THE OFFICIAL PUBLICATION OF THE INDIANA BANKERS ASSOCIATION JANUARY/FEBRUARY 2024 CHAIR PROFILE BEN BOCHNOWSKI
Education is the foundation of performance for investment portfolio managers. This is the reason The Baker Group has presented hundreds of seminars and conferences across the country over the last forty-five years. We continue to bring that history of educational experience to a bond school designed specifically for new portfolio managers and those who need to learn the fundamentals of fixed income investing. The Baker Bond School will give attendees the knowledge to better understand the various types of securities available, how to analyze them effectively, and how to use that knowledge to build and manage a high-performance investment portfolio within the framework of the entire balance sheet. WHAT YOU WILL LEARN Fundamentals of asset/liability management including what it is and why we do it Understanding the impact of the economy, monetary policy, and interest rates on the earnings and capital of the institution Regulatory expectations to ensure you are always in compliance with the latest guidance and prepared for your next exam Best practices for developing an effective ALCO process including appropriate policies, procedures, and risk limits Practical methodologies and recommendations for how to develop assumptions that are institution specific and regularly reviewed, stress-tested, and back-tested Review of the most important assumptions available in most models and which ones have the greatest impact on outcomes including: — Betas, rate sensitivities, and lags — Decay rates, NMD average lives, and maturity distributions — Discount rates and reinvestment rates — Prepayment ratestaneous vs. ramped and WHO SHOULD ATTEND This school is designed for CEOs, CFOs, and those new to their roles in managing or working with the investment portfolio. Directors and new members of the investment and asset/liability management committees will also benefit from the Baker Bond School. For your convenience, register online at GoBaker.com/bond-school/ or scan the QR code below. Call Skoshi Heron at 888.990.0010 for more information. BOND SCHOOL SCHEDULE Tuesday, April 9 7:30 a.m. Breakfast 8:30 a.m. Program 12:00 p.m. Lunch 1:00 p.m. Program 4:30 p.m. Adjourn 6:00 p.m. Dinner Wednesday, April 10 7:30 a.m. Breakfast 8:30 a.m. Program 12:00 p.m. Conclusion ACCOMMODATIONS A block of rooms will be available at the Omni Oklahoma City Hotel. Identify yourself as a Baker Bond School attendee when calling 405.438.6500. The special room rate will be available until March 6, 2024. Hotel price: Deluxe $229 + tax. www.GoBaker.com 800.937.2257 Oklahoma City, OK | Austin, TX | Long Island, NY | Salt Lake City, UT | Springfield, IL | Member: FINRA and SIPC April 9-10, 2024 Oklahoma City, OK OKC Convention Center Cost: $595 12.5 hours of CPE credits will be earned for your attendance. Baker Bond School WHAT YOU WILL LEARN • Fundamentals of bonds, bond types, and the role of the investment portfolio • Introduction to bond analytics • Characteristics of high-performing portfolios • Introductions to the following investment sectors: — Treasuries, Agencies, and CDs — Municipal Bonds — Mortgage-Backed Securities and Collateralized Mortgage Obligations — Commercial Mortgage-Backed Securities — Small Business Administration Securities • Mortgage prepayment analysis • Regulatory expectations for the investment portfolio • Portfolio cash flow strategies • How to develop a written investment strategy • How to analyze bond offerings
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 At-Large appointment pending 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 North Salem State Bank Amanda Morris-Feldman, Vice President First Federal Savings Bank, Rochester Ryan Anderson The Fountain Trust Company, Covington Greg Barnes Jr. STAR Bank, Fort Wayne Jenilee Bransteter First Bank of Berne Jordan Briggeman Springs Valley Bank & Trust Company, Jasper Brandi Dunn The Farmers Bank, Frankfort Larissa Fox Old National Bank, Evansville Brock C. Goggins German American Bank, Jasper 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 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 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 Timothy Fry Staff Accountant Tracy Kubly Technology Manager Silvia Peraza Administrative Assistant OUR ASPIRATION The Indiana Bankers Association strives to grow stronger banks and stronger communities. OUR VALUES In fulfilling our mission, we will: • maintain the highest ethics, integrity and respect for others; • 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. Vol. 108 No. 1 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 prior to 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 JANUARY/FEBRUARY2024 3
4 HOOSIERBANKER IN THIS ISSUE 10 29 23 40 Chair Profile BEN BOCHNOWSKI Bridging the Gap The Importance of the Short Session By Dax Denton & Ross Teare, Indiana Bankers Association Electronic Signatures By Brett Ashton, Krieg DeVault, LLP Banking on Women Conference Unleashing Your Potential By Laurie A. Rees, Indiana Bankers Association
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 CHAIR PROFILE 10 Ben Bochnowski Continuing a Legacy of Leadership, Community and Connection 14 Cryptocurrency: A Solution Without a Problem By Rebeca Romero Rainey, Independent Community Bankers of America 16 The High Cost of Too Much Capital By Rob Nichols, American Bankers Association 40 Banking on Women Conference Unleashing Your Potential By Laurie A. Rees, Indiana Bankers Association 46 Proudly Presenting the 2024 IBA Board of Directors Articles FLD FOCUS 19 FLD Reflects on Successful 2023 Looks Forward to 2024 By Josh Myers, Indiana Bankers Association GR SUMMIT 23 Bridging the Gap The Importance of the Short Session By Dax Denton & Ross Teare, Indiana Bankers Association FINANCIAL MANAGEMENT 24 The Rise of Municipal Tender Offers By Dana Sparkman, The Baker Group HUMAN RESOURCES 27 Safe Harbor 401(k) Basics By Anna Noble, QKA, QPA, TGPC, CIP, Ascensus COMPLIANCE CONNECTION 29 Electronic Signatures By Brett Ashton, Krieg DeVault, LLP HUMAN RESOURCES 30 ADA May Necessitate Work Commute Accommodations By Debra A. Mastrian, Amundsen Davis, LLC PSP SHOWCASE 32 Transforming Hoosier Communities Cinnaire’s LIHTC Fund Leverages Collective Bank Support, Capital By Keith Broadnax, Cinnaire Corporation PRODUCTS & SERVICES PROFILE 34 Let IBA Insurance Solutions Help You Get It Right By Rod Lasley, Indiana Bankers Association BANKER PROFILE 36 Meet IBA’s New FLD President: Michael J. Clampitt SALES AND MARKETING 44 Effective Coaching with Sales Performance Metrics By Jeni Wehrmeyer, Anthony Cole Training Group OPERATIONS & TECHNOLOGY 52 Amid the AI Hype, What Should Your Bank Do? By Milton Bartley, ImageQuest Departments 6 Don’t Miss Out 15 Taking It Easy 15 IBA ‘High Five’ Awards 18 Honorable Mentions 20 Bankers on the Move 25 Banking Center News 35 Anniversary Milestones 35 Staff Promotions at the IBA 38 Banking on Community 49 Advertiser Index 50 In Memory Of 50 From the Board Room DIRECTORS / SENIOR MANAGEMENT 40 Reflections on a Career in Financial Markets Jeffrey F. Caughron, The Baker Group CLOSING NOTE 54 Partnership Financing DEPARTMENTS 25 Honorable Mentions 27 In Memory Of 29 IBA ‘High Five’ Awards 37 Taking It Easy 42 Banking on Community 43 Anniversary Milestone 44 Associate Members' Corner 46 Bankers on the Move 51 Banking Center News 53 From the Board Room 53 Advertisers Index POINT PORT s Valley Bank OF EVENTS ng A E FIGHT ABUSE L STEPS E IDEAL rative ARTICLES ARTICLE SPOTLIGHT 14 2023 Annual Convention Recap FLD FOCUS 18 Embrace Your Future with FLD Josh Myers, IBA PSP SHOWCASE 20 Fueling the Green Economy Joshua C. Miller, The Keystate Companies COMPLIANCE CONNECTION 26 Electronic Lien Filing Fees Brett J. Ashton, Krieg DeVault LLP HUMAN RESOURCES 28 Tracking Down Beneficiaries Mary Hopkins, Ascensus 34 Important FMLA Guidance Debra A. Mastrian, Amundsen Davis GR SUMMIT 30 Federal Legislative Landscape Dax Denton and Ross Teare, IBA INDIANA BANK & THRIFT UPDATE 36 Stock Analysis Michael A. Renninger, Renninger & Associates LLC 38 42 H US 5 INTERACT WITH IBA JANUARY/FEBRUARY2024 52 44
Welcome to 2024! I hope you had a wonderful holiday season and were able to enjoy time with loved ones away from the office. Your association staff and leadership are gearing up for another big year, and there are plenty of chances for you to get involved in whatever way best suits your goals. We have 17 educational forums kicking off in January and February. These groups of 15-30 bankers of the same job function (e.g., HR directors, marketing directors, senior retail bankers) meet three times per year to discuss similar issues within their banks. Facilitated by industry experts, these are tremendous opportunities for peer exchange and offer an industry-wide perspective. To register, go to indiana.bank and look under the Education tab. The acclaimed IBA Leadership Development Program kicks off its intensive, eight-month training in March. Space is limited, so be sure to act quickly to identify your best and brightest for this program. The skills developed and lessons learned can help your emerging leaders contribute to your bank’s future. If you haven’t been getting messages from the IBA, make sure your IT team has whitelisted the @indiana.bank domain. If they have and you’re still having problems, contact our team at Communications@indiana.bank and they can help troubleshoot. If you are receiving messages for things that don’t apply to you, scan the QR code to fill out a brief form letting us know what you do and do not want to know about, and we’ll customize your profile to match. You’ve likely noticed that Hoosier Banker looks a bit different this issue. Our team decided the magazine was due for a refresh, but you can still expect the same great content. Submissions and feedback are always welcome from IBA-member banks and associate members via email at HB@indiana.bank. Thank you again to Jamie Shinabarger for his service to the association as its chairman last year, and congratulations to Ben Bochnowski on his election as chair for 2024. I look forward to working with him — and each of you — throughout the new year! W Vantage VIEWPOINT BY AMBER R. VAN TIL, INDIANA BANKERS ASSOCIATION Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank DON’T MISS OUT 1 Legislative Briefing & Reception Jan. 23 Meet face-to-face with Indiana lawmakers to discuss issues of the day. 2 FLD Day at the Statehouse March 5 Future Leadership Division participants learn about and engage in grassroots advocacy. 3 Mega Conference May 6-8 Mega is the largest, most comprehensive state banking event in the nation. On behalf of the IBA Board and staff, congratulations again to Amber for being named 2023 Association Executive of the Year at the Indiana Society of Association Executives’ annual awards ceremony in Indianapolis on Dec. 6, 2023. 6 HOOSIERBANKER
W Chairman’s REPORT BY BENJAMIN J. BOCHNOWSKI, INDIANA BANKERS ASSOCIATION With each new year, the IBA builds on the growing foundation laid by leaders and volunteers alike who have made this incredible association all that it is today. It’s my honor to lead the IBA for its 127th year. My predecessor, Jamie, is passionate about political engagement. I want to thank him for the fantastic work he did in that area, leaving us on solid ground as we head into this year’s short legislative session at the Statehouse. Read more from Dax Denton and Ross Teare about what to expect on that front on page 23 of this issue. Our continued success, not just in grassroots advocacy, is dependent upon engaging the next generation of bankers and collaborating with them to serve members in new ways. I plan to work with the Future Leadership Division’s President and Vice President for 2024, Michael J. Clampitt and Amanda Morris-Feldman, and other key nextgeneration leaders in our industry on how we can promote new opportunities for growth. I will also work with the rest of the board to ensure the successful implementation of our current three-year strategic plan as we enter its final year and set up a seamless transition to what comes next. Find a copy of our current strategic plan at indiana.bank/strategic-plan. Unfortunately, analysts are predicting a rough year for banking. The American Bankers Association’s Economic Advisory Committee’s Credit Conditions Index predicted in late September that credit quality and availability would weaken through the end of 2023 and into the beginning of this year; in November, Forbes predicted a “boring, yet dangerous” 2024 for banks; and Reuters predicted that the global economy will manage to avoid a recession but is still likely to slow down this year. As questions continue to hang