Illinois Banker | January - February 2020 by Illinois Bankers

The Official Publication of the Illinois Bankers Association ilbanker.com

January-February 2020

WE'VE MOVED! ALSO IN THIS ISSUE:

• IBA's Year in Review • Cybersecurity Fears • Next Generation Leadership

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January-February 2020 • Vol. 105 / No. 1 • ilbanker.com

TABLE OF CONTENTS

31 DEPARTMENTS 5 Message from the President and CEO 26 Event Highlights 31 FLA Update 33 Preferred Vendor Spotlight 35 On the Move

35 Ad Index 36 News & Notes 38 Associate Member News

19 FEATURES

6 2019 Year in Review

39 New Member Banks 39 New Associate Members 41 Events Calendar 42 The Last Page

14 IBA Springfield Office Relocation 16 Consumers Tell Us Their Cybersecurity Fears 19 Where Do We Find Safe Harbor in Times of Agricultural Uncertainty? 22 MISSION: THE ONE 24 Cultivating the Next Generation of Leadership

Our Mission: Advocacy. Education. Industry Resource...for all Illinois bankers. Our Vision: Connecting Bankers. Advancing Banking.® Our Core Values: The Illinois Bankers Association will place our members’ interests first, be responsive to their needs, and provide them with the highest level of professionalism and service. The IBA staff is the Association’s greatest asset. We will conduct ourselves with integrity and respect. We will work together as a team, share information, build upon our strengths, embrace new ideas, and recognize and celebrate accomplishments.

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

Kevin L. Olson Chairman Grundy Bank, Morris

BOARD OF DIRECTORS REGION 1

REGION 4

Clark Delanois The Northern Trust Company, Chicago

Tom Gihl INB, Springfield

Martin J. Noll Oak Park

Anthony G. Nestler Hickory Point Bank and Trust, Decatur

REGION 2

REGION 5

Rick M. Francois American Community Bank & Trust, Woodstock

T.J. Burge Community Partners Savings Bank, Salem

Betsy Johnson Forreston State Bank

Richard Knebel The Bradford National Bank, Greenville

REGION 3 Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville

C. Brant Ahrens Chairman-Elect CIBC, Chicago

Tyler Rouse First Federal Savings Bank of ChampaignUrbana

Gary S. Collins Old Second National Bank, Aurora Megan Collins Bank of America, Chicago Jeffery L. Fauver Catlin Bank

Steven F. Rosenbaum Hoyne Savings Bank, Chicago

James R. Hannon First Security Trust and Savings Bank, Elmwood Park

Pamela A. ShararStoppel Wheaton Bank and Trust Company

Joan Heggen, U.S. Bank, Chicago

Simon P. Yohanan First Bank of Highland Park, Northbrook

Christopher P. Barton Wheaton

Daniel J. Hollowed Cornerstone National Bank & Trust Company, Palatine

Dane Cleven Community Savings Bank, Chicago

James H. Huiskamp Blackhawk Bank and Trust, Milan

AT-LARGE CATEGORY

Richard J. Mahoney First Midwest Bank, Chicago

FLA Chairman Matt Wyatt Busey Bank, Edwardsville

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

Michelle L. Gross Vice Chairman State Bank of Bement

Two Offices to Serve You! Springfield Office: 800-783-2265 • Chicago Office: 800-878-2265 To connect with our staff, use this email format: firstinitiallastname@ilbanker.com Executive Administration Linda Koch, CAE, President & CEO Erich J. Bloxdorf, Executive Vice President & COO

William P. Gleason Treasurer The Leaders Bank, Oak Brook

Mary Curl, Executive Assistant & HR Manager Pam Macha, Springfield Office Coordinator Legal and Compliance Bruce Jay Baker, Executive Vice President & General Counsel

Daniel P. Daly Immediate Past Chairman SENB Bank, Moline

Linda Koch Secretary IBA President and CEO, Springfield

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• January-February 2020

Debbie Jemison, CAE, Vice President

Brian Hoffman, President

Tammy Squires, Assistant Vice President Robin Lane, Director, Associate Membership Finance and Administration Mark Bennett, CPA, CFO and Vice President

Phil Talley, Vice President, Insurance Services Casey Widholm, Marketing Manager Illinois Bankers Education Services, Inc. Callan Stapleton, President Kevin Klug, Assistant Vice President

Marie Ann South, Financial Assistant

Bob Anderson, Manager, Education Relations & IT Support

Amy Giacomucci, Law Assistant

Government Relations

Cassie Mattson, Manager, Event Management and FLA

Bank and Partner Relations

Aimee Winebaugh, Assistant Vice President;

Carly Berard, Senior Counsel

Julie Clark, Vice President

Thomas J. Chamberlain Member-at-Large Iroquois Federal Savings & Loan, Danville

Illinois Bankers Business Services, Inc.

Marcia Stratton, CPA, Director

Carolyn Settanni, Senior Vice President and Associate General Counsel

Betsy Johnson Member-at-Large Forreston State Bank

Communications/Marketing/ Associate Membership

Jeff Bowden, Senior Banking Advisor (jeff.bowden47@ comcast.net) David Barbeau, Senior Banking Advisor (dbarbeau@htc.net) Sarah Cowan, Membership and Government Relations Assistant

Ben Jackson, Vice President

Kirsten Davis-Franklin, Manager, Grassroots and PAC Sarah Cowan, Membership and Government Relations Assistant

Denise Perez, Manager, Education & Training Amy Sale, Education Assistant Illinois Bankers Group Insurance Trust Erich J. Bloxdorf, Plan Administrator Mike Mahorney, Senior Trust Advisor Hillary Meyers, Trust Manager

Editorial Offices 3201 West White Oaks Drive, Ste. 400, Springfield, IL 62704 217-789-9340 FAX 217-789-5410 www.ilbanker.com Debbie Jemison, Editor With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 3201 W. White Oaks Drive, Ste. 400, Springfield, IL 62704. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. © Copyright 2020 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGE Happy New Year! As we ring in the New Year, please enjoy this special edition of the Illinois Banker highlighting the many happenings that made 2019 so memorable. Under our exceptional board leadership and our more than 210 volunteers, the IBA is growing stronger every year, and last year was no exception. We added 12 new member banks and over 50 associates to our family of valued members, creating even more meaningful networking opportunities.

Linda Koch

IBA President and CEO

Our highly-touted member services continued to expand. Over 1,100 bankers are now accessing our exclusive online comprehensive compliance resources housed on GoToIBA.com, and well over 4,000 bankers took advantage of our exceptional line up of training programs and events. Our new Illinois Bankers Group Insurance Trust provides quality, affordable healthcare for our members, and, over the past year, our participation and member organizations were up over 6 percent. Members also were introduced to several new preferred vendors, including the IBA’s 401k plan powered by Alliance Benefit Group, and Strategic Resource Management to assist our members with their vendor contract negotiations. Needless to say, our relentless advocacy efforts in Springfield, Washington D.C. and in the City of Chicago greatly benefited our members, and, once again, we defeated dozens of harmful proposals. We topped off the year with a major victory in stopping the Secretary of State’s office from seeking to collect unsubstantiated franchise taxes and penalties from bank holding companies claiming that they had underreported their tax liability on stock certificates held out of state. As a result of our efforts, the Office restored its longstanding treatment of stock certificates held out of state and withdrew its unwarranted attempts. At the same time, your grassroots support remained critical! Through your engagement and support, we connected hundreds of bankers to lawmakers through our annual Economic Investment Day, Annual Washington Visit, and our Let’s Talk Banking events and capped off the year with more than $330,000 in PAC contributions! Helping our members attract and retain quality talent remained at the top of our priority list. BankTalentHQ has expanded its reach into 31 states and has helped facilitate job searches for thousands of financial institutions while attracting over 6,000 new job seekers from across the country. A new career outlook feature was added to the site highlighting employment and salary statistics along with the skills and abilities needed for career advancement. Just wait until you see what we have in store this year! To further build a vibrant talent pool of future leaders, our 14-month leadership development program, the Future Leaders Alliance, celebrated 23 new graduates and continues to get rave reviews from our more than 200 alumni. We also launched the Illinois Bankers Scholarship Fund, which provides scholarship funding to high school graduates and college students seeking a degree in the financial services industry. And finally, one of the year’s highlights was our Springfield office move to a new, easily accessible and professional location with a state-of-the art training Center for Banking Excellence. We can’t wait for you to see it! Remember that you can always find us on social media via Facebook, Twitter, LinkedIn and Instagram as we have connected with more than 3,000 friends and followers. We hope that you had a great 2019 and that the IBA played a small role in your success. We assure you that you play a major role in ours! As always, we thank our members, associates, partners and preferred vendors for your friendship and support!

On behalf of all of us at the Illinois Bankers Association, we wish you a prosperous, healthy and happy New Year!

January-February 2020 •

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Year in Review

ow! New members, exploding

education choices, a growing PAC and the expansion of BankTalentHQ to 31 states and territories are only a few of our many, many successes from the past year. We’re proud that your financial institution has chosen the IBA as its Association and look forward to working with you and your team well into the future!

We hope you’ll take a look at this Year in Review for a glimpse into how hard the IBA works for its members in our efforts to connect bankers, advance banking and elevate Illinois’ banking industry.

When your bank is a member, you're a member! Connect with fellow bankers, industry vendors and other experts in the financial services industry by attending events and participating on IBA committees and boards. Build important business relationships, contribute and collaborate with other committee volunteers, and exchange information and ideas, while strengthening your ties in Illinois’ banking community.

Outgoing Chairman Dan Daly places the President’s Pin on incoming Chairman Kevin Olson during the Annual Conference in Austin, Texas.

