Illinois Banker Magazine | November - December 2023

November-December 2023

The Official Publication of the Illinois Bankers Association illinois.bank

Supporting our greatest assets: our employees

ALSO IN THIS ISSUE: u Why Upskilling and

Reskilling Employees are Key to Business Success

u Effective Coaching with

Sales Performance Metrics

u Decoding Employee Departures

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

WHY Jerry Reed

Ron Hobson

I always enjoy seeing Ron Hobson when he comes to our community bank. His ability to listen to what our bank needs, and then make recommendations is very beneficial to us. We appreciate the relationship we have with Ron and the MIB team.

?

Gerald “Jerry” Reed, President/CEO First National Bank of Brownstown

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800-347-4MIB mibanc.com

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AUDIT SERVICES COMPLIANCE SERVICES

We understand the issues unique to the banking industry. With over 100 years of banking experience, our knowledgeable staff will provide the complete independent services required by best practices and regulatory guidance.

www.mibanc.com/audit

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ACH Audit BSA Audit Lending Compliance Audit Deposit Compliance Audit Directors’ Examination Interest Rate Risk Review Home Mortage Disclosure Act (HMDA) Review Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act Audit

LOAN SERVICES • Loan Review IT SERVICES • • • • • •

Internal/External Penetration Test Internal/External Vulnerability Assessment Social Engineering Assessment Information Technology (IT) Security Audit Business Continuity Management Audit Firewall Configuration Review

WELCOME November-December 2023 • Vol. 109 / No. 6 • illinois.bank

TABLE OF CONTENTS 10

24 COLUMNS

14

5

Messages from the C-Suite

12

6

Compliance Corner

8

Washington Update

22 Event Highlights 26 Welcome New Members 28 On the Move 31 Special Recognition 31 Ad Index 34 Retirements 36 In Memory

FEATURES 9

Advocacy: New Challenges are Guaranteed

10 Why Upskilling and Reskilling Employees are Key to Business Success 12 Effective Coaching with Sales Performance Metrics 14 Decoding Employee Departures 16 Economic Uncertainty, Rising Interest Rates Challenge Banks 18 Understanding Your Energy Contract 20 Illinois Deposits Fall at Lower Level than the National Rate

39 Industry News 41 News and Notes 42 Education Calendar Our Mission: Advocacy. Education.

Industry Resource...for all Illinois bankers.

Our Vision: Connecting Bankers.

Advancing Banking.® Our Core Values: The Illinois Bankers Association will place our members’ interests first, be responsive to their needs, and provide them with the highest level of professionalism and service. The IBA staff is the Association’s greatest asset.

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

November-December 2023 •

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

INTRODUCING THE 2023-2024 IBA BOARD OF DIRECTORS REGION 1

REGION 4

Rudy Gonzalez CIBC Bank USA

Scott Bland First Neighbor Bank N.A.

Frank Pettaway The Northern Trust Company

Brett Tiemann INB, National Association

REGION 2 Courtney Olson First Bank Chicago

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

T.J. Burge Vice Chair Community Partners Savings Bank

Megan Collins Treasurer Bank of America

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Matthew Smith First Mid Bank & Trust, N.A. Dan Wujek State Bank of Cherry

Ted Macon Farmers State Bank of Hoffman

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY Two Offices to Serve You! Springfield Office: 800-783-2265 • Chicago Office: 800-878-2265 To connect with our staff, use this email format: firstinitiallastname@illinois.bank Executive Administration Randy Hultgren, President & CEO

Mindy Manci, Executive Assistant & HR Manager Pam Macha, Springfield Office Coordinator Finance and Administration Mark Bennett, CPA, Executive Vice President and CFO

Marcia Stratton, CPA, Director Marie South, Financial Assistant Law Department

Carly Berard, Associate General Counsel

Randy Hultgren Secretary Illinois Bankers Association

Timothy Smigiel Liberty Bank for Savings

Karlie Krehbiel Lisle Savings Bank

Lora Kalka FNBC Bank & Trust

Carolyn Settanni, Executive Vice President & General Counsel

Betsy Johnson Immediate Past Chair Solutions Bank

J. David Conterio Hometown National Bank

Robert Kelly Old National Bank

FUTURE LEADERS ALLIANCE

Tammy Squires, Vice President, Data and Technology

Courtney Olson Member-at-Large First Bank Chicago

Amy Randolph Busey Bank

Gustavus Bahr PNC Bank, N.A.

Brian Hannon Cornerstone National Bank & Trust Company

Bethany Shaw Peoples National Bank, N.A.

Erich Bloxdorf, Executive Vice President and COO/Interim Marketing Projects Manager

Frank Pettaway Member-at-Large The Northern Trust Company

Michele Petrie Village Bank & Trust, N.A.

David Doedtman Washington Savings Bank

Rick Parks First National Bank of Waterloo

Peter Brummel Grundy Bank

Anthony Nestler Chair-Elect Hickory Point Bank and Trust

REGION 5

MEMBERSAT-LARGE

Michael Schasane, Compliance Counsel

Adam Walsh, Vice President, Insurance Services

Nick Sladek, Administrative Assistant

Robin Lane, Director, Associate Membership

Government Relations

Lyndee Fein, Director, Education & Conferences

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

Rachel Selvaggio, Director, Forums & Future Leaders Alliance Denise Perez, Director, Education & Training Debbie Jemison, CAE, Director, Financial Literacy

Julie Winterbauer, Senior Vice President

Maddison Augustine, Manager, Marketing & Digital Communications

Tim Robinson, Director, Bank Relations

Amy Sale, Education Assistant

Linda Koch, CAE, Manager, Member/Business Relations

Illinois Bankers Group Insurance Trust

Sarah Cowan, Membership Assistant Illinois Bankers Business & Education Services, Inc.

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

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

Editorial Office 3201 West White Oaks Drive Suite 400 Springfield, IL 62704 800-783-2265 www.illinois.bank With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 3201 W. White Oaks Drive, Ste. 400, Springfield, IL 62704. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. © Copyright 2023 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGES FROM THE C-SUITE Chair, Illinois Bankers Association Giving Thanks

Thomas Chamberlain

Iroquois Federal Savings & Loan Association

It is that time of year again. A time to recognize the opportunities around us, to be thankful for them, and to celebrate with family, friends, customers, and co-workers – oh, and have some delicious food! Stepping back and reflecting on how fortunate we are is important for everyone who manages the lifeblood of our organizations: our employees. It is an appropriate time for us to think about those we work with and to be grateful that they are a part of our team.

Every one of our teammates has unique perspectives and talents that are important to our ongoing success. It is incumbent on us to lean into these perspectives, celebrate them, and to fully develop these talents.

One way to do that is to intentionally invest in your staff. And the Illinois Bankers Association has so many ways to do so.

For example, the Future Leaders Alliance cultivates the skills necessary for your

future leaders to carry on the leadership torch well into the future. The Graduate School of Banking-Madison deepens their banking knowledge and helps to develop professional networks that last a lifetime.

And the expansive library of courses and forums offered through the Illinois Bankers hones the technical skills that will elevate your staff to higher levels of career satisfaction.

Yes, this is the time to be grateful for those who help us move our organizations higher, helping our customers and communities grow and prosper. Take a look at the articles in this issue of the Illinois Banker and avail yourself of the programs, courses, and forums that will help you improve the professional lives of those around you.

Wishing you a year ahead of wonderful opportunities, professional growth, and career satisfaction…and please pass the turkey and mashed potatoes!

President & CEO, Illinois Bankers Association Investment Advice Markets continue to be unpredictable, but there is a sure bet. Invest in your greatest asset — your team and yourself. Make the commitment now to find the training and relationships that will prepare your best and brightest talent to serve your customers and prepare as bank leaders of the future.

Growth requires intentionality and action.

Randy Hultgren

Illinois Bankers Association

Now is the perfect time to sit down with each member of your team and hear their goals and, together, map a plan of training and connection that will better prepare them to produce results and lead. A great resource to create this map is the new and improved

IBA website www.illinois.bank. Check out an incredible list of in-person training, webinars, conferences, and forums. Plan now to send your team to the highly ranked ONE Conference in East Peoria, Illinois, on March 7-8, 2024. Determine your best candidates to join the 2024 Future Leaders Alliance class and have them apply. Block out June 24-27, 2024, to bring your leaders to Amelia Island, Florida, for fantastic training and team building at the IBA Annual Convention.

Investing in your people maximizes their impact at the bank, and will encourage and excite them to stay on your team. I cannot think of a better investment for the future of your organizations and our industry.

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COMPLIANCE CORNER The IBA Law Department

QUESTION

A bank director overdrew their account by more than $1,000, which we discovered when processing overdrafts for the day at 8:00 a.m. We contacted the director, who made a deposit to cover the overdraft before 8:30 a.m. Our cutoff for processing overdrafts occurs at 9:00 a.m.

Are we violating Regulation O in this situation?

ANSWER

We do not believe that your bank violated Regulation O in this situation unless your bank advanced funds to cover the director’s overdraft before the 9:00 a.m. deadline.

Regulation O prohibits banks from paying overdrafts of an executive officer or director unless the payment is made in accordance with: “(i) A written, preauthorized, interest-bearing extension of credit plan that specifies a method of repayment; or (ii) A written, preauthorized transfer of funds from another account of the account holder at the bank.” While there is an exception to this prohibition, that exception does not apply to overdrafts greater than $1,000.

A 1996 Federal Reserve Board legal interpretation dealt with a situation where a bank initially settled checks presented during the day while making the

final decision to pay or return checks by 2:00 p.m. on the banking day following receipt of the check.

If a director’s checking account would be overdrawn by payment of a presented check, the bank informed the director and provided an opportunity for them to deposit funds in the checking account to cover the overdraft before the bank’s 2:00 p.m. deadline.

The Federal Reserve concluded that because the bank did not irreversibly advance its own funds to cover a director’s overdraft before the bank’s 2:00 p.m. deadline, this procedure did not “give rise to an overdraft in the director’s account for purposes of Regulation O.” Similarly, if your bank did not advance funds to cover the overdraft before its 9:00 a.m. deadline, we do not believe your practice would give rise to an overdraft subject to Regulation O.

QUESTION

Our bank employees provide notary services for customers and non-customers. Do the new notary public rules indicate whether banks can limit the types of notarial services they provide?

Can our notaries decline to perform certain notarial acts, such as administering oaths or affirmations, or would we need to adopt policies and procedures reflecting the types of notarial acts our employees will perform?

ANSWER

Yes, we believe your notaries may elect not to perform oaths or affirmations. The Illinois Notary Public Act provides that any “notary or electronic notary appointed by the Secretary of State may elect not to perform a notarial act or an electronic notarial act for any reason.”

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As a best practice, you may wish to adopt procedures reflecting your decision to limit your bank’s notarial services to certain acts, but we do not believe you are required to do so.

QUESTION

We received a loan application from a customer who previously defaulted on a car loan extended by our bank, twelve years ago. We had to repossess the car and obtain a deficiency judgment.

