Illinois Banker Magazine | November - December 2020

The Official Publication of the Illinois Bankers Association ilbanker.com

Small Business Lending Gives a Boost to Banks Red Flags for COVID-19 Related Fraud Drop in IRA Balances May Mean Rise in Roth IRA Conversions

November-December 2020

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

MESSAGE November-December 2020 • Vol. 106 / No. 5 • ilbanker.com

TABLE OF CONTENTS

DEPARTMENTS

18

5 Message from the President and CEO 6 Compliance Corner 8 Washington Update 9 FLA Update 24 Preferred Vendor Spotlight 31 Events Calendar 32 On the Move 33 News & Notes 36 Associate Member News 36 Ad Index

10

15

37 New Associate Members 37 New Member Banks 38 The Last Page

FEATURES

10 Red Flags for COVID-19 Related Fraud – What You Need to Know 15 Drop in IRA Balances May Mean Rise in Roth IRA Conversions 18 Small Business Lending Gives a Boost to Banks 20 Illinois Banks a Source of Strength 22 IBA Golf Outing Highlights 28 IBA Boards & Committees

38 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.

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS C. Brant Ahrens Chairman CIBC, Chicago

Michelle L. Gross Chairman-Elect State Bank of Bement

William P. Gleason Vice Chairman The Leaders Bank, Oak Brook

BOARD OF DIRECTORS REGION 1

REGION 4

Clark Delanois The Northern Trust Company, Chicago

Tom Gihl INB, Springfield

Joan Heggen U.S. Bank, Chicago

Anthony G. Nestler Hickory Point Bank and Trust, Decatur

REGION 2

REGION 5

Gary S. Collins Old Second National Bank, Aurora

T.J. Burge Community Partners Savings Bank, Salem

Rick M. Francois American Community Bank & Trust, Woodstock

Richard J. Knebel The Bradford National Bank of Greenville

REGION 3

AT LARGE

Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville

Dane Cleven Community Savings Bank, Chicago

Tyler Rouse First Federal Savings Bank of ChampaignUrbana

Megan Collins Bank of America, Chicago

Jeff Fauver Catlin Bank James R. Hannon First Security Trust and Savings Bank, Elmwood Park Quint Harmon Pioneer State Bank, Earlville James H. Huiskamp Blackhawk Bank and Trust, Milan Richard J. Mahoney First Midwest Bank, Chicago

Pamela A. ShararStoppel Wheaton Bank & Trust Co. Matthew Smith First Mid Bank & Trust, Mattoon Simon P. Yohanan First Bank of Highland Park Andrew Butts Bank of Belleville (non-voting member)

Rick R. Parks First National Bank of Waterloo Steven F. Rosenbaum Hoyne Savings Bank, Chicago

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@ilbanker.com

Betsy Johnson Treasurer Solutions Bank

Executive Administration Randy Hultgren, President and CEO Erich J. Bloxdorf, Executive Vice President & COO Mary Curl, Executive Assistant & HR Manager

Thomas J. Chamberlain Member-at-Large Iroquois Federal Savings & Loan, Danville

Pam Macha, Springfield Office Coordinator Legal and Compliance Carolyn Settanni, Executive Vice President and General Counsel Carly Berard, Senior Counsel Michael Schasane, Staff Attorney Amy Giacomucci, Law Assistant

Anthony G. Nestler Member-at-Large Hickory Point Bank and Trust Co., Decatur

Bank and Partner Relations Julie Winterbauer, Vice President Linda Koch, CAE, Member/Business Relations Manager David Barbeau, Senior Banking Advisor (dbarbeau@htc.net) Sarah Cowan, Membership and Government Relations Assistant

Kevin L. Olson Immediate Past Chairman Grundy Bank, Morris

Randy Hultgren Secretary President and CEO Springfield

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• November-December 2020

Communications/Marketing/ Associate Membership

Illinois Bankers Business Services, Inc.

Debbie Jemison, CAE, Vice President

Brian Hoffman, President

Tammy Squires, Assistant Vice President Robin Lane, Director, Associate Membership Finance and Administration Mark Bennett, CPA, CFO and Vice President

Phil Talley, Vice President, Insurance Services Casey Widholm, Marketing Manager Illinois Bankers Education Services, Inc. Callan Stapleton, President

Marcia Stratton, CPA, Director

Bob Anderson, Manager, Education Relations & IT Support

Marie Ann South, Financial Assistant

Cassie Mattson, Manager, Event Management and FLA

Government Relations

Denise Perez, Manager, Education & Training

Ben Jackson, Executive Vice President

Amy Sale, Education Assistant

Aimee Winebaugh, Assistant Vice President;

Illinois Bankers Group Insurance Trust

Sarah Cowan, Membership and Government Relations Assistant

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

Editorial Office 3201 West White Oaks Drive, Ste. 400, Springfield, IL 62704 217-789-9340 FAX 217-789-5410 www.ilbanker.com Debbie Jemison, Editor With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 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 2020 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGE Illinois Banks – A Source of Strength “Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.”

Randy Hultgren

IBA President and CEO

This inspirational quote from the great philosopher, Michael Jordan, perfectly describes the attitude of the incredible bankers who serve the people of Illinois. When your communities ran into the wall of this pandemic and you ran into the wall of E-Tran, you didn’t turn around and give up. You and your teams worked through the night and the weekends to get applications entered, you got vital funds to families and businesses who were desperate, and you provided amazing acts of kindness and service that sustained individuals who didn’t know if they were going to make it.

You see it as your job to serve, and you don’t really like touting all you did to give back. This is a character quality that I really appreciate about IBA Members and is also why I believe the IBA needs to be actively telling the stories of our Illinois banks.

The numbers pack a punch. Illinois banks made over 225,000 PPP loans in the amount of almost $23,000,000,000. This money went mostly to small businesses and small farms.

When the United States Congress wanted to get immediate help to hurting people, they quickly turned to community banks to get out $600 billion of assistance. In Illinois alone banks were able to support 2.2 million jobs through the PPP loans they facilitated.

The stories of service and sacrifice paint the picture of banks and their employees putting their customers and communities first, and we’ll be sharing some of these stories with legislators and the media. For example, the Community Bank of Elmhurst worked until 3 or 4 in the morning, weekends, and even on Easter to get small and big loans out to keep companies afloat. When an elderly customer at First Mid Bank & Trust indicated he was short on groceries, a teller took note, taking items to his home and periodically checking

on him. Bradford National Bank got word that the local Girl Scouts were having trouble selling cookies, so the bank bought them all and donated them to the police, hospital workers and health department. Glenview State Bank provided level 1 masks to their customers and donated more than 600 N95 masks to local police and fire departments. Their employees also sewed more than 250 masks for Glenview State employees. Blackhawk Bank purchased over 700 gift cards totaling $23,100 from local businesses and restaurants to give a boost to these businesses and to thank the 200+ essential employees who work at the bank.

At Solutions Bank, check-ins with an elderly customer who had recently lost her husband have become a daily routine. A bank employee calls the woman every morning to make sure she feels okay and to see if she needs anything.

Notes of gratitude have flooded into banks across Illinois. A thankful customer of a printing business where 51 jobs were saved wrote to Hickory Point Bank saying “their prompt approval and funding of the PPP loan, combined with the proactive offering of payment deferrals, allowed us to retain the vast majority of our workforce. They are much more than a bank – they’re a partner who truly is invested in our success.” First Midwest Bank received an appreciative note stating “like many other businesses, COVID-19 has had a significant impact. The PPP was a much-needed lifeline in a period of uncertainty. Even though I was not a current client, they helped me navigate the loan process.” Iroquois Federal Savings & Loan received a note that says “your team should be considered heroes in my mind.”

2020 has been a very difficult year, but the great employees of banks have done amazing work to help and care for those who have been struggling. All of us at the IBA are so proud of you and we are honored to be able to tell your stories. You and your teams are a source of strength in Illinois and you have helped your customers climb, go through and work around this horrible pandemic.

See pages 20-21 for an infographic that will be shared with legislators and the media. We are still collecting stories from Illinois banks and will be creating more pieces like this. Please send your bank’s stories to Debbie Jemison, djemison@ilbanker.com.

November-December 2020 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION

Are banks required to provide employees with paid sick leave if they must be quarantined due to having contact with someone who tested positive for COVID-19? Are employees also entitled to paid leave if they are caring for a child whose school or daycare is closed due to COVID-19? If so, for how long must banks provide paid leave, and can employees be required to use their vacation, sick leave, or personal days?

ANSWER

Yes, an employer with between fifty and five hundred employees may be required to provide up to two weeks of paid sick leave to quarantined employees and up to twelve weeks of paid leave to employees caring for a child whose school or daycare was closed due to COVID-19 under the Families First Coronavirus Response Act (FFCRA).

The Families First Coronavirus Response Act (FFCRA) provides for two new types of paid leave related to COVID-19: two weeks of emergency paid sick leave under the new Emergency Paid Sick Leave Act, which may be followed by ten weeks of expanded family and medical leave under the FMLA expansion for qualifying employees, for a total of twelve weeks. Both types of leave are effective April 1 and expire on December 31, 2020. There are different eligibility requirements for each type of leave, so some employees may qualify for one and not the other.

Note that employees could be entitled to their full salaries or two-thirds of their salaries, depending on the type of leave and reason for taking leave. We recommend reviewing each law to determine exactly how much you are obligated to pay an employee taking either or both types of leave.

Emergency Paid Sick Leave Act (emergency paid sick leave) Employees may be eligible for two weeks of emergency paid sick leave under the new Emergency Paid Sick Leave Act if they are unable to work (or telework) due to one of six specified reasons related to the COVID-19 pandemic. Those reasons include being subject to a federal, state, or local quarantine order, being advised by a health care provider to self-quarantine, and caring for a son or daughter whose school or daycare is closed due to COVID-19.

Emergency paid sick leave is available to employees regardless of how long they have been employed.

An employer cannot require an employee to use employer-provided PTO before they can use emergency paid sick leave. However, an employee can choose to use their employer-provided PTO or sick time if they wish to.