Banker of the Year, Thomas W. Hough, Carrollton Bank

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• January-February 2020

You Help Shape our Industry by Volunteering on IBA Boards and Committees

214 119 19 Board and Committee Members

Banks and Companies Represented

IBA Board and Committees

Welcome to Our New Member Banks As of 12-1-19 State Bank of Cherry The Clay City Banking Company The State Bank of Pearl City First Federal Savings Bank of Champaign-Urbana

First Savings Bank of Hegewisch First State Bank of Van Orin Brickyard Bank, Lincolnwood First National Bank of Nokomis

Flanagan State Bank Resource Bank SouthernTrust Bank FWBank (in organization)

Welcome to Our New Associate Members Abaca Ag Resource Management Alkami All Covered Finance Practice ATM Solutions Inc. AuctionTime/FleetEvaluator BeeSocial, LLC BPAS Broadbent & Associates, Inc. Chatham Financial Clearpoint Advisors, LLC Community Investment Corporation Country Banker Systems, LLC Covington & Burling LLP CRA Partners CRMNEXT, Inc. Dama Financial, Inc. Detalus

Executive Benefits Network FINPACK Funnelback Giffin Winning Cohen & Bodewes PC Holland Partners, Inc. Howell Financial Services, Inc. Integrity Technology Solutions Iron Comps by Tractor Zoom Ironcore Inc. Kaufman Hall Kerber, Eck & Braeckel LLP Kestner Insurance Michael Trokey & Company, P.C. Mike Hines & Associates Neocova Nova (a division of Tri-North Builders) Pentegra Retirement Services

PrismPremier RedRock Information Security Remedy Consulting Risk Management Association Ritchie Brothers Auctioneers Ruff, Freud, Breems & Nelson Ltd. Safe Systems Schmale Insurance Agency, Inc. Shield Compliance Strategic Resource Management Tillable Ultimate Software UMS Banking Vanguard Vantage Point Solutions WolfPAC Integrated Risk Management Wool Capital Partners, LLC

January-February 2020 •

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Congrats to This Year’s Award Winners! Banker of the Year

Centennial Award

Community Service Awards

Graduate School of Banking Human Resource Management School

Thomas W. Hough, Carrollton Bank

The Village Bank -- 100 years

Alliance Community Bank, Athens The Leaders Bank, Oak Brook Peoples Bank & Trust, Pana

Kathy Sidlinger, SENB Bank, Moline

FLA Program Scholarships

Volunteer of the Year

Janice Schramm, Hickory Point Bank & Trust, Springfield

Illinois Bankers PAC Bank of the Year Grundy Bank

Josh Wohltman, Bank of Belleville Brandon Svela, Central Bank Illinois, Geneseo Kira Lynn Pirtle, State Bank of Bement (Larry Beatty, Peoples Bank & Trust Scholarship)

Illinois Bankers PAC Legacy Awards Delaware Place Bank TheBANK of Edwardsville

High Five to Our Top 12 All-Star Sponsors

Honorary Lifetime Membership

Daniel G. Watts, Forest Park National Bank Stanley D. Jenks, Security Savings Bank

University of Wisconsin-Madison Graduate School of Banking Scholarships

TreMayne Joyner, Hickory Point Bank & Trust, Champaign Thomas Schlink, Farmers & Mechanics Bank, Peoria

University of Wisconsin Graduate School of Banking Advisory Board Scholarships Blackhawk Bank & Trust, Milan (Evan Johnson) Rochester State Bank, Rochester (Christopher Walcher)

50 Year Club

Harold Henry with Town and Country Bank Linda Funk with TheBANK of Edwardsville Sharon Knolhoff with Farmers State Bank of Hoffman Larry Beaty with Peoples Bank & Trust Mary Grace Vermillion, Philo Exchange Bank

Ascensus Bankers' Bank BOK CLA Equias Alliance/NFP Federal Home Loan Bank Chicago LKCS MIB Plante Moran RSM Verafin Wipfli

Cultivate an Engaged, Informed and Updated Staff Nearly 4,000 attendees took part in our in-person education events.

You want the best training for your staff to ensure your bank is performing, following the rules, providing the latest products and services in your community and more. IBA training provides the latest education programs for you in a number of formats, including timely topics like New Employment Law Update and Banking Marijuana Related Businesses.

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Online training continues to grow with more than 2,100 professionals choosing this costefficient option to further their careers.

NEW! Illinois Bankers

10 Flagship conferences, including The ONE and the Annual Conference, plus our new Women’s Symposium that was held in March.

• January-February 2020

Scholarship Fund provides scholarship funding to high school graduates and college students seeking a degree in the financial services industry in order to promote the development and continuation of a vibrant talent pool of future leaders in the field of banking. Amount raised to date: $25,190!

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Year in Review

Ensure the Future of Your Bank Your bank's future leaders need development

opportunities, and our alums all agree – the Future Leaders Alliance (FLA) is the best. When you invest in your staff, you create a more loyal, prepared team to serve your community.

26 State Association Partners in 31 States and Territories

10,000+ 12,500+ jobs posted

registered job seekers since inception

100,000+

visits to the website in 2019

Congratulations to our 12th FLA Class, the Class of 2019, which held its graduation ceremony during The ONE Conference.

Save up to 80% off Manufacturers Suggested List Price on a core list of 840+ frequently ordered products.

Increase Your Bottom Line IBA members enjoy buying power with our Preferred Vendors, Partners and Associate Members – 200 companies in all! Additionally, partner with an insurance agency that exclusively understands your bank’s needs. The IBA’s insurance agency serves only Illinois financial institutions, like yours, so we know banks.

Illinois Bankers Insurance Services

14 Preferred Vendors to serve your bank’s needs– selected by bankers for bankers • • • • • • • • • • • • • •

ABA Insurance Services IBA 401k powered by ABG Retirement Plan Services APPI Energy Ascensus Banker’s Dashboard BankMarketingCenter.com BankTalentHQ Deluxe Financial Services Floodplain Consultants Investors Title Keystate Captive Management Office Depot SBS CyberSecurity Strategic Resource Management (SRM)

Welcome to Our Newest Preferred Vendor

Shine a light on your insurance needs for you, your employees and your financial institution. Financial Institution Bond • No Aggregate Limit • Cyber Extortion • Kidnap/Extortion • Excess Deposit Coverage D&O Liability • Management & Professional • Securities coverage • Depositor Liability • EPLI • Fiduciary and Lender Liability • Trust E&O • Cyber Liability

Property • Blanket coverage Buildings & Contents • Broad Perils • Earthquake & Mine Subsidence Liability • Aggregate per location up to $10M • Worldwide Coverage Auto • Broad Form Endorsements • Mortgage Holders E&O • Workers Compensation Other Specialized Coverages for Banks

Get a quote. Phil Talley 217-971-3769 ptalley@ilbanker.com

Information at Your Fingertips When you need industry information,

we are the resource for you. Read about the latest industry and legislative news and compliance hot topics in our regular e-newsletters, including the Week In Review and Compliance Connection® email digest. Bookmark our state-of-the-art website at www.ilbanker.com, featuring all the IBA has to offer, and follow our social media sites for late-breaking updates.

LinkedIn illinois-bankers-association 1,793 followers

Facebook facebook.com⁄illinoisbankers 961 followers

Instagram Illinoisbankers 145 followers

Look to the IBA for Your Compliance Needs Law Department Conferences BANK COUNSEL CONFERENCE

214 attendees JUNE COMPLIANCE CONFERENCE

91 attendees

FALL COMPLIANCE CONFERENCE

58 attendees

SPRING LAW REVIEW

18 attendees

The IBA law department also presented on recent developments in Illinois banking law for groups of compliance professionals throughout the state, including annual events for the Northern Illinois Compliance Association and Central Illinois Compliance Network.

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Compliance Questions Compliance issues pose major challenges for bankers, and our IBA law department is here to help our members. In 2019 alone, we published answers to over 500 compliance questions on our IBA Compliance Connection website at GoToIBA.com, where they will join over 4,000 compliance Q&As total. Compliance Resources Well over 1,000 bankers use GoToIBA.com from 249 member institutions, where they find over 200 topic pages and over 4,000 compliance Q&As, together with articles, resources, and much more. OTHER ACCOMPLISHMENTS The IBA law department wrote a letter to the Secretary of State’s office to formally express our concerns regarding the Secretary of State’s allegations and interrogatories claiming that many Illinois bank holding companies owed substantial sums of unpaid franchise taxes from previous years. The Secretary of State’s office later issued a statement clarifying its policy, providing relief for many affected bank holding companies. The IBA law department submitted a comment letter on a major issue affecting Illinois banks — the CFPB’s

• January-February 2020

small dollar lending rule. As a follow up to our 2016 comment letter on the proposed small dollar lending rule, we requested that the CFPB adopt a loan amount threshold for the rule’s coverage or, at the very least, establish a carve-out from the rule for loans made to sophisticated, high-net-worth individuals. We provided support in negotiating two leases for the IBA’s new office space in Springfield, as well as negotiating, drafting and reviewing numerous other contracts for the IBA and its subsidiaries throughout the year.

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Year in Review

332

Bankers brought together through IBA federal and state advocacy events

Advocacy is an incremental process, but an essential task to support our industry’s future. As we often say around the IBA, “if you’re not at the table, you’re probably on the menu.” If bankers are not talking to their lawmakers, supporting campaigns, and discussing policies that help banks and their customers, our opponents will fill the void - and the results won’t be favorable. That’s why our industry must keep driving forward through political highs and lows to promote and protect banking. We know bankers are busy people, so we continually seek new methods to engage bankers and make it easy and fun to support our industry, our advocacy priorities, and our PAC. Let’s take a look at our collective efforts in 2019 in four key areas of advocacy: PAC, grassroots, industry image, and, of course, issues advocacy (lobbying). We are incredibly close to our $350,000 PAC goal: over $330,000 raised as of early December! This reflects an exceptional effort to support our PAC by bankers, associate members, IBA staff, and other allies – thank you!! We have made it easier to give by starting a new vacation raffle, hosting fun outings during our conferences, and through personal outreach by the IBA board and PAC board. Your support means we have maintained a strong PAC despite industry consolidation. Grassroots – or member-driven advocacy – constantly evolves. In 2019, we’ve rebranded our grassroots program to meet our members’ needs. We bring advocacy to you through our Let’s Talk Banking meetings and email-driven legislative calls-to-action. We’re rolling out our new Legislative Ambassador program – you’ll be hearing more about it in the coming months. Our flagship grassroots events remain vital to our mission, and attendance at the Washington Visit and Springfield Economic Investment Day remained strong in 2019. However you choose to participate, plan to get involved in grassroots advocacy in 2020! The banking industry’s image continues to lag other industries. The IBA continually works to restore our image among lawmakers, media, and the public. We have unveiled independent economic data to illustrate the importance of our industry in

Illinois’ economy. Our grassroots events have refocused on promoting a positive image. Recently, we started working with lawmakers to host an ongoing series of “economic outreach” events throughout Illinois. These events provide Illinoisans in underbanked areas with direct access to mortgage and small business lenders, providing valuable information on reaching financial goals. Finally, the IBA is increasingly active in the media through editorials, providing statements for articles, and visiting reporters and editorial boards. Issues Advocacy - Often, we lobby issues for years before seeing results. But when change occurs, it can happen quickly. We saw this with cannabis banking legislation in 2019. We have supported a safe harbor for banks to support legal cannabis businesses for four years with little progress. Suddenly in 2019, our bill was fast-tracked through the U.S. House and has a chance of passing the Senate. We saw progress in 2019 on other issues we have talked about for years. BSA-AML reform that addresses beneficial ownership issues has passed the House, and the banking agencies are making progress on a long-overdue modernization of the Community Reinvestment Act. Back in Illinois, we are effectively working with the state legislature and the governor’s office to protect our industry from overregulation. Certainly, we have experienced setbacks, such as the progressive tax increase, but we’ve also held the line on industry-specific taxes – we defeated every banking industry tax proposed by the General Assembly in 2019. Speaking of taxes, we continue to evolve our message on credit unions. We are dismayed that four Illinois community banks were bought by credit unions in 2019. It’s hard to see a silver lining in this, yet this phenomenon has breathed new life into our credit union advocacy. Tax-paying banks being absorbed by untaxed credit unions perfectly illustrates why it’s time for credit union tax reform. Advocacy is incremental – but change can happen quickly, and often when least expected. We encourage you to join our grassroots team in 2020 by supporting our PAC, attending events, and engaging with your lawmakers. Positive change for our industry won’t happen if you’re not involved!

