Illinois Banker Magazine | January-February 2024 by Illinois Bankers

January-February 2024

The Official Publication of the Illinois Bankers Association illinois.bank

2023 IBA

Year in Review

IBA

ADVOCACY. EDUCATION. INDUSTRY RESOURCES.

PLUS u Regulatory Bootcamp: Interest Rate Risk u 8 Top Factors in Deciding the Best Core Banking System u CD Rates Rise at Slower Pace

ADDRESS SERVICE REQUESTED ILLINOIS BANKERS ASSOCIATION 3201 WEST WHITE OAKS DRIVE, SUITE 400 SPRINGFIELD, IL 62704

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? Ron Hobson with customer Jerry Reed of Brownstown, IL

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I always enjoy seeing Ron Hobson when he comes to our community bank. His ability to listen to what our bank needs, and then make recommendations is very beneficial to us. We appreciate the relationship we have with Ron and the MIB team. Gerald “Jerry” Reed, President/CEO First National Bank of Brownstown

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INDUSTRY NEWS

WELCOME January-February 2024 • Vol. 110 / No. 1 • illinois.bank

TABLE OF CONTENTS

2023

YEAR IN REVIEW

Last year brought many challenges 20 to the banking industry – rapid interest rate increases; increasing, then 34 decreasing inflation; and challenging times at the State Capitol and in Washington, D.C. Through it all, our bankers proved to be as resilient as ever. As the premier Association serving financial institutions in the State of Illinois, we have been proud to stand shoulder-to-shoulder with you. While we saw manyCOLUMNS challenges, we also experienced wonderful successes. Our members embraced our many benefits and we saw tremendous participation in our programs. As always, we were honored to celebrate the many anniversaries, 5achievements, and awards Messages from the of our bankers. We are proud, and humbled, to have been of service to the industry and we deeply appreciate your C-Suite continued support. As the year begins anew, we are committed to our mission: Advocacy. Education. Industry 6 Compliance Corner Resource…for all Illinois bankers. 8 Washington Update

NEW BANK MEMBERS Strengthening the Industry’s Voice

FEATURES

Year in Review

30 Welcome New Members Brickyard Bank | Byron Bank | Casey State Bank | Citizens 32 On the Move 22 Bank of Chatsworth | First Bank & Trust Company of Illinois 34 News and Notes

36 Special Recognition

NEW ASSOCIATE MEMBERS 39 Industry News Providing Industry Services and Resources 40 Ad Index

Banc Consulting Partners 41 In Memory Lawler Brown Law Firm Berkley Financial Specialists Mindsight 42 Education Calendar 20 Regulatory Bootcamp: ChaseCompGroup, LLC Purple Wave Auction Interest Rate Risk DocFox R&T Deposit Solutions Empyrean Solutions Signzy 22 What are Bankers' Eight Top Factors in Deciding Engage fi Our Mission: Advocacy. Education. SimpliCapital the Best Core Banking System? Farmers National CompanyIndustry Resource...for all Illinois bankers. Steffes Group, Inc. Our Vision: Connecting Bankers. FintechOS Advancing Banking.® 26 CD Rates Rise at Slower Pace for Illinois Community Titan Armored Glia Our Core Values: The Illinois Bankers Banks vs. National Peers Association will place IQ our members’ Huron Consulting Group interests Vertical first, be responsive to their needs, Visa ICI Consulting Inc. and provide them with the highest level of Event Highlights professionalism and service. The IBA staff IT Resource Voya Investment Management is the Association’s greatest asset. ourselves withInc. integrity Whistle Systems, 28 Chicago Area Chapter Holiday BreakfastKeyState Renewables, LLCWe will conduct

Bank Counsel Conference

HR PEER GROUP 29Sharing Small BankForms, CEO Best Forum Policies, Practices, and More

167

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

and respect. We will work together as a team, share information, build upon our strengths, embrace new ideas, and recognize and celebrate accomplishments.

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OFFICERS AND EXECUTIVE COMMITTEE MEMBERS Thomas Chamberlain Chair Iroquois Federal Savings & Loan Association

INTRODUCING THE 2023-2024 IBA BOARD OF DIRECTORS REGION 1

REGION 4

Rudy Gonzalez CIBC Bank USA

Scott Bland First Neighbor Bank N.A.

Frank Pettaway The Northern Trust Company

Brett Tiemann INB, National Association

REGION 2

Rick Parks First National Bank of Waterloo

Peter Brummel Grundy Bank

Anthony Nestler Chair-Elect Hickory Point Bank and Trust

Courtney Olson First Bank Chicago

REGION 3 Lawrence Horvath Heartland Bank & Trust Company Kathy Williamson Bank of Farmington

T.J. Burge Vice Chair Community Partners Savings Bank

REGION 5

Bethany Shaw Peoples National Bank, N.A.

FUTURE LEADERS ALLIANCE

MEMBERSAT-LARGE

Ted Macon Farmers State Bank of Hoffman

Gustavus Bahr PNC Bank, N.A.

Michele Petrie Village Bank & Trust, N.A.

J. David Conterio Hometown National Bank

Amy Randolph Busey Bank

David Doedtman Washington Savings Bank

Timothy Smigiel Liberty Bank for Savings

Brian Hannon Cornerstone National Bank & Trust Company

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

Robert Kelly Old National Bank

Dan Wujek State Bank of Cherry

Karlie Krehbiel Lisle Savings Bank

Lora Kalka FNBC Bank & Trust

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

Megan Collins Treasurer Bank of America

Executive Administration Randy Hultgren, President & CEO Erich Bloxdorf, Executive Vice President and COO/Interim Marketing Projects Manager Mindy Manci, Executive Assistant & HR Manager

Frank Pettaway Member-at-Large The Northern Trust Company

Pam Macha, Springfield Office Coordinator Finance and Administration Mark Bennett, CPA, Executive Vice President and CFO Tammy Squires, Vice President, Data and Technology

Courtney Olson Member-at-Large First Bank Chicago

Betsy Johnson Immediate Past Chair Solutions Bank

Randy Hultgren Secretary Illinois Bankers Association

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Matthew Keeling, Director Marie South, Financial Assistant

Carly Berard, Associate General Counsel

Adam Walsh, Vice President, Insurance Services

Michael Schasane, Compliance Counsel

Robin Lane, Director, Associate Membership

Nick Sladek, Administrative Assistant

Lyndee Fein, Director, Education & Conferences

Government Relations

Rachel Selvaggio, Director, Forums & Future Leaders Alliance

Ben Jackson, Executive Vice President Aimee Smith, Assistant Vice President Matt Imburgia, Director Member Relations

Denise Perez, Director, Education & Training Debbie Jemison, CAE, Director, Financial Literacy Maddison Augustine, Manager, Marketing & Digital Communications

Julie Winterbauer, Senior Vice President

Amy Sale, Education Assistant

Tim Robinson, Director, Bank Relations

Illinois Bankers Group Insurance Trust

Law Department

Illinois Bankers Business & Education Services, Inc.

Carolyn Settanni, Executive Vice President & General Counsel

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

Erich Bloxdorf, Plan Administrator Mike Mahorney, Senior Trust Advisor Hillary Meyers, Trust Manager

Editorial Office 3201 West White Oaks Drive Suite 400 Springfield, IL 62704 800-783-2265 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 2024 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.

MESSAGES FROM THE C-SUITE Chair, Illinois Bankers Association Let Us Be Resolute with our Resolutions

Thomas Chamberlain

Iroquois Federal Savings & Loan Association

As the calendar turns to 2024, it is an appropriate time to reflect on the successes of the past year and to look forward to the opportunities that 2024 will present. I was fortunate to have played an active role in the successes of the IBA in 2023. In the pages that follow, you will see the positive impact that the IBA had on our industry. I know firsthand how committed the IBA staff are to serving its members. I am also keenly aware of the role that the hundreds of bankers, who are so generous with their time and treasure, play to help make our industry so vibrant and important to the communities that we serve. Yes, I am proud of the contribution that our industry has had to society in 2023… and I am also proud of the work that the Illinois Bankers Association has done to help strengthen our industry.