Emergency Family and Medical Leave Expansion Act (expanded family and medical leave) Employees may be eligible for an additional ten weeks of paid expanded family and medical leave under the Emergency Family and Medical Leave Expansion Act if they are unable to work (or telework) when caring for a child under the age of eighteen whose school or daycare was closed or whose childcare provider is unavailable due to COVID-19. Expanded family and medical leave is available only to employees who have been employed for at least thirty days.

Under the Emergency Family and Medical Leave Expansion Act, employers with five hundred or fewer employees are required to provide family and medical leave to qualifying employees of up to twelve weeks if they are unable to work (or telework) due to a need to care for their son or daughter under the age of 18 whose school or daycare has been closed due to COVID–19.

The first two weeks of expanded family and medical leave are unpaid, and an employee may elect to use any accrued PTO or paid sick leave during that period, as well as the emergency paid sick leave discussed above.

Small Business Exemption Employers with fewer than fifty employees may be exempt from providing emergency paid sick leave and expanded family and medical leave when “the imposition of such requirements would jeopardize the viability of the business as a going concern.”

The Department of Labor has issued temporary regulations regarding how to make this determination and document it.

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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• November-December 2020

QUESTION

We have a dormant account and are unable to reach the accountholder. The only transactions on the account are social security deposits. Are we required to return the social security deposits?

ANSWER

No, we do not believe you are required to return social security deposits solely because they are being deposited into a dormant account, provided that the recipient has not died (to your knowledge) and your bank has not yet closed or frozen the account.

The Treasury Department’s Guide to Federal ACH Payments (the Green Book) requires a Receiving Depository Financial Institution (RDFI) to return social security and other federal benefit payments received after it knows that the recipient is dead or legally incapacitated (or would know if it followed commercially reasonable business practices).

Additionally, payments must be returned if the RDFI closes an account receiving benefits payments

after giving the recipient thirty days’ written notice, among other reasons. However, the Green Book does not require RDFIs to return payments solely because the recipient’s account is dormant.

Note that under the Illinois Revised Uniform Unclaimed Property Act, a dormant account will be considered abandoned after three years of inactivity and must be turned over to the State Treasurer. A previously authorized recurring ACH credit, such as the social security deposits, would not indicate account activity that would avoid the presumption of abandonment.

QUESTION

A customer used the Cash App mobile payment service in a transaction that turned out to be a scam. Although the customer initiated the transaction, they were defrauded by the other party. Is there anything we need to do in this situation, and is there any state law that protects an individual who is a party to a transaction where another party has acted in bad faith?

ANSWER

No, we do not believe you are required to take action when a customer initiates a mobile peer-to-peer (P2P) transaction that turns out to be fraudulent. Regulation E defines an “unauthorized electronic fund transfer” as “an electronic fund transfer from a consumer’s account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit.” Here, your customer initiated the electronic fund transfer, so it does not appear to have been unauthorized.

We also are not aware of any Illinois law that requires a bank to reimburse customers who are victims of fraud, although the fraudsters would be in violation of the Illinois Criminal Code. Consequently, we believe your customer’s only recourse to recover the funds would be to contact their local law enforcement agency and to potentially file a civil action against the fraudster.

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!

November-December 2020 •

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WASHINGTON UPDATE

By Rob Nichols, President and CEO, American Bankers Association

Personal Finance for the Pandemic Era: Why Bankers Should Deliver Fin Ed Lessons Today The pandemic has forced many lessons on us, not the least of which is the importance of being prepared. I don’t mean being-well-stocked-on-toiletpaper prepared. I mean having the ability and resources to survive an uncertain and even perilous period. For businesses, that clearly requires having a well-crafted and tested business continuity plan. For households, the most important preparedness tool may be a well-funded savings account.

15 percent who said they were less likely to do so. Meanwhile, 65 percent said they don’t have any type of savings account, and 62 percent said they would be able to save more if there was an easier way to set aside a portion of their paycheck.

Those who may not have fully appreciated this before COVID-19 certainly understand it now. In fact, a Bank Rate survey this summer found that Americans’ top financial regret is not having enough emergency savings to withstand the crisis, followed closely by not having enough retirement savings.

To help banks meet that demand — and prevent financial regrets in the first place by teaching financial fundamentals to today’s youth and young adults — the ABA Foundation has adapted its financial capability programming for today’s virtual world.

Teach Children to Save lessons went virtual in April, and Get Smart About Credit, our fall program, has also been adjusted to include new resources and notes for delivering effective virtual presentations, as well as new modules around saving for the unexpected.

This presents an important opportunity for banks, which can — and should — help support both established and fledgling savers as they pursue their savings goals.

Nothing is more fundamental to financial wellness than savings.

Given the massive economic dislocation caused by the pandemic, this may seem an odd time to exhort others to save. Many are suffering from loss of income and find it challenging to pay their expenses; how can they possibly set aside money for a rainy day when it’s already pouring? But there’s reason to view this as the ultimate teachable moment, and an ideal time to convert lessons into action.

In a July survey of hourly workers (by DailyPay and Funding Our Future), 51 percent said that coming out of the pandemic, they are more likely to save for the future, as opposed to

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persist. Those disparities have exposed some populations to greater risk — of catching COVID-19 or losing a job — and they’ve left some children more vulnerable than others to the negative effects of school closures.

These data point to a clear demand for information and tools to facilitate savings, and banks are a reliable source for both.

We all know that strong personal finance skills are essential to success in life. In fact, a majority of respondents in the latest Charles Schwab Financial Literacy Survey said that money management was the most important skill for children to learn, outranking the dangers of drugs and alcohol, healthy eating and exercise habits and safe driving practices. And nine in 10 agreed that a lack of financial education contributes to some of the biggest social issues our country faces, including poverty, unemployment and wealth inequity.

Which brings us to another lesson learned from the pandemic: Significant disparities in health, education and job opportunities

• November-December 2020

Education, including financial education, can help reduce these disparities and give all Americans an equal opportunity to prosper. Few are more qualified to deliver lessons in personal finance than bankers, so I strongly encourage you to register as a volunteer for a financial education program today. The ABA Foundation makes it easy — and free. Visit aba.com/ FinEd to learn more and sign up. This is one of the most important ways bankers can make a long-term difference in the lives of others.

The more individuals we reach with this valuable information, the better off our communities will be. And there’s no doubt it is better to learn personal finance lessons in a class Zoom than in a crisis.

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

FLA UPDATE The FLA Class of 2021 wrapped up their 2-day virtual Session #3 in style!

Look at all the smiling faces underneath those masks! So proud of this group and their resilience and adaptability. As you all know, it isn’t easy to carve out uninterrupted time these days, especially when you add in factors such as: work distractions, in-home schooling, pets, babies, the list goes on. But they did it! We had ALL 27 students participate in Day 1 and only ONE student had to miss Day 2 – absolutely incredible! Their upbeat spirits and acceptance of this virtual environment is something to be commended. Kudos to you Class of 2021!

The FLA Board of Directors met via Zoom in July to discuss the current class and to begin brainstorming what the upcoming Class of 2022 could look like. There were a lot of great ideas presented and the Board discussed some of the ways next year’s class could be transformed into a hybrid experience.

Applications for the Class of 2022 will open up November 2. Please connect with Cassie Mattson (cmattson@ ilbanker.com) to add your name to the waitlist. We’re excited to see what the future holds for our FLA program!

Applications for the Class of 2022 are now being accepted.

November-December 2020 •

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RED FLAGS for COVID-19 Related Fraud – What You Need to Know

By Terri Luttrell, CAMS-Audit, Abrigo

A

s the COVID-19 pandemic continues to wreak havoc around the globe, related fraud continues to escalate at a staggering rate. Bad actors are poised and ready to use disasters, such as a pandemic, to steal money and/or personal information. Fraudsters strive to be one step ahead of detection and are eager to take advantage of the new vulnerabilities facing people already filled with anxiety and fear.

FinCEN Advisories Warn Against COVID-19-Related Scams The coronavirus pandemic has created many vulnerable targets, including the elderly and unemployed. In answer to these growing concerns, the Financial Crimes Enforcement Network (FinCEN) recently issued three COVID-19 related advisories that call upon financial institutions to remain alert to COVID-19-related fraud by understanding the current scams and red flag indicators that may indicate this illicit activity. The advisories were issued May 18, July 7, and July 30, 2020, showing the fluidity of the scams in this unprecedented time.

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• November-December 2020

The latest advisories concerning COVID-19 related fraud highlight the increase that government agencies are seeing in fraud typologies. Similar tactics as previously, but with greater volume and targeting COVID-19 related themes.

An enhanced fraud risk assessment may be warranted to understand the true risk to your financial institution and your customers. Once you know more about your detection capabilities and any potential gaps, you can develop risk-focused procedures around this heightened illicit activity. Fraud often can lead to hard dollar losses, and suspicious activity monitoring may need to be enhanced if your risk assessment indicates.

The list of red flags in these advisories can be overwhelming due to the sheer volume of typologies that are addressed. However, they should be thoroughly understood to detect COVID-19 related fraud. The increase is reported fraud is alarming and financial institutions should be prepared to take a proactive approach to protecting their customers and reporting COVID-19 related fraud.

