NOVEMBER/DECEMBER 2024 THE OFFICIAL PUBLICATION OF THE INDIANA BANKERS ASSOCIATION Jeff Thompson A LEGACY OF PUBLIC SERVICE Rep.
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Sample Municipal Summary 03/31/2017 Page 1 of 2 635,461 GO+REV 9,896,680 GO 4,752,978 REV GO 64.7% REV 31.1% GO+REV 4.2% Total: 100.0% Municipal Type 689,324 TX PSF 10,199,393 AA 4,180,764 A 215,638 NR TX PSF 4.5% AA 66.7% A 27.4% NR 1.4% Total: 100.0% Moody/S&P Composite Rating AL CA CO IAIL IN KY NM OH OK TX WA WI AL 1.9% CA 2.3% CO 1.4% IA 3.9% IL 10.8% IN 10.2% KY 2.4% NM 1.7% OH 8.0% OK 9.9% TX 33.2% WA 4.7% WI 9.6% Total: 100.0% State of Issue Individual Municipal Ratings are as of 3/19/2017, unless recently purchased. weighting based on Book Value of 15,285,119 Insd-AGM Insd-BAM Insd-PSFG Insd-PSFG, Pre-ReFunded Insd-State Aid Not Insured Not Insured, Pre-ReFunded Insd-AGM 12.0% Insd-BAM 3.4% Insd-PSFG 3.1% Insd-PSFG, Pre-ReFunded 1.4% Insd-State Aid 11.9% Not Insured 58.2% Not Insured, Pre-ReFunded 10.0% Total: 100.0% Insurance 4/13/2017 6:43:55AM - FSG / SAMP The Baker Group Software Solutions, Inc. - APMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. ADVANCED PORTFOLIO MONITORTM 18 18 Sample Cusip Par Cpn Book Price Market Price Gn/(Ls) *Acctg Eff Dur Eff Cnvx Underlying Municipal Credit Detail 03/31/2017 Yield Description Page 6 of 7 Muni Insurer Muni Type Moody S&P Call Date Maturity ASC 320 Gn/(Ls)% State Underlying Ratings GO | REV *DA% | DC *Per Cap | Covnt Issue Date Tax Status Overlapping D/A - Debt/Pop Net Asset Ending Beginning Cnty Jobless Security Fiscal Year Report Date *Proj 944431BL8 220,000 5.500 103.90 105.18 2,816 4.34 4.39 (0.98) WAYNE SD #112-B-BABS IL 26 Not Insured N/A N/A GO N/A A+ 12/01/20 12/01/26 AFS 1.23 IL 5.58 | -- 507 | -- 12/08/10 Taxable 8.29 - 754 WAYNE - 8% 2016 Report AD VAL TAXES 2015 4.34 3 Items 4.19 4.19 3.91 (0.30) (458) 103.36 103.40 5.311 1,160,000 Taxable Municipal Totals 39 Items Portfolio Totals 3.25 3.25 3.91 (0.26) 3.392 104.59 101.78 (409,651) 14,615,000 6,385K AA 6,918K A 1,981K NR AA 41.8% A 45.3% NR 13.0% T otal: 100.0% Moody/S&P Composite Underlying Rating 1,471K Aa2 213K Aa3 1,533K A1 768K A3 11,299K N/A Aa2 9.6% Aa3 1.4% A1 10.0% A3 5.0% N/A 73.9% T otal: 100.0% Moody's Underlying Rating 695K A+ 635K A 232K A13,723K N/A A+ 4.5% A 4.2% A- 1.5% N/A 89.8% T otal: 100.0% S&P Underlying Rating 689K AAA 10,415K AA 4,181K A AAA 4.5% AA 68.1% A 27.4% T otal: 100.0% Moody/S&P Composite Rating weighting based on Book Value of 15,285,118 * Denotes Tax Equivalent Yield (TEY) where applicable. Individual Municipal Ratings are as of 2/28/2017, unless recently purchased. * D/A% = Debt to Assesed Ratio; DC = Debt Coverage | Per Cap = Per Captia Debt; Covnt = Rate Covenant 4/13/2017 6:43:56AM - FSG / SAMP The Baker Group Software Solutions, Inc. - APMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. ADVANCED PORTFOLIO MONITORTM 26 26 Balances ($000's) Page 1 of 1 12/31/2019 Book Value % of Book TA **Rate Sensitive < 1 Year *Book Yield/ Rate *Reinv. Rate *12 Mo. Proj. Yield/Rate Avg. Life Effective Duration Effective Convexity Full Indx. Rate / Total is % of Segment Fixed Var. Non Int. Summary ALCO - Asset/Liability Mix Sample $20,414 4.16 46.55 53.45 46.55 0.97 0.04 0.01 0.00 Cash & Due 0.97 0.97 / 0.97 $172,210 35.10 100.65 (0.65) 14.56 2.81 4.60 3.55 (0.51) Investments j 2.81 2.64 / 0.00 (Includes MTM) $4,500 0.92 100.00 100.00 1.63 0.04 0.04 0.00 Funds Sold 2.13 2.13 / 2.13 $276,700 56.39 56.28 45.26 (1.53) 53.28 5.20 2.59 1.96 (0.22) Loans 5.37 5.47 / 5.76 $6,511 1.33 100.00 2.49 12.63 0.00 0.00 Other Earning 2.49 2.49 / 0.00 $10,358 2.11 100.00 Non-Earning $490,693 3.24 Total 68.38 28.37 100.00 38.01 4.17 3.27 2.36 (0.31) Assets 4.28 4.28 / 5.31 $276,064 56.26 66.70 33.30 12.02 0.53 7.66 4.48 0.54 Non-Maturing Deposits 0.53 0.53 / 0.53 $92,498 18.85 99.44 0.56 0.00 82.54 0.84 0.70 0.65 (0.04) Certificates of Deposit 0.84 0.81 / 0.70 $37,721 7.69 100.00 68.68 1.09 0.97 0.93 (0.02) Jumbo CDs 1.08 1.05 / 0.00 $28,250 5.76 95.58 4.42 46.90 2.06 1.95 1.89 0.03 Borrowed Funds 2.04 1.86 / 1.88 Other Paying $6,724 1.37 100.00 Non-Paying $441,257 22.36 Total 35.51 42.13 89.93 33.70 0.80 5.15 3.14 0.33 Liabilities 0.80 0.77 / 0.54 10.07 $49,436 (0.60) (0.46) Total Equity Capital 100.00 $490,693 Total Liab & Capital Liability Mix Asset Mix Liquidity Ratios Constant Benchmark ALCO Dependency Ratio Liquid Assets / TA Ratio is outside benchmark. P < 750.00% < 100.00% < 50.00% < 20.00% > 10.00% < 35.00% < 300.00% 42.39 68.11 559.71 48.04 6.31 10.19 7.69 Loans / Assets 56.39 Investments / Deposits Loans / Deposits Loans / Capital Net Borrowed Funds / Capital < 75.00% Available Line of Credit $90,500 56.39 Loan 35.10 Inv 4.16 Cash 2.11 Non-Earn 1.33 Other Earn 0.92 Others 56.26 NMD 18.85 CDs 10.07 Equity 7.69 J CDs 5.76 Borrow 1.37 Others Reliance on Wholesale Funding 9.14 < 30.00% The smallest 2% of all categories will be grouped into an 'Others' category. Jumbo CDs / TA Note: Values are rounded before printing, but full precision values are used in all calculations. * Yields/Rates are reported on EA & PL. Investments using Accounting yield. j (Ver 4.0 R7) Copyrighted 1994 - 2020 1/29/2020 3:39:46PM - SAMPLE / SMB1218 The Baker Group Software Solutions, Inc. - IRRMTM Although the information in this report has been obtained from sources believed to be reliable, its accuracy cannot be guaranteed. 