And while 2023 was a successful year, we all know that we cannot rest on our laurels. We must remain resolute, ever vigilant in ensuring that the banking industry remains the lynch pin of our economy. I call on all Illinois bankers, regardless of your position, to resolve to improve yourselves, your banks, and your communities. I call on you to avail yourself of the numerous educational programs that the IBA has to offer. To participate, actively, in the conferences and conventions that connect you with your peers. And I urge you to resolve to be the resounding voice for Illinois bankers when your voice needs to be heard from the statehouse in Illinois to our nation’s Capitol. 2024 will be a year like no other. Let us resolve to be active participants in and for our industry so that we can look back and be proud of the industry that we have all shaped!

President & CEO, Illinois Bankers Association Maximize Value Through Engagement Benefits of membership accrue to those who engage. Bankers who use the offerings and attend the networking and educational programs find the greatest value and reward from their membership with the IBA. Resolve now to find and use beneficial resources through your Association to grow your people and yourself in 2024. Randy Hultgren

Illinois Bankers Association

You and your team are invited to join with hundreds of other leading bankers from around Illinois at The ONE Conference on March 7-8 in East Peoria. All who attend will grow through excellent training and profitable networking events, with experts teaching in specialized tracks that will position your bank to thrive. Schedule your

attendance at the IBA Convention on June 24-27 at Amelia Island, Florida, where banking executives from every part of Illinois will be gathering to connect and grow our great industry. It is well worth your time and effort to look at strong new offerings by the IBA, such as great tax and social benefits through the SolarCAP Program, and unique, predictable return opportunities through the Voya loan portfolio. You will not regret taking a few minutes this year to have one of the IBA insurance experts analyze your current coverage and premiums to make sure you are getting the best deal and protection possible. Thank you for your membership with the Illinois Bankers Association! We love working for you and together we will make 2024 the best year so far for your bank! January-February 2024 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION

Is there a regulation outlining what a bank must do to add an authorized signer to a business account? Do we need to collect certain information and does the signer need to attest to this information via signature?

ANSWER

We are not aware of a regulation outlining how to add an authorized signer to a business account. We recommend obtaining a copy of a corporate resolution from your business customer reflecting the addition of the designated individual as a signer for the business account, in addition to any requirements in your internal policies and procedures and the customer’s account agreement with respect to adding authorized signers.

We also recommend obtaining the new authorized signer’s signature on a signature card. Both of these actions should confirm that your customer has authorized the individual signer to withdraw funds and/or draw checks on the account.

QUESTION

Can we close our branch for 1–2 hours on a weekday so that our staff can attend a funeral visitation? We are a national bank.

ANSWER

Yes, we believe as a national bank, you are permitted to close a branch for a limited period of time on a weekday. We are not aware of any notice requirements, although we recommend providing your customers and your regulator with advance notice of the closing. Federal law requires FDIC-insured banks to notify their regulator and their customers ninety days before closing a branch, but that requirement does not apply when reducing a branch’s hours of operation. We are not aware of any other federal requirements or restrictions regarding days or hours of operation.

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The Illinois Promissory Note and Bank Holiday Act imposes several requirements before closing a branch on any particular day. However, we do not believe that this Illinois law applies to national banks since state officials may not exercise visitorial powers with respect to national banks (with very limited exceptions). Visitorial powers include the power to enforce compliance with applicable law. Consequently, this law, which requires notice to the IDFPR, would constitute an impermissible exercise of visitorial powers if it were applied to national banks.

QUESTION

We received a notice of garnishment from the Illinois Department of Healthcare and Family Services (HFS) requiring us to place a lien on one of our customer’s accounts for unpaid child support. We mistakenly released the funds to our customer, who has since withdrawn the funds and closed all of their accounts with us. HFS has now sent us a surrender notice, which is due in five days. Are we responsible for submitting the funds, even though we no longer have them?

ANSWER

Yes, we believe your bank is liable for the amount of funds that were subject to the lien and mistakenly released. The Illinois Public Aid Code authorizes HFS to serve notice of liens for past-due child support to financial institutions where the responsible payor has an account for “encumbrance or surrender.” A notice of lien or levy sent to a financial institution by HFS must “state that upon being served with the Notice of Lien or Levy that the financial institution shall encumber the assets in the account, and surrender and remit those assets within five days after being served with a Notice to Surrender Assets by the Department.”

The Illinois Public Aid Code requires HFS to enforce its liens on personal property in accordance with Article XII of the Code of Civil Procedure, which states that garnishees have a duty to hold property subject to a nonwage garnishment on behalf of judgment debtors. A garnishee is liable for the amount of the property if it “refuses or neglects to deliver property in his or her possession.” As a result, if the notice of lien you received included the required language, we believe your bank is liable for the amount of funds that were subject to the HFS lien and mistakenly released.

QUESTION

Should we continue to pay interest on an interest-bearing deposit account with no beneficiaries after all the account owners have died? Should we report the interest using the last surviving decedent’s Social Security number (SSN)?

ANSWER

Yes, you should continue paying interest after all the owners of an interest-bearing account have died unless your deposit agreement with the customers states otherwise. Unless your account agreement allows you to cease paying interest after the account owners’ deaths, we do not believe that their deaths would relieve your bank of its obligation to pay interest on the deposit account.

If there are no beneficiaries for a deposit account, you should be reporting interest earned after the account owners’ deaths using the tax identification number of the last surviving decedent’s estate, which must be provided by the personal representative handling the estate.

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.

January-February 2024 •

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WASHINGTON UPDATE

Against a Rising Tide of Regulation, Banks Must Row Together By Rob Nichols, President and CEO, American Bankers Association

Whenever a new election cycle comes along, it’s not uncommon to hear pundits make mention of “red waves” or “blue waves,” denoting potential power swings in Congress. But as bankers contemplate the future of our country and the policy environment that will shape the future of our industry, there’s another wave that we need to talk about: a tsunami of complex regulations that are hitting the banking sector as we speak. To be sure, the tide turned quickly: last year’s turbulent spring ignited a rulemaking frenzy at the banking agencies. Suddenly, new proposals sprang up to increase bank capital levels, impose a new long-term debt requirement, and make the resolution planning process more complex. Simultaneously, the CFPB imposed long-awaited small business reporting requirements under Section 1071 of the Dodd-Frank Act—which went far above and beyond what was outlined in the statute. The Federal Reserve issued a proposal to cap interchange fees under Regulation II, and the FDIC is now pursuing significant changes to its corporate governance guidelines. Against all that, the agencies finalized a long-awaited update to the Community Reinvestment Act framework—a staggeringly complex, 1,500-page final rule that creates significant new requirements that have the potential to fundamentally alter banks’ business strategies. Meanwhile, in Congress, banks are facing the resurgent threat of the so-called

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“Credit Card Competition Act,” which would apply Durbin Amendmentlike provisions to credit cards—the equivalent of lawmakers taking money from banks and putting it into the cash registers of mega-retailers. Taken together, these policies place a tremendous cost and compliance burden on banks of all sizes—at a time when they are already facing a tough operating environment due to a protracted period of high-interest rates and ongoing geopolitical tensions. These policies will also have devastating effects on consumers. Banking is, after all, a business—and in order for banks to offer the full range of financial products and services to meet the needs of communities, they need to be profitable, and have an operating environment that supports growth. The current regulatory landscape will do the opposite. Banks that are already considered well-capitalized by regulators’ own admission will be forced to hold even more capital in reserve—which means less capital will be available to lend to the local small business looking to expand, or to the young family looking to buy their first home. Simultaneously, changes to the fee income streams upon which banks have long depended could spell the end of free or low-cost checking products, and popular rewards programs that consumers value. What’s perhaps most concerning, however, is the fact that regulators don’t seem to understand the full impact of their actions. As we observed with the