An analysis of each of the combined advisory red flags will assist an institution in building a solid framework around COVID-19 related fraud detection. By grouping the red flags into fewer typologies, procedures can be written around the red flags for detecting each pandemic related fraud trend:

Imposter Scams are Increasing Due to the Pandemic

regarding a “stimulus check” or “stimulus payment”

u Receipt of a check or prepaid debit card from the U.S. Treasury less than the amount expected, with instructions to contact the fraudulent agency to receive the full benefit

Imposter Scams involve criminals acting as government officials, non-profit groups, universities, or charities and offering fraudulent or non-delivery of products or services to defraud victims by solicitation of payments, donations, or personal information. Fraudulent cures, tests, vaccines, and services have all been reported in addition to price gouging and hoarding of medical-related items, such as face masks and hand sanitizer. Many of the noted red flag indicators center around customer due diligence processes such as review of business documentation, website review, negative news searches, and high-risk jurisdiction activity. If any of the following red flags are detected, further due diligence should be conducted to determine if fraudulent activity is occurring.

u Phishing communications instructing readers to open

Red flags include:

u Solicitations in person, by email or social media

u Medical supply related transactions through a personal account

u Merchant requires pre-paid cards, virtual currency, or other hard to trace mean of payment

links or files to provide personal information

u Email addresses related to COVID-19 that contain misspellings or use the domain name of “.com” or “.biz” for an alleged government agency

u Specific email subject lines that have been identified as phishing campaigns, such as:

w 2020 Coronavirus Updates w Coronavirus Updates w 2019-nCOV: New confirmed cases in your City w 2019-nCov: Coronavirus outbreak in your city (Emergency) seeking donations on behalf of a reputable charity but, is fraudulent

u A charitable organization soliciting donations that does not have an in-depth history or cannot be verified

u High chargeback and/or return volume in the customer’s account

u Newly opened account received a large wire transaction that was not disclosed at account onboarding

u New accounts opened after January 2020 for the purpose of selling medical supplies or highly soughtafter goods (toilet paper, masks, disinfectant, etc.)

u Customer begins to use an established account differently after January 2020 without an explainable purpose

u Customer’s account is receiving or sending electronic fund transfers (EFT) to/from a new business with no known physical or internet presence

u Customer’s account is used for COVID-19 related goods with a company that is not a medical supply distributor

u Customer makes unusually large deposits that are inconsistent with the customer’s profile or account history

u Communication from a person, either by phone, email, text, or social media, claiming to represent a government agency and asking for personal information, particularly

Money Mule Schemes Involve Recruiting Others to Launder Illicit Funds Money mule schemes consist of bad actors recruiting individuals to transfer illegally acquired money on behalf of the fraudsters, typically using multiple accounts (i.e. solicitation to work from home for an unrealistic salary).

Reg flags for money mule schemes may include financial transactions as well as customer/member interaction:

u Customer/member account starts to receive transactions out of the norm, including:

u Overseas transactions u Purchase of large sums of virtual currency u Sudden increase in account balances u Mention COVID-19 or work from home and reason for increased activity

u Customer opens a new business account with balance transferred out soon after opening

u Customer opens several accounts at different financial institutions with high-velocity movement of funds

November-December 2020 •

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u Customer receives multiple state unemployment payments

w Service member stationed abroad

u Customer receives an unemployment deposit from a different state in which he/she previously worked

u Customer receives unemployment payments for numerous employees and the “remit to” name does not match

u Deposited funds quickly wired out to foreign locations with poor anti-money laundering controls

u Customer makes unusual overseas transactions indicating it is for a person overseas needing financial assistance due to the COVID-19 pandemic

u Customer has documentation from an employer or recruiter using a free email service rather than a company-specific email

u Customer has been asked by an employer to deposit funds into their personal account and then transfer funds via wire, ACH, mail, or money services businesses

u Customer has been asked by an individual for financial assistance to send funds to their personal account. The

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individual may claim to be one of the following:

• November-December 2020

w citizen working or traveling abroad w citizen quarantined abroad If any of these red flags lead to uncertainly of the legitimacy of the activity, it may be COVID-19 related fraud and a suspicious activity report (SAR) may be warranted. When filing a COVID-19 related SAR, FinCEN requests that SAR field 34(z) (Fraud Other) be selected and the key term “COVID19 MM FIN-2020-A003” in SAR field 2 (Filing Instruction Note to FinCEN) and in the narrative.

Cybercrime has Seen a Major Spike During the Pandemic Due to More People Being Online

Cybercrime, criminal activity by use of computers, has increased significantly during the pandemic. Reports to FinCEN and the Federal Bureau of Investigation (FBI) show these primary areas of COVID-19 related cyber fraud:

u Malware: software designed to disrupt, damage, or gain unauthorized access to a computer

u Phishing schemes: the practice of sending emails purporting to be from reputable companies to induce individuals to reveal personal or financial information

u Extortion: demanding something, such as money, by force or threats

u Business email compromise (BEC): a scam that targets those who perform funds transfers.

u Exploitation of remote applications: the transition to “work from home” remote access and virtual applications during the pandemic has presented new opportunities for bad actors to target businesses and individuals.

Red Flags for cybercrime include: u The spelling of names in account information does not match the government-issued identity documentation.

u Pictures in identity documentation are fuzzy or blurry. u Images of identity documentation have visual irregularities that suggest digital manipulation, particularly in the name, address, and other identifier fields.

u A customer’s physical description on identity documentation does not match other images of the customer.

u A customer refuses to provide supplemental identity documentation or delays producing requested documentation.

u Customer logins occur from a single device or Internet Protocol (IP) address across multiple seemingly unrelated accounts.

u The IP address associated with logins does not match the stated address in identity documentation.

u Customer logins occur during high network traffic

If filing a suspicious activity report (SAR) related to these COVID-19 fraud types, FinCEN requests that you include the key term “COVID19-CYBER FIN-2020-A005” in SAR field 2 (Filing Instruction Note to FinCEN) and in the narrative. In addition, be sure to check all relevant activity type boxes and include additional keywords in field 34(z) to describe the type of fraud, such as “COVID 19 BEC Fraud,” “EAC fraud,” or BEC data theft”. Protecting legitimate pandemic relief efforts and prevention of fraud are two important fights we can win during this unprecedented time.

Adjusting Your Scenario Thresholds and Being Alert of Red Flags May Help You Better Detect These Crime Trends

Remaining aware of COVID-19 related red flags indicators will enhance your transaction monitoring program and assist you in detecting fraud perpetrated upon victims struggling during this difficult time of pandemic. You may consider lower parameter limits on certain scenarios, such as spikes in deposits, or create monthly ad hoc reports. Adding the advisories and red flags to written fraud monitoring procedures will enhance your program and demonstrate that your financial institution is on top of current trends. Regulators will want to know how you are addressing and mitigating COVID-19 related fraud, so be prepared for that question.

FinCEN intends to send further advisories concerning COVID-19 related crime based on future data and analysis which will assist in keeping your financial institution up to date. In addition to the current advisories, FinCEN issued a notice reminding financial institutions of their BSA reporting requirements, expecting financial institutions to continue following a risk-based approach and to diligently adhere to their BSA obligations.

As with many fraud trends, it is important to train front line staff in the red flags of COVID-19 fraud, as they have the most opportunity to interact with customers/members.

Casual conversations not only build relationships, they can lead to discovery of a possible scam. Anyone can be a victim of fraud and COVID-19 is creating a greater number of vulnerable targets. Financial institutions are in a unique position to educate customers/members and detect fraud before the victim suffers financial loss and embarrassment.

times to avoid detection.

u A customer notifies the financial institution to change account communication and authentication methods and then promptly attempts to move funds to an account that had not previously received payments from the customer.

About the author: Terri Luttrell, CAMS-Audit, Abrigo, is a seasoned AML professional and former director and AML/OFAC officer with over 20 years in the banking industry, working both in medium and large community and commercial banks ranging from $2 billion to $330 billion in asset size. IBA Associate Member

November-December 2020 •

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• September-October 2020

Drop in IRA Balances May Mean Rise in Roth IRA Conversions

By Alayna Drope, CIP, CHSP, Ascensus

W

ith the global economy experiencing an extraordinary decline over the past few months because of the coronavirus (COVID-19) pandemic, IRA owners may find that their retirement savings balances are much lower than they ever anticipated. As many contemplate financial moves to improve their prospects for a financially secure retirement, there may be a positive side to the drop in account balances: it might just be a good time to convert to a Roth IRA. The potential for tax-free distributions makes the Roth IRA a popular retirement savings vehicle, and conversions are one way to fund a Roth IRA. There are no eligibility restrictions, so for your IRA clients whose income is too high to make regular Roth IRA contributions, they can get money into a Roth IRA by converting non-Roth IRA savings to a Roth IRA. Certain rules apply, however, so it is important that you — and your clients — understand how a conversion works. What’s more, the transaction is final, so your IRA owner clients may want seek competent tax advice before converting.

Conversion

A conversion is the taxable, reportable movement of assets from a Traditional IRA, including Traditional IRAs that contain simplified employee pension (SEP) plan contributions, to a Roth IRA. Assets in a savings incentive match plan for employees of small employers (SIMPLE) IRA also may be converted to a Roth IRA, but only after a two-year period. This period begins on the date that the first SIMPLE IRA plan contribution was deposited to the SIMPLE IRA owner’s account.

Note that required minimum distribution (RMD) amounts may not be converted. Only after the RMD is

November-December 2020 •

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An IRA owner cannot convert basis alone, however.

Assets that are converted to a Roth IRA consist of pro rata portions of both pretax assets and basis, if both types of assets exist in the IRA owner’s IRAs. To determine the amount of the converted assets that can be excluded from income, the aggregate basis amount is divided by the aggregate IRA balance and then multiplied by the converted amount. Your organization is not required to calculate this; it is the IRA owner’s responsibility. But you may want to remind your IRA owners that they must complete IRS Form 8606, Nondeductible IRAs, to formally calculate and report the taxable amount of the conversion.

Form 8606 must be attached to their federal income tax returns for the year of the conversion, regardless of whether there is any basis to their credit. Your IRA owners may want to seek assistance from a competent tax advisor.

Because conversion assets are subject to tax, your organization must apply the federal income tax withholding rules, allowing your IRA owners to request 10 percent or more be withheld or to elect to waive withholding.

Process

distributed for a year may the balance of a Traditional or SIMPLE IRA be converted to a Roth IRA, if eligible.

In response to the economic downturn caused by the COVID-19 pandemic, the IRS waived 2020 RMDs. As a result, IRA owners who are converting to a Roth IRA in 2020 do not have to satisfy their RMDs first.

Taxation

The amount converted is subject to income tax, but the 10 percent penalty tax for early (before age 59½) IRA distributions does not apply. Your IRA owners must include all previously untaxed assets (pretax assets) that are converted in their taxable income for the year of the conversion. For purposes of determining what should be included in their taxable income, all Traditional and SIMPLE IRAs assets are aggregated. Pretax assets generally include all: u deductible Traditional IRA contributions, u retirement plan pretax assets rolled over to a Traditional IRA, u SEP and SIMPLE IRA contributions, and earnings.

Any nondeductible, or after-tax, Traditional IRA contributions and retirement plan rollovers of after-tax assets are considered “basis” in a Traditional IRA. Any basis in the Traditional IRA is not taxable when converted.