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DIRECTORS, STAFF AND CREDITS IBA BOARD OF DIRECTORS OFFICERS Benjamin J. Bochnowski, Chairman...................... Peoples Bank, Munster Matthew W. Howrey, FirstViceChairman.................. North Salem State Bank David M. Findlay, SecondViceChairman. . . . . . . . . . . . . . . . . . Lake City Bank, Warsaw Jamie R. Shinabarger, Immediate Past Chairman . . Springs Valley Bank & Trust Company, Jasper Amber R. Van Til, PresidentandCEO.................. Indiana Bankers Association CONSTITUENT DIRECTORS Garry D. Kleer, ABAMembershipCouncil.. . . . . . . . . . . . . . . . . . . . First Bank Richmond Kent A. Liechty, ICBAStateDirector......................... 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, NorthRegion................... Citizens State Bank, New Castle Bradley J. Monts, NorthRegion. . . . . . . . . . Hoosier Heartland State Bank, Crawfordsville Jacqueline M. Ruge-Perkins, NorthRegion................ First State Bank of Porter Lisa Arnold, SouthRegion............................ Home Bank, Martinsville Mark E. Bruin, SouthRegion.................... The National Bank of Indianapolis Eric J. Lane, SouthRegion................ 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 .................................. OldNationalBank,Evansville Brock C. Goggins ............................ GermanAmericanBank,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 ...................................... PresidentandCEO Rod Lasley ....................................... ChiefOperatingOfficer Dax Denton ......................................... ChiefPolicyOfficer Christina M. Bennett, CMP . . . . . . . . . . . . . . . . . . . . VicePresident–Meetings&Events Evan Hoffmeyer ............................ VicePresident–Communications Josh Myers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VicePresident–MemberEngagement Laurie A. Rees . . . . . . . . . . . . . . . . . . . . . . . . . . . . VicePresident–Education&Training Ross Teare . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VicePresident–GovernmentRelations Emily Brooks ......................................DigitalMediaManager Maria L. Dowers . . . . . . . . . . . . . . . . . . . Executive & Government Relations Coordinator Susan Clark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Events&Products/ServicesAssistant Elizabeth DeHaven ....................................EducationManager Timothy Fry ...........................................StaffAccountant Tracy Kubly ........................................TechnologyManager Silvia Regalado ....................................AdministrativeAssistant 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. indiana.bank Vol. 108 No. 6 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 NOVEMBER/DECEMBER 2024 3
30 Back Testing What’s the Big Deal? By Luke Mikles, The Baker Group 26 Redlining and Fair Lending Regulations By Brett J. Ashton, Krieg DeVault LLP 22 Being a Voice for Hoosier Bankers 2024 IBA Annual Washington Trip By Dax Denton & Ross Teare, Indiana Bankers Association 10 Rep. Jeff Thompson A LEGACY OF PUBLIC SERVICE 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 8 2024-2025 IBA Education Calendar COVER STORY 10 Rep. J eff Thompson A Legacy of Public Service 16 Defend the Dual Banking System By Robert S. Nichols, American Bankers Association 18 Leveling the Playing Field By Rebeca Romero Rainey, Independent Community Bankers of America 21 Centennial Celebration 38 Empowering Leadership in Banking 2024 Annual Convention Recap By Christina M. Bennett, Indiana Bankers Association 52 Partnership Financing Lending a Helping Hand 28 42 Departments 6 Don’t Miss Out 13 From the Board Room 20 Honorable Mentions 21 Banking on Community 24 Banking Center News 25 Anniversary Milestones 32 Bankers on the Move 48 Associate Members’ Corner 53 Mergers & Acquisitions 53 IBA Staff Milestones 54 IBA ‘High Five’ Awards 55 Taking It Easy 55 Advertiser Index Articles HUMAN RESOURCES 12 Regulatory Scrutiny of Confidentiality Agreements The CFPB’s Recent Warning By Debra A. Mastrian, Amundsen Davis LLC GR SUMMIT 22 Being a Voice for Hoosier Bankers 2024 IBA Annual Washington Trip By Dax Denton & Ross Teare, Indiana Bankers Association COMPLIANCE CONNECTION 26 Redlining and Fair Lending Regulations By Brett J. Ashton, Krieg DeVault LLP BANKER PROFILE 28 Melissa Fisher Senior Vice President, Chief Operations Officer – Home Bank, Martinsville DIRECTORS & SENIOR MANAGEMENT 30 Back Testing What’s the Big Deal? By Luke Mikles, The Baker Group 42 Planning Ahead The Critical Role of Strategic Planning By Fabio Biasella, Engage fi PSP SHOWCASE 44 PSP Year-End Summary 2024 Addressing Your Service Provider Needs By Rod Lasley, Indiana Bankers Association NOVEMBER/DECEMBER 2024 5 INTERACT WITH IBA
