Illinois Banker Magazine | January - February 2023

for the Illinois Bankers Association and our members! Although many of us were hunkered down in home offices or quiet lobbies, this was a great year to take advantage of all the benefits that IBA membership brings to your institution. In addition to the education and resources, the IBA was able to recognize many bankers and banks for their critical contributions. And, finally, thank you for supporting the IBA as we continue to grow in ways to help you, your communities, and your bottom line. We look forward to an exciting 2022!

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OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

Betsy Johnson Chair Solutions Bank, Forreston

BOARD OF DIRECTORS

Thomas Chamberlain Chair-Elect

Iroquois Federal Savings & Loan Association, Watseka

Anthony Nestler Vice Chair

Hickory Point Bank and Trust Co., Decatur

REGION 1

Rudy Gonzalez CIBC Bank USA Chicago

Frank Pettaway

The Northern Trust Company Chicago

REGION 2

Peter Brummel Grundy Bank

Morris

Courtney Olson First Bank Chicago Highland Park

REGION 3

Lawrence Horvath Heartland Bank & Trust Company

Bloomington

Tyler Rouse First Federal Savings Bank of Champaign-Urbana

REGION 4

Scott Bland First Neighbor Bank N.A. Toledo

Brett Tiemann INB, National Association

Springfield

REGION 5

Rick Parks First National Bank of Waterloo

Bethany Shaw Peoples National Bank

Mt. Vernon

FUTURE LEADERS ALLIANCE BOARD CHAIR

(non-voting member)

Kara Austin Murphy-Wall State Bank and Trust Company

Pinckneyville

MEMBERS-ATLARGE

Gustavus Bahr PNC Bank, N.A. Chicago

Dane Cleven Community Savings Bank Chicago

Megan Collins Bank of America

Chicago

Jim Hannon First Security Trust & Savings Bank

Elmwood Park

Quint Harmon Pioneer State Bank Earlville

Karlie Krehbiel Lisle Savings Bank

Richard Mahoney First Midwest Bank Moline

Michele Petrie Village Bank & Trust, N.A. Arlington Heights

Amy Randolph Busey Bank

Champaign

Steven Rosenbaum

Hoyne Savings Bank Chicago

Matthew Smith First Mid Bank & Trust, N.A. Mattoon

Dan Wujek State Bank of Cherry

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

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@illinois.bank

T.J. Burge Treasurer Community Partners Savings Bank, Salem

Megan Collins Member-at-Large Bank of America, Chicago

Executive Administration

Randy Hultgren, President & CEO

Erich Bloxdorf, Executive Vice President & COO

Mindy Manci, Executive Assistant & HR Manager

Pam Macha, Springfield Office Coordinator

Finance and Administration

Mark Bennett, CPA, Executive Vice President and CFO

Marcia Stratton, CPA, Director

Marie South, Financial Assistant

Frank Pettaway

Member-at-Large

The Northern Trust Company, Chicago

Michelle Gross Immediate Past Chair State Bank of Bement

Randy Hultgren Secretary Illinois Bankers Association

Law Department

Carolyn Settanni, Executive Vice President & General Counsel

Carly Berard, Senior Counsel

Michael Schasane, Compliance Counsel

Nick Sladek, Administrative Assistant

Government Relations

Ben Jackson, Executive Vice President

Aimee Smith, Assistant Vice President

Matt Imburgia, Director

Marketing and Member Relations

Julie Winterbauer,

Senior Vice President

Tammy Squires, Vice President, Data & Digital Marketing

Robin Lane, Director, Associate Membership

Tim Robinson, Director, Bank Relations

Linda Koch, CAE, Manager, Member/Business Relations

Sarah Cowan, Membership Assistant

Illinois Bankers Business & Education Services, Inc.

Callan Stapleton, CAE, EVP & President of Business and Education Services

Adam Walsh, Vice President, Insurance Services

Lyndee Fein, Director, Education & Conferences

Rachel Selvaggio, Director, Forums & Future Leaders Alliance

Denise Perez, Director, Education & Training

Debbie Jemison, CAE, Director, Financial Literacy

Maddison Augustine, Manager, Marketing & Digital Communications

Amy Sale, Education Assistant

Illinois Bankers Group Insurance Trust

Erich Bloxdorf, Plan Administrator

Mike Mahorney, Senior Trust Advisor

Hillary Meyers, Trust Manager

Editorial Office 3201 West White Oaks Drive Ste. 400 Springfield, IL 62704 217-789-9340 www.illinois.bank

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 2022 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.

Betsy Johnson President & CEO Solutions Bank,

Chair, Illinois Bankers Association

The start of a new year is often the time when we put the past year behind us and prepare for the new one. I am not much for New Year’s resolutions as mine seem to lose their luster and quickly fade by the end of January, however, I am looking forward to hitting the “reset” button if there is such a thing.

2023 looks to be an exciting time in our industry and we all need to be ready. If you are dusting off your strategic plans, redefining your goals and benchmarks, or simply staying the course as planned, be sure to continue to give your organization’s most valuable asset, your employees, the tools they need for the coming year.

Last March I attended The ONE Conference for the first time in many years. Our bank usually has a long list of staff who want to attend and, somehow, I made the cut and was able to join the group. I knew it was a great event but had forgotten how much fun it was along with the important and valuable networking among bankers. As a senior member of my bank’s team, I also very much enjoy watching our future bankers engage with the featured vendors, their co-workers, and other bankers. Their excitement is very intoxicating and hopefully contagious. This is an infectious bug you want to catch! So, as you plan for 2023, please consider the educational investment that the IBA offers for you and your team – see you there!

President & CEO, Illinois Bankers Association

What was the best, worst, and most unusual occurrence in your life this last year?

My most unusual event of 2022 were the results of the election. I am never 100% accurate in my prognostications in elections, but this year, the results were not anything I expected.

The economy and inflation appeared to be the top issues as the election neared but were not consensus issues motivating voters in the polls. Predictions of a Red Wave diminished to a red ripple. Election results in Illinois were opposite from the election results in Florida. Learning from elections sometimes require a little digging.

America continues to be deeply divided, and now we will have divided government in DC again. Top issues in one state may

not be very important in a neighboring state. Democrat dominated states are becoming more blue and Republican dominated states are becoming more red. Gerrymandering has been a key reason for this move of both parties from the middle to the edges of ideology. Primaries have never been more important and the ability and quality of candidates matters to voters.

Of vital importance is for bankers to engage elected officials at every level. Good banking policy does not happen by accident. Know with confidence that your great IBA Government Relations team is working and strategizing every day to fight for you and this great industry. Your voice is incredibly important! Join us at the Economic Investment Day in Springfield on March 28th or in DC in September to protect opportunities for all people to benefit from banks.

Randy Hultgren

IBA President & CEO

Forreston

QUESTION

We filed a suspicious activity report (SAR) for suspected structuring by an employee who banks with us after our compliance software flagged the activity. The FDIC has requested additional information related to this SAR, including the employee’s employment file (excluding any HIPAAprotected information). We did not identify the employment file as supporting documentation in our SAR or use any information from it to make our SAR determination. Are there any problems related to providing this kind of employment information to the FDIC?

ANSWER

We do not recommend providing any information to the FDIC that is not “supporting documentation” for the original SAR, as the Bank Secrecy Act’s safe harbor from liability for disclosures of possible violations of law applies only to the SAR itself and the SAR’s supporting documentation.

The Bank Secrecy Act provides banks with a safe harbor from liability when reporting possible violations of law, including SARs and supporting documentation

QUESTION

related to SARs to financial institution supervisory authorities, including the FDIC. FinCEN guidance has defined “supporting documentation” as “all documents or records that assisted a financial institution in making the determination that certain activity required a SAR filing.” Here, you did not use information from the employee’s employment file to make your determination to file a SAR. Consequently, we do not believe that the safe harbor from liability

for SARs and their supporting documentation would apply to your disclosure of items in an employment file that did not constitute supporting documentation.

Without a safe harbor from liability, we do not recommend sharing information from the employee’s employment file with the FDIC. Of course, your bank may provide any supporting documentation that assisted you in making the determination to file the SAR.

