Illinois Banker | May - June 2019

The Official Publication of the Illinois Bankers Association

May-June 2019 ilbanker.com

Economic Investment Day Highlights

Also in this issue:

SPECIAL DIVERSITY & INCLUSION SECTION ANNUAL CONFERENCE

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May-June 2019 • Vol. 104 / No. 3 • ilbanker.com

TABLE OF CONTENTS

8 32 DEPARTMENTS 5 Message from the President and CEO 6 Washington Update 15 FLA Update

18

10

18

25 Preferred Vendor Spotlight 28 The ONE Conference Highlights

22 FEATURES

Special Diversity & Inclusion Issue 8 Diversity and Inclusion in the Industry 10 Ageism in the Workplace 12 BankWork$ Financial Careers Training Graduation and Program Expansion 18 It's Hip in Austin! Annual Conference 2019 20 Why is a Merger/Acquisition the Best Time to Negotiate Your Core Vendor Contract?

22 Banking on "Bank On"

32 Economic Investment Day Highlights 34 Associate Member News 34 New Member Banks 35 New Associate Members 36 On the Move 38 News & Notes 39 Ad Index 40 Events Calendar 42 The Last Page

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

BOARD OF DIRECTORS REGION 1 Clark Delanois The Northern Trust Company, Chicago Martin J. Noll Oak Park REGION 2

Daniel P. Daly Chairman SENB Bank, Moline

William Gleason The Leaders Bank, Oak Brook Michelle A. Toll The State Bank Group, Wonder Lake REGION 3

Kevin L. Olson Chairman-Elect Grundy Bank, Morris

C. Brant Ahrens Vice Chairman CIBC, Chicago

Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville

Stanley D. Jenks Security Savings Bank, Monmouth REGION 4

Christopher P. Barton The State Bank of Geneva

Joseph P. Dively First Mid Bank & Trust, Mattoon

Gary S. Collins Old Second National Bank, Aurora

Andy Hartman JPMorgan Chase Bank, Springfield

William Fanter U.S. Bank, N.A., Chicago

REGION 5 Rich Knebel The Bradford National Bank, Greenville Ronnie Shambaugh Best Hometown Bank, Collinsville

Michelle L. Gross State Bank of Bement

Erich J. Bloxdorf, Executive Vice President & COO Mary Curl, Executive Assistant & HR Manager Pam Macha, Springfield Office Coordinator Legal and Compliance Bruce Jay Baker, Executive Vice President & General Counsel Carolyn Settanni, Vice President and Assistant General Counsel Carly Berard, Assistant Counsel Amy Giacomucci, Law Assistant Bank and Partner Relations Julie Clark, Vice President

William P. Gleason Member-at-Large The Leaders Bank, Oak Brook

Daniel G. Watts Immediate Past Chairman Forest Park National Bank & Trust

Linda Koch Secretary IBA President and CEO, Springfield

Rick M. Francois American Community Bank & Trust, Woodstock Tom Gihl Illinois National Bank, Springfield Daniel J. Hollowed Cornerstone National Bank & Trust Company, Palatine

Betsy Johnson Forreston State Bank Anthony G. Nestler Hickory Point Bank and Trust, Decatur Pamela Sharar-Stoppel Wheaton Bank and Trust Company Simon P. Yohanan First Bank of Highland Park, Evanston FLA CHAIRMAN (non-voting member) Rachael Maurer United Community Bank, Chatham

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 Linda Koch, CAE, President & CEO

Michelle L. Gross Member-at-Large State Bank of Bement

Jeffery L. Fauver Catlin Bank

James H. Huiskamp Blackhawk Bank & Trust, Milan

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

Executive Administration

Dale L. Blachford Treasurer Liberty Bank, Alton

AT-LARGE CATEGORY

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

Communications/Marketing/ Associate Membership

Phillip Talley, Vice President, Insurance Services

Debbie Jemison, CAE, Vice President

Casey Widholm, Marketing Manager

Tammy Squires, Assistant Vice President

Illinois Bankers Education Services, Inc.

Finance and Administration

Callan Stapleton, Vice President

Mark Bennett, CPA, CFO and Vice President

Kevin Klug, Assistant Vice President

Marcia Stratton, CPA, Director

Bob Anderson, Manager of Education and Training

Marie Ann South, Financial Assistant Government Relations Ben Jackson, Vice President Aimee Winebaugh, Director Kirsten Davis-Franklin, Manager, Grassroots and PAC Sarah Cowan, Membership and Government Relations Assistant Illinois Bankers Business Services, Inc. Brian Hoffman, President

Cassie Mattson, Manager, Event Management and FLA Denise Perez, Education Coordinator / Chicago Office Coordinator Amy Sale, Education Assistant Illinois Bankers Group Insurance Trust Erich Bloxdorf, Trust Administrator Robert Penwell, Relationship Manager Hillary Meyers, Trust Manager

Editorial Offices 524 S. Second St., Ste. 600 Springfield, IL 62701-1705 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, 524 S. Second St., Ste. 600, Springfield, IL 62701-1705. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. Š Copyright 2019 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 Diversity and Inclusion Illinois financial institutions recognize the importance of creating a culture of diversity and inclusion (D&I)

and integrating D&I into every aspect of their business. As banks embrace diversity through their workforce, boards of directors, suppliers, customers and clients, they gain a strategic advantage and broader perspective to better understand the needs of consumers and their local communities.

Linda Koch

IBA President and CEO

The IBA recognizes that D&I is a critical component to the success of our member institutions, and, as a result, we are working hard to ensure we offer important programs and resources that foster a more creative and innovative culture.

You will see a special section in this issue of Illinois Banker with several articles on the topics of diversity and inclusion. Included in this section is a feature on IBA Partner, BankWork$, which trains young adults from low income and minority communities with frontline skills, while providing opportunities to our members to further diversify their workforce with trained frontline professionals. We encourage you to take a look at this important and innovative training program.

Also, we hope you have noticed and are taking advantage of the D&I related programs we have woven throughout our various conferences. We began with a special session on Combatting Unconscious Bias during our recent ONE Conference in Peoria, and our upcoming Women’s Conference also will prominently feature the topic of D & I. Finally, be watching for a brand new Multicultural and Diversity Conference to be rolled out in the near future.

Speaking of trained professionals, we can’t help but recognize and congratulate our Future Leaders Alliance Class of 2019. Each of the graduates has fulfilled the requirements of our 13-month program on personal and professional development and industryspecific training, like banking operations, financial marketing and sales, communications and advocacy-related skills and networking. You can see all of our Future Leaders grads on page 14.

If you would like more information about any of these programs, please don’t hesitate to connect with us at 217-789-9340 or visit our website at ilbanker.com.

May-June 2019 •

•5•

WASHINGTON UPDATE

By Rob Nichols, President and CEO, American Bankers Association

Diversifying Our Most Important Asset They say you can’t improve what you don’t measure. That is why ABA has established a dashboard that shows the gender, ethnic and generational breakdown of our workforce, from the customer service operators to the C-suite. This snapshot is a critical first step in a self-assessment of progress toward our goal to be the kind of diverse, equitable and inclusive workplace that attracts and retains the best talent. It shows where we are and where we have room to improve.

For example, it shows our staff is 39 percent non-white, 37 percent Gen X and that 45 percent of SVPs and up are women.

We want top talent for the same reason banks—many of whom have landed on “great place to work” lists, as ABA did last year—do: Because it helps us succeed. And there’s no denying that success is boosted by a diverse workforce.

I appointed a staff task force in 2017 to explore how ABA can enhance our own approach to diversity and inclusion, and the group’s report made a strong business case for taking our efforts to the next

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• May-June 2019

level. Consider that 43 percent of millennials—now our largest generation—is nonwhite, and that the U.S. is projected to not have a single racial or ethnic majority by 2055. That alone tells you that if you don’t have a diverse workforce in the fairly near future, you won’t have a workforce. Studies have also shown that companies with greater gender and ethnic diversity are more likely to outperform those with less.

But the most important case for diversity is simple: Ensuring your institution’s employees and leaders reflect the communities they serve— and treating all employees equitably, making them feel included—is the right thing to do.

Banking leaders have told me they wholeheartedly agree, and some are further along in their DE&I efforts than others. Some, for example, have landed on Forbes’ Best Employers for Diversity list, while others, including those operating far from diversity-rich cities, are still grappling with attracting diverse talent. Remember, though, that workplace diversity isn’t just about color; it’s about ensuring

you have a range of perspectives and experiences informing your decisions. That can come from anyone whose background is different from yours. Think gender, age, military service, disabilities, sexual orientation, religion, socioeconomic status, etc.

The good news is banks don’t have to figure all this out on their own. There also are a host of organizations that are eager to share their insights to help you get it right, and ABA offers training, conferences and resources in this space—all cataloged at aba.com/ Diversity. In addition, the Offices of Minority and Women Inclusion at the eight financial regulatory agencies held a summit last fall where banks and others who are further down the path towards a model DE&I workplace shared best practices related to employment and procurement practices. The ideas exchanged ranged from participating on the boards of colleges, utilizing minority and women owned recruiting firms and offering internships and mentoring to students at local low-income, minority-majority high schools.

Similar suggestions were included in testimony during the first hearing, held in February, of the new House Financial Services Diversity & Inclusion subcommittee—a panel whose very existence is a testament to the social, commercial and economic importance of this issue.

Carla Harris, vice chair of wealth management at Morgan Stanley and a popular speaker on issues related to diversity and inclusion, offered her own advice at ABA’s 2018 Annual Convention in New York. Among her suggestions:

• Most fundamentally, check

your unconscious bias; we all have it, and we can all benefit from training on how to spot it.

• Make sure you lead in an

inclusive way, soliciting views from all and making employees feel valued, seen and heard. If your staff is not feeling this way, you’ll likely be challenged in both retaining and attracting more diverse talent.