The customer refused to pay the judgment, and we were able to collect it only after the customer later sold real property. Now the customer has clean credit, but based on the prior repossession and collection action, we plan to reject his loan application. Will this decision create any fair lending issues?

ANSWER

No, we do not believe that rejecting a loan application for legitimate business reasons should create any fair lending issues, provided that your bank complies with its adverse action requirements. Regulation B allows a creditor to consider “any information obtained” in connection with an application for credit, provided that the information is not used to discriminate against an applicant on a prohibited basis.

Because your bank is not discriminating on a prohibited basis (such as race, color, or exercise of rights under federal consumer protection laws), we believe that the fair lending risk of this credit decision is low. To mitigate these minimal fair lending concerns, we recommend documenting your legitimate business reasons for rejecting the loan.

QUESTION

Our Deposit Services Department is requesting that our customer service representatives obtain meeting minutes or a letter of direction from our customers before making changes to authorized signers on existing LLC accounts. Are these documents required, or is an updated resolution sufficient?

ANSWER

We are not aware of any law or regulation requiring a bank to receive meeting minutes or a letter of direction before making changes to authorized signers on an LLC account, and we believe that a resolution by the LLC removing the previous authorized signers and authorizing the new authorized signers could be sufficient.

However, we recommend reviewing your bank’s policies and procedures and the customer’s account agreement and complying with any requirements addressing the addition or removal of authorized signers.

About the IBA Law Department

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

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

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WASHINGTON UPDATE

The High Cost of Too Much Capital

By Rob Nichols, President and CEO, American Bankers Association In early October, I sat down with Federal Reserve Vice Chairman for Supervision Michael Barr at ABA’s Annual Convention in Nashville. The topic of our conversation was bank capital.

The failures of Silicon Valley Bank, Signature Bank and First Republic Bank have prompted regulators to begin clamoring for major capital increases at larger banks. My question to Vice Chairman Barr was: why?

Why, when the spring bank failures were attributed to a combination of idiosyncratic liquidity challenges, poor risk management practices, and oversight missteps, did regulators put capital in the crosshairs?

Why, when policymakers—including the vice chairman himself—have stated repeatedly that the banking system is strong, resilient, and well-capitalized, is a major change in capital levels suddenly warranted?

While these statements aren’t false, they’re a poor justification for additional capital increases now. The truth is, the post-crisis capital changes did affect economic growth, and they succeeded in driving business outside of the regulated banking sector. Just look at bank mortgage originations in the years since 2007. The share of mortgage originations by banks has declined steadily since the postcrisis rule changes, plummeting from around 80% to just under 30% in 2022. That’s just one example—there are others.

Here are the facts: We already have an effective framework in place that requires regulators to sensibly tailor rules based on a bank’s risk profile and business model.

While I appreciated the vice chair’s willingness to engage in the conversation, I found the answers I received unsatisfying, to say the least.

Banks are already holding sufficient capital, as evidenced by the industry’s collective weathering of several significant events in recent years, from a global pandemic to a period of rapidly rising interest rates, to resiliency in the face of the isolated bank failures in the spring.

He echoed a common argument among proponents of the so-called “Basel III endgame,” namely that the last set of capital changes—instituted after the 2008 financial crisis—did not lead to dramatic economic declines, and that the banking system continued to grow, even while holding higher amounts of capital in reserve.

The proposed rules on the table would return our current framework to a one-size-fits-all approach that would put U.S. banks at a competitive disadvantage to their foreign peers.

They have the potential to drive more business away from banks and into the less regulated shadow banking sector. They also fail to appropriately

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consider the potential economic consequences of forcing banks to hold even more capital in reserve.

Bankers know there is a cost to holding too much capital—and it’s paid by both consumers and businesses who need credit.

To ignore these realities would be a misstep, especially since history tells us that any capital increase for larger banks will eventually affect community banks as well. That’s why ABA has been so vocal in calling on regulators to conduct a thorough quantitative impact study to determine the full extent of potential economic consequences—which they agreed to do in mid-October, alongside an extension of the comment period.

However, simply collecting the data is not enough. Regulators and the public need ample time to review and evaluate the data to understand the full picture—and the current timeline, even with the comment deadline extension, does not allow for that.

Given the wide-ranging effect this rulemaking could have, the only appropriate course of action is for regulators to withdraw and repropose the rule after the data can be fully assessed. Changes to capital rules— even if they are only intended for the largest banks—will inevitably affect all parts of the banking system. This is too important to get wrong.

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

ADVOCACY:

New Challenges are Guaranteed

by Ben Jackson, Executive Vice President, Government Relations

In 2024, I’m entering my fourteenth year as your lobbyist, a long time in the modern era of job-hopping. This role would certainly hold any person’s interest. Our advocacy team loves the member banks we serve. The job is ever evolving, with new challenges every year.

And we take the well-being of every bank, no matter their size or location, as our personal mission.

In these year-end narratives, we usually put an ask towards the end. This time I’m asking up front, echoing so many bad political ads and emails you’ve seen. We need your support in the coming election cycle.

We need every banker to support our political action fund, the Illinois Bankers PAC, so our industry remains relevant in the perpetually expensive business of politics.

A healthy PAC sends a signal to politicians. It shows that we are formidable, that we are vigilant, and that we will support our allies. Delivering that message is increasingly difficult in an era where labor unions drop $15 million in a campaign cycle. We are far from that level, but with your help we can reach our $500,000 annual goal. With every banker in Illinois pitching in, this is easily achievable.

I mentioned new challenges. We certainly face those in Illinois, in Chicago, and in Washington, D.C. Illinois is overwhelmingly Democratic and increasingly progressive. In Washington, progressive activists largely control the banking regulatory agencies. Businesses – and banks in particular – are an easy target for restrictive legislation and regulations.

on the overwhelming tide of harmful regulations coming from federal agencies.

In Springfield, we mostly overcame this challenging dynamic in 2023. We even passed state legislation that lowers the regulatory burden for mortgage lenders by clearing up conflicting mortgage escrow notice requirements in Reg Z and Illinois law. We defeated an onslaught of bad ideas, including legislation aggressively expanding state financial regulatory powers. Bills in Springfield sought to create an Illinois version of the CFPB and implement a state-level UDAAP standard. We bottled up prescriptive Environmental, Social, and Governance (ESG) proposals concerning firearms and fossil fuels. We successfully negotiated legislation that otherwise would have expanded civil liability against all mortgage lenders.

Currently, our toughest fight in Springfield concerns rules implementing the Illinois CRA. The rules as they stand today are lop-sided, imposing a larger burden on banks than on credit unions and mortgage lenders, and they add huge new examination fees. This is a fight that will likely carry over into 2024.

In Washington D.C., we reestablished our fall Washington Visit with grassroots bankers from across Illinois. We were delighted to welcome many new faces thanks to scholarships provided by the Federal Home Loan Bank of Chicago. With our local bankers, we are successfully building relationships with the new members of our congressional delegation. These relationships help us work through Congress to push back

Congress this year has been…weirder than usual. Nonetheless, we are actively pursuing a pro-banking agenda. Bankers are greatly concerned with rules implementing Section 1071 of the DoddFrank Act, covering small business data.

There are ongoing lawsuits challenging the rule, and our industry is working on legislative solutions. The Senate this fall passed a Congressional Review Act resolution that would invalidate the rule if a similar resolution passed the House.

However, it is unlikely that the proposal will secure enough votes to overcome a veto. We support alternative legislation addressing the small biz proposal: H.R. 1806, the Small LENDER Act, which raises the threshold to comply with the rule to lenders originating at least 500 small business loans in each of the two preceding calendar years, sparing many community banks.

Meanwhile, we are also fighting the merchants’ Credit Card Competition Act that would impose a routing mandate on credit card transactions. Cannabis banking remains on our agenda, with the Senate for the first time passing the SAFER Banking Act. We continue seeking congressional cosponsors for the ACRE Act, a bipartisan bill that would provide tax credits to help banks compete with Farm Credit and credit unions.

Our advocacy team loves the work we do. Fighting these battles on behalf of Illinois banks is a fruitless pursuit, though, without your grassroots involvement, your membership, and your PAC support. The current era of politics is as difficult as it is entertaining, and it requires sustained engagement.

We need you.

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Why Upskilling and Reskilling Employees are Key to Business Success

I

n addition to its devastating impact on human health, the COVID-19 pandemic hit businesses hard in many ways.

Staffing was a major problem area. All sectors, including the financial services industry, lost employees to sickness and shutdowns.

In addition, when the pandemic restrictions began to loosen, many workers chose not to return to work. Even today, the Great Resignation is an ongoing headache for hiring managers; monthly staff resignations have remained above four million since September 2021.

by OnCourse Learning

Turnover in banks climbed to 23.4% in 2022, increasing workforce gaps. Oneway firms can bring back and retain needed employees is to implement upskilling and reskilling programs.

In today’s fast-paced and rapidly evolving world, upskilling and reskilling employees have become essential for organizations to remain competitive and relevant.

Why Upskill or Reskill Employees

The necessity of upskilling and reskilling your team is clear. The World Economic Forum and a McKinsey Global Survey released the following stats: u 50% of all employees will need reskilling by 2025 u 87% of organizations say they are facing skill gaps now or they will be in the next few years u 40% of workers’ reskilling will take six months or less When employees are upskilled or reskilled, they become more efficient and effective in their roles. They gain knowledge of new tools and techniques, which can improve the quality and speed of their work. As a result, employees are more productive, which translates into greater efficiency and profitability for the organization.

Upskilling and reskilling are also effective ways to retain talented employees. When

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employees feel valued and supported, they are more likely to stay with their current employer. Investing in the professional development of employees sends a message that the organization cares about its employees and their future growth. u 94% of employees say they’d stay at their company if managers invested in their careers u Younger workers say professional growth was the top reason for choosing their current company u Gen Z says career growth is one of the top three most important job benefits Upskilling and reskilling can also benefit customer satisfaction.

Employees who are upskilled or reskilled are better equipped to handle complex customer issues and provide solutions quickly and efficiently. This can lead to higher customer satisfaction and loyalty, which can ultimately benefit the organization’s bottom line.

These skills also promote innovation and creativity within an organization.

When employees are given the opportunity to learn and grow, they become more creative and willing to take risks. This can lead to new ideas and approaches, which can improve the organization’s products, services, and processes.

Upskilling Vs. Reskilling

Though they sound similar, upskilling and reskilling serve different purposes and result in different outcomes. Both allow companies to utilize internal talent instead of relying on external hiring.

Upskilling Companies utilize upskilling to prepare for the future and adapt to

changing demands. For example, managers might hold training events to help employees learn new skills in preparation for a promotion or new responsibilities. An upskilled employee often keeps the same job with added duties related to their newly discovered competencies.

Reskilling Similar to upskilling, reskilling involves training employees to take on different responsibilities or a new job. Reskilling typically includes teaching lateral skills similar to what the employee is already doing. A reskilled employee typically moves to a new, lateral position.

