Illinois Banker | January - February 2019 by Illinois Bankers

The Official Publication of the Illinois Bankers Association

January-February 2019 ilbanker.com

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IBA’s Year in Review

ADDRESS SERVICE REQUESTED ILLINOIS BANKERS ASSOCIATION 524 S. SECOND ST., STE. 600 SPRINGFIELD IL 62701-1749

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ONE FIRM We have the industry and market experience to provide innova�ve solu�ons and guidance through every aspect of your financial ins�tu�on’s legal and regulatory challenges. From forma�on of banks, bank holding companies and other financial services en��es, through public and private equity and debt offerings; from SEC registra�on through merger and acquisi�on transac�ons; and from loan documenta�on to loan restructuring and workout, our team of a�orneys has the collec�ve experience and dis�nguished backgrounds to help you efficiently and effec�vely manage all of your ins�tu�on’s legal needs.

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Connecting Bankers. Advancing Banking.®

January-February 2019 • Vol. 104 / No. 1 • ilbanker.com

TABLE OF CONTENTS

2 Year 18 in Review

10 38 DEPARTMENTS 5 Message from the President and CEO 6 Compliance Corner 28 Preferred Vendors

29 Preferred Vendor: Verafin 30 IBA Boards and Committees 32 IBA Scholarships

33 On the Move 33 Ad Index 34 New Member Banks

FEATURES

10 2018 Year in Review 18 You Want to Grow? It's the Little Things That Matter!

34 New Associate Members 34 Associate Member News 35 Upcoming Events

20 The ONE: Building Your Game Plan

36 News & Notes

22 Ensuring Your Company Has Strong Leaders, Not Bosses

38 The Last Page

24 BankTalentHQ Celebrates Second Anniversary!

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• January-February 2019

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

Daniel P. Daly Chairman SENB Bank, Moline

Kevin L. Olson Chairman-Elect Grundy Bank, Morris

C. Brant Ahrens Vice Chairman CIBC, Chicago

BOARD OF DIRECTORS REGION 1 Clark Delanois The Northern Trust Company, Chicago

Stanley D. Jenks Security Savings Bank, Monmouth REGION 4

Christopher P. Barton The State Bank of Geneva

Martin J. Noll Community Bank of Oak Park River Forest

Joseph P. Dively First Mid Bank & Trust, Mattoon

Gary S. Collins Old Second National Bank, Aurora

REGION 2

Andy Hartman JPMorgan Chase Bank, Springfield

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

REGION 5

Jeffery L. Fauver Catlin Bank

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

Rich Knebel The Bradford National Bank, Greenville

REGION 3

Ronnie Shambaugh Best Hometown Bank, Collinsville

Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville Michelle L. Gross State Bank of Bement

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

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

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

Linda Koch Secretary IBA President and CEO,

Betsy Johnson Forreston State Bank Anthony G. Nestler Hickory Point Bank and Trust, Decatur Pamela Sharar-Stoppel Wheaton Bank and Trust Company

Rick M. Francois American Community Bank & Trust, Woodstock Tom Gihl Illinois National Bank, Springfield

Simon P. Yohanan First Bank & Trust, Evanston FLA CHAIRMAN (non-voting member) Rachael Maurer United Community Bank, Chatham

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

Two Offices to Serve You! Springfield Office: 800-783-2265 â&#x20AC;˘ Chicago Office: 800-878-2265 To connect with our staff, use this email format: firstinitiallastname@ilbanker.com Linda Koch, CAE, President & CEO

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

James H. Huiskamp Blackhawk Bank & Trust, Milan

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

Executive Administration

Dale L. Blachford Treasurer Liberty Bank, Alton

AT-LARGE CATEGORY

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

Communications/Marketing/ Associate Membership

Jim McNichols, Vice President, Insurance Services

Debbie Jemison, CAE, Vice President

Casey Widholm, Marketing Manager

Tammy Squires, Assistant Vice President Tessa White, Director, Advertising & Sponsorship

Illinois Bankers Education Services, Inc. Callan Stapleton, Vice President

Finance and Administration

Kevin Klug, Assistant Vice President

Mark Bennett, CPA, CFO and Vice President

Bob Anderson, Manager of Education and Training

Marcia Stratton, CPA, Director

Cassie Mattson, Manager, Event Management and FLA

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

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

Brian Hoffman, President

Editorial Offices 524 S. Second St., Ste. 600 Springfield, IL 62701-1705 217-789-9340 FAX 217-789-5410 www.ilbanker.com Debbie Jemison, Editor With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 524 S. Second St., Ste. 600, Springfield, IL 62701-1705. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. ÂŠ Copyright 2019 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGE

Happy New Year! As we welcome the New Year, please enjoy this special edition of the Illinois

Linda Koch

IBA President and CEO

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Banker and highlights of the many stand out events, programs and happenings that made 2018 so memorable! Time sure does fly by when we are having fun serving our members’ needs while networking with old friends and making new ones. Speaking of new friends, we welcomed nearly 40 new financial institutions and nearly 30 new associates last year to our family of valued members, creating even more valuable opportunities to network. We also continued our travels throughout the state visiting with hundreds of bankers and discussing issues that matter the most to you. Grooming the next group of industry leaders, while attracting new quality talent remained near the top of virtually every banker’s list! In response, the IBA continued to expand BankTalentHQ, the IBA’s nationwide talent management site. Along with 17 state banker association partners, in 2018, we reached prospects in more than 25 states and territories, helped facilitate searches for 9,000 job posters, and attracted over 6,000 job seekers from across the country. Also last year, our growing social media presence has helped generate more than 100,000 visits to the site, while drawing hundreds of listeners and readers to our new HQ podcast and Ask the Coach blog. We also laid groundwork for a new Future Leaders Scholarship Program to be launched this year for first-year college students seeking a financial related degree and for Illinois bankers who are furthering their expertise in their fields. Training bankers and future leaders will always be one of our highest objectives, and last year was no exception. We added more new opportunities, with our inaugural BankTech Conference and new marketing and small bank forums. You also may have noticed more webinar and online programs during the year, and rest assured you will see even more topical and timely educational opportunities in the future. Not unexpectedly, compliance issues still dominate the list of members’ challenges, and our legal team was there every step of the way. Over 1,000 Illinois bankers use the IBA’s exclusive online compliance resource, GoToIBA.com, which houses more than 220 topic pages and 3,000 Q&As, with dozens more questions being fielded every week. Once again, our relentless advocacy efforts in Springfield, Washington D.C., and in Chicago paid off. Obtaining meaningful regulatory relief for many member institutions and stopping countless proposals that would have been harmful to the industry are just two examples of dozens that illustrate our effectiveness. Speaking of effectiveness, to underscore our industry’s many contributions to their local communities and to the state’s overall economy, the IBA retained the Regional Economic Applications Laboratory of the University of Illinois to provide an assessment of the economic impact that Illinois’ banking industry has on the State of Illinois. We have only just begun promoting these details to the media, elected officials and other opinion leaders, so stay tuned for more details. Of course, we always are searching for ways to serve our members, and last year’s addition of the new Illinois Bankers Group Insurance Trust showcases our relentless focus on serving our members — by providing them with quality, affordable healthcare for their employees. Finally, we hope that you had a wonderful 2018 and that the IBA played even a small role in your success. We assure you that you play a major role in ours! As always, we thank our members, associates, partners and preferred vendors for your friendship and support! On behalf of all of us at the Illinois Bankers Association, we wish you a prosperous, healthy and happy New Year!

• January-February 2019

COMPLIANCE CORNER

The IBA Law Department

QUESTION Can we accept deposits of SSI checks payable to a representative payee into the personal account of the representative payee? ANSWER Generally, we do not believe that a representative payee should be allowed to commingle funds by depositing a beneficiary’s SSI checks into the representative payee’s personal account, unless an exception applies (for example, if the representative payee is the beneficiary’s spouse

who lives in the same household as the beneficiary). The Social Security Administration rules provide that a representative payee must keep any social security benefits “separate from his or her own funds and show [the beneficiary’s] ownership of these

benefits,” except in cases where the representative payee is the beneficiary’s “spouse or natural or adoptive parent or stepparent and lives in the same household with [the beneficiary] or is a State or local government agency for whom we have granted an exception to this requirement.”

QUESTION If we want to close for a half day on an annual basis, do we need to notify the IDFPR? For example, we would like to close at noon on New Year’s Eve. ANSWER Yes, your bank is required to comply with the procedures for branch closings under the Illinois Promissory Note and Bank Holiday Act for a special closure that is outside of your bank’s regular weekly closures. The Illinois Promissory Note and Bank Holiday Act permits banks to close on a specified list of holidays, 12:00 noon on Saturdays, and all day on Sundays. Although the first day of January is listed as a holiday, the last day of December is not.

Therefore, we believe your bank is required to comply with the Act’s procedures by sending a copy of a resolution adopted by the board of directors of your bank authorizing the bank to close at noon on December 31 to the Secretary of the IDFPR. Your bank also must post a notice of its intent to remain closed on the specified occasion in the lobby of your main banking office and any branches for at least three weeks in advance of the closing.

Additionally, we confirmed with a representative of the IDFPR that your bank will need to repeat these steps for each closure outside of normal business hours. Thus, if you wish to close at noon on December 31 annually, you must repeat this process for each year as needed (i.e., whenever New Year’s Eve does not fall on a Saturday or Sunday).

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!

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• January-February 2019

QUESTION What impact would Regulation O have on a bank officer mortgaging their land to secure a loan made to a customer who is a relative of the bank officer? ANSWER We do not believe Regulation O’s prohibition on loans to insiders is applicable to an officer mortgaging property to secure a loan for a relative unless the proceeds of the loan will be transferred to the officer or used for the officer’s economic benefit. Here, the extension of credit is not being made to the bank officer, and the officer is not co-signing or guaranteeing the loan. Consequently, we do not believe that the loan should be treated as an extension of credit to the bank officer. Additionally, the Regulation O definition of an “insider” does not include family members of an insider,

except in the case of a principal shareholder. Under the tangible economic benefit rule, a loan will be considered to be made to an insider, even if they are not obligated under the loan, if the proceeds of the loan are transferred to the insider or are used for the tangible economic benefit of the insider. In this case, there are no indications that the insider will receive any economic benefit from the transaction. Additionally, an exception to the tangible economic benefit rule applies when the loan proceeds are used in a bona fide transaction to acquire goods or

services from the insider, and the loan meets the general Regulation O requirements for extensions of credit to insiders. For example, an FRB Interpretive Letter found that while a bank director received a tangible economic benefit when the bank made a loan to his son and the son used the loan’s proceeds to repay his father for another loan, the loan qualified for this exception because the loan met the insider lending requirements for that bank, and therefore the transaction did not violate Regulation O.

QUESTION One of our elderly customers deposited a cashier’s check, which she believes was sent by someone who promised to marry her. We called the issuing bank before making the funds available from the deposit, and they confirmed that the cashier’s check was legitimate. About a month after the deposit, the customer requested a wire to send the funds, which we have not yet executed. We have frozen the customer’s account, which still contains the majority of the funds from the deposited cashier’s check, and reported the potential elder financial exploitation of our customer. Is there any chance that the deposited cashier’s check could be returned? ANSWER

First, we do not believe that the issuing bank could return the cashier’s check. The Illinois Supreme Court has held that a cashier’s check is the equivalent of cash. In Illinois, as a general rule, once the cashier’s check enters the stream of commerce, the issuer is liable under the UCC if it refuses to honor the cashier’s check when presented (there are

exceptions, one example being when the person presenting the cashier’s check is the same person who fraudulently ordered the issuance of the check). We should note that this issue is treated differently by some other states around the country. Also, we believe these facts may have the markers of either firststage elder financial exploitation

or an attempt to enlist your customer in unwittingly participating in a money laundering scheme. While your bank already has reported the potential elder exploitation, we recommend filing a suspicious activity report and reporting this incident to local law enforcement.

