Illinois Banker Magazine | March - April 2023

5 Messages from the C-Suite

6 Compliance Corner

18 Education & Events Calendar

22 News & Notes

24 Welcome New Associate Members

25 Retirement

39

Our Mission: Advocacy. Education. Industry Resource...for all Illinois bankers. Our Vision: Connecting Bankers. Advancing Banking.®

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

BOARD OF DIRECTORS

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

Betsy Johnson Chair Solutions Bank, Forreston

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

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

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

Frank Pettaway

Member-at-Large

The Northern Trust Company, Chicago

Michelle Gross Immediate Past Chair State Bank of Bement

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

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

Law Department

Carolyn Settanni, Executive Vice President & General Counsel

Carly Berard, Associate General 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

Randy Hultgren Secretary Illinois Bankers Association

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.

Chair, Illinois Bankers Association

This February , we traveled to Washington, D.C., and met with Freshman Congressmen Jonathan Jackson, Delia Ramirez, Nikki Budzinksi, and Eric Sorensen. Their schedules were tight, but they granted an audience to our team representing the Illinois Banker Association. Although our mission was not to discuss specific policies in detail, it quickly became apparent that a consistent message and collaboration within our industry were necessary. There is no doubt that these Members of Congress understand the importance of community banks and the roles we play in our communities. We discussed many critical issues, including housing and home ownership, and touched on maintenance and the retention of homes.

As bankers, one of our important responsibilities is to work with the community, our customers, and future and existing homeowners and consumers. April is Financial Literacy Month and provides numerous opportunities to find resources and tools. As you search for the best method to educate the next generation, I would appreciate it if you could keep financial literacy in mind. As I have called on all Illinois bankers to become fanatics of the IBA, I know that we are already fanatics of our communities and customers. We have a common goal of working with future generations and preparing them to be ready for their financial needs. Please consider using the many resources offered by your association – the IBA shares your passion for educating your current and future customers.

President & CEO, Illinois Bankers Association

The Power of a Bridge

Bridges provide connections and opportunities that can change lives and bring long-term strength. Our goal at the IBA is to create strong bridges for bankers so you can continue serving your customers with excellence. The future of our great industry requires that we connect with purpose.

The 2023 IBA Annual Conference, held on June 22-24 in Chicago, will be a powerful opportunity to reconnect with bankers throughout Illinois and many great bankers from Ohio. Premier speakers and activities will give you tools and training to serve your community better and protect your bank. Please consider inviting staff who would benefit from these powerful connections and education so we can continue developing long-term bankers.

One meaningful way you can serve your community is through financial literacy education. This April, celebrate Financial Literacy month. Please take advantage of the IBA's financial literacy resources, such as the Stock Market Game and Banzai, so we can engage and inspire young people to understand the power of finance and banking. Bankers must be the bridge to the next generation of banking leaders, and these connections must start now. Look for announcements of financial literacy activities offered by the IBA and other industry partners throughout April. And be sure to keep our scholarships in mind when you know of a high school or college student interested in pursuing a career in banking!

Bridging bankers, both now and in the future, guarantee that every community has access to a strong bank and that every family can pursue their dreams because they work with a superb banker.

Randy Hultgren

IBA President & CEO

Betsy Johnson President & CEO Solutions Bank, Forreston

QUESTION

We have a question regarding the lookback period for multiple re-presentment non-sufficient funds (NSF) fees referenced in the FDIC’s Supervisory Guidance on Multiple Re-Presentment NSF Fees. We updated our disclosures to include new language on multiple re-presentments and sent a notice to our customers in August 2022. We subsequently updated our fee schedule to include the fee per re-presentment. Should we use the updated disclosure date or updated fee schedule date to determine our lookback period, and how far should our lookback go?

ANSWER

We do not believe that the lookback period for providing restitution for multiple re-presentment NSF fees is tied to updated disclosures or fee schedules. The FDIC’s guidance on re-presentment NSF fees addresses the lookback period for restitution and states in a footnote that “institutions with challenges readily accessing accurate ACH data that self-correct this issue and provide restitution to harmed customers, as appropriate, for transactions occurring two years before the date of this Financial Institution Letter will generally be considered as having made full corrective action.” If your institution cannot readily access ACH data on re-presentments, you may use a two-year lookback period, measured from the date of the FDIC’s Financial Institution Letter (August 18, 2022).

QUESTION

Also, if your institution can access data on re-presentments that is reasonably available, we recommend considering a longer lookback period. The FDIC states that it “will consider an institution’s record keeping practices and any challenges an institution may have with retrieving, reviewing, and analyzing re-presentment data, on a case-bycase basis” and “[f]ailing to provide restitution for harmed customers when data on re-presentments is reasonably available will not be considered full corrective action.”

Does Illinois law prohibit a loan originator from notarizing a mortgage securing a loan they originated? Our external auditor recommended that we have someone who is not involved in the loan transaction notarize the mortgage. Is this a legal requirement or simply a best practice?

ANSWER

We believe that your external auditor’s suggestion is based on recent revisions to the Illinois Notary Public Act that have not yet taken effect.

In 2021, the Illinois General Assembly passed a bill amending the Illinois Notary Public Act. The bill takes effect when the Illinois Secretary of State adopts implementing regulations, which it has proposed but not yet adopted. This major rewrite

of the law included a new provision that prohibits notaries public from explaining, certifying, or verifying the contents of any documents they are notarizing. When this bill goes into effect, we do not believe that a mortgage may be notarized by a loan originator — who may be in the position of explaining the contents of the mortgage documents with the mortgagor.

QUESTION

Could it be considered discriminatory to refuse accounts for nonresident aliens because they do not have a social security number (SSN) or individual tax identification number (ITIN)? Are you aware of any sample forms or guidance related to conducting enhanced due diligence on nonresident aliens?

ANSWER

Opening accounts for nonresident aliens is a business decision dependent on the amount of risk that your institution is willing to accept.

FinCEN’s Customer Identification Program (CIP) requirements for non-U.S. persons include the collection of (among other things) either a customer’s “taxpayer identification number; passport number and country of issuance; alien identification card number; or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard.” Consequently, a bank may open an account for a non-U.S. person without an SSN or ITIN, provided that the bank collects one of the other listed items.

While we are not aware of any federal or Illinois law that expressly prohibits a policy of refusing to open accounts based on the nonresident alien status of a person, some courts or regulators still could consider such a policy to constitute unlawful discrimination. In the context of lending, state and federal law prohibit discrimination on the basis of national origin. The official commentary to Regulation B notes that denying credit based on a person’s citizenship status “is not per se discrimination based on national origin,” but that simply means that denying credit based on citizenship is not automatically discriminatory. On the other hand, Regulation B does expressly permit a lender to consider a borrower’s “status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment.”

About the IBA Law Department

We recommend documenting your legitimate business reasons for refusing to open accounts for nonresident aliens, such as excessive BSA/AML risk and the risks of obtaining repayment on loans made to non-U.S. citizens living outside of the country. The FFIEC’s BSA/AML manual acknowledges the heightened risks of nonresident aliens (NRAs), stating that “banks may find it more difficult to verify and authenticate an NRA accountholder’s identification, source of funds, and source of wealth, which may result in BSA/AML risks,” and “[t]he NRA’s home country may also heighten the account risk, depending on the secrecy laws of that country.”