• January-February 2024

Reg II rulemaking and the so-called “Basel III endgame” proposal, regulators are failing to adequately assess the potential costs of the individual regulations on banks and consumers—let alone contemplate what the cumulative impact of all these rules would be. ABA is sounding the alarm. We need to make sure policymakers in Washington—from members of the administration to lawmakers in Congress to the regulators holding the rule-writing pens—understand that the regulatory burden has a real-world cost, not just for banks, but for consumers, small businesses, and the American economy. If you’re reading this, I urge you to help us tell that story. Join our Bank Ambassador program to rekindle relationships with your congressional delegation and help educate policymakers about banking. Stay informed and send a letter about an issue that will affect your bank through ABA’s grassroots platform, SecureAmericanOpportunity. com. Make a plan to come to the nation’s capital in March for the ABA Washington Summit, and tap a colleague or two to come along. The sobering reality for banks right now is that rougher seas are likely ahead—but our best hope is to row together. E-mail Rob Nichols at nichols@aba.com. To learn more about the Bank Ambassador program, email ABA’s Laura Lily at llily@aba.com.

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2023

YEAR IN REVIEW

Last year brought many challenges to the banking industry – rapid interest rate increases; increasing, then decreasing inflation; and challenging times at the State Capitol and in Washington, D.C. Through it all, our bankers proved to be as resilient as ever. As the premier Association serving financial institutions in the State of Illinois, we have been proud to stand shoulder-to-shoulder with you. While we saw many challenges, we also experienced wonderful successes. Our members embraced our many benefits and we saw tremendous participation in our programs. As always, we were honored to celebrate the many anniversaries, achievements, and awards of our bankers. We are proud, and humbled, to have been of service to the industry and we deeply appreciate your continued support. As the year begins anew, we are committed to our mission: Advocacy. Education. Industry Resource…for all Illinois bankers.

NEW BANK MEMBERS Strengthening the Industry’s Voice

Brickyard Bank | Byron Bank | Casey State Bank | Citizens Bank of Chatsworth | First Bank & Trust Company of Illinois

NEW ASSOCIATE MEMBERS Providing Industry Services and Resources Banc Consulting Partners Berkley Financial Specialists ChaseCompGroup, LLC DocFox Empyrean Solutions Engage fi Farmers National Company FintechOS Glia Huron Consulting Group ICI Consulting Inc. IT Resource KeyState Renewables, LLC

HR PEER GROUP Sharing Policies, Forms, Best Practices, and More

167

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

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Lawler Brown Law Firm Mindsight Purple Wave Auction R&T Deposit Solutions Signzy SimpliCapital Steffes Group, Inc. Titan Armored Vertical IQ Visa Voya Investment Management Whistle Systems, Inc.

INDUSTRY NEWS

Award Winners Celebrating Accomplishments

Honorary Lifetime Member

Volunteer of the Year

50 YEAR CLUB Celebrating Career Milestones

Jerry Frump Metropolitan Capital Bank & Trust

Janis Miller First National Bank of Steeleville

Jean Hausvick Stillman Bank

Robert Narmont United Community Bank

Howard Jaffe Inland Bancorp, Inc.

Frank Novel Metropolitan Capital Bank & Trust

Richard Keneman Metropolitan Capital Bank & Trust

William Smigiel Liberty Bank for Savings

Patricia Kimbro Liberty Bank, A United Community Bank

Gaileh Tice West Central Bank

Betsy Johnson Solutions Bank

COMMUNITY SERVICE AWARD First National Bank of Waterloo Republic Bank of Chicago Sauk Valley Bank & Trust Company ILLINOIS BANKERS PAC BANK OF THE YEAR State Bank of Bement CENTENNIAL CLUB Liberty Bank for Savings

Mary Schroeder Pan American Bank & Trust

P. David Kuhl Catlin Bank Terry Lane United Community Bank

Randy McFarland VOLUNTEER BOARDS & United Community Bank COMMITTEES Influencing the Direction of the Industry Illinois bankers influencing and serving on a Board or Committee to steer the direction of the association into the future. Twenty-Nine members serve on multiple boards/committees.

185

102 18 Illinois banks and industry vendors represented

Boards & Committees

Banker of the Year

BOARDS Illinois Bankers Board of Directors Illinois Bankers Business Services Illinois Bankers Education Services Illinois Bankers PAC Illinois Bankers Group Insurance Trust Board of Trustees Future Leaders Alliance

James Roolf Old National Bank

Mary Wessel West Central Bank Roger Whitlow West Central Bank

COMMITTEES Agricultural Advisory Annual Conference Associate Member Audit and Finance Communications and Marketing Compliance Division Advisory BankTech Government Relations Human Resources Illinois Bankers Scholarship Membership Women in Banking

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2023

YEAR IN REVIEW

“Far and away the best prize that life has to offer is the chance to work hard at work worth doing.” -Theodore Roosevelt

PROFESSIONAL EDUCATION AND TRAINING Creating Brilliant and Successful Employees

2023 PARTICIPANTS

7208 WEBINARS

1669

CONFERENCES

786

SEMINARS

635

PEER GROUPS

653

SCHOOL/SERIES SESSIONS

FUTURE LEADERS ALLIANCE

SCHOLARSHIPS 12 •

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FUTURE LEADERS ALLIANCE The Next Generation of Bank Leaders

INDUSTRY NEWS

January-February 2024 •

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2023

YEAR IN REVIEW

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

248

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

443

COMPLIANCE PROGRAM ATTENDEES Spring Law Review Compliance Conference Bank Counsel Conference Regional Compliance Forums

IBA Compliance Connection

1092 14 •

IBA Members enrolled in the IBA Compliance Connection program – FREE to all member banks.

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TRUSTED PRODUCTS Industry resources to meet the needs of the industry.

INDUSTRY NEWS

Illinois Bankers Insurance Services understands the unique needs of banks, and are dedicated to providing top-quality insurance services to meet those needs, protecting your institution, your team, and your customers.

60+

22%

MEMBER BANKS INSURED

PREMIUM SAVINGS

100% RETENTION

The Illinois Bankers Group Insurance Trust is a not-for-profit entity, existing solely for the purpose of affording IBA members a source for purchasing quality and competitive group insurance products and services.

2,480+

INSTITUTIONS INSTITUTIONS

COVERED LINES COVERED LIVES

5.65%

14-YEAR AVERAGE INCREASE 14-YEAR AVERAGE INCREASE

BankTalentHQ is the premier talent management site for financial industry careers, brought to you by an alliance of state banking associations working together. Finding and keeping top talent is high on the list of challenges banks face, and the solution is BankTalentHQ!

300+ INSTITUTIONS EMPLOYERS

13,500 COVERED LINES JOB POSTINGS

14-YEAR AVERAGE INCREASE STATE AND NATIONAL BANKERS ASSOCIATION PARTNERS

SOCIAL MEDIA

Stay up-to-date by following us on social media!

4,163

LINKEDIN FOLLOWERS

1,600+ FACEBOOK FOLLOWERS

528

INSTAGRAM FOLLOWERS January-February 2024 •

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2023

YEAR IN REVIEW

Our ever-evolving efforts to defend and promote the banking industry led to significant successes in 2023. Our achievements are only possible with your support!