Our safety deposit box contract states that in cases of delinquencies, we may debit any of the customer’s accounts and access our customers’ boxes to collect their contents to satisfy delinquent rental payments, provided that we give our customers thirty days’ notice. What Illinois law or regulation allows this practice?

ANSWER

We believe that Illinois law would allow a bank to apply a valid right of setoff to recover delinquent safety deposit box rental payments. Illinois courts have long confirmed banks’ setoff rights, which can arise either contractually (when a loan agreement or account agreement provides for a right of setoff) or under common law when there is “mutuality” of parties (the account is owned by the same party that owes the matured debt to the bank).

Additionally, we are not aware of any Illinois law or regulation expressly addressing the opening

of safety deposit boxes and using their contents to satisfy delinquent rental payments. Consequently, we believe your right to open boxes and collect your customers’ property to recover delinquent rental payments depends on your contract with your customer.

If the rental payments have been delinquent for several years, the Illinois Revised Uniform Unclaimed Property Act (RUUPA) may be relevant. Under that law, tangible property held in a safety deposit box is presumed abandoned five years after the

expiration of the box’s lease or rental period and must be remitted to the State Treasurer. However, property removed from a safety deposit box and delivered to the Treasurer is “subject to the holder’s right to reimbursement for the cost of opening the box and a lien or contract providing reimbursement to the holder for unpaid rent charges for the box.” Consequently, “upon application by the holder, and after there are sufficient cash funds available either from the contents of the box or the sale of the property, the administrator shall reimburse the holder from the proceeds.”

QUESTION

Are there any best practices related to renewing loans that have matured? Do these practices differ if the loan has 1–4 family real estate attached? Also, are there any best practices related to backdating an application date so that it matches the loan maturity date?

ANSWER

We are not aware of any guidance related to best practices for renewing loans that have matured or backdating an application so that it matches the loan’s maturity date. However, when renewing a loan, you should be aware of how Regulations Z and C distinguish between renewals and refinancings.

For consumer credit transactions secured by a dwelling, Regulation Z distinguishes between renewals, which typically are not considered new transactions, and refinancings, which are considered new transactions requiring new disclosures. A “refinancing” occurs when an existing obligation is satisfied and replaced by a new obligation, based on the

parties’ contract and applicable law. For purposes of HMDA reporting, Regulation C similarly defines “refinancing” as a new debt obligation that satisfies and replaces an existing debt obligation.

Consequently, whether a renewal will be considered a refinancing depends on the specific language used in the documentation to renew the loan. For example, one federal court in Illinois reviewed the language of a modification agreement and determined that the modification did not constitute a refinancing because the modification agreement specifically stated that it was merely amending and supplementing the original loan agreement and not

satisfying or releasing the existing obligation.

Additionally, Illinois courts have found that backdating an agreement is permissible, provided that the parties’ intention to do so is “clear from the face of the contract” and all parties agree on an effective date. However, Regulation Z contains a specific rule related to renewing HELOCs, which provides that a HELOC that is renewed after its maturity date is considered a new transaction for the purposes of Regulation Z — and we do not believe that backdating a HELOC renewal agreement would prevent it from being considered a new transaction.

About the IBA Law Department

Our IBA Law Department provides many resources to help our bank members meet their compliance challenges, including a toll-free Compliance Hotline (1-800-GO-TO-IBA) and a dedicated compliance website (www.GoToIBA. com). We also publish a free weekly e-newsletter highlighting the latest regulatory developments, select recent Q&As, and other useful information – let us know if you want to subscribe!

Note: This information does not constitute legal advice. You should consult bank counsel for legal advice, even if the facts are similar to those discussed above.

YEAR in REVIEW 2022

2022 brought many of us a return to normalcy, but as we enter 2023, we are proud to reflect on this past year and the great successes that the IBA experienced. Illinois bankers embraced our many member benefits, and we saw a tremendous increase in program participation. Additionally, we were honored to celebrate once again with our members many anniversaries, achievements, and awards. We are proud of our service and sincerely appreciate your continued support. As always, we seek ways to help you with your successes in your communities and your institutions. 2023 will be the best year yet for our industry!

NEW BANK MEMBERS

Strengthening the Industry’s Voice

5

American Commercial Bank & Trust, National Association

Buckley State Bank

Devon Bank

Metropolitan Capital Bank & Trust

The State Bank of Pearl City

Providing

20

Agriculture Focused Financial Planning

Anthony Cole Training Group

Banc Card of America Inc.

BancAlliance, Inc.

BancMac - Community Banc

Mortgage Corp

CBMS

Consolidated Communications

Coro Cybersecurity

Creatio, Inc.

Dickinson Wright PLLC

159

Edge One

Genesys Technology Group

HUB – Taylor Advisors

IPHA - Illinois Small Business Community Navigator Program

OutSolve, LLC

Petefish, Skiles & Co Bank

Promontory MortgagePath LLC

QwickRate

Safe Systems

Willing to Hunt, LLC

IBA Members enrolled in the FREE HR Peer Group submitted 170 questions resulting in the exchange of answers, policies, and forms.

AWARD WINNERS

Celebrating Accomplishments

BANKER OF THE YEAR IN MEMORY

Dan Daly SENB Bank

50 YEAR CLUB MEMBERS

Celebrating Career Milestones

VOLUNTEER OF THE YEAR

Lenore Erickson First Bank Chicago

HONORARY LIFETIME MEMBERSHIP

Michelle Gross State Bank of Bement

PRESIDENT’S AWARD

Jan Schramm

Hickory Point Bank & Trust

COMMUNITY SERVICE

Busey Bank, Champaign

CIBC Bank USA, Chicago

OSB Community Bank, Ottawa

ILLINOIS BANKERS PAC

Grundy Bank, Morris

CENTENNIAL CLUB

Amalgamated Bank of Chicago Anchor State Bank

VOLUNTEER BOARDS & COMMITTEES

Influencing the Direction of the Industry

180

Illinois bankers influencing and serving on a board or committee to steer the direction of the association into the future.

Fifty members serve on multiple boards/ committees.

106

BOARDS

Illinois Bankers Board of Directors

Illinois Bankers Business Services

Illinois Bankers Education Services

Illinois Bankers PAC

Illinois Bankers Board of Trustees

Future Leaders Alliance

COMMITTEES

Agricultural Advisory Annual Conference

Associate Member

Audit and Finance

Communications and Marketing

Compliance Division Advisory

19

Illinois banks and industry vendors represented Boards & Committees

Fintech

Government Relations

Human Resources

Illinois Bankers Scholarship

Membership

Technology and Operations

Women in Banking

Richard Dennis Alliance Community Bank

Donna Smith INB, National Association

Marty Larson Stillman BancCorp N.A.

Florian John Barbi First Nations Bank

Christine E. Stickler North Shore Trust and Savings

YEAR in REVIEW 2022

PROFESSIONAL EDUCATION AND TRAINING

Creating Brilliant and Successful Employees

The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand.

1,961 CONFERENCES ATTENDEES

900 SEMINARS ATTENDEES

5,226 WEBINARS

402 FORUM SESSIONS

504 SCHOOL / SERIES SESSIONS

Vince Lombardi

FUTURE LEADERS ALLIANCE

The Next Generation of Bank Leaders

YEAR in REVIEW

IBA COMPLIANCE CONNECTION AT GOTOIBA.COM The Go-To Source for Compliance

Enrollment is open all year for IBA member employees at GOTOIBA.com

325 Compliance Program Attendees Spring Law Review Compliance Conference Bank Counsel Conference Regional Compliance Forums

230 Compliance questions received by the IBA’s Legal Team with answers published to the 4,000+ compliance Q&As library.

1,137 IBA Members enrolled in the IBA Compliance Connection programFREE to all member banks.

YEAR in REVIEW 2022

ADVOCACY SUCCESSES

Influencing the Direction of the Industry

STATE ADVOCACY

• Successfully defeated legislation that would have shifted retailers’ fraud loss costs entirely to card issuers and card networks.