Financial Services Career Paths

The financial services sector works with our changing economy and market demands every day, and it’s the perfect industry for an upskilling or reskilling program. For example, you employ a hard-working, promising credit union teller. You identify a skills gap in your company and believe this teller has what it takes to fill that need. Your training program will help them learn skills to become a relationship banker, including on-the-job training and online education courses. Instead of hiring a new employee (which is costly), you’re utilizing talent already on hand.

If your employee succeeds in this role, you might help them prepare for management responsibilities through increased business management duties and employee oversight.

Creating Growth Plans

Successful upskilling and reskilling require a plan tailor-made to your business needs. A growth plan for financial service employees can be divided into several stages, including identifying employee needs, setting clear goals and objectives, providing training and development opportunities, and regularly reviewing progress.

First, you’ll want to assess skills gaps within your company. Which skills do you require to help your company grow? And who on your team might fill those needs? The more specific needs you identify, the more successful you will be.

Next, conduct a needs assessment to determine the skills and competencies that employees need to develop in order to fill those gaps.

Then, train your employees by upskilling and reskilling. This can be accomplished through online courses, webinars, job shadowing, and more.

Now it’s time to give your upskilled employees new responsibilities and move your reskilled employees to new roles. Continue to track their progress and provide them with feedback and more training regularly.

The job market and business landscape are continuously changing, and new technologies and processes are being introduced every day.

It is crucial for employees to stay adaptable and flexible to meet these new challenges. Upskilling and reskilling enable employees to develop new skills and competencies, making them better equipped to tackle new challenges as they arise.

Upskilling and reskilling employees has also become essential for organizations to remain competitive and relevant in today’s fast-paced and ever-changing world. It is crucial for organizations to invest in the professional development of employees to ensure they remain adaptable, productive, and satisfied.

By doing so, organizations can reap the benefits of a skilled and engaged workforce, which can lead to improved customer satisfaction, innovation, and profitability.

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Effective Coaching with Sales Performance Metrics

by Jeni Wehrmeyer, COO/CMO, Anthony Cole Training Group

B

anks typically have plenty of relationship and sales data due to the growth and usage of CRM systems, critical to capturing the activities that are occurring with the banking team. But effective coaching with sales performance data often becomes the greater challenge with sales managers and leaders. One of the most effective, easy to understand and utilize is the Sales Huddle that provides sales data insight that can identify trends and provide foundation for coaching.

Huddles Help Coaches Focus on Critical Sales Performance Metrics Huddles as defined by Verne Harnish, founder and President of Gazelles, are: u A communication process or system that allows for sharing of real-time information

should schedule a regular and timely short huddle to monitor what is going on in the field, in real-time. This will allow them to coach or adjust the play or get in front of any banker/ client issues or opportunities. Huddles provide real-time information so that sales managers can make realtime decisions and provide real-time feedback or coaching. This is vastly different than waiting for month or quarter end reporting on results because huddles capture what is happening now, this week. The sales performance metrics that are captured in Huddles can then be used to coach salespeople to impact current deals.

Coaching with Sales Data Insights from Where’s Walter Here is an approach, a coaching technique that can be used below, called “Where’s Walter” that is pictured and explained in the graph below and the text on the next page.

u The most important 15 minutes in any company meeting Each bank or line of business should determine the most important few sales activity data to capture in their huddle regularly each week or month such as contacts, appointments, proposals, COIs etc. Then the sales manager

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Has Effort

Lacks Effort

Execution Results

u A way to bring sharp focus and attention to a critical business driver

Using Where’s Walter for Sales Data Insight As a coaching approach, we recommend sales leaders place their people into one of the four boxes noted above and then have these conversations below with the salespeople in each quadrant.

These are guidelines of course and should be adjusted to the situation and individual at hand. One word

Stay out of the way

Heading towards a slump

Lacks Results

u An opportunity to focus on “burning platform” issues for a team or bank

Coaching a banker’s sales activities can be simplified into two areas: their effort vs. their execution. Effort is described as evaluating if they are doing whatever it takes in the area of outreach and working hard to attain their goals. Execution evaluates their effectiveness in the process of finding new prospects and their approach to building relationships. Are they doing the right things to take a prospect through an effective sales process or do they have a problem?

Bad data, Bad execution, Previous effort problem

Why are they still here?

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of caution, do not soften too much.

Coaching is hard work and leaders must be tough and direct at times to identify real areas concern and development.

Execution Results & Effort “Bob, thank you for the results you are generating. You must be thrilled as this will help you achieve your personal goals and objectives. Just as important though, I also want to thank you for your consistent effort.

You may not realize this, but others on the team look to you and follow your lead. The way that you execute on sales activities “week in and week out” sets a great example for the rest of the team. Thank you. Now, Bob, what else can I do for you?”

Execution Results but Lacks Effort “Bob, I want to thank you for the results you are generating. You must be thrilled as this will help you achieve the personal goals and objectives you have for your family. I am worried about one thing though; can we talk about that? Bob, how long is our sales cycle? (120 days).

Okay, so based on that and looking at

the activities you determined are needed, then the results you are getting today are a result of what? (The activity I did a while back) That’s what I was thinking and that is why I am concerned. Based on the activity here (show them the data), you are headed for a slump. Is that where you want to be?” The coaching begins.

Effort is There but Poor Execution Results “Bob, obviously based on the numbers you see here, you are not on schedule to achieve the extraordinary year to which you had committed to manage yourself. But this is where I’m confused. The data I havethat tells me about your effort- indicates that you should be at or above your goals, but that isn’t the case. My experience tells me that it is because of one of two things: either the data you are entering is not accurate or you are failing to execute properly. Which one do you think it is?”

The coaching begins.

Lack of Effort and Results “Bob, I have to tell you that I cannot figure this out. Your effort and results

are a total surprise to me. If several months ago, someone said to me that you would be failing, I would have said ‘no way.’ (Show Bob the job posting you used for the position he is in and his resume then show him his current sales activity and results.) Bob, I take a look at this (job info) and I think – ‘This is what I hired.’ I look at this (the results) and I’m thinking ‘This is what I got.’ Bob, did I make a mistake?” (Adjust for tenured person) The coaching begins.

Using the Where’s Walter platform gives banking sales coaches a framework to use performance metrics from Huddles to generate conversations, identify areas for salespeople to focus on and most importantly, gain insights for immediate coaching to improve skills, performance and results.

November-December 2023 •

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Supporting Sustainable Banking by

Decoding Employee Departures

by Drew Carter, CEO and Co-Founder, Whistle

"I quit."

These two simple words can send shivers down the spines of managers and HR leaders.

For those in positions of responsibility, this phrase often conjures images of over-stressed teams, missed deadlines, long job searches, frantic recruitment efforts, and countless hours spent sifting through resumes. It's seen as a worstcase scenario, a disruption to the organization's delicate equilibrium.

However, "I quit" isn't an abrupt ending, but rather the result of unspoken frustrations, unaddressed concerns, and unmet expectations that have simmered for weeks, months, or even • 14 •

• November-December 2023

years. It's a culmination of seemingly insignificant issues that, when left unaddressed, become insurmountable. "I quit" signifies a series of moments where an employee's sense of value and belonging in the workplace has eroded to a breaking point.

In this article, we delve into the "I quit" moment, aiming to empower managers and HR leaders not just to react when those words are spoken, but to proactively address underlying issues, reshape rewards programs, and create a workplace where silent struggles are heard, valued, and resolved. We will decipher the complex world of employee retention in the banking industry and discover how to transform "I quit" into "I'm staying."

Human-Centric Investment Businesses succeed when they put their people first.

In an industry where precision and efficiency are critical, the human element can sometimes take a back seat. This leads to a notable paradox: banks invest in technology to serve their customers better but frequently overlook the needs and aspirations of the individuals responsible for operating those systems. Recognizing this discrepancy unveils the secret to employee retention. Staff who feel valued and appreciated stay.

To put this theory into practice, financial institutions should initiate a thoughtful dialogue with employees. This conversation should include asking employees the right questions and providing options.

Striking a balance between empowerment and alignment with organizational goals is the key.

Treating employees well and offering them a sense of empowerment and control over their work environment results in loyalty that increases retention, creates an environment where customers are more satisfied and the bank is more profitable. The idea of “treating employees well”, however, has changed in the last 10 years. Long gone are the days when an annual or even quarterly review was a sufficient cadence for feedback. The employee of the month program is no longer sufficient to communicate the value of a staff member. Bank employees today expect a weekly or monthly recognition frequency. They expect authentic, personalized messages.

This transformative practice reduces turnover, increases job satisfaction, and fosters a vibrant organizational culture.

Strategies for Empowering Employees and Enhancing Retention Timely Recognition: Show appreciation by promptly rewarding outstanding performance. Quick recognition informs employees that their efforts are valued in-themoment.

Personalization: Make recognition personal by allowing employees to choose their rewards, such as cash bonuses directly to their mobile devices. This demonstrates recognition of their individual preferences and contributions.

Frequent Acknowledgment: Celebrate small wins regularly. Offer real-time, smallscale rewards and recognition to maintain high morale and create a culture of appreciation.

Enhanced Onboarding: Ensure new employees feel welcomed and excited about their journey through a positive and engaging onboarding experience. It sets the tone for their long-term satisfaction and productivity, demonstrating their inclusion in a supportive team from day one.

Empowering Supervisors: Provide supervisors with personal and easily digestible training, equipping them with the right skills through accessible, bitesized modules. This empowers them to build stronger relationships with their teams, contributing to long-term employee retention.

Pulse Checks: Continuously assess the pulse of your workplace using technology tools to collect anonymous feedback from employees. This proactive approach ensures that your workplace evolves to meet their needs and fosters a sense of belonging.

Our exploration of the silent battles preceding “I quit” has laid the foundation for proactive change. By embracing these strategies and practices, banks can foster support for their employees through empowerment.

This journey towards recognizing and addressing employee needs not only reduces turnover but also strengthens the industry's resilience.

It's time for banking HR leaders to creatively implement these tactics and leverage new tools to build a brighter future where "I quit" becomes a relic of the past, and employees choose to stay. In this quest for sustainable banking, the real treasure lies in nurturing the human capital that keeps the industry thriving.

November-December 2023 •

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Economic Uncertainty, Rising Interest Rates Challenge Banks

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

The U.S. banking system is sound and resilient, with strong capital and liquidity, according to the latest report on bank supervision and regulation released in May by the Federal Reserve Board of Governors.1 Nevertheless, bank supervisors are actively monitoring risks associated with credit, liquidity and interest rates. These risks have risen in 2023 because of prevailing economic conditions and uncertainty about the future path of the economy.

The banking system was challenged earlier this year by the failures of three large banks (Silicon Valley Bank, Signature Bank New York and First Republic Bank). Even though those failures were largely triggered by concentrated funding sources and poor interest rate risk management at the institutions themselves, fear of contagion led to an anxious couple of months for depositors, investors and regulators.