There’s no denying that success is boosted by a diverse workforce. see the special Diversity & Inclusion section starting on p. 8

• Be fair in your distribution

of assignments so everyone has a chance to grow and no one is at a deficit when the next promotional opportunity arises.

• Be intentional about making

sure staff have the right sponsors, who have a far greater impact on advancement than mentors.

• Finally, remember the pace

at which our environment and competitive landscape is changing and take a step today—even if it’s pressing pause before you fill your next job opening—toward ensuring you’ll emerge as an employer of choice tomorrow. Nothing will influence

your bank’s future success more than the women and men who run it day-to-day.

I would add my encouragement that you set up your own human capital dashboard. We all have a sense of where we’d like our institutions to be two, three, five years from now. But whether our goals are financial, business or diversity in nature, we won’t know how close we are to reaching them if we don’t measure our progress.

E-mail Rob Nichols at nichols@ aba.com.

May-June 2019 •

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SPECIAL DIVERSITY & INCLUSION SECTION

Diversity and Inclusion in the Financial Services Industry

by Weldon H. Latham and Michael R. Hatcher, Jackson Lewis

2019 will bring increased scrutiny of diversity and inclusion (“D&I”) performance of financial services companies.

Good news—there is a body of evidence that diverse teams drive better collaboration, innovation, and profitability.

Bad news—the advent of #MeToo, Black Lives Matter, and other social movements increase the risk of serious brand and reputation damage from allegations of discrimination and harassment. Additionally, the highly visible Democratic majority in the U.S. House of Representatives will make D&I oversight, as well as enhanced Federal enforcement, a priority in the new Congress.

Diversity and Inclusion are Good Business The fact that D&I programs enhance business performance has been demonstrated by empirical evidence. McKinsey & Company has been a leader in analyzing this data, including in its Diversity Matters (February 2015) and Delivering through Diversity (January 2018) published Reports.

McKinsey makes the following key points:

1

The relationship between diversity and business performance persists.

2

Leadership roles matter.

3 4

It’s not just gender…the inclusion of highly diverse individuals…can be a key differentiator among companies.

There is a penalty for opting out.

According to McKinsey, numerous companies recognize that D&I can assist in achieving “the foremost goals for CEOs: growth and value creation.”

Similar studies reinforce and extend these conclusions.

For example, a Boston Consulting Group (“BCG”) Report entitled How Diversity Teams Boost Innovation (January

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2018), notes that “increasing the diversity of leadership teams leads to more and better innovation and improved financial performance.” Another BCG study found that “companies that reported above-average diversity in their management teams” also reported higher revenue than companies with below average leadership diversity.

Social Media and Cable News Increase Urgency of Effective D&I Programs Social media and the “24-Hour News Cycle” have made it imperative that companies implement effective D&I practices–before they encounter a “diversity crisis.”

Twitter, Facebook, YouTube, and other social media have created a new environment that immediately informs the public of serious allegations of discrimination. Now, a single complainant with a compelling, or “chilling,” story (whether true or not) can reach a far greater audience than the most widely disseminated brand advertising campaign.

There is little room for error or time to “catch up” once bad news breaks. If a company is not prepared, it may lose customers and antagonize other stakeholders, before it even knows the onslaught has begun.

Congressional Demographics and Democratic Control The shift to a Democratic majority in the House of Representatives will significantly affect the Financial Services industry.

This Congress is the most diverse in history, with “a record-breaking number of women, 125” and the highest level of minorities, 21% (“Congress’s incoming class is younger, bluer, and more diverse than ever,” Politico, January 7, 2019). 100 female Representatives comprise 23% of all Members. In addition, with 54 African Americans, 42 Hispanic Americans, 14 Asian Americans, and 4 Native Americans, minorities comprise 25% of the

House. For the first time, minorities and women make up more than 40% of Congress.

What Should Financial Services Companies Do?

The Speaker of the House is a woman, and two of the next three top leaders are African Americans (House Majority Whip James Clyburn (D-SC) and Democratic Caucus Chair Hakeem Jeffries (D-NY)).

First, fully assess current levels of D&I performance. The Joint Standards can help, but are, at best, an incomplete list of “best practices.” Each company should have specific areas of need and enhancement.

25% of House Chairmanships are held by women and 40% by minorities. The Financial Services Committee is Chaired by Maxine Waters (D-CA), an African American woman who has been a vocal advocate for corporate diversity and inclusion. Of six subcommittees, five are chaired by African Americans (one of whom is a woman, Joyce Beatty (D-OH)), and the other by a woman (Carolyn Maloney (D-NY)). One of the three Illinois Representatives on the Financial Services Committee, Jesus “Chuy” Garcia, is Latino.

Second, analyze how D&I can improve “your” business performance. Those same mechanisms will project a positive image to regulators, stakeholders, and the public at large.

Chairwoman Waters was a principal author of the “Diversity Provision” of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), that, among other things, created Offices of Minority and Women Inclusion (“OMWI”) at each federal agency with responsibility for financial services, and mandated annual D&I surveys of financial services companies.

The final Dodd-Frank implementing regulations created “Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies” (“Joint Standards”), but made the corporate D&I self-assessments voluntary. This earned a public rebuke from then-Ranking Member Waters and Congresswoman Beatty, who stated that the clear statutory intent had been to mandate assessments and reporting. You can most likely expect a change in this regulation.

As the Chairs of the full Committee and the new Select Subcommittee on Diversity and Inclusion, respectively, Congresswomen Waters and Beatty are in positions to enforce their vision of the Dodd-Frank Diversity Provision.

In her first policy speech as Chair, Congresswoman Waters took pride in her co-authorship of the Dodd-Frank Diversity Provision, and stated: “But we all know, that laws that promote racial, ethnic, and gender equality are only as strong as the implementation and enforcement of those laws. And congressional oversight is essential to ensure that implementation and enforcement are strong.”

Congresswomen Waters and Beatty have indicated they will use their positions to “require greater federal oversight of the D&I performance” of financial services companies.

Third, engage with stakeholders, including employees, customers, community, regulators, and elected officials, to develop a reputation (supported by fact) for positive D&I accomplishments. This will help protect the company “when,” not “if,” credible discrimination allegations are made, particularly if those allegations “high emotional content” in diverse communities.

Fourth, lead and train to avoid inappropriate manager and employee behavior. Financial institutions with thousands, or tens of thousands, of daily transactions will experience problems. Be prepared to promptly address issues as they arise, both substantively and with an appropriate communications and outreach strategy—get ahead of potential problems.

Fifth, to avoid problems wherever possible, and mitigate those that do arise, have a strong, positive, and comprehensive D&I program and strategy that is integrated into business operations and effectively implemented “from the Boardroom to the mailroom.”

Conclusion Empirical evidence from trusted business consultants and numerous other knowledgeable sources document that diversity and inclusion are “business imperatives” that improve financial performance. #MeToo, Black Lives Matter, and other social media movements have vastly increased the financial and reputational risks of negative D&I incidents, particularly for highly visible companies with currently positive reputations. Last, but not least, the new Congressional leaders want to make both job opportunities and financial services available equitably to all citizens, including those from under-represented groups.

Financial services companies should act as aggressively on D&I as they do on other corporate priorities. Doing so will generate multiple rewards in reduced legal liability, protection of the corporate brand and customer base, and enhanced business performance.

Weldon H. Latham is Chair, and Michael R. Hatcher a Principal in the Jackson Lewis Corporate Diversity Counseling Group that represents a wide cross-section of major corporations in diversity, employment, and regulatory matters.

May-June 2019 •

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SPECIAL DIVERSITY & INCLUSION SECTION

Ageism in the Workplace

By: Joshua Young, EverFi

Why leadership training programs should be age agnostic.

M

illennials have officially taken over the American workplace—statistically speaking.

According to a recent Pew Research Center report, the Millennial generation is now the largest age demographic active in the American workforce.

Currently, Millennials make up 35 percent of workers, while Gen Xers (33 percent) and Baby Boomers (25 percent) still comprise the overall plurality.

The Millennial labor force will continue to grow, of course, but Pew’s analysis hints that this growth rate will be slower than preceding generations, meaning older employees will continue to dominate the workforce.

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• May-June 2019

Given this noticeable trend, it’s not surprising that according to surveys conducted by CareerBuilder, LLC, nearly 40 percent of respondents reported to a younger manager. Unfortunately, this trend also suggests that far too many businesses are overlooking older employees when filling key management positions. The following are a few of the most common misconceptions that fuel ageism in the workplace.

Why do businesses overlook older workers?

According to the findings of the 18th Annual Global CEO Survey, while 64 percent of responding CEOs had employed strategies to promote diversity and inclusion in their companies, only 8 percent considered “age” as a part of that strategy. As a result, mentoring programs and leadership training tracks often overlook older employees.

Members of the Silent Generation were 10 percent more likely to identify as being engaged at work compared to Millennials.

Many think older workers are too close to retirement to invest in.

A common misconception targeted at older workers is that it is a waste of time and money to invest in their future since they’ll be retiring soon. However, data compiled by Gallup, Inc. uncovered that nearly half—49 percent—of surveyed Baby Boomers planned to work until they were 66 or older, and roughly 10 percent planned to never retire.

In fact, research conducted by the Society for Human Research Management (SHRM) suggests that older employees typically last far longer at each job compared to their younger counterparts. Of the businesses surveyed for the report, only around 10 percent experienced any difficulty in retaining “older workers.”

Ageist stereotypes leave many thinking that older workers can’t learn new skills.

Another fear often cited is that older workers will struggle to learn and retain the skills and information covered in a management training program, which is completely unfounded.

