Board Room 23 Banking on Community 27 Banking Center News 30 Honorable Mentions 45 IBA ‘High Five’ Awards 49 Taking It Easy 55 Associate Members' Corner 57 Bankers on the Move 61 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 Preserving Benefits while Controlling Costs Evan Hoffmeyer, IBA 22 ADVOCATING FOR ACRE Robert S. Nichols, ABA 24 RIDING THE REGULATORY ROLLER COASTER Rebeca Romero Rainey, ICBA ARTICLES ARTICLE SPOTLIGHT 14 FLD Leadership Conference Josh Myers, IBA HUMAN RESOURCES 18 Employee Harassment by Customers Debra A. Mastrian, Amundsen Davis 42 What You Need Before Opening an HSA Ascensus 52 Upskilling and Reskilling OnCourse Learning COMPLIANCE CONNECTION 26 Counterfeit Checks: Who is Liable? Brett J. Ashton, Krieg DeVault LLP CONGRESSIONAL UPDATE 28 Securing our Financial Future U.S. Rep. Erin Houchin, Indiana's 9th District GR SUMMIT 32 Being A Voice for Hoosier Bankers Dax Denton and Ross Teare, IBA FINANCIAL MANAGEMENT 36 Financial Institutions, Investing Clients to Benefit from Secure 2.0 Act Provisions Nicole Hinman, Cambridge Investment Research Inc. 44 Rolling Forecasts: Community Bankers' Key to Agility Barry Adcock, Deluxe Corp. 50 Artificial Intelligence: Benefits & Challenges for Financial Institutions Julia A. Gutierrez, Bankers Alliance 54 Liquidity Risk & the Importance of Bank Contingency Funding Plans Carl D. White, Federal Reserve of St. Louis
6 NOVEMBER / DECEMBER 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. Internal Bank Audit School Dec. 12-13 Receive detailed guidance over current regulatory hot topics such as how to audit the lending function, mortgage banking functions, CECL and more. For event updates, visit: indiana.bank/calendar Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank VANTAGE VIEWPOINT More than 70 Indiana bankers participated in the annual IBA Washington Trip Sept. 25-27, 2023. I’ve said before that there hasn’t been any point in my 20 years of working with bankers when it did not feel like there was a lot going on in the industry, but 2023 has certainly been one for the books even by our standards. Our outstanding Government Relations team successfully protected banks in our state from potentially harmful anti-ESG legislation and other bills that could have negatively impacted our industry, while supporting bills that will benefit all Hoosiers like requiring financial literacy education for high school students to graduate beginning with next fall’s freshman class. I cannot wait to see how our members leverage their expertise and existing programs to help their local school districts meet this new requirement and how the entire state will benefit from more financially literate graduates. The chaos surrounding the bank closures from this spring demonstrated the strength and resilience of Indiana banks. Our members are highly capitalized and diversely invested, and your customers know it. Every bank I spoke with said they received few if any calls from customers concerned about the safety of their money during that period. I am encouraged to see initial calls for changes to the U.S. deposit insurance system wane in recognition of our industry’s strength and stability. We had another marked increase in attendance at Mega Conference this year, with 1,270 bankers taking part in our premier event, up from 1,100 last year and 1,000 the year before. Be sure to mark your calendar and save the date for Mega 2024 from May 6-8 at the Indiana Convention Center in Indianapolis. As our largest educational event of the year, we have 12 tracks of programming so any banker can find the content most directly applicable to what you do – and where you want to grow. The Annual IBA Washington Trip also saw a 7% increase in bank participation this year. Offering direct contact with Indiana’s DC delegation and Biden administration regulators, this was an invaluable example of grassroots advocacy. You can read more about this year’s trip from Dax Denton and Ross Teare on page 32 of this issue. As I write this, we've just wrapped up the Banking on Women Conference. It was another record-breaking year, selling out a month in advance. We'll have a full recap, including profiles on our extraordinary Woman of the Year and Woman on the Rise, in the January/ February issue of Hoosier Banker. One of our values statements at the Association is that we “remain mindful that the success of the IBA is judged by the success of its members.” More than revenue generated, we measure that success by the number of banks that participate and bankers who derive value from the programming and resources we provide. You are the reason why we do what we do – and it’s an honor to continue growing this generation of bankers and preparing the next. HB
