Illinois Banker Magazine | September - October 2023

The Official Publication of the Illinois Bankers Association illinois.bank

September-October 2023

Annual Convention Highlights

BRIDGING INDUSTRY FORCES ALSO IN THIS ISSUE:

u Loan Review Best Practices u One-on-One Coaching u Develop a Sidecar Core Strategy for Tech Innovation

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

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WELCOME September-October 2023 • Vol. 109 / No. 5 • illinois.bank

TABLE OF CONTENTS 10

31 COLUMNS

21 12

5

Messages from the C-Suite

6

Compliance Corner

8

Washington Update

16 Event Highlights 22 Welcome New Members 22 Ad Index 24 On the Move 26 Retirements and Special Recognition 28 In Memory

FEATURES 10 Loan Review Best Practices 12 Elevate Your Banking Sales Performance with One-on-One Coaching 14 US lenders' funded mortgages in Illinois drop YOY in 2022 amid broader decline 18 Bridging Industry Forces: Convention Highlights 21 The Importance of Developing a Sidecar Core Strategy for Technology Innovation

31 Industry News 33 IBA On the Road 34 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.

September-October 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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• September-October 2023

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: 217-789-9400 • 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 217-789-9340 www.illinois.bank With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 3201 W. White Oaks Drive, Ste. 400, Springfield, IL 62704. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. © Copyright 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 Summer and early fall are seasons filled with bar-b-ques and tailgates. Thinking of those food filled festivities got me thinking about our advocacy efforts. Where is the tie? I recently attended a gathering of the Central States group and have been chewing on a quote that I heard: It is important that we always try to have a “seat at the table, because if you are not at the table you end up on the menu.”

Thomas Chamberlain

Iroquois Federal Savings & Loan Association

As bankers, we face ongoing waves of regulatory and policy initiatives that complicate not only our lives, but more importantly, the lives of our customers. But we can blunt these initiatives by rightfully taking our seat at the table with our elected officials and prudential regulators. We have the opportunity from this seat to express our positions; and these positions can truly have an impact in making our industry stronger, not weaker. If our voices are not heard, our industry becomes toast.

Thankfully, there are ways that we can take our rightful seat at the table. By participating in the IBA’s Washington Fly-In and Economic Investment Day, we have direct access to the regulators and lawmakers that impact our lives. By actively responding to the IBA’s calls to action when critical legislation or regulations are considered does have a positive impact on our industry. But there is more that we can do. Consider contributing to the Illinois Bankers PAC. A robust PAC provides the IBA the opportunity to gain a seat at the table and when we do, we can express the concerns and opportunities in our industry.

I invite you to join me in proactively shaping our future in both Washington, D.C. and in Springfield. Be certain to bring multiple members of your staff to join in the process. Increasing our numbers will increase our influence – both in physical and monetary terms. These will keep the banking industry “at the table and off the menu!”

President & CEO, Illinois Bankers Association You are invited!

Rave reviews are rolling in from the 2023 IBA Annual Convention! The speakers, networking, stadium tour, speakeasy tour, food, and fun were all fantastic. Bankers from Illinois and Ohio had a great time.

The only thing that would have made it better would have been to have more of you and others from your bank join us.

Randy Hultgren

Illinois Bankers Association

Now is the perfect time to put next year’s IBA Annual Convention on your calendar.

Join us at the beautiful Omni Resort at Amelia Island, Florida, on June 2427, 2024. The fantastic list of speakers,

entertainment, and amazing beaches should not be missed.

Don’t wait until next year to connect with other great bankers in Illinois. Attend Midwest Bank Leaders in Chicago on November 2, 2023, that is being planned by our emcee Mick O’Rourke and is tailored by a banker for bankers. We are excited that Wintrust President and CEO, Tim Crane, has agreed to speak and give his perspective on banking and the economy in Chicago. Also, make sure your key legal people register for our premier Bank Counsel Conference at The Drake Hotel on December 1, 2023. Know that for each of these events, you are invited!

September-October 2023 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION

Regarding the new journal requirements for notary publics, must the person whose signature is being notarized sign the notary’s journal, or is this optional?

ANSWER

These signatures are optional. The individual whose signature is being notarized may sign the notary’s journal, but it is not required, and notaries are prohibited from including electronic signatures in their journals.

A law enacted in 2021 substantially rewrote the Illinois Notary Public Act, including new journal requirements for notaries and standards for electronic notarizations, among other changes. The amendments became effective on June 5, 2023, when the Illinois Secretary of State adopted administrative rules implementing the law’s changes.

The rules set forth eight items of information that must be recorded in each journal entry for a notarial act, such as the name of the principal and each credible witness

relied on to verify their identity, the title or a description of the notarized document, the date of the notarization, and more.

The rules also specify optional information that may be included with each entry: “the signature of the individual for whom the notarial act is performed and any additional information about a specific transaction that might assist the notary public to recall the transaction.”

Additionally, the Illinois Notary Public Act and administrative rules prohibit notaries from including in their journals an “electronic signature of the person for whom an electronic notarial act was performed or any witnesses.”

QUESTION

Is the Illinois Addendum to Residential Mortgages a required document? This document asks the borrower whether they are a party to a civil union and whether any other parties may claim any interest in the property that will secure repayment of the loan. Is it required if the application is for joint credit and both borrowers are married and applying together?

What about a married person applying for individual credit?

ANSWER

An Illinois Addendum to Residential Mortgages is not required by Illinois law, but we believe using such a form is helpful for identifying individuals who may have relevant property rights and interests because they are a member of a civil union. Also, it is possible that secondary market purchasers may require this form as a condition of purchasing the mortgage loan, and we recommend reviewing any applicable secondary market requirements before discontinuing use of this form.

We believe your bank should determine whether a borrower has entered into a civil union, although there are no specific disclosures that you must provide to members of civil unions. Because Illinois law offers members of a civil union the same protections and benefits as married couples, you should provide members of a civil union

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the same documents and disclosures that you provide to married spouses. For example, a loan secured by a borrower’s home may be subject to homestead rights of another individual if your borrower has entered into a civil union with that individual. This is true whether the borrower is in a same-sex or opposite-sex marriage or civil union.

For borrowers who are married, asking about their civil union status is unnecessary. However, we believe your bank still may want the borrower to notify your bank about other parties’ interests in the property that will secure the loan. And, as mentioned above, secondary market purchasers may require a completed Illinois Addendum to Residential Mortgages regardless of the borrower’s marital status.

QUESTION

Our customer had multiple forged checks drawn on their business checking account after they left their checkbook out at home and their housekeeper stole it. Our customer reported the forgeries to us within our required time frame for reporting fraudulent items. Can we assert under Article 4 of the Illinois Uniform Commercial Code (UCC) that our customer was negligent in safeguarding the checks and therefore responsible for the fraud?

ANSWER

Whether you may hold your customer responsible for the fraud due to their negligence depends on the specific facts and circumstances of the theft and your bank’s check payment and fraud detection procedures. We recommend consulting and reviewing the facts with bank counsel before refusing to reimburse your customer.