Regarding due diligence, the FFIEC’s BSA/AML manual contains a section providing guidance on conducting enhanced due diligence for non-U.S. persons, available here: https://bsaaml. ffiec.gov/manual/assessingComplianceWithBSARegulatoryRequirements/11.

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.

MORE THAN $175,000 IN SCHOLARSHIPS AVAILABLE ANNUALLY

The Illinois Bankers Association is pleased to offer scholarship opportunities to its member bankers through the Herbert V. Prochnow Educational Foundation, a supporting organization to the Graduate School of Banking at the University of Wisconsin –Madison. 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.

Scholarships are distributed through the IBA for the Graduate School of Banking and the GSB Human Resource Management School.

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.

SPONSORED BY:

by Shane Ferrell

Exploring Bankers’ Priorities and Perspectives for 2023

To find out how bankers will confront challenges associated with a changing technology landscape, digital acceleration, cybersecurity, regulatory changes, and more, CSI surveyed banking executives from across the nation about their strategies and priorities for 2023.

The results of this annual survey are outlined in an interactive executive report and reflect both familiar challenges and emerging opportunities while also revealing the strategies that community institutions will deploy to stay competitive. In this article, we explore the top industry issues selected by bankers.

What Did Bankers Identify as Top Issues?

The CSI survey explored the challenges facing bankers this year, asking respondents to identify which one issue will have the greatest influence on the industry in 2023. Bankers generally agreed on the industry’s biggest concerns in the coming year:

• Retaining and Recruiting Employees: More than one-third (34%) of bankers described this as their biggest issue this year, rising from 21% going into 2022. Organizations across industries are feeling the ongoing effects of the Great Resignation, and banking appears to be no exception.

However, the outflow of workers from the service and tech industries, paired with growing interest from young applicants, creates an opening to attract customeroriented and tech-savvy talent. To attract this influx of fintech talent on the market,

improving the employee experience, upping their compensation package game and even offering remote or hybrid work.

• Regulatory Change: With 27% of bankers selecting this as their top issue, regulatory change remains of constant significance to financial institutions. While there is a host of regulatory issues to consider, several of which are outlined in the executive report, bankers are most concerned about overdraft fees and potential UDAAP violations (74%), followed by cybersecurity compliance (68%).

In addition to existing rules and regulations, the Current Expected Credit Losses (CECL) methodology goes into effect for the final group of financial institutions this year. Additionally, everyone is anxiously awaiting the final rule on Section 1071 of the Dodd-Frank Act and the Financial Crimes Enforcement Network’s (FinCEN) beneficial owner database.

Retaining & Recruiting Regulatory Change APIs/Open Banking

• Customer relationship management (CRM): While only 34% of respondents chose CRM as a technology priority, banks shouldn’t overlook how an effective CRM empowers them to meet customer needs. As institutions expand their digital presence, it’s imperative for them to maintain their sense of community and customer familiarity. An integrated CRM provides the means to build and maintain a strong connection with individual customers who previously relied on face-to-face interaction. Further, a truly integrated CRM does the same thing for the increasing universe of digital-first customers.

Revealing the Greatest Cybersecurity Concerns

As a prime component of our country’s critical infrastructure, financial institutions are targets of cyberattacks perpetrated by criminal and statesponsored hacking organizations. Because of this, cybersecurity concerns continue to loom large for bankers. Bankers selected P2P or other digital fraud (29%) and data breaches (23%) as the top threats for 2023. As the risk of P2P or other digital fraud

grows, fraud detection systems built with artificial intelligence (AI) represent a significant opportunity for banks. Using fraud systems with AI allows banks to identify incidents of fraud in real time and expedite investigation.

While the financial services industry has made great strides in shoring up security measures to combat cyber criminals, security-minded consumers who follow best practices help mitigate risk and strengthen protection. Cybersecurity training is another strategy to prioritize, as banks benefit significantly from an informed customer base.

Shane Ferrell is vice president of Product Strategy at CSI.

Want the Full Results of the 2023 Banking Priorities Survey?

As your bank navigates the changing technology landscape, explore the results of the 2023 Banking Priorities Survey at csi.foleon.com/bp-2023doc/bp23 for insight on the latest strategies and trends relating to modern banking, cybersecurity, compliance, and more.

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Illinois Bank M&A Rebounds to Pre-COVID Levels in '22

By Rica Dela Cruz and Syed Muhammad Ghaznav, Market Intelligence

Bank M&A activity in the state of Illinois returned to pre-pandemic levels in 2022.

There were 20 whole-company bank and thrift deals in the state last year, up from 16 in 2021 and eight in 2020, according to an S&P Global Market Intelligence analysis. Deal volume in the state matched the mark it saw in 2019.

167 whole-company bank and thrift deals took place in the U.S. in 2022, 72 of which were in the Midwest.

Bank M&A activity since 2019

Illinois-based deals in 2022

Although deal count increased in 2022, Illinois saw significantly more assets and deposits sold in 2021. The 20 Illinois bank deals in 2022 resulted in $4.86 billion in assets sold and $4.14 billion in deposits sold, while the 16 deals in 2021 resulted in $28.31 billion in sold assets and $22.79 billion in sold deposits.

The assets median of the Illinois-based bank targets in the 20 deals announced in the state was $109.4 million. Among those targets, Oak Brook-based Inland Bancorp Inc.'s total assets were the highest at $1.23 billion.

Inland will be sold to Chicago-based Byline Bancorp Inc. for $165.0 million in a cash-and-stock transaction expected to close in the second quarter. The deal provides Byline with "a replenishment to the bucket

of low-cost, core deposits" and will allow it to "doubledown in the stronger economic parts of Chicago," Hovde Group analyst Ben Gerlinger said in a December 2022 research note.

Only two transactions in this analysis had their values disclosed: the Byline-Inland deal and Bloomingtonbased HBT Financial Inc.'s pending acquisition of Springfield-based Town and Country Financial Corp., valued at $101.4 million.

The first Illinois bank deal announced in 2022 was Marion-based Midwest Community Bancshares Inc.'s acquisition of Bank of Carbondale, which closed over the past summer. The last deal announced during the year was Decatur-based Land of Lincoln CU's pending all-cash purchase of substantially all the assets and liabilities of Colchester State Bank.

Announced bank deals in Illinois in 2022

Sorted by deal announcement date

Rising Interest Rates Complicate Banks’ Investment Portfolios

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

Rising interest rates have prompted both challenges and opportunities for banks over the past year. Bank supervisors are, understandably, urging bankers to pay close attention to a myriad of ways changing interest rates can affect earnings and capital, or what’s termed interest rate risk. While rising interest rates give banks opportunities to increase earnings by pushing up rates charged on loans, they also could increase the cost of liabilities and decrease the value of investment securities held as assets. Even unrealized losses—paper losses—in investment portfolios can have negative effects on liquidity and present funding challenges, earnings pressures and, in some cases, issues with capital.

Interest Rates and Bond Prices

The inverse relationship between bond prices and interest rates means the sharp increases in interest rates this year have lowered the value of fixed-rate bonds held as investments, including those of banks. Many banks increased their holdings of bonds during the pandemic, when deposits were plentiful but loan demand and yields were weak. For many banks, these unrealized losses will stay on paper. But others may face actual losses if they have to sell securities for liquidity or other reasons.

Other possible consequences of significant unrealized losses include reductions in or restrictions on borrowing capacity and declining market valuations of the affected institutions, which could have a negative impact on banks looking to engage in merger and acquisition activities.