Hoosier Banker 7 As my year as chairman of the Association draws to a close, I am reminded of the collaborative nature of the role and how it really does take exceptional coordination, communication and collective effort to fulfill the IBA’s mission statement: The Indiana Bankers Association strives to grow stronger banks and stronger communities. This statement came out of our most recent Strategic Planning session along with our rebranding and fresh logo that we rolled out at the beginning of this year. An appropriate quote sums it up nicely at this juncture: “You can’t do today’s job with yesterday’s methods and be in business tomorrow.” The IBA is in the race for the long haul, and that means evolving as the world around us changes. Just this year at the Statehouse, our government relations team successfully lobbied to codify positive REIT tax treatment, garnered a specific exclusion from an ESG bill and got an exclusion for banks governed by the federal Gramm-Leach-Bliley Act to not be subject to a new state law imposing customer data collection obligations on community banks. While the IBA chairman can certainly influence the direction and priorities of the Association, it is President/CEO Amber Van Til, the IBA’s officers and professional staff who are the consummate professionals speaking the message of community banking loud and clear. They bring their A-game to the office every single day, building a deep and long-standing tradition of trust throughout the state legislature that can’t be overstated. The community banking industry is respected across the state and is unequivocally the engine that drives commerce. Based upon the budget surpluses the state of Indiana generated consistently for over a decade, there is strong evidence that community banking is alive and well in the Hoosier State. A special mention to past president/CEO Joe DeHaven for hiring Amber and many of the key people around her, as well as plugging into the New Markets Tax Credit opportunity early on, establishing a foundation of financial health and stability for the Association. Joe set the table and Amber has carried on the tradition of excellence by optimally and strategically deploying the IBA’s resources. I wish Ben Bochnowski all the best as he takes the reins Jan. 1, 2024. Gary Kleer set the tone for me, and I hope I have demonstrated a sincere commitment to community banking throughout the state of Indiana and on the national front through my association with Friends of Traditional Banking. Being a part of FOTB leadership the past few years has broadened my acquaintances and knowledge across community banking nationwide and I have a renewed admiration for the leadership in our industry. I highly encourage you to engage with the IBA, Independent Community Bankers of America, American Bankers Association, Jamie R. Shinabarger Chairman Indiana Bankers Association CEO and Director Springs Valley Bank & Trust Company, Jasper CHAIRMAN'S REPORT Citizens State Bank • @CSB_Indiana • Sep 5 Our Fishers office is collecting broken, unused and unwanted crayons to be re-purposed for the benefit of those in need. If you know of a business or organization that would like a collection box, let us know! Learn more - hubs.ly/Q0216qqG0 STAR Bank • @STARFinancial • Aug 29 STAR team members recently volunteered for United Way of Allen County’s Day of Caring. For 2 consecutive years, employees have worked at the Veterans National Memorial Shrine & Museum. Find out more information about this hidden gem here: bit.ly/47QlI0w #Volunteer Merchants Bank of Indiana • @MerchantsBankIN Aug 17 Our team in Richmond made a huge impact recently by partnering with @BGCWC! The funds we donated were used to buy school supplies for students to start the school year. Employees packed & distributed 140 backpacks to families in the community at the Back to School Bash event! Centier Bank • @CentierBank • Aug 15 Centier Bank recently made a $1,500 community donation to A Rosie Place for Children, a South Bend-based nonprofit hospital. Read more about our wonderful partnership here: tinyurl.com/4v4kp3fz #CentierGives #commUNITYbanking Crossroads Bank • @CrossroadsBank • Jul 31 Running on Good Vibes! We had a great experience volunteering at the 5K run over the weekend with Manchester Junior Achievement. #CommunityFirst Follow IBA Twitter @indianabankers NOTABLE QUOTES Bank Community Service on Twitter FOTB and any other reputable banking voices. Advocacy is too important to simply leave it to the next banker or make it our lowest daily priority. It’s critical if we want to come out on top in the highly competitive financial services industry where freeloading credit unions are hungry to buy tax-paying banks, Farm Credit wants to lure away blue-chip established farmers with subsidized interest rates, and fintechs want to eat our lunch with sexy mobile apps and splashy offers. I also send along my congratulations to Lucas White, incoming 2024 ICBA Chairman. I have high expectations that he will excel in taking the message of community bank values to Washington, D.C., and represent all of us here in the Hoosier State admirably. I’m dating myself but Bob Hope said it best: “Thanks for the memories.” HB