500

Over State legislative proposals monitored or lobbied by the IBA in 2019

60 Bills and ordinances defeated or successfully negotiated

Advocacy emails delivered to bankers’ inboxes to keep them informed on legislative and regulatory developments

Connected with over legislators’ constituents through small business and financial literacy workshops in underserved areas

Still Going Strong... the Illinois Bankers Group Insurance Trust For over 50 years, the Trust has been providing financial intuitions across the State of Illinois Bankers Group Insurance Pro Illinois with quality, gram affordable health, dental, vision, life, disability, and critical 2020 illness insurance. All members of the Illinois Bankers Association have access to this important employee benefit program. With the Trust, you can access: • important employee benefits that can increase talent acquisition and retention. • coverage for employees, spouses, dependents, and retirees. • eight different health plans from the most trusted carrier in the State of Illinois. • ancillary products that add to your suite of employee benefits. • end to end COBRA and HIPPA administration. • industry experts in the Affordable Care Act, compete disclosures, and insurance industry trends. Over the past year, our participation and member organizations are up over 6%...contact us to see how you can access this important member benefit!

$334,010 raised through IBA member support 43% of member banks contributed $223,600 in contributions to federal, state, and local lawmakers who support our industry

290 Individual contributors 23 Rock Star Banks ZERO% was spent on travel, meals, or staff expense 100% of funds contributed to advocating the industry. Rock Star Banks

American Community Bank & Trust Bank & Trust Company Carrollton Bank Central Bank Illinois Cornerstone National Bank & Trust Company Farmers & Mechanics Bank Farmers & Merchants State Bank of Bushnell First National Bank of Steelville First National Bank of Waterloo First State Bank Forreston State Bank Grundy Bank Midland States Bank Murphy-Wall State Bank & Trust Company MUFG Union Bank, N.A. Philo Exchange Bank Security Savings Bank SENB Bank State Bank of Bement Stillman BancCorp NA The Leaders Bank Town and Country Bank West Town Bank & Trust

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Fair Share Banks

Busey Bank CIBC Community Bank of Elmhurst Community State Bank of Rockfalls First Mid Bank & Trust First Midwest Bank Holcomb Bank Iroquois Farmers State Bank Iroquois Federal Savings & Loan Association LincolnWay Community Lisle Savings Bank Millennium Bank NorthSide Community Bank Peoples National Bank, N.A. Republic Bank of Chicago Security National Bank The Northern Trust Company The State Bank of Geneva Washington Savings

Additional Bank Contributors

Alliance Community Bank Amalgamated Bank of Chicago

• January-February 2020

American Bank and Trust Company N.A. Associated Bank NA Bank of America Bank of Belleville Bank of Bluffs Bank of Hillsboro N.A. Bankers' Bank Beardstown Savings, sb Best Hometown Bank BMO Harris Bank N.A. Bridgeview Bank Group Catlin Bank Central Bank of St. Louis Central Savings, f.s.b. Citizens Community Bank Commerce Bank Community Bank of Oak Park River Forest Community Savings Bank Countryside Bank Dieterich Bank First Bank of Highland Park First Bankers Trust Company, N.A. First Eagle Bank First Federal Saving Bank of Champaign Urbana First National Bank First National Bank & Trust First Neighbor Bank N.A.

First Secure Community Bank First Security Bank First Security Trust & Savings Bank First State Bank of Monticello FNBC Bank and Trust Fortress Bank Heartland Bank and Trust Company Hickory Point Bank & Trust Home State Bank, N.A. Hometown National Bank Hoyne Savings Bank INB, National Association Inland Bank and Trust JP Morgan Chase Lincoln Community Bank Midwest Independent Bank Mount Prospect State Bank Municipal Trust and Savings Peoples Bank & Trust Pioneer State Bank Quad City Bank and Trust Company Raritan State Bank Rockford Bank & Trust Sauk Valley Bank & Trust Company Signature Bank South Porte Bank Tempo Bank The Bradford National Bank The Gerber State Bank The Huntington Bancshares Inc. The State Bank Group The Village Bank TIB- The Independent Bankers Bank U.S. Bank UMB Bank N.A. Union Federal Savings & Loan Association United Bankers' Bank Wheaton Bank & Trust Company

Platinum Contributors

Christopher Barton Erich Bloxdorf Jeff Bowden Thomas Broeckling Thomas Bugielski Thomas Chamberlain Julie Chamberlin Dan Daly

Marty Davis Michele Dercole John DuBois John Eilering Gary Genenbacher Walter Hasselbring Daniel Hollowed Thomas Hough Ben Jackson Howard Jaffe Stan Jenks Betsy Johnson Dawn Johnson Linda Koch Robert Koopman Jeffrey Ludwig Jeffrey Mefford Rich Naponelli Martin Noll Kevin Olson Dale Richardson Andy Salk Douglas Sanders Aimee Winebaugh Charie Zanck

Gold Contributors Diana Allen Doretta Alms Bob Anderson Micah Bartlett Bill Becker Mark Bennett Darl Bollman Jeffrey Brunoehler Bryce Chamberlain Eric Chojnicki Rick Clary Dane Cleven Bruce Fehlman Rick Francois Michael Gernant John Greenwood Andrew Hartlieb Gary Hemmer Robert Hoffman Ed Jacobs Eric Johnson Carol Kirkenmeier Jeffrey Lang Brien Leahy Brien Leahy Dennis Lutz Thomas MacCarthy David Mehrmann John Pritchard Kent Redfern Steven Rosenbaum Brandon Sieben Brad Stamper Daniel Stein Mitchell Weisz Mathew Wilcox Kenneth Wright George Ziebold

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Year in Review

Silver Contributors

Paul Abert Michael Atwood Jeffrey Boundy Thomas Boyle Christopher Breyman David Brozovich Peter Brummel Perry Byers Karen Cabrera Andy Carlson Michael Cassens Patricia Colwell John Corley Trent Cox Debra Curtis Kirsten Davis-Franklin Van Dukeman Thomas Dunker Robin Elliott Steve Gerstenberger Jeff Glen John Harris Timothy Hecht Larry Helling Mathew Hladio Brian Hoffman Michael Holloway Thomas Hornstein Rhonda Houzenga Douglas Hultquist Joshua Huseman James Hutchstatter Karen Jacobus Amanda James Deborah Jemison Karen Jensen Jeff Johnson Alice Jost Stephen King Gregory Kistler Kevin Klug Kenneth Knop Kenneth Kruse David Kuhl John Laherty Glen Lutz Richard Mahoney Elizabeth Miller Michael Minton Stephen Mitze Kyle Mooney Jennifer Nagel George Obernagel Denise Olds William Parks Mathew Parson Shelley Perkins Annette Pickrel John Powers Jeff Rabenort Amy Randolph Kevin Rogers Frank Roth

John Schaefer Sharon Schaubert Mike Schell Thomas Schlink Christine Shultz Tom Sloan John Smith Gerry Smith Ashley Speed Timothy Spitz Daniel Stevenson Kathy Thompson Tom Thompson Klay Tiemann Jonathan Timmons James Tubbs David Tyrolt Maggi Veronda Steven Wannemacher Scott Wehrli Scott Weistart Diana Whitson Michael Wickkiser James Wright

Bronze Contributors

Jamie Adcock Jaclyn Aldridge Jenn Anderson Rene Anderson John Armstrong Kara Austin Mitchell Birky Willam Blickan Rocky Boaz Anna Bogiatzis Thomas Boyle Timothy Breems Jessica Brown Randy Bruenger Elaine Buehnerkemper Michael Burdell Peggy Campbell Karla Campo Michelle Carroll Michael Carroll Paul Carstensen DiAnn Chamberlain Julie Clark Susan Cole Jim Coons Robert Corman Bob Cormier Kylie Covalesky Kelly Crawford Mary Curl Sean Dardis Rick Darnell Jerry Day Drew Dethrow James Dieterich Sarah Dolan Jennifer Doran Kelly Dranfeldt Beth Easterla

Scott Elza Dan Fleming Patty Fletcher Donna Flynn Kathleen Francque Amy Frazier Jeffrey Furman Ajay Ganju Maria Godina Charles Griffin Patricia Grogg Josh Gronewold Kiley Haebisch Rene Hageman Donna Harden Roger Harris Deanne Haub Phillip Hayes Lori Hedden Kelley Himmelberg Ron Hobson JR Hock Duff Hoel Kristi Hoskins Brice Hutchcraft Joshual Ishamel Kate Johnson Richard Johnson Dawn Johnson DaNeal Keane Kelsey Kendall Laura Kinney Rozan Koerkenmeier Brett LaBelle Laura Lamberti Mathew L Lauritzen Heather Lawhead Toni Little Tami Lowery John Lyons Nicole Mann Heather Mariotti John Martin Anne Matalonis Randy Matravers John McEvoy Paul McGuire Nicolas Meletio Deb Meyer Janis Miller Erick Mueller Paul Murphy Beverly Murphy Jaequeline Niles Courtney Olson Jennifer Pauley Debra Phipps Kim Rampenthal James Reed Terry Reel Dorthy Ricketts Richard Riggins Kevin Rogers Dennis Romero Tyler Rouse Brenda Rupert