Just prior to the pandemic, roughly 20% of bank assets consisted of investment securities— primarily mortgage-backed securities and U.S. Treasury securities. By the end of 2021, security holdings had increased to 25% of assets, with most of the growth occurring in U.S. Treasury securities. Many of those purchases were for securities with longer maturities, which drop in value more than short-term securities when interest rates rise.

Effects on Capital and Liquidity

Losses on investment securities—realized or not—can affect a bank’s capital position. In general, banks must classify their securities into two buckets: held for maturity (HTM) and available for sale (AFS).1 The difference between the amortized cost of AFS securities and their current fair value is recorded in a category called accumulated other comprehensive income (AOCI), which is subtracted from equity capital on a bank’s balance sheet. While AOCI is excluded in measures of regulatory capital for community banks, it does affect what’s known as tangible common equity (TCE).2

TCE is declining industrywide because of the negative effect of rising rates on the market value of bank holdings of AFS securities. The number of banks with ratios of TCE to average tangible assets of less than 5% jumped markedly in 2022, with some banks posting negative TCE. Banks in this position largely got there because of an aggressive earnings strategy based on longer-term securities holdings when interest rates were low.

Banks with very low or negative TCE may face funding challenges. Federal Home Loan Banks (FHLBs), for example, are not permitted to extend new loans (called advances) to banks with negative TCE, and existing FHLB loans may not be renewed beyond 30 days unless waivers are obtained by borrowers’ primary regulators.3 That could be problematic for banks facing a runoff in deposits or other liquidity concerns; in a worse-case scenario, a bank might have to sell “underwater” bonds to raise cash, thus realizing losses and reducing regulatory capital.

The Supervisory Perspective

Large unrealized losses in the investment portfolio increase a bank’s risk profile, but the extent varies by bank. Supervisors are less likely to be concerned if the duration4 or maturity of a bank’s assets (loans and investments) and liabilities (deposits and other borrowings) are roughly the same. Concern would be further reduced if assets were funded by stable, non-maturity deposits, such as checking and savings accounts.

To reduce risks to liquidity, capital and earnings from unrealized losses, banks can take several steps, including diversifying contingent funding sources, especially if reliant on FHLB advances. The Federal Reserve’s discount window is one option. Increasing the ratio of HTM to AFS securities through new purchases or reclassification may ameliorate declining or low TCE at some institutions, although reclassification does not eliminate the risks associated with owning fixedincome securities in a rising rate environment.

In general, a bank should carefully analyze its existing capital and liquidity planning for possible adjustments based on current positions as well as the likelihood of further stress. 8

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

Notes:

1. Some banks (mostly very large banks) hold securities in trading accounts, and those securities are classified separately. Changes in the fair market value of these holdings flow through the income statement and are counted as current income or expense.

2. Tangible common equity is calculated as equity capital less goodwill, other intangibles and disallowed mortgage servicing rights.

3. The change in the valuation of an asset or liability that may occur given a discrete change in interest rates.

... 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

STEVEN GONZALO, President & CEO American Commercial Bank & Trust, Ottawa

The Ever-Changing Insurance Market

We all know now that business costs are increasing, and insurance isn't excluded. All lines of insurance coverage specific to financial institutions - Property and Casualty, Directors & Officers Liability, Financial Institution Bonds, Cyber Liability, and more - are creeping up to a point where it is always a good time to look at how your bank can lower costs and keep premiums from getting out of control.

The insurance agent's role has evolved in recent years beyond simply brokering transactions to serving as a trusted advisor capable of shaping expectations and educating clients as they navigate the insurance landscape. In a tough year and challenging market, agents and brokers must double down on their commitment to doing everything they can to work smarter, find creative solutions, and anticipate client needs.

• Has your current agent sat down with you and devised a plan to help navigate the changing landscape?

• Have you been prepared for any upcoming changes in the marketplace?

• Have you been offered alternatives to your current program?

If not, sit down with your current agent or contact Adam Walsh of the Illinois Bankers Insurance Services to evaluate your program. We are happy to help! We will look after your best interests!

BRIDGING Annual Convention

June 21-24, 2023

Fairmont Chicago Millennium Park CHICAGO

EXECUTIVE & DIRECTORS WORKSHOP

Tales From the VaultPlaces We’ve Been and Never Want to Visit Again Kimberly Schaefer, Partner, Vorys, Sater, Seymour and Pease LLP

Survive or Thrive? Framework for Building EPS and Shareholder Value in a Fast-Paced World Brian Battle, Principal & Managing Director, Performance Trust

REGULATOR PERSPECTIVES

DEANNA SINGH DEI Strategist Purposeful Hustle

DEREK THOMPSON Marketing + Economist Writer, The Atlantic

JACK ULDRICH Author + Futurist Global Trends

Michael J. Hsu, Acting Comptroller of the Currency (OCC)

MATT BREI Blanchard Consulting Group

MIKE

Greensfelder Attorney Scott Cruz Appointed to Serve on Illinois Labor Advisory Board Illinois Gov.

J.B. Pritzker has appointed Greensfelder, Hemker & Gale Officer Scott Cruz to the state’s Labor Advisory Board, which advises on labor policy and the Illinois Department of Labor’s enforcement of laws and statutes. Cruz is a labor and employment attorney representing both public and private sector employers and will bring key perspectives from employers to the board.

Cruz is one of seven new members whose appointment to the Labor Advisory Board the governor announced on January 30, 2023, pending Illinois Senate confirmation.

Cruz received a Bachelor of Arts from Marquette University and his law degree from the University of Illinois. He is active in numerous chambers of commerce throughout the state, helping to provide education to their members on changes in the law that affect employers of all sizes. He also is active in trade organizations statewide including the Illinois Manufacturers’ Association and the Illinois Bankers Association, where he shares his knowledge of updates in labor and employment law regularly with other members.

Joe Gastaldi Joins Newcleus

Retirement Advisors as Managing Director, Retirement Plans

An accredited fiduciary with over 36 years in the financial services industry, Joe Gastaldi, AIF®,

C(k)P®, CBFA®, has joined the Newcleus Retirement Advisors team as Managing Director, Retirement Plans.

For the past 15 years, Gastaldi has advised and implemented cost-effective retirement planning services, most recently as a senior advisor with Cafaro Greenleaf and OneDigital. Gastaldi earned a Bachelor of Business Administration in economics from Pace University and holds Series 66 securities and various insurance licenses. An Accredited Investment Fiduciary (AIF®) and Certified 401(k) Professional (C(k) P®), Gastaldi studied under noted behavioral economist Shlomo Benartzi to receive his certification as a Behavioral Finance Analyst.

A recreational cyclist and traveler, Gastaldi embraced virtual activities during the pandemic and bikes around the world on a smart bike. He also leveraged online networks and remote contacts to maintain his volunteer work in ministry that involves marriage guidance, prison, and health visitations. From his home in South Bend, Indiana, Gastaldi loves summers at the Great Lakes and winter trips to Florida. He and his wife just celebrated their 30th wedding anniversary.

Olsen Palmer Advisors Hold Top Rankings

Olsen Palmer is pleased to report that their professionals were once again the leading bank M&A advisors in 2022, according to data from S&P Global. Managing Partner Christopher Olsen was the #1 ranked individual bank M&A advisor nationwide – for the 4th straight year – while each of the top 3-ranked advisors and 4 of the top 15 advisors were Olsen Palmer professionals.

