Illinois Banker | March - April 2020

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The Official Publication of the Illinois Bankers Association

March-April 2020


Annual Conference Lineup: Dr. Chris Kuehl

Do You Know Where Your Economy Is?

Dr. Elizabeth Lombardo

The Winning Mindset

Commander Kirk S. Lippold

Leadership & Accountability


Annual Conference


June 15-18 Crowne Plaza Springfield


Howard & Howard— Embracing Change for More Than 150 Years From storefront community banking to interstate banking... From walk-up tellers to virtual banking... Through the savings and loan crisis and beyond the mortgage crisis... We have continued to evolve with our community bank clients since 1869, and we’re here to stay. We’re excited about the future of banking—and helping you achieve your goals.


Donna Goelz

Mark Ryerson

Joe Silvia 309.999.6324 312.456.3406 312.456.3659

Jude Sullivan

Joe VanFleet 312.456.3646 309.999.6317 312.372.4000 Chicago, IL | Peoria, IL | Ann Arbor, MI | Detroit, MI Las Vegas, NV | Los Angeles, CA

March-April 2020 • Vol. 105 / No. 2 •



8 DEPARTMENTS 5 Message from the President and CEO 6 Compliance Corner 34 On the Move 36 News & Notes 39 FLA Update





New Decades, New Solutions Section

41 Preferred Vendor Spotlight 43 Events Calendar 44 Associate Member News 45 New Member Banks

8 10 for the '20s

45 New Associate Members

10 H ope is Not a 2020 Strategy

45 Ad Index

13 Improving the Customer Experience 17 Leveraging Customer Data for Growth 20 Security Layers 22 The CCPA is In Effect: Now What for Illinois Businesses? 25 What You Need to Know About Farmland Rental 28 ANNUAL CONFERENCE: STANDING TALL 30 Our Associate Members

46 The Last Page

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.


Kevin L. Olson Chairman Grundy Bank, Morris



Clark Delanois The Northern Trust Company, Chicago

Tom Gihl INB, Springfield

Martin J. Noll Oak Park

Anthony G. Nestler Hickory Point Bank and Trust, Decatur



Rick M. Francois American Community Bank & Trust, Woodstock

T.J. Burge Community Partners Savings Bank, Salem

Betsy Johnson Forreston State Bank

Richard Knebel The Bradford National Bank, Greenville

REGION 3 Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville

C. Brant Ahrens Chairman-Elect CIBC, Chicago

Michelle L. Gross Vice Chairman State Bank of Bement

Tyler Rouse First Federal Savings Bank of ChampaignUrbana


• March-April 2020

Pamela A. ShararStoppel Wheaton Bank and Trust Company

James R. Hannon First Security Trust and Savings Bank, Elmwood Park Joan Heggen, U.S. Bank, Chicago

Simon P. Yohanan First Bank of Highland Park, Northbrook FLA Chairman Matt Wyatt Busey Bank, Edwardsville


Two Offices to Serve You! Springfield Office: 800-783-2265 • Chicago Office: 800-878-2265 To connect with our staff, use this email format: Executive Administration

Mary Curl, Executive Assistant & HR Manager Pam Macha, Springfield Office Coordinator Legal and Compliance

Carly Berard, Senior Counsel

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 Marcia Stratton, CPA, Director Marie Ann South, Financial Assistant

Phil Talley, Vice President, Insurance Services Casey Widholm, Marketing Manager Illinois Bankers Education Services, Inc. Callan Stapleton, President Kevin Klug, Vice President Bob Anderson, Manager, Education Relations & IT Support Cassie Mattson, Manager, Event Management and FLA

Amy Giacomucci, Law Assistant

Government Relations

Bank and Partner Relations

Aimee Winebaugh, Assistant Vice President;