Of greater concern for the industry has been the effects of rising interest rates on the cost of deposits and other funding (causing costs to rise) and the fair value of investments in fixed-rate securities (causing the value to decline). Loan delinquency rates in some loan categories have begun to inch up, albeit from very low levels, leading many banks to increase the funds set aside to cover future credit losses.

Higher interest rates when loans reprice means some borrowers may be challenged to make loan payments.

Funding Costs Rise One of the most noteworthy developments in banking over the past year has been an increase in funding costs. Deposits—typically the lowestcost liabilities—fell almost $1 trillion between

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April 2022 and April 2023, after a pandemic-led surge pushed them to an all-time high of $18 trillion in April 2022.

The most significant outflows have occurred at institutions with high levels of uninsured deposits. In turn, many banks have had to rely more on costlier wholesale funding—fed funds (overnight borrowing from other banks), brokered deposits, Federal Reserve facilities and Federal Home Loan Bank borrowings, for example—to meet loan demand. Rising interest rates have increased funding costs, regardless of type.

Another potential source of liquidity—the sale of investment securities held as assets—is problematic because the increase in interest rates has lowered their value; selling these assets would turn unrealized losses into realized ones.

Examiners are closely monitoring supervised banking organizations with significant underwater securities holdings and other interest rate risk exposures, conducting targeted exams as needed. Exams have been focused on deposit trends, the diversity of funding sources, the current value of investment securities and the adequacy of contingent funding plans.

Commercial Real Estate Concerns Examiners are also paying close attention to banks with significant commercial real estate (CRE) portfolios. Concerns about credit quality typically rise when economic conditions are uncertain and interest rates are rising, but this cycle has the additional twist of a secular decline in demand for office space related to the rise in remote work. If this dip

in demand leads to a downturn in property values, CRE mortgage holders may find it much harder to refinance maturing loans. Furthermore, as interest rates increase, capitalization rates tend to increase as investors expect a higher rate of return. Many properties may be unable to produce the desired rate of return, limiting investment in commercial real estate.

Since 2006, the Federal Reserve has increased its monitoring of CRE loan performance and has established expectations for expanded risk management practices for banks that are heavily concentrated in CRE. In June 2022, the Fed expanded exam procedures for banks with significant CRE concentration risk. In addition to focusing on banks’ financial condition, capital planning and risk management, examiners are taking a close look at construction and land development activities, since construction lending typically accounts for a large share of losses when CRE markets deteriorate. Other loans to businesses— called commercial and industrial loans—are also under scrutiny as examiners assess the effects of rising interest rates on their performance.

Cybersecurity and Crypto-Related Risks As noted in previous supervision reports, regulators are paying close attention to cybersecurity risks.

Vulnerabilities noted in exams are being addressed, and examiners are testing banks’ preparedness for ransomware attacks and other security breaches.

Upheaval in crypto markets in late 2022 and early 2023 led to extreme deposit runoffs at banks that service the crypto industry: Silvergate Bank, an $11 billion bank with close ties to the industry, voluntarily liquidated in early 2023; and cryptorelated business exposure was partially responsible for the failure of Signature Bank around the same time. In early August, the Federal Reserve released additional information about a new supervision program for banks that engage in “novel activities” related to crypto-assets and other fintech-related lines of business.

What’s Ahead As we look ahead to the remainder of 2023, it is likely that bank funding costs will remain elevated.

Recent data from the Federal Reserve’s Senior Loan Officer Opinion Survey also point to ongoing tightening in credit markets, and we’re seeing rising delinquencies on consumer loans. These data point to the need for continued vigilance by bankers and bank supervisors and highlight the importance of ensuring adequate access to contingency funding lines. Despite some positive market signals, there are still significant headwinds ahead.

Note: 1. The semiannual article covers banking conditions, as well as regulatory and supervisory developments for the institutions under the Fed’s supervisory umbrella.

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

November-December 2023 •

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WELCOME

Understanding Your

Energy Contract By: Jamie Polend, Energy Consultant

As a consumer, it is important to understand the terms and conditions included (or not included) in your energy supply contract and how they may affect your bottom line.

Here are a few important questions to consider when looking at an energy contract:

Q: What are the components included in the contracted rate? Are they all fixed? Are they variable? What is the difference?

A: Knowing what is included in your “fixed” or “all in” rate is essential to understanding your energy bill.

Some suppliers may present attractive pricing, but the rates could exclude unknown or uncertain fees that are required for service. Instead of seeing these costs in your initial contracted rate, they may be deferred until they are realized, and then subsequently passed through and reflected on your invoice. These pricing adjustments are often the result of fluid energy cost components, such as capacity, transmission, and possible future regulatory changes.

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• November-December 2023

Although a fixed price option is often the best opportunity for budget certainty, recognizing what can trigger a price increase will allow for a proper understanding of these costs so that unknown fees do not become detrimental to your bottom line. If choosing a variable rate plan, your price for electricity or natural gas supply will fluctuate month to month. These products work best for active, sophisticated buyers who consistently monitor the energy market or during times of falling prices Q: A common way “fixed” prices increase is through a “regulatory change” or a “change in law” clause in the contract. When are these applicable and when can they occur?

A: While this language has historically referred to future changes in laws, or a regulation impacting the supply cost to consumers, some suppliers are revising or expanding their application of this contract language. Typically, the broader the language of the contract, the less “fixed” a price tends to be.

Change in law clauses have been interpreted to include, but not limited to, any change in governing laws, regulatory changes, market rules, load profiles, independent system operator (ISO) rules and protocols, how a utility or ISO

calculates usage, or changes in the interpretation and application of certain rules. When suppliers invoke or enact these clauses, any change, including changes in tariff, rate class, procedure, or process, including federal changes to infrastructure, transmission, and overall grid performance, that alters the supplier’s cost, can also affect the price you pay. However, a change in law clause could also benefit you if it decreases a cost component or if your load profile changes significantly in respect to lowering your capacity or transmission obligation tags if there is bilateral language in the agreement.

Q: What are capacity, transmission, and distribution charges, and how are they handled during the term of the agreement?

A: Capacity charges help guarantee that there will always be enough energy on the grid to service all energy consumers. The fee is calculated based on the amount of energy used during select peak load times, which are based on the previous year’s peak load days. Transmission charges account for moving power from the generation source to your local distribution company, usually your electric utility. Budgets for new energy infrastructure and upgrades are often baked into your transmission charge. Distribution charges account for moving power

from your local distribution company to your business and can change on an annual basis depending on any infrastructure changes that occur.

Q: Will you receive supplier consolidated billing, utility consolidated billing, or dual billing?

A: With supplier consolidated billing, you will receive one bill from your supplier which will include your energy supply costs, as well as your utility charges, such as local distribution charges. Utility consolidated billing is the reverse process of supplier consolidated billing; instead of paying the supplier directly, you pay the utility, and the utility in turn pays the supplier for the supply portion of the bill. Dual billing is offered to those who prefer separate bills from both the supplier and utility.

APPI Energy can educate you on how to avoid surprises and unexpected costs within your energy supply contracts. Our team is committed to providing data-driven procurement solutions and expert recommendations.

For more information, or to receive a complimentary assessment contact us at info@appienergy.com or call 800-520-6685 Sources: Constellation, Direct Energy Business

Data-Driven Strategy for Today’s Banker With increasing competition for deposits and market volatility, banks and thrifts are looking for ways to better analyze branch footprints and untapped markets. In addition to the most recent release of Summary of Deposit data by the FDIC, our tools allow for a quick, yet comprehensive analysis of vital competitor data.

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Branch Map

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Branch Market Overlap Analysis Application

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Pre-built Excel Templates for Branch Market Analysis

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U.S. Bank Branch Data Feeds

spglobal.com/IL-Summary-of-Deposits

November-December 2023 •

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Illinois Deposits Fall at Lower Level than the National Rate

by Rica Dela Cruz and Syed Muhammad Ghaznavi, Market Intelligence

Illinois' share of total US deposits ticked up slightly during a period in which the industry saw some overall contraction in the key piece of funding.

Illinois banks and thrifts held 3.86% of the nation's deposits as of June 30, up from 3.84% in the year-ago period, according to annual Summary of Deposits data from the Federal Deposit Insurance Corp. During that time span, Illinois did see a drop in total deposits, but the drop was lower than the national rate.

As of June 30, total deposits in Illinois fell 4.3% year over year to $667.06 billion, while the entire US banking industry's deposits contracted 4.8%, marking $871.60 billion of outflows, according to the Summary of Deposits data. The drop — for both the US and Illinois — represents the first contraction of deposits on an annual basis since the data set was created in 1994.

Over the last year, banks have increasingly needed to compete for deposits as interest rates have been on the rise and customers have more yield-producing options.

Top 4 Banks Despite the changes, the four banks with the most deposits in Illinois remained the same from the prior year.

JPMorgan Chase & Co. was the top bank by deposits in Illinois, with $127.08 billion in deposits, down 8.7% on a year-over-year basis. In the state, JPMorgan's deposit market share fell 92 basis points to 19.1%, and the company reduced its branches by 13 to 281.

Bank of Montreal, the parent company of Chicago-based BMO Harris Bank NA, ranked second as it recorded $94.60 billion in deposits in Illinois, up from $85.14 billion a year ago. The bank's deposit market share rose 197 basis points to 14.2%, and its branch count was unchanged at 183.

At No. 3, Bank of America Corp. logged a 16.6% decrease in deposits to $50.78 billion, with a 112-basispoint drop in its market share to 7.6%.

Illinois deposit market share for banks and thrifts, 2023 (%)

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Rosemont, Ill.-based Wintrust Financial Corp. nabbed the fourth spot with $41.61 billion in deposits, an increase of 3.1% from the previous year. The company's market share ticked up 45 basis points to 6.2%.

Morton, Ill.-based Hometown Community Bancorp Inc. nabbed the No. 18 spot as its deposits climbed 9.1% to $4.81 billion. On June 9, the company completed its acquisition of in-state peer Marine Bancorp Inc.

On Wintrust's second-quarter earnings call, Vice Chairman and COO David Dykstra touted the company's "great position" in the Chicago market and market share in Illinois.

Among the top 25 banks by deposits in Illinois, HBT Financial Inc. posted the largest percentage increase in deposits at 13.5% to $4.06 billion. The Bloomington, Ill.based company closed its acquisition of in-state peer Town and Country Financial Corp. on Feb. 1.

"If someone wants to do business with a larger bank that's located in Illinois, we're sort of the go-to bank. ... So we think we're uniquely positioned to take advantage of this, offer good products, give good service and cement ... the customer relationship," the executive said.

The top four banks by deposits in Illinois alone had 47.1% of the deposit market share in the state. Meanwhile, the market share of the remaining banks in the top 25 banks was 35.3%.

Other Banks in theTop 25 Chicago-based Byline Bancorp Inc., which completed its merger with in-state peer Inland Bancorp Inc. on June 30, was part of the top 25 at No. 15. Byline Bancorp's Illinois deposits rose 9.1% to $5.85 billion.