Additionally, Olsen Palmer was one of the top-ranked bank M&A advisors across the U.S. in 2022 based on the number of wholebank M&A transactions upon which they advised while, among those transactions in which the seller had total assets of $1 billion or less, Olsen Palmer was the #1 sell-side bank M&A advisor nationwide in 2022.

SomerCor Names New Leadership to Board of Directors

SomerCor, a non-profit, Certified Development Company (CDC) licensed by the Small Business Administration (SBA) under the SBA 504 loan program, is proud to announce the appointment of Margy Sweeney, Founder & CEO of Akrete, as the new Chairman of its Board of Directors. Thomas Huffman, Executive Vice President - Wintrust SBA Lending, will serve as Vice Chairman.

Margy Sweeney (Chairman) is the Founder & CEO of Akrete, a WBE national public relations, content, and marketing agency with expertise in both real estate and financial services, including ranking as the nation's #5 real estate public relations firm. Margy has over 25 years of experience in using creative storytelling to promote business growth and has served on the SomerCor board since 2016.

Thomas Huffman (Vice Chairman) is the EVP of Wintrust SBA Lending and has over 35 years of experience in commercial and SBA lending and he has served on the SomerCor board since 2018. Wintrust Community Banks was named the number one SBA lender in Illinois in 2022.

Jon Winick (Chairman Emeritus) is the CEO of Clark Street Capital, a full-service bank advisory firm specializing in loan sales, loan due diligence and valuation, and specialty asset management. Jon has over 20 years of banking experience and has served on SomerCor's Board for 15 years.

Other Board Members include Dean Avdalas (SVP, Commercial Lending - Byline Bank), Jeffrey Bronswick (CEOBronswick Benjamin P.C.), James Bruno (VP, Area Manager - JPMorgan Chase), Brian Burke (SVP, Commercial Banking – Old National Bank), Erica King (President - Greenwood Archer Capital), Santiago Martinez (Regional President - Belmont Bank & Trust), Michael Martino (Head of Chicago Emerging Middle Market Banking - Fifth Third Bank), Michael Plumb (Principal - Lee & Associates of Illinois, LLC), William Towns (National Market President for Community RevitalizationGorman & Company), Julie Winterbauer (SVP, Marketing and Member Relations - Illinois Bankers Association) and Simon Yohanan (SVP, Managing Director of Middle Market Banking - First Bank Chicago).

United Bankers’ Bank Welcomes ICI Consulting as Endorsed Partner for Core Processing Contract Negotiation

United Bankers Bank (UBB), the nation’s first bankers’ bank, is pleased to announce the selection of ICI Consulting as an Endorsed Partner for Core Processing Contract Negotiation. Headquartered in St. Petersburg, FL, ICI is a financial institution

consulting firm that provides core and ancillary systems evaluation services.

ICI has negotiated contracts and evaluated solutions with every major U.S. core processing vendor. ICI delivers the analysis required to assist financial institutions in making streamlined, solid vendor selections while obtaining the software required at fair market prices with favorable contract terms.

Liberty Bank for Savings Kicks off its 125th Anniversary Celebration with Donation to All Saints Cathedral Polish National Catholic Church, Honors Shared Past

In honor of its upcoming 125th anniversary, Liberty Bank for Savings made a $1,250 donation to All Saints Cathedral Polish National Catholic Church in Chicago.

Liberty Bank for Savings and All Saints Cathedral Parish share a deep connection: The church played an integral part in forming what became Liberty Bank for Savings and its mission of Neighbors Helping Neighbors.

In March 1898, Parish of All Saints Polish National Catholic Church members formed “The Loan Association of the Members of All Saints Parish of Chicago, Illinois,” a Building and Loan Association which would later become Liberty Bank for Savings. Its purpose was to provide mortgages to its members, helping them to establish roots in the city and build a stable future for their families and the neighborhood.

“Today, 125 years later, we continue to embrace the founding principles of the Loan Association of the Members of All Saints Parish,” says William J. Smigiel, Liberty Bank for Saving’s Chairman & CEO. “Liberty Bank for Savings has helped countless local families and businesses build strong futures, and we’ll continue to do so.”

Like Liberty Bank for Savings, All Saints Cathedral Parish also is guided by its early principles of helping neighbors—locally and globally—through its service projects. They include easing hunger, tackling domestic violence, and assisting children outside the United States affected by poverty, war, natural disasters, and famine.

“The donation to All Saints Cathedral Parish acknowledges Liberty Bank for Saving’s ties to the church and provides a tangible way to support its ongoing community service projects. Without the foresight of All Saints’ founders, Liberty Bank for Savings wouldn’t be here today,” adds Smigiel.

Timothy Smigiel, Liberty Bank for Savings; William J. Smigiel, Liberty Bank for Savings; Bishop Jerry Rafalko, All Saints Cathedral Polish National Catholic Church; Gary Kurinski; Reverend David Rowinski, All Saints Cathedral Polish National Catholic Church; James Smigiel, Liberty Bank for Savings.

WELCOME

NEW ASSOCIATE MEMBERS

(as of 2-28)

DocFox

141 Annapolis Dr Vernon Hills, IL 60061-2057

docfox.io

Angi Milano

angi@docfox.io

DocFox is a cloud-based SaaS application that automates opening any commercial account across any channel, no matter how complex. Streamlined commercial account opening empowers banks to provide their most valuable clients – business and commercial customers – a best-in-class account opening experience. Relationship-driven account opening: Even as banking becomes more digital, personal relationships remain the bedrock of commercial banking. With DocFox, banks can offer digital options without sacrificing human experiences. Relationship managers are empowered to quarterback the entire account opening process, enabling them to provide white glove service to new clients. With reduced expenses and increased efficiency instead of wasting time chasing and reviewing documents, bankers can refocus on highvalue tasks like relationship building. Slashing review time allows bankers to quickly onboard clients, including high-risk and complex accounts. First impressions count. Make them great. You only get to make a first impression once. A frictionless account opening experience cements loyalty with new clients, retains them longer, and converts them to promoters of your bank.

ICI Consulting Inc.

739 Pinta Dr St Petersburg, FL 33715-2012

ici-consulting.com

Thom Gresak

thom.gresak@ici-consulting.com

Since 1994, ICI Consulting has been a leading bank advisor nationwide. ICI is a consulting firm that supports financial institutions by providing core processing assessments, contract negotiation, gap analyses, vendor evaluations, and conversion services. ICI Consulting is well known for saving clients time and money during core processing & ancillary systems evaluations and negotiations with the providers of these business-critical solutions.

Raymond James

1100 Ridgeway Loop Rd

Memphis, TN 38120

www.raymondjames.com

Will Justice

Will.Justice@RaymondJames.com

When Bob James founded Raymond James, he did so based on a belief that clients deserved more than help with investment decisions, they needed advice that considered their entire financial picture.

Today, that client-focused approach has extended to serve client accounts through approximately 8,700 financial advisors in the United States, Canada and overseas. Further, the company has expanded through the years to serve corporations, institutions and municipalities through significant capital markets, banking, and asset management services.

Reich & Tang Deposit Solutions

1411 Broadway Fl 28 New York, NY 10018-3450

www.reichandtang.com

Halysue Frade hfrade@rnt.com

Reich & Tang Deposit Networks, LLC (“R&T”) and Total Financial Solutions, LLC (d/b/a Total Bank Solutions) (“TBS”) successfully completed a planned business combination on June 1st, 2022. Headquartered in New York City, and now doing business as RNTS, the combined firm has over $200 billion in assets under administration (AUA) and now offers a wider range of innovative tech-enabled services to help banks and wealth managers meet their unique cash sweep, deposit funding, and securities-based lending needs. Since 1974 and 2004, respectively, R&T and TBS have been helping many of the largest global financial institutions to achieve their business objectives. By delivering consistent results on behalf of their clients, both firms have achieved sustained business growth and have earned market-leading reputations for exceptional client service, collaborative engagement, and flexibility.