Amy Sale, Education Assistant

Sarah Cowan, Membership and Government Relations Assistant

Illinois Bankers Group Insurance Trust

Julie Clark, Vice President

Linda Koch Secretary IBA President and CEO, Springfield

Jeffery L. Fauver Catlin Bank

James H. Huiskamp Blackhawk Bank and Trust, Milan

Carolyn Settanni, Senior Vice President and Associate General Counsel

Daniel P. Daly Immediate Past Chairman SENB Bank, Moline

Steven F. Rosenbaum Hoyne Savings Bank, Chicago

Dane Cleven Community Savings Bank, Chicago

Bruce Jay Baker, Executive Vice President & General Counsel

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

Megan Collins Bank of America, Chicago

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

Erich J. Bloxdorf, Executive Vice President & COO

Betsy Johnson Member-at-Large Forreston State Bank

Richard J. Mahoney First Midwest Bank, Chicago

Christopher P. Barton Wheaton


Linda Koch, CAE, President & CEO

William P. Gleason Treasurer The Leaders Bank, Oak Brook

Gary S. Collins Old Second National Bank, Aurora

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

Ben Jackson, Vice President

Denise Perez, Manager, Education & Training

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

Editorial Offices 3201 West White Oaks Drive, Ste. 400, Springfield, IL 62704 217-789-9340 FAX 217-789-5410 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.


Thank you! Oftentimes during the flurry of planning our year’s many programs, meetings and numerous events, we sometimes forget to recognize and thank the people and businesses that help make our work possible! I’m referring to our Preferred Vendors, Associate Members, Partners and many banking and business sponsors, who are loyal supporters of the Illinois Bankers Association year after year. Linda Koch

IBA President and CEO

The IBA’s endurance and success for the past 129 years, and the quality of our programs and member events would not be possible without the generous support of so many associates. Whether it is presenting at an educational program, sponsoring events, submitting important and newsworthy articles, hosting a webinar to inform Illinois bankers or simply providing a quality product or service, we thank you for supporting the IBA and for helping our industry grow and prosper! In this edition of Illinois Banker, we salute our Associate Members. These companies have been approved for associate membership because of their quality services and their commitment to the banking industry. We encourage you to consider them when you are shopping for products and services. And please visit our Preferred Vendors on page 40 to check out the excellent opportunities they offer. These select companies are carefully vetted and chosen by bankers for bankers for quality and service. We are excited to kick off the next decade with these friends. Together, we look forward to bringing quality and innovative services to our members and industry for many years to come. On behalf of the Illinois Bankers Association, we’d like to send a big heartfelt THANK YOU for all you do!

The IBA is pleased to announce that former U.S. Representative Randy Hultgren has been selected to succeed Linda Koch as president and CEO. He will start with the IBA on April 6 and will assume the role of president and CEO on July 1, 2020.

See page 37, and watch for more in the next issue.

March-April 2020 •




Are banks subject to the new Illinois law regarding signage for single-occupancy public restrooms? We do not designate our restrooms as “public,” but we do allow the public to use them on request, including non-customers. These restrooms are contemplated to be used by employees only and are not located near our public entrances.

ANSWER Yes, banks are subject to a recent amendment to the Equitable Restrooms Act requiring that “every single-occupancy restroom in a place of public accommodation or public building shall be identified as all-gender” and “outfitted with exterior signage that marks the single-occupancy restroom as a

restroom and does not indicate any specific gender.” The Equitable Restrooms Act states that “place of public accommodation” has the same meaning as it does under the Illinois Human Rights Act, which defines the term to include banks as places of public

accommodation. Notably, this definition does not make a distinction between public and private restrooms in places of public accommodation. Consequently, we believe banks are required to comply with this law, including banks with single-use occupancy restrooms that are for employee use only.


Would the Taxpayer First Act (TFA) require us to obtain a taxpayer’s express permission to share their tax return information if we obtain this information directly from the taxpayer — as opposed to obtaining it from the IRS? Also, would providing taxpayer information to an examiner or an auditor for the sole purpose of reviewing or auditing a loan file constitute “sharing” under the TFA?