ADVOCACY SUCCESSES Influencing the Direction of the Industry LOCAL ADVOCACY We held the line and experienced no new local ordinances targeted towards banks and thrifts. STATE ADVOCACY Passed legislation lowering the regulatory burden for mortgage lenders by clearing up conflicting mortgage escrow notice requirements in Reg Z and Illinois law. Defeated onerous Illinois CRA rules in an ongoing implementation fight. Stopped legislation creating yet another layer of financial regulation: a quasi CFPB in Illinois. FEDERAL ADVOCACY Worked to defeat the merchants’ efforts to expand the Durbin Amendment’s payments market controls. Pursued legislative and regulatory pathways to overturn and/or amend Section 1071, the small business data collection requirements. Continued to advocate strongly for cannabis banking protections and for competitive equity with nonbank competitors.

$289,539 PAC DOLLARS RAISED $190,680

Contributions to State, Local, & Federal Candidates

34%

Member Banks Contributed 16 •

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INDUSTRY NEWS

PAC SUPPORT

ILLINOIS BANKERS PAC Supporting Industry Friends ROCK STAR Financial Institutions Amalgamated Bank of Chicago Bank & Trust Company Central Bank Illinois Cornerstone National Bank & Trust Company First National Bank of Waterloo Grundy Bank Iroquois Federal Savings & Loan Association Philo Exchange Bank Republic Bank of Chicago Solutions Bank State Bank of Bement State Bank of Cherry The First National Bank of Litchfield FAIR SHARE Financial Institutions CBI Bank & Trust CIBC Bank USA Community Partners Savings Bank Community Savings Bank DeWitt Savings Bank Farmers & Merchants State Bank of Bushnell First Mid Bank & Trust, N.A. First National Bank of Brookfield First National Bank of Steeleville First Neighbor Bank, N.A. First State Bank Holcomb Bank Hometown National Bank (LaSalle Bancorp, Inc.) Iroquois Farmers State Bank Liberty Bank for Savings Lisle Savings Bank Midland States Bank Millennium Bank Peoples National Bank, N.A. Quad City Bank and Trust Company Security Savings Bank SENB Bank Sterling Bank Stillman BancCorp N.A. The Bradford National Bank Washington Savings Bank

FOLLOWERS

CONTRIBUTORS Financial Institutions American Bank and Trust Company, N.A. American Community Bank & Trust Anchor State Bank Associated Bank, NA Bank of America Bank of Belleville Bank of Farmington Bankers' Bank Blackhawk Bank & Trust Busey Bank Carrollton Bank Central Federal Savings and Loan Association Citizens Community Bank Community Bank of Elmhust Community State Bank Farmers National Bank First Bank Chicago First Security Trust and Savings Bank First State Bank of Campbell Hill First Women's Bank FNBC Bank & Trust Heartland Bank and Trust Company Hickory Point Bank & Trust Home State Bank, N.A. Hoyne Savings Bank INB, National Association Itasca Bank & Trust Company Jersey State Bank Lakeside Bank Midwest Independent BankersBank Morton Community Bank Murphy-Wall State Bank and Trust Company NorthSide Community Bank Old Second National Bank OSB Community Bank Peoples Bank Peoples Bank of Kankakee County PNC Bank, N.A. Prospect Bank Sauk Valley Bank & Trust Company The Central Trust Bank The Clay City Banking Company U.S. Bank N.A. Union Federal Savings and Loan Association Village Bank & Trust, N.A. FOLLOWERS

FAIR SHARE Associate Members Armstrong Teasdale LLP Artisan Advisors LLC Backbase USA, Inc. Banc Card of America, Inc. Consolidated Communctions Credit Bureau of Muscatine, Inc. Data Business Equipment, Inc. Floodplain Consultants, Inc. interface.ai Ironcore, Inc. Mills Marketing NFP Executive Benefits Noonan & Lieberman, LTD. Shield Compliance Strategic Resource Management Systemax TCA Compliance Virtual Innovation, Inc. Weltman, Weinberg & Reis Co., LPA Wolf & Company, P.C.

SPONSORS American Bankers Association Backbase USA inc. Midwest Independent BankersBank OpenLending Corporation Remedy Consulting United Bankers' Bank PLATINUM Contributors Erich Bloxdorf Thomas Broeckling Tom Chamberlain John DuBois Gerald Fitzgerald, Jr. Tom Hough Suzanne Hough Randy Hultgren Ben Jackson Linda Koch Robert Koopman Mindy Manci Rick Parks John Pritchard Matthew Sitkowski Adam Walsh FOLLOWERS

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2023

GOLD CONTRIBUTORS Mark Bennett Peter Brummel Lenus Eggemeyer Courtney Farfour Andrew Fehlman Gary Genenbacher Steve Gerstenberger Jennifer Goodpaster Cindy Greene John Greenwood Doug Hankes Gary Hemmer J. Michael Holloway Daniel Hollowed Betsy Johnson Eric Johnson Charlie Kelly Mark Kleine John Kozak Jeffrey Lang Dennis Lutz David Mehrmann David Murray George Obernagel Denise Olds Kevin Olson Courtney Olson Shelley Perkins Doug Sanders Thomas Schlink Carolyn Settanni Michael Shane Mark Shashek Christine Shultz Aimee Smith Daniel Stein Michael Tenpas Candy Webb Kathy Williamson SILVER CONTRIBUTORS Robert Ambrose Samuel Banks George Barr Jeffrey Boundy Monica Bowe Stanley Bradshaw Christopher Breyman David Brozovich 18 •

PAC SUPPORT CONT. Rhonda Dalton Jacqueline Despain Van Dukeman Thomas Dunker Robin Elliot Jeremy Exell Amy Fahey Patrick Fitzgerald Dan Fleming Brian Goebbert Matt Hladio Robert Hoffmann Rhonda Houzenga Charles Hudspeth Matthew Imburgia Amanda James Karen Jensen Jeff Johnson Blake Johnson Tammy Johnson Alice Jost Kimberly Kenney Stephen King Greg Kistler Gregory Lykins Thomas MacCarthy Tom McIntire Brian Mickey Elizabeth Miller Eric Minor Allan Noe Elizabeth Otto William Parks Samantha Patrick Annette Pickrel Robert Plummer John Powers Amy Randolph Kent Redfern Kim Reising Kevin Rogers Steven Rosenbaum Frank Roth Brittney Shepherd John J. Smith Ashley Speed Daniel Spickard Thomas Tesdal Trent Troyer David Tyrolt Whitney Valdivia Denise Ward

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Scott Wehrli Michael Wickkiser Julie Winterbauer Deborah Womack Kenneth Wright

BRONZE CONTRIBUTORS Jaclyn Aldridge Ryan Anselment Kathy Berman Kevin Birlingmair Chad Bowker Shana Bradley Jackie Broyles Mike Bush Andrew Butts Peggy Campbell Michelle Carroll Lindsey Cloud Tami Coss Bill Daily Jeanne Dalman Chris Damato David Doedtman Katie Domeier Kelly Dransfeldt Scott Eaton John Eilering Nora Evans Cindy Fultz Maria Godina Sharon Gorrell Connor Gross Michelle Gross Craig Gustafson Jim Hannon Dan Harrington Phil Hayes Herb Henson Craig Hepner Brittany Herman Linda Hessenberger Ron Hobson Brian Hoffman Jake Hopkins Larry Horvath Jim Huiskamp Brandt Hutchcraft Rhett Isaac Wes Johnson Lora Kalka FOLLOWERS

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The Illinois Bankers Association values your bank's input! Contact us to update your staff lists, share your achievements, and disseminate industry news among your fellow banking professionals. Your insights matter to us! E-mail marketing@illinois.bank to share your updates.