Chicago-based Northern Trust Corp. booked the largest percentage decline in deposits among the top 25 at 30.4% to $26.78 billion. This brought the company's market share down by 151 basis points to 4.0%.

Wells Fargo & Co. reported the second-largest decrease among the top 25 at 28.2% to $7.64 billion, pushing its market share down by 38 basis points to 1.2%.

Some of the other Illinois-based banks that made it to the top 25 are First Busey Corp., headquartered in Champaign; Midland States Bancorp Inc., headquartered in Effingham; and Old Second Bancorp Inc., headquartered in Aurora.

Top 25 banks and thrifts by deposits in Illinois

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

November-December 2023 •

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EVENT HIGHLIGHTS Women in Banking September 13 – 14 Crowne Plaza Springfield

The IBA was thrilled to host the 23rd Annual Women in Banking Conference in Springfield. This prestigious event recognized the outstanding accomplishments of women in the banking industry. Esteemed professionals from various industries delivered insightful presentations on

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management, leadership, industry trends, and personal growth to over 140 banking professionals throughout the state. One highlight was the panel discussion, Negotiating for Yourself, moderated by Tess Fyalka and panelist Jan Schramm, Debbie Thompson, Springfield Mayor Misty Buscher, and Desiree Logsdon. We invite bankers from your institution to join us at this inclusive Conference!

EVENT HIGHLIGHTS Fall Golf Outing September 25 Bloomington Country Club A beautiful fall day was the backdrop for the IBA's Fall Golf Outing, where more than 60 players and staff members took advantage of the beautiful Bloomington Country Club course. A great chance to network with

peers, vendors, and IBA staff, this event put a cap on the golf season. Thanks to our sponsors and everyone who participated! We look forward to seeing you on the first tee at the 2024 Fall Golf Outing. Plan on attending next year — we are returning to the Bloomington Country Club next September 2024!

November-December 2023 •

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EVENT HIGHLIGHTS Advocacy in Washington D.C September 18 – 20

After a pandemic pause, the Illinois Bankers hosted bankers from throughout the state during our annual Washington D.C. visit. The IBA’s Government Relations and Legal teams led discussions with influential Illinois members of Congress and with regulators including the FDIC, OCC, FHFA, and CFPB. Our grassroots bankers talked to regulators about the Community Reinvestment Act, Section 1071 small biz

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• November-December 2023

loan reporting, and examination concerns. They urged members of Congress to sponsor the ACRE Act, which helps community banks compete with farm credit and credit unions.

Bankers also asked Congress to support cannabis banking deregulation and legislation to raise the loan threshold for compliance with the small biz loan reporting rule.

The IBA is extremely grateful to the bankers who advocated for our industry. Special thanks to our event sponsors: the Federal Home Loan Bank of Chicago, Citigroup, and the American Bankers Association!

BankTech October 5 Oak Brook

Bankers from Illinois descended on the Doubletree Hotel in Oak Brook Illinois for the annual BankTech Conference.

What a program as the IBA welcomed 119 professionals to the event. With a focus on AI and automation, this event was emcee'd by Eric Geiger, Chief Technology Officer of the Federal Home Loan Bank of Chicago. We had 10 innovators present on security, risk, automation, and growth. A special thank you to our co-sponsoring state banking associations: the Indiana Bankers, Michigan Bankers, and Ohio Bankers League. A big thanks to the bankers, innovators and sponsors who attended and supported this conference.

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... The Illinois Bankers Insurance Services proposal surpassed our expectations with extraordinary savings and better insurance coverage. The time to receive a quote was minimal, and the cost savings more than covered our annual dues ...

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

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

November-December 2023 •

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WELCOME NEW BANK MEMBER IBA Welcomes Casey State Bank!

The Illinois Bankers is pleased to welcome Casey State Bank as its newest member! Located in the midst of a rich oil field, Casey was a “boomtown” around the turn of the 20th century.

Among the effects of the oil boom on the area were an influx of money and the development of a number of banks.

In 1880, Clayborn Fuqua was operating one of those banks on a balcony at the back of a retail store building at No. 1 South Central Avenue. It was known as the Bank of Casey, C. Fuqua & Sons, Bankers, and would eventually become Casey State Bank.

In 1885, Doit Young became the cashier of the Bank of Casey.

When Clayborn Fuqua died in 1900, Mr. Young, along with Chas. F. Johnson, R.A. (Dick) Young and Eli Bower, started the Merchants and Traders bank to succeed the Bank of Casey.

Late in 1905, Doit Young and Chas. Johnson, who together had purchased the interests of R.A. Young and Eli Bower, decided to convert their private bank into a national bank. On January 12, 1906, National Charter No. 8043 was issued to The Casey National Bank. In 1940, The Casey National Bank bought the assets and business of the First National Bank in Casey.

In 1968, S.W. “Stan” Grotenhuis purchased The Casey National Bank, and his family continues to operate the bank today. In October 1978, the bank moved into its present quarters at 305-307 North Central Avenue. A Certificate of Conversion was issued on August 2, 2000, approving the conversion of The Casey National Bank to Casey State Bank.

Today, with the area’s economic emphasis focused on manufacturing, construction and agriculture, Casey State Bank serves its customers from its main facility in Casey and from locations in Lawrenceville, Martinsville, Robinson, Marshall, and Mattoon. Welcome to the IBA!

NEW ASSOCIATE MEMBERS Engage fi 5550 W Executive Dr Ste 540 Tampa, FL 33609-1001 Website: https://engagefi.com Contact: Fowler, Jake jake.fowler@engagefi.com Facebook: www.facebook.com/engagefiConsultants X: twitter.com/engage_fi_ LinkedIn: www.linkedin.com/company/engage-fi With over 1,500 successful projects completed, the team at

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• November-December 2023

Engage fi is a blend of consultants, educators, integrators and advocates. We are laser-focused on guiding financial institutions through our proven process and enabling them to make informed, timely decisions on vendor relationships so they can change at the speed of the consumer.

FintechOS 12E 49th Street Floor 11 New York, NY 1001 Website: https://fintechos.com Contact: Jim Griffis, Sales Director jim.griffis@fintechos.com, (856) 449-2441 Facebook: www.facebook.com/fintechos X: twitter.com/fintech_os LinkedIn: www.linkedin.com/company/fintechos FintechOS is the leader in fintech enablement, with a mission to make fintech innovation available to every company. The FintechOS platform simplifies and accelerates the launch and servicing of financial products, helping businesses recognize value 5 to 10 times sooner than with other approaches. A global employer, FintechOS’ customers and partners include the world’s best brands, including Groupe Société Générale, Admiral Group, Oney, eMag, Deloitte, EY, and PWC.

SimpliCapital 20 Warncke Road Wilton, CT 06897 Website: https://simplicapital.ai Contact: Rakesh Sahay, Co-Founder & COO, rakesh@simplicapital.ai, (203) 210-7813 LinkedIn: www.linkedin.com/company/simplicapital SimpliCapital revolutionizes cash flow management with its powerful AI-driven SaaS product. By leveraging our platform, companies can enhance their cash availability by a minimum of 20%, significantly reducing the need for borrowings and unlocking substantial savings. Our product is a subscription SaaS platform with an embedded AI engine that accelerates invoice collections & recommends optimal supplier payments with an integrated digital payment platform to maximize cash flow efficiency.

Lawler Brown Law Firm PO Box 1148 Marion, IL 62959-7648 Website: https://lblf.com Contact: Adam Lawler, alawler@lblf.com Facebook: www.facebook.com/lawlerbrownlawfirm X: https://twitter.com/lawlerbrownlaw LinkedIn: www.linkedin.com/company/3154889 Lawler Brown Law Firm takes pride in its professional yet personalized approach, which considers the individual needs and goals of our clients. They deliver quality legal representation in a timely manner in a wide variety of cases.

At Lawler Brown Law Firm we strive to give our clients the attention, service, and representation they deserve.

November-December 2023 •

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ON THE MOVE First Busey Corporation Busey Bank announces that Amy Randolph has been promoted to Chief Operating Officer of First Busey Corporation. She joined Busey in 2008 and has 28 years of financial and leadership experience.

Randolph oversees various areas at Busey and its subsidiaries, including human resources, marketing, corporate communications, the overall Busey experience, consumer & digital banking, executive administration, as well as all technology and business services & systems. Additionally, Randolph serves as Chairperson and oversees FirsTech, the company’s payment processing subsidiary.

Home State Bank

Ryan Farrell, newly named President of Home State Bank, effective Jan. 1; Chris Morrow, chairman of the board; and Steve Slack, Chief Executive Officer. (Photo provided by Home State Bank)

Crystal Lake-based Home State Bank is announcing the appointment of Ryan P. Farrell as its new President. Farrell, who will begin

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his new role Jan. 1, has been a prominent attorney and highly regarded member of the community for many years. Bank officials say the move strategically positions Home State Bank for stability and growth for the next 20 years. In conjunction with this move, Christopher Morrow, chairman of the board, named Steven L. Slack as his vice chairman of the board, and Slack will remain the CEO while Home State transitions to its new leadership.

Morrow, whose family has owned Home State for over 85 years, expressed great enthusiasm for Farrell’s appointment, stating, “We are thrilled to welcome Ryan as our new president. He embodies our bank’s commitment to integrity, community involvement, and our steadfast focus on delivering customer-centric service.” Farrell brings a wealth of experience and expertise to Home State. He has served on its Board of Directors for the past five years. Among the various boards he’s served on are: Crystal Lake School District 47 Board of Education, chair of the Crystal Lake Chamber of Commerce, Leadership of Greater McHenry County, and Big Brothers Big Sisters of McHenry County, on which he currently serves.

Farrell grew up in Crystal Lake and attended the University of Illinois in Urbana-Champaign for his undergraduate degree, receiving his Bachelor of Science in accountancy in 2000. From there, he attended Loyola University and received his law degree in 2005. Ryan and his wife Amy, a schoolteacher, are raising their two boys in Lakewood.

Home State Bank has retail banking locations in Crystal Lake, Woodstock, McHenry and Lake in the Hills.

• November-December 2023

American Community Bank and Trust American Community Bank and Trust is pleased to welcome Steven M. Davis as Executive Vice President, Commercial Banking – Division Head. A veteran commercial banking executive, Steve has over two decades of experience in the Chicagoland market. He specializes in serving small to midsize privately held businesses in the manufacturing and distribution sector. “Steve will be a great addition as we continue to grow and expand throughout Chicago and surrounding areas. He brings the leadership necessary to develop a new west suburban commercial lending team and will make a significant contribution to the bank’s long-term strategic growth plan,” states Andy Hartlieb, CEO.

Itasca Bank & Trust Co. James R. Mensching, President of Itasca Bank & Trust Co. recently announced the promotion of six officers.

Mark Stelter has been promoted to Vice President, Senior Lender, and Director of Community Association Lending. He joined

the Bank in 2001 and has been in the banking industry for almost 40 years. As a life-long resident of DuPage County, Stelter graduated from Western Illinois University with a B.S. in Law Enforcement Administration and obtained his MBA from Benedictine University.