over our industry, I want to maintain strong and efficient financial leadership for our Association so the IBA can focus as many resources as possible toward serving our member banks. Thank you in advance to the directors and senior leadership team at Peoples Bank for helping pick up the slack this year as I travel the state as IBA Chair, and to my wife, Emma, for her support in all things. I appreciate the vote of confidence that each and every member gave in voting for my chairmanship this year. Please join me as we continue to push the IBA into another year of advocacy for our industry, relevancy for our members and support for our communities. Benjamin J. Bochnowski Chairman Indiana Bankers Association Chairman and CEO Peoples Bank, Munster An advocate for fostering a positive work culture, Bochnowski actively engages in bank-wide activities. Here, he is seen donning a Peoples Bank chevron-themed costume while distributing Halloween treats to employees, as well as participating in the bank’s inaugural Executive Cookie Decorating Contest during the holiday season. (Photos courtesy of Peoples Bank, Munster) JANUARY/FEBRUARY2024 7
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EDUCATION CALENDAR 2024 IBA EDUCATION CALENDAR FEBRUARY 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 Frontline Branch Series — Part 2: Wowing the Customer Feb. 28: Virtual Information/Cybersecurity/IT/Operations Officer Forum — Group 1 Feb. 28: IBA Center Information/Cybersecurity/IT/Operations Officer Forum — Group 2 Feb. 29: IBA Center MARCH FLD Day at the Statehouse March 5: Hilton Indianapolis Hotel & Suites Retail Management Series — Part 2: Building, Engaging and Developing the Team March 5: IBA Center Frontline Excellence, CEO of the Customer Experience March 5: Virtual Frontline Excellence, CEO of the Customer Experience March 6: Virtual Essentials of Commercial Credit Analysis Series — Part 2: Analyzing Tax Returns and Calculating Traditional Cash Flow March 6: IBA Center & Virtual Professional Development/Education/ Training Forum March 6: IBA Center Call Report Update March 7: IBA Center Risk Management Forum March 7: IBA Center BSA Fundamentals March 12-13: Virtual New Account Documentation and Compliance March 14: IBA Center Retail Lending Series — Part 1: Introduction to Retail Lending March 14: Virtual Leadership Development Program — Session 1 March 18-20: Abe Martin Lodge, Brown County State Park Loan Operations Manager Forum March 20: IBA Center Frontline Branch Series — Part 3: Your Advisory Role March 20: Virtual FDIC Directors College March 21: IBA Center Analyzing Repayment Sources March 27: Virtual Essentials of Banking — Part 3: How Banks Make Money and Risk Management March 28: Virtual See all education opportunities at indiana.bank/calendar. JANUARY/FEBRUARY2024 9
Ben Bochnowski CONTINUING A LEGACY OF LEADERSHIP, COMMUNITY AND CONNECTION WHAT ATTRACTED YOU TO BANKING AS YOUR CAREER? Banking was in my family and one of the first things I ever saw. At a young age, I was fortunate enough to observe firsthand the impact of banking on our communities, businesses and families, and saw how rewarding it was for my father and grandfather. Not many people get that kind of exposure that early in life, and it stuck with me. WHAT WOULD YOU SAY WAS A PIVOTAL MOMENT IN YOUR CAREER? I’ve had many pivotal moments, but they all came after moments of failure. Making decisions to move forward, finding new skills and opportunities, and growing from experiences have always been the most transformative. We encounter failure all the time, and the learning and resilience that come from it have really shaped my career. That said, the most pivotal moments sometimes come by chance. When I came to Peoples Bank, I had specific things I had hoped to contribute. Three years in, the company went into crisis when my father became sick due to Agent Orange exposure he experienced during his Army service in Vietnam. Our Board asked me to step into a dayto-day leadership role, and with some trepidation, I took it on. That moment made my career today possible. However, my success from that day on is thanks to the great team I have had the privilege of working with over the past decade. Without them, none of it would have been possible. WHAT DO YOU MOST ENJOY ABOUT BANKING? Helping people. Our president, Todd Scheub, always says, “It’s a great day when you can help someone.” We help people all the time, from residents buying their dream homes to entrepreneurs establishing their businesses, and we build partnerships that help our local economies grow and thrive. It’s a complicated industry, and incredible to think about the role banks play in their communities and the lives of their customers. In the CHAIR PROFILE HOOSIERBANKER 10
interconnected world of finance, we get capital where it needs to go, and it is amazing to see the impact we can have as bankers. HOW DOES IBA INVOLVEMENT HELP YOUR CAREER? The exposure and relationships I have built have been the most rewarding part of my involvement with the IBA. Those relationships and the camaraderie they have inspired are what I can lean on to find new perspectives and ideas. That is what makes this such a great industry to be part of and a great state in which to live and work. WHAT ARE YOUR LEADERSHIP PLANS FOR THE IBA? Every year, the IBA gets better and builds on past success. My goal is to work with the Board and do just that. Jamie was passionate about political engagement, and we are on very solid footing there. As we move forward together, I aim to keep up that positive momentum by helping Amber and the team continue to execute our strategy. The IBA is one of the most fiscally sound associations in the country, and during potentially turbulent times, maintaining that financial leadership will be critical so we can be successful and serve our members well into the future. WHAT ADVICE WOULD YOU OFFER TO YOUNG BANKERS BEGINNING THEIR CAREERS? Understanding relationships is key. A mentor of mine once told me, “People bank with people.” That couldn’t be truer today, especially as the industry changes and the day-to-day work environment changes. The corollary to that could be “people work with people,” and having relationships internally to get things done — along with externally to learn and grow — is essential. There is no substitute for spending time in the business and with people.