A 2016 study published in the Harvard Business Review (HBR) revealed that two-thirds of workers over the age of 30 were concerned about plateauing skills, with little variance whether the employee was in their 30s, their 40s, or their 60s. Not surprisingly, 72 percent of workers aged 31-45 and almost 60 percent of workers over 45 were actively taking steps to gain new training or sharpen existing skill sets.

Older workers aren’t any more likely to sleep on the job.

found that more workers under the age of 45 were likely to cite being “exhausted” due to their work than those over 45. And workers over 60 were the least likely to make that claim.

In fact, returning to the Gallup research cited above, members of the Silent Generation were 10 percent more likely to identify as being engaged at work compared to Millennials.

Unconscious bias may prevent your company from hiring well-qualified, older workers.

While the previously-cited reasons focus on harmful stereotypes and actively discriminatory behavior targeted at older workers, unconscious bias provides yet another roadblock preventing employers from fully understanding the unique value of older workers.

Depending on how your business has developed its leadership tracks, you may be unintentionally overlooking highly-qualified staff. Does your business only consider graduates of a mentorship program for management training? Do you ignore resumes that appear to be “overqualified?” By artificially limiting the pool of potential candidates, your business might be engaging in “soft discrimination.”

Above all, we recommend that businesses re-evaluate their existing hiring and promotion plans to identify any unintentionally discriminatory practices. In addition, consider opening up internship programs to existing employees, allowing them to develop new skills or explore career changes. And effective diversity training can help your existing management staff to think inclusively when reviewing potential promotions or new hires.

EverFi is an IBA Partner

The stereotype of the sleepy elder turns out to be unfounded. The previously mentioned HBR study

May-June 2019 •

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SPECIAL DIVERSITY & INCLUSION SECTION

Association House Celebrates BankWork$ Financial Careers Training Graduation and Program Expansion

A

ssociation House celebrated the 10th cohort of the BankWork$ Financial Careers Training program on March 8. The graduation and job fair were a milestone for students that was shared with their parents, Association House staff and banking partners, including the Illinois Bankers Association.

25 graduates received certificates of completion and were introduced to bank representatives from across the city, initiating the opportunity to take the next step in their banking careers.

Those in attendance heard from graduate Symone Myvett who delivered the student speech and thanked Association House’s efforts by sharing

This 8-WEEK FREE TRAINING PROGRAM is seeking Chicagoland financial institutions to partner with the IBA, Association House of Chicago and BankWork$© to train young adults from low income and minority communities for lasting financial industry careers.

Interested? Connect with the IBA’s Callan Stapleton at cstapleton@ilbanker.com or 217-789-9340.

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• May-June 2019

“If you are free, you need to free somebody else. If you have some power, then your job is to empower somebody else.” a powerful Toni Morrison quote, “If you are free, you need to free somebody else. If you have some power, then your job is to empower somebody else.”

Enroll today!

(773) 772-7170 Ext. 1050

Financial Careers Training Program

The graduation’s commencement speaker was Felipe Villagomez, Vice President of Deposit Operations for MB Financial Bank, who congratulated the graduates and shared his story in banking to provide takeaways for their upcoming journeys.

“Reflecting on my start and the journey, I’ve come to appreciate banking that much more. It truly is a tremendous industry that offers a lot of growth and opportunity for those who push themselves,” Villagomez shared. “By and large, I think this is true for most banks. They go above and beyond to attract, retain and develop talent. Moving forward, I encourage you to take hold of those opportunities, inside and outside your banks, to continue to grow.”

The Financial Careers Training program will soon expand in Chicago. With a new partnership with Daley College – Arturo Velazquez Institute (AVI), Association House will now operate two concurrent cohorts. AVI is located at 2800 S. Western and will allow for students located on the south and southwest sides of Chicago to have access to the program. Registration for both the AHC and AVI programs has begun.

Two Convenient Locations:

Association House of Chicago 1116 N. Kedzie

Prepare for a career as a: Teller Personal Banker Call Center Specialist

Arturo Velazquez Institute 2800 S. Western Ave.

Receive Career Coaching and Mentoring Job Placement Support Upon Completion Interviews with Bank Partners Eight-week sessions Must be 18 years or older High School Diploma or GED

Visit our website for more information: https://www.associationhouse.org/financialcareers/

You can learn more about the Financial Careers Training program at www.associationhouse.org/ financialcareers.

Association House of Chicago and BankWork$ are IBA Partners

May-June 2019 •

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Future Leaders Alliance

9 1 0 2 F O S S A L C

KELSEY I. KENDALL

Assistant Vice President The Bradford National Bank of Greenville

KARA D. AUSTIN

Electronic Banking Specialist Murphy-Wall State Bank and Trust Company

LAURA L. LAMBERTI

Senior Vice President / Retail Market Manager Busey Bank

JESSICA BROWN

VP / Deposit Operations and Client Services First Bank of Highland Park

TAMI M. LOWERY Credit Analyst Grundy Bank

KARLA A. CAMPO

Vice President, BSA Officer Inland Bank and Trust

JOEL OSCHWALD

Vice President, Commercial Banking Officer Town and Country Bank

KYLIE COVALESKY

Univeral Banker II First National Bank and Trust Company

BRAD PORTER

Center Manager II TheBANK of Edwardsville

KIRSTEN DAVIS-FRANKLIN

Manager, Grassroots and Illinois Bankers PAC Illinois Bankers Association

CHRIS SCHAEFER

Senior Human Resources Administrator - AVP Carrollton Bank

SCOTT W. ELZA

Vice President of Loan Operations First Bank of Highland Park

CODY R. SIMMERMAN Credit Recovery Officer Farmers State Bank of Alto Pass

MATT FAIRCHILD

Senior Vice President - Commercial Lending Hickory Point Bank & Trust Co.

RACHAEL A. SLOAN Administrative Assistant Raritan State Bank

ADAM HUSKAMP

IP Supervisor / Implementation Specialist TheBANK of Edwardsville

MITZI TAMAYO

Credit Analyst Associate I Byline Bank

JOSH ISHMAEL

Senior Vice President and General Counsel Illinois National Bank

TRAVIS THOMPSON

Senior Advisor, Commercial Banking First National Bank

KATHY KELLERMAN

AVP Cash Services / Teller Supervisor Murphy-Wall State Bank and Trust Company

Congratulations • 14 •

Graduates

• May-June 2019

FELIPE VILLAGOMEZ AVP Deposit Operation Manager MB Financial Bank, N.A.

FLA UPDATE

Congratulations to our FLA Scholarship Recipients!

FLA Class of 2020 Scholarship

Save the Date!

Kira Pirtle, State Bank of Bement – People’s Bank & Trust scholarship - $1,495

FLA Summit • October 9-10 Hyatt Place • Champaign Don’t Miss: • Presentation Skills: How to Serve on a Board or Committee – Donna Flynn, CEO, SkillsMastery Group, Inc. • Driving Brand Loyalty in the Experience Economy – Steve Sievert, EVP, Marketing & Brand Comms, PULSE • Journey to the Dark Web – SBS CyberSecurity • Bank Simulation – Brian Hoffman, President, Illinois Bankers Business Services Whether you have participated in the FLA bank sim or not, come back and challenge your fellow FLA Alumni!

Brandon Svela, Central Bank Illinois – FHLBC & IBA scholarship - $1,000 Josh Wohltman, Bank of Belleville – FHLBC & IBA scholarship - $1,000

ABA GR Summit Scholarship for FLA Alumni Kathy Kellerman, Murphy-Wall State Bank and Trust Company - $750

Plus! Join us for a night of friendly competition and fun as the FLA Alumni challenge the FLA’s current class of students to a Scavenger Hunt Pub Crawl in Champaign. Does your team have what it takes to win the grand prize? Mark your calendars!

Kylie Covalesky, First National Bank and Trust Company - $750

CONGRATULATIONS Illinois Bankers CLASS OF 2019 Future Leaders Alliance

Angela Pollock Class of ‘08

Rachael Sloan Class of ‘19

Sarah McCleery Class of ‘16

Mark Simpson Class of ‘14

RARITAN STATE BANK IS PROUD OF OUR

ALUMNI!

The Illinois Bankers proudly recognizes our very own Kirsten Davis-Franklin as an FLA graduate! We are beyond grateful for your dedication to advance your knowledge and connect with the financial services community.

KIRSTEN DAVIS-FRANKLIN Manager, Grassroots & Illinois Bankers PAC

May-June 2019 •

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FLA UPDATE Join our Facebook Group!

FLA DISCOUNT CODE

Exclusive Opportunity for FLA Students and Alumni Are you a member of the new FLA Facebook group? Membership within the group is growing, and if you’re an FLA Alum, we want you to be a part of it, too! Our group serves as a platform for networking, mentoring, recognition and, of course, fun for all FLA students and alumni. On this page, we post

upcoming IBA events, FLA specific functions, pictures, videos, polls, news articles, etc. Likewise, if there is something you’d like to post (e.g. questions, promotions, past pics from your FLA days), by all means, POST! Find us on Facebook at IBA Future Leaders Alliance and click “join.” See you there!

Questions or comments about the Future Leaders Alliance?

Connect with the IBA’s Cassie Mattson, cmattson@ilbanker.com.

Congratulations, Jessica and Scott We are grateful for your leadership, expertise and commitment to First Bank of Highland Park as we deliver banking solutions throughout the Chicagoland area. Congratulations on completing the Future Leaders Alliance Program.

Jessica Brown

Scott Elza

Vice President Deposit Operations / Client Services Manager

HIGHLAND PARK 1835 First Street 847.432.7800

• 16 •

Vice President Loan Operations

NORTHBROOK 633 Skokie Boulevard 847.272.1300

• May-June 2019

FIRSTBANKHP.COM

We are excited to roll out an exclusive discount code just for FLA. From this point forward, all FLA Alumni have the opportunity to receive 10% off all of IBA’s major conferences or networking events! In order to secure the discount, you must register individually, and not with others from your team. Let the savings begin!