Stelter resides in Itasca, IL with his family.

John Mueller was recently promoted to Vice President and Senior Lender. He has been with Itasca Bank and Trust Co. since 2011. He began his career in the banking industry in 2002 and has been a lender for nearly 20 years.

Mueller graduated from Monmouth College with a B. A. in Business Administration, Management & Economics, and an MBA from North Central College. Mueller grew up in Momence, IL and now resides in Woodridge, IL with his family.

John J. Hunt has been promoted to Executive Vice President.

He joined the Bank in November 2011 and has been in the banking industry for over three decades. Hunt is also a member of the Bank’s Senior Management Team. He graduated from Marquette University with a B.S. in Finance and the Wisconsin Graduate School of Banking. He resides in Libertyville, IL with his family.

Claribel Veslino has been promoted to the position of Assistant Vice President, Operations and Customer Service Manager. She joined Itasca Bank & Trust Co. in June 2022, with over twenty years of management experience in the banking industry. Veslino’s strong focus on providing outstanding customer service has proven invaluable.

Francesco Sorrentino has been promoted to Assistant Vice President, Community Association and Cash Management Officer. Sorrentino joined the Bank in 2015 and served in Customer Service management roles prior to joining the loan department where he most recently served as Commercial Banking & HOA Relationship Officer. Over the course of the past year, he has become the loan department’s primary resource in assisting the Bank’s commercial clients with their cash management needs while learning the specialized skill of homeowner association lending.

Roger Peters has been promoted to Trust Officer in the Bank’s Trust & Estate Fiduciary Services Department. He joined the Bank in 2017 and served in the Customer

Service Department for two years before joining the Trust Department in 2019 as Trust Administrator.

Peters has extensive experience in the banking industry and recently completed a comprehensive trust program at the Cannon Financial Institute’s Trust School at the University of Notre Dame.

Midwest Independent Bancshares, Inc. Midwest Independent Bancshares, Inc. (MIB, Inc.) is pleased to welcome Adam Wyrick as their new VP/Compliance and Risk Management Officer. Adam started with MIB, Inc. in October 2023. Wyrick has over 20 years of experience in the finance industry.

He began his professional career with the Missouri Department of Transportation, working as a compliance auditor. In 2011, he moved to Central Bancompany as a commercial credit analyst and worked there until moving to Central Trust Company, A Division of The Central Trust Bank, as a Compliance Officer in 2017. Wyrick earned his bachelor's degree in accounting from Southwest Missouri State University (now Missouri State University). In 2018, he obtained his Certified Fiduciary & Investment Risk Specialist (CFIRS) designation from Cannon Financial Institute. He is active in the local/ surrounding communities as a board member of the Jefferson City Area Crimestoppers and has been a MSHSAA certified basketball official since 2007.

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ON THE MOVE Midwest Independent BankersBank Midwest Independent BankersBank (MIB) is pleased to welcome John Turner as their SVP/Chief Operations Officer. John began employment with MIB in October 2023. His professional life began in 1987 as a bank examiner with the State of Illinois. Over the next 20 years Turner served in examination, audit or risk management roles within the State of Illinois, and the Federal Reserve Bank of Chicago.

Turner was then employed close to fifteen years with a bankers’ bank where he was responsible for managing the core deposit banking system, all payment-related services including wire transfers, ACH, remote deposit capture and check imaging, as well as overnight investments and borrowings, new accounts, and onboarding services for respondent bank customers.

He successfully managed multiple customer platform migrations and systems conversions.

Kyle Baxis is a Senior Systems Administrator in the IT Department, and began with MIB in July 2023.

He comes to MIB with six years of IT experience involving help desk, networking equipment, infrastructure, and phone systems.

His most recent employment was with EquipmentShare as an Information Technology Lead and at Club Carwash where he worked on IT work-streams for new stores and acquisitions. Kyle has an associate degree in networking systems technology from State Technical College in Linn, MO.

Turner earned his bachelor’s degree in business administration with an emphasis in economics from Xavier University in Cincinnati, Ohio, and his master’s in business administration from Texas A&M University in Corpus Christi, Texas.

He currently has the following professional certifications: Certified Internal Auditor (CIA), Certified Information Systems Auditor (CISA) and National Check Professional (NCP).

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• November-December 2023

Diane Kempker was promoted to Operations Officer in August, adding the Cash Management area under her responsibility.

She joined MIB as a Safekeeping Specialist in September 2012.

In 2016, Diane was promoted to Safekeeping Team Lead. In September 2022, Diane took the role of Operations Manager over Safekeeping, New Accounts/ Mergers, CDs, Collateral and Account Analysis. Diane has over 30 years experience in banking, specifically in the Operations area.

She is attending the Missouri Bankers Association School of Bank Management with an expected graduation date in 2024.

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

SPECIAL RECOGNITION 40 Under 40 Joel Macholan, 38 Executive Vice President and Treasurer, Wintrust Financial of Silicone Valley Bank and Signature Bank in New York. It was, and had been, his job to position the bank’s balance sheet for the changes in interest rates that sank those banks.

Wintrust Financial’ s Joel Macholan was recently recognized

by Crain’s Chicago Business with induction into its 2023 class of 40 Under 40.

For Macholan, a Peoria native whose father worked his whole career at Caterpillar, Wintrust filled his need as a corporate auditor for a calling beyond counting beans when he joined the bank in 2010 as a senior financial analyst. “I was sold on, ‘Hey, we’re a bank trying to establish something for this community. …

We’re going to make decisions here, we’re going to be agile and we’re going to grow because there’s nobody else dedicated to that model right now,”Macholan says. “And that’s how it panned out.”

In 2023, Macholan was promoted to treasurer of Wintrust, Chicago’s fourth-largest bank by deposits and largest locally headquartered business lender, as the banking world was reeling from the sudden failures

After five years, he was chosen by Chief Financial Officer Dave Stoehr to lead financial planning and analysis for the bank—a forward-looking role that took advantage of Macholan’s financial chops and also tapped the

productive mind of a young analyst unafraid to voice his thoughts and suggestions, Ormseth says.

Adding to Macholan’s appeal, Ormseth says, are people skills not commonly associated with accountants. “People like working for him. It’s not a fear thing. They’re just wanting not to disappoint him, which is the highest compliment you can pay a manager.”

Macholan describes himself as a hard worker who’s “competitive as hell” but never was “overly ambitious.” “I never would have said I aspire to be a CFO,” he says. “I would have said I aspire to move up the ranks, kick butt, provide for my family and do the best I can.”

“It’s just been the blocking and tackling at every level.”

– Crain’s Chicago Business, Steve Daniels

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November-December 2023 •

37 17 33 40 25 2 19 Back Cover

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SPECIAL RECOGNITION The IBA 50-Year Club The Illinois Bankers Association recognizes 7 Illinois bankers on their induction into the IBA’s 50-Year Club.

The 50-Year Club recognizes and celebrates bankers who have achieved 50-plus years in the industry! A 50-Year Club induction is a capstone event for a banker filled with rewarding experiences and achievements.

Metropolitan Bank and Trust Celebrates Three 50-Year Club Inductees

The Illinois Bankers Association recognizes Jerry L. Frump of Metropolitan Bank and Trust as an inductee into the prestigious 50-Year Club. Mr. Frump began his banking career in 1971, at the First National Bank in Rantoul, IL. He worked in the bookkeeping and teller departments before becoming VP & Cashier in 1974. In 1977, he joined First Arlington National Bank in Arlington Heights, IL as Vice President working in both commercial lending and overseeing operations. In 1981, he joined Heritage Bank in Bolingbrook as VP & Cashier and subsequently became President in 1986. He joined Bank of Shorewood as Executive Vice President & Cashier in 1988 and became President in 1990. In 2005, he joined Metropolitan Capital Bank & Trust in Chicago as one of the original organizers in charge of bank operations, which is where he is employed currently.

Jerry obtained his associate degree in accounting and business administration from Illinois Commercial College in Champaign in 1969. He currently resides in Aurora, IL with his wife Patty. He is an avid sports enthusiast and has officiated high school and college football and basketball for over 50 years.

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The Illinois Bankers Association recognizes Frank Novel of Metropolitan Bank and Trust as an inductee into the prestigious 50-Year Club. Mr. Novel began his banking career in August 1968 as an examiner with the FDIC in their Chicago Regional Office. He conducted examinations for the FDIC in Indiana and Illinois as well as specialty examinations elsewhere.

After leaving the FDIC in 1974, he joined Beverly Bank in Chicago as Assistant Vice President in their Commercial Lending Department.

From Beverly Bank, he moved to River Forest Bank as a Vice President in their Commercial Lending Department, and in 1977, he joined the State Bank of Lombard as Chief Lending Officer.

He went on to become President of the State Bank of Lombard in 1982.

After organizing the sale of the State Bank of Lombard to Edgemark Financial, the parent of Edgewood Bank, Mr. Novel joined that company as Executive Vice President and Chief Administrative Officer. While at Edgemark, he was instrumental in the formation of a de novo charter in Rosemont, the acquisition of the First National Bank of Lockport, and the acquisition of Merchandise National Bank in the Merchandise Mart. The five banks were operated under the Edgemark umbrella and Mr. Novel coordinated their activities.

After the successful sale of Edgemark to Old Kent in 1994, he led the acquisition of Security Bank of DuPage in Naperville by an investor group and was President of that entity and its parent company. In 2001, he took over as President of Pan American Bank until 2003 when he joined the Bridgeview Bank Group as Chief Operating Officer and assisted in their acquisition of Uptown National Bank.

From 2004 to date, Mr. Novel has been associated with the Metropolitan Capital Bank group of companies.

• November-December 2023

Mr. Novel is a graduate of Purdue University with a BS in Economics and holds a degree from the American Bankers Association Stonier Graduate School of Banking at Rutgers University.

Over the years, he has been on the board of various Chambers of Commerce, member of Rotary Clubs, member of the Union League and University Club, and various community enterprises as well as having been Village Treasurer for Winfield, IL. He also served a three-year term on the Chicago Federal Reserve Bank’s Community Depository Institutions Advisory Council (CDIAC).

The Illinois Bankers Association recognizes Richard (Dick) Keneman of Metropolitan Bank and Trust as an inductee into the prestigious 50-Year Club. Mr. Keneman began his banking career in August 1968 as an examiner with the Office of the Comptroller of Currency based in the Atlanta Georgia Regional Office.

He led examinations for the OCC in Atlanta and North Georgia before moving to Washington DC to oversee several banks based in New York, Illinois and Texas. After leaving the OCC in 1978, he returned to Atlanta and joined the National Bank of Georgia as Vice President in their Commercial Banking Department.

Keneman worked at NBG and successor banks until he moved to Chicago in 1990 to join Chicago’s Cole Taylor Bank as a Director, Chief Lending Officer and Chairman of the Bank’s Senior Loan Committee, where he managed the Commercial Real Estate and Middle Market Banking Divisions and developed and managed the Wealth Management Group.