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• November-December 2020

IRA owners may convert their IRA assets either directly or indirectly. Doing so directly means that the IRA owner does not take receipt of the assets. Instead, the distribution from the Traditional or SIMPLE IRA is payable to the receiving financial organization for the benefit of the IRA owner, or an internal transfer of the assets is made. If the IRA owner elects withholding on a direct conversion, the amount withheld and submitted to the IRS is reported as a distribution to the IRA owner and is not considered part of the conversion. Thus, it is subject to the 10 percent early distribution penalty tax if the IRA owner is under age 59½.

When an IRA owner requests and receives a Traditional or SIMPLE IRA distribution (the check is made payable to the IRA owner) and she deposits the amount in a Roth IRA within 60 days after the date of receipt, the conversion was done indirectly.

Because of the disruptions caused by the COVID-19 pandemic, the IRS issued Notice 2020-23 to extend the deadlines for certain time-sensitive tax-related actions. An indirect conversion that needed to be redeposited between April 1 and July 15, 2020, to satisfy the 60-day window was permitted to be delayed until July 15, 2020.

Another option, if within the same financial organization, is to “redesignate” the Traditional or SIMPLE IRA as a Roth IRA. The IRA owner must complete a new IRA application that identifies specifically what type of IRA is in existence (i.e., Roth IRA). Redesignating a non-Roth IRA as a Roth IRA does not require the investment instrument to be

closed or surrendered. All banking, insurance, state, and federal laws still must be taken into account when considering the redesignation approach.

Reporting

All IRA distributions being converted are reported on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. For a direct conversion, either code 2, Early distribution, exception applies (for IRA owners under age 59½), or code 7, Normal distribution, must be shown in Box 7.

If an IRA owner under age 59½ withholds on a distribution that is directly converted, the distribution must be reported on two Forms 1099-R. One Form 1099-R reports the direct conversion amount using distribution reason code 2, and the second Form 1099-R reports amounts withheld for taxes using code 1, Early distribution, no known exception (for IRA owners under age 59½). Because amounts withheld are not converted, they are considered distributions to the IRA owner and — as previously noted — are subject to the 10

percent early distribution penalty tax, unless a penalty tax exception applies.

For an indirect conversion, either code 1 or code 7 is used in Box 7. Financial organizations that receive a direct or indirect conversion report the amount on Form 5498, IRA Contribution Information, in Box 3, Roth IRA conversion amount.

And although physically accomplished through an internal transfer, redesignations must be reported as distributions on Form 1099-R and conversion contributions on Form 5498.

Documentation

Ensure that you organization has captured the required information — eligibility, client elections, etc. — by using transaction forms. Understanding the conversion requirements and having the written documentation to support each transaction will help your organization handle conversions with confidence and efficiency.

By Alayna Drope, CIP, CHSP, Ascensus. IBA Preferred Vendor

November-December 2020 •

• 17 •

Small Business Lending Gives a Boost to Banks

By Carl White, Federal Reserve Bank of St. Louis

T

he recession that has accompanied the coronavirus pandemic has hit most sectors of the U.S. economy hard, and commercial banks are no exception. Through the first half of 2020, profits sharply declined from their year-ago levels as banks worked with loan customers through deferrals and modifications, new loan demand fell, and banks set aside more funds for anticipated losses.

Those trends were true of both community banks and their larger counterparts to varying degrees within the District and nationally.

SMALL BUSINESS LENDING

A snapshot of bank health as of June 30 shows one bright spot, however: small business lending.1 Compared with a year earlier, small business loans increased nearly 40% at U.S. community banks. Among all banks in Eighth District states, year-over-year growth ranged from 29.5% in Mississippi to 42.5% in Tennessee, as seen in the table below.

Outstanding loans in every other category — consumer, residential real estate, commercial real estate and agriculture — declined from a year earlier for all U.S. community banks and showed much smaller increases or declines at banks in District states.

SMALL BUSINESS LENDING AND THE PAYCHECK PROTECTION PROGRAM Bank Group

Small Business Loan Growth 6/19 – 6/20

PPP Participation Rate

Ratio of PPP Loans to Small Business Loans

U.S. community banks

39.7%

81.6%

49.8%

Eighth District

31.3%

81.2%

46.5%

Arkansas

35.6%

80.2%

41.5%

Illinois

31.2%

78.0%

53.4%

Indiana

40.0%

79.8%

52.3%

Kentucky

32.4%

73.3%

41.7%

Mississippi

29.5%

84.3%

48.2%

Missouri

35.0%

85.7%

62.0%

Tennessee

42.5%

82.3%

46.3%

NOTE: The participation rate and the loan ratio data are as of June 30, 2020.

SOURCE: Call Reports of Condition and Income.

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• November-December 2020

THE PAYCHECK PROTECTION PROGRAM BOOST

The steep increase in small business lending at community banks was spurred by the introduction of the Paycheck Protection Program (PPP), a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed and signed into law in March. The PPP is administered by the Small Business Administration (SBA) and guarantees the extension of potentially forgivable loans to allow participating employers to keep workers on their payrolls. The maximum loan size is $10 million, and about two-thirds of all loans extended under the program were for $1 million or less.

The vast majority of the nation’s banks have participated in the program. At midyear, more than 80% of all community banks had extended loans through the program. In the District, the participation rate was nearly identical and ranged from 73% in Kentucky to nearly 86% in Missouri.

Although community banks accounted for just 20% of total loans on the books of the nation’s banks on June 30, they held more than 40% of PPP loans extended by banks. The average size of a PPP loan was just under $100,000.

BUMP LIKELY TO BE SHORT-LIVED

The SBA stopped accepting PPP loan applications in early August. As these loans are paid back or forgiven, the outstanding balance of small business loans will no doubt decline. The outlook for other categories of loans is highly dependent on the size and timing of a rebound in economic activity.

Despite the high participation rates of community banks in the PPP, it’s likely that long-term trends in small business lending will remain unchanged. Since 2016, community banks have lagged their larger peers in the extension of small business loans.

Nevertheless, small business lending remains a key business line for community banks, and it’s highly likely that some new customers who turned to community banks for PPP loans will stay with these banks. The PPP loan experience may help smaller banks regain some of the ground they’ve lost to larger competitors in the small business loan market.

About the author: Carl White is Senior Vice President, Supervision, for the Federal Reserve Bank of St. Louis. IBA Associate Member.

The last column of the table shows the ratio of PPP loans to total small business loans. On average, PPP loans counted for slightly less than half of all small business loan dollars on the books of community banks at midyear. In District states, the ratio ranged from 41.5% in Arkansas to 62% in Missouri.

Notes and References 1. Loans are categorized by the size of the loan and not the size of the business. Of course, it’s likely that most small loans are made to small businesses. Small business loans are those that are originated for $1 million or less. Community banks include commercial banks, thrifts and trust companies with assets of less than $10 billion.

November-December 2020 •

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• November-December 2020

November-December 2020 •

• 21 •

EVENTS HIGHLIGHTS

IBA Golf Outing Highlights Congratulations to Our Winners!

The IBA was excited to host two popular events, back-to-back, to allow for some safe, in-person networking opportunities for our bank and Associate Members.

Our Fall and “Spring” Golf Outings were held on Sept. 28 and Oct. 1, respectively. More than 100 folks attended the outings and enjoyed the crisp fall days. As we continue to move through our new normal by offering our extensive programming in either a virtual or hybrid format, it was nice to see some smiling “eyes” and even actual smiles.

The outing in Belleville at St. Clair Country Club was highlighted by our first ever recorded Hole In One

by Doug Schulte! Doug was a guest of the team from First National Bank of Waterloo, led by IBA Board Member and bank President & CEO Rick Parks. This amazing feat was on hole #1 on the course – a par 4 hole! Wow! What a great way to wrap up the season! Be sure to look for the 2021 dates – soon to be announced.

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• November-December 2020

FALL GOLF OUTING SPONSORS Let’’s Talk Let Banking

®

ILLINOIS BANKERS

INSURANCE SERVICES

Thank you!

CyberSecurity

Fall Golf Outing at Pekin Country Club Results

Spring Golf Outing at St. Clair Country Club Results

First Place Craig Gustafson, Dave Boswell, David Harker & Tom Miler - Union Federal Savings and Loan Association

First Place Bill Barlow, Dan Abegg & Matthew Warren - Carrollton Bank

Second Place Luke Hawkins, Tim Nimrick, Shawn Roman, & Mike Yepsen - Community State Bank Longest Drive Rich Eckert - Beardstown Savings Bank Closest to the Pin Beth Chamberlain - Iroquois Federal Savings & Loan Association

SPRING GOLF OUTING SPONSORS Let’’s Talk Let Banking

®

Taylor Brengard - First Bankers' Banc Securities, Inc. Second Place (four-way tie!)

Rob Stroh, Kenney Connor, Bob Stroh & Paul Stroh - Tempo Bank Closest to the Pin Bob Hoffmann - First National Bank of Waterloo

ILLINOIS BANKERS

INSURANCE SERVICES

Thank you!

CyberSecurity

November-December 2020 •

• 23 •

PREFERRED VENDOR Approval Payment Solutions Announced as New Preferred Vendor The board of Illinois Bankers Business Services, the for-profit division of the Illinois Bankers Association, has approved an exciting new preferred vendor partnership with Approval Payment Solutions (APS) to provide customers digital and merchant services solutions. Merchant processing or credit card acceptance can be a deciding factor in what separates a struggling business from a successful one. Banks are in an enviable position because of their close relationships to their

• 24 •

commercial customers, as well as an interest in those businesses being as prosperous as possible.

Whether it’s opening up a brickand-mortar to include online shopping, allowing municipalities to accept cost-neutral credit card payments, or safeguarding customer information with inhouse Payment Card Industry (PCI) security standards, a partnership with a reliable merchant processing provider solidifies community merchants to their bank.

• November-December 2020

Through this new partnership, banks will have access to a bestin-class merchant program that provides them: u Greater income potential with revenue shares 2-3 times what most other providers offer u Opportunities to maintain and deepen commercial customer relationships u In market representatives to work with the bank’s customers and offer product expertise on their behalf

PREFERRED VENDOR

u Products to fit almost any business type, including those historically not supported by other providers, such as municipalities, nonprofits, and business-to-business u Access to a full suite of digital marketing services to assist community banks in making the most of their market “We are extremely excited about this relationship,” expressed Brian Hoffman, President of Illinois Bankers Business Services. “APS’ commitment to providing cutting-edge digital and merchant products, as well as outstanding customer service, provides a real and tangible benefit to our bank partners of all sizes.”