Contact the IBA for your code.

Congratulations Congratulations to Karla Campo on completing the Illinois Bankers Future Leaders Alliance Program.

Your Inland Bank family is proud of your achievement.

MOST

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Contact Sue Kling, Regional Director, at skling@promnetwork.com or (866) 776-6426, ext. 3423.

Reciprocal deposits are a win-win for banks and the communities they serve.

To learn more, visit www.promnetwork.com/no-longer-brokered.

May-June 2019 •

• 17 •

IT’ S HIP in AUST IN!

ANNUAL CONFERENCE

2019

June 23-25 * JW Marriott * Austin, TX CONCURRENT SESSIONS (60 minutes) The Regulators’ Perspective: Navigating the Supervisory Landscape

Securing Long-Term Deposits: IRAs

Maureen Revak, CISP, Director of Business Development, Ascensus

Moderator: Bruce Jay Baker, Executive Vice President and General Counsel, IBA

People and Digital Transformation: The Future of Community Banks

Panelists: John P. Conneely, Regional Director; Kerri A. Doll, Director, Division of Banking, IDFPR; Mark Medrano, Assistant Vice President, FRB Chicago; Blake Paulson, Deputy Comptroller, Central District, OCC; John J. Schroeder, Regional Director, CFPB

Growth Strategies in the New Banking Environment

Executive Briefing on Current Issues and Opportunities for Banks

Robert M. Fleetwood, Partner, Group Co-Chair, and John M. Geiringer, Partner, Regulatory Section Leader, Barack Ferrazzano Financial Institutions Group

Top 10 Tips for Achieving Sales Excellence (From the Movies)

Joe Micallef, President, Sales Strategist and Sales Coach, Grow UP Sales

Impact of CECL and Approach to Implementation John Behringer, CPA, and Justin Freeman, Partners, Risk Advisory Services, RSM US LLP

NEW! FLASH SESSIONS (25 minutes) Culture and Conduct Risk: How a Strong Culture of Compliance Can Mitigate Risk Jessica Caballero, CRCM, Senior Manager, Strategy and Evangelism, Abrigo

Timothy Reimink and Thomas Grottke, Managing Directors, Crowe LLP

Sean Payant, Ph.D., Chief Consulting Officer, Haberfeld Associates

Take the Money and Run: Multiple Ways to Finance Your Acquisitions and How Each Will Impact Transaction Timing, Regulatory Compliance and Your Shareholders

Jude Sullivan and Mark Ryerson, Partners, Howard & Howard Attorneys PLLC

Raising Capital in Today’s Regulatory and Economic Environment Kip Weissman, Partner, Luse Gorman

Bank Executives: What's Your Cyber Responsibility?

Chad Knutson, CISSP, CISA, CRISC, Partner, Senior Information Security Consultant, SBS CyberSecurity, LLC and President, SBS Institute

Merger & Acquisition and Industry Update

Curtis Carpenter, Principal and Head of Investment Banking, and John Adams, Vice President-Investment Banking, Sheshunoff & Co

KEYNOTE

PRESENTAT IONS

Stand Out from the Crowd: Out-Perform, OutThink, Out-Lead and Out-Sell the Competition CONNIE PODESTA is a gamechanging, idea-generating ball of fire whose rare blend of humor, substance, style and personality have made her one of the most memorable, in-demand speakers in the world today. In this keynote presentation, Podesta will bring out your edgy, creative, competitive side as she takes you inside the minds of today's savvy, but super-demanding marketplace and delivers powerhouse strategies that will help you increase sales, profits, goodwill and your customer base.

Delayed Gratification in 2019 PHILIP ORLANDO is the chief equity strategist and the head of the Client Portfolio Management team at Federated Investors, Inc. The year 2018 was the worst for the financial markets since the

SPECIAL

“Great Recession” a decade ago. The confluence of politics, economics and financial-market performance has never been more important. Join Orlando as he shares his candid views on what all of this collectively means for the markets and the economy going forward.

Making an Impact DR. RICK RIGSBY delivered one of the most passionate speeches ever heard in 2017, and over 200 million people worldwide viewed it in a video that went viral in just a matter of days. We invite you to rediscover what is really important and meaningful, not only in your professional career but in your personal life as well. In this closing keynote, Rigsby shares the wisdom of past generations – wisdom that will inspire, motivate, and empower you to make an impact rather than an impression!

EVENT S

Sunday, June 23

7:30 a.m. (bus departure) / 8:30 a.m. (shotgun start) ILLINOIS BANKERS PAC GOLF OUTING Experience the beauty of Austin during the Illinois Bankers PAC Golf Outing at Falconhead Golf Course.

9:00 A.M. – 2:00 P.M. AUSTIN PAC CRAWL You’re sure to have an “explosively” fun time on the Austin PAC Crawl! Austin is home to a stunt ranch that enhances film, TV, and commercial productions by filming special effects and pyrotechnic shots.

Register at ilbanker.com

Special Outside Bank Director Discount * Save $300 by using promo code DIRECTOR*

Monday, June 24

8:00 A.M. – 3:00 P.M. WACO AND MAGNOLIA MARKET (SPOUSE/GUEST OPTIONAL TOUR) Take an Austin Detour to Waco, hometown of HGTV’s “Fixer Upper” with Chip and Joanna Gaines. The first stop is Magnolia Market by Joanna Gaines. After perusing the shop, enjoy a picnic lunch and a tour around Waco to get to know the historic town that is home to Dr Pepper and Baylor University.

7:00 P.M. – 10:30 P.M. DINNER, BANKER OF THE YEAR AWARD, ILLINOIS BANKERS PAC SILENT AUCTION, ENTERTAINMENT Enjoy authentic and delicious Austin cuisine, the popular silent auction benefiting Illinois Bankers PAC and the announcement of the prestigious Banker of the Year Award followed by entertainment with the PDA Band!

May-June 2019 •

• 19 •

Why is a Merger/Acquisition the Best Time to Negotiate Your Core Vendor Contract?

By Peter Kay, Remedy Consulting

S

o, your Board of Directors has finally decided to acquire that competitor in the next county, expanding your bank’s footprint.

You are the CEO, and this brings an endless list of tasks. Your job just became everything from managing the transition to determining the final staff count of the merged entity. In all the activity created by the acquisition, one important task is often forgotten: Pull both (survivor and acquired) core vendor contracts out of the drawer, and proactively begin a discussion with each vendor.

inherent efficiency can be gained in the extension of your core contract.

After managing Contracts and Pricing for one of the large core providers, it always amazed me how few bank executives took advantage of an acquisition as an opportunity to renegotiate their contracts. I expect that this is just because of the volume of responsibility that overwhelms a CEO or CFO at the time of the acquisition. Vendor contract negotiations are overlooked for areas that are seen as higher priority.

A ‘Use Case” for Proactive Negotiations Let’s use a Use Case to show the dollars involved: Using a hypothetical Bank A which acquires Bank B, the questions that management will face related to the two vendor contracts are:

• What vendor does Bank B use to provide their

services — the same or a different vendor from Bank A?

• Which products from either bank will survive the merger?

• Most contracts contain an exclusivity clause

which says that, upon merger, the surviving bank must use their current vendor for all services. Bank A cannot run both Bank A and Bank B’s contracts out to their natural termination dates.

• The result is that Bank B’s contract will be subject

Improving the Merger Efficiencies Simply put, your Board made an acquisition decision because they felt that the combined entity could be run more efficiently than two banks individually. No doubt when they were making that decision, it was based on a financial multiple or the understanding that they could eliminate overhead in staffing or other redundant services. What many banks forget is that another

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• May-June 2019

to early termination penalties. The management team must find out how many months are left on Bank B’s contract, and what Vendor B’s (Bank B’s vendor) estimate is of those early termination fees.

• What is Vendor B’s estimate of deconversion fees?

What are Vendor A’s estimates for conversion fees? (Yes, the surviving bank will pay for both conversion and deconversion work at the time of the merger.)

• If both banks have the same vendor, what

products will the combined bank use after the merger? Will any of Bank A’s products go away in favor of Bank B’s products? If so, those products in Bank A’s contract will also be subject to early termination fees.

We can look at just the early termination fees to illustrate the impact. If Bank B was paying $50k per month to their vendor, they have 30 months left on their contract, and their early termination/ liquidated damages clause reads 80%, then back-ofthe-napkin math suggests that the invoice you can expect from Vendor B would be: $50,000 x 30 months x .80= $1.2M in early termination fees. Nothing to sneeze at.

How Can a Bank Use This to Its Advantage?

Someone once said, “You only get what you negotiate.”

Someone else said, “Time is Money.”

They were both right.

This is where you need to stop thinking like a banker and think like a vendor. There are three major circumstances that increase a vendor’s revenue: 1. A growing client-bank 2. Bank buys additional services from the vendor 3. Bank extends contract term You can check the box for item # 1 above. You are also likely to purchase new products during the merger process, so you are definitely going to be on your vendor salesperson’s radar.

Some things to think about for the CEOs and CFOs out there: 1. If you have two different vendors. That means that you have two different sales teams competing for your business. Use that to your advantage.

The sales team for Vendor B is owed a termination fee, but they’d rather have the recurring revenue stream for the combined Bank for a longer contract term, so you should see what their best offer is to steal the business from Vendor A. Use that offer in your discussions with Vendor B, even if you are not sure that you would change vendors for the surviving bank.

2. If both Banks used the same vendor (regardless of whether they are on the same core platform), Bank B will still be subject to early termination fees. Find out if the vendor will negotiate a reduction in those fees for an extension of Bank A’s contract, since they will get the combined revenue of the merged bank.