The Illinois UCC does not require banks to reimburse a customer for a forged check if the customer’s “failure to exercise ordinary care” substantially contributed to the forgery (provided that your bank exercised ordinary care and acted in good faith in paying the check). The Illinois UCC leaves the decision as to whether a customer’s conduct substantially contributed to a forgery to a court or jury to decide on a case-by-case basis. Additionally, the question of whether a bank exercised ordinary care depends on whether the bank observed “reasonable

commercial standards” when paying the check, which is also a question of fact left to a court or jury to decide.

We note that the UCC Official Commentary provides examples of customer negligence, one of which involves a business that keeps blank checks and a rubber signature stamp in an unlocked desk drawer. While this situation is somewhat similar to the one you described, your customer did not leave a rubber signature stamp with the unattended checkbook — a potentially significant difference from the example provided in the UCC Official Commentary.

Accordingly, we cannot predict whether a court would determine that your customer or your bank was negligent in this scenario, and we recommend consulting with bank counsel before refusing to reimburse your customer.

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.

September-October 2023 •

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WASHINGTON UPDATE

Advocating for ACRE: How Congress Can Help Rural America

By Rob Nichols, President and CEO, American Bankers Association Farmers and ranchers today face numerous challenges: from the skyrocketing costs of materials to supply chain disruptions to difficulties purchasing rural land—all while interest rates are rising. As a result, many are relying more on credit than ever before. For those who are young, beginning, or socially disadvantaged farmers, these obstacles can seem insurmountable—in fact, 69% of young farmers say that access to capital is a top challenge to beginning a career in farming.

Removing the taxation of interest will bring down the cost of making these loans, making them more affordable for farmers, ranchers, and rural homeowners. In fact, ABA estimates that this important legislation could expand access to affordable agricultural and home loans to more than 4,000 rural communities across the U.S. and deliver approximately $1.4 billion in annual interest expense savings to farmers and ranchers in 2023—savings that can make a crucial difference to the nation’s producers.

Fortunately, there is a simple solution that can help make credit more accessible to these agricultural borrowers: the bipartisan ACRE Act, a bill that ABA is aggressively championing in Congress.

This simple, commonsense solution does not require the creation of new government payments or programs— quite the opposite. It provides an avenue for increasing competition and generating growth in rural communities efficiently and organically. It also levels the playing field between all agricultural lenders, which will result in more choices and lower rates for rural borrowers.

Formerly known as ECORA, this bill would amend the IRS code to level the playing field for banks—especially community banks—by allowing lenders to exclude from gross income any interest they receive on loans that are secured by farm real estate or aquaculture facilities. The bill also allows for the exclusion of interest on certain home mortgage loans in rural communities.

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ABA has been a vocal proponent of this bill, and we were pleased to see such a significant response from lawmakers in this Congress. The ACRE Act already has 20 bipartisan cosponsors in the House and has been introduced in the Senate by Sens.

• September-October 2023

Jerry Moran (R-Kan.) and Angus King (I-Maine).

Lawmakers now have an opportunity to help sustain and grow rural America by sending this bill to President Biden’s desk. That’s why ABA is urging bankers and their customers to get in touch with their members of Congress and urge them to pass the bill. Bankers can contact their lawmakers easily through ABA’s grassroots platform, SecureAmericanOpportunity.com.

The association has also prepared a toolkit, accessible at aba.com/ ACREtoolkit, that provides an issue backgrounder, talking points and key points that bankers can use when explaining to lawmakers why this law is needed.

Our nation needs a thriving agricultural sector. With your help, we can help remove one of the roadblocks standing in the way of the nation’s farmers and ranchers.

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

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These benefits and more — all with your ABA membership.

aba.com/closerlook

September-October 2023 •

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WELCOME

Loan Review Best Practices: Key to Combatting Credit Risk in Stressful Times

By David Ruffin, Principal, IntelliCredit

Uncertainty seems to be the only constant on the economic horizon these days.

Despite benign risk metrics across the country’s credit portfolios, there is an almost industry-wide sentiment that credit stress looms ahead. According to the Risk Management Association (RMA) Annual Community Bank Survey, 84% of community bankers indicated that credit risk was a top concern.

One thing we do know is that effective and efficient loan reviews can help you understand your portfolio and identify potential risk exposures. And — more importantly — risk that’s already emerging.

It’s this early detection that helps institutions minimize losses. Also encouraging is that automated technology is making it possible to achieve these goals with amazing agility.

Now is the time for community banks to move from a sluggish, decades-old loan review process to an approach that will help you proactively identify potential credit weaknesses, gain deep knowledge about the subsegments of your portfolio, learn where the vulnerabilities exist, and act to mitigate risk at the earliest opportunity.

It's time to consider credit review approaches that facilitate an expansive range of best practices like the ones outlined below.

1. Trust your reviews to professionals with deep credit experience — not just junior CPAs. Your reviewers should be seasoned experts skilled in the qualitative and quantitative axioms of credit, with handson experience in lending and risk management. Because • 10 •

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their experience will drive better reviews and deliverables, it’s a good idea to ask for bios of people assigned to your institution.

2. Confirm your review includes paralegal professionals to conduct separate documentation reviews.

With growing evidence of degradation in back-shop support, it is essential that your loan reviews include specialists with technical expertise in regulatory/legal compliance, lending policy adherence, policies, collateral conveyances, servicing rules, etc. — working in tandem with seasoned credit professionals.

3. Insist on smart, informed sampling.

Relying solely on random samples and reviewing only the largest credits is insufficient today. To uncover vulnerabilities in specific segments of your portfolio, rely on a selection

process that helps you choose very informed samples indicating possible emerging risk.

4. Segregate and differentiate exceptions in documentation, credits and policy.

These exception types all have diverse characteristics, and they need to be quantified separately in order to correct the various deviations effectively.

5. Quantify both pre- and cleared exceptions.

In the best of times, many loan reviews show almost no bottom-line degradation in loan quality for the portfolio as a whole. But on close examination, you may find significant numbers of technical and credit exceptions indicating that the quality of your lending process itself may need to be tweaked.

6. Understand your own bank’s DNA. In this complex economic environment, it is imperative for institutions to analyze their own idiosyncratic loan data. Arm your loan review team with the ability to automatically drill down into your portfolio and easily examine trends and borrower types — to inform risk gradings, assess industry and concentration risk, etc.

Seasoned reviewers will be incredibly valuable in this area.

7. Observe pricing based on risk grades, collateral valuations and loan vintages.

Common risk characteristics are shared by loans originating around the same time and credits that tend to migrate as a group. Isolating and analyzing those can answer the important question, “Are you being paid for the risk you’re taking?”

8. Pair loan reviews with companion stress testing.

Lately, regulators are encouraging stress tests as a way to learn where risk may be embedded. Companioning the tests with loan reviews is a productive way to gain this knowledge. Start at the portfolio level and do loan-level tests where indicated.