The other thing is to really understand the mechanics of the business. Banking is complex and interconnected, and understanding all its moving parts will help you make decisions that will enhance your customers’ experience. IF YOU WEREN’T A BANKER, WHAT WOULD BE YOUR CAREER? This is not an easy question to answer. I have a friend who always says you need to combine your passion with your profession, so if it weren’t banking, it would have something to do with leading teams. I love athletics as well, so I’m sure I would be thinking about coaching if I had any talent! WHO IS AN INFLUENTIAL PERSON IN YOUR LIFE? My father was definitely an influential person in my life, and there are many more in the banking industry who I could name. I was lucky enough to be able to watch my father in the Chairman role and then work with him for more than a decade. I learned a lot from him, both directly and indirectly. Shawn Bennett, who has been my executive coach for half a decade, has really helped me grow as a leader. And I have to add my wife, Emma, as well. She has had an incredible career, is incredibly bright and talented, and has been an inspiration and source of support through both good times and bad. DESCRIBE YOUR HOME LIFE. WHAT DO YOU LIKE TO DO FOR FUN? I was an avid runner for more than a decade and completed a dozen marathons. The discipline and achievement were good for both my health and career, and the goals I set with running gave me the self-confidence to take on big challenges at work. In early 2023, I completed my final race of the six World Marathon Majors, which took more than a decade for me to complete and is a challenge only 10,000 people or so have ever done. The time requirement and physicality took a toll, though, so I have now officially retired from marathons. Between busy schedules, my priority outside of work is to spend time with my wife. Spending time with her is what gives me the energy to do what I do at work! CHAIR PROFILE, CONT. HOOSIERBANKER 12
Is your community bank secure? Meet Dina. Dina provides clients with the guidance they need to steer clear of card fraud all year long. Working together with ICBA Payments partners, she ensures client banks are receiving the level of care and support they deserve. Even when she’s waiting to pick up her kid from practice, she’s scribbling notes on how we can better protect banks from fraud. By working with ICBA Payments, your bank has Dina’s ongoing support. Learn more at icbapayments.com
I Cryptocurrency: A SOLUTION WITHOUT A PROBLEM BY REBECA ROMERO RAINEY, INDEPENDENT COMMUNITY BANKERS OF AMERICA contention. That anonymity easily can lead (and has led) to illicit payments, so it may not be what it’s cracked up to be. Whether it’s nonbank payment providers like PayPal, states that want to issue their own stablecoins, central bank digital currency or a piece of legislation trying to create a regulatory framework, this is a space to keep a handle on. Know that ICBA is observing and advocating on your behalf. As a financial services industry, we can’t fall victim to shiny object syndrome; we need to keep peeling back the onion to determine what we are solving for and, from ICBA’s perspective, how that can be done in a way that works with and for community banks, With emerging technology, knowledge is power, which is why we’re offering ongoing opportunities to stay in the know on cryptocurrency’s evolution. We encourage you to remain up to speed on developments, whether through digital asset courses with Community Banker University or our payment team’s online analysis. We will keep providing information that helps you know how cryptocurrency is living up to the hype — or, more than likely, not. On a personal note, I want to thank all of you for being part of this collective community bank journey; we couldn’t do it without you. Rebeca Romero Rainey, president and CEO of ICBA, is one of the nation’s foremost advocates of the community banking industry, with a focus on regulatory reform for our country’s nearly 5,000 community banks. A third-generation community banker, she is the former chairman and CEO of Centinel Bank of Taos, NM. Rebeca Romero Rainey President and CEO Independent Community Bankers of America Rebeca.RomeroRainey@ICBA.org In today’s environment, we hear a lot of hype about different technologies. That buzz leads to oversaturation, which can leave us questioning, “Am I missing something?” when we don’t feed into the frenzy. When it comes to cryptocurrency, this is certainly the case. I’m frequently asked in interviews about ICBA’s thoughts on cryptocurrency, inclusive of stablecoins and central bank digital currency, and I typically respond by asking, “What problem are we trying to solve with it?” That will often leave the interviewer stumbling for a response because the answer is truly unclear. While we have heard a wide range of rationale, those concepts don’t seem founded in need as much as in justification. Here are three that easily spring to mind: 1. The claim that it will provide support for global payments is particularly baffling. With a currently unregulated entity, global collaboration and compliance standardization will be essential to ensure that transactions remain safe, secure and legitimate. In short, it’ll take a mountain of global collaboration to make that possibility realistic. 2. The thought that cryptocurrency will enable faster payments is equally troubling. Instant payments platforms are already available in the U.S. — you can’t get much faster than that. 3. The concept of a payments system that’s completely anonymous and frictionless is another point of F E ATUR E 14 HOOSIERBANKER
IBA ‘HIGH FIVE’ AWARDS Congratulations to Silvia Peraza, who was honored with the Indiana Bankers Association High Five Award in October. Peraza is IBA’s administrative assistant. 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. 2023 Commitment to Community Awards The 2023 Indiana Bankers Association C2C (Commitment to Community) Awards will showcase exceptional community bank outreach completed in calendar year 2023. Two awards, based on asset size, will be presented at the 2024 Mega Conference. All nominees are highlighted on IBA social media and in Hoosier Banker. Nominations are due Jan. 31, 2024. JANUARY/FEBRUARY2024 15 TAKING IT EASY Norman L. Lowery retired from First Financial Bank, NA, Terre Haute, effective Dec. 31, 2023. He joined the holding company’s board of directors in 1989 and was appointed chairman in 2020. He has served as chairman, president and CEO of the bank since 1996. He will remain on the board as executive chairman through Dec. 31, 2024, at which time he will transition to non-executive chairman.