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 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 Retail Management Series – Part 1: Essentials of Leading a HighPerforming Team Jan. 17 • IBA Center Financial Statement Analysis & Cash Flow Analysis Bootcamp Jan. 17-18 • IBA Center & Virtual Senior Retail Banking Officer Forum Jan. 18 • IBA Center BSA Officer Forum Jan. 23 • IBA Center Legislative Briefing & Reception Jan. 23 • Hyatt Regency Indianapolis Bank Security Officer Forum Jan. 25 • IBA Center Essentials of Banking Series – Part 1: Banking 101 Jan. 25 • Virtual Compliance Officer Forum Jan. 30 • IBA Center Essentials of Commercial Credit Analysis – Part 1: Introduction to Commercial Lending and Financial Accounting Feb. 6 • IBA Center & Virtual BSA Graduate School Feb. 6-7 • Virtual Outside Calling School – Part 1 Feb. 8 • Virtual CFO Forum – Group 1 Feb. 8 • IBA Center CFO Forum – Group 2 Feb. 9 • IBA Center Community Bankers for Compliance Program – Part 1 Feb. 13 • IBA Center & Virtual Senior Lender Forum – Group 1 Feb. 14 • IBA Center Senior Lender Forum – Group 2 Feb. 15 • IBA Center Outside Calling School – Part 2 Feb. 15 • Virtual Essentials of Banking – Part 2: Business Operations & Management Feb. 15 • Virtual Third Party Management Feb. 20 • IBA Center & Virtual IRA Basics & IRA Advanced Feb. 21-22 • IBA Center & Virtual Construction Loan Administration & Monitoring Feb. 22 • IBA Center & Virtual Fundamentals of Commercial Lending Feb. 22 • Virtual Chief Operations Officer Forum Feb. 23 • IBA Center Marketing Director Forum Feb. 27 • IBA Center Information/Cybersecurity/IT/ Operations Officer Forum – Group 1 Feb. 28 • IBA Center Information/Cybersecurity/IT/ Operations Officer Forum – Group 2 Feb. 29 • IBA Center FLD Day at the Statehouse March 5 • Hilton Suites Indianapolis Downtown Retail Management Series – Part 2: Building, Engaging & Developing the Team March 5 • IBA Center 2024 Leadership Development Program – Session 1 March 18-20 • Abe Martin Lodge Brown County State Park FDIC Director College March 21 • IBA Center Mega Conference May 6-8 • Indiana Convention Center Indianapolis NOTE: For the latest information about IBA event dates, locations and format, please visit: indiana.bank/calendar CALENDAR UPDATE
Preserving Benefits while Controlling Costs The fight to balance high-quality health care with tight budgets COVER STORY
As inflation continues to impact bank balance sheets, employer-provided health insurance costs are expected to rise another 7% in 2024 due to chronic health conditions, catastrophic claims and rising costs of prescription drugs, according to a survey published in August by the International Foundation of Employee Benefit Plans. Those increases may be harsher when looking specifically at Indiana. Roughly 90% of the nation’s $4.1 trillion in annual health care expenditures are for people with chronic and mental health conditions, according to the Centers for Disease Control. The 2022 America’s Health Rankings placed Indiana 38th in the nation for the prevalence of multiple chronic conditions, 41st and 43rd for smoking and e-cigarette use, respectively, and 43rd in the nation for access to mental health providers. IBA members may be even more susceptible to steeper cost increases due to their smaller staff sizes. “Indiana is a high-cost health care state and banking has some of the highest percentage of claims,” according to Savannah Lowry, vice president and director of human resources at Home Bank, Martinsville. The fight to provide high-quality health coverage while also keeping one of a company’s largest costs in check is incredibly common. In fact, a 2021 UnitedHealthcare survey found that nearly twothirds of employers were struggling to strike that balance. The key is changing employee behavior, according to Shawn Norris. He serves as senior vice president of NFP, an insurance broker that serves as the primary consultant for the IBA Group Insurance Trust. “You can foster both behavior change and employee engagement through a mix of carrots and sticks, plus communication, education, plan design and consumerism,” he said. “But one of the biggest keys to success is awareness and appreciation of what is offered, from vision and values to compensation philosophy and benefit programs.” The world of employee benefits is increasingly complex every year, so there’s no magic bullet. Norris says you have to analyze your specific utilization data to identify risk management opportunities and develop a multi-faceted strategic approach to manage health care costs. One piece of that cost-control puzzle could be joining a larger pool of participants like the IBA Group Insurance Trust to diversify the company’s risk. The risk-sharing structure protects members from the impact of a single or even multiple high-dollar cost incidents by spreading the risk across a broader group of covered employees. This has historically led to greater stability in the cost of health care coverage and the increases relative to the market. “We continue to see significant increases in