JULY/AUGUST 2024 THE OFFICIAL PUBLICATION OF THE INDIANA BANKERS ASSOCIATION Diversity, Equity & Inclusion The Journey and Your Business
www.GoBaker.com | 800.937.2257 Oklahoma City, OK | Austin, TX | Long Island, NY | Salt Lake City, UT | Springfield, IL | Member: FINRA and SIPC For 45 years, The Baker Group has been customer focused and industry responsive, providing honest and insightful guidance to our partners through strategic balance sheet and investment solutions. FEATURED SPEAKER David Rosenberg – President/Chief Economist & Strategist Rosenberg Research & Associates Inc. CELEBRATION SEMINAR Anniversary In honor of The Baker Group’s 45th anniversary, we invite you to our celebration seminar in Scottsdale, AZ. We are looking forward to celebrating this tremendous accomplishment with our clients and friends. Interest Rate Risk and Investment Strategies Seminar November 7-8, 2024 ACCOMMODATIONS A block of rooms is available at JW Marriott Camelback Inn Scottsdale. The special room rate will be available until October 14, 2024 or until the room block is sold out. Hotel price: $329 + $20 resort fee. There is no cost for this seminar. For more information and to register, visit GoBaker.com/arizona/. Call Skoshi Heron at 888.990.0010 for questions. Scottsdale, AZ JW Marriott Camelback Inn Scottsdale 5402 East Lincoln Drive, Scottsdale, AZ 85253 AGENDA Wednesday, November 6 Welcome Cocktail Reception Thursday, November 7 Breakfast, Economist–David Rosenberg, Seminar, Lunch, Seminar, Adjourn, 45th Anniversary Celebration Cocktails and Dinner Friday, November 8 Breakfast, Seminar, Conclusion, Golf Included at the Padre Golf Course WHO SHOULD ATTEND Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. 10 hours of Economics and Finance CPE credits will be earned for your attendance. The Baker Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
DIRECTORS, STAFF AND CREDITS IBA BOARD OF DIRECTORS OFFICERS Benjamin J. Bochnowski, Chairman Peoples Bank, Munster Matthew W. Howrey, First Vice Chairman North Salem State Bank David M. Findlay, Second Vice Chairman Lake City Bank, Warsaw Jamie R. Shinabarger, Immediate Past Chairman Springs Valley Bank & Trust Company, Jasper Amber R. Van Til, President and CEO Indiana Bankers Association CONSTITUENT DIRECTORS Garry D. Kleer, ABA Membership Council First Bank Richmond Kent A. Liechty, ICBA State Director First Bank of Berne Michael J. Clampitt, IBA Future Leadership Division President North Salem State Bank Karen B. Woods, Non-Indiana Headquartered Banks First Financial Bank, Cincinnati REGIONAL AND AT-LARGE DIRECTORS Mark “Doc” Holt, At-Large First Farmers Bank & Trust Co., Converse Nicole S. Lorch, At-Large First Internet Bank, Fishers 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 Eric J. Lane, South Region First Federal Savings Bank of Washington IBA FUTURE LEADERSHIP DIVISION ADVISORY BOARD Michael J. Clampitt, President . . . . . . . . . . . . . . . . . NorthSalemStateBank Amanda Morris-Feldman, Vice President . . . . . . First Federal Savings Bank, Rochester Ryan Anderson . . . . . . . . . . . . . . . . The Fountain Trust Company, Covington Greg Barnes Jr. .. .. .. .. .. .. .. .. .. .. .. ..STARBank,FortWayne Jenilee Bransteter .. .. .. .. .. .. .. .. .. .. .. .. .FirstBankofBerne Jordan Briggeman Springs Valley Bank & Trust Company, Jasper Brandi Dunn . . . . . . . . . . . . . . . . . . . . . . .TheFarmersBank,Frankfort Larissa Fox Old National Bank, Evansville Brock C. Goggins German American Bank, Jasper Kyle Goodwin .. .. .. .. .. .. .. .. .. .. .. .. ..DeMotteStateBank Christopher Griffith . . . . . . . . . . . . . . . . . . . FirstHarrisonBank,Corydon Zach Hockersmith Hoosier Heartland State Bank, Crawfordsville Casey Johnson .. .. .. .. .. .. .. .. .. .. .. . HomeBank,Martinsville Jonathon Malin . . . . . . . . . . . . . . . Community First Bank of Indiana, Kokomo Laura Shake . . . . . . . . . . . . . . . . . . . . TheNationalBankofIndianapolis 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 Evan Hoffmeyer Vice President – Communications Josh Myers Vice President – Member Engagement Laurie A. Rees Vice President – Education & Training Ross Teare Vice President – Government Relations Emily Brooks Digital Media Manager Maria L. Dowers Executive & Government Relations Coordinator Susan Clark Events & Products/Services Assistant Elizabeth DeHaven Education Manager AyZha Hazelwood Education Meeting Coordinator Timothy Fry Staff Accountant Tracy Kubly Technology Manager Silvia Regalado Administrative Assistant OUR INSPIRATION The Indiana Bankers Association strives to grow stronger banks and stronger communities. OUR VALUES In fulfilling our mission, we will: • maintain the highest ethics, integrity and respect for others; • provide service with professionalism, innovation and resourcefulness; • instill passion, a positive attitude and enthusiasm; and • remain mindful that the success of the IBA is judged by the success of its members. indiana.bank Vol. 108 No. 4 INDIANA BANKERS ASSOCIATION 8425 Woodfield Crossing Blvd., Suite 155E Indianapolis, IN 46240-7321 PUBLISHER Amber R. Van Til EDITOR Evan Hoffmeyer ADVERTISING Rod Lasley DESIGN The newsLINK Group 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 JULY/AUGUST 2024 3
10 14 Inclusive Language is an Asset By Marc Hardy, Merchants Bank of Indiana 52 Leading Amid Change By Rebeca Romero Rainey, Independent Community Bankers of America 50 Courts Pump the Brakes on CRA Overhaul By Robert S. Nichols, American Bankers Association Diversity, Equity & Inclusion The Journey and Your Business 4 HOOSIERBANKER IN THIS ISSUE