Titan Armored

107 Schuler Dr Bardstown, KY 40004-3201 www.titanarmored.us/1/ Kendall Tungate, kendall.tungate@qsibanking.com

Titan specializes in armored car cash replenishment to ATMs, ITMs, TCRs, and branch cash delivery services. We take the added step to ensure that our skilled employees are cross-trained to fully understand the equipment because our mission is to provide service and security.

Visa

900 Metro Center Blvd Foster City, CA 94404-2172 www.usa.visa.com

Michael Scharenbroch mscharen@visa.com

Visa is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable, and secure payments network, enabling individuals, businesses, and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement.

ADVERTISING INDEX

Michael Steelman

Long-time CEO and Director of Farmers and Merchants State Bank of Bushnell and Prairieland Bancorp, Inc., Michael Steelman, has announced his retirement.

Mike began his career at the bank in 1984, serving as Trust Officer and Legal Counsel, and joined the Board of Directors in 1990. He became President and later CEO in 1996 and was named Chairman of the Board in 2001. After over 20 years in that role, he semi-retired in 2022 and continued to serve as Senior Counsel and Chair Emeritus. With his official retirement in 2023, Mike will remain on the Board of Farmers and Merchants State Bank of Bushnell and Prairieland Bancorp, Inc.

Mike’s nearly 40 years in banking have been defined by his exemplary commitment to the betterment of the banking industry. Always staying abreast of financial industry trends and up to date on compliance, news, and regulations, he has been active in various banking organizations, committees, and advisory boards, consulting and lobbying on behalf of small community banks. He served as Director of the Federal Home Loan Bank of Chicago from 2011 to 2022, including Chairman from 2018-2019, as Chair of the Illinois Bankers Association from 2008-2009, and was appointed to the American Bankers Association Membership Council. He was named 2013 Illinois Banker of the Year by the Illinois Bankers Association, the highest honor the IBA can bestow upon its members.

Having served in the US Navy from 1968 to 1972, Mike graduated from Western Illinois University, earned his Juris Doctorate from Northern Illinois University College of Law, and is a 1994 graduate of the University of Wisconsin-Madison Graduate School of Banking. Also active in the local business community, Mike has served on several boards and committees.

Mike and his wife, Laura, are lifelong Bushnell residents and have one daughter, Lainie, who resides in Alton, and one wellloved, well-known (almost famous) Goldendoodle, Shakespeare.

Bloomington, MN UNITED BANKERS’ BANK

Dwight Larsen, President and CEO of United Bankers’ Bank (UBB), is pleased to announce the appointment of Traci Kaske as Senior Human Resources Consultant to the USource Human Resources Consulting Services Team. Traci joins UBB with over 30 years of experience in the community banking industry, 20 of which is specifically in human resources. She holds a Bachelor of Science degree from Minnesota State University –Mankato. She is certified as a Senior Professional in Human Resources (SPHR) and by the Society for Human Resource Management as a Senior Certified Professional (SHRM-SCP). Traci also has been a peer advisor with the Minnesota Bankers Association Training and Compensation Committee and sat on the board of directors for the Human Resources Professionals of Minnesota, which has since merged with the Twin Cities Society for Human Resource Management (TCHRM).

Effingham DIETERICH BANK

Dieterich Bank Announces CEO Retirement, Successor Dieterich Bank’s Board of Directors announced that Chuck Deters, its Chief Executive Officer, plans to retire after fifteen years with the bank. The Board said that the Bank’s current Chief Financial Officer, Jason D. Semple, will succeed Deters as Chief Executive Officer effective May 1, 2023. He also will be a holding company and Bank Board of Directors member. Deters has agreed to stay active for a transition period through the year’s second quarter.

Deters joined the bank in 2008 as Vice President of Business Development after a 20-year career in senior management positions at Consolidated Communications. In 2011, he was named President of the Bank’s holding company, Prime Banc Corp, and appointed a Director of both. He was named CEO of the Bank and the holding company in 2014.

Semple joined Dieterich Bank in 2014 as Chief Financial Officer after serving for 5 years in various treasury and financial analyst and operations positions at a multibillion asset midwestern bank. He began his career with the accounting firm of Crowe Horwath LLP as a Senior Associate, CPA. He graduated cum laude with a Bachelor of Science degree from the University of Illinois at UrbanaChampaign and is a registered Certified Public Accountant in Illinois. Active in many community and industry affairs, Semple was a former Effingham Regional Growth Alliance Board Member and currently serves as an Effingham Park District Board Member.

Dieterich Bank, a unit of Prime Banc Corp., has approximately $1.2 billion in assets with 13 locations in South Central Illinois and the Metro East region and a loan production office in South County, St. Louis. For the past four years, the Bank has been recognized as a Best Place to Work in Illinois.

Highland Park

FIRST BANK OF HIGHLAND PARK, A DIVISION OF FIRST BANK CHICAGO First Bank Chicago proudly announces the promotion of Brien Leahy to President of Community Banking. His new role includes overseeing business

Jones Kaske

Wagner Weatherly

segments designed to meet the needs of individuals and small businesses in the communities where they have branches. With over 30 years of banking expertise, Brien is responsible for the overall strategy, products, and branch operations while leading a diverse team focused on consumer banking & lending, private banking and business banking. He joined the bank in 2018.

Springfield SECURITY BANK

Security Bank welcomes Darren Jones as Executive Vice President, Chief Lending Officer. Darren has worked in the banking industry for over 23 years, with 21 years in commercial lending. Darren is an alumnus of Illinois State University. He started his career at a community bank in the commercial lending department as a loan associate moving through different positions, eventually in the role of Vice President of Lending and, most recently, as Market President. Darren has been active with The Greater Springfield Chamber of Commerce; he was a former ambassador for over seven years and graduated from the Leadership Springfield program in 2011. Darren is a Graduate School of Banking alumnus, receiving his certificate in 2015.

Woodstock

AMERICAN COMMUNITY BANK & TRUST

American Community Bank & Trust proudly welcomes Jen Wagner as Senior Vice President, Commercial Banking. With twenty years in the banking profession, Jen builds commercial relationships with expertise in manufacturing, construction, medical, and professional service

industries. She approaches clients with urgency and dedication, specializing in value-added lending and treasury management solutions for mid-sized businesses As a native of McHenry County, Jen is committed to building strong ties with local businesses. She supports talent and job training through organizations she volunteers at including the Manufacturing Pathways Consortium. Jen resides in Elgin, IL, with her husband and three children.

American Community Bank & Trust is pleased to announce the addition of Jeff Armstrong as Senior Vice President Commercial Banking. Jeff brings thirty years of commercial banking expertise to the Chicago commercial lending team.

Using a consultative and common-sense approach, Jeff builds and manages strong client relationships with a specialty in middle-market commercial banking. He assists businesses and entrepreneurs with all aspects of their banking needs with the goal of providing creative lending solutions and unparalleled service. In addition to the commitment to his client base, Jeff is serving in his second year on the Komen Leadership Council, Chicago’s local board supporting the Susan G. Komen Breast Cancer Foundation. Jeff resides in Libertyville, IL with his wife and three children.