the cost of other employer-sponsored health care plans, while the IBA plan has provided stability in managing health care costs year-over-year. It’s a very cost-effective plan for member banks,” said David M. Findlay, CEO of Lake City Bank, Warsaw. Findlay is also IBA’s newly elected second vice chairman and chairman of the IBA Group Insurance Trust. “The IBA plan delivers a broader range of services than many other health insurance plans, which has clearly provided our employees with a strong option that protects them and their families. It’s a big part of our commitment to providing team members with the best possible terms and coverage structures.” The IBA understands we are only as successful as our members, which is what led the board to create the Group Insurance Trust back in 1957. Because it is managed by bankers, the Trust understands bankers and banking, giving it an advantage over independent brokers. The Trust currently represents more than 45 Indiana banks and financial institutions. Home Bank has been one of those since 2020. Evan Hoffmeyer Assistant Vice President - Communications Indiana Bankers Association EHoffmeyer@indiana. bank “Any organization is only as strong as the people who bring it to life.” – Shawn Norris, NFP
12 NOVEMBER / DECEMBER 2023 “NFP is very active in serving the Trust’s member banks and making decisions to benefit them collectively without self-serving motives,” Lowry said. “This allows the Board to make decisions that help smaller organizations like us provide competitive benefits to staff.” Every organization is different, so be thoughtful when deciding which options The IBA Group Insurance Trust is a multiple employer welfare arrangement. The multiple employer welfare arrangement may not be subject to all the insurance laws and regulations of Indiana. State guarantee funds are not available for the IBA Group Insurance Trust. to offer to ensure your benefits are inclusive and meet the needs of an increasingly diverse workforce. Employee surveys are a great tool, as well as employee focus groups. Members of the Trust can rely on a wide range of services from group medical, dental and vision coverage to group term life, AD&D insurance, flexible spending accounts and wellness programs. Learn more about the Trust by contacting Shawn Norris at (812) 422-4000 or Shawn.Norris@NFP.com. HB ANNIVERSARY MILESTONES Saluting 20+ years of banking service FIRST BANK RICHMOND Alan Spears, senior vice president, chief wealth management officer, has completed 20 years of service with the bank. He has 30 years of banking and wealth management experience overall. Spears serves as an emeritus board member for the Cope Environmental Center, on the Community Member Finance Committee of Reid Health and on the Investment Committee of Wayne County Foundation. He earned his bachelor’s and master’s degrees from Indiana University and a juris doctorate from the Indiana University McKinney School of Law. Julie Duke, vice president, senior operations manager, has completed 20 years of service with the bank. She serves as treasurer for Boy Scouts Troop 16. Duke earned her bachelor’s degree from Indiana University. Risk can turn into resilience. It’s your bank’s Compliance evolution! In the financial world, 'risk' isn't a word to fear – it's a call to evolve. Compliance isn't a box to check; it's your bank's compass to navigate opportunities and IT Resource can help get you there! Redefine compliance and align it with your strategy to rewrite the narrative of banking confidence. itrw.net 616.837.6930 Leslie Werking, assistant vice president, retail loan officer, has completed 25 years of service with the bank. She has 27 years of banking experience overall. Werking serves on the Events and Community Involvement committees of the Richmond Association of REALTORS®. She holds an Indiana Bankers Association Management Certification. Cindy Robinson, mortgage loan closer/funder, has completed 45 years of service with the bank. Kim Ramsey, leasing collections administrator, has completed 20 years of service with the bank. Becky McKee, credit administration assistant, has completed 25 years of service with the bank. HB
Strength and Support You Can Count On Discover a trusted partner with corporate benefits expertise to help your organization excel in any environment. For your business. For your people. For your life. NFP.com Shawn M. Norris, RHU, ChHC | shawn.norris@nfp.com | 812.422.4000 415 Crosslake Drive, Suite A, Evansville, IN 47715 Tailoring benefits to match employee needs. Building a strategic approach that fits your future. Finding new ways to save without compromising coverage quality. Our banking specialists are equipped to provide the support and solutions you need. Benefits insurance services provided through Clippinger Financial Group, LLC, a subsidiary ofNFPCorp. (NFP) Property and casualty services provided through NFP Property & Casualty Services, Inc. (License #0F15715). Shawn Norris is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC, Member SIPC. IBA Group Insurance Trust