9. Transparently report and clear exceptions in real time.

Benefit from using fintech efficiency to remove huge amounts of time, team meetings and staff intrusions from the traditional approach to reviewing loans. Using an online loan review solution, teams can see exception activities and clearances as they happen.

10. Ensure that reviewers interpret risk grade parameters according to your institution’s definitions.

Measures used to qualify credits in the “pass” risk-grade category are specific to your institution. Reviewers should use only this touchstone to interpret pass grade requirements for any credit — without interjecting personal biases.

11. Comply with workout plan requirements prescribed by interagency regulators.

Workout plans are typically designed to rehabilitate a troubled credit or to maximize the repayment collected.

Regulators now require institutions to examine these plans independently as a standard loan review procedure that reflects a healthy degree of objectivity.

12. Deliver comprehensive management reports and appropriate high-level board reports with public/peer data.

Management should receive prompt and thorough loan review reports and board members should be provided high-level reports with appropriate, but less detailed, information. Public data or analyses of your institution’s performance as compared to peers should accompany reporting.

13. Conduct loan reviews as a highly collaborative and consultative exercise — counter to “just another audit.”

An effective loan review is not an internal audit experience. It’s an advisory process, and this approach is extremely important to its ultimate success. Substantive dialogue among participants with differences of opinion is key to favorable outcomes for the institution.

14. Take advantage of a technology platform to automate every possible aspect of the loan review process.

Best practices call for the efficiency that comes with automating the loan review process to the maximum extent possible, without sacrificing substance or quality.

Today technology drives the race against loan risk, making early detection of vulnerabilities faster, easier and more complete.

In Summary Loan reviews that adhere to industry best practices are critical to an institution’s risk-management strategy and should be regarded as such. It’s a one-two punch: (1) deeply qualified reviewers and (2) automated technology that, when combined, deliver a more efficient, less intrusive loan review process that will help combat the looming credit stress ahead.

About the author: David Ruffin is Principal of IntelliCredit, a division of QwickRate. He has extensive experience in the financial industry including a long and pronounced emphasis on credit risk in a variety of roles that range from bank lender and senior credit officer to the co-founder of IntelliCredit and its technology that is revolutionizing a decades-old loan review process. For more information, visit intellicredit.com or email info@intellicredit.com.

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WELCOME

Elevate Your Banking Sales Performance with One-on-One Coaching

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

In the quickly changing world of banking, staying ahead of the competition requires continuous improvement and honing of skills. While group training sessions have many benefits, there's no denying the transformative power of personalized one-on-one sales coaching from the business line manager. From 30 years of experience working with banks, we have found that tailored, one-on-one coaching can be the key to unlocking your team's full potential.

Advantages of One-on-One Sales Coaching Customized Learning Experience: One-on-one coaching allows for a highly personalized learning experience.

No two banking sales professionals are the same, and their strengths, weaknesses, and learning styles can vary widely. Coaches need to take the time to understand each individual's unique traits and tailor their coaching approach accordingly. This personalized attention leads to faster skill development and better retention. Then, the real work begins. Leaders should set a schedule of oneon-one coaching sessions, with an understanding of the sales process to be used. Identify the areas your banker is not achieving as they should, such as outreaches or getting appointments. Then begin to practice their approach with you so they will be more effective when the time comes with a real prospect.

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Targeted Skill Enhancement: Group training sessions often cover a wider range of topics, some of which may not be directly relevant to every team member. One-onone coaching enables a laser-focused approach, targeting the specific skills that need improvement. One-on onecoaching allows sales leaders to help refine prospecting techniques, perfect consultative selling, or enhance negotiation skills for the individual. There is irrefutable truth that when you break down an activity and focus on one specific area, be it golf or business development, improvements can be made and great things can happen.

Continual practice of that one area of focus can turn it into a habit and change behavior.

Immediate Feedback: One of the most significant advantages of one-on-one coaching is the instant feedback loop it establishes. As bankers work on their pre-call strategies, coaches can provide immediate feedback on their approach, helping them make necessary adjustments on the spot. This real-time guidance accelerates skill mastery and builds confidence. Leaders should consider posting coaching hours where they are available in office or on zoom for their people to bring live deals, pre or post call strategies and discuss next steps. This immediate and timely input can turn their next appointment from an average sales call into a strong consultative discussion uncovering what is really on the mind of the prospect.

Confidence Boost: Finding new clients and growing current banking relationships can be demanding, and confidence plays a crucial role in success. One-on-one coaching fosters a safe environment for salespeople to practice new techniques, role-play challenging situations, and receive constructive feedback. Certainly, recognition for things well done is part of one-on-one coaching. With increased confidence in their abilities, your team members will approach each interaction with clients more assuredly, leading to improved results. There is no doubt that clients prefer to work with bankers who are knowledgeable, assured and confident in their recommendations.

Accountability and Goal Setting: Accountability is essential for consistent growth for your bankers, even though the process may not be liked. One-on-one coaching allows coaches to work closely with their relationship managers to set actionable goals and track progress. Setting the expectations for specific standards to be met is critical not just for the individual but also for the team. Regular check-ins ensure that goals are met and challenges are addressed promptly. Why did the lender not reach their new business target? What got in the way? What can they do differently next time? Was it effort or execution problems?

This accountability-driven approach keeps the momentum going and empowers your team to strive for continuous improvement.

Adaptability to Change: The banking landscape is dynamic, with market trends, competition and customer preferences constantly evolving. One-on-one coaching equips your team to adapt quickly to these changes.

Coaches help individuals stay updated with the latest industry insights, competitor analysis, and market shifts, ensuring that the team remains agile and competitive.

RMs are also able to share what they are hearing from clients to help leaders understand the evolving nature of the marketplace of financial services. There has been a seismic shift in community banking space this year and one of the most important roles of the leader is to help their people recognize, adjust and leverage those changes.

The goal of growing and deepening relationships will not go away but the approach and the methodology might change.

Conclusion

In the realm of banking, leveraging every interaction can make a significant impact, and investing in one-on-one sales coaching is a strategic move that can yield substantial returns. Let us know if we can help your bank.

Learn more: anthonycoletraining.com/banking-sales-training

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September-October 2023 •

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US lenders' funded mortgages in Illinois drop YOY in 2022 amid broader decline

by Rica Dela Cruz and Syed Muhammad Ghaznavi, Market Intelligence

US lenders originated fewer mortgages in Illinois in 2022 compared to the prior year amid a broader drop in funded mortgage loans.

Mortgage originators funded 263,673 mortgage loans amounting to $71.62 billion in the state, compared to their funded 513,166 mortgage loans amounting to $133.75 billion in 2021, according to the Home Mortgage Disclosure Act data collected by S&P Global Market Intelligence.

The decline in funded mortgages was not exclusive to Illinois as the overall value of funded mortgage loans fell more than 40.6% year over year to $2.840 trillion in 2022.

Higher rates hammered home lending activity in 2022, and with the mortgage market staying challenged, some lenders are reducing staff and trimming their exposure.

The Illinois mortgage loan approval rate of lenders was 53.6%, down from 58.6% a year ago, and their unapproved applications totaled $53.05 billion, versus $86.26 billion in the previous year.