Approval Payment Solutions offers a complete menu of electronic payment solutions to banks of every size and type. They are a full-service provider, offering an all-inclusive solution for the payment processing needs of any business.

For more information, contact: Brian Hoffman President, Illinois Bankers Business Services bhoffman@ilbanker.com 217-789-9340 www.ilbanker.com

Approval Payment Solutions Rep Contact info:

Danielle Lausch Director of Strategic Partnerships DLausch@apsolutions.net 717-892-8988 www.apsolutions.net

November-December 2020 •

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PREFERRED VENDOR Felonious Assault Coverage for Financial Institutions Unique and Valuable Protection that Every Bank Should Consider

By Philip Talley, Vice President Insurance Services, Illinois Bankers Association Every successful banker knows that a bank’s most valuable assets are the bank’s employees, the people who interact with customers daily and help to build relationships with the bank’s clients and the community. Unfortunately, bank employees face an increased risk of on the job assaults. According to Bank Crime Statistics reported by the FBI, in the five-year period from January 1, 2014, to December 31, 2018, there were 19,273 robberies and other incidental crimes committed against federally insured financial institutions in the United States. A firearm, or other type of weapon (including knives and explosives), was used in 3,970 of these incidents. During the commission of these crimes, a total of 131 employees were held hostage, and 130 employees were injured or killed.1 It is important to note that this is not an exclusively urban problem, of the 19,273 incidents that occurred from 2014 through 2018, 3,673 occurred in suburban communities, 5,945 occurred in a “small city/town” and 491 occurred in rural communities.

No bank is immune to this risk. These are very sobering statistics for bank managers as they strive to keep employees safe during a time of increased social unrest, rioting, and looting.

In most cases, an on the job assault causes more than just physical injury, these assaults can also have a devastating impact on the employee’s mental health, and they can even cause severe anxiety for the employee’s family. In cases of felonious assault, Worker’s Compensation is often not enough to meet all the medical bills and mental health care that is needed.

In order to help banks protect the emotional and financial wellbeing of employees that are assaulted on the

job, or to help compensate the family of an employee that is killed as a result of an on the job assault, Chubb has introduced a unique type of Accidental Death and Dismemberment (AD&D) policy that provides benefits to bank employees that are injured on the job as a result of a felonious assault. Chubb’s Felonious Assault Coverage for Financial Institutions was designed specifically for banks and other types of financial institutions. It pays benefits in addition to Worker’s Compensation.

Like most other AD&D plans, it pays a schedule of benefits that are determined by the severity of the injury. The policy has a “Principal Sum” of $200,000. The “Schedule of Covered Losses” is as follows: u 100% of Principal Sum: w Loss of Life w Speech and Hearing w Speech or Hearing and one of Hand, Foot, or Sight of One Eye w Both Hands, Feet, Sight, or a combination of any two of Loss of Hand, Foot, or Sight of One Eye w Quadriplegia u 75% of Principal Sum w Paraplegia u 50% of Principal Sum: w Hemiplegia w Hand, Foot, or Sight of One Eye w Speech or Hearing u 25% of Principal Sum: w Uniplegia w Thumb and Index Finger on Same Hand In addition to the benefits outlined above, this policy also includes an “InHospital Benefit”. This benefit applies if an insured employee suffers a covered loss resulting in hospital confinement.

The daily benefit amount is $500 and will be paid while the insured remains

Bank Crime Statistics: www.fbi.gov/resources/library/bank-crime-statistics

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• November-December 2020

in-hospital. This benefit is subject to an elimination period of 3 days and can be paid up to a maximum of 14 days.

If an insured employee needs psychological therapy, as is often the case after an assault, this plan includes a “Psychological Therapy Expense” reimbursement. This benefit reimburses expenses for psychological therapy as required by a Physician, due to a covered assault. The policy will pay up to 5% of the Principal Sum for expenses incurred for treatment. This benefit is payable on an excess basis for treatment that occurs within two years of the covered accident, subject to a total benefit maximum of $25,000.

The premium for this coverage is based on the bank’s employee count. Chubb has made this important coverage very affordable, so it is a coverage that every bank should consider. Having an employee killed or injured on the job because of a felonious assault may seem like a nightmare scenario, but unfortunately it occurs much too often. This policy enables your bank to protect an assaulted employee’s financial security and it provides vital benefits that will help an employee during a time of need. Should an employee die as a result of an on the job assault, this policy will help compensate the employee’s family and help them cope with all of the difficulties that come with losing a loved one, particularly if the deceased was the family’s primary wage-earner.

Illinois Bankers Insurance Services offers this coverage through our partnership with IBA associate member, Mid America Banking Insurance Services, Inc. To learn more about how you can protect your bank’s employees, please contact Philip Talley, ptalley@ilbanker.com.

PREFERRED VENDOR

November-December 2020 •

• 27 •

IBA BOARDS & COMMITTEES Current as of 10-15-20

Agricultural Advisory Committee

Associate Member Committee

Kathleen Rolfs, The State Bank Group, Wonder Lake

Mary Kirbach, Carrollton Bank, Carrollton

Lora Kalka, FNBC Bank and Trust, La Grange

Chairman Scott Rhoads, Carrollton Bank, Carrollton

Kathleen Berman, Graduate School of Banking, Madison

Janelle Kirby, United Community Bank, Chatham

Ryan Martz, Solutions Bank, Forreston

Vice Chairman Betsy Johnson, Solutions Bank, Freeport

Craig Callahan, Floodplain Consultants, Inc., Brownsburg

Marilyn Titone Schaefer, INB, National Association, Springfield

Michael Bavery, Fortress Bank, Carthage

George Dean Callas, Invictus Group, Bronx

Christopher Breyman, Grundy Bank, Morris

John Garey, Allied Solutions, LLC, Grafton

Ray Bunch, Citizens Bank, Macomb

Ron Hobson, Midwest Independent BankersBank, Springfield

John Kahle, Busey Bank, Le Roy Ryan Martz, Solutions Bank, Forreston Kevin Rogers, Philo Exchange Bank, Philo Benjamin Syfert, First Mid Bank & Trust, Tuscola

Lauren Barney, CIBC, Chicago

Bill Zumvorde, Profit Resources, Inc., Grayson

Meschelle Brand, MurphyWall State Bank and Trust Company, Pinckneyville

Clark Delanois, The Northern Trust Company, Chicago

Nellie Andriyanova, BHG Bank Group, Syracuse

David Doedtman, Washington Savings Bank, Effingham

Chris Barrett, Petefish, Skiles & Co., Virginia

Betsy Johnson, Solutions Bank, Freeport

Charles Griffin, CIBC, Chicago Dawn Johnson, Security Savings Bank, Monmouth Will Justice, Duncan-Williams, Inc., Memphis John Martin, Bank & Trust Company, Litchfield Tyler Rouse, First Federal Savings Bank of ChampaignUrbana, Champaign Joshua Shofner, First National Bank & Trust Company, Clinton Jack, Vainisi, Forest Park National Bank & Trust Company, Forest Park Matthew Wyatt, Busey Bank, Edwardsville

• 28 •

Chairman Linda Boyer, Inland Bank and Trust, Oak Brook

Chris Milne, Federal Home Loan Bank of Chicago, Chicago

Chairman William Gleason, The Leaders Bank, Oak Brook

Hayden Gardiner, SouthernTrust Bank, Marion

Compliance Division Advisory Committee

Vice Chairman, Mary Schroeder, Pan American Bank & Trust, Melrose Park

Audit and Investment Advisory Committee

Sarah Dolan, Quad City Bank and Trust Company, Davenport

Ginny Wagner, Itasca Bank & Trust Company, Itasca

Sue Kling, IntraFi Network, Arlington

Annual Conference Committee

Scott Bland, First Neighbor Bank, N.A., Toledo

Diane Wagner, Bank of America, Chicago

Communications and Marketing Committee Chairman Rhonda Houzenga, Farmers & Mechanics Bank, Galesburg Randy Alderman, The Bradford National Bank, Greenville Sarah Bacehowski, Mills Marketing, Storm Lake Michael Bagniewski, Hoyne Savings Bank, Worth Cassie Bull, Stillman BancCorp N.A., Stillman Valley

Allison Bartels, The Leaders Bank, Oak Brook

Ed Cannon, The First National Bank of Beardstown, Beardstown Caeri Chiaro, INB, National Association, Chatham Jason Crowder, First Mid Bank & Trust, Mattoon Kylee Durbin, Town and Country Bank, Springfield Joe Eisenbart, Heartland Bank and Trust Company, Bloomington Kimberly Ekwemoha, CIBC, Chicago Tricia Estela, Byline Bank, Chicago Luke Hawkins, Community State Bank, Galva Jennifer Henze, Old Second National Bank, Aurora Denise LaForte, First Nations Bank, Wheaton Lorraine Linnerud, FNBC Bank and Trust, La Grange

April Davis, Central Bank Illinois, Geneseo

Marie McDermott, Millennium Bank, Des Plaines

Ron Hobson, Midwest Independent BankersBank, Springfield

Rebecca Ketter, Stillman BancCorp N.A., Stillman Valley

J.R. Hock, Grundy Bank, Morris Destiny Nance-Evans, Security Bank, sb, Springfield

• November-December 2020

Kim Kuhl, First Financial Bank, NA, Olney Nora Reyes, Republic Bank of Chicago, Oak Brook Nate Sutton, Busey Bank, Champaign Stephanie Swearingin, United Community Bank (f/k/a Liberty Bank), Godfrey Maria Warner, Morton Community Bank, Morton Barbara Yusko, First Midwest Bank, Plainfield Fintech Committee Micah Bartlett, Town and Country Financial Corporation, Springfield Jo Ann Boylan, First Midwest Bank, Chicago Tom Gihl, INB, National Association, Springfield Gordon Honegger, Morton Community Bank, Morton Robert Hutchinson, Wheaton Bank & Trust Company, Glen Ellyn Donald Schlorff, The Gerber State Bank, Argenta Lee Sustar, Federal Home Loan Bank of Chicago, Chicago Michelle Toll, The State Bank Group, Wonder Lake FLA Board of Directors Chairman Andrew Butts, Bank of Belleville, Belleville Vice Chairman Bethany Shaw, Peoples National Bank, N.A., Harrisburg Immediate Past Chairman Matthew Wyatt, Busey Bank, Edwardsville Kara Austin, Murphy-Wall State Bank and Trust Company, Pinckneyville