I The High Cost of TOO MUCH CAPITAL BY ROB NICHOLS, AMERICAN BANKERS ASSOCIATION “Changes to capital rules, even if they are only intended for the largest banks, will inevitably affect all parts of the banking system. In early October, I sat down with Federal Reserve Vice Chairman for Supervision Michael Barr at ABA’s Annual Convention in Nashville. The topic of our conversation was bank capital. The failures of Silicon Valley Bank, Signature Bank and First Republic Bank have prompted regulators to begin clamoring for major capital increases at larger banks. My question to Vice Chairman Barr was: Why? Why, when the spring bank failures were attributed to a combination of idiosyncratic liquidity challenges, poor risk management practices and oversight missteps, did regulators put capital in the crosshairs? Why, when policymakers — including the vice chairman himself — have stated repeatedly that the banking system is strong, resilient and wellcapitalized, is a major change in capital levels suddenly warranted? While I appreciated the vice chair’s willingness to engage in the conversation, I found the answers I received unsatisfying, to say the least. He echoed a common argument among proponents of the so-called “Basel III endgame,” namely that the last set of capital changes instituted after the 2008 financial crisis did not lead to dramatic economic declines, and that the banking system continued to grow, even while holding higher amounts of capital in reserve. While these statements aren’t false, they’re a poor justification for additional capital increases now. The truth is the post-crisis capital changes did affect economic growth, and they succeeded in driving business outside of the regulated banking sector. Just look at bank mortgage originations in the years since 2007. The share of mortgage originations by banks has declined steadily since the post-crisis rule changes, plummeting from around 80% to just under 30% in 2022. That’s just one example; there are others. Here are the facts: We already have an effective framework in place that requires regulators to sensibly tailor rules based on a bank’s risk profile and business model. Banks already hold sufficient capital, as evidenced by the industry’s collective weathering of several significant events in recent years, from a global pandemic to a period of rapidly rising interest rates to resiliency in the face of the isolated bank failures in the spring. The proposed rules on the table would return our current framework to a one-size-fits-all approach that would put U.S. banks at a competitive disadvantage to their foreign peers. They have the potential to drive more business away from banks and into the lessregulated shadow-banking sector. They also fail to appropriately consider the potential economic consequences of forcing banks to hold even more capital in reserve. Bankers know there is a cost to holding too much capital — and it’s paid by both consumers and businesses who need credit. F E ATUR E To ignore these realities would be a misstep, especially since history tells us that any capital increase for larger banks will eventually 16 HOOSIERBANKER
affect community banks as well. That’s why ABA has been so vocal in calling on regulators to conduct a thorough quantitative impact study to determine the full extent of potential economic consequences, which they agreed to do in mid-October, alongside an extension of the comment period. However, simply collecting the data is not enough. Regulators and the public need ample time to review and evaluate the data to understand the full picture. The current timeline, even with the comment deadline extension, does not allow for that. Given the wide-ranging effect this rulemaking could have, the only appropriate course of action is for regulators to withdraw and repropose the rule after the data can be fully assessed. Changes to capital rules, even if they are only intended for the largest banks, will inevitably affect all parts of the banking system. This is too important to get wrong. Rob Nichols has been president and CEO of the American Bankers Association since 2015 after 10 years at the helm of the Financial Services Forum, a nonpartisan economic policy and advocacy organization. He also served in the George W. Bush administration as assistant secretary for public affairs at the Treasury Department. Robert S. Nichols President and CEO American Bankers Association RNichols@ABA.com Learn how budgeting for top-tier support and guidance can save your program money. That’s Bankers Alliance. info@bankersalliance.org or (833) 683-0701. Holding Company of Compliance Alliance and Review Alliance How would you use a Targeted Audit every month? Explore how monthly audits are tailored to fit your budget and your requirements. C M Y CM MY CY CMY K JANUARY/FEBRUARY2024 17
HONORABLE MENTIONS Centier Bank, Merrillville, was recognized by the Regional Development Company as its Bank of the Year with the most funded loans based on quantity and dollar amount. The RDC is a Valparaisobased nonprofit administering U.S. Small Business Administration 504 loans for small business growth. It partners with local financial institutions to provide business financing for large capital projects in Indiana, Illinois and Michigan. The bank’s business bankers were recognized and awarded for their lending accomplishments. (left to right) Tim Spoelman, business banking officer; Tom Wilk, chief lending officer; Tim Warner, vice president – business banking; and Greg Gordon, SVP – business banking, accepted the Bank of the Year award at the RDC’s annual awards ceremony, Nov. 9, 2023. Tina Patton, director of nonprofit & foundation engagement at Indiana Trust Wealth Management, Mishawaka, and Julia Kaercher, executive director of Merchants Foundation, the charitable arm of Merchants Bancorp and its subsidiaries, including Merchants Bank of Indiana, Carmel, graduated from the Mutz Philanthropic Leadership Institute on Oct. 10, 2023 (pictured