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.

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• January-February 2019

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AWARDS RISE TO THE TOP NOMINATIONS ACCEPTED NOW BANKER OF THE YEAR AWARD

COMMUNITY SERVICE AWARD

AWARDED Annual Conference June 23-25 | JW Marriott Austin Deadline: April 15

2018 RECIPIENT Jeffrey D. Snyder Forreston State Bank Forreston

2018 RECIPIENTS Fairfield National Bank Lisle Savings Bank Washington Savings Bank

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

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

Submit your nomination at ilbanker.com/Be-Recognized

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• January-February 2019

2 18

Year in Review

hat a year it was! Wow! Growing membership, exploding webinar choices, the assumption of the League’s Group Insurance Trust and the expansion of BankTalentHQ to 25 states are only a few of our many, many successes from the past year.

Connecting Bankers. Advancing Banking.® We’re proud that your financial institution has chosen the IBA as its Association and look forward to working with you and your team well into the future! We hope you’ll take a look at this Year in Review for a glimpse into how hard the IBA works for its members in our efforts to connect bankers, advance banking and elevate Illinois’ banking industry.

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

Banker of the Year, Jeffrey D. Snyder, Forreston State Bank

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• January-February 2019

IBA Past Chairman Dan Watts, Forest Park National Bank and Trust, pins the “Chairman’s Pin” on incoming Chairman Dan Daly, SENB Bank, during the IBA Annual Conference in Chicago.

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

211 123 18 Board and Committee Members

Banks and Companies Represented

IBA Board and Committees

Welcome to Our 38 New Member Banks As of 12-3-18 That makes 77 new member banks in just the last two years! Anchor State Bank Bank of Farmington Campus State Bank Central Federal Savings and Loan Citizens National Bank Community First Bank of the Heartland Community Partners Savings Bank Farmers & Merchants Bank of Hutsonville Farmers State Bank of Danforth Farmers State Bank of Western Illinois First American State Bank

First Bank of Manhattan First National Bank of Pana First Savanna Savings Bank First Savings Bank (Danville) Flora Savings Bank GN Bank Heritage Bank of Schaumburg Heritage State Bank Ipava State Bank Loomis Federal Savings and Loan MUFG Union Bank, N.A. Nashville Savings Nokomis Savings Bank North County Savings Bank Ottawa Savings Bank

Peoples Bank of Macon Peoples Bank SB, Munster, IN Pioneer State Bank South Porte Bank Streator Home Savings Bank The First National Bank, Mattoon The First National Bank of Allendale The First Trust and Savings Bank (Watseka) Union Federal Savings and Loan, Kewanee Wabash Savings Bank Washington State Bank Wheaton Bank & Trust Company

Welcome to Our 27 New Associate Members Associated Agencies, Inc. At Risk Tecknologies, Inc. Baker Hill BankMarketingCenter.com BITSIO Inc. Community Investment Corporation First Line First Re Management Company, Inc. Giffin, Winning, Cohen & Bodewes, P.C. • 11 •

Haberfeld Holland Partners, Inc. Howell Financial Services, Inc. Inlanta Mortgage, Inc. Kestner Insurance Manatt, Phelps & Phillips Michael Trokey & Company, P.C. Newgen Software Inc. Rentsys Recovery Services Ruff, Freud, Breems & Nelson, Ltd.

• January-February 2019

Schmale Insurance Agency, Inc. TEAM Risk Management Strategies Thompson Colburn, LLP Velocity Solutions VGM Forbin Vining Sparks Wool Capital Partners LLC Worldpay

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

Robert P. O’Meara, First Midwest Bank Willard Bunn, Colonnade Advisors William Gerard Huiskamp, Blackhawk Bank & Trust

Jeffrey D. Snyder, Forreston State Bank

Distinguished Bank Counsel/Lifetime Achievement

University of Wisconsin-Madison Graduate School of Banking Scholarships

Peter Gutzmer, Ret. General Counsel, FHLB Chicago

Illinois Bankers PAC Bank of the Year

Ashley Speed, Grundy Bank, Morris Ryan Riggins, MidAmerica National Bank, Macomb

Honorary Lifetime Membership

Graduate School of Banking Banker Advisory Board Scholarships

Murphy-Wall State Bank and Trust Company, Pinckneyville Micah R. Bartlett, Town and Country Financial Corporation, Springfield

Peoples Bank and Trust, Pana, Sarah Van Huss attending Holcomb Bank, Rochelle, Jeff Tilton attending

Illinois Bank Community Service Awards Fairfield National Bank Lisle Savings Bank Washington Savings Bank, Effingham

High Five to Our Top 10 All-Star Sponsors

Volunteer of the Year

Michelle A. Toll, The State Bank Group, Wonder Lake

Centennial Award

Busey Bank, Champaign – 150 Years Federated Bank, Onarga – 100 Years

50 Year Club

Martin J. Noll, Community Bank of Oak Park River Forest, Oak Park Carol Wolters, First National Bank of Steeleville Dennis Oster, The Huntington National Bank Gary Rhodes, Stillman Bancorp NA Maryann Bovio, Community Savings Bank, Chicago Matthew Favazza, Central Bank of St. Louis Patricia Barnhart, the First National Bank of Beardstown Richard Vicenzi, Anna State Bank

Bankers’ Bank BOK Financial Institutional Advisors Clifton Larson Allen LLP Federal Home Loan Bank Chicago LKCS Midwest Independent Bank Plante Moran RSM US LLP Verafin Wipfli LLP

Cultivate an Engaged, Informed and Updated Staff More than 3,700 attendees

You want the best training

for your staff to ensure your bank is performing, following the rules, providing the latest products and services in your community and more. IBA training provides the latest education programs for you in a number of formats.

took part in our in-person education events.

9 flagship conferences, including The ONE with

7 educational tracks,

the Annual Conference, and our new BankTech Conference that was held in October.

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• January-February 2019

Webinar usage in 2018

doubled from the previous year! More than 1,600 webinars were used by our member banks to efficiently and effectively train their teams.

2 Year 18 in Review Ensure the Future of Your Bank Your bank's future leaders need development oppor-

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

17 State Association Partners in 25 States and Territories

9,000+ 6,000+ 100,000+ jobs posted

registered job seekers visits to the website

Subscribe to our new BankTalentHQ Podcast! Congratulations to our 11th FLA Class, the Class of 2018, which held its graduation ceremony during The ONE Conference!

Increase Your Bottom Line IBA members enjoy buying power with our Preferred Vendors, Partners and Associate Members – 200 companies in all! Additionally, partner with an insurance agency that exclusively understands your bank’s needs. The IBA’s insurance agency serves only Illinois financial institutions, like yours, so we know banks. 13 Preferred Vendors to serve your bank’s needs– selected by bankers for bankers • ABA Insurance Services • ABG Retirement Plan Services • APPI • Ascensus • Banker’s Dashboard • BankMarketingCenter.com • Deluxe Financial Services • Floodplain Consultants • Investors Title • Keystate Captive Management • Office Depot • Secure Banking Solutions, LLC • Verafin Welcome to Our Newest Preferred Vendor

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• January-February 2019

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

NEW! Take a Look at the Illinois Bankers Group Insurance Trust With the recent transfer of sponsorship of the Illinois League’s long-time Group Health Insurance Trust to the Illinois Bankers Group Insurance Program Illinois Bankers Association, now is the perfect time to take a look at all the Trust has 2019 to offer! The Illinois Bankers Group Insurance Trust provides IBA members with a reliable source of competitively-priced, quality group insurance products. • Many coverage options • Lower overhead expenses • Plan flexibility • Individual attention • Quality and timely processing of claims • COBRA and HIPPA administration • Coverage for employees, directors and retirees

Information at Your Fingertips When you need industry information,

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

New at ilbanker.com!

and

Illinois Credit Unions – The Real Story Video Credit unions are indistinguishable from banks, yet they pay no income taxes. They no longer serve their original purpose. It is time for a new tax structure. A new video housed on the IBA’s You Tube channel tells the story. Be sure to check it out at https:// youtu.be/_zxYL4XUCpk

Economic Impact Study To underscore the commitment of banks doing business in Illinois, the IBA has retained REAL of the University of Illinois to provide an assessment of the economic impact that Illinois’ banking industry has on the State of Illinois. The first part of the report shows an estimate of the industry's contribution to the economy as a whole. The Eco

nomic

Impact

of Illinois

Banks

Banks of all sizes play a vital they safegu role ard of the econom customer deposi in supporting ts and make Illinois’ econom y, includi ng the vast y and commu loans, and majority Whether of househ they provide service nities. They create you choose olds and jobs, s to virtuall click of to visit a state and a button teller at local govern y every sector , banks your local of daily are at the ment agenci financial branch core of transa es. the latest our econom or conduct your bestseller. ctions for things financial y. They retirement, as simple Banks suppor help fuel business as buying our and, when with the t equipm your mornin nation by facilita you're ready you when you ent, banks buy your ting million g cup of to grow stand ready first home, coffee or s your small downloading to help. they help business The bankin you build by hiring g for more staff underscore industry's ripple or upgrad effect on the commi ing our state’s retained the Region tment of banks overall econom doing busine assessment al Econo y cannot mic Applica ss be oversta part of the of the econom tions Labora in Illinois, the ted. To Illinois Banke report, presen ic impact that tory of the whole. This Illinois rs Univer Associ ted here, ’ bankin sity of Illinois ation has is broken shows g industr salaries to provide y has to its employ down into contrib an estimate of an the industr on the State of utions from through ees and Illinois. y's contrib payments finally to purchases The ution to first of state contributions and sales, the econom income to state from payme and sales y as a and local taxes. government nts of wages and activity generated

Key Findings • The Illinois banking industry directly employs 105,000 employees and indirectly generates an additional 303,500 jobs totaling 408,500 jobs, with $22.6 billion in wages and salaries.

• The Illinois banking industry paid $7.6 billion in salaries, or an average salary of $61,469, to its 105,000 employees in 2017. • Each dollar a bank employee spends in his local community generates another $1.09, creating a total impact of $2.09 per dollar spent. • The Illinois banking industry’s estimated 2017 total contributions to state and local tax revenues — including direct and indirect dollars for sales, property tax and personal income taxes — total over $2.3 billion. Total federal, state and local, and foreign corporate income taxes paid by Illinois banks in 2017 amount to $1.8 billion.

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• January-February 2019

LinkedIn illinois-bankers-association 1,103 followers

Facebook facebook.com⁄illinoisbankers 774 followers

2 Year 18 in Review Click and Call for Your Compliance Needs Compliance Questions Compliance issues pose major challenges for bankers, and our IBA law department is here to help our members. In 2018 alone, we published answers to over 500 compliance questions on our IBA Compliance Connection website at GoToIBA.com.