A Amber R. Van Til President and CEO Indiana Bankers Association AVanTil@indiana.bank 1 Midwest Agricultural Banking School Dec. 2-5 Learn the latest about ag credit and finance at Purdue University. 2 Indiana Economic Outlook Luncheon Dec. 6 Learn about what to expect in Indiana’s economic landscape for 2025. 3 Internal Bank Audit School Dec. 10-11 Receive detailed guidance over current regulatory hot topics such as how to audit the lending function, mortgage banking functions, CECL and more. DON’T MISS OUT Vantage VIEWPOINT BY AMBER R. VAN TIL, INDIANA BANKERS ASSOCIATION As the daughter of two bankers, it’s my honor to serve the banking industry, and my great joy to be surrounded by a great team who is just as passionate. What is truly exceptional is when I get to see bankers come together to make each other better and move the industry forward. Our Annual Convention this year in September saw bankers come together to tackle some of the biggest issues of the day, from attracting top talent to protecting your voice from AI cloning, plus presentations from our own bankers, including a panel on digital innovation and an Industry Leader Session from our own Lucas White as chair of the Independent Community Bankers of America. As always, we also made sure to have some fun, including our inaugural pickleball tournament! Read more about this year’s event on page 38 of this issue. Lucas and other regulars – plus several new faces – joined us for the Annual IBA Washington Trip later that month. We were especially excited to celebrate a 10% increase in bank participation this year. Offering direct contact with Indiana’s D.C. delegation and federal regulators, this was an invaluable example of grassroots advocacy. Special thanks to Maria Dowers, the IBA’s executive and government relations coordinator, for handling all the logistics for this complex trip and making it seem so effortless. Dax Denton and Ross Teare detail what progress we made on this year’s trip on page 22. As you read this, we’ll have just wrapped up the Banking on Women Conference. This conference has continued to exceed all expectations and even our wildest hopes year after year, becoming one of the most popular events we put on each year. It grew so fast that we sold out a month in advance last year, prompting us to move to a larger venue at the Embassy Suites Noblesville this year. We’ll have a full recap, including profiles on our extraordinary Woman of the Year and Woman on the Rise, in the January/February issue of Hoosier Banker. We are in the process of hiring an executive leader to head up the Financial Services Academy, the Association’s new statewide high school apprenticeship program targeted to launch with the 2025-26 school year. We’ve received commitments from dozens of member banks to host apprentices in the first three years. If you would like to participate, it’s not too late to join in. Reach out to me at the IBA offices and we’ll get you any information you need. It’s not an exaggeration to say this program has the potential to make a generational impact on Indiana’s banking industry and seeing so many of our members come together to lay that foundation is inspiring. One of our values statements at the Association is that we “remain mindful that the success of the IBA is judged by the success of its members.” More than the revenue generated, we measure that success by the number of banks that participate and bankers who derive value from the programming and resources we provide. You are the reason why we do what we do – and it’s an honor to continue growing this generation of bankers and preparing the next. 6 HOOSIERBANKER
A Chairman’s REPORT BY BENJAMIN J. BOCHNOWSKI, INDIANA BANKERS ASSOCIATION As my year as your chairman comes to a close and I reflect back on my journey in our industry, the importance of preparing the next generation for leadership is what stands out most. My own journey began with the Future Leadership Division of the IBA, and that experience has shaped my career. We all walk an easier path thanks to the road that was paved by leaders who have come before us, and those who are at the helm are preparing the next generation today. The future of the Indiana banking community relies not only on the leadership we have today but also on our collective efforts to mentor, develop and prepare leaders for tomorrow. These efforts extend from seasoned bankers taking a step into leadership to newly minted bankers and, starting next year, high school apprentices through the IBA’s new statewide program scheduled to launch in the 2025-26 school year. The Association is hiring an executive director and support staff to drive this new program, which we’re calling the Financial Services Academy. That includes the creation of the in-bank curriculum students will study to equip them with the fundamentals of banking. If you are interested in signing up your bank but haven’t done so yet, it’s not too late. Just reach out to Amber and let her know. I want to extend a heartfelt thank you to those who have supported me in my year as chair: my wife, Emma; my parents, for their support and for showing me what it means to be a good banker and a good person; and my colleagues at Peoples Bank, whose leadership and dedication are the real key to our success. This opportunity wouldn’t be possible without them, and any accolades are rightfully theirs. I also send along my congratulations to Lucas White, who is only midway through his time as chair of the Independent Community Bankers of America. He has already done incredible work, and I know he will continue to make all of us proud as he takes the message of community bank values to Washington, D.C. Time flies as chairman of the IBA – I can’t imagine what it’s like chairing the ICBA! As I pass the gavel to Matt Howrey, I am confident that the IBA will continue to grow and thrive, driven by the leadership of both current and future generations. Together, we will navigate the challenges ahead, embrace innovation and ensure the continued success of Indiana’s banking community. Benjamin J. Bochnowski Chairman Indiana Bankers Association CEO Peoples Bank, Munster Ben is the CEO of Peoples Bank, Munster, 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. The Association sent more than 80 bankers, vendors and supporters to D.C. for the IBA’s Annual Washington Trip, Sept. 23-25, 2024. NOVEMBER/DECEMBER 2024 7