Brimfield F&M BANK

Randy Weatherly, Vice President, Brimfield Market, announced his retirement effective March 3, 2023. Randy has been responsible for the overall operation of the Brimfield office, including commercial, ag, mortgage, and consumer lending, as well as assuming responsibility for consumer lending for the Peoria office since 2018. Randy began his banking career in 1982 as a Loan Correspondent for a major life insurance company and joined F&M Bank in September of 2018 as Vice President of the Brimfield location. Randy and his wife look forward to spending more time with their children and grandchildren in retirement.

WELCOME IN MEMORY

Gordon D. Honegger

Gordon D. Honegger, 82, of Morton, IL, passed away peacefully on Saturday, February 18, 2023, at the OSF Richard L. Owens Hospice House in Peoria, IL, after a brief illness.

He was born on December 13, 1940, in Forrest, IL. to Samuel and Leah (Rieger) Honegger. On June 27, 1964, he married Jean Ann Martin in Forrest, IL. On September 26, 1971, he was baptized, along with Jean Ann, in Carbondale, IL.

He is survived by his wife of 58 years, Jean Ann; son, Andy (Cindy) Honegger of Morton; and daughter, Dr. Molly Honegger (Dr. Steve Hesseltine) of Oakland, CA; grandchildren: Sarah Honegger, Katie Honegger, Sophia Hesseltine and Sienna Hesseltine; one

brother, Sam (Judy) Honegger of Albuquerque, NM; one sister-inlaw, Kathy Honegger, of Fairbury, IL; and one brother-in-law, Roger Jones of Hilton Head, SC.

He was preceded in death by his parents; his brothers: Lyle Honegger and Jerry Honegger; sisters-in-law: Nancy Honegger and Sherry Martin. While in hospice, Gordon told his family that he had a "terrific life" and was "at peace."

Gordon did indeed have a terrific life. He was raised on an Illinois farm learning the value of hard work. Gordon had two loving parents. He grew up in a family of four brothers, Gordon being the third, immersed in a family business environment. Gordon was passionate about learning, earning his finance degree at his beloved University of Illinois, his MBA at Northwestern University and his Ph. D at Purdue University. He traveled the world extensively

with Jean Ann and his family. Gordon treasured and supported his Morton community. He loved his work and was successful at it, yet remained modest. Gordon positively impacted the lives of many people. And most of all, he had a long, wonderful marriage and loving family, who knew him as "Grampy" and with whom he could spend much quality time in both business and leisure.

Gordon's name is synonymous with Morton Community Bank. He and Jean Ann, partners in life and business, lead the bank on an amazing journey that will continue. Gordon was truly blessed and thankful to be able to do the work he loved, with people he loved, every day. He also was blessed to be able to be active up until his illness, working at the bank until a few weeks prior to his passing.

Alan Scott Reasoner, 57, passed away peacefully on December 15th with his wife Angela and son Jackson by his side. Alan is survived by his wife Angela, son Jackson, daughters Madeline Reasoner and Lauren Shropshire (Greyson), granddaughters Beckham and Charley Shropshire, sister Nancy Grant (Jim), mother Barbara Reasoner, mother-in-law Brenda Stried, brother and sister-inlaw Jason and Andrea Gillette, nephews Miles and Aidan Grant, Cole, Eli and Leo Gillette, along with many friends and colleagues. Preceded in death by father Robert Reasoner and brothers Eric and Troy Reasoner.

A graduate of Indiana University with a double major in Economics and Business, his first job out of school was as a bank examiner for the FDIC in Statesboro, Georgia, which was the start of a long and illustrious career in the banking industry which included a short stint in Kiev, Russia, among other stops. Most recently, he served as President and CEO of First Bank and Trust Company of Illinois, where he has worked since 2001.

Alan was an accomplished Cornet player and athlete in the younger days, played in numerous bands, and used his 6’6” frame to much acclaim on the basketball court. Alan, a devoted White Sox fan, enjoyed many games with his family and friends.

He was a proud and loving dad to Maddie, Lauren, and Jackson, their guiding light and teacher of many easy or hard lessons. Alan was the beloved husband of 18+ years to Angie, her rock through all the ups and downs of life, including a fight against breast cancer and all the other laughs and tears that marriage brings. Alan was the loving older brother, tormentor, and partner in crime to Eric, Troy, and Nancy. As the doting son of Barbara and Robert Reasoner, their firstborn was both the receiver of all the great blessings of that mantle and the bearer of all the burdens that come with the job. Alan, a fierce friend, and brilliant colleague, will be sorely missed by all who had the pleasure of knowing and loving him.

Alan Scott Reasoner

IBA staff met with Dan Marcotte, FDIC Regional Ombudsman, to provide timely feedback on numerous issues from our membership. We thank Dan for his continued work with all Illinois banks and the banking associations.

The IBA family came together for a chili cookoff in honor of National Chili Day on February 23! Rachel Selvaggio brought the heat and dethroned reigning champ, Randy Hultgren! Congrats, Rachel, on your flavorful victory!

The IBA family had the pleasure of coming together to provide dinner, dessert, and treat bags for the amazing kids and volunteers at the Compass for Kids program in late February. A big shout-out to Girl Scout Troop 6391 for generously donating 40 boxes of cookies for the kids to take home and enjoy!

IBA Chair Betsy Johnson stopped by Central Bank Illinois to give a special “aloha” to 2022 Trip McRaffle winner Denise Ward. Denise supported Illinois Bankers PAC through its Trip McRaffle campaign and won a $2,500 travel voucher for anywhere in the world.*

IBA’s Chair Betsy Johnson and President and CEO Randy Hultgren kicked off the year by meeting with member banks throughout Illinois.

John DuBois, President and CEO, and Denise Ward, HR Officer, Central Bank Geneseo, with Betsy and Randy

Brad Ray, President and CEO, Security Savings Bank, Monmouth, with Betsy and Randy

Randy, Betsy and Alex Hardin, President, Community National Bank in Monmouth

FNBO Awards $830,000 in Impact Grants

First National Bank of Omaha (FNBO) has awarded a total of $830,000 in Impact Grants to 46 organizations in Nebraska, Iowa, Colorado, Illinois, Kansas, Wyoming, and Texas, announced Spencer Danner, Vice President, Corporate Social Responsibility. The grants support programs dedicated to education and workforce development.

Grants for education and workforce development will enable FNBO’s community partners to provide basic adult education, employment case management, financial literacy, and workforce and vocational skill-building opportunities to approximately 6,100 individuals.

FNBO awarded $90,000 in Impact Grants to five organizations in Illinois. Grants supporting education and workforce development programs include:

• $20,000 – Family Service Agency of Dekalb (DeKalb): supports the Community Action Program, which strives to help low-income families achieve and maintain their highest level of self-sufficiency.

• $25,000 – Home of the Sparrow (McHenry): supports the Supported Employment Program, which assists homeless and housing insecure adults with increasing employable skills, improving job readiness, and obtaining and retaining employment.

• $10,000 – Literacy Volunteers of Fox Valley (St. Charles): supports programming to help adults read, write, speak, and understand English by matching them with trained volunteer tutors one-to-one.

• $10,000 – The Literacy Connection (Elgin): supports programming to close the gap in basic skill deficiencies to help low-literate unemployed or underemployed adults participate in job training to move to more fulfilling employment.