Features 6 Vantage Viewpoint By Amber R. Van Til, Indiana Bankers Association 7 Chairman’s Report By Benjamin J. Bochnowski, Indiana Bankers Association 9 2024 IBA Education Calendar COVER STORY 10 Diversity, Equity & Inclusion: The Journey and Your Business By Corliss Garner, Old National Bank 18 Change, Engage, Evolve: 2024 Mega Conference Recap 22 2023 C2C Award Nominees 48 2025 IBA Officer Candidates 50 Courts Pump the Brakes on CRA Overhaul By Robert S. Nichols, American Bankers Association 52 Leading Amid Change By Rebeca Romero Rainey, Independent Community Bankers of America 70 Graduate School of Banking – Wisconsin Announces New President/CEO Articles DIVERSITY, EQUITY & INCLUSION 12 Unlocking the Potential of ERGs Essential Best Practices By Steph Madison, First Merchants Bank 14 Inclusive Language is an Asset The Importance of Language Inside and Outside of Banking Institutions By Marc Hardy, Merchants Bank of Indiana 16 Providing a Path IBA-Member Bank Using ITIN Mortgage Loans To Reach Its Local International Population By Josh Flynn, Pharos-Tribune BANKER PROFILE 30 Derrick Davis Assistant Vice President, CRE Draw Disbursement and Administration Officer – First Internet Bank, Fishers GR SUMMIT 44 Interchange Fees Essential for a Thriving Banking Ecosystem By Dax Denton & Ross Teare, Indiana Bankers Association OPERATIONS & TECHNOLOGY 46 Celebrating the Future of Banking By David Becker, Chairman and CEO, First Internet Bank, Fishers HUMAN RESOURCES 54 EEOC’s Updated Guidance on Workplace Harassment Pregnancy, Bathrooms, Misgendering and More By Debra A. Mastrian, Amundsen Davis LLC 67 Post-Severance Compensation vs. Severance Pay By Kristoffer Aas, EdM, Ascensus DIRECTORS & SENIOR MANAGEMENT 57 Rising BAB Redemptions By Dana Sparkman, The Baker Group COMPLIANCE CONNECTION 59 Deposit Account Agreements By Brett J. Ashton, Krieg Devault LLP PRODUCT & SERVICES PROFILE 64 Keep Those Business Deposits Tied to Your Bank By Rod Lasley, Indiana Bankers Association Departments 6 Don’t Miss Out 13 Taking It Easy 13 IBA ‘High Five’ Awards 32 Bankers on the Move 42 Banking on Community 51 From the Board Room 61 Honorable Mentions 63 Banking Center News 68 Associate Members’ Corner 70 Advertiser Index 44 64 JULY/AUGUST 2024 5 INTERACT WITH IBA
O Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank Vantage VIEWPOINT BY AMBER R. VAN TIL, INDIANA BANKERS ASSOCIATION 1 Annual Convention Sept. 8-10 Indiana bank leaders convene, connect and conduct IBA business in scenic French Lick. 2 IBA Annual Washington Trip Sept. 23-25 Join the chorus and make your voice heard on industry issues at the Capitol. 3 Banking on Women Nov. 6-7 Women in banking gather to unlock potential and own the future. Kirby Davidson (left), president and CEO of the Graduate School of Banking at Wisconsin, and Kirby Drey (right), president and CEO of Kentland Bank, present GSB scholarships to three employees of IBA-member banks – Mark Walker of Citizens State Bank, New Castle; Jennifer Doffin of Centier Bank, Merrillville; and Dan Hendrickson of Peoples Trust & Savings Bank, Boonville – during the keynote luncheon on Tuesday, May 7, 2024, at IBA’s Mega Conference at the Indiana Convention Center in Indianapolis. Our mission at the Association is to grow stronger banks and stronger communities. One of the ways we do that is by providing resources to help our members and your employees institute best practices for areas like internal human resources or external communications and public relations. With this issue of Hoosier Banker, we are excited to roll out a new resource for an area where many of our members are unsure of how (or if) to start – Diversity, Equity and Inclusion. This is a space that is fraught for many as it has been politicized, so it was part of our Board’s current three-year strategic plan to create a resource to help members weed through the talking points and find what it might look like in your individual institutions. The business case cannot be denied: Companies in the top quartile for gender diversity on executive teams are 39% more likely to have above-average profitability than companies in the bottom quartile¹; 62% of Gen Z job searchers said they were more likely to apply to a company with a stated commitment to pay equity, helping you establish the next generation of your workforce²; and employees who trust that they and their colleagues will be treated fairly regardless of race, gender, sexual orientation and age are 5.4 times more likely to stay with that company for a longer period of time³, lowering your turnover costs. Our new Diversity, Equity and Inclusion Roadmap was designed by a committee of your fellow Indiana bankers to answer questions you may have and then, regardless of how much work you have done in this space before, help you find your on-ramp to get to where your board and executive staff decide you should go. The recommendations are based on best practices committee members learned while implementing these programs at their own institutions. Some of those committee members wrote articles in this issue, starting on page 10, with more insight into their experiences. You can download the Roadmap using the QR code on pages 7 and 11. As with all our resources, no program that is suggested in the Roadmap is required for our members to implement; we offer them for your consideration to use to whatever extent makes the most sense in your context and for your organization. 1 McKinsey, 2023 - https://mck.co/3VGIh2j 2 Handshake, 2021 - https://bit.ly/3RHKg5E 3 Great Place to Work, 2023 - https://bit.ly/4ckZYM7 DON’T MISS OUT 6 HOOSIERBANKER
PPrimary season is already over both in Indiana and at the IBA. We held our first-ever internal “primary” process for candidates who want to run for the board of the Federal Home Loan Bank of Indianapolis this year. When two Michigan seats were open on the Board last year, credit unions won both because they rallied behind their only two nominees while the bank vote was split among five candidates. This year as two Indiana seats come open for election, the IBA worked to coordinate candidates so the banking industry in our state could rally behind just two candidates and avoid the same credit union sweep Michigan saw last year. While this was an IBA Board initiative, we left it for the membership to decide who they wanted to support. We accepted nominations for four weeks in April. Our intention was to then put all the nominees onto a ballot together and allow every FHLBI-member institution chartered in Indiana to cast two votes, one each for their two preferred candidates. The top two vote-getters would then receive the IBA’s endorsement in the final FHLBI election. At the end of the nomination period, we had only received two nominations, so they will automatically receive the Association’s endorsement. Please join me in congratulating and rallying behind Jamie Shinabarger, CEO and director of Springs Valley Bank & Trust Company, Jasper, and Dan L. Moore, executive