Illinois Home Mortgage Disclosure Act data overview

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Top mortgage originators in Illinois All but one of the top 20 mortgage originators in Illinois logged a year-over-year decline in funded mortgage loans in 2022.

Guaranteed Rate Inc. led the group with a market share of 7.12%. It reported $5.10 billion in funded mortgages in Illinois, a 55.0% drop from $11.33 billion in 2021, and its loan approval rate fell 12.2 percentage points to 55.9%.

JPMorgan Chase & Co. ranked second as it originated $4.13 billion in mortgages in Illinois, compared with $9.59 billion in the previous year. Rock Holdings Inc., the parent company of Rocket Cos. Inc., nabbed the No. 3 spot with $2.29 billion in funded mortgages, versus $5.88 billion a year ago.

The mortgage industry faced excess capacity and falling demand at the same time in 2022, Rocket CFO Brian Brown said on the company's fourth-quarter and full-year 2022 earnings call.

"We've seen players across the industry struggle to adjust to the volatile environment, facing liquidity issues, retrenching or exiting the industry altogether," Brown said.

UWM Holdings Corp.'s funded mortgages in Illinois fell 38.0% year over year to $2.14 billion in 2022.

During the year, UWM saw "the best mortgage companies separate even further from the rest of the mortgage companies remaining" amid higher interest rates, Chairman, President and CEO Mathew Ishbia said on the company's fourth-quarter and full-year 2022 earnings call.

Wells Fargo & Co. logged $1.39 billion in funded mortgages in the state, versus $3.73 billion a year ago. In January 2023, the company announced it will exit the correspondent lending business and plans to slash the size of its mortgage servicing portfolio to simplify its home lending segment.

Bank of Montreal was the only originator on the list that logged an increase in the value of funded mortgages year over year. The bank's funded loans in 2022 amounted to $963.2 million, compared with $918.9 million in the prior year, and its loan approval rate rose 1.7 percentage points to 47.2%.

Of the companies on the Top 20, three are based in Illinois: Guaranteed Rate; Wintrust Financial Corp., which originated $1.69 billion in mortgages in the state in 2022; and First Centennial Mortgage Corp., which reported $780.5 million in funded mortgages.

Top mortgage originators in Illinois, 2022

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.

September-October 2023 •

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EVENT HIGHLIGHTS 2023 Ag Banking Conference The IBA hosted the 2023 Ag Banking Conference at the Crowne Plaza, Springfield, Illinois on August 23 – 24. What an outstanding event! There were over 170 attendees, and they were treated to a wide variety of agricultural speakers and topics.

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• September-October 2023

From agriculture policy to the Ag lending outlook; the 2024 farm and income outlook to meteorological predictions, this event had something for everyone. And, of course, the ability to network with peers across the state created valuable connections that will serve all well into the future.

September-October 2023 •

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IBA’s Annual Convention June 21 – 24, 2023

BRIDGING INDUSTRY FORCES

O

ur 2023 Annual Convention was a terrific opportunity to connect with friends in Illinois and to make new friends from Ohio. This year, the IBA partnered with the Ohio Bankers League to deliver a terrific program at the Fairmont Hotel at Millenium Park in Chicago. Attendees and their guests were treated to outstanding speakers and breakout sessions, as well as a Chicago Prohibition Tour, a Chicago Stadium Tour, an Urban Adventure Cruise, and a session at the Art Institute of Chicago.

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• September-October 2023

While this year’s Convention was a wonderful experience, the Annual Convention for 2024 promises to be an even more memorable experience. Partnering with the Ohio Bankers League, the IBA will be hosting Illinois Bankers at the Omni Resorts, Amelia Island, Florida. This exciting opportunity will expand your professional connections and build new friendships.

The blended Convention will be packed with a lot of new programming and faces, and will continue to be the premiere event that you have come to expect.

2023 ANNUAL CONVENTION

2024

SAVE THE DATE:

June 24 – 27, 2024 Omni Resorts Amelia Island, Florida

September-October 2023 •

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• September-October 2023

The Importance of Developing a

Sidecar Core Strategy for Technology Innovation

by Jeff Ostheimer, Director, Fintech Advisory Services, Strategic Resource Management (SRM)

The technology that powers banking is rapidly changing. The industry has seen remarkable transformations over the past several years due to disruptions from the pandemic and changes in customer attitudes and behaviors.

As a result, banks are reevaluating their technology platforms to ensure the gradual enhancement and improvement of their current systems to better adapt to the evolving times.

Rather than waiting an extended period to turn to an alternative core with better APIs, banks can gradually migrate data over time. What once took years and was seen as disruptive could occur in as little as one weekend.

This approach opens a whole new realm of possibilities, allowing you to swiftly introduce new products and improve customer satisfaction while streamlining operations. Banks can operate with a greater competitive edge as they increase value faster in an ever-evolving market.

Traditionally, financial institutions have been hesitant to replace their core platforms. A recent survey (www. aba.com/news-research/analysis-guides/2022-coreplatforms-survey) found that three-quarters of CEOs aren't planning a change despite the need to further their digital transformation. While these executives have recognized the need for change, this is seen as a timely, expensive, and arduous endeavor. Banks looking to make this type of swap typically focus on getting better pricing terms instead of adding a significant expansion of services or product capabilities.

Legacy core providers often present challenges regarding support and service, particularly during conversions or upgrades. Banks looking for a seamless transition without disrupting their customers frequently opt for a core-agnostic approach, integrating alternative third-party solutions to bolt onto the core or run parallel systems.

While there are many options to consider, it comes down to developing a sound strategy with the right partners to recognize value in months rather than years. Furthermore, by partnering with middleware firms, banks can utilize reusable APIs for a solution that is easier to manage. This allows you to pursue a digital strategy that doesn't have to involve a lengthy core conversion process.

However, banks are now embracing the need for change and are investing in fintech to accelerate innovation and expansion. And they're making the connection through a sidecar core strategy. With this strategy, institutions turn to middleware firms to add niche products while leaving the underlying core platform in place – often by taking advantage of cloud-based offerings. Essentially, this is positioning a core-like solution next to the legacy core.

The power and necessity of collaboration is evident.

Through these partnerships and adopting the aforementioned strategies and solutions, banks will enhance their technological capabilities and accelerate their growth, revolutionizing how they serve their customers. 8

A sidecar core strategy can help you quickly adapt to market conditions and changes in customer attitudes.

Jeff Ostheimer, Director, Fintech Advisory Services, Strategic Resource Management (SRM), has 20 years of experience in helping financial institutions on their digital transformation journeys focused on core banking, digital banking platforms, and ancillary services.