Keneman served at Cole Taylor until he joined the formation group of Metropolitan Capital Bank. Keneman has been associated with Metropolitan Capital Bank since formation and serves as Director and Executive Vice

President of Metropolitan Capital’s banking unit focusing on growing the Bank’s book of commercial clients.

Keneman graduated from Florida State University in 1968 with a BS in Marketing and Finance. Over the years, he has served on the board of several charities and business groups.

Keneman is an avid golfer and serves on the Board of his Club’s Skokie Educational Foundation.

United Community Bank Celebrates Two 50-Year Club Inductees

community banks into the United Community Bank family. He would later form United Community Bancorp, Inc. to grow and add to the UCB family of banks. Today, UCB is a $3.5 billion bank operating seven bank brands with more than 100 bank and ATM locations in 34 communities.

Ms. Lane works at United Community Bank in Greenfield, Illinois. She started her career as a teller and is now a Proof Supervisor.

The IBA congratulates Bob Narmont and Terry Lane on this wonderful career achievement!

The Illinois Bankers Association recognizes Robert Narmont, Chairman of the Board of United Community Bank and Terry Lane, Proof Supervisor, as the newest inductees into the IBA’s 50-Year Club.

Hoyne Savings Celebrates Theresa Niechielski

Mr. Narmont started his career leading a local group of investors in the purchase of Farmer's State Bank with the goal of delivering the ultimate customer service while continuing to welcome other proven

Ms. Niechielski began her career with Prospect Federal Savings Bank (now

The Illinois Bankers Association recognizes Theresa Niechcielski of Hoyne Savings Bank as their newest inductee into the IBA’s 50-Year Club.

To bring meaningful transformation to a community you need to be part of the community. Know the people. Understand their needs. Create a shared vision.

And deliver capital, development capacity and trusted partnerships. Over the span of 30 years, we’ve delivered more than $9.3 billion in community impact. And our commitment to creating healthy communities has never wavered.

Hoyne Savings Bank) on August 23, 1973, in the Escrow Department. She was then assigned to the Collections Department, rising to the position of Manager, Loan Servicing Department.

Congratulations Theresa on this wonderful accomplishment!

United Community Bank/ Liberty Bank Celebrates Pat Kimbro

The Illinois Bankers Association recognizes Patricia Kimbro of United Community Bank/Liberty Bank as their newest inductee into the IBA’s 50-Year Club.

Ms. Kimbro began her career in 1971 at the Godfrey State Bank and then moved to Wedge Bank for four years. She then spent 25 years at First National Bank which ultimately became US Bank. Her subsequent 17 years have been spent at United Community Bank/Liberty Bank.

Congratulations Patricia!

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November-December 2023 •

• 33 •

RETIREMENTS IBA’s Marcia Stratton to Retire in December

How long have you been at the IBA? 23½ years

There are many parts to making the Illinois Bankers the preeminent organization that it is. Some focus on advocacy, some legal services, some education, and some focus on delivering products and services to our members. But there is one area without which all of our efforts would struggle – our Finance Department. Working tirelessly behind the scenes, Marcia Stratton, Director of MIS and Finance has provided the glue that holds it all together.

Marcia’s roots began west of Springfield, IL, on a farm outside the small rural town of Virginia, IL, with a population of 1,600. Following graduation from Virginia High School, she attended and graduated from Purdue University, where she earned a Bachelor of Science degree in Industrial Management with a minor in Computer Science and Accounting. After five years postgraduation, her career path led her to achieve her CPA license.

Her early career started with Cannell, Zumbahlen & Eyth, where she wrote accounting programs. Her next career jump was to Kerber, Eck & Braeckel (KEB), and Eck, Schafer & Punke, where she created and provided financial statements for many small business clients. During her time with KEB, she met her future husband, Dave, at a Jaycees event. They enjoyed their time with the Jaycees and giving back to the community. During their 37 years of marriage, they welcomed two children, Ryan, and Erin.

As her children became actively engaged in sports and school activities, she sought a new career path to free up her time during the tumultuous tax season. That led her to work in two new industries - Robert's Foods (wholesale food distributor) and Kerasotes Theatres. After a couple of years, she came across an ad for a new position in the Springfield market and was intrigued by it, so she applied.

This position was at the Illinois Bankers Association. She's proud to have called it her lifelong career since July 2000!

After retirement, she looks forward to spending time with her two granddaughters, family and traveling to new destinations!

The IBA staff has come to rely on Marcia for their financial support and help when we have “technology issues.” Marcia will also be working on her career as a karaoke singer. So, if you ever hear “Cecelia” at a karaoke event, give her a listen! Marcia, from all of us at the IBA, enjoy your well-deserved retirement and stay in touch!

Why did you decide to join the IBA team?

After a year with Kerasotes, I was told that they were going to move their accounting functions to Chicago. There was no such thing as remote work back then. I started looking for a new position in the paper and came upon an ad that a company was moving their accounting functions to Springfield from Chicago. I thought “How ironic would this be?” The IBA job was meant for me.

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• November-December 2023

What is your happiest IBA experience?

I thoroughly enjoy attending and staffing The ONE Conference each March. I also enjoy participating in Karaoke at the evening event and listening to all the bankers trying their hand at singing.

What is the most satisfying achievement of your career or what are you most proud of ?

I have been able to control Mark Bennett (IBA's EVP and CFO)!

LOL

😄

What are you looking forward to in retirement?

I am looking forward to traveling to the rest of the lower 48 states and I have 16 to go. Additionally, I will be working on many craft projects. I also want to clean out the clutter and unused items from my home.

Honestly – will you miss us?

I will miss the people at the IBA and at the events. I will not miss the deadlines.

What is the most fun IBA event that you have been a part of and why?

This may not be the most fun event, but it is the one that I learned the most about myself. During the Lobby Day (Economic Investment Day) reception in the late 2000’s I felt extremely out of place until I walked up to a group of IBA staff talking with Mike Steelman and Dan Cortelyou (Farmers & Merchants State Bank of Bushnell). As I listened to their conversation, it was about their latest vacation spots. I was even able to contribute to the discussion. That conversation made me realize that bankers are regular people just like I am and enjoy doing the same kinds of things.

From that day on, I was never nervous about going up to a banker and introducing myself and asking them about their day or the event that we were attending.

What tips would you like to share as you enter retirement?

Don’t be afraid to make mistakes, just make sure that you learn from those mistakes and don’t make them again.

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• 35 •

IN MEMORY Donald Robert Lovett, known affectionately as Don, passed away peacefully on September 17, 2023, at the age of 89. Born on February 24, 1934, in Decatur County, Iowa, Don's remarkable life was characterized by his dedication to his community and a distinguished career in the banking industry.

Don's extensive work experience included serving as the President and Chairman of Dixon National Bank, where his exceptional leadership skills were recognized and respected. He also held the prestigious position of President of the Illinois Bankers Association and served a four-year term on the American Bankers Association board.

Beyond his professional endeavors, Don had a genuine passion for the betterment of his country, and he proudly served in the United States Army. Throughout his life, he actively participated in various organizations, holding influential positions such as Chairman of the Dixon Industrial Association for twentyfive years, Chairman of the Dixon Water Board for nineteen years, and Chairman of both the Dixon Chamber of Commerce and Dixon United Way. Don also had the distinction of being the first male member of Katherine Shaw Bethea Hospital, demonstrating his commitment to the local healthcare system. He was an ordained Presbyterian PCUSA Elder and an active Rotarian since 1960.

Don was a proud alumnus of Duke University, where he earned his B.A. in Economics. His academic achievements laid the foundation for his successful career and shaped his unwavering dedication to excellence.

The Dixon Chamber of Commerce awarded Don a lifetime achievement award in 1995, honoring his steadfast dedication to the citizens of the Dixon area. Don retired in 1995 and moved from Dixon, IL to Hendersonville, NC. Preceding Don in death were his parents, Gladys Ruth Howard and Henry Orison Lovett; his great-grandchildren, Nora

• 36 •

and William Richardson; his son Jeffrey Arthur Lovett; his daughter Joan Lovett Tripp; his brothers Howard and Richard Lovett; and his sister Mary Ann Rolfe.

His memory will be forever cherished by those he leaves behind.

Don's memory will forever be cherished by his beloved spouse of 67 years, Carol Pulver Lovett, who stood by his side through all his endeavors. They were married in Ridgewood, NJ on June 9, 1956. He is also survived by his son, Donald Howard Lovett and his wife, Veronica of Dixon, IL, his former daughter-in-law, Lisa Graszer, and son-inlaw, Tim Tripp of Hendersonville, NC. Don leaves behind a legacy of love to be carried on by his grandchildren: Heather Lovett and her husband Troy Lenhart of Muncie, IN, Sarah Lovett of Chandler, AZ, Emily Tripp Searcy and her husband John Mark of Chuckey, TN, Jeremy Tripp and his wife Caitlin of Houston, TX, Cameron Tripp of Madison, WI, Jordan Tripp and his wife Jennifer Santos of Denver, CO, Samantha Oeinck and her husband Jesse of Chicago, IL, Taylor Henson and her husband Ryan of Dixon, IL, Dawson Lovett of Dixon, IL, and Daniela Lovett, also of Dixon, IL. Don was also blessed with nine greatgrandchildren and is survived by his sister, Ruth McLuckie of Seattle, WA. A memorial service to honor Don's life will be held at a later date at the First Presbyterian Church in Hendersonville.

In lieu of flowers, memorial donations may be made to the Blue Ridge Humane Society at 14 Towne Place Drive, Suite 130, Hendersonville, NC 28792, or the Black Mountain Home for Children at 80 Lake Eden Road, Black Mountain, NC 28711. A private family burial will take place at Oakwood Cemetery, in Dixon, at a later date.

Mark Alan Rickels was born on May 25, 1957, in Cedar Rapids, Iowa. He was a devoted son, brother, husband, father, grandfather and friend. He grew up on a dairy farm near Martelle, Iowa, the eldest child of Rex and Phyllis Rickels, instilled

• November-December 2023

with the value of hard work that helped shape his life.

During his time in the U.S. Army from 1975-1977, Mark served his country with honor, working on Huey, Chinook, and Cobra helicopters while stationed at Camp Humphrey, South Korea. His dedication continued as he pursued education, earning a bachelor's degree in Agricultural Education from Iowa State University in 1981. Mark was not only a scholar but a leader, serving as the president of the Theta Xi fraternity, where he forged lifelong friendships.

Mark's professional journey was marked by excellence and integrity. He shared his knowledge and passion as an Agricultural Education teacher at Colo High School in Colo, Iowa, and later contributed significantly to the agricultural sector as a farm loan manager and underwriter, most recently as a Business Development Relationship Manager with Farmer Mac. Mark's work took him to various places, and he met countless individuals whom he cherished as close friends.