14 NOVEMBER / DECEMBER 2023 FLD Leadership Conference ARTICLE SPOTLIGHT
Hoosier Banker 15 More than 90 members of IBA’s Future Leadership Division gathered in downtown Indianapolis Sept. 12-13 for networking, professional development and axe-throwing. The annual FLD Leadership Conference is our premier event each year, promoting peer network growth, thought-sharing and new ideas. Brock Goggins of German American Bank, Jasper, kicked off the two-day event welcoming his fellow bankers to the Omni Severin Hotel as part of his role as 2023 president of the FLD Advisory Board. Alyson Von Hooser then led attendees directly into thought-provoking content, using stories from a tough early upbringing to demonstrate the power of connections made throughout her life and the difference that today’s leaders can make when they own the responsibility of making intentional connections with the people they serve. After a networking lunch, attendees participated in the first of three speed roundtables. These popular opportunities move bankers around to different tables so they interact with other attendees they haven’t met yet, and guide them through a variety of discussion topics such as adapting leadership style to match your situation and how to recruit and retain high-quality talent. Coming out of these group discussions, speaker Tisha Gierhart of Shafer Leadership Academy offered an insightful presentation on the effective use of one-onone meetings. These crucial touchpoints can facilitate opportunities for supervisors and team members to review present priorities, discuss expectations, better understand each other and ultimately build trust. Attendees held a second cycle of speed roundtable discussions with new partners before heading to dinner and an entertaining evening at Bad Axe Throwing. After a few hours of practice, I’m happy to report that the Future Leadership Division has several members who can really throw an axe! Ross Teare, IBA’s vice president of government relations, started day two with an overview of the Association’s grassroots advocacy efforts and how bankers can get involved. He then moderated a panel of FLD members including Brock Goggins, Jenilee Bransteter of First Bank of Berne and Kyle Goodwin of DeMotte State Bank. Panelists offered their own insights and experiences about how their advocacy efforts have benefited their career development while also helping their bank and customers. After a third and final speed roundtable session, Mitch Isaacs from Shafer Leadership Academy guided attendees through the nonverbal side of networking and offered clues about how to read subtle nonverbal cues that will provide an advantage in challenging social networking situations. The 2023 FLD Leadership Conference was another successful event for the Future Leadership Division, providing benefit not only to the individuals who participated but also to the banks that allowed them to attend. Thank you to all the banks that committed to engaging their employees in this year’s event. Thank you as well to the sponsors of the conference that made the event a success, including Amundsen Davis LLC, Federal Home Loan Bank of Indianapolis, Independent Community Bankers of America, Graduate School of Banking at the University of Wisconsin, infotex and our presenting sponsor, Krieg DeVault LLP. HB Josh Myers Vice President - Member Engagement Indiana Bankers Association JMyers@indiana.bank
16 NOVEMBER / DECEMBER 2023 FLD CONFERENCE GALLERY Thank You, Sponsors! Amundsen Davis LLC Federal Home Loan Bank of Indianapolis Graduate School of Banking at the University of Wisconsin – Madison Independent Community Bankers of America infotex Krieg DeVault LLP
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18 NOVEMBER / DECEMBER 2023 Debra A. Mastrian Partner Amundsen Davis LLC DMastrian@ AmundsenDavisLaw. com Amundsen Davis LLC is a Diamond Associate Member of the Indiana Bankers Association. HUMAN RESOURCES Employers have an affirmative legal obligation under federal and state employment discrimination laws – including Title VII of the Civil Rights Act of 1964 – to prevent sexual harassment (and all forms of unlawful harassment) in their workplaces, and to promptly investigate any incident of sexual (or any other form of unlawful harassment) in their workplaces and correct the matter. This includes harassment by non-employees with whom the employee interacts in the course of employment. Whether it is a customer, vendor, contractor or other non-employee with whom their employees interact, federal and state law require employers to take prompt corrective action, otherwise they face liability. In September, the U.S. Equal Employment Opportunity Commission issued its long-awaited proposed “Enforcement Guidance on Harassment in the Workplace,” which was available for comment through November 1. Among other things, the EEOC emphasized that an employer is liable for a hostile work environment created by