2024-2025 IBA EDUCATION CALENDAR EDUCATION CALENDAR DECEMBER Midwest Agricultural Banking School Dec. 2-5: Purdue University, West Lafayette Treasury Management Forum Dec. 3: IBA Center Lending Compliance Update Dec. 4: IBA Center & Virtual Ag Clinic Dec. 5: Purdue University, West Lafayette Economic Outlook Luncheon Dec. 6: Ritz Charles, Carmel Advanced Commercial Lending School Dec. 10-11: IBA Center Internal Bank Audit School Dec. 10-11: IBA Center Loan Operations Manager Forum Dec. 12: IBA Center JANUARY Retail Management Series – Part 1: Essentials of Leading a High-Performing Team Jan. 15: IBA Center Financial Statement Analysis and Cash Flow Analysis Bootcamp Jan. 15-16: IBA Center & Virtual Senior Retail Banking Officer Forum Jan. 16: IBA Center BSA Officer Forum – Group 1 Jan. 22: IBA Center BSA Officer Forum – Group 2 Jan. 23: IBA Center Essentials of Banking – Part 1: Money, Banking and My Career Jan. 23: Virtual Women’s CEO Retreat Jan. 27-29: Fort Myers, Fla. Physical Security Officer Forum Jan. 28: IBA Center Compliance Officer Forum Jan. 28: IBA Center FEBRUARY Legislative Briefing & Reception Feb. 4: Hyatt Regency, Indianapolis Call Report Update Feb. 4: IBA Center & Virtual BSA Graduate School Feb. 4-5: Virtual Senior Lender Forum – Group 1 Feb. 5: IBA Center Senior Lender Forum – Group 2 Feb. 6: IBA Center Community Bankers for Compliance – Session 1 Feb. 11: IBA Center & Virtual Advanced Credit Analyst School Feb. 12-13: IBA Center & Virtual CFO Forum – Group 1 Feb. 13: IBA Center CFO Forum – Group 2 Feb. 14: IBA Center IRA Basics Feb. 19: IBA Center & Virtual IRA Intermediate Feb. 20: IBA Center & Virtual Essentials of Banking – Part 2: Banking History, Regulators and Risk Management Feb. 20: Virtual Chief Operations Officer Forum Feb. 21: IBA Center Indiana Small Business Lenders Symposium Feb. 27: Ritz Charles, Carmel See all education opportunities at indiana.bank/calendar. 8 HOOSIERBANKER
CONGRATULATIONS 2024 GRADUATES FROM IBA MEMBER BANKS We congratulate you on completing the rigorous 25-month program and joining the more than 23,000 alumni who have gone on to leadership positions in their organizations, associations and the financial services industry. Best wishes for continued success! Educating Professionals, Creating Leaders GSB.ORG Kevin Campbell FCN Bank, National Association Brookville Grayson Fenwick Horizon Bank Indianapolis Adam Fusselman The Bippus State Bank Huntington James Neff First State Bank of Middlebury Middlebury Emily Overlander Security Federal Savings Bank Logansport Justin Proctor Greenfield Banking Company Greenfield Danielle Shaw The Bippus State Bank Huntington Elizabeth Siebert FCN Bank, National Association Brookville Brian Smith Springs Valley Bank & Trust Company Jasper Adam Walters The Fountain Trust Company Lafayette Sponsored by:
Rep. Jeff Thompson A LEGACY OF PUBLIC SERVICE COVER STORY TThe Indiana General Assembly is gearing up for another “long session.” Those are the sessions in odd-numbered years that traditionally run a full four months from the first week of January through the end of April. That gives lawmakers some extra time to consider the state’s biennial budget in addition to their normal legislative business. Indiana’s banking community is fortunate to have several lawmakers in both the House and Senate with direct banking backgrounds and/or experience serving on bank boards, giving them better insight into how the laws they consider will impact not only Hoosier bankers but the communities we serve. One of those lawmakers is Rep. Jeff Thompson, a Republican serving portions of Boone, Hendricks and Montgomery counties in central Indiana. Rep. Thompson was gracious enough to take the time to answer some questions for Hoosier Banker about his experience in the Indiana House of Representatives and how bankers can take part in advocacy engagement. Why did you choose to enter public service? I grew up in a family where it was kind of what everybody did. My dad was of course involved in public service. Both of my grandfathers were. My mother and my grandmothers were also involved. It’s just a way of life in my family. What would you like for bankers to understand about the legislative process? It is a process that, from the outside, appears to be confusing. But there’s a purpose in it. And it’s messy at times, but in the end, I think we get good results. For bankers interested in increasing their advocacy engagement, what advice would you offer? Get to know your state representative. It’s that simple. As a member of the board for North Salem State Bank, you are