September-October 2023 •

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WELCOME NEW BANK MEMBER

NEW ASSOCIATE MEMBERS Farmers National Company

Byron Bank 200 N. Walnut Street Byron, IL 61010-8803 Primary Contact: Scott Mincemayer, Chief Financial Officer

11516 Nicholas St., Ste. 100 Omaha, NE 68154-4409 Website: www.farmersnational.com Contact: Nick Westgerdes, nwestgerdes@farmersnational.com Facebook: www.facebook.com/ FarmersNationalCompany Twitter: twitter.com/FarmersNational LinkedIn: www.linkedin.com/ company/farmers-national-company Since 1929, Farmers National Company (FNC) has offered professional farm management, real estate sales and auction services. Over the years, they have expanded their service offerings to also include energy, forestry and lake management, as well as appraisals, insurance, hunting leases, and FNC Ag Stock. Today, FNC is 100 percent Employee Owned.

Farmers National Company is proud to continue its history of excellent service with every client served by the company’s employee owners and associates.

KeyState Renewables, LLC PO Box 50102 Henderson, NV 89016-0102 Website: www.key-state.com Contact: Tim Swiat, tswiat@key-state.com LinkedIn: www.linkedin.com/ company/the-keystate-companies

The KeyState Companies are based in Las Vegas, NV with offices in Wilmington, DE and Burlington, VT. For the past 32 years, KeyState has developed services and expertise to meet the growing needs of financial institutions. KeyState provides banks with innovative and independent services and expertise in risk management, investments, treasury, solar tax credits, regulatory compliance, and corporate governance.

Purple Wave Auction 825 Levee Dr Manhattan, KS 66502-5012 Website: www.purplewave.com Primary Contact: Glenda Wegener, glenda.wegener@purplewave.com Facebook: www.facebook.com/ purplewaveinc Twitter: twitter.com/purplewave LinkedIn: www.linkedin.com/ company/purple-wave-incSpecializing in equipment liquidation through no-reserve internet auctions, we provide the easiest and most straightforward way to buy and sell used equipment and vehicles.

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• September-October 2023

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9 2 27 25 Back Cover 13

September-October 2023 •

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ON THE MOVE Effingham, IL

MIDLAND STATES BANK

Midland States Bank announced that Ryan Lange has joined Midland Wealth Advisors as its Chief Investment Officer.

Midland Wealth Advisors is a registered investment advisor (RIA) operating under the Bank’s Wealth Management group.

In his new role, Lange is responsible for developing and executing investment strategies, managing portfolios, and providing guidance to individual, family, and institutional clients. He also will partner with Midland’s Investment Management team to grow the RIA business, and offer additional products and services.

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Lange has over 15 years of experience at previous large financial institutions where he specialized in optimizing portfolios and customizing investment strategies across asset types and client segments.

He received his Bachelor of Business Administration in Finance from the University of South Dakota and holds the Chartered Financial Analyst® (CFA®) and Chartered Alternative Investment Analyst (CAIA) designations.

Springfield, IL CARROLLTON BANK

• September-October 2023

Tom Hough, CEO of Carrollton Bank, has announced that Mark Vance has been

promoted to Regional President of the Springfield bank.

Vance joined Carrollton Bank in 2008 and has over 30 years of banking experience. He assumes the role of Dave Haney, who is retiring.

Vance started his banking career at Bank One in Springfield and later worked at JP Morgan Chase. He received his bachelor’s degree in business administration from the University of Missouri and his MBA from the University of Illinois.

Mattoon, IL

FIRST MID BANK & TRUST, N.A. First Mid Bank & Trust announces the appointment of Mandy Lewis as its new Executive Vice President (EVP), Chief Operations Officer. Lewis is making a transition from her previous role as EVP, Chief Deposit Services Officer within the organization.

Lewis has over 22 years of banking industry experience, with expertise in marketing, product knowledge, and deposit customer service. Lewis will oversee all operational functions, including deposits, loans, and facilities.

Lewis began her career with First Mid Bank & Trust, N. A. in 2001. She holds a Bachelor’s Degree in Marketing Communications from Eastern Illinois University and is a graduate of the ABA Bank Marketing and Management School.

Lewis serves several community organizations, currently sitting on the Eastern Illinois Business Advisory Board and the Southeastern Illinois Community Foundation Board.

September-October 2023 •

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RETIREMENTS & SPECIAL RECOGNITION Martin contributed 43 years of experience to Bank & Trust Company, and his achievements will not be forgotten. John has held leadership roles across a broad range of the company’s operations, from the teller line, branch management, senior lending officer, and executive vice president. John also served on several committees with the Illinois Bankers Association, including the Annual Conference Committee.

His banking career started in March of 1980 with the State Bank in Farmersville. Bank & Trust Company later purchased the State Bank on August 9, 1985. Along with the transition from State Bank to Bank & Trust Company, John transitioned over from a teller to an assistant manager, and later became branch manager.

In 1997, he was transferred to the Litchfield branch, and became the senior lending officer for Bank & Trust.

Dan Fleming, President & CEO and John Martin, Executive Vice President, Senior Agricultural Lender, Bank & Trust Company were joined by Julie Winterbauer, IBA Senior VP, Member Relations.

John Martin, Executive Vice President, Senior Agriculture Lender, and member of Senior Management for Bank & Trust Company has announced his retirement, effective September 1, 2023. Martin has served in his current role since 1997. Prior to that, he served for 26 years as the senior lending officer, where he oversaw loan operations and management.

Dave Kuhl Celebrates Milestone

Dave Kuhl, longtime banker in Illinois and contributor to the industry was recently recognized by the IBA with induction into its prestigious 50-Year Club. Dave began his career in banking in 1973 with the First National Bank of Rantoul. In 1979, Dave joined Busey bank where he enjoyed an impactful 28-year career and attained the position

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“Intelligent, accommodating, and personable,” are the words that Bank & Trust Company President, Dan Fleming used to describe John. Fleming said, “John knows everyone on a first name basis, and he’s well-known in the communities of Farmersville & Litchfield. He has made a positive impact and has created shoes that will be very hard to fill.”

John has been a mentor to many, and his influence and teambuilding efforts have made an undeniable impact on the future generations of the Bank. He wants his customers to know: “It’s been a pleasure to work with them. I’ve met a lot of unbelievably nice people, and the bank and I have been happy to help them achieve their goals.”

of Executive Vice President. He joined Freestar Bank in 2007 as the Chairman and CEO and subsequently moved to First Cloverleaf Bank Edwardsville becoming their President and CEO. Dave rounded out his banking career at Catlin Bank, serving as the President and CEO. Dave's illustrious banking career was also filled with many positions that gave back to the banking industry. He served as a member of the Board of Directors of the Federal Home Loan Bank of Chicago from 2000 – 2010. He served as a Board member and rose to Chairman of the Board of the Illinois Bankers Association.

He was also Chairman of the Board of the Illinois Bankers Business Services, the for-profit subsidiary of the Illinois Bankers Association. His positive impact in banking in Illinois and for banks in Illinois has created a tremendous legacy in this state. The IBA congratulates Dave on his illustrious career in banking, his induction to the IBA's 50-Year Club and on his well-deserved retirement!

• September-October 2023

Mercantile Bank, A United Community Bank, Celebrates 50-Year Club Inductee The Illinois Bankers Association recognizes F.R. “Randy” McFarland, Senior Vice President & Trust Officer at Mercantile Bank, A United Community Bank, as the newest inductee 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 nomination is a capstone event for a banker filled with rewarding experiences and achievements.