Save the Date: Major Events Coming up soon in 2024 The ONE Conference | March 7-8 Economic Investment Day | April 16 Spring Golf Outing | May 16 The Annual Convention | June 24-27

January-February 2024 •

• 19

Regulatory Bootcamp: Interest Rate Risk

By Todd Taylor, CFA, CPA, Managing Partner, and Omar Hinojosa, CFA, Managing Partner

Preparing for Your Next Exam T he Fed Funds rate currently stands at 5.50%, levels not seen since 2001, and has risen 525 bps since March 2022. The rapid rise in interest rates has led to changing behaviors among depositors, causing many to withdraw funds from institutions in the pursuit of higher interest rates elsewhere. Financial institutions have seen increasing competition for a shrinking supply of deposits forcing them to adapt and react with new deposit pricing strategies. As your institution prepares for the next regulatory exam, a few factors to consider as part of the interest rate risk management process include:

Deposit Betas – Betas are not static, they are dynamic!  While it is no surprise that funding costs have been increasing, what may be a surprise is the rate at which they have been increasing. The banking industry as a whole has had a beta of 37% throughout this rising rate cycle (1Q2022 – 2Q2023). However, more recently, the beta from 3Q2022 – 2Q2023 has been 69%. Just as we are seeing now, betas historically accelerate throughout rising rate cycles, which points to the importance of having up-to-date beta assumptions in your interest rate risk model. An updated study will be an important piece of information to have on hand during your next exam.

to have to replace these funds with more expensive, higher beta, wholesale funding. On top of this, many institutions have seen depositors migrate funds out of low-cost non-maturity deposits and into higher cost money market and time deposit accounts, adding to the pressure on cost of funds and net interest margin. This dynamic movement of funds is typically not captured in most interest rate risk models, which often assume a static balance sheet. For example, if the beta on an account is 5%, but 20% of those balances left and were replaced by wholesale funding, the impact on cost of funds could be understated. Updating deposit decay studies and performing ‘what-if ’ scenarios in your interest rate risk model to simulate deposit run-off and migration will be important from a risk management perspective. Loan Prepayment Speeds – With the rapid increase  in interest rates, prepayment speeds for many loan categories have slowed compared to recent years. This is especially true for fixed rate mortgages, as borrowers have little to no incentive to prepay. Evaluating these assumptions is another way to help improve the accuracy of the model and satisfy examiners that key assumptions are regularly reviewed.

Deposit Outflows and Migration – For the first time  in over 30 years, the banking industry experienced net

Non-Parallel Shifts – We did not get into this  deeply inverted curve via a parallel move in the curve

deposit outflows in 2022. Through the first two quarters of 2023, outflows intensified, causing many institutions

and we’re not going to get out of it with one either. Simulating alternative yield curve movements, including

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• January-February 2024

a further inversion of the yield curve, can help demonstrate to examiners that your institution is actively monitoring more than just the standard parallel shock scenarios. Back-Testing – The changes in terms  of the rate environment and shifts in the balance sheet experienced in the industry will undoubtedly put models’ forecasts to the test. While variances in some cases can be explained by factors such as changing interest rates and migration of deposit balances, evaluating the back-test can also identify if there are opportunities to fine-tune assumptions and enhance the accuracy of the model. Independent Reviews – A review of  the institution’s overall methodology of monitoring interest rate risk should be conducted periodically. Some examiners prefer this to be completed every 12 months, some prefer up to 24 months. This review should include areas such as a review of the IRR/ ALM Policy, the proper use of the interest rate risk software, back-testing, ALCO meeting minutes, and assumptions. This can be done internally by individuals independent of the interest rate risk process, or externally, for example, by internal auditors.

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HUB | Taylor Advisors’ Take One word that can summarize this rising rate cycle is “Dynamic”! Everything from deposit betas to deposit balances, to the shifts in the yield curve have changed meaningfully during this cycle. All of this points to the need for evaluating assumptions in the interest rate risk model, which will benefit your institution from both a regulatory perspective and a risk management perspective. Examiners will want to see support for key model assumptions, as well as evaluation of alternate/stressed scenarios. Thorough documentation and preparation in the interest rate risk area will go a long way in helping prepare for your institution’s next exam.

Your leading bank deserves leading expertise insurance@illinois.bank | 217-789-9340

Read HUB / Taylor Advisors’ other Regulatory Bootcamp education article on “Liquidity”: www.tayloradvisor.com/rbp1l

January-February 2024 •

• 21

WELCOME

What are Bankers'

8 Top Factors

in Deciding the Best Core Banking System? by Jason Young, CSI

As the new year approaches, many institutions will reflect on their goals and plans for the year ahead. And some may even begin evaluating whether to change core providers as current contracts near expiration. But what should bankers consider when deciding upon the best core bank system? We used findings from surveys, industry research reports and interviews from recent years to develop eight factors that banks should keep in mind when deciding on the right core banking platform.

Top Considerations for Evaluating a Core Platform Factors for switching technologies include cost, satisfaction with their existing technology suites or a cultural mismatch with their provider. But since a conversion often overhauls business processes and takes a considerate monetary and time investment, deciding on the right partner requires a great deal of consideration and discussion with key stakeholders at the bank. Here are eight factors that should play a part in bankers’ evaluation of core platforms.

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• January-February 2024

Expected Comprehensive Functionality

Bankers favor a core platform approach to technology primarily because it eliminates dealing with multiple vendors and disjointed experiences. So, it’s hardly surprising that product suites and functionality top the list of essentials as bankers begin searching for a new core. Core contracts can last for decades, so banks must consider whether the vendor’s technology will successfully carry them into the future and grow alongside them. A core banking platform must offer comprehensive functionalities to support various banking operations, including customer onboarding, account management, deposits, loans, payments and reporting. This also includes integrating digital banking solutions to rival big banks and digital experiences elsewhere.

Whether a Core Will Maximize Return on Investment

Banks evaluate the cost-effectiveness of a core banking platform by considering factors such as the initial implementation investment, ongoing support costs and potential customization or integration expenses. The best deals with new technologies often originate from the core vendor or their existing partners, as there are fewer implementation and integration steps.

Although customer demands often drive technological priorities, most investments ultimately seek to save money one way or another. For instance, responsive cloud-based architecture can eliminate some software and hardware expenditures. Built-in efficiencies like streamlined onboarding can also bolster the bottom line by helping customers open accounts and spend money from them faster.

Core Banking Platform Customization and Ease of Use

Bankers look for banking functions to reliably fit together and interact cohesively. The core platform should be easily navigable with search functionality, easy-to-decipher data, readily available tutorials and reliable service representatives who assist with the platform as needed. On the vendor side, a thoughtful adherence to UX design principles can go a long way. Bankers often praise platforms with an aesthetic appeal, a natural hierarchy, straightforward language and accessibility. Overall, they look for consistency throughout the platform to create a coherent, straightforward experience when serving customers or accessing their data.

The Reliability and Stability of the Core Platform

Given the stakes of employee demands and increasing competition, banks require a core banking platform that is reliable and stable. It should be capable of handling high transaction volumes and processing requests accurately and efficiently while maintaining uninterrupted service availability. If there are service interruptions, those support tickets should be resolved as promptly and effectively as possible. For that reason, many banks ask questions in the determination phase about how many support tickets a technology logs in a given week and how long it takes to resolve them. Further, a solid platform should have stringent security measures, including data encryption, access controls, audit trails and compliance with regulatory standards.

The Quality and Accessibility of Bank Data and Analytics

insight into customer behaviors, performance indicators and regulatory reporting requirements. Accessing and querying core data should easily enable banks to identify opportunities for growth and relationship extension. As such, these banks look for robust reporting tools, account analysis and data-driven insight into customer profitability. Customer relationship management (CRM) is one such data source that offers efficiencies, as it enables bankers to track behaviors and transactions across the system on the customer level. Many banks also look for insight into overall profitability and net interest margin, as well as narrow performance analysis of branches and officers.