Law Department Conferences SPRING LAW REVIEW

25 attendees

JUNE COMPLIANCE CONFERENCE

100 attendees

FALL COMPLIANCE CONFERENCE

60 attendees

BANK COUNSEL CONFERENCE

250+ attendees

Compliance Resources Over 1,000 bankers use GoToIBA. com from 247 member institutions, where they find over 200 topic pages and nearly 4,000 compliance Q&As, together with articles, resources, and much more.

OTHER ACCOMPLISHMENTS The IBA law department submitted two comment letters on major issues affecting all Illinois banks: (1) We provided detailed feedback to the OCC on how to best modernize the Community Reinvestment Act regulations, emphasizing the need to address the subjectivity of CRA examinations, create certainty when making charitable contributions, rein in application costs, reduce the amount of time and resources on documentation of activities, tailor requirements for small rural banks, and to modernize the thresholds. (2) We also provided thorough comments on the Illinois Treasurer’s proposed administrative rules implementing the new Illinois Revised Uniform Unclaimed Property Act, requesting clarifications on proposed rules regarding deposit box reporting, stored-value cards, examples of apparent owner interest, the deduction of a bank’s due diligence costs, and more. Also this year, the IBA law department oversaw the transfer of the sponsorship of the Illinois Bankers Group Insurance Trust from the Illinois League of Financial Institutions. And, as always, we provided support in negotiating and drafting numerous contracts for the IBA and its subsidiaries throughout the year.

Advocacy By the Numbers 379

Bankers brought together through IBA federal and state advocacy events

1,000

Over State legislative proposals monitored or lobbied by the IBA in 2018

67 Bills and ordinances defeated or successfully negotiated

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

400

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

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What a difference a year makes!

The crown jewel of our advocacy efforts in 2018 was working with bankers across the U.S. to pass bipartisan regulatory reform legislation through Congress. Following the President’s signature of regulatory reform, we have pushed the regulatory agencies to swiftly implement provisions of the new law, while also asking Congress for additional reforms. We encouraged bankers to help reshape the Community Reinvestment Act by providing comments to the OCC as banking regulators look to modernize this decades-old law. Meanwhile, our record of success was sustained in Springfield. We strengthened our ties to other financial trade associations, working with CBAI, ILFI and the credit unions to push legislation easing the unclaimed property reporting compliance burden. Together, our industry also defeated anti-banking legislation including a rash of bills unfairly favoring judgment debtors. We partnered with business groups to defeat bills harmful to Illinois’ economy, including a new tax on “investment

• January-February 2019

management services.” Additionally, we supported legislation modernizing regulatory requirements for state-chartered thrifts, and we passed a bill allowing Illinois banks to be reimbursed for their costs when complying with record requests from non-customers (for example, when handling subpoenas). We continued to represent the industry before the Chicago City Council. Notably, we defeated a Chicago ordinance requiring banks doing business with the City to track customers’ compliance with “safe gun sales” policies – nearly impossible for most banks. Finally, our advocacy program remained committed to developing a positive view of the banking industry. We promoted the IBA’s “economic impact” study, held our first-ever “Economic Investment Day” in Springfield, and created small business lending clinics in underserved areas of our state. The IBA was privileged to represent the banking industry at all levels of government this year. Our successes highlight the importance of a strong advocacy program, including a well-funded Illinois Bankers PAC and energetic grassroots involvement by our members.

Thank You for Your Support of Illinois Bankers PAC!

$323,741 raised through IBA member support 44% of member banks contributed $267,052 in contributions to federal, state, and local lawmakers who support our industry

86% contributed to 2018 candidates successful in their campaigns

307 Individual contributors 22 Rock Star Banks 25 Fair Share Banks ZERO% was spent on travel, meals, or staff expense 100% of funds contributed to political candidates that support our industry.

Rock Star Banks

American Community Bank & Trust Bank & Trust Company Delaware Place Bank Farmers & Mechanics Bank Farmers & Merchants State Bank of Bushnell First National Bank of Steelville First National Bank of Waterloo Forest Park National Bank & Trust Co. Forreston State Bank Grundy Bank Iroquois Farmers State Bank Liberty Bank LincolnWay Community Murphy-Wall State Bank & Trust Company Philo Exchange Bank Prospect Bank Security Savings Bank SENB Bank State Bank of Bement TheBANK of Edwardsville Midland States Bank Town and Country Bank

Fair Share Banks

Busey Bank Carrollton Bank Central Bank Illinois CIBC Community Bank of Oak Park River Forest Cornerstone National Bank & Trust Company

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Countryside Bank First Mid Bank & Trust Company First Secure Community Bank Holcomb State Bank Litchfield National Bank NorthSide Community Bank Peoples National Bank, N.A. Raritan State Bank Republic Bank of Chicago Security National Bank Sterling Bank Stillman BancCorp N.A. The Bradford National Bank The First Bank and Trust Company of Murphysboro The First National Bank of Beardstown The Leaders Bank The Northern Trust Company The State Bank of Geneva Washington Savings

Additional Bank Contributors

Amalgamated Bank of Chicago American Bank and Trust Company N.A, Associated Bank, NA Athens State Bank Bank of America Bank of Belleville Bank of Bluffs

• January-February 2019

Bank of Calhoun County Bank of Pontiac Bankers' Bank Beardstown Savings Best Hometown Bank BMO Harris Bank NA Bridgeview Bank Group Casey State Bank Central Bank of St. Louis Chesterfield State Bank Citizens Community Bank Community Bank Community Bank of Trenton Community State Bank Farmers State Bank of Hoffman Fifth Third Bank First Bank & Trust, IL First Bank of Highland Park First Bankers Trust Company, N.A. First Eagle Bank First Midwest Bank First National Bank & Trust Company First Neighbor Bank NA First Security Trust & Savings Bank First State Bank Fortress Bank Heartland Bank and Trust Company Hickory Point Bank & Trust Home State Bank Hometown National Bank Inland Bank and Trust Iroquois Federal Savings & Loan Association

Itasca Bank & Trust Company Jersey State Bank JPMorgan Chase Lisle Savings Bank Longview Bank MB Financial Bank, N.A. Merchants and Manufacturers Bank Midwest Independent Bank Morton Community Bank Municipal Trust & Savings Bank Old Second National Bank Peru Federal Savings Bank Providence Bank &Trust Quad City Bank and Trust Company Sauk Valley Bank & Trust Company Signature Bank Soy Capital Bank and Trust Company Tempo Bank The Fairfield National Bank The First National Bank of Litchfield The First National Bank of McHenry The First National Bank of Sandoval The Gerber State Bank The Huntington National Bank The Iuka State Bank The State Bank Group THE VILLAGE BANK TIB- The Independent Bankers Bank U.S. Bank N.A. Union Savings Bank United Bankers' Bank West Central Bank

Platinum Contributors

James Aldrich Theodore Aldrich Bruce Baker Micah Bartlett Christopher Barton Jeff Bowden Thomas Broeckling Julie Chamberlain Thomas Chamberlain Gary Collins Eric Davis Gerald Fitzgerald Jr.

Darrell Jackson Howard Jaffe Debbie Jemison Stanley Jenks Betsy Johnson Linda Koch Robert Koopman Nicholas Mellion Kevin Olson Kevin Powers Kevin Rogers Jim Roolf Charles Ruth Dennis Sager Andrew Salk Douglas Sanders Mark Shashek Kenneth Velo Charie Zanck

Gold Contributors Paul Abert William Alexander Diana Allen Joann Barton Darl Bollman James Bruns Thomas Bugielski George Callas Thomas Dunker Belinda Feezel Rick Francois William Gardner John Greenwood Andrew Hartlieb Gary Hemmer Brian Hoffman Robert Hoffmann J. Michael Holloway Daniel Hollowed John Hutchinson Ben Jackson Carol Kirkenmeier Dennis Lutz Thomas MacCarthy David Mehrmann Donald Metzger Robert Mueller Kevin Noonan George Obernagel Robert Parker Rick Parks Mathew Pfund Robert Plummer John Pritchard Robert Schwartz Carolyn Settani Bradlee Stamper Callan Stapleton Charles Unger Mitchell Weisz Aimee Winebaugh George Ziebold

2 Year 18 in Review Silver Contributors

George Alexenko Doretta Alms Joseph Ambrose Grady Ambuel Curt Anderson Michael Atwood Jeff Baker Robert Ballsrud Samuel Banks Bill Becker Mark Bennett Robert Biedron Jeffrey Boundy Stanley Bradshaw Christopher Breyman David Brozovich Peter Brummel Karen Cabrera Julie Clark Jane Coffey John Corley Patricia Cowell Trent Cox Kirsten Davis-Franklin Thomas Dawson Benjamin DeMond Brian Dennison Daniel Doering Van Dukeman Delores Eagleson Robin Elliott Terresa Elliott Samson Erza Carol Fritts Tim Fritzsche Steven Fuehne Steve Gerstenberger Charles Griffin James Hearns Keith Hearns Timothy Hecht Lisa Hock Thomas Hornstein Rhonda Houzenga Douglas Hultguist Karen Jacobus Amanda James Karen Jensen Jeff Johnson Alice Jost Stephen King David Kirschner Gregory Kistler Kevin Klug Kenneth Knop Andrew Krieger Kenneth Kruse Maurice Lewis Glen Lutz Gregory Lykins Pam Macha John McDole Dennis Meile Elizabeth Miller Stephen Mitze Denise Olds Courtney Olson William Parks Mathew Parson Shelley Perkins

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Steven Perry Annette Pickrel Ronald Pierson John Powers Jeffrey Rabenort Amy Randolph Frank Roth Terrence Ruettiger John Schaefer Edwin Scharlau Thomas Schlink Kent Schmitz Brad Schotanus Christine Schultz Mathew Sessa Michael Shane George Shapland Christopher Shroyer Tom Sloan Gerry Smith John Smith Mary- Kay Soehn HL Sorkin Ashley Speed Daniel Spickard Brett Staaland John Staudt Gregory Steil Daniel Stein Mark Stevens William Sturtevant Webber Thies Tom Thompson Klay Tieman Michelle Toll Raymon Trost James Tubbs David Tyrolt Janice Unger Steven Wannemacher Daniel Watts Mary-Ann Webb David Weber Scott Weistart Diana Whitson Michael Wickkiser Danielle Wisely JamesWright

Bronze Contributors William Abbott Hannah Absher Jenelle Adams Sheila Adams Jamie Adcock Jaclyn Aldridge Janet Allen Caitlin Anderson Jenn Anderson Jason Ashford Wipfli Auditors Thomas Baird Laura Balster Jennifer Beals Mitch Birky Dale Blachford Tom Blackwell William Blickhan Shannon Bond Becky Brown Randy Bruenger

• January-February 2019

Judy Buttry Peggy Campbell Ramiro Carrera Michael Carroll Amy Castillo DiAnn Chamberlain Susan Cole Caring Committee Cassie Connor Robert Corman Paula Cox Kelly Crawford Mary Curl Debra Curtis Dan Daly Joseph Daniel Sean Dardis Rick Darnell Marty Davis Susan Davis Mark Davitz Jerry Day Jeff DeBruin Thomas DeGroot James Dieterich James Terry Dooley Jennifer Doran Kelly Dransfeldt Thomas Dunker Dana Dunkin Mia Dzelil Beth Easterla Rich Eckert Tera Ehrman Brett Engelhardt Lauren Erwin Imogene Fiene Daniel Fleming Kathleen Francque Neena Frisch Edi Gallardo Kristen Garmon Donise Georgeff James Gilliam Steve Grat Patricia Grogg Bruce Guebert Stefany Gumm Jeff Harper Roger Harris Phillip Hayes Lori Hedden Chris Herzog Michael Herzog Ron Hobson JR Hock Duff Hoel Dan Hornfeck Brice Hutchcraft Andrea Janek Kendra Jayne Chad Johnson Richard Johnson Diane Katavich Kelly Kauzlaric Maureen Kelley Cody Kelly Janice Kepple Nathan Kessler Shelby King Laura Kinney Kim Klein