Government Relations Committee Chairman Megan Collins, Bank of America, Chicago Vice Chairman Thomas Chamberlain, Iroquois Federal Savings & Loan Association, Danville Todd Bailey, The Huntington Bancshares Inc., Columbus Jeff Baker, LincolnWay Community Bank, New Lenox Randy Blackburn, Millennium Bank, Des Plaines Monica Bowe, First Busey Corporation, Champaign Thomas Broeckling, First National Bank of Steeleville, Steeleville Patricia Clausen, NorthSide Community Bank, Riverwoods Kathleen Cook, The Village Bank, Saint Libory Daniel Daly, SENB Bank, Moline Kyle Davis, Murphy-Wall State Bank and Trust Company, Carterville Rick Francois, American Community Bank & Trust, Woodstock Joseph Gianni, Bank of America, Chicago Patrick Green, Wells Fargo, NA, West Des Moines Quint Harmon, Pioneer State Bank, Earlville Corey Hoze, Associated Banc-Corp., Milwaukee Elsa Jaramillo, Citibank, N.A., Chicago Donald Krager, Bank & Trust Company, Chatham Alan Kwasneski, Marquette Bank, Orland Park

Trent Cox, Farmers & Mechanics Bank, Galesburg

Brien Leahy, First Bank of Highland Park, Highland Park

Hana Kimmel, Northern Trust Corporation, Chicago

Christopher Hushka, CIBC, Chicago

Kathleen Narusis, Home State Bank, N.A., Crystal Lake

Laura Kinney, First State Bank of Bloomington, Bloomington

Joshua Ishmael, INB, National Association, Springfield

James Nikolai, Synchrony Financial, Saint Paul

Rebecca Novak, JPMorgan Chase Bank, N.A., Chicago

Kathy Williamson, Bank of Farmington, Farmington

Kevin Olson, Grundy Bank, Morris

Danielle Wisely, Busey Bank, Edwardsville

Jeff Rabren, Regions Bank, Birmingham Jaclene Robinson-Ivy, The Northern Trust Company, Chicago James Roolf, First Midwest Bank, Joliet Thomas Ruebel, U.S. Bank N.A., Columbus

Illinois Bankers Insurance Trust Board of Trustees Chairman Dane Cleven, Community Savings Bank, Chicago Vice Chairman Craig Hepner, Ottawa Savings Bank, Ottawa

Joan Saenz, Fifth Third Bank, Washington

Larry Clark, Community Partners Savings Bank, Salem

Pamela Sharar-Stoppel, Wheaton Bank & Trust Company, Wheaton

Kenneth Elmore, The First National Bank of Litchfield, Litchfield

Matthew Szigety, PNC Bank, N.A., Pittsburgh

Justin Fentress, DeWitt Savings Bank, Clinton

Kathy Thompson, CIBC, Chicago

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

Daniel Watts, Forest Park National Bank & Trust Company, Forest Park Human Resources Committee Chairman Melissa Walter, LincolnWay Community Bank, New Lenox Kristan Becker-Hoffman, The Farmers State Bank & Trust Company, Jacksonville Tom Blackwell, Angott Search Group, Rochester Crystal Dyer, Holcomb Bank, Rochelle Amy Frazier, Hickory Point Bank & Trust, Decatur Michael Gifford, Howard & Howard Attorneys PLLC, Peoria Beth Glanzer, First Mid Bank & Trust, Mattoon John Kane, Stillman BancCorp N.A., Stillman Valley DaNeal Keane, Home State Bank, N.A., Crystal Lake Jennifer Pauley, MurphyWall State Bank and Trust Company, Pinckneyville Chris Schaefer, Carrollton Bank, Carrollton Tiffany Truckenbrod, The State Bank Group, Wonder Lake Diana Whitson, Farmers & Mechanics Bank, Galesburg

Kathleen Marinangel, McHenry Illinois Bankers Business Services Board Chairman P. David Kuhl, Catlin Bank, Champaign Vice Chairman Daniel Hollowed, Cornerstone National Bank & Trust Company, Palatine Bill Barlow, Carrollton Bank, Edwardsville Micah Bartlett, Town and Country Financial Corporation, Springfield Tom Gihl, INB, National Association, Springfield Michelle Gross, State Bank of Bement, Bement Dean Heinzmann, Fortress Bank, Peoria Erin Kennedy, Republic Bank of Chicago, Oak Brook Beth Williams, Peoples National Bank, N.A., Mount Vernon Illinois Bankers Education Services Board Chairman James Peters, Town and Country Bank, Springfield

Vice Chairman Rene’ Anderson, Hickory Point Bank & Trust, Decatur Secretary-Treasurer Callan Stapleton, Illinois Bankers Association, Springfield John Armstrong, First Bankers Trust Company, N.A., Macomb Michael Cripps, The First Bank and Trust Company of Murphysboro, Murphysboro Eva Galassini, FNBC Bank and Trust, La Grange William Gleason, The Leaders Bank, Oak Brook Dawn Schmidt, First Mid Bank & Trust, Edwardsville Bethany Shaw, Peoples National Bank, N.A., Harrisburg Robert Stroh, III, Tempo Bank, Trenton Illinois Bankers PAC Board Chairman Anthony Nestler, Hickory Point Bank & Trust, Decatur Treasurer Randall Hultgren, Illinois Bankers Association, Springfield Assistant Treasurer Peter Brummel, Grundy Bank, Morris Thomas Chamberlain, Iroquois Federal Savings & Loan Association, Danville Daniel Daly, SENB Bank, Moline Timothy Dosch, First Neighbor Bank, N.A., Mattoon Michelle Gross, State Bank of Bement, Bement Timothy Hecht, First National Bank of Steeleville, Percy Betsy Johnson, Solutions Bank, Freeport Courtney Olson, First Bank of Highland Park, Highland Park Michael O’Rourke, Signature Bank, Rosemont James Roolf, First Midwest Bank, Joliet Kathy Thompson, CIBC, Chicago

Illinois Bankers Scholarship Committee

Michael DiPirro, Home State Bank, N.A., Crystal Lake

Chairman Dave Brandon, Hickory Point Bank & Trust, Decatur

Leanne Kopischke, Busey Bank, Champaign

Andrew Butts, Bank of Belleville, Belleville

Lemanuel McKnight, The State Bank Group, Wonder Lake

Thomas Chamberlain, Iroquois Federal Savings & Loan Association, Danville

Ryan Melton, Peoples National Bank of Kewanee, Kewanee

Trent Cox, Farmers & Mechanics Bank, Galesburg

Joseph Oleksak, Plante Moran, Schaumburg, IL

Michael Cripps, The First Bank and Trust Company of Murphysboro, Murphysboro

Michael Wyffels, Quad City Bank and Trust Company, Davenport

Lenore Erickson, First Bank of Highland Park, Highland Park Jeffery Fauver, Catlin Bank, Catlin Joshua Huseman, First National Bank, DeKalb Rachael Maurer, United Community Bank, Springfield Matthew Wyatt, Busey Bank, Edwardsville

Women in Banking Committee Chairman Candee Arvin, INB, National Association, Springfield Heather Anderson, Old Second National Bank, Aurora Jean Claude, Central Bank of St. Louis, Saint Louis

Membership Committee

Neena Frisch, Busey Bank, Edwardsville

Chairman Betsy Johnson, Solutions Bank, Freeport

Candice Knight, MurphyWall State Bank and Trust Company, Pinckneyville

Jeff Baker, LincolnWay Community Bank, New Lenox Dale Blachford, Godfrey Charles Griffin, CIBC, Chicago Jeff Rabenort, Bankers’ Bank, Madison Jeffrey Snyder, Solutions Bank, Forreston Michael Steelman, Farmers & Merchants State Bank of Bushnell, Bushnell Michelle Toll, The State Bank Group, Wonder Lake Daniel Watts, Forest Park National Bank & Trust Company, Forest Park Technology and Operations Committee Chairman William Evens, First Midwest Bank, Joliet Patricia Colwell, Farmers & Mechanics Bank, Galesburg James Coons, Stillman BancCorp N.A., Stillman Valley

November-December 2020 •

Sarah Mahler, Heartland Bank and Trust Company, Western Springs Michelle Maiter, First Midwest Bank, Lake Forest Laura Mergelkamp, First National Bank of Waterloo, Waterloo Jennifer Nagle, Peoples Bank & Trust, Pana Suzy Perino, Sauk Valley Bank & Trust Company, Rock Falls Kira Pirtle, State Bank of Bement, Bement Janice Schramm, Hickory Point Bank & Trust, Springfield Ashley Speed, Grundy Bank, Morris Gracia Turner, Iroquois Federal Savings & Loan Association, Clifton Susan Wetzel, Litchfield National Bank, Litchfield

• 29 •

EVENTS CALENDAR SEMINARS, CONFERENCES AND FORUMS All programs delivered virtually unless otherwise noted.