The Core’s Scalability and Flexibility

Most institutions seek out a core platform that supports growth and can scale accordingly. This includes accommodating increased transaction volumes, additional branches and new products or services. While there are similarities across the board, every bank also has unique business processes and customer needs. Extensive API catalogs and support for thirdparty technology integrations assist in that pursuit and enable institutions to stay adaptable, even if the core provider doesn’t have the exact solution the institution needs. The resulting agility ensures that banks can quickly respond to market demands, regulatory requirements and technological advancements.

Tight Integration of All Banking Systems

A cohesive core banking platform allows for easy data transfer that reduces expenses, opens accounts faster and enables the ability to launch new products more affordably. It also improves the overall user experience by making each component piece – even if it was added later or by a different vendor – fit into the technological puzzle without feeling tacked on or behaving like a disparate, siloed system. The standard of integration relates closely to the user experience, as it can help eliminate redundant processes and offer a more seamless feel. Tight integration also encompasses the digital experience—meaning the bank’s digital experience on a phone should mirror that on a laptop or tablet.

Easy access to core data represents a massive advantage for a growing bank. Bank data and analytics offer January-February 2024 •

• 23

Core Vendor Support and Expertise

Finally, the reputation and service offered by the core banking platform vendor are vital considerations for banks. While system functionality is vital in vetting the provider, the decision often comes down to which vendor will make the best partner, both in innovation strategy and culture. To understand whether the technology provider is a good fit, bankers often assess their industry reputations, the quality of interactions and how they answer questions. It’s also worthwhile for many to follow up with as many references as possible and ask other bankers’ opinions at networking events. Bankers also emphasize the importance of reliable technological implementations. They expect products to be fully ready for use, avoiding delays and ensuring a successful rollout that meets the needs of their customer

24 •

• January-February 2024

base. Banks also require reliable assistance and dedicated personnel who can address their concerns reliably and proactively.

Searching for the Right Core Banking Platform By carefully evaluating core banking technology, banks can empower themselves to thrive in the digital age while delivering exceptional customer service and creating a lasting partnership with their technology provider. Check out our Definitive Guide to a Modern Core Banking Partnership at www.csiweb.com/what-to-know/ content-hub/whitepapers/definitive-guide-modern-corebanking-partnership for a deep dive into the topic. Jason Young serves as CSI’s senior director of enterprise banking.

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Stay ahead in today’s unpredictable interest rate landscape with S&P Global Market Intelligence. Make informed financial decisions with ease as we offer a comprehensive solution for interest rates data and analytics. Let us be your go-to source for up-to-date depository rates information. spglobal.com/IL-Interest-Rates

January-February 2024 •

• 25

CD Rate Rises At Slower Pace for Illinois Community Banks vs. National Peers by Syed Muhammad Ghaznavi and Maitree Christian, Market Intelligence

The average rate community banks in Illinois pay on one-year certificates of deposit continues to increase, but it remains below the national community bank average. As of Dec. 5, the state's community banks saw the rate on one-year certificates of deposit (CDs) rise 9 basis points from July 26 to Dec. 1 to 1.67%, while the national community bank average increased 20 bps to 2.23%, according to an S&P Global Market Intelligence analysis. The Illinois community bank average rate on one-year CDs is higher than the overall state average rate of 1.22% but lower than the overall national average rate of 1.83%. Significant tightening of monetary policy by the Federal Reserve and liquidity pressure across the banking industry pushed depositories throughout the US to raise deposit rates in 2023. CDs, which banks use to hold onto the most

ratesensitive balances and insulate savings and transaction portfolios from pricing pressure, continued to grow rapidly in the third quarter, increasing 10.1% sequentially. Analysts at Jefferies wrote in a Nov. 13 report that banking heavyweights JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. all have CD or special offer rates of 5% or more. Among the 15 largest community banks in Illinois, Banterra Bank offered the highest CD rate at 4.43%, while Old Second National Bank, Heartland Bank and Trust Co. and Lakeside Bank were paying the lowest at 0.10% each, as of Dec. 1.

Change in interest rates since July 26 at 15 largest community banks in Illinois

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• January-February 2024

Used Car Loans at Illinois Community Banks

Mortgage Rates Surpass National Average

The average rate Illinois community banks offer on 36-month used car loans stood at 6.71% as of Dec. 1, which is below the national community bank average of 7.13%.

The 30-year fixed mortgage rate average at Illinois community banks was 7.39%, higher than the national average rate of 7.37%, the state average of 7.33% and the national community bank average of 7.35%, but lower than the state credit union average of 7.44%. The national credit union average rate was 7.36%.

Carrollton Bank offered the highest 36-month used car rate among the 15 largest community banks in Illinois at 8.00% while Heartland Bank and Trust Co. offered the lowest rate at 5.49%. US banks' collective auto loans decreased to $541.47 billion in the second quarter, from $546.66 billion in the linked quarter. The auto loan delinquency ratio at US banks rose 22 basis points sequentially in the second quarter to 2.74%.

30-year fixed mortgage rates across Illinois

The state community bank average rate rose 52 basis points from July 26 to Dec. 1, while the state average rate was up 44 basis points and the national average rate was up 56 basis points. In Illinois, First American Bank is the community bank offering the highest rate on a 30-year fixed-rate mortgage of 7.99%, while Old Second National Bank is offering the lowest rate of 7.00%.

15-year fixed mortgage rates across Illinois

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.

January-February 2024 •

• 27

EVENT HIGHLIGHTS Chicago Area Chapter Holiday Breakfast November 30, 2023 The Westin Chicago Lombard A large crowd of more than 110 bankers and guests gathered at the Westin Chicago for the annual Chicago Area Chapter Holiday Breakfast. The Chicago Area Chapter contributed $5,000 to Illinois Bankers PAC. Given the heightened incidence of fraud in the banking industry, the IBA hosted a fraud panel discussion, moderated by Courtney Olson,

2023 Chapter Treasurer and SVP and Managing Director of Business Banking with First Bank Chicago. The panelists included Special Agent in Charge Doug Zloto, US Secret Service, Team Leader, Kevin Freeman, US Postal Inspection Service, and Intelligence Analyst, Michael Young, Federal Bureau of Investigation.

Thank you to our sponsors!

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• January-February 2024

Bank Counsel Conference December 1, 2023 The Drake Hotel, Chicago The annual IBA Bank Counsel Conference, held on December 1, 2023 in Chicago, is the most prestigious gathering of bank counsel in Illinois. With nearly 150

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 2024.

Small Bank CEO Forum November 15, 2023 Bloomington, IL

Bankers from across the state gathered at Bloomington Country Club for the final Small Bank CEO Forum of 2023 on November 15th. Chief Executive Officers met to discuss pressing issues, exchange ideas, and shared

solutions among colleagues in a comfortable and professional environment. This session was facilitated by Cliff Bumgarner, Partner, Kerber, Eck & Braeckel LLP. The next Small Bank CEO Group is meeting May 8, 2024.

January-February 2024 •

• 29

WELCOME Welcome to the Illinois Bankers! NEW ASSOCIATE MEMBERS Empyrean Solutions

304 Cambridge Rd Woburn, MA 01801-6080   Website: empyreansolutions.com Contact: Roxanna Bradford roxanna.bradford@empyreansolutions.com LinkedIn: www.linkedin.com/company/ empyreansolutions Empyrean's software allows financial institutions to take control of their balance sheet management, scenario planning, and risk/performance analysis in a single integrated software platform. The company offers a host of modules, including asset and liability management, liquidity stress testing, deposit analytics, budgeting, and profitability. Empyrean works with over 600 financial institutions ranging from under $100 million to over $200 billion in assets.