chairman at Home Bank SB, Martinsville. The IBA Board and staff are always looking for new ways to support our members. When we undertook our current strategic plan, one element we discussed was the difference in experience and understanding with Diversity, Equity & Inclusion. The Board tasked the staff with creating a new resource that would help both those members who aren’t sure where to start and those who are looking for ideas on how to take existing programs to the next level. The result is a new Diversity, Equity & Inclusion Roadmap that we are excited to roll out with this issue. You’ll find several articles written by and about fellow Hoosier bankers regarding Diversity, Equity & Inclusion topics and how they have benefitted Indiana financial institutions of all sizes. Nothing about this Roadmap is prescriptive or in any way mandatory – it is simply a resource to use however your bank’s leadership deems best for your situation. Our thanks to the nine IBA-member banks that sent employees to take part in the committee that put this resource together! If you have questions about either of these new Board initiatives, feel free to reach out to me or any of the other IBA Board members, and we will be happy to address them. Chairman’s REPORT BY BENJAMIN J. BOCHNOWSKI, INDIANA BANKERS ASSOCIATION Benjamin J. Bochnowski Chairman Indiana Bankers Association CEO Peoples Bank, Munster Ben is the CEO of Peoples Bank and serves as the CEO and president of its holding company, Finward Bancorp. Additionally, he serves on the board of directors of the Indiana Department of Financial Institutions, a position he was appointed to by Gov. Eric Holcomb in 2019. Shinabarger Moore JULY/AUGUST 2024 7
The Indiana Bankers Association is honoring three members of the Indiana banking community with the 2024 IBA Leaders in Banking Excellence awards, to be presented at a special ceremony in August. This award celebrates exceptional Indiana banking leaders who have positively impacted banks and the communities they serve. Details about the awards ceremony are forthcoming in a future edition of Hoosier Banker. At the awards event, Indiana dignitaries from private and public sectors will be making presentations, and honorees will have the opportunity to offer comments. The event will culminate with the viewing of the updated IBA Leaders in Banking Excellence Wall, with individual plaques showcasing each honoree. The wall plaques are to remain on permanent display at the IBA, and each honoree will be given a separate plaque as a keepsake. The 2024 Leaders in Banking Excellence represent a range of leaders in banking. All were nominated by IBA-member organizations and approved by the IBA Board of Directors. For more information about the awards, please contact Rod Lasley at 317-387-9380 or RLasley@indiana.bank. IBA Honors 2024 Class of Leaders in Banking Excellence Congratulations to the 2024 Class of IBA Leaders in Banking Excellence! Michael L. Kubacki Lake City Bank Warsaw Annette M. Russell Security Federal Savings Bank Logansport Stephen E. Zahn First Federal Savings Bank Huntington
2024 IBA EDUCATION CALENDAR EDUCATION CALENDAR Se tember Security Officer Forum Sept. 5: IBA Center Annual Convention Sept. 8-10: French Lick Resort Retail Management Continuing Education Seminar Sept. 11: IBA Center Advanced Ag Banking Conference Sept. 11-12: Doubletree by Hilton, Lafayette Senior Retail Banking Officer Forum Sept. 12: IBA Center Mortgage Lending School Sept. 16-18: IBA Center Call Report Preparation Sept. 18-19: IBA Center IBA Annual Washington Trip Sept. 23-25: IBA Center BSA/AML Compliance School Sept. 24-25: IBA Center Train the Trainer Sept. 25-26: IBA Center October Diversity, Equity & Inclusion Conference Oct. 1: Ritz Charles, Carmel CRA Modernization: What’s the Big Deal? Oct. 2: IBA Center & Virtual 1071: Understanding and Implementing the New Reg B Small Business Loan Data Collection & Reporting Rules Oct. 3: IBA Center & Virtual Advanced Credit Analysis School Oct. 7-8: IBA Center Compliance Officer Forum Oct. 9: IBA Center Senior Lender Forum – Group 1 Oct. 9: IBA Center Senior Lender Forum – Group 2 Oct. 10: IBA Center New Account Documentation and Compliance Oct. 10: IBA Center & Virtual Outside Calling School – Part 1 Oct. 10: Virtual BSA Officer Forum – Group 1 Oct. 11: IBA Center IRA School Oct. 15-16: IBA Center BSA Officer Forum – Group 2 Oct. 17: IBA Center Marketing Directors Forum Oct. 22: IBA Center Compliance School – Deposit Compliance Oct. 22-23: Virtual Information/Cybersecurity/IT/ Operations Officer Forum – Group 1 Oct. 23: IBA Center Information/Cybersecurity/IT/ Operations Officer Forum – Group 2 Oct. 24: IBA Center Outside Calling School – Part 2 Oct. 24: Virtual Compliance School – Lending Compliance Oct. 24-25: Virtual Chief Operations Officer Forum Oct. 25: IBA Center Compliance School – Regulation Z Oct. 31-Nov. 1: Virtual November Banking on Women Conference Nov. 6-7: Embassy Suites, Noblesville Community Bankers for Compliance – Session 4 Nov. 12: IBA Center & Virtual See all education opportunities at indiana.bank/calendar. JULY/AUGUST 2024 9
Diversity, Equity & Inclusion: The Journey and Your Business COVER STORY BY CORLISS GARNER, OLD NATIONAL BANK Like many companies throughout the U.S., Old National Bank recognizes that maintaining a firm commitment to Diversity, Equity & Inclusion is a powerful differentiator and a key to our continued success. Strong Diversity, Equity & Inclusion programs and policies help organizations like ours attract, develop and retain top talent by building a culture of inclusion where differences are not just welcomed, but also celebrated. They also help contribute to the sustainability of a more just and equitable society through strategic philanthropy, volunteerism, partnerships, lending and investments. Additionally, they foster social responsibility and help ensure that companies remain focused on sound, sustainable business practices. I’m pleased to share that the majority of U.S. adults recognize and value the positive effects of Diversity, Equity and Inclusion on the workplace. In a recent survey by Ipsos, 71% of respondents said they want Diversity, Equity & Inclusion resources within their organization and believe Diversity, Equity & Inclusion training is important