Mathew Kotzamanis Donald Krager Eric Kroeger Jack Kuebel Alyssa Kupferschmid Mathew Lauritzen Heather Lawhead Josie Lee Cheryl Lenth Toni Little Tami Lowry Paula Luebbert Janet Lund John Lyons Lana Malone Nicole Mann Heather Mariotti Amy Martin Anne Matalonis Randy Matravers John McEvoy Keith McFarland Holly McKinnon Jessica Mclnerney Janis Miller Erick Mueller Beverly Murphy Paul Murphy Martin Noll Rebecca Novak Alan Novy Judy Opel Michael O'Rourke Damian Papish Karen Perlman Debra Phipps Vicki Rank James Reed Bob Reid Richard Riggins Patty Robinson Marilyn Rossi Brenda Rupert Janice Rushing Joe Salesky Shellane Sauer Michael Schell Travis Schroll Sean Seibring Barbara Shovan Jared Siebert Sandra Smith SuAnne Smith Timothy Spitz Pam Staublin Rachel Steidinger Katie Stewart Denise Strange Marcia Stratton Robert Swartz John Tenenbaum Kathy Thompson William Tracy Dawn Triem Lauren Tronvig Angela Truluck Bruce Uchtman Thomas Underkofler Stelios Valavanis Margaret Vallandingham John Venarsky

Maggie Veronda Melissa Walter Linette Warnecke John Winklepleck Simon Wlodarski Rory Wright Mathew Wyatt Jenn Yurkovich Justin Zawaly

Associate Members

21st Century Financial Services Angott Search Group Ascensus Baker Hill BKD, LLP CliftonLarsonAllen LLP CRMNEXT Cummings, Ristau & Associates, P.C. Deluxe Financial Services Duncan-Williams, Inc. Equias Alliance FIPCO First Bankers' Banc Securities, Inc. FirsTech Inc. Investors Title Insurance Company Invictus Group LKCS NewGround Northland Securities onShore Security SBS CyberSecurity Velocity Solutions Virtual Innovation, Inc. Worldpay

In-Kind Contributors

American Community Bank Bank & Trust Company Best Hometown Bank Farmers & Merchants State Bank of Bushnell First Bankers' Banc Securities Inc First National Bank of Waterloo Flood plain Consultants Inc LincolnWay Commuity Midwest Independent Bank SENB Bank State Bank of Bement The Bricton Group TheBANK of Edwardsville Dan and Sherry Daly Tom and Suzanne Hough Linda Koch Aimee Winebaugh

You Want to Grow? It’s the little things that matter! By Achim Griesel, Haberfeld

any bankers believe: “We’re uniquely positioned to serve the affluent customer. Our service is second to none.” But remember, your prospects haven’t experienced your service. And, few community financial institutions can uniquely serve the affluent class better than regional and national banks. Real growth requires much more than the false perception that customers are privileged to bring their relationships to you. It takes many factors — like brand, product, policies, marketing, employees and execution. When you try to maintain growth of your

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• January-February 2019

customer base, focus is often mistakenly on only one factor. But each activity impacts expansion. Some are more important than others and real growth isn’t assured by any one of them. Real growth requires a coordinated system of activities — all connected to each other. I’ll illustrate this idea using the airline industry. All airlines have planes, pilots, flight attendants, and luggage handlers. All transport people and many fly the same routes. So why does Southwest Airlines have a much better reputation than other airlines?

Are Southwest planes better or are their people more professional? No. What Southwest has is a much better activity system. Michael Porter, in his Harvard Business Review article years ago, defined the activity set of Southwest Airlines. Little things competitors could not or wouldn’t copy were the difference. Its fleet uses only one type of plane, so maintenance is easier, faster, and cheaper. The airline’s unique boarding system allows flights to turn around quicker. All its activity points — reliable and frequent departures, low ticket prices, high aircraft utilization — make Southwest Airlines more profitable than its competitors. Let’s take this idea to community banking. Like airlines, financial institutions are all relatively the same. All have checking and savings accounts and all use banking systems recognizable from one FI to another. So how can your activity system give your financial institution an edge over competitors?

Key component — your people

Engage your staff, train them, and allow them to have fun. While working with several hundred community-based FIs, I’ve seen what a difference the right branch personnel can make.

• Without changes to marketing or product it’s

common to see dramatic customer growth after a branch leadership change. • Same-market branches, using identical marketing and products, grow at dramatically different rates. The people component of your activity system probably has the most subcomponents that crucially help or hurt your organization’s growth. Especially in branches, the right people are extremely important. But if staffs are not well trained, branches may not achieve their growth goals.

Be there when customers decide to switch

It’s almost impossible for financial institutions to create the customer need to buy their products. With basic requirements for food and clothing, the need is already there. Bankers can’t create similar needs. However, we can identify people who are likely to need new core relationships or those seeking a new primary financial institution (PFI). Banking customers become better prospects for your institution when they go through life-changing events — when they move, get married, or change jobs — but it’s difficult to be in front of them at the

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• January-February 2019

right time. You can purchase highly-targeted contact lists for these events, but once prospects are on a list it’s usually too late. An even larger prospect group consists of individuals who are dissatisfied with their current PFI. Yet how can you find those prospects who would consider your financial institution convenient? The simple answer: The right type of data. Begin by modeling your current customers as a starting point for your branch-convenience footprint. If the prospect group is too large, fine-tune by adding characteristics of current customers to the targeting model. Most current-customer attributes are more reliable than purchased demographics. Add more (big) data to enhance your best-prospect model. Suppose you could determine which of your branches is convenient for prospects by overlaying their cell phone usage and GPS data? With the prevalence of mobile devices, this has become a very predictive indicator and a great real-world example of big data applications. Lastly, don’t wait until after the prospect’s life event has happened. Limit your prospect audience by fine-tuning the model while you increase your contacts with these quality prospects. Then you’re likely in front of them PRIOR to a trigger event that prompts them to seek a new primary financial institution.

Product isn’t marketing’s silver bullet

For core customer acquisition we seek the single product that answers our growth goals. There isn’t one. While your product is important, it’s only a single component of your entire activity system. With product, you must consider characteristics like simplicity, customer advantages, ease of sale, profitability, and many others. Ignore any of these factors and growth becomes more difficult or even impossible. A good product may have a variety of different looks if it follows the activity system components outlined above. Bottom line — consider the little things that make growth happen. They are the important glue that holds your activity system together and makes it successful. About the author: Achim Griesel is president at Haberfeld Associates, a customer acquisition marketing and profitability consultant for community-based financial institutions. He can be reached at achim@haberfeld.com. IBA Associate Member

January-February 2019 •

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February 28-March 1 Embassy Suites East Peoria

Build ng Your Game Plan February 28-March 1, 2019 Embassy Suites • East Peoria

The ONE features eight educational tracks, 39 informative sessions, an engaging trade show and ample networking opportunities. Educational tracks include bank marketing, customer relations, financial management, human resources, leadership development, retail banking, risk management, and technology and operations. The event allows multiple employees to attend a single, conveniently located conference. Take advantage of The ONE and ensure ample Opportunity, Networking and Education.

The Trade Show

Build your game plan by engaging with 40 companies showcasing their products and services to help increase your bank’s efficiencies and bottom line. Don’t miss this valuable opportunity to network and support IBA preferred vendors and associate members. With dozens of Trade Show prizes up for grabs, you could be a big winner!

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• January-February 2019

The ONE Benefits…

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

Illinois Bankers PAC Brews

Thursday, February 28 6:30 p.m. – 8:30 p.m. Join your friends and colleagues at Kenny’s Westside Pub in downtown Peoria! Enjoy a variety of plentiful appetizers and an assortment of beverages with all proceeds benefiting Illinois Bankers PAC.

KEYNOTE PRESENTATIONS DEEPENING HUMAN CONNECTION IN AN INCREASINGLY DIGITAL WORLD Joe Sullivan, President and CEO, Market Insights, Inc. Futurists tell us that every single technological change is now impacting humanity in a much deeper way. And while nearly every human being, regardless of culture or demographic cohort, desires a sense of connectedness, we find ourselves in a tech-enabled, hyper-connected world that can often feel less personal. Organizations that effectively blend the personal and digital experience – both for consumers and employees – are those that enjoy the highest levels of satisfaction and loyalty. This thought-provoking presentation explains why building and fostering human connection is key to establishing trust and maintaining competitive advantage. Challenge your thinking about what it means to be a bank today and apply tangible actions to ensure that relevant, contextual and personalized engagement deepens human connection and demonstrates a commitment to improving the lives of customers.

executives, NFL Pro Bowl athletes, Olympians and championship teams. Gain practical insight to increase happiness, purpose and fulfilment in your professional and personal life. Kamphoff earned a doctorate in performance psychology and is an accomplished speaker, marathoner, professor and high performance coach helping individuals master their mindset. Among her clients are the Minnesota Vikings where she works individually with players to help train their minds. Her first book, Beyond Grit: Ten Powerful Practices to Gain the High Performance Edge, is an Amazon bestseller. Kamphoff is founder of the High Performance Mindset podcast available on iTunes, iHeartRadio and Stitcher Radio, and her work has appeared in The New York Times, ESPN the Magazine, The Huffington Post and USA Today.

O P P O R T U N I T Y • N E T WO R K I N G • E D U C AT I O N COMBATING UNCONSCIOUS BIAS WITH INCLUSION NUDGES Maureen A. Maffei, Attorney, Labor, Employment and Immigration Practice Group, Ice Miller LLP

Build ng Your Game Plan

TOP 10 PRACTICES OF THE MOST SUCCESSFUL HIGH PERFORMERS Cindra Kamphoff, Ph.D., Certified Mental Health Consultant, Speaker, Author

Preconference Session with Lunch Thursday, February 28 | 10:30 a.m. – 12:00 p.m.

The conference concludes with Dr. Cindra Kamphoff revealing the top ten practices that the world’s best can use to gain a high-performance edge. She will share strategies and tools she has taught

We all have unconscious bias – the social norms and stereotypes that impact our understanding, actions and decision making. These biases creep into our workplace and can cause us to make favorable decisions for some and career limiting decisions for others. A leader’s ability to mitigate unconscious bias and actively practice inclusiveness is a business imperative for today’s organizations. This session introduces unconscious bias and provides strategies to increase self-awareness as well as debiasing techniques. Additionally, the presentation outlines three actionable inclusion nudges that leaders can implement in their organizations to mitigate unconscious bias.

February 28-March 1, 2019 Embassy Suites • East Peoria

Ensuring Your Company Has Strong Leaders, Not Bosses By Tom Blackwell, Angott Search

re leaders born or made? It's an interesting question that produces a plethora of answers. But here's something that isn't up for debate: People are naturally attracted to leaders.