• Introduced and passed legislation to clear up long-standing confusion concerning financial institution record retention requirements and modernize consumer notices.

• Supported legislation creating the Real Estate Valuation Task Force Act to study appraisal concerns.

• Supported legislation allowing banks to partner with local governments to create banking development districts, incentivizing banking services in underserved areas.

• Defeated legislation that would have created a Financial Transaction Tax.

• Defeated legislation that would have created a Public Bank Task Force.

• Defeated data security legislation that would have created new requirements for private entities that possess consumer data.

FEDERAL ADVOCACY

• Submitted a comment letter to the FHFA supporting the FHLBank System’s regional structure and limited membership base.

• Organized grassroots advocacy that successfully opposed Senator Durbin’s credit card routing mandates and fee caps.

• Led a successful delegation to Washington, D.C. for regulatory meetings with the OCC, FDIC, and FHFA, as well as CFPB Director Rohit Chopra.

• Continued to advocate for credit union reform, cannabis banking, and data security parity.

LOCAL ADVOCACY

• Successfully represented our members during the Chicago public hearings on lending equity.

• Continued to build industry goodwill throughout Chicago by supporting financial literacy outreach events.

ILLNOIS BANKERS PAC

Supporting Industry Friends

ROCK STAR FINANCIAL INSTITUTIONS

Cornerstone National Bank & Trust Company

Farmers & Mechanics Bank

First National Bank of Steeleville

Grundy Bank

Murphy-Wall State Bank and Trust Company

PNC Bank, N.A.

Solutions Bank

State Bank of Bement

The Anna-Jonesboro National Bank

FAIR SHARE FINANCIAL INSTITUTIONS

American Community Bank & Trust

Busey Bank

CIBC Bank USA

Community Savings Bank

Farmers & Merchants State Bank of Bushnell

First Mid Bank & Trust, N.A.

First Security Trust and Savings Bank

First State Bank (Mendota)

First State Bank of Campbell Hill

GN Bank

Holcomb Bank

Iroquois Farmers State Bank

Iroquois Federal Savings & Loan Association

LincolnWay Community Bank

Lisle Savings Bank

Community Partners Savings Bank

Midland States Bank

Millennium Bank

NorthSide Community Bank

Old National Bank (First Midwest Bank)

Peoples National Bank, N.A.

Philo Exchange Bank

Prospect Bank

Quad City Bank and Trust Company

Republic Bank of Chicago

Security Savings Bank

SENB Bank

Stillman BanCorp N.A.

The Village Bank

Washington Savings Bank

PAC Dollars Raised $278,901

CONTRIBUTORS FINANCIAL INSTITUTIONS

Bank & Trust Company

Bank of America

Bank of Belleville

Bankers’ Bank

Blackhawk Bank & Trust

Carrollton Bank

Central Bank Illinois

Citizens Community Bank

Community Bank of Elmhurst

DeWitt Savings Bank

Dieterich Bank

First Bank Chicago

First Eagle Bank

First Federal Savings Bank

First National Bank & Trust Company

First National Bank of Waterloo

FNBC Bank & Trust

Forest Park National Bank & Trust Company

Heartland Bank and Trust Company

Home State Bank, N.A.

Hoyne Savings Bank

INB, National Association

Inland Bank and Trust

JPMorgan Chase

Lakeside Bank

Midwest Independent BankersBank

North Shore Trust and Savings

Old Second National Peoples Bank

Sauk Valley Bank & Trust Company

State Bank of Cherry

The Huntington National Bank

Town & Country Bank

U.S. Bank N.A.

Village Bank & Trust, N.A.

Wintrust Bank, N.A.

FAIR SHARE ASSOCIATE MEMBERS

Artisan Advisors LLC

Hovde Group LLC

Green Check Verified Computer Services, Inc.

Upgrade, Inc.

SPARK

Virtual Innovation, Inc

RSM

Sullivan Auctioneers, LLC.

Floodplain Consultants, Inc.

Ironcore, Inc.

Evolv, Inc

Big Iron Auction Co.

Duncan-Williams, Inc.

Backbase USA

Wolf & Company, P.C.

EPIC Retirement Plan Services

Liquid Capital

Mid America Banking

Insurance Services, Inc.

Shield Compliance

Mills Marketing

SPONSORS

Banc Card of America, Inc.

CBMS

LKCS

Strategic Resource Management

Bankers Healthcare Group, LLC

Edge One SomerCor

Town & Country Bank

PLATINUM CONTRIBUTORS

Erich Bloxdorf

Tom Chamberlain

Gerald Fitzgerald Jr.

Michelle Gross

Doug Hankes

Randy Hultgren

Betsy Johnson

Linda Koch

Andy Salk

Matthew Sitkowski

Adam Walsh

Dan Wujek

$223,347 CONTRIBUTED TO STATE, LOCAL, & FEDERAL CANDIDATES AS OF DECEMBER 31.

29% MEMBER BANKS CONTRIBUTED

GOLD CONTRIBUTORS

Mark Bennett

Peter Brummel

Steve Gerstenberger

Cindy Greene

J. Michael Holloway

Daniel Hollowed

Mark Kleine

Brien Leahy

Thomas Manfre

Denise Olds

Kevin Olson

John Pritchard

Jim Roolf

Douglas Sanders

Thomas Schlink

Michael Shane

Mark Shashek

Aimee Smith

Daniel Stein

Michael Tenpas

Candy Webb

Ken Wright

SILVER CONTRIBUTORS

Samuel Banks

Jeffrey Boundy

Monica Bowe

Stanley Bradshaw

Christopher Breyman

David Brozovich

T.J. Burge

John Callah

Michael Cassens

Patricia Colwell

Trent Cox

Van Dukeman

Tom Dunker

Robin Elliott

Patrick Fitzgerald

Brian Goebbert

Connor Gross

Phil Hayes

Matthew Hladio

Rhonda Houzenga

Charles Hudspeth

Amanda James

Karen Jensen

Jeff Johnson

Kenneth Kane

Maureen Kelly

Kimberly Kenney

Denise Kenny

Stephen King

Gregory Kistler

Tami Lowery

Gregory Lykins

Thomas MacCarthy

Pam Macha

Tom McIntire

Elizabeth Miller

Eric Minor

Courtney Olson

Annette Pickrel

Robert Plummer

John Powers

Amy Randolph

Kent Redfern

Steven Rosenbaum

Frank Roth

Cassandra Sanford

Mike Schell

Pamela Sharar-Stoppel

C.A. Shultz

John Smith

Ashley Speed

David Tyrolt

Whitney Valdivia

Scott Wehrli

Scott Weistart

Kerri Wickkiser

Julie Winterbauer

BRONZE CONTRIBUTORS

Hannah Absher

Tracy Albin

Jaclyn Aldridge

Doug Allaman

Diana Allen

Cindy Atkinson

Eric Bacon

Wade Barnes

Tom Broeckling

Rebecca Brown

Michael Brown

James Bruns

Steve Bruyn

Karen Cabrera

Peggy Campbell

Michelle Carroll

Dane Cleven

Mary Curl

Marty Davis

Sarah Dolan

Kelly Dransfeldt

Tom Dunker

John Eilering

Kathy Enbom

Jeff Fauver

Rick Francois

Cindy Fultz

Kristen Garmon

Stefany Gumm

Ken Hayes

Brittany Herman

Rhonda Houzenga

Rick Mahoney

Randy Matravers

Chuck Miller

Donn Muckerheide

Erick Mueller

Amanda Paymaster

Georgia Pelletiere

Denise Perez

Shelley Perksin

Michele Petrie

Jennifer Pittman

Tim Reimink

Richard Riggins

Kevin Rogers

Dennis Romero

Chris Roth

Tyler Rouse

Brenda Rupert

Michael Schasane

Thomas Schlink

Mark Scholl

Melissa Shepard

Matt Smith

Debbie Steele

Marcia Stratton

Adam Turner

Jack Vainisi

Chris Vandeventer

Jesse Voit

Robert Wagahoff

Brian Watterson

Randal Weatherly

Samantha Williams

Genna Williams

Kathy Yarnell

Jennifer Yurkovich

Bill Zumvorde

2023 GSB SCHOOLS BUDGET

Sponsored by:

GRADUATE SCHOOL OF BANKING

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BANK TECHNOLOGY SECURITY SCHOOL

October 16-20, 2023

Especially for IT security officers, this program will broaden your understanding of the business of banking along with an in depth, interactive and hands-on study of the latest IT security techniques and strategies.