well acquainted with the Indiana banking community. How do you see the state’s banking industry moving through the next few years? I think things are very positive for the banking industry. We’re a growing state and there will be lots of needs as development occurs, so I’m extremely optimistic for the banking industry. You are following in your father’s footsteps in many ways, including careers as educators, how he also served on the board of North Salem and was a state lawmaker in the Senate. What are some of your favorite lessons – professional or personal – that you learned from him? Treat other people with respect, regardless of their views on topics. Keep your word. And don’t give up. Sometimes things don’t happen overnight. It takes time for people to come to the same spot you’re on with issues. You hold an extraordinarily significant role as chairman of the House Ways and Means Committee. What are your key priorities or areas of focus as we head into the 2025 budget session? I want to have a structurally balanced state budget and look at local government finance reform. You were first elected to the Indiana House in 1998. What is one of the accomplishments you are most proud of from the past 25 years? In 2011, we went from funding school corporations to funding students. 10 HOOSIERBANKER
Tell us a bit about your home life and favorite hobbies/pastimes. I love to garden and maintain three of them. I also love to exercise and spend time with my six children and their families, which includes four grandkids and one on the way. Rep. Thompson engages in debate on the floor of the Indiana House on Feb. 23, 2023. Rep. Jeff Thompson, R-Lizton, listens to a presentation on the floor of the Indiana House of Representatives on Feb. 21, 2023. Rep. Thompson talks with Rep. Cherrish Pryor, D-Indianapolis, floor leader for the House Democratic Caucus and fellow member of the Ways and Means Committee, on Feb. 20, 2023. 11 NOVEMBER/DECEMBER 2024
O Regulatory Scrutiny of CONFIDENTIALITY AGREEMENTS THE CFPB’S RECENT WARNING BY DEBRA A. MASTRIAN, AMUNDSEN DAVIS LLC On July 24, the Consumer Financial Protection Bureau published Circular 2024-04, warning employers that forcing employees to sign broad confidentiality or nondisclosure agreements may violate the whistleblower protections of the Consumer Financial Protection Act of 2010. In doing so, the CFPB joins a host of other federal agencies, including the U.S. Securities Exchange and Commission and Commodity Futures Trading Commission, that have expressed similar concerns and brought enforcement actions against employers for violating whistleblower protections afforded under federal laws and regulations. Myriad laws protect whistleblowers and provide incentives for employees to report suspected wrongful conduct. In the consumer finance arena, the CFPA provides incentives for certain whistleblower activity and protects whistleblowers from retaliation for reporting suspected violations of consumer financial laws, either internally or externally, to a government agency such as the CFPB. Specifically, Section 1057 of the CFPA provides that covered persons and service providers are prohibited from retaliating against an employee for providing or attempting to provide information to the CFPB or other government authorities or law enforcement agencies regarding a suspected violation of any law subject to the CFPB’s jurisdiction.1 In the recent circular, the CFPB acknowledged that employers may have legitimate reasons for requiring employees to sign confidentiality agreements, such as protecting trade secrets or other proprietary information. However, confidentiality agreements must be worded so that an employee could not reasonably believe they are prohibited from providing information to government employees or would be sued or discriminated against for doing so. The CFPB warned that agreements that do not contain an express exception for exercising whistleblower rights are problematic. Even lawful agreements may be found unlawful if they could be interpreted as attempting to intimidate an employee. One such example given by the CFPB is requiring an employee to sign a confidentiality agreement in connection with an internal investigation or after being notified of potential misconduct. In other words, the circumstance or context within which an employee is required to sign a confidentiality agreement may matter. In addition, including a provision that threatens to sue the employee for violating the agreement could, depending upon the circumstances, be interpreted as threatening retaliation for whistleblowing. Last year, the National Labor Relations Board issued a similar warning in its McLaren McComb decision.2 The NLRB found that a confidentiality provision in a severance agreement was unlawful, in part, because it was not narrowly tailored to the employer’s non-public proprietary or trade secret information and did not make clear that the employees had the right to disclose information to Board investigators. The general counsel for the NLRB subsequently issued guidance stating that confidentiality provisions that do not prohibit employees from exercising their rights under the National Labor Relations Act or communicating with the agency, a union or other third parties “that are narrowly tailored to restrict the dissemination of proprietary or trade secret information for a period of time based on legitimate business justifications may be considered lawful.”3 HUMAN RESOURCES 12 HOOSIERBANKER