His faith in God was the cornerstone of his life. Mark was an active member of United Methodist Church (Princeton, Illinois), Community Bible Church (Mt. Vernon, Iowa), Harvest E-Free Church (Story City, Iowa) where he served as deacon, and most recently Mountain Top Church (Vestavia Hills, Alabama). His faith guided him in his roles within the Jaycees, Lions Club, and Rotary, where he found joy in helping others.

Mark was a family man, deeply devoted to his wife Donna and their blended family. He was a loving father to his children, Evan, Thomas, and Mallory, and embraced Donna's children, AnnMarie (Scott), Noel (Ashley), Jacob, and Abby (Brad), as his own. His heart overflowed with love for his six grandchildren (Lauren, Cahaba, June, Eli, Noela Joy, Henri), who brought him immense joy and fulfillment.

Mark leaves behind a legacy of compassion, generosity, and unwavering faith.

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November-December 2023 •

• 37 •

CLASS OF 2025: NOW ACCEPTING REGISTRATIONS!

FUTURE LEADERS ALLIANCE

Transform talented employees, new or seasoned, by cultivating the next generation of bank leaders through the dynamic Future Leaders Alliance (FLA) program. This unique program builds employee confidence, creates a positive environment, and strengthens the organization’s performance. The FLA leadership framework contains an emphasis on personal and professional development, community service, and networking.

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Bank Profitability

• 38 •

• November-December 2023

Everything’s a Presentation • Trends in Bank Tech

INDUSTRY NEWS Washington Savings Bank Celebrates 140th Anniversary

Washinton Savings Bank recently celebrated its 140th anniversary at their office in Effingham, Illinois. In 1883, a group of business leaders collaborated, to establish an organization whose primary purpose was to help its members purchase homes. The first organizational meeting was held on August 27, 1883, in the German Base Ball Club and Entertaining Society Hall in Effingham.

The original name of the association was The Washington Loan and Building Association. The name was changed in 1956 to Washington Savings and Loans Association, and in 1992 the association changed its charter and became Washington Savings Bank. The association became a federally insured institution in 1958.

The association’s assets at the end of its first year of business totaled $4,703.65.

As of December 2022, the bank’s assets are in excess of $588 million.

At right, IBA’s very own Tim Robinson, Director of Bank Relations, was on hand to participate in the festivities and to present President and CEO David Doedtman with a certificate of recognition. Congratulations to Washington Savings Bank!

IBA Member Banks Adopt Name Changes

• The First National Bank of Sandoval has transitioned their name to Midwest National Bank effective October 2, 2023. This strategic decision reflects the banks continued growth, expansion, and commitment to providing exceptional financial services across the region.

• Allied First Bank SB has filed an application to change its name to Servbank SB. The bank was chartered in January 1994 and is located in Oswego, IL. • American Bank of Missouri has changed their name effective October 2023 to American Bank of Freedom.

They are located in Rochester, IL.

Wintrust Financial Receives Inaugural DEI Award from ABA Wintrust Financial Corporation was recently recognized at the ABA’s virtual 2023 DEI Summit, receiving the inaugural Outstanding Overall DEI Program Award.

This award recognizes the most outstanding DEI program. Wintrust Financial Corporation created the One Wintrust Diversity & Inclusion Roadmap, which was established to anchor a strategy for key pillars including workforce/ workplace, customers, communities, and strategic partnerships. A few highlights of Wintrust’s DEI program include its Annual

Executive Diversity Forum, its sponsorship and mentorship program “Paired to Win,” and its business resource groups.

The ABA DEI Awards honor and recognize ABA member banks for their internal-facing programs, initiatives and activities focused on improving diversity, equity and inclusion for their workforces.

Integrating DEI initiatives promotes awareness and mitigation of bias, helps employees feel safe, creates diverse teams, and helps the organization gain competitive advantages.

Longview Community Bank Completes Renovations Longview Community Bank, established January 1, 1872 recently completed several renovations. During these renovations, they unearthed many original bank fixtures.

Pictured at left: Kelly Cowan, Branch Manager; Sarah Volle, Vice President/Cashier; Tricia Aylesworth, Vice President; Bill Glaze, President; and Julie Winterbauer, Senior Vice President, Member Services (L-R). Highlighted in the picture with Tricia Aylesworth is a section of the original teller cage trim with the Cashier plaque.

November-December 2023 •

• 39 •

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NEWS AND NOTES Linda Koch to Retire (again!) in December

Linda Koch, devoted employee of the Illinois Bankers will be retiring December 2023. Linda is best known in her longtime role as President and Chief Executive Officer of the IBA from March 2001 - July 2020. Easing out of this role, Linda has served the IBA over the past few years as Member/Business Relations Manager serving banks in Northern Illinois.

Linda leaves a lasting legacy at the IBA and throughout the banking industry across the country. The Linda J. Koch Scholarship will serve as a powerful reminder of Linda’s contribution to the banking industry. Linda, the IBA staff and membership are deeply grateful for your years of service and hope that you enjoy your well-deserved retirement…you will be missed!

Two Illinois Bankers pass the AAP Examination John De Hoyos and Jeemol Smith, both with Midwest Independent BankersBank, recently passed the AAP (Accredited ACH Professional) Examination. The AAP accreditation requires a significant time commitment involving extensive study to be able to thoroughly understand ACH operations, rules and regulations, products, and services.

Nationwide there are only 4,200 AAPs who have earned and maintain this accreditation. ACH is currently the highest-value noncash payment method in the U.S., accounting for over 70 percent of payments as compared to check, credit, and debit cards; customers look to MIB for guidance and expertise with ACH.

Two Illinois Bankers Receive Graduate School of Banking-UW Scholarships The 2023 Graduate School of Banking Bank Advisory Board Scholarship has been awarded to Jessica J. Cheever. Jessica currently serves as Senior Vice President – Compliance and Loan Operations of Iroquois Federal Savings & Loan Association – Watseka, IL. She has been with Iroquois Federal since July of 2010, starting as an Assistant Mortgage Underwriter. Over the past 13 years, Jessica has vastly expanded her role within the organization and now leads Iroquois Federal’s Loan Operations, Loan Servicing, Mortgage Processing, and Loan Documentation teams. She also manages lending compliance for Iroquois Federal.

Jessica’s favorite part about her current role is the challenge of implementing the continuous changes that the banking industry throws our way. She also believes one of the most important parts of her role is developing members of her teams to build future leaders for the organization.

Like so many others in the industry, Jessica started her banking career in high school as a part-time teller at her local community bank in Mt. Pulaski, IL. Cheever then earned her bachelor’s degree from the University of Illinois – Urbana Champaign, where she studied Agri-Business, Farm and Financial Management with an emphasis in Finance.

She then worked as a Loan Officer for two years prior to joining Iroquois Federal.

Jessica is a Certified Regulatory Compliance Manager (CRCM) and completed the Illinois Bankers Association – Future Leaders Alliance program in 2022. Jessica enjoys spending time with her husband and three sons, usually at some type of sporting event. Jessica is thankful to Iroquois Federal and the GSB Bank Advisory Board for the opportunity to continue to expand her knowledge of the industry by attending Graduate School of Banking – UW. She believes that the program, especially the intersession projects, will be extremely valuable as she continues her career in banking. Her favorite part of the first year in Madison was building relationships with other women in banking.

The 2023 Graduate School of Banking Scholarship has been awarded to Angela Villegas. Angela started her banking career in 1993 with American National Bank as a teller. She then worked at First Chicago and Bank One as a Personal Banker.

Moving to Elmhurst, Illinois in 2006, Angela joined Suburban Bank & Trust (now Elmhurst Bank), quickly earning promotions to Assistant Branch Manager and then Branch Manager.

In 2016, Angela came to Lakeside Bank as Vice President and Branch Manager and opened Lakeside’s first suburban branch. The Lakeside Elmhurst branch has been hugely successful, leading to additional Lakeside suburban branches in Oakbrook Terrace and Park Ridge.

Recognizing Angela’s depth of experience and people skills, Lakeside promoted her to Vice President, Retail Liaison, responsible for supporting all bank branches, especially as they coordinate with bank internal Operations.

Angela is also a valuable resource for both Lakesiders and bank customers, answering questions and quickly resolving issues.

In addition to her many Lakeside responsibilities, Angela serves on the Board of Directors for the Elmhurst Chamber of Commerce & Industry Board and is a member of the Marketing Committee. Angela has also been involved with the Kiwanis Club of Elmhurst and the DuPage PADS homeless shelter for more than a decade.

In addition to her banking knowledge, Angela knows the area. She grew up in Elmhurst, Illinois and was educated there.

Angela graduated from IC Catholic Prep, has an Associates Degree from the College of DuPage, and majored in Business Administration at Lewis University.

Angela and her husband Tony live in Elmhurst and are the parents of two adult children.

November-December 2023 •

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EDUCATION CALENDAR

Scan the code to learn more > Or visit my.illinois.bank/ Education-Events/Upcoming-Programs

SEMINARS, CONFERENCES & FORUMS

DECEMBER 2023 1 1 12-13

Technology Forum Bank Counsel Conference Internal Audit School

January 2024 10- Feb 1

Understanding Bank Performance (Wed. & Thurs.)

25

Essentials of Banking, Part 1

FEBRUARY 2024 7/9 Hot Topics in Compliance 14 CEO Forum 15 Essentials of Banking, Part 2 21-22 Retail Banking Leadership Series,

Parts 1-2

22 Fundamentals of Commercial Lending

MARCH 2024 7-8 12/13 14 14

• 42 •

The ONE Conference Touring the ACH Rules Updates Education and Trainers Forum Retail Lending Series, Part 1

19-20

Retail Banking Leadership Series,

Parts 3-4

21-22 Sales Excellence Bootcamp 26-27 BSA Fundamentals Bootcamp 27 Breaking into Banking 201 28 Essentials of Banking, Part 3

APRIL 2024 4 10 10-11 16-17

18 25

Senior Retail Forum Retail Lending Series, Part 2 IRA Training Essentials of Commercial Credit Analysis Series, Parts 1-2 FDIC Directors’ College Essentials of Banking, Part 4

JULY 2024 10 25

CEO Forum Senior Retail Forum

AUGUST 2024 1 Bank Directors Symposium 13/15 Security Officer Workshop 14/15 Call Report Preparation 21-22 Ag Banking Conference 27/28 Performing Your ACH Audit 29 Education and Trainers Forum

SEPTEMBER 2024 23-27 Regulatory Compliance Series

MAY 2024

OCTOBER 2024

10 14-15

Essentials of Commercial Credit

Analysis Series, Parts 3-4

3 Education and Trainers Forum 9-10 IRA Training 16 CEO Forum 17-18 Women in Banking Conference 21-25 Commercial Lending School 29-30 BSA/AML Yearend Wrap-Up 29 Senior Retail Forum

15 21-22 23

Compliance Conference

Human Resources Forum Advanced BSA Academy Retail Lending Series, Part 3

JUNE 2024 20 24-27

• November-December 2023

Retail Lending Series, Part 4 Annual Convention

November-December 2023 •

• 43 •

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