right). The Institute identifies and develops transformational philanthropic leaders across Indiana and offers a continuing education experience for board and executive roles at foundations, corporations and social impact organizations. Patton and Kaercher were members of the Institution’s third cohort. Five IBA-member banks made American Banker’s list of the Top 90 Best Banks to Work For. Centier Bank, Merrillville, was the top-rated bank out of all IBA member institutions and No. 10 overall. First Merchants Bank, Muncie, ranked No. 60; Stock Yards Bank & Trust Company, Louisville, came in at No. 70; Civista Bank, Sandusky, Ohio, was close behind at No. 73; and Busey Bank, Champaign, Illinois, was No. 87. IBA associate member TIB-The Independent Bankers’ Bank, Farmers Branch, TX, also made the list at No. 30. For the full list of the Top 90 Best Banks to Work For, please scan the QR code. Five IBA members were named to the Piper Sandler Sm-All Stars Class of 2023, a list of the 31 topperforming small-cap banks and thrifts in the country: 1st Source Corporation, holding company of 1st Source Bank, South Bend; Civista Bancshares, Inc., holding company of Civista Bank, Sandusky, OH; First Financial Bancorp., holding company of First Financial Bank, Cincinnati; Merchants Bancorp., holding company of Merchants Bank of Indiana, Carmel; and Premier Financial Corp., holding company of Premier Bank, Defiance, OH. To make the list, companies needed to have a market cap below $2.5 billion as of Sept. 15, 2023, and clear numerous hurdles related to growth, profitability, credit quality and capital strength. The 31 banks and thrifts that made the list represent just 9% of all companies screened. Tina Patton Julia Kaercher 18 HOOSIERBANKER
T FLD FOCUS FLD Reflects on SUCCESSFUL 2023 LOOKS FORWARD TO 2024 BY JOSH MYERS, INDIANA BANKERS ASSOCIATION The IBA’s Future Leadership Division gained momentum in 2023 and closed out another successful year of creating opportunities for emerging leaders in the industry. In addition to the tremendous FLD Leadership Conference, Day at the Statehouse and networking reception at IBA’s Mega Conference, the FLD rounded out its calendar by hosting five networking lunches throughout the state, a Topgolf networking event and an FLD Coffee Club. The FLD is pleased to provide numerous opportunities for members to network with other peer bankers as well as learning opportunities through roundtable conversations based on industry, leadership and professional development topics submitted by attendees. On behalf of the FLD Advisory Board and myself, I want to extend a sincere thank you to all the banks who made FLD participation a part of their year. As you make plans for 2024, I encourage all banks to continue their support of FLD events or make a commitment to participate in FLD for the first time this year. The FLD Advisory Board is under new leadership as a new president and vice president assume their positions for the year. Michael J. Clampitt of North Salem State Bank will now serve as president of the FLD. This position gives him a seat on IBA’s Board of Directors as the FLD representative. Amanda MorrisFeldman of First Federal Savings Bank, Rochester, will serve as vice president. She will serve as a non-voting member of the IBA Board. Both Clampitt and MorrisFeldman have been active contributors in the FLD for several years and served with the FLD Advisory Board. I want to thank Brock C. Goggins of German American Bank, Jasper, for his leadership of the FLD in 2023. He will continue to serve as immediate past president of the Advisory Board. In addition to leadership changes, the FLD is welcoming new members to the Advisory Board in 2024. Learn more about them in the upcoming March/April issue of Hoosier Banker. The FLD continues to offer worthwhile opportunities for today’s emerging leaders, from educational events to a deep network of peers, and we encourage you to check out the FLD for yourself, maybe even at our next event, FLD Day at the Statehouse, on March 5. Josh Myers Vice President – Member Engagement Indiana Bankers Association JMyers@indiana.bank Josh Myers is responsible for leading the Future Leadership Division, overseeing IBA grassroots advocacy and coordinating member engagement strategies. He first joined the IBA staff in 2009 after serving as an intern with the Indiana Senate Republican Caucus, legislative intern for Bose Public Affairs Group and field manager with the House Republican Campaign Committee. JANUARY/FEBRUARY2024 19
Bankers on THE MOVE CENTIER BANK / MERRILLVILLE Chimere Griggs has been promoted to branch manager. She has been with the bank for nine years, with 18 total years of financial industry experience. Griggs graduated from both Ivy Tech and Indiana University. Steven Swingler has joined the bank as an investment executive for Centier Investment Services. He earned his bachelor’s degree from Indiana University and is a registered broker and investment advisor. Swingler also holds insurance licenses in Indiana, Illinois and Michigan. Heather Foster has joined the bank as a mortgage loan officer. She has 16 years of community banking experience. Dean Niepokoj has joined the bank as a mortgage loan officer. He has more than 30 years of mortgage and banking experience. Niepokoj is a board member of the Crossroads YMCA and the Northwest Indiana Mortgage Bankers Association, is a member of the Crown Point Lions Club and Crown Point High School Football Chain Gang, and is the gym manager for St. Mary School CYO Sports. FIRST FEDERAL SAVINGS BANK / EVANSVILLE Michael Carter has been promoted from senior vice president, commercial credit & operations manager to executive vice president, chief commercial lending officer. He has been with the bank for all 16 years of his career. Carter serves as vice president for his local chapter of the Risk Management Association and is a baseball coach. He earned his bachelor’s degree from the University of Southern