HUMAN RESOURCE MANAGEMENT SCHOOL

March 27-31, 2023

Designed for financial services HR professionals to help tie together important banking and HR issues, this school will expand your knowledge of the business of banking, human resource management and employee performance.

FINANCIAL MANAGERS SCHOOL

September 18-22, 2023

This school goes beyond the basics to present best practices and solutions to today’s most critical financial management decisions. Designed by experienced CFOs for financial institution finance managers to provide the tools you need to build a solid foundation in asset/liability management.

SALES AND MARKETING SCHOOL

September 25-29, 2023

High-energy school that’s ideal for sales and marketing teams to attend together with multi-student rebates. Includes valuable content on the business of banking, too.

DIGITAL BANKING SCHOOL

Offered virtually April 3-27, 2023

The first school of its kind – to help community banks grow in the digital banking space, with a focus on on innovation, digital product mix, customer engagement, technology, vendor partnerships and more.

Bankers Cite Economy, Cybersecurity as Top Risks

After several years of pandemic-related internal and external challenges, the nation’s community bankers have largely turned their focus to traditional concerns related to the economy, technology, and competition from nonbank providers.

That switch is one of the key findings of this year’s Conference of State Bank Supervisors (CSBS) National Survey of Community Banks (PDF). The survey is conducted annually by CSBS and state bank regulators. Nearly 500 bankers answered questions about the challenges and opportunities they face in the industry. The report also contains extensive comments from five bankers from around the country on survey topics.

Chief External and Internal Risks

The bankers surveyed cited net interest margins and economic conditions as the top external risks they face. That’s not terribly

By Carl White, Senior Vice President of the Supervision, Credit and Learning Division, Federal Serve Bank of St. Louis

surprising, as the survey was conducted during a period (April through July 2022) of rising consumer prices and interest rates and falling asset prices and gross domestic product.

While rising interest rates do provide an opportunity to increase margins, there are substantial risks, too, hence bankers’ concern. Loan demand remains a concern, but less so than last year, and it is virtually tied with regulation and the cost of technology as a major risk.

Cybersecurity concerns, once again, dominated a list of internal risk issues, with 65% of respondents indicating it was extremely important. Cybersecurity also ranked as a top risk in the area of current and future technological challenges.

Staff retention and technology implementation were other risks that ranked high among the surveyed bankers. Overall, banker perception of

operational risks—such as cybersecurity, credit and operations—declined from last year, which reflects, in part, the lessening effects of the COVID-19 pandemic.

Technology, Competition and Regulation

The share of bankers who say the adoption of new technology is extremely important continues to grow.

Mobile banking services—which received a significant boost in interest during the height of the pandemic—are now offered at 97% of responding banks; remote deposit capture is available at 85% of these institutions.

Advancements such as electronic signature verification, online loan closings and online loan applications are other innovations community bankers are seriously considering adopting over the next year, if they are not already offered. Bankers cited cybersecurity risks, cost, core processor responsiveness1 and regulatory changes as the most difficult challenges they face in implementing new technology.

Regarding competition, community bankers by and large still consider other community banks their biggest competitors for most categories of loans and deposits, followed by regional and national banks. Credit unions are viewed as prime competitors for deposits. While many bankers see fintech firms as competitors in the provision of several financial services, an increasing number of community banks are entering partnerships with fintech firms to offer these products and services.

Prior to 2017, regulatory burden was a dominant issue in survey responses, likely due, in part, to the changes brought about by the Dodd-Frank Act. But regulatory burden reduction legislation and socalled regulation technology, or regtech, appear to have eased the burden.

Regtech consists of several applications to assist banks in meeting their compliance responsibilities, using technology such as automation, advanced analytics and cognitive computing. The cost of compliance appears to be stabilizing in light of these developments; median personnel costs related to regulatory compliance as a percentage of total personnel expenses dropped to 7.1% in 2017 and has remained below that level since.

Looking Ahead

In addition to conducting the annual survey, CSBS polls a panel of community banks quarterly and uses the data to create a Community Bank Sentiment Index (CBSI), which debuted in the second quarter of 2019. The latest reading, for the third quarter of 2022, showed continued negative sentiment among community bankers, although the index number was up from its record low in the second quarter of 2022.

In the latest CBSI poll, community bankers expressed ongoing concerns over high inflation, economic growth and the possibility of a more burdensome regulatory environment. Although the annual survey provides a more comprehensive look at the opportunities and challenges facing community banks, the quarterly CBSI provides an important snapshot of how our nation’s smallest banks view the outlook for the U.S. economy. Taken together, we get a clearer picture of the economic conditions that banks face today and where they think challenges will persist in the future. 8

Note: 1. Core processing systems allow banks to support a variety of services ranging from loan origination to automated clearinghouse transfers. The systems can be provided internally or delivered through external vendors.

This article is part of a series titled “Supervising Our Nation’s Financial Institutions.”

BANKERS IN PARADISE

Going ALL IN with Gian Paul

Keynote Speaker on Thursday, March 2

In this program, Gian Paul discusses the keys to empowering you and your organization to commit to goals despite obstacles hindering the ALL IN commitment needed for success. Paul's storytelling passionately describes the origination of a phrase birthed in a New York Giants locker room to becoming a yearly motto for many top corporations. Gian Paul implores his listeners to let ALL IN be more than just a slogan but become a lifestyle that will impact all parts of their existence.

Fearless Success with Kat Perkins

Keynote Speaker on Friday, March 3

Kat Perkins is a nationally recognized motivational speaker who uplifts audiences across the country. Kat was a finalist on NBC’s The Voice and in 2022 was on tour with Kid Rock. During her speaking program, Kat discusses the importance of finding your passion, taking leadership roles, working with others, developing a positive attitude, and working towards your dreams. Get ready to experience laughter, a sense of confidence, and a full heart!

Could ITMs Fill Gap Created by Branch Closures?

The bottom line.

Branch networks require significant investment, real estate is getting more expensive, and utilities and security costs are spiking. Offices also can be labour-intensive, assuming financial institutions can attract and retain the right frontline staff.

At the same time, branch traffic is declining, limiting opportunities for locations to generate revenue. If ROI is a primary consideration, it’s getting harder for banks and credit unions to justify having large branch networks.

ATMs were initially seen as the secret weapon to relieve branch congestion by offloading basic transactions like cash withdrawals and balance enquiries. Since then, cash usage has declined markedly, making up only 11% of point-of-sale transactions in North America and 25% in Europe in 2021, according to FIS’s Global Payments Report. The pandemic has further accelerated that trend, and customers have migrated many other routine tasks to online and mobile channels.

by Simon Rose, SRM

Consequently, the number of ATMs with meaningful upfront and ongoing servicing costs also has declined.

Nonetheless, significant use cases remain, including meeting the needs of specific customer segments and complex, high-value transactions, where banks, building societies, and credit unions have yet to identify a delivery channel that matches the branch. We believe interactive teller machines (ITMs) deserve consideration as an option to close the gap created by thinning branch networks.

Video tellers started having an impact in the early 2010s, with an initial focus on rural areas, though they were eventually overshadowed by mobile banking. In addition to ATM functionality, ITMs can put the customer in touch with a representative, if needed, via two-way video or audio-only. According to the American Bankers

Association, the typical ITM can cost $55,000 to $80,000, excluding a one-time infrastructure cost ranging from $250,000 to $500,000. Yet, they have the potential to really connect with communities and cover their initial cost outlay many times over – if used and marketed to the fullest with an effective customer journey design.

The Need for Branches is Diminishing, Not Vanishing

In the US and UK, the trend in branch counts is clear as reports of closures surface regularly. Even the most bullish statements suggest that the US rate of decline has merely slowed. In the UK, Lloyd’s Bank announced in late July that it would shutter 66 locations; in October, NatWest indicated the closure of over 40 locations – further depleting the high street branch availability.