• $25,000 – The Neighbor Project (Aurora): supports the Aurora Financial Empowerment Center, which provides free one-on-one professional financial counseling to low and moderate-income households in the community.

Bradford National Bank to Award Academic Scholarships

Bradford National Bank has announced that it will be expanding its scholarship program to include Centralia, Christ our Rock Lutheran, and Nashville High Schools. The bank will award two $1,000 academic scholarships at each school in the Spring of 2023. The scholarship application can be found online at www.BradfordBank.com/Students

Bradford National Bank began its scholarship program in 1999 and expanded it in 2018. To date, Bradford National Bank has awarded $88,000 in academic scholarships.

This year, the bank will award a total of 14 academic scholarships at Centralia, Christ Our Rock Lutheran, Greenville, Highland, Mulberry Grove, Nashville, and Triad high schools. Completed scholarship applications should be submitted to the student’s respective guidance office by April 21, 2023.

Liberty Bank for Savings Presented with BBB Torch Award

Wins Better Business Bureau Top Award for Business Ethics

Liberty Bank for Savings, a community bank serving Chicagoland since 1898, has been awarded the 2022 Torch Award for Ethics, by the Better Business Bureau (BBB) of Chicago and Northern Illinois. This award is only given up to ten businesses each year from a field of over a hundred fully completed and vetted entries. The Torch Award spotlights companies that exemplify marketplace trust and excellence.

Liberty Bank for Savings also is proud to have been granted a five-star rating from bank-rating agency BauerFinancial for more than 34 consecutive years. BauerFinancial’s highest rating of five stars is awarded only to the strongest, safest banks.

FNBO Opens 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, they have 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 their new loan production office in the heart of downtown Aurora, FNBO is poised to expand their reach to more individuals and families, helping them achieve their dream of homeownership.

Itasca Bank & Trust Co. Celebrates 75 Years as a Community Bank

In a time when community banks are a dwindling breed, Itasca Bank & Trust Co. is proud to be celebrating its 75th Anniversary! As a locally owned and operated community bank with a rich heritage, unwavering commitment to quality service, and an excellent reputation, Itasca Bank & Trust Co. continues to serve the communities of Itasca, Roselle, and the surrounding communities in DuPage County.

In recognition of this milestone, the Bank will spend its anniversary year focused on a comprehensive initiative to combat food insecurity in our neighboring communities. Their efforts will be highlighted by year-long employee volunteer initiatives, food and personal product drives, and Bank donations for account openings, as well as marketing and special events to highlight the need to help our Pantry Partners. The Bank’s Pantry Partners are the Itasca Cares Food Pantry, Roselle UMC Food Pantry, Bensenville-Wood Dale Food Pantry, Elmhurst-Yorkfield Food Pantry, and the Wood Dale Food Pantry.

Another opportunity to support food insecurity involves collaboration with an area non-for-profit, to provide locally grown organic produce to its Pantry Partners. Increasing food prices have made

it difficult for food pantry recipients to obtain produce, organic or otherwise, consistently. Itasca Bank and Trust Co. celebrates having a longtime relationship with The Conservation Foundation, a registered 501(c)3 non-profit company headquartered on the McDonald Farm in Naperville. The Conservation Foundation’s Green Earth Harvest program is a certified organic farming operation which provides local, nutritious vegetables to the community through the sale of “shares.” A “share” is a portion of the farm’s total harvest during the growing season.

For the 2023 harvest season, 20 weeks covering from June to October, Itasca Bank & Trust Co. intends to supply this critical nutrition to its Pantry Partners for those in need. The Bank has committed significant resources to this program and seeks donations to further support this effort. One share of the Green Earth Harvest costs $1,000. Each share provides approximately eleven units of produce per week for 20 weeks (which equates to 1,600 pounds of organic produce) at less than half of what you would pay for similar organic produce from a grocery store. Each unit equates to a “bunch” of carrots, two pounds of potatoes and a head of lettuce, with a wide variety of offerings throughout the 20-week season. Each donation of $1,000 can make a difference in the lives of those who struggle to keep healthy, nutritious food on their table during these difficult economic times.

Midland States Bank Launches Community Impact Investment Statement

Midland States Bank is pleased to announce the formal launch event of its Community Impact Investment Statement (CIIS). This initiative provides a collaborative framework for Midland’s Corporate and Regional Community Economic Development Plans that serve its Illinois and St. Louis regions. The key areas for each plan include: lending; investments; philanthropy; products, services and program development; community engagement; and diversity, equity, and inclusion.

Midland’s CIIS investment and loan metrics are to be executed in consideration of 6 key pillars: traditional & non-traditional education; workforce development; financial empowerment; housing; small business development; and health & wellness.

Midland’s proactive multi-year goal is $57 million in investments and $260 million in community economic development loans. The formal launch occurred in St. Louis on January 31, 2023. Additional events will continue in Northwestern and

April is Financial Literacy Month

On February 14th, students from Wadsworth Elementary School and Esmond Elementary School from Chicago had the opportunity to meet virtually with Congressman Jonathan Jackson (IL-01) as part of the SIFMA Foundation's Stock Market Game Capitol Hill Challenge, presented by the Charles Schwab Foundation.

The students are learning about the global capital markets and the importance of long-term saving and investing while developing integral workplace skills such as collaboration, critical thinking, improving their personal financial behanvior, and standardized test scores in math and economics.. The Capitol Hill Challenge allows Members of Congress to connect with schools in their districts and inspire and serve as role models. Students in Illinois are eligible to participate in the Stock Market Game at no cost due to the sponsorship of the Illinois Bankers Association.

Northeastern Illinois regions through 2023 and will be led by Midland’s respective Regional Community Economic Development Relationship Managers.

New in-school bank opens in Clinton First National Bank and Trust Company, along with the Clinton Community School District and Clinton Community Education Foundation, are excited to announce the student-run Maroons Branch at Clinton Elementary opened on Wednesday, January 18.The student bank is designed to introduce the economic concept of saving money early and reinforce this idea throughout the elementary, middle, and high school curriculum. In addition, the bank demonstrates that saving money should be part of a student’s future financial plan and increases parental involvement in children’s lives through banking activity.

This is the first in-school branch for First National Bank and Trust Company and 51 students participated in saving on the inaugural banking day. All 2nd through 5th-grade students will have an opportunity to bank every Wednesday morning. Twelve 5th graders serving as 'student bankers' will rotate weekly. Both bank employees and education foundation members will volunteer to assist with the student-run branch.

This student-branch structure and financial literacy curriculum are made possible by First National Bank and Trust Company's mission to reinvest 10 percent of its pre-tax income back into the community. The goal of the program is to provide students, K-12, with the knowledge to make sound financial decisions. Additionally, the program collaborates with school districts to promote financial literacy.

Pictured are classrooms from Wadsworth Elementary School and Esmond Elementary School from Chicago, representatives from the SIFMA Foundation, representatives from the Illinois Bankers Association, and Congressman Jonathan Jackson.

ABA Foundation Launches 2023 Financial Education Campaigns, Three-Year Initiative to Reach 5 Million Americans

The theme for this year's campaigns is 'Protecting Your Financial Future'

The American Bankers Association Foundation launched its 2023 financial education campaigns, calling on America’s banks and their more than two million employees to participate in these important industry programs and help more consumers achieve long-term financial stability. It also announced a three-year industry-wide commitment to reaching five million Americans with financial education courses through its campaigns.