Nate Sams Chris Schaefer Jan Schramm Jason Semple Ron Shambaugh Michael Shane Barbara Shovan Rachel Sloan Dennis Sparrow Tamela Squires Emily Starks Marica Stratton Rob Stroh Amanda Tatro William Tracy Raymon Trost Angela Truluck Adam Turner Bruce Uchtman Thomas Undekofler Brenda VanOpdorp Denise Ward Randy Weatherly Kathy Williamson Rory Wright Kristin Zell Bill Zumvorde

Associate Members

AAIM Employers' Association Armstrong Teasdale Associated Agencies Inc BankOnIT USA BFS-MC Group BITS, LLC BKD, LLP BOK Financial Institutional Advisors Charles Vincent George Architects CLA Computer Services Inc. CoNetrix Crowe LLP Cummings, Ristau & Associates Duncan Williams Equias Alliance Farm Credit Mid-America Farmer MAC Federal Home Loan Bank of Chicago FIPCO First Bankers' Banc Securties Howard & Howard Attorneys PLLC Jack Henry Banking Janney Montegomery Scott LLC LKCS

January-February 2020 •

Main Street inc. Market Insights Inc. Momkus McCluckey Roberts LLC MUFG Union Bank, N.A. Ncontracts Northland Securities Nova Performance Trust Capital Partners,LLC Petefish, Skiles & Co Plante Moran PrismPremier Profit Resources Inc. Promontory Interfinancial Network,LLC Remedy Consulting RSM US LLP SBS CyberSecurity Silver Lake Group LTD SkillsMastery Group Inc. SomerCor 504 Inc. SunVest Solar Inc. Team Risk Management Strategies Union Federal Savings & Loan Association Velocity Solutions Virtual Innovation

In-Kind Contributors

American Community Bank Bank & Trust Company BOK Financial Institutional Advisors Community Savings Bank FNB Waterloo Grundy Bank Haberfeld Home State Bank, N.A. LincolnWay Community Bank Profit Resources Town & Country Bank TheBANK of Edwardsville Aimee Winebaugh Bruce Jay Baker Dan & Sherry Daly Linda & Bernie Koch

• 13 •

IBA Springfield Office Relocates Check out our new space!

s you all know, embarking on an office relocation is never easy, but it offers exciting, new opportunities!

When the IBA changed its logo a few years ago—we wanted it to reflect who we are. We are unapologetically bold and strong, but approachable. We are modern. We are warm, friendly and welcoming. We can be trusted and dependable. Our new office, interior design and style match our brand, and we’re excited to give you a first look! Our move has created a total refresh with modern (cool!) signage, inviting and bright space. Our interior is consistent throughout, and we’ve added new technology and an even more efficient phone system.

We are particularly proud of our new Center for Banking Excellence, which provides a wonderful, state-of-the-art space for training, and the adjacent dining room for guests, which is perfect for networking and collaborating. We’ve begun showcasing some of our old photos, and, soon, our artifact collection will be on full display to highlight the IBA’s incredible 128-year history. This will be a must-see exhibit! We’re sure that our many guests – bankers, associates and partners – will enjoy coming to our office. It is easy to get to, with plenty of adjacent hotels, restaurants and retail opportunities. We are eager to show off our new space, and there is nothing we like better than spending time with our members!

Board Room

Reception Area and Front Desk

Directional Signage • 14 •

Collaboration Room • January-February 2020

3201 Wes t White Oa ks Drive, Suite 400 , Springfield , IL 62704

GUEST OF THE MONTH Ron Hobson, Vice President Relationship Manager, MIB Springfield, IL

Our Core Values

Our first visitor - Ron Hobson, MIB   Ron Hobson was the first official visitor to our new Springfield office location! He came to our new space at 3201 W. White Oaks Drive on Day 1 of our big move, when we were still unpacking and settling in, and we invited him to return for a tour once all of finishing touches were complete.

History Library

”

I am so excited for the IBA and was really curious about the new space. I couldn’t wait to see it! I actually worked in this very building on the same floor many years ago when I was with Norwest/ Wells Fargo, so it’s like old home week for me.

Center for Banking Excellence

Center for Banking Excellence Vestibule

Reception Entryway First Seminar – Security Management Workshop led by Randy Phillips with Thompson Consulting Group Center for Banking Excellence Canvas

Wow! The IBA really hit it out of the park! The colors, the branding and the signage are amazing. I love all of the decorating touches, like the beautiful mural and the core values in the reception area, the historical items throughout the hallways and even the signage when you come off of the elevator. My favorite part is the new Center for Banking Excellence. Not only is it state-of-the-art, but the view is outstanding. I love how you’ve displayed the art canvas that was donated to the IBA during the PAC auction at last year’s Annual Conference. And you can’t beat this location! It’s convenient, and there’s plenty of parking, restaurants and hotels nearby. Congratulations to my friends at the IBA on their new Springfield office space!

January-February 2020 •

” • 15 •

by Steve Sanders, CSI

2,000 Consumers Told Us Their Worst Cybersecurity Fears Here’s what you can do to help your customers conquer their concerns

oday’s consumers are inundated with troubling cybersecurity news, on practically a daily basis. When word of the Capital One data breach broke, consumers again were left scrambling to figure out if their personal information was included in the 106 million exposed records. They are weary, to say the least. So, how can financial institutions help restore their peace of mind? To find out, CSI polled more than 2,000 American consumers about the cybersecurity threats and challenges surrounding them and their financial institutions. The result? Consumers (unsurprisingly) want to know how to better protect themselves, and are quite open to their bank showing them how. Almost three-fourths (74 percent) said that they would likely participate in a cybersecurity awareness program if offered by their financial institution. This insight presents banks with a tremendous, inexpensive opportunity to increase their value and retain more customers.

• 16 •

• January-February 2020

If You Host It, Customers Will Come

Per our poll, consumers ages 18 to 44 are the most likely (75 percent) to attend a bank-sponsored cybersecurity education program, and interest from those age 45 and older is close behind (73 percent). So if your institution hosts a cybersecurity awareness program, people will come. By doing so, you create a win-win for consumers and your institution. Here are just a few of the benefits: • Bolster your institution’s reputation as an active corporate citizen • Increase the potential for new business as you share your knowledge • Create more cyber-aware customers able to thwart malicious cyberactivity • Reduce your own risk from cybercrime as a result

The Makings of a Useful Message

Beyond the logistical details, ensure you craft an informative message, including these topics:

• Practicing good cyber hygiene: CSO

Online (www.csoonline.com/article/ 3310068/basic-cyber-hygiene-practicesthat-go-a-long-way.html) shares several basic cyber-hygiene tips that you can share:

• Use secure access points: Only connect devices

through private Wi-Fi networks or use a virtual private network (VPN) to encrypt a public Wi-Fi network. • Install updates: As soon as hardware and software updates are available, download them to protect against known vulnerabilities. • Protect yourself: Always use strong, unique passwords and incorporate multi-factor authentication whenever it’s available. • Practice safe emailing: Beware of opening links or attachments from unknown or suspicious persons. • Use anti-malware protection: Explain that this isn’t just for computers and laptops anymore. Consumers need to think about mobile and other Internet-connected devices.

• Protecting Online Footprints: The NCSAM

2019 Toolkit (niccs.us-cert.gov/sites/default/ files/documents/pdf/dhs_ncsam2019_ toolkit_508c.pdf) is a great resource for anyone hosting a cybersecurity awareness program. It also suggests talking about these online safety tips:

• • • • •

Personalize privacy settings Post safely to social media Understand the Internet of Things (IoT) Protect from social engineering Stay safe with e-commerce

The Keys to a Successful Event To really capitalize on this opportunity, you must be intentional and deliberate in your planning:

• Create a guest list: Of course you should include your

existing customers, but don’t stop there. Cement your status as a local hero by inviting the community at large.

• Save the date: The bad guys aren’t waiting, so don’t

procrastinate. Host your event as soon as you can properly plan it. If possible, consider scheduling it in October, which is National Cybersecurity Awareness Month (NCSAM), “a collaborative effort between government and industry to raise awareness about the importance of cybersecurity and to ensure that all Americans have the resources they need to be safer and more secure online.”

• Don’t stop at one: Reach the broadest audience by host-

ing several sessions conveniently scheduled for various demographics, i.e., mornings for senior citizens and stayat-home parents, evenings or weekends for working adults.

• Remember: location, location, location: Select a venue conducive to a group meeting and one that projects a professional and credible atmosphere. Also make sure the location is conveniently accessible and big enough to comfortably house your entire guest list.

• Pick a partner: Pairing up with your local chamber of

commerce, an area civic organization or academic institution is a great way to reach the broader community.

• Give more than advice: Everyone loves free stuff. This is a great opportunity to hand out bank-branded items like pens, mugs, etc. You could also give away a more valuable door prize.

• Bring in the experts: Technology can be a dry and

complicated topic, so pick a speaker with the cybersecurity chops to inspire confidence and motivate them to heed the advice.

• Responding to a data breach: Explain the key actions consumers should do after a data breach, including finding out what information was stolen and if their personal data was included, as well as putting fraud alerts on affected debit and credit cards and credit reports.

• Dealing with identity theft: It also is impor-

tant to discuss what consumers should do if their identities are stolen.

• Institutional defenses: Finally, take the opportunity to discuss how your institution protects itself and its customers and their personal data from cyber intrusion.

More Helpful Insight from CSI’s Consumer Cybersecurity Poll

Consumer receptivity to a bank-sponsored cybersecurity education program is just one of the takeaways from our survey. Download CSI’s 2019 Consumer Cybersecurity Poll Executive Report at go.csiweb. com/ConsumerPoll19.html to gain valuable insight about consumers’ thoughts surrounding cybersecurity. About the author: Steve Sanders is Vice President of Internal Audit for Computer Services, Inc., (CSI). He may be reached at steve.sanders@csiweb.com. IBA Associate Member

January-February 2020 •

• 17 •

WELCOME

2020 Scholarships Exclusive to IBA Member Banks

IBA Future Leaders Alliance (FLA)

One-Year Program Beginning in February 2020 Two Scholarships Awarded

Graduate School of Banking Human Resource Management School

March 29 – April 3, 2020 | University of Wisconsin − Madison One Scholarship Awarded

ABA Stonier Graduate School of Banking

June 4-11, 2020 | University of Pennsylvania, Philadelphia One Scholarship Awarded

Graduate School of Banking

August 2-14, 2020 | University of Wisconsin − Madison Two Scholarships Awarded

Apply Online Today! ilbanker.com | 217-789-9340 | education@ilbanker.com

• 18 •

• January-February 2020

Where do we find

SAFE HARBOR

in times of agricultural uncertainty?