McFarland began his career in banking in 1972 with the Illinois State Bank in Quincy, Illinois. During his tenure, Illinois State Bank was acquired by Boatman’s Bank. Upon his departure in 1991, he was a Senior Vice President & Trust Officer.

In February 1991, he joined Mercantile Bank, A United Community Bank where he currently serves as Senior Vice President & Trust Officer. Congratulations on your banking milestone!

Wojtowicz and Rogers Graduate from Southwestern Graduate School of Banking Natalie Wojtowicz, Assistant Vice President, Operations and Roselle Branch Manager, and Matthew Rogers, Vice President and Technology Officer, both of Itasca Bank & Trust Co., recently graduated from the Southwestern (SW) Graduate School of Banking at Southern Methodist University in Dallas. The three-year executive program included training on bank management with a focus on financial analysis, leadership development, and strategic vision. The school is designed specifically for bank officers, including those in commercial and consumer lending, loan and operations officers, bank regulators, as well as marketing and management professionals.

The SW Graduate School of Banking at SMU prepares future leaders in the banking community for greater responsibilities with peer networking, team-building experiences, case studies, a tailored curriculum, and an exceptional student-faculty ratio.

Students spend two weeks over three summers on campus, which helps to cultivate professional alliances and friendships within the banking community.

Kestner Graduates from the Graduate School of Banking at Colorado Austin Kestner, Bank of Advance (Camp Point), was among 166 individuals who earned their prestigious diploma in banking from the Graduate School of Banking at Colorado on July 27, 2023.

Graduates receive their diploma after successfully completing two weeks of classroom training for three consecutive years, classes of which focus on 1) Financial management and strategy, 2) Innovation and engagement, 3) Leadership and culture and 4) Lending. The students also completed six intersession projects and ended their curriculum at GSBC with an extensive bank management simulation course.

September-October 2023 •

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IN MEMORY W. Rockwell (Rocky) Wirtz W. Rockwell (Rocky) Wirtz served as Chairman of the Chicago Blackhawks and President of Wirtz Corporation, where his role extended to a vast array of businesses from sports and entertainment to beverage distribution, real estate, and banking.

Rocky was just 2 years old when his grandfather, Arthur Wirtz, purchased the Chicago Blackhawks in 1954, growing up within the storied walls of the Chicago Stadium. As Chairman of the Chicago Blackhawks, Rocky was an active member of the National Hockey League’s Executive and Audit/Finance Committees, and he proudly oversaw the team's historic Stanley Cup championship victories in 2010, 2013, and 2015.

Rocky led the family's beverage business since 1980, and his strategic vision, commitment to investment, and time-honored focus on running a value-driven business helped the company expand throughout the U.S. In 2016, Rocky drove efforts to form a partnership with The Charmer Sunbelt Group, creating Breakthru Beverage Group where he served as Co-Chairman. Recognizing his many contributions to the beverage industry, the Wine and Spirits Wholesalers of America honored Rocky with a Lifetime Leadership Award in 2014.

Wirtz Realty developed properties in Illinois for decades, and the

company owns and manages over 20 commercial and residential properties along Chicago's lakefront and throughout its suburbs. Rocky also oversaw Wirtz family banking interests in Chicago and Florida as well their entertainment holdings, including the United Center, home of the Chicago Blackhawks and Chicago Bulls. Rocky was Co-Chairman of both the United Center Joint Venture and the Executive Committee of the United Center. Throughout the COVID-19 pandemic, Rocky and his partners transformed the building into a relief hub to support regional response efforts. The United Center has welcomed more than 65 million visitors since opening, hosts more than 200 events annually and is slated to play host to the 2024 Democratic National Convention.

Above all else, Rocky was most proud to lead his family's commitment to numerous civic and charitable organizations. His dedication to the Chicago Blackhawks Foundation and its mission to create a healthier, smarter, more secure world for families in and around Chicago was unwavering. The foundation has donated millions of dollars to organizations focused on youth development, education, housing, and health and wellness.

When seeking a new practice rink for the Blackhawks, Rocky considered the needs of the local community and invested $65 million to build

a community ice rink first, and a practice rink second. The facility offers numerous benefits to Chicago's youth who may not otherwise have the opportunity or resources to learn the sport of hockey. Since its 2017 opening, thousands of children and community residents have participated in programming at Fifth Third Arena Chicago Blackhawks Community Rink.

Rocky was a member of the Civic Committee of The Commercial Club of Chicago, Board Chair of The Field Museum and Trustee at Northwestern University, where he earned a Bachelor of Science in communications in 1975. At Northwestern, he established the Virginia Wadsworth Wirtz Endowment for Visiting Artists.

That program, named in honor of his grandmother, welcomes nationally acclaimed performers to work directly with students and staff at the Theatre and Interpretation Center. In 2014, the center was renamed the Virginia Wadsworth Wirtz Center for the Performing Arts in recognition of the family's financial gifts. In 2017, he endowed the W. Rockwell Wirtz Professorship in the School of Communication to attract top professors.

Rocky is survived by his wife Marilyn, and children Danny (Anne) Wirtz, Hillary Wirtz (Erin Quaglia), Kendall (Brendan) Murphy, and Elizabeth Queen (Joe Barley).

Rocky was also the proud grandfather of six grandchildren.

Merlin was the beloved husband of Donna Karlock for more than 65 years; loving father to Kendra and Kent Karlock; cherished grandfather to Meredith Smiley (husband, Clay) and Mallory Sanchez (husband, Alredo). He also was the proud greatgrandfather to Axel Sanchez and Scout, Whitney and Preston Smiley.

Founder of Municipal Trust and

Savings Bank, located in Bourbonnais and Momence, Merlin diligently worked as the bank’s chairman of the board for more than 40 years.

He will be remembered for his keen intelligence, humorous stories, innumerable acts of kindness, generosity to others and his mentorship of many. Always in a suit and ready to strike up a conversation,

Merlin Everett Karlock After a long battle with Alzheimer’s Disease, Merlin Everett Karlock, 92, passed away on August 16, 2023.

Merlin was born July 17, 1931, in Kankakee County and remained an active resident and promoter of the county throughout his life.

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• September-October 2023

he was a champion for respect, excellence and knowing customers by name – a precedent that continues at Municipal Bank. He frequently downplayed his success and could see possibilities not only in people, but in businesses and communities.

His early education was in a one-room schoolhouse in Pembroke Township, later receiving an agriculture degree from Florida Southern College in Lakeland, Florida.

Merlin proudly served his country in the U.S. Marine Corps.

In 1976, Merlin ran for a seat in the U.S. House of Representatives. He also served on the White House Rural Council under President George H.W.

Bush and was appointed to the Illinois State Banking Board by Governor George Ryan.