to “creating a positive workplace culture.” It is also important to note that Diversity, Equity & Inclusion is a journey, not a destination. Rather than being viewed as an “add-on” to other efforts within an organization, it works best as an integrated, highly collaborative approach that reaches into every corner of how you do business. With this in mind, I want to share a Diversity, Equity & Inclusion Roadmap that I believe can help your company develop an approach that is meaningful for your business, no matter where you are along the journey. The Journey What began as the implementation of the 1960s civil rights legislation into workplace policies focusing mostly on race and gender, has evolved into what we now know as Diversity, Equity & Inclusion programs. With the passage of the Americans with Disabilities Act in 1990, top businesses began to focus less on compliance with laws and more on creating an inclusive culture where all aspects of diversity are treated fairly and where all employees feel as if they belong. Today, Diversity, Equity & Inclusion has become more important to a financial institution’s critical stakeholders – from shareholders, clients and community members to the team members who serve them. Banks can no longer afford to put off investing in their culture, workplace diversity and talent pool. The evolution, and subsequent importance, of Diversity, Equity & Inclusion has made it the driver for better business results for financial institutions. Do your employees, from executive leadership to entry level roles, reflect the diversity and lived experience of your client base? Do they understand the unique cultural richness of the communities you serve? If not, your company may not be maximizing the return on investment in its most important asset: your employees. If your frontline decision-making teams reflect a diverse and inclusive culture, then you are likely among the 75% of companies that exceed their financial targets (Gartner, 2022). Adding to this success, gender-diverse and inclusive teams outperformed less-inclusive teams by 50% on average (Gartner, 2022). 10 HOOSIERBANKER
in untapped markets. As a community engagement leader, I was able to build meaningful relationships and uncover new client opportunities by understanding needs through a broad, intersectional cultural lens, developing solutions that meet people where they are while building the company brand and influence in the community. Just these couple of examples demonstrate how my dimensions of diversity and cultural competency have served me well in driving business results. This is the power of Diversity, Equity & Inclusion for businesses! Now, take a moment to imagine how your company can leverage Diversity, Equity & Inclusion to accelerate your business goals. Focus on the work, not the destination, and you will enjoy success! Additionally, diverse teams are more tapped into different experiences, which gives your organization more options and greater flexibility. They are more effective at identifying new opportunities and tend to be more innovative, resourceful and better at ideation and driving growth. Moving Forward with Diversity, Equity & Inclusion At Old National, our heightened Diversity, Equity & Inclusion efforts over the last two years have helped define our culture and drive our positive results. We continue to believe our approach to Diversity, Equity & Inclusion is a competitive advantage and a differentiator to our business success. As a leader of this work, I firmly believe that focusing on Diversity, Equity & Inclusion never comes at the expense of success. Rather, a strategically implemented Diversity, Equity & Inclusion approach in your business will propel you to greater heights by providing you access to new partnerships, relationships and new clients. My 20+ year career in financial services in roles in wealth management, commercial lending as well as community engagement and corporate philanthropy uniquely shapes my perspective on the power of Diversity, Equity & Inclusion in business. In my previous client-facing roles, my lived experience coupled with deep industry expertise opened new business opportunities DIGITAL EXTRA Whether you have never done any Diversity, Equity & Inclusion work or you’ve had dedicated staff for years, the IBA has created a new Diversity, Equity & Inclusion Roadmap that will help you find your on-ramp and get you where you want to be. From answering questions about how these programs can improve your bottom line, to concrete ideas on how to get started and deeper dives that can take your programming and services to the next level, there are ideas for banks of every size. Thank you to the bankers from nine IBA-member banks who formed the IBA Diversity, Equity & Inclusion Committee to create this resource. Corliss Garner Chief Diversity, Equity & Inclusion Officer Old National Bank, Evansville Corliss.Garner@OldNational.com Corliss has been with Old National since 2022 and is a member of the IBA Diversity, Equity & Inclusion Committee. She was named to then-Chicago Mayor-elect Brandon Johnson’s Transition Committee serving on the Human Rights, Equity, & Inclusion Subcommittee in 2023 and was listed as one of Chicago’s 2023 Business Leaders of Color by Chicago United. 11 JULY/AUGUST 2024
A Unlocking the POTENTIAL OF ERGs ESSENTIAL BEST PRACTICES BY STEPH MADISON, FIRST MERCHANTS BANK As financial institutions consider ways to engage their teams, create a strong sense of belonging and bolster culture, employee resource groups continue to be an attractive option. ERGs, also known as affinity groups or business resource groups, are internal communities within your workplace that are voluntary, employee-led and serve as a resource for their members. ERGs enhance career development, foster inclusion, increase the engagement levels of your teams and more. First Merchants Bank, home to 2,200 team members throughout a four-state footprint, is home to six ERGs: Emerging Professionals, First Women Connections, Interfaith, People of Color, Pride and Veterans. We bring in regular speakers, create networking opportunities, participate in internal panels and provide insight to top leaders. Most importantly, we provide a safe space for people to support each other in a way that encourages