By Kyle McMahon, Iron Comps by Tractor Zoom

The Ag economy in 2019 is not the same economy we endured in the 1980s. However, as net farm income remains low for the 5th straight year, talks of debt restructuring, asset liquidation, liquidity and regulatory pressure have become common topics among ag lenders.In the words of Ron Hansen, Iowa Division of Banking Superintendent, “Ag gives me anxiety,” as it relates to net farm income and regulations.

net farm income. Different equipment categories have been more affected than others. Straight line 10% depreciation schedules simply don’t work anymore. For example, a new John Deere S670 combine cost ~$375,000 in 2014. The average auction value of that same machine today is $104,556. Straight line depreciation would imply a value of $221,434.

According to Chad Jorgensen, with the Federal Reserve Bank of Chicago, “agriculture customer debt to asset is 41% in July 2019 compared to 38% the year prior.” Rising debt levels raise concern over asset quality and more accurately determining asset values in current market conditions. The most expensive assets farmers own are farmland and equipment. Of non-crop assets, a farm’s equity structure may look like this; 60% farmland, 30% farm equipment, and 10% buildings.

Regulators have recognized the volatility in equipment prices. With the hype of CECL taking effect in 2023, regulators have reportedly requested 3rd party equipment chattel appraisals during exams. Banks traditionally turn to auction results to build a chattel appraisal because auction results are real, 3rd party values with no conflict of interest to the ag lender. During renewal season a formal farm visit may help ag lenders better determine asset quality and gather better data points such as Make and Model of farm equipment to help them build better machinery lists for chattel appraisals and collateral purposes.

Iowa State University, the University of Illinois and Purdue University have all reported relatively steady farmland values over the last 3 years. The 3-state average of good farmland has only dropped 1.4% in that time period. Low supply of good farmland has kept values steady. If values change, banks typically rely on certified appraisals.

Moving forward, uncertainty looms as commodity prices and trade policy look unfavorable. Net farm income and equity erosion will continue to be an issue. Having more information and data to help make better decisions, provide safe harbor and adequately prepare for a downturn is an exercise anyone in the agricultural arena should be considering.

Used farm equipment is a different story. Used equipment prices are as volatile as commodity prices. Several factors are to blame, including regional weather events, supply and demand, and

About the author: Kyle McMahon is Founder and CEO of Iron Comps by Tractor Zoom. He is a 3rd generation entrepreneur and actively farms in Southeast Iowa. He may be reached at kmcmahon@tractorzoom.com or 641-919-5953. IBA Associate Member

January-February 2020 •

• 19 •

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• 20 •

• January-February 2020

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The Illinois Bankers Association is pleased to offer scholarship opportunities to its member bankers through the Herbert V. Prochnow Educational Foundation, a supporting organization to the Graduate School of Banking at the University of Wisconsin – Madison. Scholarships are distributed through the IBA for the Graduate School of Banking and the GSB Human Resource Management School.

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January-February 2020 •

• 21 •

WELCOME

March 5-6 Embassy Suites East Peoria

The ONE features seven educational tracks, 39 informative sessions, an engaging trade show and ample networking opportunities. Educational tracks include bank marketing, financial management, human resources, leadership development, retail banking, risk management and technology and operations. The event allows multiple employees to attend a single, conveniently located conference. Take advantage of The ONE and ensure ample Opportunity, Networking and Education. The Trade Show Engage with dozens of companies showcasing their products and services to help increase your bank’s efficiencies and bottom line. Don’t miss this valuable opportunity to network and support IBA preferred vendors and associate members. With numerous Trade Show prizes up for grabs, you could be a big winner!

• 22 •

• January-February 2020

The ONE Benefits… • Marketing Directors • Chief Financial Officers, Controllers, Financial Managers • HR Officers • Retail Officers • Business Development Officers • Chief Operations Officers • Operations Personnel • Risk Managers • Security Officers • Technology Officers • Department Heads • Branch Managers

General Sessions

UNDERSTANDING WEIRD PEOPLE Steve Thomas Achieving sustained success has never been more important. In addition to business challenges, you must also navigate differing personalities and the difficulties that technology can impose on personal relationships. The common thread to achieving success in all these areas is connection. In this unconventional session, Thomas helps you understand what makes people so different by exploring the complexities of human weirdness. Taking it another step further, you’ll also learn simple ways to serve effectively and improve accountability. You’re sure to acquire new insight on behavioral styles and how you can make profound impact with your most valuable resource—people.

A PIECE OF THE PUZZLE: EIGHT TRAITS OF A QUALITY TEAMMATE Kevin Kush Teammate Expert, Speaker and Author How well do employees at your bank or team work together? Are you a smooth, well-oiled machine or a fractured collection of in-it-for-yourself individuals? Coach Kush spent 21 years as the head football coach at Boys Town, a residential facility for at-risk-youth in Omaha, Neb., and developed a

remarkable record with young men who were being given their last chance at life. Winning at life was more important than winning on the field, and Coach Kush helped them to achieve both. In a straightforward, no-excuses style, Kush discusses eight traits that can turn any group or organization into a cohesive, high-performing team. His passion for performance is contagious and will help lead your team to greater productivity and success!

Preconference Session with Lunch

PROBABILITY NOT POSSIBILITY

Additional $35 Registration Fee

R. Kent Morrison Founder and President BSG Security Services, LLC All too often the focus is on possibilities rather than probabilities when considering overall safety in the workplace. Resources can be stretched thin when attempting to prepare for all possibilities, which are infinite. With the realization that anything is possible, what approach should be taken to safeguard one’s well-being? Capitalizing on his years of military and high-risk security experience, Morrison helps you anticipate and prepare for the most likely types of incidents, while remaining flexible for unforeseen potential concerns. The presentation also identifies self-awareness techniques to utilize while in public settings or unfamiliar surroundings. “Avoid trouble but handle it when it finds you.”

Illinois Bankers PAC Brews Event

Kenny’s Westside Pub, Peoria • Thursday, March 5 • 6:30 p.m. – 8:30 p.m. $35 per person Join your friends and colleagues at Kenny’s Westside Pub in downtown Peoria. Enjoy a variety of plentiful appetizers and an assortment of beverages with all proceeds benefitting Illinois Bankers PAC. All proceeds benefit IBA unless otherwise indicated. Only Illinois Bankers PAC Brews will benefit Illinois Bankers PAC. A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official website (www.elections.il.gov) or for purchase from the State Board of Elections, Springfield, Illinois. All contributions to Illinois Bankers PAC are voluntary. You may refuse to contribute without reprisal. Contributions to Illinois Bankers PAC are not tax deductible.

Register three people from the same bank Register Now for The ONE! and the fourth is FREE! Visit ilbanker.com January-February 2020 •

• 23 •

Cultivating the Next Generation Priorities Boards Should of Leadership: Three Address with the CEO By Terry Saber, Saber Advisory Group, LLC

hile all components of the regulatory CAMELS rating are crucial to a well-run financial institution–management of capital, asset quality, earnings, liquidity and sensitivity–the most vital today is “M”, management. In today’s unprecedented 24/7 world of constant connection, emerging technologies, uncertainty, talent shortage, globalism and retiring baby boomers, addressing these business challenges requires a new type of leader. One might suggest to the regulators that while “management” is a must, leadership of these components is the real key. And there is a difference. As reported in “Banking and Capital Markets Trends 2019” by PwC, more than 60 percent of the banking CEOs surveyed believe it’s become more difficult to hire workers in their industry. And, according to a 2014 study conducted by Deloitte, leadership remains the top talent issue facing organizations

• 24 •

• January-February 2020

around the world, with 86 percent of respondents rating it as “urgent” or “important.” Only 13 percent of respondents say they do an excellent job developing leaders at all levels—the largest “readiness gap” in the survey. Lack of succession planning, talent readiness and investments in technology are all impediments to the success of the financial services industry. How do we develop the next generation of leaders that can effectively serve aging populations, upon which banks have depended for deposits, while meeting the needs of the next generation, which does the majority of its everyday banking electronically?  The weight of responding to these challenges should not lie only with the CEO. To secure the future success of your financial institution, here are three critical strategies boards should discuss with their CEOs to attract and retain the right talent.

1 Develop a Customer-Centric Culture Driven by Engaged Leadership Create a culture of “safe” empowerment where future leaders can take “ownership,” knowing they have support while taking on new challenges. Put them on important strategic projects or task forces. Give them a meeting to organize. Put them in front of the board on occasion to share successes and challenges, such as growing business, implementing new technology initiatives or increasing efficiency. Grow your own...or purchase what talent you must…well ahead of the succession vacancies. This is best accomplished with, and by, an effective HR leader who understands the process of talent assessment and succession readiness. One of the most fulfilling and revealing processes a CEO can engage in with his/her leadership team is strategically ensuring time and thought are spent on thoughtful contemplation of the existing talent pool–and the needed talent pool going forward. Consider designating a small “innovation” group to spend uninterrupted time on a weekly basis focused only on innovation possibilities.

2 Invest in Leadership Development and Coaching Think about creating in-house professional development offerings to re-train or upskill your employees. In addition to technology skills, today’s leaders need to be emotionally intelligent and human-centric. Companies can have all the technology they need to compete, but without a thoughtful strategy that puts people first, they will fail. After all, financial institutions are run by people, for people. Even Artificial Intelligence (AI) can only take you so far without the human interaction of leaders with the skills of empathy, innovation and engagement who create a top-down culture of people and customers first. This means that an opportunity exists for you to develop and nurture your current employees through mentoring, creating an in-house curriculum or investing in a learning management system (LMS) to provide courses in the soft skills so many future leaders lack such as problem solving, communication and adaptability.

3 Determine the “Type” of Leader You Are Looking For

Your strategic plan should focus on the right type of leadership to allow your institution to survive

and thrive going forward. There are many styles of leadership, but the three that will be most valuable to you are the visionary, the transformer and the change agent. The Visionary – The most in-demand right now is the leader who can bring vision and direction to your organization, particularly if you are operating in a market that requires a new approach to growth. This leader can inspire everyone in your organization to align with the mission, giving your organization a competitive advantage. The Transformer – The transformer is who you need when you are facing a major crisis, whether it be negative press, reputation management or an ethical misstep. This leader is influential and excels in leading people and institutions that require inspiration to help guide them through times of uncertainty and will have the ability to align stakeholders to make hard, but necessary, decisions. Beyond this, the transformer leader can nurture loyal, high performers. The Change Agent – The only constant in life is change, but it can be difficult for people and organizations. This leader will drive the change your institution needs to compete. They revel in change and embrace resistance. The change agent will use their ability to motivate, inspire and mobilize your people to adapt to the change process. To quote one of the experts on leadership, John Maxwell, “The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails.” Whether you employ one or all of these strategies, it is essential to have a long-term plan for how you will attract and retain the leadership talent that will ensure your institution’s success now and in the future. About the author: Terry Saber, Saber Advisory Group, LLC, is nationally known for her facilitation skills as well as her allinclusive, highly customized, and organization-specific approach to strategic thinking, strategic planning, succession, board governance and leadership development. Her focus today is board governance, strategic planning, executive coaching, HR/ OD and succession at all levels, including ownership, board and executive succession. Terry currently coordinates leadership and management curriculum for the Graduate School of Banking at the University of Wisconsin-Madison (www.gsb.org), an IBA Associate Member, and serves on the GSB Academic Curriculum Advisory Committee. She speaks and consults across the country and internationally.