James M. Cooper joined the board of State Bank, Brownsburg, effective April 24. He has more than three decades’ experience in financial service regulation and banking industry advocacy, most recently serving as president and CEO of the Conference of State Bank Supervisors and deputy director of the Indiana Department of Financial Institutions. The SEC fined an investment firm $10 million in January for violating whistleblower protections of the Securities Exchange Act of 1934 by requiring employees to sign confidentiality and non-disclosure agreements that did not contain an express disclaimer for reporting suspected unlawful activity to the SEC. That was one of several enforcement actions the SEC brought against companies for similar conduct, including an action against a private company that resulted in a $225,000 fine even though there was no evidence that an employee had been dissuaded from reporting suspected illegal activity because of the confidentiality agreement. In June, the Commodity Futures Trading Commission settled an enforcement action against a company that addressed, among other things, the company’s employment and separation agreements that contained broad non-disclosure provisions prohibiting employees from sharing the company’s confidential information with third parties.4 The company’s agreements did not contain an exception for information provided to federal regulators or law enforcement. The CFPB’s recent circular is yet another reminder that employers should make sure the confidentiality provisions in their agreements (employment, severance, non-disclosure, etc.) are narrowly tailored to specific types of information, like proprietary information and trade secrets; have a reasonable time period; and contain a properly drafted carveout for whistleblower activity. Employers should also adopt, publish and enforce a whistleblower policy. The information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues. 1 12 U.S.C. § 5567(a). 2 The NLRB enforces the National Labor Relations Act. The NLRB has jurisdiction over most private employers, including “federal contractors.” Banks and other financial institutions that have federal deposit insurance, or are issuing or paying agents for federal savings bonds, are considered federal contractors under the NLRA. Federal Reserve Banks are excluded from the jurisdiction of the NLRB. 3 Memorandum GC-23-05 (emphasis added). 4 CFTC No. 24-08. Debra A. Mastrian Partner Amundsen Davis LLC DMastrian@AmundsenDavisLaw.com Debbie grew up watching her father practice law and seeing him help people resolve their problems inspired her to become a lawyer. With a focus on employment litigation and counseling, Debbie’s practice includes defending employers against discrimination claims, wage and hour violations, retaliation claims, unfair competition and FLSA collective actions. She also handles a wide range of business litigation matters. Amundsen Davis LLC is a Diamond Associate Member of the Indiana Bankers Association. FROM THE BOARD ROOM Beth Keeney, DrPH, has joined the board of directors for First Savings Bank, Jeffersonville. Keeney is president and CEO of LifeSpring Health Systems, which serves 11 southern Indiana counties. She also serves on the boards of the Indiana Primary Health Care Association, the Indiana Council of Community Mental Health Centers, the State of Indiana Maternal Mortality Review Committee, the Clark County Child and Infant Fatality Review Committee, and the Clark County Suicide and Overdose Fatality Review Committee. Keeney earned her bachelor’s degree and MBA from Indiana University Southeast, plus a graduate certificate in public health and a doctorate in public health from Indiana University-Purdue University Indianapolis. NOVEMBER/DECEMBER 2024 13
Honor the shining stars of banking in your community by nominating the leaders, past and present, who have helped lead your institution to excellence. For more information about the annual IBA Leaders in Banking Excellence awards and nomination process, please contact Rod Lasley at the IBA, 317-387-9380, RLasley@indiana.bank. This prestigious distinction, IBA’s highest honor, celebrates exceptional bankers throughout Indiana’s history who have left their mark in Banking Community Service Civic Involvement Please consider the current and past presidents, CEOs, directors and others who have played an integral part in the success of your institution at the local level, as well as in the Indiana banking community. 2025 class of the IBA Leaders in Banking Excellence. Now through March 30, 2025, the Indiana Bankers Association is accepting nominations for the
YOUR BRANCHES ARE AN EXTENSION OF YOU – they need to engage members, activate your brand, and consider the needs of tomorrow. Learn more about the Five Must-Dos for Branch Banking, Three Branch Models & Technology of the past/present/future, and explore Branded Environments by reading our free SmartGuide: A Guide to Retail Branch Design. SCAN THE CODE or visit designcollaborative.com/branchdesignsmartguide EVERY BRANCH MAKES A STATEMENT WHAT DOES YOURS SAY?