New opportunities and education excited Merlin. Some of his many businesses included a radio station, a propane gas company, grain elevators, the Bon Vivant Golf Course, housing developments, and Florida citrus groves. But first and throughout his life, Merlin was a farmer and cattleman like his beloved grandfather, Everett Madison. In the 1980s, Merlin owned the largest ranch in Indiana.

Kankakee Community College was built during Merlin's tenure as its first chairman of the board. He later became a member of the Illinois Community College Board and served

on the executive committee of the Illinois Board of Higher Education.

He was also a director of Governors State University, a trustee of the Illinois Universities Retirement System and a member of the Citizen Advisory Board for the University of Illinois.

He played croquet well, winning a national croquet title with his partner, Richard Reedy. Merlin owned thoroughbred racehorses and golf courses and made time to travel the world extensively. Over the years, Merlin and Donna donated land for parks throughout Kankakee County.

Together, they also donated land for the North Campus of Kankakee Community College in Bradley.

end, he enjoyed playing his guitar and singing late into the night. Richard attended the University of Illinois in Springfield and held a Bachelor of Science Degree in Political Studies and a Master’s Degree in Public Administration. Upon graduation, he pursued teaching and taught a memorable 6th grade in Creve Coeur and Morton.

In 1964, he was elected Tazewell County Auditor. He served two terms. From 1975 to 1979, he served in the Illinois House of Representatives. From 1983 to 1993, he served in the Illinois State Senate.

His legislative assignments were the Committees on Commerce and Economic Development, Executive Appointments-Veterans Affairs and Administration, Finance and Credit Regulations, Insurance Pensions and Licensed Activities, Local Government (vice-chair), Revenue (chairman), and Economic and Fiscal Commission (co-chair). He was a Democratic State Central Committeeman for the 18th District.

In 1993, he was appointed by then Governor Jim Edgar as Commissioner of Banks and Trust Companies for the State. He oversaw 662 state-chartered

banks and 46 foreign banking offices.

He was fortunate to have two careers; he was an Illinois politician, and in the “real world” he was a commercial and investment banker. He left politics for a consulting position with LaSalle Bank ABN AMRO in Chicago.

Richard and Jill traveled the world together, finally settling in Palm Desert, California, for the winters.

Richard was a member of Ironwood Country Club for 25 years.

Richard’s love was his family.

He was the proud father of Scott (Carmen) Luft, Mark (Lelonie) Luft, Julie (Derek) Guidotti and Darcy (Chris) Lawson. He was a grandfather to Matthew Luft, Andrew (Krista) Luft, Morgan (Zachary) Murtha, Elizabeth (Jeff) Kaeb, Michael (Sarah) Luft, Abby Dobrei, Gaby Peyton, and Garrett Lawson and a greatgrandfather to nine beautiful children.

He adored his grandchildren and found great love and joy in each of their babies. He also leaves behind his favorite cousin, Joanne (Luft) Miller and his friend and brother in his heart, Denny Sullivan. He was preceded in death by his beloved grandson, Marshall Lawson; his parents and his only brother, Thomas Lee Luft.

Richard Nelson Luft Richard Nelson Luft, 85, of Pekin passed away on August 18,2023.

Richard was born March 14, 1938, to Willis Richard and Beulah Frances (Jolly) Luft. He married Janice Thornton in 1963, and they had four children, Scott, Mark, Julie and Darcy. On April 1, 1991, he married Jill Massey of Alton. Richard and Jill shared a beach wedding in Key West, Florida; a tradition that was repeated by their granddaughter, Morgan, thirty years later.

His early life was spent in South Pekin, where his father worked as an engineer on the Chicago & Northwestern Railroad. His mother was a teacher in the Pekin School System. Richard was thought to be the youngest survivor of the 1938 South Pekin tornado. He attended Pekin Community High School (PCHS), where he played football and enjoyed acting in school plays.

Richard loved writing songs. With the help of Harold Kuhfuss and Dean McNaughton, both of Pekin, he tried to build a recording career. It was a fun but unsuccessful journey. Until the

September-October 2023 •

• 29 •

WELCOME

Travel with Tripp McRaffle $25 Tripp McRaffle is determined to travel the world as one of over 100,000+ financial industry employees excited about the chance to win a vacation voucher. Tripp believes that if every employee contributed $25, the Illinois Bankers PAC could have a multi-million dollar fund.

Enter to win a $2,500 Direct Travel vacation voucher towards a trip of your choice, complete with a travel agent to help you plan your visit to paradise—the raffle drawing will be held on November 30, 2023. PURCHASE YOUR CHANCE TODAY! SCAN THE CODE TO PURCHASE A TICKET ONLINE!

HELP US GROW THE PAC FUND!

Tripp and his friends need your help connecting with others in your organization.

Contact Tripp’s friends with the number of tickets you would like for your organization: Aimee Smith, asmith@illinois.bank Matt Imburgia, mimburgia@illinois.bank

$$25 225 5

A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official website (www.elections.il.gov) or for purchase from the State Board of Elections, Springfield, Illinois. All contributions to Illinois Bankers PAC are voluntary. You may refuse to contribute without reprisal. Contributions to Illinois Bankers PAC are not tax-deductible.

Illinois Bankers PAC

Name

Tripp McRaffle $2,500

Organization

Direct Travel Trip Voucher Drawing: November 30, 2023

Phone $25 per ticket

• 30 •

• September-October 2023

Submit a copy of this ticket with payment to: Illinois Bankers Association 3201 West White Oaks Drive, Suite 400, Springfield, IL 62704

INDUSTRY NEWS

1st National Bank of Waterloo Acquires The Village Bank

First Mid Bank & Trust Receives Lender of the Year Award

The First National Bank of Waterloo (FNBW) has acquired The Village Bank and celebrated with a ribbon cutting ceremony at its new St. Libory location. The ribbon cutting ceremony took place Friday, July 21, at 4 p.m.

The event was well attended by the FNBW and Village Bank teams who are excited about the successes the merger will bring.

First Mid Bank & Trust (First Mid) is proud to announce it has been selected as the Small Business Administration (SBA) Central/ Southern Illinois Community Lender of the Year. This award is presented to the community bank with the best overall performance record for lending to small businesses in Central and Southern Illinois throughout 2022.

This year marks the eighth time First Mid has received this award.

The St. Libory community is full of rich history and is a great place to expand business. The St. Libory Banking Center is located at 856 Sparta Street, off Route 15. The brick building features a historic turret clock that captures the traditional and wholesome Midwestern essence of St. Libory.

The three Village Bank locations in St. Libory, Marissa, and New Athens were all converted to The First National Bank of Waterloo on July 17.

“This award speaks volumes about our willingness to take care of our communities and small businesses are at the heart of that,” said John Barnett, Regional President and Community Lender specializing in SBA loans. “Our team is dedicated to helping business owners and entrepreneurs be successful by guiding

them through any challenges. Some banks aren’t interested in the energy and time it takes to be that business advocate, but it's a passion for us.”

Within the last year, the SBA also awarded First Mid Bank & Trust its Preferred Lender Program (PLP) status based on the bank’s years of experience. To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures.