January-February 2020 •

• 25 •

EVENT HIGHLIGHTS Midwest Bank Leaders Conference • November 6 • Lisle

John Geiringer, Barack Ferrazzano Financial Institutions Group, and John Behringer, RSM US LLP, present the popular Behringer-Geiringer Report.

Brian Battle, Performance Trust Capital Partners, LLC, was our host for the event and led a discussion with Michael Scudder, First Midwest Bank.

James Johannes, Ph.D., Ashenbrener Chair of Banking and GSBProchnow Professor of Banking, Senior Associate Dean for Faculty and Research, University of Wisconsin-Madison, was the closing speaker. • 26 •

• January-February 2020

• INFO ON EDUCATION EVENTS • BREAKING NEWS • INDUSTRY MILESTONES • BEHIND THE SCENES WITH US

#illinoisbankersassociation @illinoisbankers January-February 2020 •

• 27 •

EVENT HIGHLIGHTS Chicago Area Chapter Holiday Breakfast • December 5

• Lisle

The Chicago Area Chapter donated $7,500 to Illinois Bankers PAC.

2019 Chicago Area Chapter Officers Karlie Krehbiel, Lisle Savings Bank, Christopher Barton and Nick Weaver, Amalgamated Bank of Chicago.

The panel was moderated by Kerri Doll with the Illinois Department of Financial Institutions and included Tim Tedrick, Wipfli, Amy Fahey, FWBank, and Michelle Toll, The State Bank Group.

Chicago Area Chapter Holiday Breakfast Thank you for your generous support!

• 28 •

• January-February 2020

Scholarship Fund

PLEDGE TODAY All donations to the Illinois Bankers Scholarship Fund will be paid into and held in a segregated fund within Illinois Bankers Education Services, a not-for-profit subsidiary, EIN 36-4271815, of the Illinois Bankers Association, and will be used exclusively for the purpose of granting scholarships under this program to further professional careers in banking. Donations paid into and held in this fund may be tax deductible as charitable contributions to the extent permitted by law. No proceeds from this fund will be used for government advocacy or other purposes.

DONOR LEVEL RECOGNITION Contributors will be recognized in the Illinois Banker magazine and displayed in the Illinois Bankers Center for Banking Excellence. FRIEND

$25 - $500

SUPPORTER

$501 - $1,000

PATRON

$1,001 - $5,001

CHAMPION

$5,000+

m I commit $_____________ in 2019. m I pledge $_____________ per year for three years (2019-2021). * Contributions via check must be made payable to Illinois Bankers Education Services Inc. NAME RECOGNITION (select one) m In Memory of _________________________________________________ m Name _________________________________________________________ m I would like to remain anonymous. Name _____________________________________________________________________________________________________________________________ Organization _______________________________________________________________________________________________________________________ Address ________________________________________________________ City/State/Zip ______________________________________________________ SCHOLARSHIP FUND UPDATE Phone __________________________________________________________ Email _____________________________________________________________

• 34 •

Contributions as of December 9

$25,190

$50K

• September-October 2019

Thank you to the Illinois Bankers Scholarship Committee for all of their work in establishing the Illinois Bankers Scholarship TEXT Fund! Lenore Erickson First Bank of Highland Park Highland Park

Chairman Dave Brandon Hickory Point Bank & Trust Decatur Andrew Butts Bank of Belleville Belleville

Jeffery Fauver MAIL Catlin Bank Catlin

Thomas Chamberlain Iroquois Federal Savings & Loan Association Danville

Joshua Huseman First National Bank DeKalb Rachael Maurer

United WEB Community Bank Springfield

Trent Cox Farmers & Mechanics Bank Galesburg Michael Cripps The First Bank and Trust Company of Murphysboro Murphysboro

Matthew Wyatt TheBANK of Edwardsville Collinsville

PHONE

Visit www.ilbanker.com/scholarship for more information, including scholarship award criteria.

AMAZON

44-321 with the message “IBGIVE” Illinois Bankers Education Services, Inc.

3201 W White Oaks Dr, Suite 400, Springfield, IL 62704

ilbanker.com/scholarship 217-789-9340 Place your orders thru Amazon Smile (Illinois Bankers Education Services Inc.)

January-February 2020 •

• 29 •

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Securities, insurance and advisory services offered by BOK Financial Securities, Inc., member FINRA/SIPC and a subsidiary of BOK Financial Corporation. Some services offered through our affiliate, • 30 • Investments, Bank of Oklahoma • January-February 2020 identifiable trading department of BOKF, NA. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE Institutional which operates as a separately

FLA UPDATE What a Great Year for our Future Leaders Alliance!

Our Future Leaders were busy this year! They upped their game by becoming more involved with the IBA and the industry. They learned new skills and developed their leadership traits, while building new friendships and networks among their FLA peers. And they still had time for some fun along the way!

Best of luck in 2020 to all of our FLA students and alumni!

January-February 2020 •

• 31 •

CONNECT WITH OUR PREFERRED VENDORS

ABA INSURANCE SERVICES Richard Flenner | 800-274-5222 ext. 1325 APPI ENERGY Jamie Polend | 800-520-6685

Illinois Bankers Insurance Services Shine a light on your insurance needs for you, your employees and your financial institution. Financial Institution Bond • No Aggregate Limit • Cyber Extortion • Kidnap/Extortion • Excess Deposit Coverage D&O Liability • Management & Professional • Securities coverage • Depositor Liability • EPLI • Fiduciary and Lender Liability • Trust E&O • Cyber Liability

Get a quote. Phil Talley 217-971-3769 ptalley@ilbanker.com • 32 •

• January-February 2020

ASCENSUS Joe Doolittle | 800-346-3860 BANKER’S DASHBOARD Bob Reid | 800-933-2211 ext. 159305 BANKMARKETINGCENTER.COM Neal Reynolds | 678-528-6688 BANKTALENTHQ.COM Brian Hoffman | 217-789-9340 DELUXE CORP. Bob Reid | 800-933-2211 ext. 159305 FLOODPLAIN CONSULTANTS INC. Craig Callahan | 317-858-4420 IBA 401(K) ABG RETIREMENT PLAN SERVICES Pat Bearss | 309-397-5039 INVESTORS TITLE INSURANCE GROUP Dana Lyons | 217-622-0299 KEYSTATE CAPTIVE MANAGEMENT Travis Holdman | 260-227-0265 OFFICE DEPOT Isaac Mares | 855-337-6811 ext. 12878 SBS CYBERSECURITY Dennis Sparrow | 314-276-4610 STRATEGIC RESOURCE MANAGEMENT Uma Zielinksi | 901-681-0204

Move your bank forward by connecting with Brian Hoffman bhoffman@ilbanker.com 217-789-9340

PREFERRED VENDOR

Reduce Electricity and Natural Gas Costs in 2020 With APPI By Brian Hoffman, President, Illinois Bankers Business Services

Selecting the best energy supplier and contract is an important decision. The Illinois Bankers Association's Preferred Vendor APPI Energy has been a trusted name in energy consulting for 23 years and has been a Preferred Vendor since 2006. Through our program with APPI Energy, IBA members have access to a full suite of valuable services, designed to save time and create

budget certainty. Their process includes negotiating electricity and natural gas pricing from 36 vetted and trusted suppliers. Jamie Polend, EMP, is APPI Energy’s dedicated consultant for the IBA. He has years of experience working with banks of all sizes throughout every deregulated market in the U.S. Jamie assists locations with electricity

and natural gas procurement, including the development of purchasing strategies, monitoring market prices, negotiating contracts, establishing budget certainty, and eliminating price risk. Please reach out to Jamie directly at 667-330-1158 or jpolend@ appienergy.com to learn how he can help your institution.

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January-February 2020 •

• 33 •

WELCOME Always your partner, never your competitor.™

Is your ALM system key to your decision-making? Shouldn’t it be?

With ALM Driver™ from Bankers’ Bank, you have a resource that goes beyond compliance reports. Scalable to your needs, it supplies key insights on lending, in addition to investments and funding sources. The simulation tool provides analytics around strategy decisions within seconds rather than hours, and creating custom peer groups makes comparisons more applicable. You will appreciate the way this easy-to-use tool combines your data with leading ALM theory. Your board and examiners will applaud the clearly presented forecasting and valuation reporting. Contact Bankers’ Bank to learn how ALM Driver™ can enhance your bank’s value and profits.

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Your Commercial Banker

Jeff Rabenort 618.306.3656 Southern IL

Tom Thompson 224.775.5456 Illinois

Madison, WI • Chicago, IL • Des Moines, IA • Indianapolis, IN

Asset Liability Mgmt • Bank Cards • Cash Letter • Commercial • International • Investments • Leasing • Mortgages • SBA 7(a) • Wealth Mgmt

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• January-February 2020

ON THE MOVE

Waters

Burgoyne

Balogh

Turza

Alton

Chicago

Aurora

Effingham

Liberty Bank, A United Community Bank Liberty Bank welcomed Matthew Waters as its new community president. Waters joins Liberty Bank with more than 15 years of experience in the financial industry.

OLD SECOND NATIONAL BANK Sylvia Balogh has been named senior vice president of retail banking at Old Second National Bank.

Champaign

HICKORY POINT BANK Hickory Point Bank announced Jeff Burgoyne has been named senior vice president, commercial banking and will manage and develop commercial banking relationships with clients in the Champaign and Danville area.

BYLINE BANK Susie Goldschmidt has joined the bank as senior vice president, market president, Oak Park River Forest, and Donnell Cole has joined the bank as vice president, commercial banking.

MIDLAND STATES BANK Frank Turza has joined the bank as its director of retail banking.

Glen Carbon

BANK OF SPRINGFIELD Bank of Springfield in Illinois promoted McKenzie Breihan to community bank president at its Glen Carbon banking center.