Indiana and graduated from the IBA Leadership Development Program. Sarah Cox has been promoted from senior vice president, risk manager to executive vice president, chief risk management officer. She has 20 years of experience, including seven with the bank. Cox earned her bachelor’s degree from Ashford University and has obtained the certified community bank internal auditor (CCBIA) and certified community bank compliance officer (CCBCO) professional designations. Chris Head has been promoted from senior vice president, retail banking manager to executive vice president, chief retail banking officer. Jeff Kniese has joined the bank as first vice president, business development officer with 36 years of banking experience. He has served on numerous boards over the years, including the Evansville Museum; Evansville Chamber of Commerce; YMCA of Southwest Indiana Downtown and YMCA Dunigan; WNIN, Evansville’s PBS and NPR member station; Junior Achievement of Southwest Indiana; and the Evansville City Council, among others. Kniese earned bachelor’s degrees from Western Kentucky University and the University of Southern Indiana and graduated from the ABA National Banking School. DEPARTMENT 20 HOOSIERBANKER
Austin Edge has been promoted from assistant vice president, eBanking services officer to vice president, eBanking services officer. He has been with the bank since joining the industry nearly four years ago. Edge earned a bachelor’s degree from the University of Southern Indiana and the accredited ACH professional (AAP) designation. Adam Quiroz has been promoted from assistant vice president, deposit operations support & fraud officer to vice president, deposit operations support & fraud officer. Beth Ramsey has been promoted from vice president, loan servicing assistant manager to vice president, loan servicing manager. Lynn Vincent has been promoted from human resources generalist to assistant vice president, human resources generalist. She has been with the bank for two years. Vincent volunteers with the Boys and Girls Club, Meals on Wheels, the Autism Awareness Association and her local Parent Teacher Association. She has certifications in medical billing and coding, graphic design, medication management, crisis prevention and case management. FIRST FEDERAL SAVINGS BANK / HUNTINGTON Travis A. Penrod has joined the bank as senior vice president, chief financial officer. He has more than 18 years of financial services experience, including 10 years as a CFO. Penrod volunteers in the New Life Food Ministry of St. Paul’s County Line Church and coaches basketball for the YMCA’s Kim League, Junior Vikes Boys Basketball and Andrews Elementary. He earned a bachelor’s and master’s degree from Manchester College and holds a certified public accountant license in Indiana. FIRST FINANCIAL BANK, NA / TERRE HAUTE Norman D. Lowery has been promoted to president and CEO of the bank, effective Jan. 1, 2024. He takes over from his father, Norman L. Lowery. Norman D. has been with the bank for 33 years, most recently serving as senior vice president, chief operating officer. GBC BANK / GREENFIELD Justin R. Proctor has joined the bank as senior vice president, chief operating officer. He has five years of banking experience plus six years of bank consulting with IBA associate member BKD CPAs & Advisors, now known as FORVIS, in Indianapolis. Proctor earned both a bachelor’s and master’s degree from Ball State University. He also obtained a CFIRS (certified fiduciary & investment risk specialist) professional designation after completing a three-year course program and is currently attending the Graduate School of Banking in Madison, Wisconsin. BancMac provides correspondent and wholesale lending and is your Community Bank Mortgage Partner to help your financial institution originate fixed-rate secondary market loans including: PROGRAMS • Conventional Loans • USDA Rural Development Loans • Rural Living (Hobby Farm) Loans • VA Loans • Jumbo Loans • FHA Loans OUR PARTNERS RECEIVE: • Superior Service & Competitive Pricing • No Minimum Volumes • Significant, Non-Interest Fee Income • Non-Solicit Protections & More BANCMAC COMMUNITY BANC MORTGAGE CORP. YOUR COMMUNITY BANK MORTGAGE PARTNER bancmac.com mortgages@bancmac.com 888.821.7729 | NMLS# 571147 JANUARY/FEBRUARY2024 21
HORIZON BANK / MICHIGAN CITY (Not pictured) Joel Mikolich has joined the bank as president of its new equipment finance division. He has more than 20 years of experience in banking and equipment finance. Mikolich earned his bachelor’s degree from Concordia University – St. Paul. Tammy Kerr has been promoted to senior vice president, director of Treasury management. She has been with the bank since 2016 and has more than two decades of experience overall including Treasury management, business development and training. LAKE CITY BANK / WARSAW Eric J. Frappier has been promoted to vice president, senior investment representative. He has been with the bank for almost two years. Frappier earned his bachelor’s degree from Purdue University. He also holds the AAMS (accredited asset management specialist) professional designation, Series 7 and Series 66 registrations, as well as the Indiana Life and Health Insurance license. Meghan C. Marrello has joined the bank as vice president, commercial banking officer. She has more than 25 years of financial services experience. Marrello is on the board of the International Talent Academy, a member of the National Association of Women Business Owners, and volunteers for Junior Achievement, JA BizTown, the Indiana State University Alumni Association, WYSI Girls Travel Softball and her church. She earned her bachelor’s degree from Indiana State University and is a member of the Dean’s Executive Council at ISU’s Scott College of Business. Leslie R. Rutherford has been promoted to vice president, deposit operations & document services manager. She has been with the bank for 12 years. Rutherford volunteers with the bank’s Reality Store. She