Leaders possess capabilities that can inspire others to become their best, something that business owners eagerly seek in the people they hire and the individuals they currently employ. When you recognize leadership qualities in your workforce, you can’t afford to let them get away. As a result, companies are always

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• January-February 2019

looking to identify leadership skills within potential hires to ensure they have a strong base of leaders that can drive the organization forward. These skills include the ability to motivate staff and drive innovation, while doing so with a sense of integrity, transparency and diplomacy. A great way to gain insight on whether someone is more of a boss or a leader is to do your homework during the hiring process. For example, if you’re interviewing an applicant for a management opening, asking them a few questions about how they led various projects or initiatives will tell you a lot about their leadership style. Additionally, calling one or two of the candidate’s references can give you an idea of whether the person was highly regarded for their leadership capabilities in their previous position. The length of their relationship can also provide insight. “When candidates portray admirable leadership qualities in the interview process, appointing them to supervisory roles can help motivate your other staff members to perform well or seek to become leaders in their own right,” said Mark Angott, President of Angott Search Group. For the most part, employees think rather highly of their managers. In fact, a 2016 poll conducted by CareerBuilder, found nearly two-thirds of respondents gave their bosses an “A” or “B.” However, in those instances where bosses received an average or failing grade, it frequently led to

employee losses. Almost 40 percent of respondents in the poll said they’d left at least one job due to the management style of their bosses. In short, as noted in a report by the Society for Human Resource Management, dissatisfied workers don’t leave their jobs - they leave their bosses. How do you ensure you have leaders who inspire instead of bosses who discourage? Here are a few suggestions:

1. Leaders avoid micromanaging and consider others their equals As discussed in The Muse, even though managers may be authority figures, they shouldn’t see themselves as “better than” the workers who are in their charge. The best managers view their relationship as more of a partnership, rather than a one-way street where the manager directs and workers perform. Additionally, leaders give their staff autonomy, adopting a more “hands-off” approach to management. In the 2016 CareerBuilder survey, respondents who gave their managers a high letter grade were more likely to work for leaders who they didn’t consider to be a micromanager.

2. Leaders take a genuine interest in their team members Employees have lives beyond the office, spending their time with family members, friends, projects at home or activities within their community. Leaders aim to get to know their team on an individual basis, forming a more personal relationship while at the same time learning about qualities that can contribute to the growth of the business, like expertise that isn’t currently being utilized, or traits such

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• January-February 2019

as patience or perseverance that would lend themselves well on a special project. Knowing someone as an individual fosters trust and encourages people to give it their all.

3. Leaders prioritize relationships and results Managers in leadership positions are responsible for ensuring work is completed effectively so growth never ceases. Overbearing bosses may still be able to achieve solid results, but it may produce diminishing returns if employees are at their wits’ end and ultimately decide to quit in search of greener pastures. Leaders recognize the value of relationships. They prioritize finding solutions to issues that may be troubling workers and ultimately impeding their work output. Leaders also put greater emphasis on results that are achieved through demanding, yet reasonable processes rather than processes that are tedious and unnecessarily taxing. “Whether it comes naturally or develops over time, leadership is an indispensable asset that can help your business reach its goals,” said Angott. “Fostering strong leadership and leveraging it to drive the organization forward can be the difference between a run-of-the-mill operation and a truly extraordinary one.”

About the author: Tom Blackwell is Director, Financial Services, for Angott Search Group. He may be reached at tblackwell@asgteam. com or 248-453-0103. IBA Associate Member

BankTalentHQ Celebrates Second Anniversary! Finding and keeping top talent

is high on the list of the many challenges Illinois banks face. With that in mind, the Illinois Bankers Association rolled out BankTalentHQ in January of 2017, and the platform has taken off. BankTalentHQ is the premier talent management resource exclusively for exploring and building financial industry careers and connecting financial industry companies with top talent. It is brought to

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â&#x20AC;˘ January-February 2019

you by the Illinois Bankers Association in partnership with 17 other state banking associations, found in 25 states and territories, with even more in the pipeline. The main focus for the website, located at banktalenthq.com, is the job board. This function allows you to post job openings for your institutions with the ability to purchase a single 30-day post or a discounted posting package to fill multiple vacancies. While entry level and experienced individuals are crucial talent to find, talent begins long before then.

BankTalentHQ also allows internships to be posted at a discounted rate. Ancillary services include industry news and articles, resume writing, a career learning center and sales and career coaching. While the site is currently bringing outstanding services to those who use it, there are exciting additions coming soon. To make BankTalentHQ even more robust and tailored for you institution, additional services like career pathing, job summaries, executive recruitment and outplacement are in development. Just like the variety of resources BankTalentHQ offers, the types of jobs posted each year bring a diverse flare to the site. These jobs have ranged from tellers and operations staff to CFOs, Chief Lenders, and even CEOs. With over 9,000 jobs posted, 6,000+ registered job seekers and over 100,000 visits to the website, BankTalentHQ continues to grow as more banks, like yours, participate and more states sign on. Try us out in 2019! We know you’ll like what you see. We are always interested in hearing about your unique experience with BankTalentHQ. Be sure to let us know of your hiring success stories, your comments and other feedback on how we can make the site better by emailing us at info@banktalenthq.com, www.banktalenthq.com

Subscribe to our bi-weekly podcast! • 25 •

• January-February 2019

Plus!

Career and Sales Coaching In addition to the job board, BankTalentHQ offers career and sales coaching with Donna Flynn and Joe Micallef. Be sure to check out their “Ask the Coach” blog to answer your burning questions on how you can be a better employee, manager or sales person.

Donna Flynn

Joe Micallef

Visit www.BankTalentHQ.com

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

Reach New HEIGHTS with the FLA Class of 2020 SESSION 1 February 2019 | Bloomington Leadership and Influence (2 Days)

SESSION 2 Spring 2019 | Springfield Legislation, Politics and Communicating with the Regulators (Day 1) Economic Investment Day (Day 2)

SESSION 3 Summer 2019 | Chicago Exclusive meeting with Federal Reserve Bank of Chicago and Federal Home Loan Bank of Chicago (Day 1) Lead for Success (Day 2) Space is limited. Register Today! ilbanker.com | 217-789-9340

SESSION 4

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Fall 2019

January 2020 | Springfield

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Monticello/Champaign

Accounting for Bankers,

The ONE Conference and

Team Building (Day 1)

Asset Liability Management,

Graduation

Accountable Leadership

Cybersecurity and

(Day 2)

Regulatory Hot Topics (Day 1) Simulation Banking (Day 2)

FLA GRADUATION REQUIREMENTS + Sessions 1-6 One Elective Course Select from a wide variety of IBA programs during your program year. Receive a 50% registration discount on your selected program. Financial Literacy Service Project Must complete two hours of financial literacy instruction at a local school, retirement home, community or non-profit group during the program year.

FLA SCHOLARSHIPS PEOPLES BANK & TRUST IN PANA “TOMORROW’S FUTURE, TODAY” One full scholarship ($1,495 value) Honoring Larry Beaty and his lifelong commitment to the banking industry FEDERAL HOME LOAN BANK OF CHICAGO Two partial scholarships ($1,000 each)

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

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

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Get a quote. Jim McNichols 312-952-1324 jmcnichols@ilbanker.com • 28 •

• January-February 2019

BANKER’S DASHBOARD Bob Reid 800-933-2211 ext. 159305 BANKMARKETINGCENTER.COM Keith Pagel 404-943-4632 DELUXE CORP. Bob Reid 800-933-2211 ext. 159305 FLOODPLAIN CONSULTANTS INC. Craig Callahan 317-858-4420 INVESTORS TITLE INSURANCE GROUP Mike Uhland 800-326-4842 KEYSTATE CAPTIVE MANAGEMENT Travis Holdman 260-227-0265 OFFICE DEPOT Isaac Mares 855-337-6811 ext. 12878 SBS CYBERSECURITY Dennis Sparrow 314-276-4610 VERAFIN Gary Dawson 866-781-8433

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

PREFERRED VENDOR

How Financial Institutions Can Help End Elder Financial Exploitation Four key indicators for fraud detection professionals investigating elder financial exploitation Elder financial exploitation (EFE) may be the crime of the 21st century. The available numbers paint a scary picture: one 2015 report indicated seniors are defrauded of nearly $36.5 Billion annually, over 12 times the amount previously reported. In August 2017, the North American Securities Administrators Association (NASAA) completed a survey of state securities regulators regarding elder financial exploitation: • 97% of the regulators felt most cases of senior financial fraud go undetected, • 29% have seen an increase in incidents, and • Nearly none of the respondents have seen a decrease in incidents. A lifetime of savings together with numerous age-related vulnerabilities make the elderly a serious target for financial abuse.

Financial Institutions play an essential role

With in-depth access to a customer’s financial activity, financial institutions (FIs) play a pivotal role in protecting their elderly customers from people attempting to defraud them. The August 2017 Memorandum on Financial Institution and Law Enforcement Efforts to Combat Elder Financial Exploitation – jointly released by the Consumer Financial Protection Bureau (CFPB), The Department of the Treasury, and FinCEN – makes this responsibility clear: “Financial institutions can play a key role in detecting, responding to, and preventing EFE. Financial institutions are often well-positioned to detect when older account holders have been targeted or victimized.”

Four key indicators for fraud detection professionals

There are numerous indicators of EFE, many of which are covered in the Interagency Guidance on Privacy Laws and Reporting Financial Abuse of Older Adults jointly released by numerous agencies, including the CFCB, Federal Reserve, National Credit • 29 •

• January-February 2019

Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) in 2013. Specific to a customer’s banking activity, below are four key indicators that fraud detection professionals can watch for: 1. Account balance: Is the account decreasing? Considering past activity, does the speed of change make sense? 2. Account access: Have new individuals been granted access to the customer’s account? It is common for people to either force an elderly person to grant them access to their account or deceive the elderly person into trusting them with access. 3. Uncommon transaction types: Are they banking via methods that are unusual given their past activity? If they are suddenly wiring money out of their account or transferring funds using online banking, despite never, or rarely, using these transfer methods in the past, the activity should be investigated. Outgoing wires and large ATM withdrawals are particularly suspicious. 4. Odd spending behavior: Based on their past activity, has their spending changed? For example, past activity includes small in-branch cash withdrawals and a monthly rent payment and, suddenly, you are seeing numerous large ATM withdrawals occurring at late at night.

Ending the cycle of Elder Financial Exploitation

FIs have a responsibility to protect the vulnerable and are in a unique position to positively impact the financial safety of the country’s elderly population. The ability to recognize unusual behavior and take quick action through efficient investigation can help the elderly maintain a life of dignity and ensure EFE is no longer considered the crime of the 21st century. Visit verafin.com or contact Verafin at 877-368-9986 or info@verafin.com.