Huron Consulting Group

550 W Van Buren St Chicago, IL 60607-3827   Website: www.huronconsultinggroup.com/ Contact: Adam Wells adwells@hcg.com Facebook: www.facebook.com/HuronConsulting Twitter: twitter.com/Huron LinkedIn: www.linkedin.com/company/ huronconsulting We serve Banking & Capital Markets, Asset Management, Insurance Payments, and Private Equity markets. With our enterprise risk, credit risk, and financial crimes teams, we can provide the necessary resources to accommodate your immediate needs providing leading industry practices and enabling revenue growth in a cost-efficient manner. Our Corporate Finance - Financial Institution Advisory team is focused on delivering value to our clients in an efficient way to ensure successful initiatives.

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• January-February 2024

The team consists of over 10 industry leaders supplemented by staff/contractors with leadership possessing over 100 years of enterprise risk strategy knowledge.

Alkami Technology

5601 Granite Pkwy Ste 120 Plano, TX 75024-6666   Website: www.alkami.com Contact: Nichole Cunningham nichole.cunningham@alkami.com Facebook: www.facebook.com/AlkamiTech Twitter: twitter.com/alkamitech LinkedIn: www.linkedin.com/company/alkamitech Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through: - Retail banking - Business banking - Digital account opening - Treasury management solutions Data and marketing solutions.

Stay informed and connected with the IBA on social media! @illinoisbankers @illinois-bankers-association @illinoisbankers Like and follow the IBA’s social channels to ensure you receive the latest updates, industry insights, and expert perspectives shaping our banking community.

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January-February 2024 •

• 31

ON THE MOVE F&M Bank Mike Holloway, Knox/Warren County President of F&M Bank is pleased to announce that Jamie Swearingen has been hired as a Business Banker. In this role, he will serve as a liaison for business clients and will be responsible for maintaining existing relationships. Jamie will report to Trent Cox, Vice President Commercial Banking Manager. Swearingen brings extensive sales and business experience to the F&M Bank team. He started his career in 2013 at United Facilities. He then moved on to sales and finance positions in the auto industry from 2014 to present with the most recent position of Business Manager. In this capacity, he managed the legal paperwork, financing and gained experience in lending operations while acquiring and building relationships. He holds a Bachelor’s Degree in Law Enforcement and Justice Administration from Western Illinois University. In adding Swearingen to the commercial banking team, Mike Holloway, Knox County President, says, “Together with our current team, Jamie will make a substantial impact on our ability to provide top notch service to our current clients and prospective clients. We look forward to the opportunities this will provide.”

32 •

Swearingen was born, raised and currently resides in Abingdon with his Australian Shepherd named Brady.

UMB Bank UMB Bank, n.a. Capital Markets Division announced the appointment of Larry Langowski as Senior Vice President, Investment Officer. In his role, Langowski is responsible for new business development, presenting fixed income options and ideas to clients, as well as executing trades for clients of the bank. Langowski brings over 13 years of experience in the financial services industry to the team. Prior to joining UMB, he served as Managing Director at Huntington Bank and Partner and Senior Vice President at Hutchinson Shockey Erley & Company. He earned an MBA from the Kellogg School of Management and a Bachelor of Arts from Northwestern University. He holds the FINRA Series 7 and 63 licenses. He was also awarded a Fulbright Fellowship. He was globally selected to be one of fourteen fellows to the U.S. Fulbright Binational Business Program in Mexico City, Mexico, where he earned an international business certificate. Langowski is also an Olympian. He competed in the 2008 Olympics in Beijing in freestyle wrestling, representing Mexico.

• January-February 2024

MIB Banc Services, LLC MIB Banc Services, LLC has announced the appointment of Luke Roling as Assistant Vice President/Loan Review Officer. Currently, he assists community banks with loan reviews and lending compliance audits. Luke has over 10 years of experience in banking, joining us from Hawthorn Bank where he held the title of Commercial Loan Officer. Before that he was a Loan Officer at Farmers Bank of Lohman, originating agricultural, commercial, mortgage, and consumer loans. Luke began his banking career as a Teller while going through college before being promoted to Direct Loan Assistant and Floor Plan Coordinator. Luke earned his Bachelor’s Degree in business administration from Lincoln University in Jefferson City, Missouri, from which he graduated with honors. Luke is also a 2017 graduate of the Missouri Bankers Association (MBA) School of Compliance Credit Module.

Federal Reserve Bank of St. Louis Alberto G. Musalem is the incoming president and CEO of the Federal Reserve Bank of St. Louis, one of the 12 regional Reserve banks in the Federal Reserve System. He begins his post on April 2, 2024.

In this capacity, he will participate on the Federal Reserve’s Federal Open Market Committee, or FOMC, which meets at least eight times each year to set the direction of U.S. monetary policy. He will also oversee the activities of the Eighth Federal Reserve District at its St. Louis headquarters and branches in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn., including economic research, fiscal agent responsibilities for the U.S. Treasury, supervisor of District financial institutions, community development, and regional payments, transparency, technology and support functions. He is an economist and executive with public and private sector experience in economic policy, finance and markets. Musalem served as CEO and Co-Chief Investment Officer of Evince Asset Management LP (2018-’22), a quantitative investment technology company that he co-founded in 2018. He executed on the company’s business and investment strategies, product development, stakeholder engagement, culture, resource alignment, planning and evaluation. From 2014-2017, he served as Executive Vice President of the Federal Reserve Bank of New York and Senior Advisor to the President. He led the Integrated Policy Analysis Group and the Emerging Markets and International Affairs Group, served on the Bank’s Management Committee and represented the New York Fed on the Committee on the Global Financial System (CGFS) of the Bank of International Settlements. Musalem served as Managing Director, Partner and Global Head of Research of Tudor Investment Corporation (2000-2013), where he was a member of the firm’s Management, Capital Allocation and Strategy committees and worked with diverse groups of portfolio

managers, globally and across asset classes, on investment strategies grounded on the relation between economic policy, macroeconomic performance and markets.

Byron Bank

Earlier in his career, Musalem served as economist at the International Monetary Fund, working closely with IMF teams and authorities in several countries on monetary policy and inflation targeting frameworks, fiscal responsibility rules and banking systems during the emerging market crises of the late 1990s. He is an adjunct professor of finance at Georgetown University’s McDonough School of Business and serves on the boards of the Federal Home Loan Mortgage Corporation (Freddie Mac) and Man Group. He will step down from these positions before taking office. He is a member of the Council on Foreign Relations and the Economic Club of New York. Previously, he served as Chair and Director of School the World, a nonprofit committed to solving extreme poverty through education. Musalem earned a Ph.D. in economics from the University of Pennsylvania. He also holds Master’s and Bachelor’s Degrees in Economics from the London School of Economics and Political Science. Musalem was born in Bogota, Colombia, and lived in Brazil and Argentina before emigrating to the U.S. and graduating from the public school system in Maryland.

Byron Bank is pleased to announce that Scott N. Mincemoyer, current CFO of Byron Bank, will be stepping into the role of President, bringing fresh perspective and continued dedication to the bank’s core values and community focus. Scott is a veteran in the banking industry and has over 37 years’ experience. With an impressive track record at Byron Bank, he is set to lead the bank into its next phase of growth and customer service excellence. With his deep understanding of the financial landscape and commitment to the bank’s philosophy, Scott is ideally positioned to steer Byron Bank towards new heights. In conjunction with this transition, Byron Bank’s current President, Brent Baker, will be moving into the role of Executive Vice President of Commercial Lending, allowing Brent to leverage his extensive experience and relationships to further enhance the bank’s commercial banking capabilities. These leadership changes reflect Byron Bank’s dedication to its “You Ask. We Help.” philosophy – a commitment to understanding and addressing the unique needs of their customers and community.