non-employees if the employer either unreasonably failed to prevent the harassment or failed to take reasonable corrective action in response to the harassment about which the employer knew or should have known. Earlier this year, the EEOC settled a claim with a grocery store over allegations that the store allowed a customer to sexually harass female employees. The female employees alleged that a male customer made sexual comments and groped them for years without the employer taking any action. One of the employees eventually notified local law enforcement. The customer was issued a no trespass notice in that matter, which the store manager signed, but then the store continued to allow the customer to enter. The employer entered into a $50,000 consent decree. Employee Harassment by Customers An important reminder to take prompt corrective action A few years prior, the EEOC took a matter to trial against a large warehouse merchandise company in which a former employee alleged that the company failed to appropriately address her complaints that a male customer was stalking her. The female employee worked in a position that required regular interface with the general public. She claimed that the customer repeatedly sexually harassed her over the course of a year by leering at her, requesting dates, asking intrusive personal questions (e.g., “Do you have a boyfriend?”) and trying to hug her. The employee complained to the manager. The manager spoke with the customer and told the customer to avoid or limit contact with the employee. The employee claimed that the behavior continued and that she complained to management again, but that the managers simply told her that they were keeping an eye on the customer. The employee eventually sought an order of protection after suspecting that the customer was filming her on his cell phone. The company finally banned the customer from the store but by that point the employee had taken leave due to anxiety over the situation. The hostile work environment claim went to trial and the jury awarded the employee $250,000 in compensatory damages. The employee’s attorneys successfully argued that the company failed to take adequate corrective measures such as promptly banning the customer from the store or telling the customer to shop at a different location. In 2019, a bank in Oregon was denied summary judgment on sex discrimination and retaliation claims by a former employee who claimed that the bank did not take adequate corrective action against a customer who stalked and harassed her. The harassment began with notes from the customer about the employee’s good looks and asking her to go on a date. Her manager
Hoosier Banker 19 A FULL SERVICE LAW FIRM WITH A SIMPLE PROMISE, PUT YOU FIRST. INDIANA | ILLINOIS | MISSOURI | OHIO | WISCONSIN WWW.AMUNDSENDAVISLAW.COM 201 North Illinois Street, Suite 1400 Capital Center, South Tower Indianapolis, Indiana 46204 }ɘʇȠȞȤɉȡȣȡɉȡȞȝȝʇɓʇ4ɘʇȠȞȤɉȡȣȡɉȡȞȝȞ was aware of the conduct. The employee told the customer she did not want to go out with him but he continued to send her notes that she found disturbing. She showed the notes to her manager. Nothing was done. The customer then began coming into the branch asking for the employee and telling others how he was going to get a date with the employee. Co-workers thought the customer's conduct was “creepy” and a corporate trainer told her to call the police but management did not take any action. The customer then sent her flowers and a card that was inappropriate. The employee showed the card to her managers, who told her they thought the situation seemed like it was getting dangerous. The employee told her manager that she did not want the customer to be allowed in the branch. The manager told the employee to call the customer and let him know about her concerns. The conduct continued, including at charity events and in the branch. At one point, the manager suggested that the employee should just “hide in the break room.” Eventually, the employee became fraught with anxiety and asked that the customer’s account be closed and to be transferred to another branch. At that point, the bank finally took action and ultimately closed the account and told the customer not to return. The employee resigned and sued the bank for hostile work environment sex discrimination under Title VII and state law. The district court granted summary judgment for the employer, but the federal court of appeals reversed that decision. The court noted that an employer may be held liable for sexual harassment by a non-employee (customer) where the “employer either ratifies or acquiesces in the harassment by not taking immediate and/or corrective actions when it knew or should have known of the conduct.” The court explained that an employer must take corrective measures that are “reasonably calculated to end the harassment.” The reasonableness of the employer’s actions depends on how promptly the employer acts and how much control the employer has over the alleged