IBA Boards & Committees Listing current as of 12-30-18

Agriculture Advisory Committee Chairman Scott Rhoads, Carrollton Bank Vice Chairman Dale L. Blachford, Liberty Bank, Alton Brian Ash, Town and Country Bank, Lincoln Michael Bavery, Fortress Bank, Carthage Christopher Breyman, Grundy Bank, Morris Ray Bunch, Citizens Bank, Macomb Kenneth Emme, The Havana National Bank, Forest City John Kahle, Busey Bank, Le Roy Ryan Martz, Forreston State Bank, Forreston Kevin Niemann, The First National Bank of Litchfield, Litchfield Kevin Rogers, Philo Exchange Bank, Philo Rick Schramm, Illinois National Bank, Springfield Benjamin Syfert, First Mid Bank & Trust, NA, Tuscola Richard Talbert, Fairfield National Bank, Fairfield Annual Conference Committee Chairman C. Brant Ahrens, CIBC, Chicago Thomas A. Broeckling, First National Bank of Steeleville Rick M. Francois, American Community Bank & Trust, Woodstock Carol Jo Fritts, First Neighbor Bank, N.A., Toledo William P. Gleason, The Leaders Bank, Oak Brook Lawrence J. Horvath, Heartland Bank and Trust Company, Bloomington Heather M. Hoskins, Ascensus, Brainerd, Minn. Jeffrey S. Mefford, Midland States Bank, Effingham Martin J. Noll, Community Bank of Oak Park River Forest, Oak Park Courtney Olson, First Bank of Highland Park Gerald E. Pfeiffer, Bridgeview Bank Group, Chicago Kevin J. Rogers, Philo Exchange Bank Associate Member Committee Kathleen Berman, Graduate School of Banking, Madison, WI Craig Callahan, Floodplain Consultants, Inc., Brownsburg, IN Rob Hobson, MIB, Springfield, IL Sue Kling, Promontory Interfinancial Network, LLC, Aurora Chris Milne, Federal Home Loan Bank of Chicago, Chicago Bill Zumvorde, Profit Resources, Inc., Cincinnati, OH Communications and Marketing Committee Chairman Rhonda Houzenga, Farmers & Mechanics Bank, Galesburg Randy Alderman, The Bradford National Bank of Greenville, Greenville Sarah Bacehowski, Mills Financial Marketing, Storm Lake, IA Cassie Bull, Stillman BancCorp N.A., Stillman Valley

• 30 •

Catherine Cox, Central Bank Illinois, Rochelle Mark Cruse, TheBANK of Edwardsville, Edwardsville Ron Hobson, Midwest Independent Bank, Springfield J.R. Hock, Grundy Bank, Morris Kathleen Rolfs, The State Bank Group, Wonder Lake Chelsey Spruell, Midland States Bank, Effingham Michael Thies, Midland States Bank, Effingham Marilyn Titone Schaefer, Illinois National Bank, Springfield Diane Wagner, Bank of America , Chicago Ginny Wagner, Itasca Bank & Trust Company, Itasca Compliance Division Advisory Committee Chairman Linda Boyer, CRCM, Inland Bank and Trust, Oak Brook Vice-Chair Mary Schroeder, Pan American Bank & Trust, Melrose Park Gwanzetta Anthony-Gee, Urban Partnership Bank, Chicago Beth Averill, The Northern Trust Company, Chicago Laura Barney, Byline Bank, Chicago Allison Bartels, CRCM The Leaders Bank, Oak Brook Meschelle Brand, Murphy-Wall State Bank and Trust Company, Pinckneyville J. Edward Cannon, The First National Bank of Beardstown Sandra Chapman, CRCM Busey Bank, Champaign Caeri Chiaro, CRCM Illinois National Bank, Springfield Kylee Durbin, Town and County Bank, Springfield Deborah Filarski, Community Bank of Oak Park River Forest, Oak Park Ramona Gebauer, TheBANK of Edwardsville Luke Hawkins, Community State Bank, Galva Rebecca Ketter, CCBCO Stillman BancCorp N.A., Stillman Valley Laura R. Kinney, CRCM First State Bank of Bloomington Mary Kirbach, Carrollton Bank Kim Kuhl, CRCM First Financial Bank, NA, Olney Denise LaForte, First Nations Bank, Chicago Lorraine Linnerud, FNBC Bank and Trust, La Grange Regina Ondyak, Countryside Bank Nora Reyes, MB Financial Bank, N.A., Rosemont Stephanie Swearingin, CRCM Liberty Bank, Alton Maria Warner, Morton Community Bank Barbara Yusko, CRCM, CRP First Midwest Bank, Plainfield Finance and Investment Committee Chairman Gretchen Murphy, First Mid Bank & Trust, Decatur Treasurer Dale Blachford, Liberty Bank, Alton Robert Cormier, Home State Bank, N.A. , Crystal Lake

• January-February 2019

David Doedtman, Washington Savings Bank, Effingham William O’Neil, Carrollton Bank, Carrollton Robert Parker, TheBANK of Edwardsville, Edwardsville Jeffrey Snyder, Forreston State Bank, Forreston Fintech Committee Chairman Larry Kallembach, Heartland Bank and Trust Company, Bloomington Micah Bartlett, Town and Country Financial Corporation, Springfield Jo Ann Boylan, First Midwest Bank, Itasca Tom Gihl, Illinois National Bank, Springfield Dean Haacker, CIBC, Chicago Don Schlorff, The Gerber State Bank, Argenta Michelle Toll, The State Bank Group, Wonder Lake Future Leaders Alliance Board of Directors Chairman, Rachael Maurer, United Community Bank, Springfield Vice Chairman, Matthew Wyatt, TheBANK of Edwardsville, Collinsville Immediate Past Chairman, Joshua Huseman, First National Bank, DeKalb Greg Bushue, Washington Savings Bank, Effingham Andrew Butts, Bank of Belleville, Belleville Trent Cox, Farmers & Mechanics Bank, Galesburg Colin DeCair, Busey Bank, Champaign Christopher Hushka, MB Financial Bank, N.A., Rosemont Bethany Shaw, Peoples National Bank, N.A., Harrisburg Future Leaders Scholarship Committee Chairman David Brandon, Hickory Point Bank and Trust, Decatur Andrew Butts, Bank of Belleville Thomas J. Chamberlain, Iroquois Federal Savings & Loan Assoc, Danville Trent Cox, Farmers & Mechanics Bank, Galesburg Michael Cripps, The First Bank and Trust Company of Murphysboro Lenore Erickson, First Bank of Highland Park Jeffery Fauver, Catlin Bank Joshua Huseman, First National Bank, DeKalb Rachael Maurer, United Community Bank, Springfield Matthew Wyatt, TheBANK of Edwardsville, Collinsville Government Relations Committee Chairman Michelle Gross, State Bank of Bement, Bement Todd Bailey, The Huntington National Bank, Columus, OH Jeff Baker, LincolnWay Community Bank, New Lenox Randy Blackburn, Milliennium Bank, Des Plaines Thomas Broeckling, First National Bank of Steeleville, Steeleville

IBA Boards & Committees Listing current as of 11-20-17

Agriculture Advisory Committee

Patricia Clausen, NorthSide Community Bank, Chairman Scott Rhoads, Carrollton Bank, Riverwoods Carrollton Kathleen Cook, C. The Village Bank,CIBC, SaintChicago Libory Vice Chairman Brant Ahrens, Daniel Daly, SENB Bank, Moline Jim Adcock, Peoples Bank & Trust, Taylorville Kyle Murphy-Wall State Bank, Bank and Trust BrianDavis, Ash, Town and Country Lincoln Company, Pinckneyville Michael Bavery, First State Bank of Illinois, Jeffrey DeBruin, Municipal Trust & Savings Bank, Carthage Bourbonnais Christopher Breyman, Grundy Bank, Morris Nicole Elam,Citizens JPMorgan Chase Bank, N.A., Chicago Ray Bunch, Bank, Macomb Rick Francois, American Community Bank & Trust, Kenneth Emme, The Havana National Bank, Woodstock Forest City Stacie U.S.Farina Bank Banking N.A., Minneapolis, MN GeraldHolden, Galbraith, Center, Farina Corey Banc-Corp., HaroldHoze, Gates,Associated First National Bank of Beardstown, Milwaukee, WI Winchester Betsy Johnson, Forreston State Bank, Les Hoveln, The Gifford State Bank, SaintForreston Joseph Donald Krager, BankBank, & Trust Chatham John Kahle, Busey Le Company, Roy Brien Leahy, FirstLitchfield Bank of Highland Nicholas Kuhns, National Park, Bank, Highland Park Litchfield Kathleen Narusis, HomeState StateBank, Bank,Forreston N.A., Crystal Ryan Martz, Forreston LakeMcHale, State Bank of Bement, Bement Michael Rebecca Novak, The BMOFirst Harris Bank, NA, Kevin Niemann, National BankChicago of Kevin Olson, Grundy Bank, Morris Litchfield, Litchfield Mark Peterson, Bridgeview Bank Group, Kevin Rogers, Philo Exchange Bank, Philo RickBridgeview Schramm, Illinois National Bank, Springfield Jeff Rabren, Regions AL Benjamin Syfert, FirstBank, Bank Birmingham, & Trust, IL, Paris Jaclene Robinson-Ivy, The Northern Trust Sam Sweeney, Iroquois Farmers State Bank, Company, Chicago Ashkum James Roolf, First Midwest Bank, Joliet Richard Talbert, Fairfield National Bank, Fairfield Pamela Sharar-Stoppel, Wheaton William Wagner, First Mid-Illinois Bank Bank && Trust Trust, Company NA, Highland Kathy Thompson, CIBC, Chicago Raymon Trost, TheBANK of Edwardsville, Annual Conference Committee Edwardsville Chairman Kevin L. Olson, Grundy Bank, Morris DanielCallahan, Watts, Forest Park National Bank &Inc., Trust Craig Floodplain Consultants, Company, Forest Brownsburg, IN Park Simon Wlodarski, BankBankers of America, Gregory A. Curl, First TrustChicago Company, N.A., Springfield William P. Gleason, The Leaders Bank, Oak Brook Human Resources Committee Lawrence J. Horvath, BankPoint andBank Trust Chairman Amy Frazier,Heartland PHR, Hickory Company, Bloomington and Trust, Decatur Dawn Johnson, Security KristanM. Becker-Hoffman, TheSavings FarmersBank, State Bank Monmouth & Trust Company, Jacksonville Ruth S. McLaren, Community Bank Rochester, of Oak Park Tom Blackwell, Angott Search Group, MI River Forest, Oak ParkState Bank and Trust Susan Davis, Murphy-Wall Jeffrey S. Mefford, Midland States Bank, Company, Pinckneyville Effingham Crystal Dyer, PHR Holcomb State Bank, Rochelle Gerald Pfeiffer, Bridgeview BankAttorneys Group, MichaelE.Gifford, Howard & Howard Chicago PLLC, Peoria Andrew Salk, First Bank,First Chicago Beth Glanzer, MBA,Eagle SHRM-CP Mid Bank & RyanTrust, Sanders, UMB Bank, n.a., St. Louis NA, Mattoon Steven Slack,SPHR Home State Bank, N.A., LorraineL.Gusé, Community Bank of Crystal Oak Lake Park River Forest, Oak Park Douglas R. Stroud,First TheSecurity Bradford National Bank of Renée Hageman, Trust and Savings Greenville Bank, Elmwood Park Victoria Johnson, Longview Bank, Ogden Associate Member Committee

John Kane, Stillman BancCorp N.A., Stillman Kathleen Berman, Graduate School of Banking, Valley Madison, WI DaNeal Keane, MBA, PHR, SHRM-CP Home State Craig Callahan, Floodplain Consultants, Inc., Bank, N.A., Crystal Lake Brownsburg, IN Laura Retzlaff, PHR The State Bank Group, Ron Hobson, Midwest Independent Bank, Wonder Lake Springfield