Institutions in both countries face reputation risk, as media reports often center on the “banking deserts” that can emerge in low-income areas. Closures also can trigger regulatory challenges. Consideration is being given to new legislation in the UK that aims to “ensure access to cash” via “adequate” withdrawal and deposit facilities.

In the US, several cities have enacted or increased enforcement of existing laws requiring merchants to accept cash as a form of tender in the name of financial inclusion. This may seem overkill, but there may always be a desire for physical cash and in-person, physical, bank representation on our main and high streets.

Conversely, consumers don’t use branches as they did in the past. Even significant sales opportunities like mortgages and small business loan originations have increasingly moved to digital portals and intermediaries. With this change in consumer behaviour, banks are missing out on what was once the prime opportunity to sell ancillary products to customers that would add to their bottom line and, by association, ensure that branches were viable on their own. However, the cost dynamics have not been made clear to consumers, nor – arguably –considered by the media and political advocates of the branch presence.

Yet, the alternative to the expensive branch channels, to provide advice and cash and check banking services, could be the ITM. With secure “booth” facilities available, much of the personal interactions and transactional banking can be catered for while allowing for effective connectivity and biometrics (for identification and verification) to

help retain a physical bank presence in the modern era.

The Last Branch in Town?

Many financial institutions are exploring options for maintaining a baseline level of service throughout their geographic footprint. One question is the acceptable distance a customer should be expected to travel to reach a physical branch. Some UK banks have joined forces in a few remote locales, alternating days staffing a single site.

While traditional ATMs are designed for standard transactions, with limited opportunity for deeper engagement, ITMs offer a significant step forward. In the US, ITMs have gained some traction through fuller-functioned, video-enabled machines (which remain largely absent in the UK, where a few large banks house rudimentary versions within their branches). Republic Bank in Kentucky, First International Bank & Trust in Arizona, and MVB Financial in West Virginia are among the banks that use ITMs.

When judiciously deployed, ITMs enable several potential benefits. Secure, modular booths create new possibilities for co-location within other high-traffic retail outlets. A pool of frontline agents can be remotely housed, boosting efficiency while supporting customers across a wide radius of low-volume areas. Live video access to human representatives should satisfy a subset of the segment that prefers personal interaction, preserving sales opportunities. And ITMs could form part of the classic hub-and-spoke model that lets a major city center branch oversee activity at local/regional machines to maintain a local appeal.

The Bottom Line

As financial institutions continue to rationalize their branch footprints, given declining demand and unappealing ROIs, investing a portion of the resulting savings into ITMs may offer a compelling path forward, providing wider options to retain market visibility and selling opportunities.

SRM will continue to monitor this evolving technology space. We also can help you evaluate the market and determine if ITMs are the right fit for your financial institution.

Illinois community banks CD rates higher than overall national average

By Rica Dela Cruz and Syed Muhammad Ghaznavi, Market Intelligence, S&P Global

The Illinois community bank average rate on one-year CDs is higher than the overall state average rate of 0.66% and the overall national average rate of 0.88%. Although the average rate community banks in Illinois pay on one-year certificates of deposit has increased, it is below the national peer community bank average.

As of Dec. 2, the state's community banks saw the rate on one-year CDs rise 15 basis points to 0.92% from the previous month, while the community bank national average increased 20 bps to 1.14%, according to an S&P Global Market Intelligence analysis. The Federal Reserve has been raising rates at the quickest pace in 30 years in an effort to fight inflation, but U.S. banks have been increasing deposit rates at a slower pace relative to the last tightening cycle.

Change in interest rates since November at 15 largest community banks in Illinois Used car loans at Illinois community banks

The average rate Illinois community banks offer on 36-month used car loans stood at 5.62% as of Dec. 2, which is below the national community bank average of 5.76%.

In the third quarter, U.S. banks' collective auto loans grew to $550.52 billion sequentially and yearly. Auto loan delinquencies at U.S. banks also rose for the third-straight quarter, inching closer to pre-pandemic levels.

Mortgage rates largely similar

The 30-year fixed mortgage rate average at Illinois community banks was on par with the national average rate of 6.64%, slightly higher than the state average and the national community bank average of 6.63%, and higher than the state credit union average of 6.51%. The national credit union average rate was 6.73%.

The state community bank average rate rose 10 basis points from the previous month. Meanwhile, the state average rate slid 7 basis points and the national average rate fell 11 basis points.

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CUSTOMIZE YOUR BANK’S INSURANCE PROGRAM YOUR WAY

Your bank’s insurance program plays a pivotal role in protecting all of your vital assets. Together, let’s review your program to ensure it is sufficient for today and into the future.

4 Easy Steps

1. Connect with Adam Walsh to discuss your bank’s needs based on our line of products through Mid America Banking Services, Inc., and A+ rated companies.

2. Collect basic information, including declaration pages from your current policies, current financials, and loss runs. Upon receipt, a draft summary is prepared of the needed coverages.

3. The summary is submitted to our partner companies - additional information may be requested such as a Cyber Liability Application, Multi-Factor Authentication Attestation, Mortgage Protection Application, or property details.

4. A detailed proposal of your current and recommended coverages is presented to you. Upon approval, a smooth transition is guaranteed!

Schedule Your Policy Review

Adam Walsh, Vice President, Illinois Bankers Insurance Services

awalsh@illinois.bank | 217-789-9340

STEVEN GONZALO President & CEO American Commercial

As a new IBA member, we decided to compare our current insurance portfolio to the Illinois Bankers insurance program. The Illinois Bankers Insurance Services proposal surpassed our expectations with extraordinary savings and better insurance coverage. The time to receive a quote was minimal, and the cost savings more than covered our annual dues. We are proud to be an IBA Member and couldn’t be happier going into 2023.

Bank & Trust, Ottawa

2023 FORUMS

2023 FORUMS

Connecting Bankers. Advancing Banking. Examine pressing issues, exchange ideas, and share solutions among colleagues in a comfortable and

FORUM

2023 IBA PREMIERE EVENTS

Connecting Bankers. Advancing Banking.®

As of January 5, 2023

2023 IBA PREMIERE EVENTS

Connecting Bankers. Advancing Banking.®

As of January 5, 2023

MARCH 2-3

MARCH 2-3

THE ONE CONFERENCE

Embassy Suites

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JUNE 21-24

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ANNUAL CONFERENCE

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SEPTEMBER 18-20

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MARCH 28

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WELCOME

NEW BANK MEMBER

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Welcome to the Illinois Bankers!

Brickyard Bank

6676 N Lincoln Ave

Lincolnwood , IL 60712-3601

Doug Bertagna, Senior Vice President, COO

Buckley State Bank

PO Box 5

102 S Railroad Ave, Buckley, IL 60918-0005

Jacqueline Weber, President & CEO

NEW ASSOCIATE MEMBERS

(as of 12-31)

BancMac - Community Banc Mortgage Corp

3200 W Iles Ave

Springfield, IL 62711-9680

bancmac.com

Stephanie Washko

swashko@bancmac.com

BancMac provides correspondent lending and is the Community Bank Mortgage Partner for financial institutions to originate secondary market mortgage loans. Your financial institution may expand your product offerings with access to Conventional, USDA, VA, FHA, Jumbo, and Rural Living loan programs, improve your price and competitiveness, and generate significant non-interest income. We offer superior service, competitive pricing, no minimum volume requirements, Non-Solicit Protections, and more.

Illinois Secure Choice: Expanding Retirement Savings Access for Illinois Workers

Per State law, employers with 5 or more Illinois employees that have been in business for at least 2 years and that don’t offer a tax-qualified retirement plan are required to register for and facilitate Illinois Secure Choice. Through Illinois Secure Choice, Illinois workers can save for retirement through Individual Retirement Accounts (IRAs) funded by payroll deductions. The program is facilitated by the State of Illinois and administered by a professional financial services firm. Employers do not pay any fees, make contributions, or have any fiduciary liability – they simply

facilitate employee payroll deductions and keep their employee rosters current. Business owners can learn more about the program and access support resources at ilsecurechoice.com.