authenticity. I receive feedback on a regular basis from our group participants that they appreciate the safe space to be themselves. Interested in starting your own ERG? I’ve put together a few best practices that have helped guide us in our journey. Embrace Inclusion with Open ERGs. Employee Resource Groups are intended for everyone! They should be open to members, allies and anyone curious to learn more. ERGs foster understanding and belonging for all employees. This includes those from diverse backgrounds and those from majority groups who want to be better allies to their colleagues. Consider which group(s) would make the most sense for your bank, and engage in a continuous effort of listening for feedback. We recently added an InterFaith group and are looking to add a Wellness group later this year. The final goal of any ERG program is for every employee to receive the message that “There’s a place here for you!” Support From the Top. One of the keys to our ERG success is having support from our top leaders. Each of our groups has an executive sponsor, who is a member of our executive management team. Their commitment to the groups shows over and over again through their interactions with members, their advocacy for the groups and their constant ask, “What can I do for you?” Our annual employee engagement survey, conducted by a third party, shows that members of ERGs are 5.5% more connected to our executive management team than non-ERG members. Start Slow (and Organized). Managing an ERG is an undertaking, even with all the right support in place. Start slow and build a strong foundation before you expand. One thing that has been very helpful to me is to create and refer back to an ERG Playbook. This 20-page document contains everything from a layout of some basic definitions to standard operating procedures and a welcoming letter from our CEO. Not only does this guide the creation of new groups, it helps to ensure continuity and equity with the groups on a go-forward basis. Budget. While not necessary, it has been extremely helpful to have a modest budget to support things like external speakers, participation in community events and training materials. You will find the payoff is worth the expense when you see the growth and development within your teams. Metrics. Consider what is possible to track and what data will help you tell a future story. Do you want to see how many people are participating? Track it. Do you administer an engagement survey? Add inclusion and belonging questions. Do you receive feedback? Write it down. Do your research, and you will find that many Diversity, Equity and Inclusion practitioners are willing to share their metrics. DIVERSITY, EQUITY & INCLUSION 12 HOOSIERBANKER
Self-Care. Whether you are launching your first ERG or you already manage several, there will be times when you face pushback and adversity. Be curious and invite those people into the conversation, but be aware of how that pushback may be impacting you and take time to take care of yourself. Engaging in Diversity, Equity and Inclusion work can be emotionally draining, and you need to protect yourself from burnout. Best of luck in your employee resource group journey. I think you will quickly see an impact on your engagement and company culture that will trickle out to the community and the world around you. Steph Madison Vice President, Diversity and Engagement Manager First Merchants Bank, Muncie SMadison@FirstMerchants.com Steph is based in northwest Indiana but serves the bank’s entire footprint. She has worked in the financial services industry for nearly 20 years, including consumer banking and corporate social responsibility, using her skills as fuel for her passion to help others. IBA ‘HIGH FIVE’ AWARDS Congratulations to AyZha Hazelwood, who was honored with the Indiana Bankers Association High Five Award in May 2024. Hazelwood serves as the Association’s education meeting coordinator. The High Five Awards support professional development by inviting Association members and staff to submit names of IBA employees who perform outstanding acts of service. Nominations are read at monthly staff meetings, and a drawing determines the winner. To nominate an IBA employee for the High Five Award, call (317) 387-9380 or email HB@indiana.bank. TAKING IT EASY Jeff Cash is retiring from German American Bank, Jasper, after 15 years with the bank, ending as senior vice president, chief risk officer. David Eifler retired from Horizon Bank, Michigan City, on July 5. He spent 42 years in commercial banking, holding the title of market president of the bank’s southwest Michigan and north central Indiana region at the time of his retirement. Dan Hampton retired from Horizon Bank, Michigan City, in July as president of the bank’s Central Indiana region. Joni Lambert retired from Logansport Savings Bank on May 31. She spent 43 years in banking, 22 with Logansport Savings Bank, where she worked her way up from teller all the way to vice president of operations. Outside the bank, Lambert is a past president of the Cass County Family YMCA board of directors. JULY/AUGUST 2024 13
W Inclusive Language IS AN ASSET THE IMPORTANCE OF LANGUAGE INSIDE AND OUTSIDE OF BANKING INSTITUTIONS BY MARC HARDY, MERCHANTS BANK OF INDIANA When we’re babies, we have a unique relationship with language. We start with a listen-first approach, then grow into toddlers who prioritize expanding vocabulary and asking questions. As teenagers we create a whole new relationship with language, using slang, jargon and digital communication to incorporate our own personality in the language we use. As we grow into adults, language continues to play a central role in our lives by shaping our interactions, relationships and personal development. Our words have a profound impact on how we make those around us feel. Think about the last time some words you used hurt or inspired someone in your life, how the words you chose left an impact on who you were speaking to, whether positive or negative. This is crucial to the sense of belonging in our banks and communities. Diversity, Equity and Inclusion intersects with language on many levels, including linguistic diversity, language access, cultural competence, inclusive language and education. With over 7,000 languages spoken