harasser. What actions can or should a business take when a customer (or other nonemployee) harasses an employee? Each situation is different and of course it depends on the nature of the conduct (e.g., inappropriate verbal comments, groping, assault) and the degree of control the business has over the third party, but the most important thing is that the employer take action upon learning of the conduct. When the harasser is a customer and the issue is not severe, the matter might be resolved by having a conversation with the customer and having other employees service the customer so that the affected employee does not have to interact with that customer. Other situations may call for removing the customer from the premises or banning the customer from the employer’s physical premises and further contact with its employees. If the alleged harasser is an employee of a customer, the matter might be turned
20 NOVEMBER / DECEMBER 2023 over to that person’s employer for them to address and the person may be instructed or asked not to return or have contact with the complaining employee. Other situations (e.g., threats of physical violence or actual violence) call for different measures, such as calling for security or local law enforcement, or even seeking a restraining order.* Employees may be hesitant to report third-party harassment, especially if they have not been employed for very long or the alleged harasser is a longtime or large customer. Employers, particularly those in public-interfacing industries, should make their employees aware that any such complaints should be reported, just like instances where the alleged harasser is a supervisor or co-worker. Employers should make sure that their harassment policies include third-party harassment. Of course the type of corrective action will depend on the level of control the employer has over the non-employee, but the employer must investigate and take The information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues. * In Indiana, an employer can seek a Workplace Violence Restraining Order (WVRO) to protect an employee from unlawful violence or credible threats of violence. Ind. Code 34-26-6. There are two kinds of WVROs – a temporary one (TRO), which is issued without a hearing and is effective for up to 15 days – and a permanent one, which is issued after a hearing and is effective for up to 3 years. prompt, appropriate action to remedy the situation, if possible. Employers should also have a policy of no retaliation and remind employees that they will not be retaliated against for reporting third-party harassment. Employers must address any complaint of workplace harassment, regardless of whether the alleged harasser is a supervisor, coworker, customer, client or vendor. HB STAR Bank, Fort Wayne, has named two new members to its board. Jim Kelley is CEO of Kelley Automotive after serving as vice president from 2004-2013. The family-owned and -operated automotive group has been a Fort Wayne-area staple for more than 70 years. He earned his bachelor’s degree from Indiana University and a master’s degree from London Guildhall University, now London Metropolitan University. Doug Boles has been president of the Indianapolis Motor Speedway Corporation since 2013 after serving as the organization’s COO. He was previously vice president of communications for the Indianapolis Motor Speedway and its parent organization, Hulman & Company. Boles earned his bachelor’s degree from Butler University and a juris doctorate from the Indiana University School of Law at Indianapolis. He serves on the boards of INDYCAR Ministry, 500 Festival, United States Auto Club and Motorsports Hall of Fame. HB FROM THE BOARD ROOM A communications toolkit created by the Indiana Bankers Association helps member banks share good-news stories with media outlets. View the toolkit at: indiana.bank/communications-toolkit. HB Toolkit Helps ‘Tell the Story’ of Banking Tell the Story
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22 NOVEMBER / DECEMBER 2023 HB Digital: Click to access ABA’s ACRE Toolkit. FEATURE Robert S. Nichols President and CEO American Bankers Association RNichols@ABA.com Advocating for ACRE How Congress can help rural America Farmers and ranchers today face numerous challenges from the skyrocketing costs of materials to supply chain disruptions and difficulties purchasing rural land, all while interest rates are rising. As a result, many are relying more on credit than ever before. For those who are young, beginning, or socially disadvantaged farmers, these obstacles can seem insurmountable. In fact, 69% of young farmers say access to capital is a top challenge to beginning a career in farming. Fortunately, there is a simple solution that can help make credit more accessible to these agricultural borrowers: the bipartisan ACRE Act, a bill that ABA is aggressively championing in Congress. Formerly known as ECORA, this bill would amend the IRS code to level the playing field for banks – especially