3. If Bank B (the smaller, acquired bank) paid less (on a per- account basis) than Bank A, then Bank A has an argument that they are overpaying in the market. If time is at a premium and you don’t opt to bring this up with the vendor immediately, this is certainly something to consider at your next contract negotiation.

Acquisition time, whether that be a branch acquisition, the acquisition of an entire FI, or an acquisition of a loan portfolio, is the perfect time to review your contracts. Why? Because it is a unique opportunity where your vendor will fall into more revenue, simply because of an acquisition that you initiated.

Vendors generally charge by the drink (per transaction, per account, per asset, etc.) and you just did them a big favor by adding volume. Once the acquisition is complete, this window of opportunity to negotiate will close, so act quickly when an acquisition is pending.

Much of what is discussed in the example above is predicated on the fact that the CFO must have someone on her team who can quickly analyze Vendor A’s rates and contract terms vs. Vendor B’s. If time is limited and you need to bring in a contract expert to analyze the two contracts, the savings of an intelligently negotiated contract during an acquisition always outweighs the fees you will pay to get the work done.

One of those vendors is going to win some new business, so make sure you understand which bargaining chips you hold and see which vendor will make the better offer. This is an oftenoverlooked efficiency that can be gained as part of a merger/acquisition.

About the author: Peter Kay is a Senior Director at Remedy Consulting. Remedy Consulting is a Bank Advisory firm specializing in Technology Systems Selections, Mergers and Acquisitions and Vendor Contract Negotiations. He can be reached at peterkay@ remedyconsult.net or call him directly at 630-294-9566. IBA Associate Member

May-June 2019 •

• 21 •

By Julie Stackhouse, Executive Vice President, Federal Reserve Bank of St. Louis

Banking on "Bank On" A

ccording to the Federal Deposit Insurance Corp. and the Census Bureau, about 1 in 4 households either do not have a savings or checking account, or do, but also rely on firms such as check cashers and payday loan centers for banking services. It’s alarming because banking products are generally more cost effective than similar services from alternative providers. Moreover, a banking relationship can promote savings and provides a pathway to more sophisticated products and services.

Bank On Basics The first Bank On initiatives sprung up in New York and San Francisco in 2006. In the dozen years since, more than 75 additional cities have formed Bank On coalitions. In 2012, a nonprofit organization called the Cities for Financial Empowerment (CFE) Fund began providing technical assistance, grant funding and other services to Bank On coalitions. The CFE Fund also set out standards1 for Bank On accounts to promote both low cost and low risk for customers.

Standards include: • An initial deposit of $25 or less • A $5 maximum monthly maintenance fee • A $2.50 maximum out-of-network ATM charge • No overdraft fees • Free online bill pay and in-network ATM access • Direct deposit

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• May-June 2019

Currently, 31 banks and credit unions—including some of the nation’s largest banks—offer certified Bank On account products that meet the Bank On National Account Standards. With more than 21,000 bank and credit union branches offering accounts, the program has a national reach.

Measuring Bank On Effectiveness Such programs are laudatory. But are they effective?

Last year, the CFE Fund saw the opportunity to assess Bank On’s effectiveness. The St. Louis Fed, as a neutral party, was selected to analyze account data collected by four large financial institutions.

The results of the analysis are encouraging! The collected data indicate that: • Bank On customers use their accounts like typi-

cal bank customers, with about one-third taking advantage of direct deposit and more than threefourths making debit transactions.

• Account holders—many of whom were previously

unbanked—are digitally active and make extensive use of online and mobile banking services.

• Despite early fears, Bank On accounts do not

“churn.” They have similar closure rates (25 percent) to other bank accounts.

In short, these accounts perform in a manner consistent with that of a bank’s existing customer base and at similar costs. As an added benefit for banks, data regarding account usage can be analyzed at the ZIP code level, allowing participating institutions to include Bank On accounts as a measure of access to financial services for Community Reinvestment Act purposes.2 Supporting financial institutions in meeting the needs of consumers with low-to-moderate income is important to the Federal Reserve System. For that reason, the St. Louis Fed will collect and analyze Bank On account data in 2019, expanding the analysis to nearly all financial institutions that offered a Bank On certified account in 2018.

Notes and References 1 See the Bank On National Account Standards published by the Cities for Financial Empowerment Fund.

2 The Community Reinvestment Act is a federal law that requires regulators to assess the lending and investment record of each bank or thrift in helping to fulfill its obligations to the community. A bank’s CRA evaluation is taken into account when approving mergers, charters, acquisitions, branch openings and deposit facilities.

ABA CRCM

EXAM PREP

Editor’s Note: IBA-Supported “Bank On” Legislation Advancing in the General Assembly There is currently legislation moving through the Illinois General Assembly (Senate Bill 1332) which would expand the Bank On program in Illinois. This legislation is an initiative of State Comptroller Susana Mendoza and it is supported by the IBA, CBAI, and the credit union league. SB 1332 creates a statewide version of Bank On focused on providing banking services in rural and underserved areas. As of April 4, 2019, this legislation had passed the Illinois Senate and must now be considered by the Illinois House.

If you have any questions about this legislation, contact our Government Relations Department at 217-789-9340.

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May-June 2019 •

3/28/19 5:35 PM

• 23 •

CONNECT WITH OUR PREFERRED VENDORS ABA INSURANCE SERVICES Richard Flenner | 800-274-5222 ext. 1325

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

Property • Blanket coverage Buildings & Contents • Broad Perils • Earthquake & Mine Subsidence

D&O Liability • Management & Professional • Securities coverage • Depositor Liability • EPLI • Fiduciary and Lender Liability • Trust E&O • Cyber Liability

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 • 24 •

• May-June 2019

ABG RETIREMENT PLAN SERVICES Pat Bearss | 309-397-5039 APPI ENERGY Jane Seagraves | 800-520-6685 ASCENSUS Heather Hoskins | 800-346-3860 BANKER’S DASHBOARD Bob Reid | 800-933-2211 ext. 159305 BANKMARKETINGCENTER.COM Keith Pagel | 404-943-4632 BANKTALENTHQ.COM Brian Hoffman | 217-789-9340 DELUXE CORP. Bob Reid | 800-933-2211 ext. 159305 FLOODPLAIN CONSULTANTS INC. Craig Callahan | 317-858-4420 INVESTORS TITLE INSURANCE GROUP Mike Uhland | 800-326-4842 KEYSTATE CAPTIVE MANAGEMENT Travis Holdman | 260-227-0265 OFFICE DEPOT Isaac Mares | 855-337-6811 ext. 12878 SBS CYBERSECURITY Dennis Sparrow | 314-276-4610 VERAFIN Gary Dawson | 866-781-8433

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

By Brian Hoffman, President, Illinois Bankers Business Services

PREFERRED VENDOR

Increase Your Non-Interest Income and Your Bottom Line

Is your bank hoping to increase non-interest income while continuing to provide quality service to your customers? Ownership in a title insurance agency can be the answer.

Benefits of Ownership in Multiple-Owner Agency

A long-time preferred vendor of the Illinois Bankers Association, Investors Title Insurance Company operates and manages two growing bank-owned title agencies in the state of Illinois.

By gaining ownership in a title company, your bank would contribute to the success of the company by generating title work and closing activity on your loan requests and would earn revenue as an owner.

Both Illinois title insurance agencies have built teams of knowledgeable experts who offer innovative business solutions, exceptional products and excellent customer service. They pride themselves in consistently delivering outstanding title and settlement services to financial institutions, lenders, attorneys, realtors and builders doing business in Illinois. They also coordinate and underwrite even the most complex local and outof-state commercial transactions.

Services include:

In addition to its main office in Springfield, Illinois Real Estate Title Center, known locally as “The Title Center,” serves Central Illinois through eight branch offices spanning from Quincy in the west, Champaign in the east, and Peoria in the north, and it has more than 20 bank owners.

Located in Edwardsville, Southern Illinois Real Estate Title Center is owned by six banks and is licensed in Illinois and Missouri.

Experienced Leadership

• Natural extension of real estate

• Residential and Commercial

A lifelong resident of Springfield who has managed the Springfield agency for the past 16 years, Dana Lyons brings a wealth of experience to her new position with Investors Title as vice president of multi-state marketing. Dana will leverage her exceptional success with The Title Center to oversee the Illinois agencies, helping to expand their current portfolio of business and further develop opportunities in the state of Illinois.

• Impressive ROI with long-term

Title Insurance

• Closing Protection Letters • Comprehensive Settlement Services

• Remote Closing Ability • Facilitation of Deed Preparation • On-Site Certified Commercial Underwriter

• 1031 Like-Kind Exchanges • Construction Disbursement Services

• Requires lower capital outlay • Industry experts manage operations

• Outsourced management & oversight requires minimal direct oversight by owners

• Agency benefits from all referring partners

In the formative year for the Illinois Real Estate Title Center, I attended three meetings convened by the IBA in association with Investors Title Company. By the third meeting, six Illinois community banks were convinced that a modest investment by each would be sufficient to start a de novo title agency owned jointly by the investing banks. Little did we know at that time how wildly successful the agency would become. With the initial hiring of Dana Lyons to manage the operation, the agency immediately gained respect in the marketplace and grew rapidly. Bank & Trust Company has received an extraordinary return on its investment, and our clients have received quick, professional service on their title services.

Kent Redfern, Bank and Trust Company, Litchfield

lending

growth potential

• Significant fee income opportunity

• A business model that capitalizes on economies of scale

To learn more about the advantages of ownership in one of our title insurance agencies or a new agency, please contact bhoffman@ilbanker.com or Dana Lyons at dlyons@invtitle.com.