worldwide, linguistic diversity means understanding that our banks may encounter more than one language within the communities we serve. According to the Center for Immigration Studies, 67.3 million U.S. residents speak a language other than English at home, which is more than double the number from 1990 and almost triple the number from 1980. Without careful consideration of inclusive language inside and outside of our walls, you are limiting your growth potential as a banking institution. Using relevant language materials when marketing to your community will only grow the public’s trust in your company. The language we use within our banks amongst our employees can benefit the inclusion of diverse talent, which is an asset in our traditionally white male-dominated industry. Diversity, Equity and Inclusion language directly coincides with education and cultural competence. It encourages individuals and organizations to understand the cultural nuances and communication styles of diverse communities, fostering mutual understanding and respect. It promotes the use of inclusive language that respects and affirms people’s identities, experiences and perspectives. This includes avoiding language that perpetuates stereotypes, biases or discrimination based on factors such as race, ethnicity, gender, sexuality, disability or socioeconomic status. To create an inclusive work culture, we should replicate the baby and toddler approach to language: listening and asking questions with the intent to learn. Adults must learn from their language mistakes as teenagers through slang and potentially offensive words. Prioritize and take pride in your DIVERSITY, EQUITY & INCLUSION 14 HOOSIERBANKER
personal development for the betterment of yourself and others. It will have a positive impact on the relationships around you. Do not look at new and inclusive language as a burden, but as another opportunity to learn and connect. Inclusive language is an asset. Even a slight consideration of someone’s language can improve your working relationships and possibly market expansion for your bank. The language around Diversity, Equity and Inclusion can seem sensitive, triggering or even scary. The terms can lead some people to feel disrespected or nervous to say anything at all. If you approach your relationships, conversations and ultimately the language you use with sincere curiosity, it can build a sense of belonging for you and others. The next time you hear terms you don’t understand, take the childlike approach of listening first, asking questions, then determining the most effective language to use. Simply putting forth the effort of using inclusive language and broadening language access can go a long way with your employees and ultimately your customers. Marc Hardy Vice President – Diversity, Equity & Inclusion Merchants Bank of Indiana MHardy@MerchantsBankofIndiana.com At C/A’s Compliance Hub, we know where to start and we’re here when you need to circle back for clarification. We’re Compliance Alliance. info@compliancealliance.com or (888) 353-3933 Our banks find Compliance Hub’s services vital for situations like these. C M Y CM MY CY CMY K Marc has nearly 10 years of experience in Diversity, Equity and Inclusion work. Since his book ‘CAN I BE REAL’ released in 2016, Marc began delivering workshops, presentations and keynote speaking to non-profits, schools and for-profit corporations, with additional experience in leading this work in K12 education. JULY/AUGUST 2024 15
T Providing A PATH IBA-MEMBER BANK USING ITIN MORTGAGE LOANS TO REACH ITS LOCAL INTERNATIONAL POPULATION BY JOSH FLYNN, PHAROS-TRIBUNE Three years into their Individual Taxpayer Identification Number Loan Program, Security Federal Savings Bank, Logansport, has found nothing but success in their efforts to assist the international community in their service area. The program helps residents who do not have a social security number, including undocumented immigrants, but have an individual taxpayer identification number. Security Federal Savings Bank, with seven banking centers across Logansport, Kokomo, Delphi, Lafayette and West Lafayette, created the mortgage loan program to help residents become homeowners. Since 2021, approximately 80 residents have received a loan. The bank has never had a late payment, according to Bryan Martinez, the bank’s loan originator at its Logansport home office. The success of the home mortgage program led bank leaders to expand it to also cover a home equity line of credit option, loans for investment properties and lower down payments. “It’s been extremely successful, and we have been able to help a lot of people who were in a position which they didn’t feel they were prepared or financially ready to purchase a home,” said Annette Russell, bank president and CEO, and a former chair of the Indiana Bankers Association. The program originated when bankers discovered the Hispanic population had grown by 40% in both Cass and Tippecanoe counties over the past decade. There was general frustration among the Hispanic populace about being ineligible for a loan. The bank realized that much of the Hispanic community’s money was going toward rent, and they were not building equity or achieving home ownership. “We are not all equal as far as status is concerned,” Russell said. “We knew it was important that these individuals were contributing members of our community and had a desire to stay for employment, for educational purposes and they were also small business owners in our community, so they have really embraced living in our community. They’ve become engaged in our community. We felt it was important to modify our product base to afford them the same opportunities as everyone else.” Those seeking a loan must provide a valid form of identification other than a driver’s license, a documented source of income, proof of employment and proof of credit. Alternative sources of credit can be used to help those who have not yet established a credit history, including something purchased on a contract or even a Netflix membership — anything that shows the applicant can make a monthly payment. DIVERSITY, EQUITY & INCLUSION Bryan Martinez, left, of Security Federal Savings Bank poses for a photo with Renee Salinas, who took advantage of the bank’s ITIN loan program. Russell 16 HOOSIERBANKER