S Defend the DUAL BANKING SYSTEM BY ROBERT S. NICHOLS, AMERICAN BANKERS ASSOCIATION Since the time of President Lincoln, American consumers have benefited from a dual banking system, made up of both state-chartered institutions and federally chartered national banks. This system – which can trace its roots back to the U.S. Constitution – allows consumers to have more choices. It offers them a robust marketplace of banks of different sizes and business models to meet their needs. And it enables the nation’s more than 750 national banks to operate safely, soundly and efficiently across multiple jurisdictions under the supervision of the Office of the Comptroller of the Currency, while at the same time allowing state banks to serve their communities with local supervision. But this system, which has served our country well for more than 150 years, is now coming under threat, as lawmakers in both red states and blue states have begun to pass laws that will interfere with national bank operations, violate federal preemption and tread squarely on the OCC’s turf. Just look at the situation currently unfolding in Illinois, with the Interchange Fee Prohibition Act that was signed into law this summer as part of the state’s budget legislation. This misguided law bans banks, credit unions, payments networks and other entities from charging or receiving interchange fees in Illinois on taxes and tips charged as part of a credit or debit card transaction. This law – which will create unprecedented chaos and confusion for consumers and businesses if allowed to take effect – violates multiple federal statutes, including the National Bank Act and the Federal Credit Union Act, and cannot be enforced against national banks, federal savings institutions or state-chartered banks, as well as federally and state-chartered credit unions. It also runs afoul of the Electronic Fund Transfer Act, which directly addresses the permissible amount of interchange fees for debit card transactions and does not carve out taxes and gratuities. This law, a gift to corporate mega-retailers as part of a last-minute budget deal, is the first of its kind to pass in the nation. We can’t let it stand and run the risk other states follow, which is why ABA is fighting back. Together with the Illinois Bankers Association, America’s Credit Unions and the Illinois Credit Union League, we filed a lawsuit challenging the law, and we are seeking a preliminary injunction pausing implementation until the court can rule on the merits of our case. With top outside lawyers assisting us, we have confidence we will prevail in this case, sending a strong message to other states looking to follow Illinois’ lead. We’ve seen a different kind of challenge to the dual banking system in other states. Florida and Tennessee have put in place their own safety and soundness tests, encroaching on the OCC’s federal oversight of national banks. Like ABA, the OCC has taken notice. We’ve been encouraged by comments from Acting Comptroller Michael Hsu noting that his agency will continue to defend the dual banking system. The acting comptroller pointed out in recent remarks that “increasingly, banks are being asked by states to pick a side in service of performative politics rather than deliberative policy.” This simply shouldn’t be the case, and we will continue to urge the OCC to exercise its authority when states cross the line. Our dual banking system has served Americans well for decades. ABA will continue to push back against efforts to undermine that system, and we’ll keep pressure on regulators to do the same. F E ATUR E 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 16 HOOSIERBANKER
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T Leveling the PLAYING FIELD BY REBECA ROMERO RAINEY, INDEPENDENT COMMUNITY BANKERS OF AMERICA They say imitation is the greatest form of flattery, but when it comes to financial services, it doesn’t make for a fair banking environment. Just look at credit unions, trying to position themselves as “community” organizations without having to demonstrate they meet Community Reinvestment Act requirements. Or Industrial Loan Companies, with holding companies not subject to bank compliance reviews. Or the Farm Credit System, which wants to compete with community banks but doesn’t want to be regulated like them. Or mega banks that are too big to fail, ensuring we pay the price with outsized regulation. The list goes on. We need a level playing field. As outlined in our recent report, “Finding Balance: How Well-Intended Policies Hamper Small Business Lending and Undermine Relationship Banking,” the disproportionate regulatory burden created for individual community banks makes it nearly impossible to compete with those who can position their products and services free of regulatory constraints. They can avoid the heavy cost of compliance while ignoring the impact these imbalances have on our industry. At the end of the day, it’s the customer who will pay the ultimate price if unbalanced regulations are allowed to continue. They will face challenges when they can’t get an emergency loan during a pandemic, like we saw with the Paycheck Protection Program. They will struggle when their small business loan needs don’t meet standardized checkbox requirements. They will lose out when they don’t qualify for a mortgage because those same checkbox requirements apply in consumer environments. Right now, community banks step up in those situations, providing support based on the deep relationships they have in their communities. But as more and more regulations come down on us, this ability to respond may be hindered, leaving our customers and communities without fair options. That’s why community banker engagement and grassroots actions are so incredibly important. We have to speak up and demonstrate how the lack of consistent regulation creates issues. We have to deliver stories that demonstrate the egregious acts committed by non-banks acting like banks. Congress needs to hear not just that community banks think it’s an unfair playing field, but to understand the harm this imbalance places on our communities. We encourage you to raise your voice and visit ICBA’s Action Center at icba.quorum.us for resources to help. In the meantime, we have a message for our imitators: If you want to be like us, you need to up your game to play by the same rules. F E ATUR E Rebeca Romero Rainey President and CEO Independent Community Bankers of America Rebeca.RomeroRainey@ICBA.org 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, N.M. 18 HOOSIERBANKER
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