Rosemont

SIGNATURE BANK Todd Ewers has joined the bank as vice president of commercial and technology banking.

ADVERTISING INDEX Abaca

501-476-6696 www.abacabanc.com

APPI Energy

800-520-6685

www.appienergy.com

American Bankers Association

800-226-5377

www.aba.com

Bankers’ Bank (Wisconsin)

800-388-5550

www.bankersbank.com

BOK Financial

866-440-6515

www.bokfinancial.com/institutions

Graduate School of Banking at University of Wisconsin 608-243-1945 www.gsb.org

Howard & Howard

312-372-4000

www.howardandhoward.com

Illinois Bankers Group Insurance Trust

217-789-9340

www.ilbanker.com/Insurance/Insurance-Trust

MIB-Midwest Independent Bank

800-347-4642

www.mibanc.com

Wipfli

800-486-3454 www.wipfli.com

January-February 2020 •

Back Cover 27

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NEWS & NOTES

Heggen Appointed to IBA Board Joanie Heggen has been appointed to the IBA Board of Directors to serve in the recently vacated seat of Bill Fanter. Heggen, a financial services veteran with nearly 30 years of experience, currently serves as a senior vice president at U.S. Bank. She has been with U.S. Bank for 19 years, serving in multiple roles, including relationship manager and portfolio manager team lead prior to her current role. She currently serves on the YWCA Metropolitan Chicago, Chicagoland Chamber of Commerce, and Chicago Tennis Patrons boards. She is also a member of the Executives’ Club of Chicago and Private Directors Association.

at the EIU vs. Eastern Kentucky Homecoming Football game. Torman Honored as Distinguished Alumni Congratulations to Dianna Torman, president and CEO of Prairie Community Bank, who recently received the 2019 Female Distinguished Alumni Award from Leadership Greater McHenry County.

Ludwig Honored as EIU Distinguished Alumnus Midland States Bancorp, Inc. is excited to announce that Jeffrey G. Ludwig, President and Chief Executive Officer, has been named a 2019 recipient of the Eastern Illinois University Distinguished Alumnus Award, the highest alumni award presented by the university. This award is presented to individuals who have distinguished themselves in either academic or literary fields, business, public service or service to the University. Ludwig was honored during the EIU Homecoming festivities, including recognition

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• January-February 2020

First Waterloo Bancshares, Inc. to Acquire Best Hometown Bancorp, Inc. Gary D. Hemmer, President & CEO, First National Bank of Waterloo and its parent company, First Waterloo Bancshares, Inc., and Ron Shambaugh, President & CEO, Best Hometown Bank and its parent company, Best Hometown Bancorp, Inc., are pleased to announce the signing of an Agreement and Plan of Merger. First Waterloo Bancshares, Inc., Waterloo, Illinois, will acquire all of the outstanding shares of common stock of Best Hometown Bancorp, Inc., Collinsville, Illinois.

< Pictured is Dianna Torman (left) along with the other Distinguished Alumni recipients.

Congratulations to the Graduates of the IBA’s Branch Management Series • Ross Martin, First Vincennes Savings Bank, Vincennes • Sarah Allen, FNBC Bank and Trust, La Grange • Stacey Gallagher, FNBC Bank and Trust, La Grange • Audra Orlando, Evergreen Bank Group, Oak Brook • Chrishelle Alferez, Evergreen Bank Group, Oak Brook • Jackie Broyles, Bank of Belleville, Belleville • Theodora Cheila-Georganas, Wheaton Bank & Trust Company, Wheaton • Trina McCoy (instructor), Performance Solutions inc., Kennesaw

Karlie Richardson Retires from First Mid Bank & Trust After 35 Years After 35 years of dedicated service to First Mid Bank & Trust, Karlie Richardson, bank teller at First Mid’s Altamont location, has retired. “As I look forward to retiring and spending time with my husband on our farm, my favorite quote comes to mind: There is joy in the journey,” says Richardson. “I’m thankful for the many kind customers I’ve had the pleasure of serving and for the friends I’ve made during my time at First Mid. I’m saddened that this part of my journey is coming to an end, but I’m excited to see what the future holds.” According to Lea Stuckemeyer, Branch Manager, “Karlie’s favorite quote certainly pertains to her years here at First Mid due to the fact that she has brought so much joy to our customers and employees. Although she will be missed, we thank Karlie for her many years of service and wish her all the joy in her continued journey.” Doug Stroud Retires from Bradford National Bank Doug Stroud has retired from Bradford National Bank, effective December 31, 2019. Bank President Michael Ennen said, “We will miss the day-to-day leadership, judgement, and integrity that Doug brought to the bank each and every day. He has been a valuable asset to Bradford National Bank for these past eight years.  His knowledge and enthusiasm for Bradford National Bank and serving the community will be missed.”

In February 2014, Stroud became the ninth president of Bradford National Bank, following the retirement of Frank Joy. He held that position for nearly five years before stepping down in January 2019.  He maintained his position as CEO for all of 2019. Stroud will continue to serve on the Bradford National Bank board of directors. Stewart Elected to Chair ABA Laurie Stewart was elected 2019-20 ABA chair during the association’s Annual Convention. Stewart – president and CEO of Sound Community Bank in Seattle – assumed ABA’s top leadership post from Jeff Szyperski, chairman, president and CEO of Chesapeake Bank in Kilmarnock, Va. Also elected were: ABA ChairmanElect Jim Edwards, Jr., CEO of United Bank in Griffin, Ga.; Vice Chairman Scott Anderson, president and CEO of Zions Bank in Salt Lake City; and Treasurer Luther Deaton, chairman, president and CEO of Central Bank and Trust, Lexington, Ky.

Elected as new board members were: Shan Hanes, president and CEO, Heartland Tri-State Bank, Elkhart, Kan.; Howard Jaffe, president and COO, Inland Bancorp, Oak Brook, Ill.; Carissa Rodeheaver, chairman, president and CEO, First United Bank and Trust, Oakland, Md.; James Reuter, CEO, First Bank Holding Company, Lakewood, Colo.; Michael Scudder, chairman and CEO, First Midwest Bancorp, Chicago; and Daniel Yates, president and CEO, Brattleboro Savings and Loan, Brattleboro, Vt. Also appointed to the board for a one-year term were Government Relations Council Chairman Dan Robb, president and CEO, Jonesburg State Bank, Jonesburg, Mo.; GRC Vice Chairman Jim Rieniets, president and CEO, InsBank, Nashville; ABA-State Bankers Association Alliance Chairman Howard Headlee, president and CEO, Utah Bankers Association, Salt Lake City; and Alliance Vice Chairman Peter Gwaltney, president and CEO, North Carolina Bankers Association, Raleigh, N.C.

St. Louis Fed’s Stackhouse, Bosch Announce Q1 2020 Retirements Julie Stackhouse, executive vice president of the Federal Reserve Bank of St. Louis, has announced she will retire in the first quarter of 2020. Stackhouse is the St. Louis Fed’s managing officer of supervision, credit, community development and learning innovation. She joined the St. Louis Fed in 2002 after serving as vice president and managing officer of the risk management department of the Federal Reserve Bank of Minneapolis. Also announcing his Q1 2020 retirement from the St. Louis Fed’s Supervision department is group vice president Tim Bosch, who has been with the St. Louis Fed for 41 years. Bosch began his career as an analyst in the Statistics unit of the St. Louis Fed’s Research division. He later joined the Supervision division as an assistant examiner, earning his examiner commission in 1984 and continually growing his areas of responsibility to head the division’s Safety and Soundness Supervision unit.

January-February 2020 •

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NEWS & NOTES

ASSOCIATE MEMBER NEWS Cinnaire Cinnaire is one of 284 Community Development Financial Institutions (CDFIs) to receive an award from the U.S. Department of Treasury’s CDFI Fund. The $1 million Financial Assistance award will be used to provide creative loans and flexible financing to support low-income, distressed communities throughout Cinnaire’s footprint. Cinnaire received awards in three categories – the core financial assistance award, the persistent poverty award and the disability financing award. Additionally, Cinnaire received an Affordable Housing Program award of $2,835,000 from the Federal Home Loan Bank of Chicago to support five affordable housing developments in Illinois and Wisconsin.

BFS-MC GROUP/Newcleus BFS-MC Group announced that it will now be doing business as Newcleus effective immediately. Clients can continue to manage and maintain their plans through the Multi-Informational Network Tracking System, now known as Newcleus MINTS. The new website is located at www.newcleus financial.com Shield Compliance Shield Compliance (www. shieldbanking.com) announced an expansion of its leadership team with the hiring of Kurt Dicus as Chief Technology Officer and Jenna Meyer as Director of Client Success.

Howard & Howard Howard & Howard has announced the official formation of a Data Privacy and Cybersecurity Practice Group. The practice group’s attorneys assist businesses in staying compliant with data privacy laws and regulations, preventing and protecting against cybersecurity threats and risks, and managing and responding to data breaches. The Data Privacy and Cybersecurity Practice Group will be led by attorneys Brian Pezzillo, Jennifer Lloyd, and Daniel Cotter. Midwest Independent Bank (MIB) MIB’s recently announced that its newest alliance partner is TransFund, one of the top EFT/ ATM card processors in the nation.

• January-February 2020

Wifpli Wipfli announced that the partners and associates of Atlanta-based Porter Keadle Moore (PKM) joined the firm effective October 1.

COMPLIANT CANNABIS BANKING:

what you need to know Download the expert’s guide to banking the cannabis industry. Written by the founders of Abaca, a fintech purpose-built to enable compliant, profitable cannabis banking by America’s community banks. Download at: Abacabanc.com/IL-Banker.

C A N N A B I S B A N K I N G , S O LV E D .

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Additionally, Shield Compliance has signed new agreements to provide its compliance management platform to financial institutions serving legal cannabis markets in Colorado, Illinois, Massachusetts, Michigan, Ohio, and Washington. Combined with its partnership with a multi-state MRB payroll processor, the company now serves all states with legalized cannabis sales programs.

5 0 1 . 476 . 6 6 9 6 • A B AC A B A N C .CO M

WELCOME

NEW MEMBER BANKS Flanagan State Bank Resource Bank SouthernTrust Bank

When your bank’s a member, you’re a member!