May-June 2019 •

• 25 •

PREFERRED VENDOR

By

Illinois Real Estate Title Center Acquires First Community Title Services Springfield-based title agency Illinois Real Estate Title Center, LLC, (doing business as “The Title Center”), recently announced its acquisition of First Community Title Services, Inc., (FCT), a subsidiary of Heartland Bancorp, Inc. The acquisition adds FCT’s Bloomington, Champaign and Pekin locations to The Title Center’s existing offices in Springfield, Effingham, Jacksonville, Paris, Peoria and Quincy, providing a total of nine locations for customers to benefit from the same superior service and uncompromising focus on compliance and operational efficiency offered by both organizations.

Leading the continued growth and success of The Title Center is Terry Prillaman, vice president and general counsel for The Title Center and the former FCT leader, and David Coltrin, assistant vice president and operations manager and the former title services manager of FCT’s Pekin office.

Dana Lyons, vice president of multi-state marketing for Investors Title and former agency manager for The Title Center, stated “This merger extends the exceptional service delivered by both organizations to all existing and prospective clients while allowing us to retain and attract exceptional talent and provide associates with exciting career opportunities.”

Lyons will continue to work with The Title Center through Investors Title Management Services, Inc., which manages and oversees The Title Center, and she also served as an advisor for the transaction.

The Title Center is a Preferred Vendor of the Illinois Bankers Association and a 2019 recipient of the Best Places to Work award, which is sponsored by the Springfield Business Journal and United Community Bank. The Title Center began operations in 2002 and provides title insurance and settlement, construction, and escrow services to all counties in Illinois.

• 26 •

• May-June 2019

American Bankers Mutual Insurance Ltd. Declares $2 Million Distribution to ABA Member Banks American Bankers Mutual Insurance, Ltd., the reinsurer for the directors and officers (D&O), bond and cyber insurance program endorsed by American Bankers Association (ABA) and a Preferred Vendor of the Illinois Bankers Association, declared a $2 million distribution to be shared by qualified ABA member banks insured through ABA Insurance Services. 58 Illinois banks will share over $86,600.

This is the 29th consecutive year that the industry’s leading professional liability and bond insurance provider has declared distributions to eligible ABA member banks, bringing the total to $86.3 million since the program’s inception. Over $3.84 million of that has been shared with Illinois banks. Banks that purchase their D&O, bond, cyber and related insurance from this program and are current ABA members are eligible to receive a distribution.

Always your partner, never your competitor.™

Enhance your loan portfolio with SBA

Working through the Small Business Administration loan process requires asking the right questions and assembling the right information. The experts at Bankers’ Bank have the skills and tools to help you avoid the bottlenecks and guide you through the SBA channels, saving you time and getting SBA approval faster.

Our team will provide eligibility reviews, loan packaging, underwriting assistance and facilitate the sale of the guaranteed portion of the loan for immediate fee income.

You will notice more lending opportunities, quicker turnaround times, lower risk and increased profitability for your bank.

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May-June 2019 • • SBA 7(a) • Wealth•Mgmt 27 • • Mortgages Asset Liability Mgmt • Bank Cards • Cash Letter • Commercial • International • Investments • Leasing

February 28 – March 1 Embassy Suites | East Peoria With 8 educational tracks, dynamic keynote speakers and an Exhibit Hall full of ways to “up” your game plan, The ONE was a big hit!

Volunteer of the Year Jan Schramm, Hickory Point Bank, receives 2018 Volunteer of the Year honors from IBA Chairman Dan Daly, SENB Bank.

Schramm is a longtime member and past chairman of the Women in Banking Committee.

The ONE Conference crowd enjoys the opening session with speaker Joe Sullivan.

Attendees had numerous session options with 8 educational tracks from which to choose.

Chris Schaefer, Carrollton Bank (center), receives her Future Leaders Alliance graduation certificate from the IBA’s Callan Stapleton and IBA Chairman Dan Daley, SENB Bank.

HIGHLIGHTS

Attendees interact during Cindra Kamphoff’s presentation.

Joe Sullivan delivers a powerful presentation on “Deepening Human Connections in an Increasingly Digital World.”

• 28 •

• May-June 2019

Kathryn Montgomery Moran with Jackson Lewis presents a breakout session on Employee Handbooks within The ONE’s HR Track.

“Networking Excellence: The Art of Connecting” was the focus of Joe Micallef’s Leadership Development breakout session.

HIGHLIGHTS

IBA President and CEO Linda Koch provides an IBA update for attendees.

May-June 2019 •

• 29 •

HIGHLIGHTS • 30 •

• May-June 2019

THE ONE PAC BREWS

THANKS FOR HELPING US PUT THE

FUN IN FUNDRAISING!

IT’ S HIP in AUST IN!

ANNUAL CONFERENCE

Get weird at Illinois Bankers PAC Events!

Illinois Bankers PAC Golf Outing Sunday, June 23 | 7:30 a.m. (Bus Departs) 8:30 a.m. Shotgun Start

Austin PAC Crawl Sunday, June 23 | 9:00 a.m. - 2:00 p.m.

Silent Auction Monday, June 24 | 7:00 p.m. - 10:30 p.m.

Experience the beauty of Austin during the Illinois Bankers PAC Golf Outing at Falconhead Golf Course. The course was designed by the PGA Tour Design Center.

Regardless of your score, you will have a great time networking with friends, enjoying the beautiful scenery, and supporting Illinois Bankers PAC. Bus transportation, box lunch and beverage cart service will be provided.

Clubs can be rented through the golf course.

You’re sure to have an “explosively” fun time on the Austin PAC Crawl! Austin is home to a stunt ranch that enhances film, TV, and commercial productions by filming special effects and pyrotechnic shots. During this tour, learn firsthand how some of the most iconic movie and television stunts are performed. The PAC Crawl concludes with lunch at a local Austin farm for an authentic farm-to-table meal and libations from locallyloved venues.

The success of this event is equally dependent upon prize contributions and the bidding on items. Please consider donating an auction item. This is one way to help Illinois Bankers PAC even if you aren’t able to attend the conference – although we hope you will! Your personal and/or bank contribution to this year’s auction increases our ability to support state and federal office holders and candidates with views and positions that support our industry.

$175 Bankers/Guests $300 Associate Members (non-sponsoring)

$175 Bankers/Guests $300 Associate Members (non-sponsoring)

Experience Austin with Us! ilbanker.com | 217-789-9340 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.

May-June 2019 •

• 31 •

Bankers Mobilize in Springfield for Economic Investment Day Over 100 bankers united in Springfield on March 12 to advocate on behalf of the banking industry.

The program featured dynamic briefings by Deborah Hagan, Secretary of the Illinois Department of Financial and Professional Regulation, and Attorney General Kwame Raoul on their plans for Illinois in the next 4 years. Chief Economist Scott Colbert from Commerce Bank gave an important briefing on the economic forecast and a financial market update.

At the Capitol, bankers participated in impactful meetings with legislative leaders from the four caucuses, as well as many of the newly elected senators and representatives. Attendees shared concerns about legislation affecting the industry, including banking industry specific taxes, data protection and data breach regulation, and government-run banking initiatives.

It was an exhilarating day of advocating on behalf of the banking industry, and those who attended certainly made an important impact while in Springfield. If you weren’t able to make it this year, we hope you can join us next year! In the meantime, IBA staff is happy to help coordinate an in-district meeting with you and your legislator.

A HUGE THANK YOU TO OUR SPONSORS: Associated Bank, Bank of America, Bank Talent HQ, BMO Harris Bank, Equias Alliance, Federal Home Loan Bank of Chicago, The Huntington National Bank and LKCS. Our Economic Investment Day group pauses for a photo prior to holding meetings at the Capitol.

• 32 •

• May-June 2019

We appreciate your continued support of the IBA’s advocacy efforts. Stay tuned for information on the upcoming 2019 Washington Visit!

Economic Investment Day FLA Alumni Mentorship Initiative The Future Leaders Alliance (FLA) Alumni Program kicked off its mentorship initiative at this year’s Economic Investment Day. Chris Hushka, a 2017 FLA graduate and current FLA Board member, served as one of 4 mentors to the 15 attending current FLA students.

Illinois bankers share current legislative concerns with Senate Republican Leader William E. Brady.

Pictured are Vanessa Lundgren, First Bank of Highland Park, Class of 2020; Kerry Bell, First Bank of Highland Park, Class of 2020; Chris Hushka, CIBC, FLA Mentor & Board Member; Luke Krzesaj, First Bank of Highland Park, Class of 2020; and Paul Carstensen, Hoyne Savings Bank, Class of 2020.

Illinois bankers convene with Senate President John Cullerton to discuss the issues most pressing to our industry.

Attorney General Kwame Raoul addresses Illinois bankers at Economic Investment Day.

House Majority Leader Greg Harris listens intently to issues concerning Illinois bankers.

May-June 2019 •

• 33 •

WELCOME ASSOCIATE MEMBER NEWS Banker’s Toolbox/Abrigo Banker’s Toolbox, which acquired MainStreet Technologies (MST) and Sageworks in 2018, announced that it is now Abrigo. Abrigo also announced the acquisition of Wisconsin-based Farin Financial Risk Management (FARIN).

investments and development services to support community development, was recently selected as a Detroit Free Press Top Workplace 2018.

Cinnaire Cinnaire, a non-profit Community Development Financial Institution (CDFI) that provides creative loans,

onShore Security onShore Security has announced the next evolution of its Panoptic Cyberdefense managed security service to

CRA Partners Ron Brooks has joined the staff of CRA Partners as Relationship Officer.

address the cybersecurity needs of small and midsize banks.

Plante Moran Plant Moran announced that Sherrie Krowczyk-Mendoza has joined the firm as a partner in its financial services practice.

SomerCor SomerCor announced the appointment of Brian Comiskey, CPA, as Executive Vice President and Chief Lending Officer of the firm.