Autumn Bucy of Hendricks County Bank & Trust Company, Brownsburg, was awarded the Federal Home Loan Bank of Indianapolis’ 2024 Community Spirit Award. Each year since 2007, FHLBI has honored an employee of one Indiana member institution and one from Michigan who have shown an outstanding dedication to affordable housing and community economic development. Bucy, marketing manager for HCBT, was chosen for her passion for bettering her Brownsburg community, including the Brownsburg Youth Sports Future Fields project, which is working to build a new 60-acre youth sports facility. She forged partnerships with community stakeholders to support programs that facilitate the inclusion of children with special needs. In addition to the award, FHLBI donated $5,000 to Brownsburg Youth Sports in Bucy’s honor. Janelle Campbell, senior vice president, director of consumer banking at Community First Bank of Indiana, Kokomo, graduated from the Graduate School of Banking at Colorado. She was among 160 graduates representing 28 states honored in a ceremony on July 25. The 25-month program immerses attendees in a mix of traditional and non-traditional models of coursework on financial management and strategy, innovation and engagement, leadership and culture, and lending, all through the lens of community banking. Jacqueline M. Ruge-Perkins, president and CEO of First State Bank of Porter, has been recognized by BankBeat magazine as one of its 2024 Outstanding Women in Banking. Ruge-Perkins has been a board member for the IBA since 2022, representing small banks in the North Region, and was just re-elected to serve another term through December 2027. She volunteers with Rebuilding Together Duneland and Westchester Neighbors Food Pantry, is a current committee member and past treasurer of the Duneland Chamber of Commerce as well as treasurer and past president of the Duneland Exchange Club. As a charter member of the Duneland Exchange Club, she was instrumental in bringing Body Safety, a child abuse prevention program, to the local school corporation. Ruge-Perkins has been honored as a Duneland Distinguished Woman recipient and a finalist for the Northwest Indiana Influential Women award in the Financial Industry category. She is a graduate of Purdue University and the Graduate School of Banking at the University of Wisconsin-Madison. Six IBA-member banks and two associate members were named to TIME magazine’s inaugural list of America’s Best Midsize Companies, defined as those with $100 million - $10 billion in revenue in the most recent full year reported. Results were based on three primary dimensions: employee satisfaction, revenue growth and sustainability transparency (environmental, sustainability and governance “ESG” reporting). The list of 500 companies included: 22. Huntington National Bank, Columbus, OH 23. Regions Bank, Birmingham, AL 159. Fifth Third Bank, Cincinnati 175. Moody’s Analytics 239. Jack Henry & Associates Inc. 331. Old National Bank, Evansville 418. First Merchants Bank, Muncie 451. First Financial Bank, Cincinnati Horizon Bank, Michigan City, recognized eight of its bankers for outstanding performance in leadership and community service. Brian Balmer, vice president, district manager; Steve Hawkins, vice president, commercial loan workout officer; Karen Stemley, branch manager; and Mahendra Verma, vice president, network engineering manager; were all honored with the Beyond Ordinary Leadership Award for going beyond ordinary banking by affecting positive change for customers, the company and community, as exemplified by outstanding leadership, professionalism, collaboration, and commitment to customers. The bank also honored Krysta Loucks, operational risk specialist; Jennifer Shoup, vice president, district manager; Donna Willis, assistant vice president, branch manager; and Jennifer Wilson, assistant vice president, branch manager; with the Go Beyond Community Service Award for significantly contributing to the communities they serve through going beyond by their active volunteerism, leadership and contributions. HONORABLE MENTIONS Balmer Hawkins Stemley Verma Loucks Shoup Willis Wilson 20 HOOSIERBANKER
BANKING ON COMMUNITY Centier Bank, Merrillville, donated $10,000 to Firefly Children & Family Alliance, continuing a long-standing partnership. Firefly empowers Hoosier families through a wide range of support systems. The bank has supported the organization for several years through financial literacy education and monetary donations. Robert Gray, Firefly senior director of corporate relations (left), accepts a check from Troy Kafka, Centier Bank’s Greater Indianapolis market president, in August 2024. Centennial Celebration Among the ranks of IBA-member banks, 87 have been in operation for 100 years or longer. This year, Bath State Bank became the 88th centennial bank. The Association congratulates Bath State Bank and all our other centennial bank members that have weathered economic changes and challenges to bring strength to Indiana. Bath State Bank The bank opened its doors for business on June 24, 1924. At that time, 250 shares of stock were issued to 66 original shareholders, W.S. (Scott) DuBois served as the bank’s first president, and Cecil Whiteman served as the first cashier. The bank remains independently owned today. It was one of the few banks that remained open for business during the Great Depression. By the 1950s, it had acquired more than $1 million in assets (~$12 million in today’s dollars). The bank was a single-location operation for nearly 85 years, opening its second location in the fall of 2008 in West College Corner. A third opened in 2020 in Liberty. NOVEMBER/DECEMBER 2024 21 Michael A. Renninger Principal (317) 695-7939 mrenninger@renningerllc.com Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Road Davenport, IA, 52807 (563)326-2064 Member: FINRA, SIPC. Renninger & Associates, LLC and Ausdal Financial Partners, Inc. are independently owned and operated. www.renningerllc.com "For an ObjecƟve Assessment of Your Challenges and Professional ExecuƟon of Your OpportuniƟes" Buy-Side and Sell-side Representa�on involving whole banks, branches, and non-bank affiliates Stock Valua�ons and Fairness Opinions CPA-trained and CFO-experienced Indiana professionals serving Indiana banks. Our services include: With over three decades of serving lenders and millions of flood certificates issued, why trust just any certification provider when you could hire what many would consider the industry leader in accuracy and customer care. SINCE 1991 Craig callahan | 800.945.0246 ccallahan@floodplain.com Ask craig how to experience the Fci difference risk free and learn more about why so many lenders trust floodplain consultants. a preferred vendor of the iba
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