earned her bachelor’s degree from Indiana Tech. BANKERS ON THE MOVE, CONT. Jordan D. Smith has been promoted to assistant vice president, commercial portfolio management officer. He has been with the bank for three years. Smith is a member of the Chartered Financial Analyst (CFA) Society of Indianapolis and the Urban Land Institute, and he volunteers with College Park Church. He earned his bachelor’s degree from Western Governors University and a master’s degree from the University of Iowa. Branden P. Wildey has been promoted to credit administration officer. He has been with the bank for three years. Wildey volunteers with Junior Achievement, the United Way Day of Caring for Allen County and teaches MoneySmart classes at Lutheran Social Services of Indiana. He earned his bachelor’s degree from Indiana University – Purdue University Fort Wayne. Ashley N. Brewer has been promoted to licensed sales assistant. She has been with the bank for eight years and volunteers with Junior Achievement. Brewer studied at Indiana University – Purdue University Fort Wayne. She also holds the FINRA (Financial Industry Regulatory Authority) licenses 7 and 66. NORTHWEST BANK / WARREN, PA Brittany Howey has joined the bank as office manager in Marion. She has more than 10 years of experience in banking plus additional experience in the nonprofit sector, where she served as executive director for an affordable housing agency. Howey volunteers with many community organizations, including Thriving Grant County, The Community Foundation of Grant County, Rotary Club of Grant County and Greater Grant County. 22 HOOSIERBANKER
T Bridging THE GAP THE IMPORTANCE OF THE SHORT SESSION BY DAX DENTON & ROSS TEARE, INDIANA BANKERS ASSOCIATION The Indiana General Assembly’s 2024 session will be brisk, likely bordering on frantic at times. This year, the Legislature is engaged in what is affectionately known as a “short session,” a characteristic of even calendar years. Indiana operates on a biennial budget system, meaning that during odd years, fiscal leaders meticulously craft a comprehensive two-year operating budget. In these budget years, the legislative calendar unfolds over nearly four months, with a deadline set for the end of April to finalize all legislative activities. Before 1970, these budget years were the only times the General Assembly convened. There were no “short sessions” in even-numbered years. This meant that if an issue surfaced after the legislature adjourned, Hoosiers had to wait nearly two years before lawmakers could address the matter. Lawmakers addressed the predicament by voting in 1970 to create a session for the “off years.” This session was specifically designed to tackle unresolved issues lingering from the budget session or “long session.” The term “short session” is aptly coined, given the compressed twomonth timeframe in which the General Assembly has to accomplish a myriad of legislative activities. This year’s short session adheres to this pattern, commencing Jan. 8 and concluding — or adjourning “sine die” — March 14, with a concerted effort to wrap up proceedings even earlier than that nine-week timetable. The intensity of a short session is highlighted by the limited three-week window lawmakers have to advance bills through the committee process. GR SUMMIT Following the eventful 2023 “long session,” the Speaker of the House dubbed this year’s short session a “transition session.” Having made significant strides in healthcare, housing and education last year, the General Assembly aims to allow those laws to mature and evaluate their effectiveness. Consequently, this session is anticipated to involve incremental changes to existing policies. This year, education will take center stage, primarily focusing on reading proficiency. The Speaker aspires for Indiana to lead the nation in student proficiency by 2027.* Additionally, workforce discussions will build on last year’s House Enrolled Act 1002, particularly regarding work-based learning initiatives. From the IBA perspective, the GR team is aware of several issues that will generate concern depending on how they are drafted, and will generally be on the defense against problematic legislation. This year, the IBA team will attempt to address the issues with several recent Indiana Supreme Court rulings and will focus more broadly on tort reform for the industry. Fortunately, the short session provides a timely opportunity to address these critical issues. Many stakeholders agree that having an annual opportunity for legislative action is vital to ensuring the formulation of sound public policy. * The 2023 National Assessment of Educational Progress ranked Indiana’s 4th graders and 8th graders slightly above the national average for reading proficiency. The NAEP is conducted every year by a division of the U.S. Department of Education. The 2023 NAEP showed Indiana’s score dropped slightly compared to their performance in 2019, which may be attributed to learning loss stemming from the COVID-19 pandemic. Dax Denton Chief Policy Officer Indiana Bankers Association DDenton@indiana.bank Dax joined the IBA in 2008 and, as of April 2023, also serves as executive director for the Indiana Mortgage Bankers Association. Away from the office, he serves on the Boy Scouts Crossroads of America Council Board. Dax graduated from Indiana University, the IBA Leadership Development Program and the Graduate School of Banking at the University of Wisconsin. Ross Teare Vice President – Government Relations Indiana Bankers Association RTeare@indiana.bank Ross joined the IBA in October 2021. He analyzes issues, reviews legislation, builds relationships with policymakers and enhances IBA’s grassroots advocacy. Ross also heads up the IBA’s BankLEAD internship program and efforts to grow banking programs at Indiana colleges. He graduated from Butler University and the IBA Leadership Development Program. JANUARY/FEBRUARY2024 23
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