NEW MEMBER BANKS First Federal Savings Bank of Champaign-Urbana The State Bank of Pearl City

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

First For Your Success United Bankers' Bank is proud to be the nation's first and the upper Midwest's largest bankers' bank, covering 14 states and serving over 1,000 community banks from the Pacific Northwest to the Great Lakes. We can't wait to share our passion for community banking with youl

For more information, contact your Illinois Calling Officer: Heather Steger

VP, Correspondent Banking Officer 630.441.5564 heather.steger@ubb.com

First for Your Success'" ubb.com • Member FDIC 800.752.8140

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• May-June 2019

WELCOME NEW ASSOCIATE MEMBERS (as of 4-5-19) BPAS Utica, NY Contact: Odaliza Martinez www.bpas.com BPAS is a national provider of retirement plans, benefit plans, fund administration, and collective investment trusts. With our breadth of services, depth of creative talent, and financial resources, we are well positioned to help our clients solve their benefit plan challenges without the need to engage multiple providers. One company. One call.

Covington & Burling LLP's Financial Services practice is recognized as a leader in the field. Covington advises financial services clients on all types of transactional, litigation, enforcement, regulatory, and legislative matters, including mergers and acquisitions, capital markets, commercial litigation and consumer class actions.

Full line insurance office doing business throughout Illinois. We specialize in Commercial Insurance, including Property, Liability, Auto, Workers Comp, Bonds, and Benefits

ELLIOTT DATA SYSTEMS, INC. Chesterfield, MO Contact: Matt Buydos www.elliottdata.com

ULTIMATE SOFTWARE Westchester, IL Contact: Nick LeNoble www.ultimatesoftware.com

CHATHAM FINANCIAL Kennett Square, PA Contact: David Sweeney www.chathamfinancial.com

EXECUTIVE BENEFITS NETWORK Milwaukee, WI Contact: Elizabeth Wendorf www.ebn-design.com

Ultimate Software delivers a unified, end-to-end HCM cloud solution— everything from HR, to payroll, to benefits, to time & attendance, to recruitment, to talent management—to improve the personal work experience for you and your people — the power behind your business.

Chatham Financial – Financial Institutions Group (“FIG”) is a trusted partner to over 160 financial institutions providing independent expert advisory through proven technology platforms for commercial loan level hedging, balance sheet risk management, hedge accounting and investment portfolio management.

FINPACK Saint Paul, MN Contact: Ben Baltich www.finpack.com

UMS BANKING Glendale, CA Contact: Steve West www.umsbanking.com

FINPACK is credit analysis software that helps commercial and agricultural lenders reduce risk by improving loan service efficiency and documentation. It includes a full range of balance sheet, analysis and projection tools.

UMS Banking has been partnering with Financial Institutions and other strategic partners all across the US to provide the latest payments technology and products for over 30 years.

We work to be an extension of Community Banks in order to provide the best payment solution, business management tools, and software solutions to their customers.

CLEARPOINT ADVISORS, LLC Peoria, IL Contact: Lou Schendl www.clearpointadvisorsllc.com Clearpoint Advisors develops and deploys risk management solutions to assure a bank’s financial, operations, strategies, & compliance risks are assessed, prioritized and monitored in order to maximize it's capital earnings. Risks can include loss of talent, investments, and cyber security to name a few.

COMMUNITY INVESTMENT CORPORATION Chicago, IL Contact: Monica Kirby COVINGTON & BURLING LLP Washington, DC Contact: Michael Reed www.cov.com

GIFFIN WINNING COHEN & BODEWES PC Springfield, IL Contact: Herman Bodewes HOWELL FINANCIAL SERVICES, INC. Sparta, IL Contact: Michael Howell

VANGUARD Wayne, PA Contact: Tiffany Culver

RUFF, FREUD, BREEMS & NELSON LTD. Chicago, IL Contact: Jennifer Breems

Since its beginning in 1975, Vanguard has grown to become one of the world’s largest investment management companies, with more than $4.51 trillion in U.S. fund assets as of December 31, 2018. Vanguard provides an extensive array of investment products, including a full range of low-cost ETFs and mutual funds.

SCHMALE INSURANCE AGENCY, INC. Belleville, IL Contact: Richard Sedlak

WOOL CAPITAL PARTNERS, LLC Northbrook, IL Contact: Gary Wool

KESTNER INSURANCE Chatham, IL Contact: Randall Kestner

May-June 2019 •

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ON THE MOVE

Aurora

OLD SECOND NATIONAL BANK Mary VandeVelde has been named senior loan officer with Old Second National Bank’s Mortgage division.

VandeVelde

Rosacker

Russel

McAdam

Bettendorf, IA

QUAD CITY BANK & TRUST Quad City Bank & Trust is proud to welcome Caitlin Russell, Senior Vice President of Russell, a local construction and development firm, to its Board of Directors.

Bloomington, MN

Johnson

Snyder

UNITED BANKERS’ BANK William “Bill” Rosacker is retiring as President of United Bankers’ Bank (UBB) after more than 34 years with the company and over 51 years in banking.

Rosacker officially stepped down on April 30.

Chicago Marroquin

Marshall

REPUBLIC BANK OF CHICAGO Dave Papritz has joined the bank as Executive Vice President and Chief Financial Officer.

SIGNATURE BANK Brandon Q. Tran to Vice President of Commercial Banking.

DeFauw

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LaMorte

• May-June 2019

WINTRUST Michael McCracken has joined Wintrust as Senior Vice President and Business Banking Team Lead.

Decatur

HICKORY POINT BANK Scott MacAdam has been named Senior Investment Officer and chairman of Hickory Point Bank’s Trust Investment Committee.

Edwardsville

THE BANK OF EDWARDSVILLE Linda Funk has joined TheBANK in the Business Development.

Forreston

FORRESTON STATE BANK Forreston State Bank has announced that Betsy Johnson has been named President and Chief Operating Officer (COO), and former president Jeff Snyder was elected Chairman of the Board of Directors and Chief Executive Officer (CEO). Snyder had served as President and CEO of Forreston State Bank since 1996 and will continue to be actively involved in management of the bank.

Itasca

ITASCA BANK & TRUST CO. Angelo M. Marroquin, CTFA, JD, was appointed Vice President and Trust Officer; Nicole Marshall was appointed Vice President and Commercial Loan Officer; Marc DeFauw, CPA, was appointed Senior Vice President and Chief Financial Officer; and Scott LaMorte was recently appointed Vice President of Business Development.

Lanark

EXCHANGE STATE BANK Exchange State Bank announced Matthew P. Zumdahl as its new president. Former President John H. Nelson will remain with the bank as vice president and will continue to serve as chairman of the board for both Exchange State Bank and Lanark Bancshares Inc., the bank’s holding company.

Mattoon

FIRST MID BANK & TRUST Clay Dean and Mandy Lewis were each promoted to Executive Vice Presidents.

Northbrook

FIRST BANK OF HIGHLAND PARK Claudie Phalen to AVP/Business Banking Credit Officer.

Pinckneyville

MURPHY-WALL STATE BANK AND TRUST COMPANY Murphy-Wall State Bank and Trust Company has announced several promotions. Kyle W. Davis has been promoted to Vice President, Commercial Lending Officer and Branch Manager; Chrissy Hagene has been promoted to Assistant Vice President/Assistant Branch Manager; Monika Bajan Holder has been promoted to Vice President/Training Specialist/ Administrative Assistant; Kathy Kellerman has been promoted to Assistant Vice President/Teller

Supervisor; Candice Knight has been promoted to Vice President/ Retail Banking and Marketing Officer; Jennifer Pauley has been promoted to Assistant Vice President/HR & Payroll Clerk; Joshua Rakers has been promoted to Vice President/Branch Manager & Assistant BSA Officer; Bailey Thompson has been promoted to Assistant Vice President/ Assistant Branch Manager; and Jenn Tritschler has been promoted to Assistant Vice President/New Account Supervisor.

Rochelle

Dean

Lewis

Davis

Hagene

Holder

Kellerman

Knight

Pauley

Thompson

Tritschler

STILLMAN BANK Susie Nordstrom has joined the bank as a mortgage lender out of the bank’s Rochelle office.

Sandwich

HEARTLAND BANK Ashley Copeland has been named retail manager for the Sandwich office.

Rakers

May-June 2019 •

• 37 •

NEWS & NOTES

Gleason and Winebaugh Named to Council for Sound Tax Policy The Leaders Bank President Bill Gleason and IBA director of government relations Aimee Winebaugh were Illinois representatives named to the Council for Sound Tax Policy board of directors as the nonprofit organization establishes its federal and state legislative priorities for 2019-20.

CSTP was formed in 2015 to research, inform policy discussions, and advocate for meaningful tax reforms that protect taxpayers.

The Council for Sound Tax Policy (CSTP) was established as an authority on banking and financial policy, making it the go-to think tank for national banking associations, elected officials, the media, and other stakeholders in the debate over financial policy.

The Council is dedicated to the promotion of tax policies that adhere to the principles of simplicity, transparency, neutrality, stability and economic liberty.

Their focus is to encourage policies that improve economic growth while facilitating sound federal and state tax policy.

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• May-June 2019

In Memory of William L. Conaghan Longtime banker William L. Conaghan passed away on March 29. Conaghan had served as President and CEO of Bridgeview Bank in Bridgeview, Ill., since 1995.

A graduate of John Marshall Law School, he also had been a partner at Vedder Price and served as general counsel for the Illinois Commissioner of Banks and Trust Companies prior to joining Bridgeview Bank. The IBA extends it condolences to the family and friends of Bill Conaghan.