“It affords them the opportunity to own and start to begin to build some equity in an asset that is truly theirs at a price point that is maybe more manageable than just paying rent,” Russell said. “It gives them a sense of ownership, pride, equity and then they truly are invested in the community.” Renee Salinas took advantage of the ITIN loan after family and friends told him about it. Speaking through Martinez as an interpreter, Salinas said he first thought it would be a difficult process but quickly discovered he could complete it with relative ease. Salinas, who owns three restaurants including Logansport’s Mi Mexico at 3101 E. Market St., said the loan opened many doors for him and helped him to start building credit. The bank has been making a solid push to serve its local international population by hiring bilingual employees, modifying traditional programs to meet the needs of new demographics and printing forms in different languages. They also formed a Diversity, Equity and Inclusion Task Force in 2021. “That [task force] is represented by a member of our team that lives in and/or works in our market area, so whether that be Lafayette or Kokomo or Carroll County,” Russell said. “And now we are entering into Hamilton County and Boone County. So being aware of the demographics of those communities — obviously as you enter into larger communities, the population is more diverse. We have tried to stay in touch, too, with the developments in Kokomo as far as the Korean potential for immigration [due to the incoming battery plant] and how we can adapt to their needs. It’s really just maintaining that awareness of the financial practices of different cultures.” Martinez said many people believe they won’t be eligible for the ITIN program and are afraid to stop by the bank and inquire about it. “I just encourage people to come here and ask questions,” he said. “They will probably be surprised, and we will end up being able to help them. Even if for some reason we can’t do it right now, we can still help put you on the right track so maybe you could come back in a few months or in a year, and then you will be able to qualify for that loan.” This article was originally published in the May 2024 inaugural issue of Diversity Magazine, a publication of the Logansport Pharos-Tribune. Republished with permission. Josh Flynn Staff Reporter Logansport Pharos-Tribune Josh.Flynn@PharosTribune.com Mi Mexico restaurant, owned by Salinas, located at 3101 E. Market St., Logansport. Josh Flynn enjoys writing about education, the arts and local theater. JULY/AUGUST 2024 17
TThe Indiana Bankers Association’s annual Mega Conference this year encouraged Hoosier bankers to “change, engage and evolve” to a place where change is not just anticipated but embraced, engagement goes beyond transactions, and evolution becomes a strategic imperative. Mega Conference is the Association’s signature event each year and the largest state bankers association meeting in the nation. Attendees for 2024 held steady at more than 1,250, our high since before the pandemic. The conference teed off Monday, May 6, with an afternoon golf tournament through cloudy weather at the Country Club of Indianapolis on the west side of the city. That evening, the IBA hosted its annual Associate Member Appreciation Reception at The Westin Indianapolis Hotel in recognition of the many associate members who make Mega possible each year. Bankers and associate members enjoyed drinks and hors d’oeuvres while networking with one another. The evening concluded with the popular hospitality suite in the Governor’s Suite at the Westin. On Tuesday, the conference schedule began in earnest with two morning and two afternoon rounds of educational breakout sessions, with six sessions to choose from in each slot. Tuesday morning also featured the return of the popular Fintech Showcase, sponsored by Profit Resources Inc. The showcase featured live pitches from emerging companies displaying their new technologies and opportunities to implement innovative solutions specifically designed for community banks and their customers. Between the morning and afternoon sessions was a lunch keynote featuring Jay Baer, who discussed how to grow your business by focusing on three things your customers truly care about. The luncheon also featured the presentation of Diamond Associate Member awards and recognition of this year’s Five-Star Bank members. After the day’s educational sessions wrapped up, bankers returned to the exhibit hall for the Mega Celebration, where they mingled with one another and associate members over food and drinks. That evening, the IBA Future Leadership Division gathered for a casual networking event at Yardhouse, just a short (rainy) walk from the convention center. All conference attendees were then invited back to the hospitality suite for another evening of fun, conversation, food and drinks. Wednesday brought another four rounds of education sessions, again with six options each. At lunch, keynote speaker Joshua Evans urged attendees to cultivate the future of their employees’ experience. The luncheon also featured the announcement of this year’s Commitment to Community Award winners. The program is designed to showcase exceptional community outreach Change, Engage, Evolve: 2024 MEGA CONFERENCE RECAP 18 HOOSIERBANKER
JULY/AUGUST 2024 19