community banks – by allowing lenders to exclude from gross income any interest they receive on loans that are secured by farm real estate or aquaculture facilities. The bill also allows for the exclusion of interest on certain home mortgage loans in rural communities. Removing the taxation of interest will bring down the cost of making these loans, making them more affordable for farmers, ranchers and rural homeowners. In fact, ABA estimates this important legislation could expand access to affordable agricultural and home loans to more than 4,000 rural communities across the U.S. and deliver approximately $1.4 billion in annual interest expense savings to farmers and ranchers in 2023 – savings that can make a crucial difference to the nation’s producers. This simple, commonsense solution does not require the creation of new government payments or programs. Quite the opposite. It provides an avenue for increasing competition and generating growth in rural communities efficiently and organically. It also levels the playing field between all agricultural lenders, which will result in more choices and lower rates for rural borrowers. ABA has been a vocal proponent of this bill, and we were pleased to see such a significant response from lawmakers in this Congress. The ACRE Act already has 20 bipartisan cosponsors in the House and has been introduced in the Senate by Sens. Jerry Moran, R-Kan., and Angus King, I-Maine. Lawmakers now have an opportunity to help sustain and grow rural America by sending this bill to President Biden’s desk. That’s why ABA is urging bankers and their customers to get in touch with their members of Congress and urge them to pass the bill. Bankers can contact their lawmakers easily through ABA’s grassroots platform, SecureAmericanOpportunity. com. The association has also prepared a toolkit, accessible at ABA.com/ACREtoolkit, that provides an issue backgrounder, talking points and key points that bankers can use when explaining to lawmakers why this law is needed. Our nation needs a thriving agricultural sector. With your help, we can help remove one of the roadblocks standing in the way of the nation’s farmers and ranchers. HB
Hoosier Banker 23 North Salem State Bank donated $10,000 to Sycamore Services in September to support the mission of its Applied Behavioral Analysis Center. Sycamore Services has provided necessary and caring services to those with developmental disabilities and other life challenges since 1961. Their ABA Center emphasizes therapy that uses each child’s interests and builds upon their strengths to help them acquire skills that will give them more options and choices in their life. The donation was the fifth of ten $10,000 charitable contributions the bank has committed to give the communities they serve and support in celebration of the bank’s 100th anniversary. United Fidelity Bank, Evansville, hosted a meet-and-greet for Carmel residents with City Councilman Jeff Worrell at its Carmel City Center branch on Rangeline Road. During a free continental breakfast, local businesses and residents heard about upcoming local events and construction projects in the area then got to ask questions about the future of the city and how it would impact their business or profession. HB BANKING ON COMMUNITY Centier Bank, Merrillville, donated $1,500 to A Rosie Place for Children, a South Bend-based nonprofit hospital. Children from all 92 Indiana counties who are medically fragile can go to A Rosie Place for respite stays. The donation was a sponsorship for the hospital’s “Putt for a Pour” contest, part of the 19th Annual Rosie Golf Course Classic in July. A hospital representative said the annual event helped them achieve a record-breaking year with funds going directly to support the hospital’s mission. Premier Bank, Defiance, OH, donated $2,500 to Concordia Lutheran High School in Fort Wayne to sponsor the school’s largest fundraiser, the 2023 Cadets in Cadence Dinner Auction. The auction is scheduled for Dec. 2 in the school gym. (back frow, from left) Lori Lancour, director of strategic initiatives advancement at Rosie Place; Len Amat, market president at Centier Bank; Tieal Bishop, CEO of A Rosie Place for Children; Kevin Fautz, branch manager at Centier Bank; and Mishelle Graber, assistant branch manager at Centier Bank (from left) Heath Allen, North Salem State Bank (NSSB) chief credit officer; Patrick Cockrum, executive director at Sycamore Services; Matt Howrey NSSB president & CEO; and Ashley Ahrens, NSSB retail operations manager (back row, from left) Greg Allen, EVP, Ft. Wayne market president, Premier Bank; Matt Konow, chief advancement officer, Concordia Lutheran High School; Jacob Pennekamp, head of school, Concordia Lutheran High School Carmel City Councilman Jeff Worrell answered questions about upcoming development and how they will impact local businesses during a free event at United Fidelity Bank’s Carmel City Center branch. DEPARTMENT
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