Last year, the Council for Sound Tax Policy played a key role in advocating in Congress to help provide regulatory relief to Main Street small businesses and consumers. President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) into law in May of last year. The bipartisan legislation now law, championed

by Sen. Mike Crapo (R-Idaho), included a diverse set of regulatory reforms and commonsense solutions CSTP endorsed that will ease a portion of the regulatory burden that community banks carry and directly benefit Main Street businesses and farmers.

Learn more about the Council for Sound Tax Policy at www.soundtaxpolicy.org

Stan Jenks Named Citizen of the Year Each year, the Monmouth, Ill., Area Chamber of Commerce recognizes an individual for his or her leadership and effort to improve the quality of life in the community. Their 2019 Citizen of the Year award was presented to IBA Board member Stan Jenks, President and CEO of Security Savings Bank.

Nominations for the award come from local citizens who have observed the selfless work these individuals have contributed.

Congratulations to Stan Jenks!

First Mid Bank & Trust Recognizes Top Volunteers As part of First Mid Bank & Trust’s commitment to community, the company encourages its employees to volunteer and give back to local organizations and causes.

In 2018, First Mid employees recorded nearly 20,000 volunteer hours, and they continue to increase this community investment year-over-year. Recently, the top five volunteers for 2018 were recognized for their contributions, and were presented with the opportunity for First Mid to donate $500 towards each volunteer’s charity of choice. The top volunteers were Troy Pfeiffer, Building Service Manager; Fredy Moreno, Retail Loan Officer; Jill Capitosti, Deposit & Treasury Systems Manager; Brenda Bobbitt, Mount Carmel Branch Manager; and James Piper, Network Engineer.

NEWS & NOTES

F&M Bank Celebrates 150 years F&M Bank is celebrating the 150th anniversary of its founding. The charter for The Farmers and Mechanics (F&M) Bank was granted on March 31, 1869. The bank’s founder, Chauncey S. Colton, established Galesburg’s first store and post office, built its first school, and devoted a considerable amount of time toward bringing the railroad through the growing city. When Chauncey and his associates organized F&M, they chose a name that signified the builders of the town, the hard-working farmers and the shoemakers, blacksmiths, carriage builders, and printers— all called mechanics.

“F&M Bank is proud to be a part of the Galesburg, Brimfield and Peoria area communities,” said Doug Sanders, President and Chief Executive Officer. “Of the 436 banks in the state of Illinois, F&M is the 13th oldest and also ranks among the oldest 3% of all banks in the United States.” There will be several 150th anniversary celebrations throughout 2019.

Illinois include: Shelley Rhoades in Sycamore with $31 million in loan volume and 174 closed loans; Kara Morris in Sugar Grove and Yorkville with $28.6 million in loan volume and 145 closed loans; Ryan Gifford in DeKalb with 153 closed loans; and Kelly Jeschke in Marengo with 117 closed loans.

Soy Capital Bank and Trust Becomes First Mid Bank & Trust Soy Capital Bank and Trust (“Soy Capital”) has converted to First Mid Bank & Trust (“First Mid”).

With the completion of this acquisition, First Mid will offer its customers banking convenience through 64 banking centers across Illinois and in Missouri.

HomeStar Bank to Become Part of Midland States Bank First National Bank’s Home Mortgage Division Recognizes Top Performers First National Bank’s Home Mortgage Division has named its Circle of Excellence award winners

for 2018. The Circle of Excellence award recognizes First National Bank’s top mortgage loan originators in terms of closed loans across the company annually.

First National Bank’s 2018 Circle of Excellence award winners from

HomeStar Bank and Financial Services (HomeStar) and Midland States Bank announced that HomeStar will be acquired by Midland States Bank. The banks currently expect the bank merger will occur in October.

ADVERTISING INDEX American Bankers Association Bankers’ Bank (Wisconsin) Howard & Howard Illinois Bankers Group Insurance Trust MIB-Midwest Independent Bank Promontory Interfinancial Network United Bankers’ Bank Wipfli

800-226-5377 www.aba.com 23 800-388-5550 www.bankersbank.com 27 312-372-4000 www.howardandhoward.com 2 217-789-9340 www.ilbanker.com/Insurance/Insurance-Trust 43 800-347-4642 www.mibanc.com Back Cover 703-292-3423 www.promnetwork.com 17 612-881-5800 www.ubb.com 34 800-486-3454 www.wipfli.com 41

May-June 2019 •

• 39 •

EVENTS CALENDAR

SEMINARS, CONFERENCES AND FORUMS JUN 7 Compliance Conference – Naperville JUN 12 Commercial Real Estate Lending

Workshop – Oak Brook JUN 23-25 IBA Annual Conference – Austin, TX JUL 9-10 Branch Management Series – Oak Brook JUL 24 Compliance Hot Topics Forum – Springfield JUL 25 Compliance Hot Topics Forum – Westchester

WEBINARS JUN 3 Key Ratios* JUN 4 25 Baseline Controls Banks Struggle to Implement* JUN 4 The Power of Storytelling* JUN 5 ACH Origination for Lenders and Cash Management* JUN 5 Excel Explained: Pivot Tables 101* JUN 6 Secrets to Being a Great Call Center Agent* JUN 6 Bank Call Report Preparation for

Beginners, Part 5* JUN 6 Tales from the Crypt• JUN 7 Preventing Violence in the Workplace* JUN 10 CRE Lending: Property Types, Lease

Structures and Other Non-Financial Risks*

JUN 11 Notary Public* JUN 11 Upside Down Thinking on Efficiency Do You Have Your Priorities

Backwards? * JUN 12 Check Fundamentals & Check Processing▲ JUN 12 Human Trafficking and Modern Slavery

Impacts on the U.S. Banks • JUN 13 Being Strategic with Base Compensation

for Non-Executive Positions* JUN 17 Evaluating Financial Projections* JUN 18 Improving Employee Performance in

Everyday Work Situations & Reviews* JUN 18 Quarterly Compliance Briefing:

Summer 2019* JUN 19 BSA: Professional Money Laundering Businesses* JUN 20 HMDA Advanced Lessons* JUN 20 Three Key Risk Assessments in Your ERM

Program: ERM, IT, and Internal Controls* JUN 21 Residential Construction Lending* JUN 25 Signature Card Danger Zones* JUN 26 Common Pitfalls of ARM Disclosures* JUN 26 Do’s and Don’ts on Checks* JUN 26 What Exactly are Payments and Why Do I

Need a Payments Strategy?• JUN 27 Records Management and Retention* JUN 28 Role of the Information Security Officer* JUL 17 Check Exceptions: Returns & Adjustments▲ JUL 24 Regulation CC: Updates You Need to Know▲ JUL 24 The Economics of Payments•

IBA * Total Training Solutions • American Bankers Association

▲

ABA ONLINE TRAINING COURSES JUN 3 JUN 10 JUN 17 JUN 24

JUL 15

JUL 22

JUL 29

Marketing in Banking Managing Funding, Liquidity, and Capital Fundamentals of Mortgage Lending The Banking Industry** Consumer Lending Money and Banking Legal Foundations in Banking Marketing Planning Bank Lines of Business** General Accounting Analyzing Financial Statements

** Banking Fundamentals Curriculum (formerly Principles of Banking)

UPCOMING EVENTS June 7 Compliance Conference Chicago Suburbs

September 9-11 Washington Visit Washington, D.C.

June 23-25 Annual Conference JW Marriott Austin Austin, TX

September 16 Fall Golf Outing Pekin Country Club

August 21-22 Ag Banking Conference Crowne Plaza Springfield

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• May-June 2019

September 24-25 Women in Banking Conference Crowne Plaza Springfield October 3 BankTech Conference Hyatt Regency Lisle

October 29 Fall Compliance Conference DoubleTree by Hilton Collinsville November 6 Midwest Bank Leaders Conference Hyatt Regency Lisle

REGISTER TODAY AT ILBANKER.COM!

May-June 2019 •

• 41 •

THE LAST PAGE

BINGO! The IBA puts it's members first, and staff constantly is thinking of ways to best serve them! We also know how to have some fun.

During a recent all-staff meeting, the "Bingos" were flying as we discussed some key initiatives for 2019.

We love our members!

If you have any items or pictures to share on The Last Page, e-mail them to Debbie Jemison at djemison@ilbanker.com.

• 42 •

• May-June 2019

Illinois Bankers Group Insurance Program With the recent transfer of sponsorship of the Illinois League’s long-time Group Health Insurance Trust to the Illinois Bankers Association, now is the perfect time to take a look at all the Trust has to offer!

The Illinois Bankers Group Insurance Trust provides IBA members with a reliable source of competitively-priced, quality group insurance products. All plans comply with the Affordable Care Act THIS MEANS ■ Lower overhead expenses ■ Plan flexibility ■ Individual attention ■ Quality and timely processing of claims ■ COBRA and HIPPA administration ■ Coverage for employees, directors and retirees

COVERAGES INCLUDE ■ Major Medical with prescription coverage ■ High Deductible Health Insurance Plans ■ Dental/Vision care ■ Short/Long term disability ■ Access to Health Savings Accounts ■ Access to Flexible Spending Plans

STRATEGIC PARTNERS

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

Phil Talley Vice President ptalley@ilbanker.com

Hillary Meyers Trust Manager hmeyers@ilbanker.com

Bob Penwell Relationship Manager bpenwell@ilbanker.com

Feel like you’re all alone?

Let us help you face today’s banking challenges.

Ron Hobson VP/Relationship Manager

Joe Kollmeyer SVP/Senior Loan Officer Tom Maassen VP/Loan Officer

Matt Sinnett President/CEO

CORRESPONDENT SERVICES

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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 • Certificate of Deposit • International Services/Foreign Exchange • Safekeeping 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

PERSONAL BANKER SERVICES • Money Market Accounts • Certificates of Deposit • Officer/Director/ Shareholder Loans (Reg O)

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