by banks in the state. Congratulations to Alliance Bank, Francesville, for winning the category for banks with under $500 million in assets, and Horizon Bank, Michigan City, for winning the category for banks with $500 million or more in assets. Learn more about all of this year’s nominees starting on page 22. Thank you to all who attended, and many thanks to our generous sponsors. We hope to see you at next year’s Mega Conference, scheduled for May 27-29, 2025, at the Indiana Convention Center and JW Marriott. COMMITMENT TO COMMUNITY AWARDS Thank you to the 25 IBA-member banks that submitted nominations for the 2023 C2C Awards. The stories of all nominating banks are highlighted on page 22 in this issue of Hoosier Banker as well as in IBA social media using the hashtag #C2CAwards. Nominations are now open for the 2024 C2C Awards, to be presented at the 2025 Mega Conference. Entries will be divided into three categories instead of two: banks with up to $750 million in assets, $750 million - $3 billion, and more than $3 billion. For more information, visit Indiana.bank/ Commitment-Community-Award, or contact Emily Brooks at EBrooks@indiana.bank. Asset size: Under $500 million ▶ Alliance Bank, Francesville – winner ▶ Fowler State Bank – finalist ▶ Home Bank, Martinsville – finalist ▶ Bath State Bank ▶ Bippus State Bank, Huntington ▶ Logansport Savings Bank ▶ Wayne Bank and Trust Company, Richmond Asset size: $500 million or more ▶ Horizon Bank, Michigan City – winner ▶ Community First Bank of Indiana, Kokomo – finalist ▶ North Salem State Bank – finalist ▶ Busey Bank, Champaign, Illinois ▶ Centier Bank, Merrillville ▶ Civista Bank, Sandusky, Ohio ▶ First Bank Richmond ▶ First Federal Savings Bank, Evansville ▶ First Harrison Bank, Corydon ▶ First Merchants Bank, Muncie ▶ First Savings Bank, Jeffersonville ▶ GBC Bank, Greenfield ▶ JCBank, Seymour ▶ Merchants Bank of Indiana, Carmel ▶ The National Bank of Indianapolis ▶ Northwest Bank, Warren, Pennsylvania ▶ STAR Bank, Fort Wayne ▶ WesBanco Bank, Wheeling, West Virginia 20 HOOSIERBANKER
FIVE STAR MEMBERS ▶ Alliance Bank, Francesville ▶ Bank of Wolcott ▶ Bath State Bank ▶ The Bippus State Bank, Huntington ▶ Citizens Bank, Mooresville ▶ Citizens State Bank, New Castle ▶ Community First Bank of Indiana, Kokomo ▶ Crossroads Bank, Wabash ▶ DeMotte State Bank ▶ F&M Bank, Archbold, Ohio ▶ Farmers and Mechanics Federal, Bloomfield ▶ The Farmers Bank, Frankfort ▶ First Bank of Berne ▶ First Bank Richmond ▶ First Farmers Bank & Trust Co., Converse ▶ First Federal Savings Bank, Evansville ▶ First Federal Savings Bank, Huntington ▶ First Federal Savings Bank, Rochester ▶ First Harrison Bank, Corydon ▶ First Savings Bank, Jeffersonville ▶ First State Bank of Middlebury ▶ First State Bank of Porter ▶ The Fountain Trust Company, Covington ▶ GBC Bank, Greenfield ▶ German American Bank, Jasper ▶ Hendricks County Bank & Trust Company, Brownsburg ▶ Home Bank, Martinsville ▶ Hoosier Heartland State Bank, Crawfordsville ▶ JCBank, Seymour ▶ Kentland Bank ▶ Logansport Savings Bank ▶ Mutual Savings Bank, Franklin ▶ North Salem State Bank ▶ NWSB, Charlestown ▶ Owen County State Bank, Spencer ▶ The Peoples Bank, Brownstown ▶ Riddell National Bank, Brazil ▶ Security Federal Savings Bank, Logansport ▶ Springs Valley Bank & Trust Company, Jasper ▶ Tri-County Bank & Trust Company, Roachdale ▶ Wayne Bank and Trust Company, Richmond DIAMOND ASSOCIATE MEMBERS ▶ Amundsen Davis LLC ▶ The Baker Group ▶ BancMac/Community Banc Mortgage Corp. ▶ Bankers’ Bank ▶ Federal Home Loan Bank of Indianapolis ▶ K4 Architecture + Design ▶ The KeyState Companies ▶ Krieg DeVault LLP ▶ NFP ▶ Renninger & Associates LLC ▶ Amundsen Davis LLC ▶ Angott Search Group ▶ The Baker Group ▶ Baker Hill Corporation ▶ Banc Card of America ▶ BancMac/Community Banc Mortgage Corporation ▶ Bankers’ Bank ▶ BHG Financial ▶ Check Printing Contract Consulting ▶ Cherry Bekaert ▶ Cinnaire Corp. ▶ CLA ▶ Crowe LLP ▶ DDI Technology ▶ Dentons Bingham Greenebaum LLP ▶ Endeavor IT ▶ Executive Benefits Network ▶ Federal Home Loan Bank of Indianapolis ▶ Federated Hermes Inc. ▶ Forvis Mazars ▶ Graduate School of Banking ▶ Green Sign Company ▶ IBA Group Insurance Trust ▶ Independent Community Bankers of America ▶ Investors Title Insurance Company ▶ K4 Architecture + Design ▶ The KeyState Companies ▶ Kilpatrick Townsend & Stockton LLP ▶ Midwestern Securities ▶ Ncontracts ▶ Plante Moran ▶ Profit Resources Inc. ▶ PULSE, A Discover Company ▶ Renninger & Associates LLC ▶ Silverback ▶ TCA Compliance ▶ Title Center of Indiana LLC ▶ Travelers ▶ United Bankers’ Bank ▶ UnitedHealthcare ▶ Virtual Innovation Inc. ▶ VISA ▶ Voluforms ▶ Wipfli LLP ▶ Works24 ▶ Young & Associates Inc. THANK YOU, SPONSORS JULY/AUGUST 2024 21
T 2023 C2C Award NOMINEES F E ATUR E ASSET SIZE: UNDER $500 MILLION Alliance Bank, Francesville WINNER As a locally owned community bank, Alliance Bank is “all in” when it comes to supporting its communities. In 2023 the bank broke $100,000 donated to local nonprofit organizations for the first time in its history, and employees volunteered an average of 15 hours each. In response to local issues with childcare and housing, the bank made a five-year commitment of $25,000 to Appleseed Childhood Education in Jasper County, a $7,500 commitment for a grant match to the Childcare Coalition of Pulaski County and $5,000 to the Pulaski County Housing Taskforce. It is imperative for the bank to have a pulse on the most pressing needs of the community and prioritize outreach efforts for maximum impact. Bath State Bank In 2023, Bath State Bank’s 99th year in banking, the bank emphasized financial literacy outreach to high school students by partnering with a local rural high school and continuing its outreach with Junior Achievement. The bank operates an intermittent school branch facility to provide real-world banking experiences to high school students, in addition to financial literacy education. Financial education is of particular importance as personal finance has become part of the graduation requirement curriculum. Bath State Bank employees taught nearly 50 classroom presentations in 2023 from kindergarten to high school grade levels. Overall, the bank delivered support to more than 200 organizations, totaling almost $100,000 this past fiscal year. The Indiana Bankers Association Commitment to Community Awards, presented annually at the IBA Mega Conference, tell the story of banking by showcasing bank community service provided the prior calendar year. Two awards are given, representing asset sizes under $500 million, and $500 million or more. For the 2023 awards, Alliance Bank, Francesville, won in the category of banks under $500 million in assets, and Horizon Bank, Michigan City, won in the category of $500 million and above. Finalists were Fowler State Bank and Home Bank, Martinsville in the under $500 million category; and Community First Bank of Indiana, Kokomo, and North Salem State Bank in the $500 million and above category. Each of the following 25 nominees answered questions that align with an evaluation rubric, and all entries were reviewed and scored by the Oklahoma Bankers Association. 22 HOOSIERBANKER
indiana.bankRkJQdWJsaXNoZXIy ODQxMjUw