• 31 •

Sue Kling, Promontory Interfinancial Network, LLC, Aurora Donna Smith, Plante Moran, Auburn Hills, MI Jim Beran, D+H, Mequon, WI Chris Milne, Federal Home Loan Bank of Chicago, Chris Schaefer, Carrollton Bank, Carrollton Chicago Melissa Walter, LincolnWay Community Bank, David Chroust, Ice Miller LLP, Lisle New Lenox Bill Zumvorde, Profit Resources, Inc., Diana Whitson, Farmers & Mechanics Bank, Cincinnati, OH Galesburg Kathy Williamson, PHR, SHRM-CP Bank of Compliance Division Farmington Advisory Committee Danielle Wisely, MA, SPHR, SHRM-SCP TheBANK Chairman Linda Boyer, CRCM, Inland Bank & of Edwardsville, Edwardsville Trust, Oak Brook Vice-Chair Mary Schroeder, Pan American Bank & Illinois Business Services Trust,Bankers Melrose Park Board Barnett, The Northern Trust Company, Patricia Chairman P. David Kuhl, Aon Trust Company, Chicago Champaign Lauren Barney, Byline Bank, Chicago Vice Chairman Cornerstone Allison Bartels, Daniel CRCM,Hollowed, The Leaders Bank, Oak National Bank & Trust Company, Palatine Brook Micah Bartlett, Town and Country Financial Meschelle Brand, Murphy-Wall State Bank and Corporation, Springfield Trust Company, Pinckneyville Belinda Feezel, TheBANK of Edwardsville, J. Edward Cannon, The First National Bank of Edwardsville Beardstown, Beardstown Tom Gihl, Illinois National Bank, Springfield Sandra Chapman, CRCM, BuseyBank Bank,and Champaign Larry Kallembach, Heartland Trust CaeriCompany, Chiaro, CRCM, Illinois National Bank, Bloomington Springfield Kevin Olson, Grundy Bank, Morris Kylee Durbin, CCBCO, andBank, Country Beth Williams, PeoplesTown National N.A.,Bank, Mount Springfield Vernon Deborah Filarski, Community Bank of Oak Park River Forest, Oak Park Illinois Bankers Education Services Ramona Gebauer, TheBANK of Edwardsville, Board Edwardsville Chairman Thomas J. Chamberlain, Iroquois Gwanzetta Urban PartnershipDanville Bank, FederalAnthony-Gee, Savings & Loan Association, Chicago Brant Ahrens, CIBC, Chicago Luke Community State Bank, Rene’Hawkins, Anderson, Hickory Point Bank andGalva Trust, Catherine Jasinski, CRCM, First Bank & Trust, Decatur JohnEvanston Armstrong, First Bankers Trust Company, Rebecca Ketter, CCBCO, Stillman BancCorp N.A., NA, Macomb Stillman Valley Michael Cripps, The First Bank and Trust Company MaryofKirbach, Carrollton Bank, Carrollton Murphysboro Kim Kuhl,Gusé, CRCM, FirstCommunity Financial Bank, Lorraine SPHR Bank National of Oak Park River Forest, Association, OlneyOak Park James Peters, Country Bank, Springfield Denise LaForte,Town Firstand Nations Bank, Wheaton Rhonda Rawlings, MidBank Bank& &Trust, Trust,LaMattoon Lorraine Linnerud,First FNBC Grange Rob Stroh III, Tempo Bank, Trenton Regina Ondyak, Countryside Bank, Countryside Matt Wyatt, TheBANK Edwardsville Kristina Reiter, CRCM,ofFirst Trust & Savings Bank of Albany Illinois Bankers PAC Bank, BoardNational Nora Reyes, MB Financial Chairman Peter Brummel, Association, RosemontGrundy Bank, Morris Treasurer Linda Koch, Illinois Bankers Association, Stephanie Swearingin, CRCM, Liberty Bank, Alton Springfield Marsha Toland, Heartland Bank and Trust Assistant Treasurer Mark Donovan, Illinois Company, Bloomington National Bank, Springfield Maria Warner, Morton Community Bank, Morton Dale Blachford, Liberty Bank, Alton Barbara Yusko, CRCM, First Midwest Bank, Daniel Daly, SENB Bank,CRP, Moline Plainfield TJ Dosch, First Neighbor Bank, Mattoon Michelle Gross, State Bankand of Bement, Bement Communications Courtney Olson, First Bank of Highland Park Marketing Committee Michael O’Rourke, Signature Bank, Chicago

Chairman Randy The Bradford James Roolf, FirstAlderman, Midwest Bank, Joliet National Bank of Greenville, Greenville Kathy Thompson, CIBC, Chicago Sarah Bacehowski, Mills Financial Marketing, Storm Lake, IA Mark Cruse, TheBANK of Edwardsville, Edwardsville Abby Hendren, Busey Bank, Urbana

• January-February 2019

Ron Hobson, Midwest Independent Bank, Springfield J.R. Hock, Grundy Bank, Morris RhondaHouzenga, Farmers & Mechanics Bank, Galesburg Committee Membership Chelsey Spruell, States Bank, Chairman MartinMidland Noll, Community BankEffingham of Oak ParkThies, River Midland Forest States Bank, Effingham Michael Jeff Baker, LincolnWay Community Bank, New Lenox MarilynTitone Schaefer, Illinois National Bank, Dale Blachford, Liberty Bank, Alton Springfield Jeff Rabenort, Bank, Okawville Diane Wagner, Bankers’ Bank of America, Chicago Jeffrey Snyder, Forreston Bank Ginny Wagner,Itasca Bank State & Trust Company, Michael ItascaSteelman, Farmers & Merchants State Bank of Bushnell Denise Ward, Central Bank Illinois, Geneseo

Finance and Technology and Operations Committee Investment Committee Patricia Colwell, Farmers & Mechanics Bank,

Chairman Gretchen Murphy, Soy Capital Bank and Galesburg TrustCoons, Company, Decatur James Stillman BancCorp, Inc. Stillman C. Brant Ahrens, CIBC, Chicago Valley Robert Cormier, Home State Bank, N.A.,Lake Crystal Mike DiPirro, Home State Bank, Crystal William LakeEvens, First Midwest Bank, Hickory Hills Patricia Hartmann,Washington The First National of David Doedtman, SavingsBank Bank, McHenry, McHenry Effingham Leanne Kopischke, Kevin Olson, GrundyBusey Bank,Bank, MorrisChampaign Jim Matheis, Town and Country Bank, Springfield William O'Neil, Carrollton Bank, Carrollton Lemanuel McKnight, Theof State Bank Group, Robert Parker, TheBANK Edwardsville, Wonder Lake Edwardsville Ryan National Bank Forreston of Kewanee, JeffreyMelton, Snyder,Peoples Forreston State Bank, Kewanee Joseph Oleksak, PlanteAlliance Moran, Elgin Future Leaders Margaretof Titley, MB Financial Bank, N.A., Board Directors Rosemont Chairman Joshua Huseman, First National Bank, Michael J. Wyffels, QCR Holdings, Inc., Davenport, IA DeKalb

Secretary Amy Ostermeier, Illinois Bankers Women in Banking Committee Association, Springfield Chairman Bridget Glavaz, First Midwest Bank, Jaclyn Aldridge, Grundy Bank, Morris Chicago Andrew Butts, First Mid-Illinois Bank & Trust, NA, Candee Arvin, Illinois National Bank, Springfield Edwardsville Ashley Basso, Peoples Bank & Trust, Pana Davann & Merchants State CynthiaCadwalader, Carr, MidlandFarmers States Bank, Effingham Bank of Bushnell, Bushnell Jean Claude, Central Bank of St. Louis, Saint Landon Etheridge, Crossroads Bank, Effingham Louis, MO Christopher Hushka, Financial Bank,Litchfield N.A., Patty Fletcher, Bank MB & Trust Company, Rosemont Neena Frisch, TheBANK of Edwardsville, Will Justice, Duncan Williams, Inc., Memphis, TN Edwardsville Melissa Tepovich, Busey Bank, Champaign Kim Klein, The Gerber State Bank, Argenta Candice Knight, Murphy-Wall State Bank and Trust Government Relations Company, Pinckneyville Committee Michelle Maiter, First Midwest Bank, Lake Forest Chairman Dale Blachford, Liberty Bank, Laura Mergelkamp, First National BankAlton of VickyWaterloo, Arroyo, MB Financial Bank, N.A., Chicago Waterloo SuzyBaker, Perino, Sauk Valley Bank & Trust Company, Jeff LincolnWay Community Bank, New Sterling Lenox JaniceBlackburn, Schramm, Pan Hickory Point Bank and Trust, Randy American Bank,Melrose Springfield Park Ashley Speed, Grundy Bank, MorrisBank of Thomas Broeckling, First National Gracia Turner, Iroquois Federal Savings & Loan Steeleville, Steeleville Assoc, Clifton James Bruns, Iroquois Farmers State Bank, Susan Webb, Busey Bank, Peoria Iroquois Susan Litchfield National Bank, Litchfield PatriciaWetzel, Clausen, NorthSide Community Bank, Andrea Zurkamer, Heartland Bank and Trust Riverwoods Company, Bloomington Kathleen Cook, The Village Bank, Saint Libory Daniel Daly, Southeast National Bank, Moline Marty Davis, Murphy-Wall State Bank and Trust Company, Pinckneyville Scott Fontenot, Wells Fargo & Company, Des Moines, IA

2019 Scholarships Exclusive to IBA Members

IBA Future Leaders Alliance (FLA)

One-Year Program Beginning in February Two Partial Scholarships Awarded (Courtesy of Federal Home Loan Bank of Chicago) One Full Scholarship Awarded (Courtesy of Peoples Bank & Trust in Pana)

Graduate School of Banking Human Resource Management School April 7-12 | University of Wisconsin  Madison One Scholarship Awarded

Graduate School of Banking

July 28 - August 9 | University of Wisconsin  Madison Two Scholarships Awarded

ABA Stonier Graduate School of Banking June 6-13 | University of Pennsylvania, Philadelphia One Scholarship Awarded

Apply online at ilbanker.com. ilbanker.com | 217-789-9340 | education@ilbanker.com

• 32 •

• January-February 2019

Effingham

MIDLAND STATES BANK Jason T. Anderson, Economic Development Director for the City of Rochelle, Ill., has been appointed to the Board of Directors.

ON THE MOVE

Mattoon

FIRST MID BANK & TRUST Melissa Engle has been promoted to the position of Branch Manager.

Moline

F&M BANK Randy Weatherly has been hired as Vice President, Brimfield Market.

QUAD CITY BANK & TRUST Chad Sovey has been hired as wealth management officer, and Beth Kauzlarich has been hired as associate wealth management officer.

Greenville

Wonder Lake

Galesburg

BRADFORD NATIONAL BANK Michael Ennen has been promoted to the position of President of the bank effective January 1. He becomes the bank’s tenth president in its 151-year history. Ennen joined the bank in August 2004 as a Credit Analyst. Since then, he has served as a Commercial Lending Officer and the bank’s Chief Financial Officer. Ennen has also been a member of the Board of Directors of the bank since 2015. Frank Joy will continue leadership of the bank through his role as Chairman of the Board. Doug Stroud will continue in his position as Chief Executive Officer on a part-time basis. Stroud, who has been with the bank since 2011, has served as president since 2014. Stroud became a board member in 2005 and has been CEO since 2016.

THE STATE BANK GROUP The State Bank Group has announced that long-time president and CEO Stephen Mitchell retired from the bank effective December 31, 2018, ending a 40-year tenure as the top executive of this locally-owned community bank. Upon his retirement from active responsibilities, Mitchell will remain on the Board of Directors with the bank and the holding company, Wonder Bancorp, Inc. The bank also announced that Michelle Toll has been named President and Chief Executive Officer. Toll started with the bank in 1998 and currently serves as EVP and COO. Toll serves on the Board of the Illinois Bankers Association and was named the IBA’s Volunteer of the Year in 2017 for her many contributions to the Association and to the community banking industry.