DEC 1 DEC 4 DEC 4 DEC 4 DEC 8-9 JAN 19

Safe Deposit Operations Bank Counsel Conference CFO Forum North CFO Forum South – Springfield Advanced BSA/AML Academy Hot Topics in Compliance – Springfield

WEBINARS DEC 1 DEC 1 DEC 1

DEC 1 DEC 2 DEC 3 DEC 3

Business Financial Statements & Tax Returns: Cash vs. Accrual Accounting Refresher Commercial and Industrial Lending in Today’s Competitive Market Commercial Lending: Best Practices for Structuring and Underwriting Lines of Credit, Bridge Loans, Term Loans and Seasonal Credits Consumer Lending: Overview of Credit History, Role of Collateral and Other Factors HSA Fundamentals Quarterly Compliance Briefing: Winter 2020* CTRs: Line by Line*

DEC 8 DEC 8 DEC 8 DEC 8

DEC 8 DEC 8 DEC 9 DEC 9 DEC 9 DEC 10 DEC 11 DEC 14 DEC 14 DEC 15 DEC 15 DEC 15 DEC 15

E-Sign for Lending - Challenges and Solutions* FCRA Compliance: E-Oscar and Metro2* Excel 101: Introduction to Spreadsheets* Business Financial Statements & Tax Returns: Creating a Business Tax Return and Comparing/Mapping to a Conventional Financial Statement Commercial Lending: Loan Agreements and Covenants Consumer Lending: Overview of Residential Mortgages and Home Equity Lending Regulation E: Errors & Disputes* HSA Advanced Concepts Problem Loan Workout in Today’s Market Opening Accounts for Nonresident Aliens* Coaching Skills Bootcamp* Understanding Revocable and Irrevocable Trust Documents* Accounting Basics / Refresher for Bankers BSA Year End Round Up* Business Financial Statements & Tax Returns: Developing and Analyzing Key Ratios Commercial Lending: Five Keys to Better Credit Memos and Loan Packages Commercial Lending: Improving Loan Pricing and Profitability

DEC 16 Top 10 HSA Issues DEC 17 Notary Public* DEC 18 Commercial Real Estate Lending in Today’s Economy* DEC 18 Business Continuity Plan Development * OnCourse Learning  Graduate School of Banking

ABA ONLINE TRAINING COURSES DEC 7 JAN 4 JAN 11

JAN 19 JAN 25

Analyzing Financial Statements The Banking Industry Introduction to Mortgage Lending Marketing in Banking Introduction to Agricultural Lending Analyzing Bank Performance Bank Lines of Business Managing Funding, Liquidity, and Capital

Please visit www.ilbanker.com/ Education-Events/Calendar-of-Events for the most current listing of events

November-December 2020 •

• 31 •

ON THE MOVE Bloomington

Holloway

Bull

Heartland Bank and Trust Company Larry Kallembach has retired from Heartland Bank and Trust Company after more than 42 years in the industry. He most recently served as EVP, Chief Information Officer, for the bank.

Kallembach is a former IBA Board member and served on numerous IBA committees and boards over the years.

Carrollton Hudson

Janes

Morphey

Picton

Hansel

Shaub

• 32 •

CARROLLTON BANK Tom Holloway has joined Carrollton Bank. Holloway was CEO of TheBANK of Edwardsville, now Busey Bank, from 2005 to 2015, and President of Magna Bank in St. Clair County, now Regions Bank, from 1991 to 2005.

Clinton

FIRST NATIONAL BANK AND TRUST COMPANY First National Bank and Trust Company has hired Jon Blockman to serve at VP of Ag and Business Banking.

• November-December 2020

Rockford

STILLMAN BANK The following bank officers have been promoted: Cassie Bull to Director of Marketing; Dawn M. Hudson to Loan Accounting Officer; Marilyn A. Janes to Credit Quality Officer; Melissa S. Morphey to Senior Credit Analyst; and Zachary A. Picton to Controller.

Springfield

SECURITY BANK Olivia Hansel has been promoted to Branch Operations Manager - Monroe Location, and Sandy Shaub has been promoted to Branch Operations Manager - Stevenson Drive.

NEWS & NOTES Eilering is proud to be a banker and feels very fortunate to be part of a wonderful team of banking professional through the years, including the 6 employees (pictured) at Mount Prospect who have been part of his team for the past 40 years.

Feldman to Retire from Federal Home Loan Bank of Chicago

Front row: Tom O’Grady, Senior EVP and head of Commercial Lending, John Eilering, President of the Mount Prospect office of Glenview State Bank, and Linda Larson, SVP and Branch Manager - Back Row: John Tofano, EVP Commercial, Karen Besthoff, AVP Retail Banking, Brett Denker, SVP Commercial Lending, Maria Yeksigian, Universal Banker, Sally Behun, Universal Banker, and Laura Dunning Universal Banker

John Eilering Inducted into the IBA’s 50 Year Club

John Eilering was recently inducted into the IBA’s 50 Year Club for those who have been in the Illinois banking industry for 50 or more years. Eilering is President of the Mount Prospect office of Glenview State Bank, a 99-year old family-owned community bank, and he is a director of the bank. He started his banking career in June 1969 as a systems programmer at The Northern Trust Company, during which he managed a team of system analysts, managed bookkeeping operations, retail banking operations as second vice president, and he was instrumental in opening the bank’s second branch on Oak Street in Chicago.

After a short time at Marina Bank as head of operations, Eilering was recruited by First National Bank of Mount Prospect as VP of operations, returning to his hometown. On his 2nd day on the job, he was to represent the bank on the Cash Station, Inc. Board of Directors, where he remained on the Board (and ultimately the Executive Committee) for sixteen years. He ultimately became President and CEO of FNB of Mount Prospect and after being purchased by NBD Bank, he managed their Mount

The Federal Home Loan Bank of Chicago announced that Matthew R. Feldman, President and Chief Executive Officer, has submitted his intention to retire effective December 31, 2020. Feldman became President and CEO in May 2008.

Prospect and Lake Zurich regions and when NBD and First Chicago merged, Eilering was named manager of the Mount Prospect offices, consisting of $1.5 billion in assets.

In 1997, several former directors of the FNB of Mount Prospect encouraged Eilering to start up a community bank. In just ten years, this bank successfully grew to $550M in assets, with five branch offices. The bank’s success was the result of recruiting legacy staff from Mount Prospect, Lake Zurich, and Des Plaines, many of whom are still part of the Mount Prospect office for Glenview State Bank.

Eilering also has taught banking classes for AIB and Harper Community College, and he has spoken on various banking subjects throughout the country for the Bank Administration Institute. He also has served on the ABA’s Community Banking Council, Membership Council, PAC Committee and Grassroots Council. Currently, he is serving on the ICBA’s Large Bank Council and Grassroots Committee. In 2017, John was elected President of The Bankers Club of Chicago and currently serves on its Executive Committee.

He has been with the bank since September of 2003 and has served in several executive capacities, including Chief Risk Officer and Executive Vice President, Operations and Technology.

Prior to his employment with the bank, Feldman was Co-founder and Chief Executive Officer of Learning Insights, Inc. from 1995 to 2003.

He conceived, established, financed and directed the operations of this privately held e-learning company.

Feldman was previously President of Continental Trust Company, a wholly owned subsidiary of Continental Bank, and served in a number of other roles in capital markets, investments and general management during his 15 years there. He holds degrees from Case Western Reserve University and the Kellogg School of Management

November-December 2020 •

• 33 •

NEWS & NOTES of Northwestern University; he is a life-member of the Kellogg Global Advisory Board. Feldman serves on the Board of Directors of the Office of Finance of the Federal Home Loan Banks. He is a former Chair of the Bank Presidents Conference. He also serves as the Chair of the Pentegra Defined Benefit Plan for Financial Institutions.

(Feldman con't) He is Co-Chair of the Financial Services Pipeline Initiative and serves on the Board of the Evanston Community Foundation.

During his tenure, Feldman transformed the Bank to be mission driven, focusing on the needs of members in Illinois and Wisconsin and championing member directed community investment and economic development activities in the communities in which our members serve.

“I am honored to have been able to serve the Bank, our members, and their communities for so many years and to work alongside such a talented and committed group of colleagues,” said Feldman. “I am pleased that the Board has named Michael Ericson as my successor as I have worked closely with him for many years and have tremendous respect for his ability to lead this Bank into the future with the support of our excellent Executive Team, senior leadership, and Board of Directors.”

“On behalf of FHLBank Chicago’s Board of Directors, I would like to thank Mr. Feldman for his exceptional service to our members and the Federal Home Loan Bank System,” said John Reinke, Chair of the Board of Directors. “He is an iconic, highly principled, greatly admired leader who has profoundly affected us in many positive ways. The results of his longstanding leadership is an example of great stewardship for us all. We are fortunate to name Mr. Ericson, a member of Mr. Feldman’s team for

• 34 •

many years, as our next President and CEO as he is uniquely qualified to lead our Bank into our next great chapter.”

Ericson was named Chief Operating Officer of the Bank in January 2020, and has been with FHLBank Chicago since January 2005 having previously served as Executive Vice President, Group Head, Members and Markets, as well as Executive Vice President, Chief Risk Officer. He is a Fellow of The Daniel Burnham Fellowship of Leadership Greater Chicago.

Bank of Belleville Goes Solar

Bank of Belleville is among the first businesses in the Metro East region to adopt solar energy. The bank had a 68 kilowatt solar energy production system installed this month which will provide as much of the bank’s daily energy usage as the rooftop would allow.

Dunham Retires after 44 Years

Farmers State Bank, Pittsfield, announced that vice-president Tammy Dunham retired after 44 years of service to the bank on August 31, 2020.

Rooftop view of Bank of Belleville’s recently installed solar panels.

Bank of Belleville President and Chief Executive Officer, Ron Stephens, said the bank made the decision to install the panels at their flagship location as part of their long-term commitment to not only the local community but the global one.“I think our decision to utilize solar energy not only speaks to our dedication to environmental stewardship, but also our willingness to embrace new and innovative technologies,” said Stephens.

Dunham began her career at Farmers State Bank on August 23, 1976, in the bookkeeping department and shortly after became a teller. She worked in the Customer Service Department as Supervisor, Assistant Cashier and Assistant Vice-President before moving to Vice-President of Deposit Operations and Security Officer.

“Tammy has been an integral part of Farmers State Bank over the last 44 years, and her achievements and contributions will not be forgotten,” said Nevin Grigsby, President of Farmers State Bank.

• November-December 2020

High Point Financial Services, Inc. Completes Merger, Renames Bank

The merger of Forreston State Bank and Poplar Grove State Bank is complete.

Holding company High Point Financial Services, Inc. has chosen a new name for the bank: Solutions Bank. According to bank president Betsy Johnson, “Both Forreston State Bank and Poplar Grove State Bank have always been focused on providing the best banking experience possible. Combining these banks into one allows us to offer customers expanded products, services, and staff.”

NEWS & NOTES State Treasurer’s Office Announces “Finally Home” Program

The Illinois Treasurer’s Office has announced a new program called “Finally Home” that empowers financial institutions to enhance the way they serve their customers.