Businesses with 16 or more Illinois employees must register for or report an exemption from the program by November 1, 2022. The registration/exemption deadline for businesses with 5-15 employees is November 1, 2023, though employers are welcome to join ahead of their applicable deadlines.

ABA recognizes winners of Under 40 in Wealth Management Awards

The IBA recognizes Brett Petersen, SVP – Director, Private Wealth Advisory for Busey Wealth Management, for being named among the 2023 recipients of the American Bankers Association ABA Under 40 in Wealth Management Award. The award recognizes wealth management and fiduciary professionals who are committed to the highest standards of achievement at work and in their communities. The recipients will be honored during ABA’s 2023 Wealth Management and Trust Conference, which will be held Feb. 27-March 1, 2023, in Nashville, TN.

Matt Gambs Crain’s Chicago Business 2022 Notable Nonprofit Board Leaders Board member, Boys & Girls Clubs of Chicago

As a member of the board, Matt Gambs is closely monitoring operations to balance reinvestment and growth at BGCC, which provides nearly 20,000 young people with emotional, educational, physical, and cultural resources. He serves on the HR committee, guiding BGCC’s staffing policies at more than 20 clubs across the city. He advocates for BGCC’s aquatics program, ensuring that children in under-resourced communities get lifesaving swim lessons. He helped procure digital billboard space to promote BGCC’s annual Youth of the Year event, highlighting the accomplishments of children. Additionally, he advocated on behalf of BGCC to participate as a 50/50 split-the-pot beneficiary at a major Chicago sporting event. Gambs is the senior vice president of community impact with Wintrust.

Longview Community Bank (formerly The Farmers Bank of Mt. Pulaski) Presented with the IBA Centennial Club Award

The IBA presented the senior team at Longview Community Bank (formerly The Farmers Bank of Mt. Pulaski) with the Centennial Club award. Prior to being acquired by Longview Capital Corp. earlier this year, the bank celebrated its 150th anniversary and still holds the title of the oldest bank in Logan county, IL! The bank’s lobby houses a nice historical display of bank items – stop in for a visit!

Ribbon Cutting Ceremony held for FNBO Mortgage Loan Production Office in Aurora

FNBO launched its newest office in Aurora, Illinois, specializing in mortgage lending. FNBO has a long and rich history of investing in, supporting, and serving communities like Aurora. For the past five years in the Aurora market, we’ve been a provider of affordable home-financing products, down payment assistance programs, and financial and homeownership education.

FNBO is viewed as a trusted and capable leader in the community banking and mortgage lending arena, operating 13 locations across Northern Illinois. With its new loan production office in the heart of downtown Aurora, FNBO is poised to expand its reach to more individuals and families, helping them achieve their dream of homeownership. The opening celebration included prize giveaways, food and drink, and live music by Octavio Escalante.

Pictured (L-R): Tricia Aylesworth, Rick Volle, Julie Winterbauer (IBA), and Sarah Volle.

Illinois Banks Make the American Banker’s List of 2022 Best Banks to Work For

First Bank Chicago Named One of the Top Five

First Bank Chicago has been named one of the top five 2022 Best Banks to Work For in the United States by American Banker, a leading nationwide industry information source. American Banker has partnered with Best Companies Group to identify banks that excel at creating positive and supportive workplaces for employees.

This year 90 banks earned a spot in the ranking of Best Banks to Work For, First Bank Chicago was ranked No. 5 with 136 employees and $1.9 billion in assets at the time of application and has since grown to 147 employees. It is the first time that First Bank Chicago has applied for and been recognized by the annual Best Banks to Work For program.

Here are additional Illinois banks to make the list:

Pan American Bank & Trust Melrose Park, Illinois

Assets: $438 million

President and CEO: Frank Cerrone No. of employees: 50

Frank Cerrone, president and CEO of Pan American Bank & Trust, said his father, who immigrated to the U.S. from Salerno, Italy, at the age of 23 with nothing, was his biggest mentor during his career.

"His work ethic and patience were, and still are, impeccable. He never demonstrated signs of stress when I was growing up," he said. "However, his grit and unwavering positivity along with his 'glass half full' attitude, has made my Dad an amazing mentor to respect," Cerrone added.

First Busey Corp.

Champaign, Illinois

Assets: $12.3 billion

Chairman, president & CEO: Van Dukeman No. of employees: 1,497

First Busey Corp. has worked to ensure employees affected by Hurricane Ian, a category 4 storm that struck Florida earlier this year, are well taken care of.

The company opened a relief center that provided daily necessities and had weekly wellness checks. It also offered additional time off to meet with contractors and insurance adjusters and deal with other concerns. It has an associate assistance fund that provides financial support to those affected by natural disasters.

Finally, the company gave its Florida employees a $250 gift card to a local grocery store chain to help pay for essentials.

"I'm especially proud of the way the entire Busey family has come together during our hurricane response and relief efforts," said Robin Elliott, president and CEO of Busey Bank. "There is a tremendous sense of pride for what was accomplished in such a short time — and despite incredibly difficult challenges — as teams across our footprint came together as one to support our Florida associates, customers, and communities."

Evergreen Bank Group

Oak Brook, Illinois

Assets: $1.3 billion President and CEO: Darin Campbell No. of employees: 181

To ensure employees have a good work-life balance, Evergreen Bank Group offers a hybrid schedule along with generous paid-time off.

"We acknowledge that life outside of work is critical to one's psyche, so our management team is very strong at working with their staff to ensure that work-life balance is met," said President and CEO Darin Campbell. "Managers also encourage their

teams to use their earned time off rather than ignoring it."

Employees are not only awarded monetary bonuses but they also receive additional time off for reaching certain milestones or launching important initiatives. "The only caveat being that we ask the employee to treat themselves, their family and their friends with an extraordinary experience or gift," Campbell said.

Signature Bank

Rosemont, Illinois

Assets: $1.5 billion CEO: Michael O'Rourke No. of employees: 88

Michael O'Rourke, CEO of Signature Bank in Rosemont, Illinois, said that his bank has no hierarchy, and that allows each staff member to thrive.

"We offer an environment that empowers employees to reach their full potential and assist the bank in continuing the positive growth trajectory," he added.

Results are based on an anonymous employee survey and a thorough review of the benefits and perks offered. The full 2022 Best Banks to Work For list is featured at www. americanbanker.com. The survey

and awards program is designed to identify and honor banks with the best cultures for helping employees thrive.

Determining the Best Banks to Work For involved a two-step process. The first consisted of evaluating each participating bank’s workplace policies, practices, and demographics. This part of the process was worth approximately 25% of the total evaluation. The second consisted of employee surveys aimed at assessing the experiences and attitudes of individual employees with respect to their workplace. This part of the process was worth approximately 75% of the total evaluation. The combined scores determined the final ranking.

To be considered for participation, banks had to have at least 50 employees working in the U.S. and have been in business for a minimum of one year. Best Companies Group managed the registration and survey process and also analyzed the data to determine the final ranking.

For more information on the Best Banks to Work For program, visit www.BestBankstoWorkfor.com.

ON THE MOVE

Madison, WI BANKERS' BANK

Bankers’ Bank announces a new addition to the team and two promotions.

Bankers’ Bank is excited to welcome Brian Mickey as First Vice President, Risk Management Solutions. In this new role, Brian is responsible for managing and developing the bank’s loan review and portfolio analysis services. He has three decades of experience in the banking industry with experience at small to medium-sized commercial banks. He’s worked in many different facets of credit including underwriting, administration, loss mitigation, asset management, and business development with a primary focus on commercial real estate lending. Brian is excited to partner with community banks and deliver a solution to better meet their needs. He holds a bachelor’s degree in Finance from the Loyola University of Chicago.