Anderson

Weatherly

Ennen

Sovey

Kauzlarich

Toll

ADVERTISING INDEX

• 33 •

Bankers’ Bank (Wisconsin)

800-388-5550

www.BankersBank.com

BOK Financial

866-440-6515

www.bokfinancial.com/institutions

Howard & Howard

312-372-4000

www.howardandhoward.com

Illinois Bankers Group Insurance Trust

217-789-9340

www.ilbanker.com/Insurance/Insurance-Trust

MIB-Midwest Independent Bank

800-347-4642

www.mibanc.com

• January-February 2019

2 37

Back Cover

WELCOME NEW MEMBER BANKS Anchor State Bank Campus State Bank Central Federal Savings and Loan Association Citizens National Bank Community First Bank of the Heartland Community Partners Savings Bank First National Bank of Pana Farmers State Bank of Danforth Farmers State Bank of Western Illinois First Savanna Savings Bank First Savings Bank Flora Savings Bank GN Bank Loomis Federal Savings and Loan Marion County Savings Bank Nashville Savings Bank Nokomis Savings Bank North County Savings Bank

NEW ASSOCIATE MEMBERS BankMarketingCenter.com Atlanta, GA Contact: Neal Reynolds http://BankMarketingCenter.com BankMarketingCenter.com is a web-based marketing portal that empowers banks to produce professionally designed, bank-branded marketing materials in a matter of seconds. With thousands of successful marketing materials and over 9 million stock photos, it puts you in complete control of the ad production process, saving valuable time and money.

ASSOCIATE MEMBER NEWS SomerCor SomerCor has appointed Manuel "Manny" Flores as President and Chief Executive Officer. Flores takes the reins at SomerCor after serving two years as a member of the nonprofit lender’s Board of Directors. SomerCor is a Certified Development Company (CDC), a nonprofit corporation certified by the Small Business Administration (SBA). SomerCor facilitates and processes SBA 504 loans, Community Advantage loans, Small Business Improvement Fund grants, and Neighborhood Opportunity Fund grants.

Ottawa Savings Bank Peoples Bank of Macon South Porte Bank Streator Home Savings Bank The First National Bank, Mattoon The First Trust and Savings Bank Union Federal Savings and Loan Wabash Savings Bank Washington State Bank

ILLINOIS BANKERS GROUP INSURANCE TRUST Trustees • Chairman Dane H. Cleven, Community Savings Bank, Chicago

• Justin Fentress, DeWitt Savings Bank, Clinton • Larry H. Clark, Marion County Savings Bank, Salem • Kenneth B. Elmore, The First National Bank of Litchfield

• Walter Hasselbring III, Iroquois Federal Savings & Loan Association, Watseka

• Craig M. Hepner, Ottawa Savings Bank • Kathleen Marinangel

• 34 •

• January-February 2019

EVENTS CALENDAR

SEMINARS, CONFERENCES AND FORUMS FEB 5-6 2019 Branch Management Series Oak Brook FEB 7-8 Business Development Workshop Oak Brook FEB 12- Universal Banker Certification 13 Series Springfield FEB 28- The ONE Conference MAR 1 East Peoria MAR 5 The Emerging Consumer & How to Bank Them Springfield MAR 6 The Emerging Consumer & How to Bank Them Oak Brook MAR 12 New Accounts in Illinois Springfield MAR 13 New Accounts in Illinois Oak Brook MAR 19 Women in Leadership Symposium Oak Brook MAR 26- Universal Banker Certification 27 Series Springfield

UPCOMING EVENTS February 28-March 1 The ONE Conference Embassy Suites East Peoria

WEBINARS

FEB 5 Regulatory Change Management – Pay it Forward!• FEB 6 Introduction to Internal Audit* FEB 7 Preparing a New Manager for Success* FEB 7 Security and Privacy Issues for Fiduciaries and Clients• FEB 8 Call Report for Banks: Recent Changes, Highlights, and Pitfalls* FEB 11 CRE Appraisals: Regulations and the Review Process* FEB 12 What to Do When a Customer Dies* FEB 12 CRA Nuts & Bolts: Five Steps to Pass the Exam* FEB 13 Loan Documentation: Top 10 Mistakes and How to Avoid Them* FEB 14 8 Steps to Improve Cross-Selling* FEB 20 Top 25 Safe Deposit Compliance Issues* FEB 22 ACH Rule Changes: What's New in 2019* FEB 25 Excel Explained: Minimize Spreadsheet Errors* FEB 26 Onboarding Your New Hire* FEB 26 Amicus and Case Updates: A Bankruptcy Update for Corporate Trustees• FEB 27 It’s Time for a TRID Check Up* FEB 28 Federal Benefit Payments Garnishment Requirements*

MAR 7 Current Issues in Charitable Giving• MAR 14 Social Media Attacks and Trends for 2019• * Total Training Solutions • American Bankers Association

ABA ONLINE TRAINING COURSES

FEB 4 Building Customer Relationships** Money and Banking FEB 11 Analyzing Financial Statements FEB 19 CTFA Exam Online Prep Marketing Planning FEB 25 Introduction to Agricultural Lending Introduction to Trust Products and Services IRA Online Institute MAR 4 The Banking Industry** CRCM Exam Online Prep MAR 18 Bank Lines of Business** General Accounting MAR 25 Legal Foundations in Banking Managing the Bank’s Investment Portfolio Marketing Management ** Part of ABA’s Banking Fundamentals Curriculum (formerly Principles of Banking)

May 6 Spring Golf Outing St. Clair Country Club, Belleville

September 9 Fall Golf Outing Pekin Country Club

June 7 Compliance Conference Chicago Suburbs

September 16-18 Washington Visit Marriott Marquis, Washington, D.C.

March 12 Economic Investment Day Wyndham Springfield City Center

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

September 24-25 Women in Banking Conference Crowne Plaza Springfield

March 19 Women's Leadership Symposium Hilton Oak Brook Hills, Oak Brook

August 21-22 Ag Banking Conference Crowne Plaza Springfield

March 11 Spring Law Review Wyndham Springfield City Center

• 35 •

• January-February 2019

NEWS & NOTES First Mid-Illinois Bancshares, Inc. Completes Acquisition of SCB Bancorp, Inc. First Mid-Illinois Bancshares, Inc. announced that the acquisition of SCB Bancorp, Inc., which includes Soy Capital Bank and Trust and its wholly owned subsidiary, J.L. Hubbard Insurance and Bonds, has been completed. The acquisition represents approximately $458 million in total assets, $341 million in deposits and $254 million in loans through ten banking centers in Illinois. With the completion of this acquisition, First Mid has approximately $3.8 billion in total assets.

19 locations in Michigan. With the acquisition, Advia will serve over 160,000 members with 32 branches in Illinois, Michigan, and Wisconsin. The transaction, which is subject to regulatory and

McLaughlin Holding Company to Acquire Gateway Banc Corp. McLaughlin Holding Company, the holding company for SENB Bank, announced the signing of a definitive merger agreement with Gateway Banc Corp., parent company of Gateway Community Bank. It is expected to close in the first quarter of 2019.

Golden Eagle Community Bank to be Acquired by Advia Credit Union Golden Eagle Community Bank announced that it will be acquired by Advia Credit Union. GECB, headquartered in Woodstock, has two additional branches in Crystal Lake and Cary. The acquisition will provide a combined 13 area locations in northern Illinois and southern Wisconsin as well as

• 36 •

• January-February 2019

shareholder approval, is expected to be completed in the second quarter of 2019. Advia has approximately $1.7 billion in assets and nearly 600 employees.

Federal Reserve and CSBS Release Findings from 2018 National Survey of Community Banks The Federal Reserve System and the Conference of State Bank Supervisors (CSBS) released findings from a national survey of community bankers. The survey report, available on the conference website at www.communitybanking.org, provides a comprehensive view of trends in the community banking industry from the perspectives of bankers nationwide. Survey responses were obtained from 521 community banks in 37 states. In addition to regulatory issues, this year’s survey addressed trends in small business and other lending, banking services, mergers and acquisitions, management succession, and financial technology. Following are some key findings from this year’s survey responses: • Inferred compliance costs for the overall community banking industry, which had been increasing in previous years, declined to an estimated $4.7 billion. Despite the decline, surveyed bankers cited the cost of regulations as a key factor in considering whether to accept acquisition offers. • Management succession was considered at least a moderately important factor by two-thirds of bankers who were weighing acquisition offers. • A majority of bankers said they were collecting and analyzing data in preparation for implementation of the Current Expected Credit Loss (CECL) model. • The vast majority of bankers said that, in response to competitive pressure for small business loans, they rarely or never eased terms by extending maturity, reducing collateral requirements, requiring fewer covenants or allowing more borrower leverage.

Illinois Bankers Group Insurance Program With the recent transfer of sponsorship of the Illinois League’s long-time Group Health Insurance Trust to the Illinois Bankers Association, now is the perfect time to take a look at all the Trust has to offer! The Illinois Bankers Group Insurance Trust provides IBA members with a reliable source of competitively-priced, quality group insurance products. All plans comply with the Affordable Care Act THIS MEANS ■ Lower overhead expenses ■ Plan flexibility ■ Individual attention ■ Quality and timely processing of claims ■ COBRA and HIPPA administration ■ Coverage for employees, directors and retirees

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

STRATEGIC PARTNERS

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

• 37 •

Jim McNichols Vice President jmcnichols@ilbanker.com

• January-February 2019

Hillary Meyers Trust Manager hmeyers@ilbanker.com

Bob Penwell Relationship Manager bpenwell@ilbanker.com

THE LAST PAGE

Powerful Message! Powerful Photo! This year's Women in Banking Conference was a huge success

with record attendance, inspiring and informative speakers and numerous networking opportunities. The event also featured a Silent Auction that raised nearly $2,000 to benefit the Susan G. Komen

Take a look at a few of the comments posted by attendees to the WIB Conference app!

SAVE THE DATE! Women in Banking Conference September 24-25, 2019 Crowne Plaza Springfield If you have any items or pictures to share on The Last Page, e-mail them to Debbie Jemison at djemison@ilbanker.com.

• 38 •

• January-February 2019

Foundation and Making Strides Against Breast Cancer. Attendees were encouraged to wear pink on the first day of the conference, and they took a moment to honor people in their lives who have been affected by this terrible disease.

Build ng Your Game Plan February 28-March 1, 2019 Embassy Suites • East Peoria

SAVE THE DATES!

IT’ S HIP in AUST IN!

ANNUAL CONFERENCE

June 23-25, 2019 * JW Marriott * Austin, TX

It can be lonely out there. Our team helps community banks face today’s challenges.

800-347-4MIB mibanc.com

Ron Hobson VP/Relationship Manager

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

MEMBER FDIC

Tom Maassen VP/Loan Officer

Matt Sinnett President/CEO

LENDING SERVICES

OPERATIONAL SERVICES • • • • • • • • • •

Joe Kollmeyer SVP/Senior Loan Officer

™

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

INVESTMENT SERVICES • Government & Agency Bonds • Asset/Liability Management • Bank Advisory/Strategy MEMBER FINRA

INVESTMENTS ARE NOT FDIC INSURED NOT BANK GUARANTEED & MAY LOSE VALUE FOR INSTITUTIONAL USE ONLY