The Finally Home Program offers a five year, 10 percent mortgage guarantee to participating lending institutions throughout Illinois. The program focuses on lower to middle income families trying to buy or refinance a home but are unable due to circumstances “but for” the 10% guarantee to the financial institution. The goal is to help Illinois residents avoid predatory lenders and obtain affordable mortgages. For more information, visit www.illinoistreasurer.gov/ Individuals/Finally_Home or contact Rebecca Huston at rhuston@illinoistreasurer.gov or 217-558-6217.

Association of Military Banks of America (AMBA) Honors Trovillion with Scholarship to GSB-Wisconsin

The Association of Military Banks of America (AMBA) has established a scholarship to the Graduate School of Banking at the University of Wisconsin-Madison to honor Raleigh A. “Andy” Trovillion. Trovillion, a long-time former GSB faculty member and Association of Military Banks of America (AMBA) board chairman, passed away in 2019 after a distinguished career in banking.

“AMBA is honored to sponsor this scholarship that combines Andy’s passions for banking and support of our nation’s military. As a long-time AMBA director and past chairman, he energized us to do what we could to ensure military families received the financial education, products, and services they earned through their service and sacrifice. We miss him dearly and believe he would be

humbled by this legacy. Through this scholarship in his name, we hope to enable and inspire future generations of veterans and military spouses who have chosen banking as their profession to continue Andy’s work,” commented Maj. Gen. (Ret.) Steven J. Lepper, president and CEO, Association of Military Banks of America (AMBA).

Bankers eligible for this scholarship must be serving or have served honorably as an active duty, Reserve, or National Guard member of one of the Armed Services of the United States.

Bankers who are military spouses or spouses of veterans are also eligible to apply. This scholarship is available in the amount of $1,500 for each year of the student’s attendance (approximately 1/3 of the annual tuition fees) for a total value of $4,500. Application information: www.gsb.org/about-gsb/aboutscholarships.php

Hoyne Savings Bank and Loomis Federal Savings and Loan Association Announce Completion of Merger

assets of approximately $510 million, $90 million in equity and operates a network of nine branches throughout the Chicagoland area. “We are pleased to welcome Loomis’ customers and employees to our Bank,” said Steven F. Rosenbaum, Hoyne Savings Bank’s President and CEO. David Opas, the President of Loomis Federal Savings and Loan Association, will become a member of the Boards of Directors of Hoyne Savings Bank, Hoyne Savings, MHC and Hoyne Financial Corporation.

First Bank to Acquire Heritage State Bank

Carmi, Illinois-based First Bank (First National Bank of Carmi) and Heritage State Bank, headquartered in Lawrenceville, Illinois, jointly announced a partnership under which First Bank will acquire Heritage State Bank.

First Bank has nine branches in Carmi, Mount Carmel and Grayville in Illinois and Princeton, Evansville, Mount Vernon and Poseyville in Indiana, pairing with Heritage State Bank’s three branches in Lawrenceville, Illinois, and Haubstadt and Vincennes in Indiana. The conversion of accounts and services from Heritage State Bank to First Bank is expected to happen mid-March 2021.

Hoyne Savings Bank, an Illinoischartered savings bank and whollyowned subsidiary of Hoyne Financial Corporation, which in turn is wholly owned by Hoyne Savings, MHC, and Loomis Federal Savings and Loan Association, a federally-chartered savings and loan association, announced the completion of the merger of Loomis with and into Hoyne. Loomis’ banking business will now be operated as a division of Hoyne Savings Bank. With the completion of the merger, the combined institution has consolidated

November-December 2020 •

• 35 •

WELCOME

ASSOCIATE MEMBER NEWS Artisan Advisors, LLC

Kathy Marinangel joined Artisan Advisors as a director. Kathy previously was president, CEO and chairman of McHenry Bancorp, Inc. and its subsidiary, McHenry Savings Bank. She served on the boards of American Community Bankers, American Bankers Association, and Federal Home Loan Bank of Chicago and was an advisor to Federal Reserve Board Chairman Allen Greenspan for two years.

Cinnaire

Cinnaire has announced the promotion of Zina Risk as President, Cinnaire Lending. Zina brings more than 25 years of finance and lending experience to the role, serving most recently as Vice President, Cinnaire Lending. In addition, for the seventh consecutive year, Cinnaire has been named one of Crain’s Detroit Business Cool Places to Work in Michigan. Cinnaire is ranked #82 out of 100 organizations on the 2020 Cool Places List.

Finastra

Finastra has announced Fusion Payments To Go — its payments solution aimed at small and mediumsized banks looking to implement domestic and cross-border payment services in Europe, the US and South Africa. The solution comes pre-packaged, with reduced fixed implementation costs, and rapid, secure and scalable deployment in the cloud on Microsoft Azure. Banks will benefit from reduced costs and risks associated with system maintenance, whilst meeting changing market regulations and customer demand for frictionless and immediate payments. To find out more about the solution, visit https:// www.finastra.com/solutions/payments/ corporate-payments/fusion-paymentsto-go

Promontory Interfinancial Network / IntraFi NetworkSM

Promontory Interfinancial Network is now IntraFi NetworkSM. IntraFi Network’s innovative balance-sheet management solution — known as IntraFiSM Network DepositsSM (formerly CDARS®, ICS®, and IND® deposit solutions) — empowers institutions to increase profitability, grow franchise value, manage liquidity more easily, and serve customers better. To learn more, visit IntraFi.com.

SBS CyberSecurity

Chad Knutson has been promoted to president of SBS CyberSecurity, LLC, and he will continue to serve as the chief information security officer; Jon Waldman has been promoted to president of the SBS Institute; Aaron Gamewell will continue to serve as CEO and the chairman of the board for SBS CyberSecurity; Honey Shelton has been hired as chief strategy officer; and Maarten Cappaert has been hired as project support specialist.

SomerCor

Elisabeth Williams, Vice President and Loan Officer at SomerCor, received the Corporate Woman of Achievement Award at the NAWBO Chicago Annual Celebration of Achievement. She was one of six women leaders recognized for not only their own professional accomplishments, but a commitment to supporting other women on their respective career paths.

ADVERTISING INDEX

• 36 •

Bankers’ Bank (Wisconsin)

800-388-5550

www.bankersbank.com

2

Cinnaire Corporation

517-482-8555

www.cinnaire.com

17

Howard & Howard

312-372-4000

www.howardandhoward.com

14

LKCS

815-223-0391 www.lk-cs.com

39

MIB – Midwest Independent BankersBank 800-347-4642

www.mibanc.com

30

Wipfli LLP

www.wipfli.com

40

800-486-3454

• November-December 2020

WELCOME

NEW ASSOCIATE MEMBERS (as of 11-01-20) PREFERRED VENDOR Approval Payment Solutions Inc. Newburgh, IN www.apsolutions.net

NEW MEMBER BANKS

J&P Site Experts West Bend, WI www.jpsiteexperts.com

> American Eagle Bank

Approval Payment Solutions Inc. offers a complete menu of electronic payment solutions to businesses of every size and type. We are a full service provider, offering an all-inclusive solution for the payment processing needs of any business. APS enables merchants to accept credit and debit cards, gift cards, and checks safely and efficiently. We also offer a full digital marketing suite of products that drive sales into any merchant type and truly helps them flourish in their industry.

J&P delivers comprehensive facility management solutions solely for financial institutions. We take ownership of any needed facilities maintenance tasks, and specialize in working with banks and credit unions with multiple locations. Our customized services include ATM site preparation, installation and cleaning; drive-through lane and vault cleaning; facilities maintenance (painting, flooring, electrical, roofing); signage; safety products (bollards, ADA pads, parking signs); and more.

Backbase USA inc.

Atlanta, GA www.backbase.com

The Kafafian Group, Inc. Bethlehem, PA kafafiangroup.com

We help financials become loved by their customers We want to improve the lives of people around the world.

By making finance easier and more accessible, we’re helping millions of consumers and businesses manage their money in a more meaningful way. It’s a big mission — but one we accomplish by helping financial institutions become digital-first. On our digital banking platform, banks and credit unions can deliver powerful, people-centric solutions and superior digital experiences to their customers.

The Kafafian Group is a team of seasoned industry professionals dedicated to building and delivering meaningful management information to assist in recommending operating efficiencies, evaluating strategic alternatives, developing successful strategies, and improving performance. TKG has helped over 600 financial institutions in over 40 states improve back-office operations, utilize systems more effectively, and develop better management information and reporting.

Elliott Data Systems, Inc. Chesterfield, MO www.elliottdata.com

MerchantPro Express Melville, NY www.merchantproexpress.com

Elliott is a certified, local technology solutions provider of FII and central card issuance to banks. Elliott’s financial card issuance systems are manufactured by trusted, innovative banking security industry leaders.

Our professional services include installation, training, technical support, and customer service. Print high-quality multi-technology debit/ credit cards on-site in minutes!

MerchantPro Express is powered by First Data to provide state-of-the-art, processing services, advanced point of sale equipment, and merchant cash advances to business communities of all different sizes and needs.

> GN Bank When your bank’s a member, you’re a member!

Peters & Associates Oakbrook Terrace, IL www.peters.com Peters & Associates is a Chicagobased leader in delivering technology and cybersecurity support services to organizations of all sizes and industries. From fully managed technology support services to project-based technology implementation, we leverage our expertise to support your unique organizational needs and goals.

While we have a foundational core to our support services and security recommendations, we do not believe in a one-size-fits-all approach. Peters & Associates’ family-owned business has been in operation for nearly four decades. While the technologies, trends, software and hardware have shifted, we have always maintained our focus on aligning technology solutions to your business challenges, not the other way around. The consistency of this vision is anchored by the same leadership that we have had in place since our doors opened in 1981.

November-December 2020 •

• 37 •

THE LAST PAGE

What a Great Find!

While digging through some boxes, IBA Executive Vice President and COO Erich Bloxdorf discovered a fun relic. This 1951 American Bankers Association Code Book was provided to members “for telegraph communication, when desired, with other members. All of the code words used in this book were submitted to the Western Union Telegraph Company and were verified by them as being dictionary words to be counted and charged as one word each in telegrams.”

Great find, Erich! We appreciate you sharing the book with us and look forward to adding it to the IBA’s museum of Illinois banking history!

• 38 •

• November-December 2020