Bankers’ Bank recently promoted David Paxton as the new Senior Vice President, Risk Management Solutions. In his new role, he is responsible for building and executing strategies to grow the bank’s risk management solutions. David joined Bankers’ Bank in early 2022 as First Vice President, Business Solutions. He has worked in community banking for more than 10 years, most recently at Amalgamated Bank of Chicago as the manager of their government services and union services departments. Prior to that role, he worked for ten years in Washington, D.C. as a commercial banker. David holds a bachelor’s degree in Recreation Management from West Virginia University. David is looking forward to building relationships with community banks and providing solutions to meet their risk management needs.

Jim Kluck has been promoted to First Vice President, Risk Management Solutions. Jim is responsible for the management of the bank’s asset liability management and enterprise risk management solutions. He has been with Bankers’ Bank for five years, most recently as Vice President, Asset

Liability Management. In that role, he was responsible for growing the business from five bank customers to over 50 bank customers. Jim is focused on building long-term relationships with his customers and spends time understanding each customer’s unique circumstances and challenges to help deliver solutions to help banks better manage their risk. Jim is a graduate of Marquette University with a Master of Business Administration. He also is a Certified Managerial Accountant.

Brimfield

F&M BANK

Thomas Schlink, Peoria County President of F&M Bank is pleased to announce that Nic Dossett has been hired as a Loan Officer at their Brimfield Office. In this new role, Nic will serve as the primary liaison for consumer and small business loans and will be responsible for maintaining existing relationships in the Brimfield area.

Nic brings a wealth of banking knowledge to the F&M Bank team. His previous experience includes Personal Banker, Banking Center Manager, and Mortgage Loan Processor at Hickory Point Bank. Nic is a graduate of the University of Illinois with a bachelor’s degree in Economics.

We are pleased to add Nic to the experienced team of banking professionals in our Brimfield Office. “Together with our current team, Nic will provide top-notch service to our current clients and prospective clients. We look forward to the opportunities this will provide”, says Thomas Schlink, Peoria County President.

Nic resides in Chillicothe. He is a fan of the Chicago Bears, Cubs, and Bulls and enjoys outdoor activities such as fishing and gardening.

Jefferson City, MO

MIDWEST INDEPENDENT BANKERSBANK

Independent Bancshares, Inc. (MIB, Inc.) announces the hiring of Vernon Kempker. Kempker has joined the

Paxton

Dossett

Moreno

Ihnes Summers

Mickey Kluck Banks

holding company as Senior Vice President/Chief Financial Officer.

Kempker leads the finance and accounting team across all organizations and is a member of the Executive Management Team. He began his professional career in 1992 with a local hospitality resort in Lake Ozark, MO. His well-established career includes many years of finance and accounting experience with large corporations, where he has held a variety of senior financial management roles with concentrations in cost accounting, general ledger, financial services, and compliance. He worked closely with management on strategic initiatives at all levels.

Kempker earned two undergraduate degrees: a Bachelor of Science degree in Accounting and a Bachelor of Science degree in Business Administration from Lincoln University in Jefferson City, Missouri. He received a Master of Business Administration degree from William Woods University in Fulton, Missouri.

Mattoon FIRST MID BANK & TRUST

First Mid Bank & Trust is pleased to announce the promotion of Fredy D. Moreno to CRA Retail Loan Officer in Champaign, IL, and the surrounding communities. His role as a retail lender is to assist customers with all aspects of Mortgage Lending, including home purchases, refinances, and home equity lines of credit.

Moreno will specialize in offering low down payment lending products, including FHA financing and Down Payment Assistance programs. He also will be focused on Community Reinvestment Act (CRA) lending, which helps meet the credit needs of the community, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.

He began his banking career with First Mid in July 2017 and has previously held the roles of Teller at the Tuscola banking center and Retail Loan

Officer with offices at both the Arcola and Tuscola banking centers. Active in the community, Moreno volunteers with the Arcola Rec, serving as its President and Director of Soccer, and is a member of the Arcola Rotary.

First Mid Bank & Trust is pleased to welcome Carlos Banks as their new Mortgage Loan Officer serving Alton and the surrounding communities. Banks has been in the financial industry for six years and recently joined the First Mid mortgage team to achieve his passion of helping families achieve their goals of homeownership and financial freedom.

He was born in Wichita, Kansas, and grew up in Arlington, Texas. Banks received an Associate Degree from Butler Community College in El Dorado, Kansas, and received his Bachelor of Arts in Hospitality Administration/Management from Southwest Missouri State University.

He also played college football at both Oklahoma State University and Southwest Missouri State University. Banks is an avid supporter of community organizations, and actively volunteers with the Special Olympics. He enjoys spending time with his two sons, playing golf, and watching professional football.

Peoria

PNC PRIVATE BANK

PNC Private Bank announced the appointment of Nathan Ihnes as vice president and senior fiduciary advisor. Based in Bloomington, Ihnes will help oversee fiduciary administration and new business development for PNC Private Bank in both the Central Illinois and St. Louis regions.

Ihnes comes to the role with nearly 20 years of experience in private banking, estate planning, investment and wealth management, and trust and fiduciary services. Most recently he served as in-house counsel, trust officer, and wealth advisor for Heartland Bank and Trust Company.

Ihnes earned a bachelor’s degree from the University of Illinois and a law degree from Northern Illinois

University. He currently serves as treasurer for the McLean County Bar Association Foundation. Previously he has served as treasurer of the McClean County Bar Association, as a board member of the Advocate (Carle) BroMenn Philanthropy Council, and the Spoon River Partnership for Economic Development.

Olney FIRST NATIONAL BANK

The Board of Directors of the First National Bank in Olney are pleased to announce the promotion of Kevin Ochs as President and CEO of Summit Bancshares Ltd. and FNB in Olney in February 2023. Kevin began his career at FNB in Olney on June 1, 1992, upon graduating from Eastern Illinois University. In 1998, he was appointed Secretary to the Board of Directors and then Vice President and CFO of the bank. In 2007, he was appointed as a director on the board. In addition to his full-time role, he operates a cow-calf operation and feedlot.

Springfield TOWN AND COUNTRY BANK

Town and Country Bank is happy to announce that Kathy Summers will serve as Branch Manager for the company’s Springfield location.

Kathy has almost 20 years of experience in managing employees, cross-selling, and other retail duties. As Branch Manager, Kathy will use her expertise to lead and manage a team of bankers, growing consumer and small business deposits, and oversee the opening and management of accounts for personal and commercial banking clients.

As a resident of Taylorville, IL, Kathy likes to volunteer at the Taylorville VFW where she raises money for local veterans and participates in multiple charity events. She also enjoys camping and spending time with her husband, chickens, and cat.

Congratulations on these retirements

After a 43-career in agricultural lending and banking, Greg Curl retired on December 31st. His banking career began in Paris, IL in 1991 where he rose to the position of President and CEO. He later moved to Effingham as President/CEO of Crossroads Bank. He most recently worked for Peoples Bank & Trust as a Vice President of Business Banking and Trust Officer. Over the years, Greg served in many local organizations including the Illinois Bankers Association where he served on several committees and on the IBA Board of Directors.

Rich Knebel

After we were sure we’d drained every bit of knowledge from Rich before letting him retire, we wish our long-time supporter and friend all the best in the next chapter of his life. We will miss your legacy of contributions and laughter.

Bruce Peters, President and CEO of the First National Bank in Olney, announced his retirement effective February 23, 2023. This comes, after 42 years of service to the organization. Bruce began his career on February 23, 1981, as a teller at the main bank in Olney. He later held the job of Note Teller, then moved to the position of Loan Officer. From there he moved up to Senior Lender and in June 2007, he was promoted to President and CEO.

Rhonda Rawlings began her banking career in 1983 as a teller at First Mid’s Neoga banking center. She has held various positions over the years including loan processor, loan officer, auditor, deposit operations manager, and call center manager. She is finishing up her career as the Conversion & Special Projects Implementation Manager. Rhonda gave back to her profession as she participated in serving on several Illinois Bankers Association boards and committees – the boards of the Illinois Bankers Education Services and Illinois Bankers Business Services, the Technology Committee, and chaired the Operations Committee. She served as an ABA self-study faculty advisor and graded student exams.

Dennis Terry, Business Development Officer at First Mid Bank & Trust, retired on December 30, 2022, after a longstanding banking career of over 50 years in Edwardsville, IL, and the surrounding communities.