The ABA Foundation offers four national initiatives designed to equip banker volunteers with the tools necessary to share essential financial knowledge in their local communities. In 2022, more than 700 banks participated in one or more Foundation programs. This year, the Foundation will roll out new program resources and guidance centered around its theme of protecting your financial future. The 2023 programs aim to help consumers access pathways toward financial success by empowering youth to invest in their future, promoting awareness about scams targeting people of all ages and helping older Americans plan for financial caregiving. All of the Foundation programs are completely free to both ABA member and non-member banks. Those programs are: Teach Children to Save, Get Smart About Credit, Safe Banking for Seniors and Lights, Camera, Save! video contest.

Teach Children to Save

The ABA Foundation’s signature initiative, Teach Children to Save, now in its 26th year, is a national campaign that encourages bankers to educate local K-8 students about money and real-world financial concepts through classroom presentations, virtual lessons, social media engagement and other outreach efforts. The ABA Foundation continues to bolster its program materials with versatile resources that can be leveraged for a range of learning environments.

While Teach Children to Save Day is celebrated on April 27, bankers are encouraged to promote financial education throughout the year.

Get Smart About Credit

Get Smart About Credit is a national program that helps bankers equip teens and young adults with personal finance knowledge and encourages the exploration of careers in banking. This year, the ABA Foundation will roll out new content on various scams targeting teens and young adults with tips on how to stay safe. Though the campaign is celebrated annually on the third Thursday of October, bankers are encouraged to give presentations and spread awareness throughout the year.

Safe Banking for Seniors

In addition to its youth financial education initiatives,the ABA Foundation also offers a collection of resources, including workshop materials, videos, social media content, guides and handouts, to support elders and financial caregivers as a part of its Safe Banking for Seniors program. Safe Banking for Seniors, led by banker volunteers nationwide, helps older customers, their families and caregivers understand and mitigate the risks of fraud and financial exploitation.

Curricula for Teach Children to Save, Get Smart About Credit and Safe Banking for Seniors are available in both English and Spanish.

Lights, Camera, Save!

Lights, Camera, Save! is a national video contest that encourages teens to create a video up to 30 seconds long that demonstrates the importance of using money wisely, with a particular focus this year on protecting one’s financial future. The contest kicks off in August with individual banks hosting local competitions and is open to teen filmmakers of all experience levels. The national grand prize winners will be announced in November and are eligible to win up to $5,000. The public will help narrow the field of competitors via Instagram in the first round of national judging.

Bankers can register for ABA Foundation programs for up to two years and receive turnkey resources, real-time customer support, and ready-to-use promotional and communication materials. Again, there is no cost for banks that register to participate in any of the Foundation programs.

Interested banks can register at aba.com/FinEd or call 1-800-BANKERS for more information.

Already Solving Your Next Challenge.

From regulatory requirements to working toward enhancing your financial institution’s performance, the challenges are growing even more demanding by the day. Fortunately, we understand what you’re up against. We can help you navigate the many complexities of your operation with confidence, as well as provide you with solutions that are backed by our own experience and resources. We know how to get you there, because we’ve already been there. Learn more at www.bokfinancial.com/institutions.

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The Importance of Financial Literacy and Adaptive Teaching

By Banzai

Financial literacy is an integral part of our lives from the moment we start working until the day we retire. The ability to understand personal finances and make smart money decisions is what guides people through choosing where to invest, what insurance to get, and how much of their paycheck to put into savings. Yet this knowledge is at a deficit in this country.

A recent study by the National Financial Educators Council found that a lack of financial literacy costs individual Americans, on average, $1,819 in 2022. Among all six age groups represented in this study and generalized to the rest of U.S. residents, the NFEC approximated that nearly $436 billion dollars were lost overall because people lacked a basic

understanding of how to manage their personal finances. So how can we change that?

The answer is simple: teach it. In school, students are taught to read, write, and do math—but not necessarily how to manage money or avoid debt. Although the integration of financial literacy curriculum in schools has increased throughout the years, with roughly 15 states mandating it, there are still many ways we can improve. The truth is, most schools don't address financial education topics enough—some hardly address it at all. And there's a reason for this: financial literacy isn't easy to teach, especially for those inexperienced in personal finance themselves.

Adaptive Teaching Strategies

Adaptive teaching strategies strive to personalize lessons and activities based on the skills and needs of individual students. The success of an individual should never be assumed based on how high they scored in any given area, rather how much they learned over the course of completing several different learning resources. Everyone has to start somewhere and adaptive learning accommodates that.

Financial literacy-based adaptive learning lets people experience the rollercoaster of emotions associated with money management—struggling through starting a business, earning money, saving money, losing money, and more—without truly losing anything. Sitting through lectures and reading textbooks can only do so much. In fact, people learn better when their minds and emotions are stimulated.

The nature of financial literacy makes it difficult to learn in one sitting. It's a lifelong process that requires real-life experience or a simulated one via adaptive learning tools that change in real-time. Tools such as these allow anyone on the internet access to financial education without having to go through an expensive degree program or pay for pricey certifications.

Adaptive Learning & Banzai

Adaptive learning platforms such as Banzai provide people with engaging content that changes based on needs and preferences—it’s an approach to education that focuses on the needs of the student and can be used in any type of community or school-based class.

Programs like Banzai give communities and schools resources to teach the importance of financial literacy with activities that vary in teaching styles. Online courses and games, physical workbooks and worksheets, expert presentations, and more allow every type of learner to find something that resonates with them. Not only that, but the courses adapt to the user’s personal life scenarios and change based on the path they choose to take while completing the course. As opposed to the courses’ more hands-on, direct approach to teaching, Banzai workbooks, articles, and printed materials give learners a more indirect and visual form of learning.

Takeaways

Financial literacy isn't just about numbers: it's about understanding how to use those numbers to create a positive future for yourself and your family. And adaptive learning enables students of all ages to focus on what suits them best. Skills like setting goals, budgeting, and saving help people live a better, more fulfilled life. And while many people have used adaptive learning tools, they are just now becoming more mainstream.

Financial knowledge enables people to make moneysmart decisions about everything from choosing a career field to buying a house or car. Ensuring that people receive the education needed to make smart financial choices is not just beneficial for individuals; it's also good for the greater community and even the economy. This is an age where information—in all forms—is readily available. Providing the best hands-on financial education to future generations is so vital when trying to create financially savvy people who will be a generation of doers and creators instead of sufferers from economic downturns. All of this goes beyond simply having access to digital textbooks; it's about creating a curriculum that responds to the needs of our students and communities. 8

O u r t e a m o f e x p e r t s w i l l a s s e s s y o u r f a c i l i t i e s ' e n e r g y

n e e d s , b u i l d a c u s t o m , c l i e n t - s p e c i f i c e l e c t r i c i t y o r

n a t u r a l g a s p r o c u r e m e n t s t r a t e g y , a n d t a k e t h e

b u r d e n o f e n e r g y m a n a g e m e n t o f f y o u r p l a t e .

P r o v i d e a r e a l - t i m e , a p p l e s - t o - a p p l e s c o m p a r i s o n o f s u p p l i e r p r i c i n g

N e g o t i a t e o n y o u r b e h a l f

M i n i m i z e b u d g e t a r y r i s k

P r o v i d e c u s t o m i z e d e n e r g y m a n a g e m e n t s o l u t i o n s

S e t & m e e t e n e r g y e f f i c i e n c y & s u s t a i n a b i l i t y g o a l s 667 330 1158 JPolend@appienergy.com

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