NEW ASSOCIATE MEMBERS (as of 12-9-19) Abaca Banc North Little Rock, AR www.abacabanc.com We provide financial services to the cannabis industry. ATM Solutions Inc. Cincinnati, OH www.atm-solutions.com ATM Solutions, Inc. was established in 1994 as an ATM cash replenishment and maintenance company . Today we are one of the largest independently-owned armored car companies in the country with 16 full-service vaulted facilities and more than 150 employees. We service thousands of ATMs and are a trusted service provider for some of the largest banks, credit unions and independent ATM. Broadbent & Associates, Inc. Chicago, IL

www.broadbentinc.com Broadbent is a full-service environmental consultant. Our areas of expertise include water resources, site assessments, air quality engineering, cultural resources, and civil engineering. We work throughout the United States. RedRock Information Security Grand Rapids, MI www.RedRockIS.com RedRock has provided compliance-focused IT solutions for the financial services industry for more than a decade. We’re experts in compliance, security, risk management, and IT support. With extensive experience in FFIEC regulations and exam guidance, we can help organizations meet compliance objectives and prepare for audits and exams.

Annual Conference

June 16-18 Crowne Plaza Springfield

January-February 2020 •

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RISE s d r a Aw

TO THE TOP

AWARDED

JUNE 16-18

Annual Conference Crowne Plaza Springfield

NOMINATE BANKER OF THE YEAR

recognizes an Illinois banker for outstanding leadership to our association, our industry and our communities – someone who has profoundly enhanced our profession. This is the highest honor we bestow on our members.

COMMUNITY SERVICE

recognizes Illinois banks for going above and beyond in the area of community service in their communities. Deadline is April 16.

2019 Award Winners BANKER OF THE YEAR Thomas Hough, Carrollton Bank COMMUNITY SERVICE Alliance Community Bank, Petersburg The Leaders Bank, Oak Brook Peoples Bank & Trust, Pana

Submit your nomination at ilbanker.com/Be-Recognized

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• January-February 2020

EVENTS CALENDAR

SEMINARS, CONFERENCES AND FORUMS FEB 26 Call Report Preparation – Springfield FEB 27 Call Report Preparation – Oak Brook MAR 5-6 The ONE Conference – East Peoria MAR 10-11 Branch Management Series – Springfield MAR 24 LaserPro Commercial Document Preparation for Beginners Workshop – Schaumburg MAR 25 LaserPro Consumer Real Estate for Beginners Workshop – Schaumburg MAR 26 LaserPro Tips, Shortcuts and Best Practices Workshop MAR 26 Credit Analysis Basics – Springfield MAR 27 Credit Analysis Basics – Oak Brook

WEBINARS FEB 3 Writing an Effective Credit Memo* FEB 4 Loan Documentation: Top 10 Mistakes and How to Avoid Them* FEB 5 Opening New Accounts Part I: Personal/ Consumer Accounts* FEB 5 State Income Taxation of Trusts Post- Kaestner▲ FEB 6 Are You Determined to Lead an Exceptional Branch? * FEB 7 BSA Annual Staff Training* FEB 10 Introduction to Consumer Lending* FEB 11 Online Account Opening* FEB 12 Opening New Accounts Part II: Business Accounts* FEB 13 Legal Issues on Deposit Accounts: From Birth to Death*

FEB 18 CRE Appraisals: Regulations & the Review Process* FEB 18 Vendor Negotiation Strategies* FEB 19 The Four Cs of Exceptional Supervision* FEB 19 Opening New Accounts Part III: Trust and Fiduciary* FEB 20 Characteristics of Strong Risk Assessments and Tools to Monitor and Report Results* FEB 20 ACH Rule Changes* FEB 21 Ratio Analysis to Determine Financial Strength* FEB 25 Top 10 Most Frequent Flood Issues* FEB 26 TRID Hot Spots* FEB 26 Excel Explained: Minimize Spreadsheet Errors* FEB 27 8 Steps to Improve Cross-Selling* FEB 28 Developing Teller Compliance Training* MAR 2 Best-Ever Compliance Checklists for Commercial Loans* MAR 3 Protecting Your Salaried-Exempt Status* MAR 3 Audit Report Writing* MAR 4 Driving Results with Your Bank's Data* MAR 4 The UCC for Lenders* MAR 4 Testamentary Planning with IRAs[Symbol] MAR 5 Lending to Municipalities* MAR 6 Managing a Successful Call Center* MAR 9 Advanced Collection Tools Vital in Today’s Economy* MAR 11 10 Hot BSA Exam Issues* MAR 12 Staff Deposit Regulatory Training: Meeting Annual Requirements and More* MAR 12 IRA Death Distributions* MAR 16 Commercial Construction Lending* MAR 17 Adverse Action Notices * MAR 18 You're the New Supervisor! Fasten Your Seat Belt! *

MAR 20 Top 25 Safe Deposit Compliance Issues* MAR 23 Residential Construction Lending* MAR 24 CTR: Line-by-Line* MAR 24 Fair Lending: Do Your Lenders Know the Requirements* MAR 26 Mapping Multi-tiered Business Accounts* MAR 26 Business Development Skills* MAR 27 Call Report: Lending Schedules for Banks* MAR 30 Three Key Risk Assessments in Your ERM Program: ERM, IT, and Internal Controls* MAR 31 Basic Cash Flow Analysis* APR 1 Dealing with Trusts in a Divorce▲ * Total Training Solutions ▲ American Bankers Association

ABA ONLINE TRAINING COURSES FEB 3 Building Customer Relationships Money and Banking FEB 10 Commercial Lending FEB 17 CTFA Exam Online Prep Marketing Planning FEB 24 Introduction to Trust Products & Services IRA Online Institute MAR 2 CRCM Exam Online Prep MAR 9Bank Lines of Business Consumer Lending MAR 16 General Accounting MAR 23 Legal Foundations in Banking Managing the Bank’s Investment Portfolio Marketing Management

UPCOMING EVENTS March 5-6, 2020 The ONE Embassy Suites East Peoria March 12 Women’s Leadership Symposium The Drake Hotel Oak Brook

April 29 Economic Investment Day Springfield May 15 Compliance Conference Hyatt Regency Lisle June 16-18, 2020 Annual Conference Crowne Plaza Springfield Springfield

January-February 2020 •

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THE LAST PAGE

IBA Road Trip Take a peek at some of our recent stops. Follow us on Facebook, Instagram, Twitter and LinkedIn for more road trip photos.

The IBA is on a road trip, and you’re invited!

One of the many perks of being IBA Chairman is meeting our members in their hometowns and discovering new places to visit (and eat!). Recent car cruises took Chairman Kevin

Olson, Grundy Bank, and IBA President and CEO Linda Koch to Cherry, Spring Valley, Sterling, Rock Falls, Freeport, Lena, Marengo, Holcomb, Forreston and Rochelle. Whew!

Jason Kempel, Community Bank in Lena, with Kevin Dean Ahlers, Sterling Federal Bank, F.S.B. with Kevin

Kevin with Rick Wolfe, Union Savings Bank

Jeff Snyder and Betsy Johnson, Forreston State Bank, with Kevin

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Kevin, Linda and Dirk Meminger, Sauk Valley Bank & Trust Company

Kevin with Sally Scanlan, Community State Bank of Rock Falls

Kevin with Perry Byers, Holcomb State Bank

• January-February 2020

Matt Merboth, Spring Valley City Bank, Linda and Kevin

Joe Stouffer and Joanna Engels, State Bank of Cherry, with Kevin

Illinois Bankers Group Insurance Trust The Illinois Bankers Group Insurance Trust (“Trust”) is a not-for-profit entity, existing solely for the purpose of affording IBA members a source for purchasing quality and competitive group insurance products and services. The Trust provides members with dedicated field service executives to review plan updates, meet with employees/ management to answer the inevitable insurance coverage questions. Annual seminars are conducted, and mailings are sent to members to communicate any changes well in advance of renewals. There are no last-minute surprises. THIS MEANS n Lower overhead expenses n Plan flexibility n Individualized attention n Quality and timely claim administration n COBRA and HIPAA administration n Coverage for employees, directors and retirees STRATEGIC PARTNERS

COVERAGES INCLUDE n Major Medical with prescription coverage n High Deductible Health Insurance Plans n Dental / Vision care n Life and AD&D n Short / Long term disability n Critical Illness and Accident n Access to Health Savings Accounts n Access to Flexible Spending Plans n All plans comply with the Affordable Care Act

CONNECT WITH US ilbanker.com | 217-789-9340 Erich Bloxdorf Plan Administrator ebloxdorf@ilbanker.com

Mike Mahorney Senior Trust Advisor mmahorney@ilbanker.com

Phil Talley Vice President ptalley@ilbanker.com

Hillary Meyers Trust Manager hmeyers@ilbanker.com

January-February 2020 •

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Solutions you can bank on. LENDING SERVICES

Bank Stock Loans — Acquisition, Capital Injection, and Shareholder Buy Back/ Treasury Stock Purchase Officer/Director/Shareholder Loans ( Reg-O) Participation Loans Purchased/Sold — Commercial, Commercial Real Estate, Agricultural, and Special Purpose Loans Leases

OPERATIONAL SERVICES

Midwest Image Exchange – MIE.net™ Electronic Check Clearing Products Information Reporting – CONTROL Electronic Funds – Wire Transfers/ACH Risk/Fraud/Anomaly Detection Tools Cash Management and Settlement Federal Funds and EBA Certificates of Deposit International Services/Foreign Exchange Safekeeping

AUDIT SERVICES 1

1 Audit Services provided by MIB Banc Services. LLC, a subsidiary of our holding company.

800-347-4MIB mibanc.com MEMBER FDIC

INVESTMENT PRODUCTS 2 Municipal Bonds Mortgage-Backed Securities Govt. & Agency Bonds Corporate Bonds Brokered CDs Money Market Instruments Structured Products Equities Mutual Funds ETFs

FINANCIAL SERVICES 2

Investment Portfolio Accounting Portfolio Analytics Interest Rate Risk Reporting Asset/Liability Management Reporting Municipal Credit Reviews Balance Sheet Policy Development & Review

2 Investment Products and Financial Services offered thru First Bankers’ Banc Securities, Inc. INVESTMENTS ARE NOT FDIC INSURED, Not Bank Guaranteed & May Lose Value. For institutional Use Only

MEMBER FINRA & SIPC

CIDF T D e et n ar a u l an oitutits n i r

Illinois Banker | January - February 2020

Articles inside

Reduce Electricity and Natural Gas Costs in 2020 with APPI

Three Priorities Boards Should Address with the CEO Cultivating the Next Generation of Leadership:

Mission: The ONE

Where do we find SAFE HARBOR in times of agricultural uncertainty?

2,000 Consumers Told Us Their Worst Cybersecurity Fears

Year in Review 2019