January-February 2024 •

• 33

NEWS AND NOTES IIlinois Banks Make The American Banker’s List of 2023 Best Banks to Work For

First Bank Chicago Climbs to #2 After notching a top 5 finish in the 2022 American Bankers List of 2022 Best Banks to Work For, First Bank Chicago has climbed to #2 on the list of 2023 Best Banks to Work For in the United States. American Banker is recognized as a leading nationwide industry information source. American Banker determines the ranking in collaboration with Best Companies Group. They identify banks that excel at creating a positive and supportive workplace for their employees. This year, 90 banks earned a spot in the ranking of Best Banks to Work For. First Bank Chicago was ranked No. 2 climbing from No. 5 in 2022. First Bank Chicago Northbrook, Illinois Assets: $2.2 billion President and CEO: Eric Ephraim No. of U.S. employees: 146 34 •

First Bank Chicago woos its new employees from the get-go. The onboarding process includes gifts and new hire events where new staff members can meet senior managers and their colleagues. To keep employees engaged, the Northbrook, Illinois-based bank offers a variety of career development opportunities, such as on- and off-site training, conferences, webinars, leadership programs and lunch and learns. And the bank strives to provide internal opportunities to those with potential. Last year, 40 staff members were promoted.

Additional Illinois Banks to Make the List Signature Bank Rosemont, Illinois Assets: $1.7 billion President and CEO: Michael G. O'Rourke No. of U.S. employees: 96

• January-February 2024

Signature Bank in Rosemont, Illinois, faced a unique challenge this year when another bank with the same name — Signature Bank in New York — failed in March. The sudden event required an all-handson-deck response, said President and CEO Michael G. O'Rourke. The marketing team reached out to news and social media outlets to request any necessary corrections and remove the misuse of the bank's logo. Branch staff fielded calls from confused customers and reassured them of the company's safety and soundness. "Every team member was behind the process; from sharing social posts to making calls to personally visiting clients," he added. "It went a long way with our established relationships. I am extremely proud of everyone's collaborative efforts and commitment under a highly unexpected and traumatic situation."

Busey Bank Champaign, Illinois Assets: $12.2 billion Chairman and CEO: Van Dukeman No. of U.S. employees: 1,378 Busey Bank has a three-pronged approach to ensure that its culture shines throughout the organization. It starts with recruitment. The Champaign, Illinois, bank works with various recruiting platforms and local recruiting efforts to reach an expanded talent pool. Second, Busey invests in training its new hires and veteran employees. It has spent more than $6 million in training and development since 2014, and over the last two years, staff members have gone through more than 60,000 hours of training, according to the bank. Finally, management recognizes staff members for their hard work through individualized feedback. This is done through both peer-topeer and supervisor-to-employee feedback programs. Evergreen Bank Oak Brook, Illinois Assets: $1.5 billion President and CEO: Darin Campbell No. of U.S. employees: 196 Evergreen Bank Group is taking a few steps to further ensure that all employees feel a sense of belonging at the Oak Brook, Illinois, institution. It is enhancing its intranet, increasing the number of "State of the Bank" addresses to better engage and connect with staff members and improving its onboarding process. This is in addition to other benefits that the bank already provides, such as public shoutouts and spot bonuses for a job well done. "[W]e promote the idea that employees are on a winning team and that we are a growing

company which means there are opportunities for advancement within the company — that hard work pays off and our company would much rather promote within before looking outside the company," said Darin Campbell, president and CEO. Best Banks to Work For results are based upon an anonymous survey and a thorough review of the benefits and perks offered. The full list of 2023 Best Banks to Work For can be found at www. americanbanker.com. The survey and awards program is designed to identify and honor banks with the best cultures for helping employees thrive. The process includes two surveys to gather detailed data about each participating company. Best Companies Group conducts the surveys, analyzes the data, and determines the winners and rankings. The first part of the process is the Employer Questionnaire (EQ). The employer completes an online survey, detailing company policies, practices, benefits, and demographics. In the second part, employees complete an anonymous Employee Engagement & Satisfaction Survey (EESS). The employee survey is an in-depth set of statements that employees are asked to respond to. To be considered for participation, banks must be in business for a minimum of one year and have a minimum of 50 employees working in the United States. 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.

Welcome to the IBA Family! In December 2023, the Illinois Bankers welcomed Matthew Keeling to our staff. Matthew is the new Director, MIS and Finance. Matthew comes to the IBA from Hospital Sisters Health System where he worked in the finance and accounting department. Prior to Hospital Sisters Health System, Matthew was an insurance agent with Shelter Insurance. Prior to the start of his career, Matthew attained his bachelor’s degree from Bowling Green State University in Ohio. Matthew’s hobbies are focused on anything related to sports. He is a big fan of the Chicago Cubs, Chicago Bears, Chicago Blackhawks, Chicago Bulls, and Notre Dame football. When asked what prompted him to join the IBA Matthew noted that, “During the interview process I got to speak with many of the people that work for the IBA. You could see/hear the passion they have for the members of the IBA and the work they do for their members. It also felt as if the staff was a family rather than just colleagues.” Matthew and his wife Ashley, daughters Addison, Payton, and Kaisyn, and Silver Lab named Tilly reside in Auburn, Illinois. And a fun fact about Matthew: all his children are named one way or another after his favorite sport teams. Welcome to the IBA Matthew…it is great to have you!

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SPECIAL RECOGNITION Huiskamp Celebrates 50 Years at Blackhawk Bank & Trust Blackhawk Bank & Trust announced that on December 1, 2023, Gerry Huiskamp celebrated 50 years with the organization. Gerry joined Blackhawk Bank & Trust on December 1, 1973, and within six weeks he was promoted to President. Gerry added Chairman of the Board in January 1985, positions he held until February 2014, when he became the Executive Chairman of the Board. At that time, Jim Huiskamp was promoted to President. Three years later, Gerry

became the Chairman of the Board, at which time, Jim Huiskamp was promoted to CEO. Gerry retired from day-to-day operations in February 2022, when Eric Huiskamp Mutka took over the operational duties and was elected to the Board. Gerry continues to serve as Chairman of the Board of Blackhawk Bank & Trust. In addition to his contributions to Blackhawk Bank & Trust and the

communities they serve, Gerry also gave freely to the industry he loved. Gerry served on multiple Illinois Bankers Association committees and served on the IBA Board of Directors from 1999 - 2001. It is indeed rare in our times for an individual to demonstrate the loyalty that Gerry has to Blackhawk Bank & Trust. Congratulations Gerry on attaining this wonderful milestone in your career!

Ohlau Retires from First State Bank of Campbell Hill Board After serving 26 years on the Board of Directors for First State Bank of Campbell Hill, Jerry L. Ohlau has retired from the Board, effective December 1, 2023. The stockholders, employees and other current directors thank Mr. Ohlau for his years of service and wish him the best. 36 •

To fill Mr. Ohlau’s seat until the next annual stockholders’ meeting, the board has appointed Mark K. Arbeiter. Congratulations, Mr. Arbeiter, on your appointment to the bank’s Board of Directors! Retiring Board Member Jerry L. Ohlau (l) and new Board Member Mark K. Arbeiter (r).

• January-February 2024

January-February 2024 •

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MORE THAN $175,000 IN SCHOLARSHIPS AVAILABLE ANNUALLY

The Illinois Bankers Association is pleased to

Scholarships are distributed through the IBA

offer scholarship opportunities to its member

for the Graduate School of Banking and the

bankers through the Herbert V. Prochnow

GSB Human Resource Management School.

Educational Foundation, a supporting organization to the Graduate School of Banking at the University of Wisconsin – Madison. The GSB Prochnow Foundation offers more than $175,000 dollars in scholarships every year to bankers who want to improve their careers and organizations through education.

Apply today for a scholarship to attend a program at the nation’s leading and most progressive banking school. For details, contact Denise Perez at the Illinois Bankers Association at dperez@illinois.bank.