Terry began with Mercantile Trust in St. Louis, MO in 1970. He moved to

Edwardsville National Bank in 1973, which subsequently merged with Mark Twain Bank, then Mercantile Bank, then Firstar Bank. He then joined Clover Leaf Bank in 2000 as their President and CEO. Terry continued as President and CEO when Clover Leaf Bank merged with First Federal Saving & Loan in 2006 to become First Clover Leaf Bank. In 2016, FCLB merged with First Mid Bank & Trust. Terry’s community knowledge, banking expertise, and service excellence earned him the position of Business Development Officer for First Mid, which he has held ever since.

During his long-tenured career, Terry was appointed to the Thrift Institutions Advisory Council of the Federal Reserve Board for 2010 and 2011. At the time, humbled by the appointment, he said, “This is probably the highest honor I’ve received in our industry. I was elated when I learned that my nomination from the St. Louis Federal Reserve Bank was reviewed and approved.”

Over the years, he has been active in several community organizations and nonprofit boards, serving as treasurer and board member of the EGHM Foundation, past president of the SIUE Foundation, and past president of the Edwardsville YMCA Board of Directors. Terry ends a stellar career as a well-respected banker, advisor, and mentor to many, including many colleagues at First Mid.

Congratulations to Janet Allen of Grundy Bank on her retirement. After ten years, her career in the bookkeeping department has come to a close. Thank you for your dedication and commitment to the bank and the industry. We wish her all the best in her next chapter of life.

Tim and Julie visited Highland, IL, to wish Rich congratulations and good luck in the next chapter of his life. (L-R) Julie Winterbauer, Rich’s wife Debra, Rich, Mike Ennen, President and CEO of Bradford, Tim Robinson.

Walter Edward Grady III, age 83, of Horn Lake, Mississippi passed away on Wednesday, November 30, 2022.

Walter was born in Memphis, TN.

Walter was a longtime banker serving the Chicago area for many years. In 2014, he retired from Seaway Bank & Trust Company after almost 35 years as the President & CEO. At that time, Grady was the longest-serving bank president in the Chicago area. Grady grew Seaway Bank from $40MM

to more than $500MM, making it the largest black-owned bank in Chicago and the 4th largest in the nation. He was deeply committed to the community and providing banking services to underserved markets.

In typical community banker fashion, Walter’s sense of service included his chosen industry and well beyond. Grady served on the Board of Directors for the Illinois Bankers Association, Boy Scouts Area Council, Illinois Commission on Volunteerism, 111th Street YMCA, United Methodist Foundation, Seaway Community Development Corporation (created during Grady’s time at the bank),

and more. Grady graduated from Roosevelt University in 1972 with his bachelor’s degree and earned an MBA from Roosevelt in 1979. An avid outdoorsman, he loved to fish, golf, garden, and restore old cars. Grady was a proud U.S. Air Force veteran and deeply loved his family.

He will be remembered for his impact on community banking in Chicago. In his words, “I have to say that what gives me the most joy is to help a customer through a financial crisis. Customers may come in concerned and worried, but we do our best to make sure they leave with a big smile on their face.”

Bruce McClaren, 71, of Easton IL passed away peacefully on Thursday, May 26, 2022, at Memorial Medical Center in Springfield, IL. Bruce was born on February 5, 1951, in Bloomington, IL. He graduated from Pana Sr. High School in 1969 and Illinois Wesleyan University in 1973.

After working in the banking industry as a State Bank Examiner and later as Vice President at the Bank

of Franklin Grove, IL, Bruce fulfilled a lifelong dream by becoming President and owner of the Community Bank of Easton, IL for the past 33 years. As a testament to his banking knowledge and expertise, the Community Bank of Easton was consistently rated the number one Community Bank in the State of Illinois.

Bruce was known as a trusted confidant to many and always lived his personal and business life with the highest level of integrity. He was also known for his quick wit and sense of humor, reminding us to not take life too seriously.

Besides the bank and the people he served, Bruce’s passions included a collection of pyro-technics that he especially enjoyed sharing with friends, and he never missed listening to the Colorado Rockies Baseball games.

Bruce is survived by his sister, Sue Ann McClaren (Bill Ellingson) Denver, Colorado and Maria Opela, Green Valley, AZ. He was preceded in death by his parents Gordon and Chadyne (Gilmore) McClaren.

Bruce’s greatest joy in life was doing for others. He is loved and will be greatly missed.

Dewey R. Yaeger, 82, of Sycamore, Illinois, passed away on Thursday, November 17, 2022, surrounded by his family. He was born June 12, 1940, in O’Fallon, Illinois, the son of Harold and Marcella (Reinhardt) Yaeger. He married Kathleen Carncross in 1972, and she preceded him in death on January 21, 2018. Dewey was a member of the First United Methodist Church of DeKalb.

Dewey graduated from O’Fallon Township High School. He went on to attend Illinois State University, graduating in 1962. His remarkable 50-year banking career began at Marine Bank of Springfield, where he

was taught the values of “community banking” – values he carried with him throughout his career.

The last half of his career was in a CEO role, and he was very proud to have helped multiple banks improve their performance during his tenure. In addition, he was particularly honored to have served on the Kishwaukee Health System Board of Directors and chaired the board that made the strategic decision to build a new hospital facility in DeKalb, Illinois.

First and foremost, Dewey valued relationships. He was most proud of his family, as well as the many lasting friendships he built over the years. As an Illinois State University alum, he was honored that two generations of Redbird legacies followed in his footsteps.

Everyone that knew Dewey was aware of his love for the St. Louis Cardinals! As a lifelong fan, one of his greatest joys over the years was watching them play.

Survived by daughter, Catherine (Kevin) Canham of Springfield; daughter, Kimberly (Daniel) Heinisch of Sycamore; grandchildren, Melody, Emily, and Cassidy Canham, and Morgan, Cole, and Addison Heinisch; brother, Richard (Doreen) Yaeger of Palm Desert, California; sister-in-law, Ruth Yaeger of Jefferson City, Missouri.

He was preceded in death by his wife, Kathleen; parents; son, John M. Yaeger; grandson, Andrew “Drew” Heinisch; brother, William “Bill” Yaeger; and sister, Audrey Pugh.

Walter Grady

Bruce McClaren

Dewey R. Yaeger

CHICAGO AREA CHAPTER

Chicago Area Chapter Holiday Breakfast

December 1, 2022

Westin Chicago

A large crowd of more than 120 Illinois bankers and guests gathered at the Westin Chicago for the annual Chicago Area Chapter Holiday Breakfast. Our keynote speaker, Chris Kuehl, was a trooper who presented his session virtually after being diagnosed with COVID just days ahead of the event. We appreciate his willingness to continue to speak to our audience. This time-honored program continues to be a highlight to see the festive holiday season.

Save the Date: November 30, 2023, The Westin Chicago Lombard, IL

(Standing L-R) During the event, the 2023 Chicago Area Chapter Officers sworn in are Phil Richard, FNB of Brookfield; Courtney Olson, First Bank Chicago; and Jeff De Bruin, Municipal Trust & Savings Bank.

The 2022 Chicago Area Chapter Officers, Phil Richard, Jeff DeBruin, and Nick Weaver, present a $5,000 contribution to the Illinois Bankers PAC. IBA’s Randy Hultgren and Julie Winterbauer graciously accepted the contribution.

WINDSOR ADVANTAGE’S Q&A CORNER BANK COUNSEL CONFERENCE

IBA Bank Counsel Conference December 2, 2022 Chicago

The annual IBA Bank Counsel Conference held on December 2 in Chicago is the most prestigious gathering of bank counsel in Illinois. With nearly 165 attendees participating in person and virtually, it was an exceptional day to review Illinois’ banking laws. Thank you to our industry experts for presenting relevant topics and setting the tone for 2023.

Save the Date: December 1, 2023 in Chicago

Attendees can always expect to receive a binder full of legal resources to take back to their office. The IBA staff carefully crafts the binders in preparation for the day!

BRIDGING INDUSTRY FORCES