The SBA preferred lender status gives First Mid the authority to make borrowing decisions on behalf of SBA, streamlining its commercial loan process by removing significant timing and documentation hurdles that can add weeks of closing time to a transaction. This gives borrowers the opportunity to achieve their funding goals sooner and more efficiently.

September-October 2023 •

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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 Program (FLA). 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. Bankers interested in registering for the 2025-2026 FLA class should visit illinois.bank/fla to learn more. Spots are limited.

14

MONTH LEADERSHIP PROGRAM

PROGRAM TOPICS

6

TWO DAY SESSIONS

12

INTERACTIVE TRAINING DAYS

• Accounting

• Economic Investment Day

• Lead for Success

• Asset Liability Management &

• Economic Update

• Leadership & Influence

• FHLB Overview and Public Policy Issues

• Management & Executive Coaching

• Bank Marketing

• Fintech

• Money Ball for Bankers

• Bank Simulation

• IBA Legal Staff Function

• Networking

• Collaboration Skills & Team Building

• Human Resources

• The Art and Science of ‘Peopling’ &

• Consumer Age

• IBA Engagement & Involvement

• Cybersecurity

• Importance of Advocacy

• Diversity, Equity, & Inclusion

• Investment, Bonds, & Portfolios

Bank Profitability

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• September-October 2023

Everything’s a Presentation • Trends in Bank Tech

IBA ON THE ROAD Union Federal Savings and Loan Association

Hoyne Savings Bank

Community Savings Bank

Craig Gustafson, President and CEO of Union Federal Savings & Loan Association, welcomed Erich Bloxdorf, IBA’s EVP & COO to Kewanee, Illinois to discuss the latest banking trends and IBA products and services.

Founded in 1890, Union Federal Continues to thrive in Kewanee.

The IBA’s Erich Bloxdorf, EVP & COO, visited Steve Rosenbaum, CEO of Hoyne Savings Bank, at their Worth location. Serving communities in the Chicago area since 1887, Hoyne Savings Bank has become an institution in the area. Steve shared personal insights into banking in modern times. Thanks for sharing your unique perspective, Steve!

The team of Linda Koch and Adam Walsh hit the road to visit with Dane Cleven, President & CEO of Community Savings Bank in Chicago. Linda and Adam enjoyed Dane’s view of the banking world and especially liked the great vault located in the office!

American Eagle Bank

Lisle Savings Bank

First State Bank and Trust

Barry Kreczmer, Co-Chairman and President of American Eagle Bank, welcomed Linda Koch to their main office in South Elgin. Barry shared industry insights with Linda and they also discussed the array of products and services that the IBA offers. Linda really enjoys visiting our members!

Litchfield National Bank / The First National Bank of Litchfield

Wondering what is happening in Litchfield? Julie Winterbauer, Senior Vice President of Member Relations can tell you! Julie visited with Alberta Fleming, Chairperson of the Board and Director of Audit, Litchfield National Bank and Ken Elmore, President and CEO, The First National Bank of Litchfield. So much fun visiting our members!

Linda Koch, Member/Business Relations Manager, is everywhere! Here Linda is pictured with Karlie Kreihbel, President & CEO of Lisle Savings Bank.

Another longstanding bank, Lisle was chartered in 1917!

Speaking of a frequent traveler, Julie Winterbauer, Senior Vice President of Member Relations, visited with Mike Atwood, President and CEO of the First State Bank, Monticello.

Bank and Trust Company

The Gerber State Bank

A retirement celebration?!? You bet we will be there!

Julie Winterbauer, Senior Vice President of Member Relations, represented the IBA and its members in wishing John Martin, Executive Vice President, a welldeserved retirement. Happy retirement, John!!

Does she ever stop? The IBA’s Julie Winterbauer was welcomed to The Gerber State Bank. Pictured with Julie is Tricia Nuppenau, Loan Officer/BSA Compliance Officer with the Bank. No doubt they were talking about the great compliance services that the IBA offers. Nice to visit with you, Tricia!

September-October 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

OCTOBER 2023

NOVEMBER 2023

DECEMBER 2023

3 5 5 11 11 11 12 12 17-19 20 23-27 24 25

1 1 1-2 2 8 8 9

1 12-13

ACH Exception Handling BankTech Conference Education and Trainers Forum CEO Forum Human Resources IRA Essentials Advanced IRAs Compliance Forum Operations School Lending Forum Commercial Lending School Retail Banking Forum Executive Assistant/Board Secretary Forum

15 15 17 21 29

30 Understanding Bank Performance

Midwest CEO Forum Technology Forum Midwest Bank Leaders Conference CFO Forum Central Cash Management/Treasury Forum Transforming Culture: Building a High-Performance Banking Team

JANUARY 2024 25

Essentials of Banking,

Session 1

Bank Marketing Forum Small Bank CEO Forum CFO Forum North Understanding Bank Performance Operations Forum

FEBRUARY 2024 7 and 9 Hot Topics in Compliance 15 Essentials of Banking, Session 2 21-22 Retail Banking Leadership Series,

28

Sessions 1 and 2 Retail Lending Series, Session 1

16-17

Essentials of Commercial Credit

Analysis Series,

Sessions 1 and 2

25

• September-October 2023

Internal Audit School

BSA/AML Yearend Wrap-Up

• 34 •

Bank Counsel Conference

Essentials of Banking, Session 4

ILLINOIS BANKERS SCHOLARSHIP PROGRAM

BUILDING A TALENT POOL The scholarship program provides funding to high school graduates and college students seeking a degree in the financial services sector. The program was created to promote the development and continuation of a vibrant talent pool of future leaders in the field of banking.

Applicant and Scholarship Highlights • Sponsored by an IBA member financial institution • Attend any accredited college or university • Awarded in amounts of $1,000 • Applications accepted between January 1 and March 31 with award recipients announced by May 31

INVEST IN THE FUND Help support the scholarship fund by making an individual or corporate monetary contribution. Contributions raised are awarded to high school graduate and college students who have been selected by a committee of industry peers upon their submission of the Illinois Bankers Scholarship application.

Full details available at https://www.illinois.bank/scholarship

September-October 2023 •

• 35 •

WHY

?

Ron Hobson with customer Jerry Reed of Brownstown, IL

Operational Services

Lending Services

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

Audit Services

MEMBER FDIC

800-347-4MIB

Comprehensive SOLUTIONS

mibanc.com

INVESTMENT PRODUCTS Municipal Bonds Mortgage-Backed Securities Govt. & Agency Bonds Corporate Bonds Brokered CDs Money Market Instruments Structured Products Equities Mutual Funds ETFs

FINANCIAL SERVICES

FBBS believes the success of your team is the future of our firm.

FBBSinc.com

888-726-2880

Public Finance Investment Portfolio Accounting Portfolio Analytics Interest Rate Risk Reporting Asset/Liability Management Reporting Municipal Credit Reviews Balance Sheet Policy Development and Review MEMBER FINRA & SIPC. INVESTMENTS ARE NOT FDIC INSURED, NOT BANK GUARANTEED AND MAY LOSE VALUE.