ANSWER No, we do not believe that the TFA’s consent requirement applies to tax return information provided by a taxpayer — it applies only to tax return information provided by the IRS. However, a customer’s tax return information remains subject to financial privacy laws, which may require the customer’s consent before disclosure to a third party, unless an exception applies. The TFA amended the Internal Revenue Code to require that “[p] ersons designated by the taxpayer under this subsection to receive return information shall not use the information for any purpose


• March-April 2020

other than the express purpose for which consent was granted and shall not disclose return information to any other person without the express permission of, or request by, the taxpayer.” This consent requirement applies when the “Secretary [of the Treasury]” discloses “the return of any taxpayer, or return information with respect to such taxpayer, to such person or persons as the taxpayer may designate . . . .” Consequently, the TFA’s consent requirement should apply only when the IRS provides a taxpayer’s tax return information to a person designated by the taxpayer, not when a taxpayer provides its

own tax return information directly to a person. However, a customer’s tax return information remains protected by both Illinois and federal privacy laws and, absent an exception, should not be shared with third parties without the customer’s consent. For example, Regulation P includes an exception to its opt-out requirements for sharing information with examiners, but there may be other situations to which no exception applies and for which your customer’s consent will be required.


We have a customer whose son has power of attorney for the customer’s account. The son suspects a family member may be trying to take advantage of his father and would like to limit the amount of money the customer may withdraw from his account. The son has not been appointed guardian of the customer’s estate. Does the son have the power to limit what funds our customer can withdraw from his account?

ANSWER We recommend reviewing the son’s power of attorney document to determine whether he has the authority to control the customer’s account. The Illinois Statutory Short Form Power of Attorney for Property provides the power to execute “financial institution transactions” in line item (b). This power includes the authority to “control all accounts and deposits” — assuming that this line has not been crossed out on your customer’s power of attorney document. We believe this power, if operative, would include the authority for the son

to limit the father’s withdrawals from the account, and it even would authorize the son to close the account and establish another one on behalf of the father that does not grant him withdrawal privileges (although obtaining a court-ordered guardianship would be preferable for this approach to minimize intra-family challenges after the fact). We should note that your customer, as the principal granting the power of attorney, may amend or revoke his son’s authority at any time if he wishes to have greater access to his account.

Importantly, if your bank suspects the financial exploitation of an elderly customer, state law encourages you to report the activity to the Illinois Department of Aging. Also, federal law may require you to file a suspicious activity report (SAR) if certain conditions are met. Your bank must file a SAR for suspected elder financial exploitation when a transaction aggregates at least $5,000, and your bank may voluntarily report suspected elder financial exploitation even when this threshold has not been met.

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 ( We also publish a free weekly e-newsletter highlighting the latest regulatory developments, select recent Q&As, and other useful information – let us know if you want to subscribe!

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

March-April 2020 •



10 for the'20s

Here is Financial Shares Corporation’s list of ten key macro factors that Illinois Bankers and Bank Directors should pay heed to as we look to the decade ahead. To be clear, there are many other factors at play; these are ten that caught our attention.

By George M. Morvis and George M. Morvis, Jr., Financial Shares Corporation


s we enter a new decade, how prepared is your financial institution to deal with the changes that it will face? How well does your leadership team and board of directors deal with change?

#1 A growing nation, a shrinking state. When the 2020 census figures have been taken, tabulated and released, they are expected to show that Illinois’ population is essentially flat to down 1% from 2010, versus overall US population growth of around 7.7%. Based on long term population projections released in 2019 by the Demographic Research Group at the University of Virginia’s Weldon Cooper Center for Public Service, that trend is anticipated to continue in the next decade (national population growth of 7.6%, Illinois population decline of 0.6%).

#2 An aging nation, an aging state. Hidden within the state’s population stability is a more ominous trend: during the 2010s (utilizing the University of Virginia projections), the under 25-aged population declined by 4.5%, the 25-64 year old population declined by 3.3%, and the 65+ population increased by 24.5%. In the decade ahead, the under 25 population is projected to decline by 2.2%, the 25-64-year-old population anticipated to decline by 5.0%, and the 65+ population is projected to increase by 17.1%. The loss of prime working age population can only be viewed as disconcerting.

#3 Where I live, there are rainbows. Illinois today is home to a greater percentage of minorities than a decade ago, and this trend will continue in the decade ahead. In addition, the percentage of residents of Hispanic origin is increasing.

Adapt or perish, now as ever, is nature's inexorable imperative. – H.G. Wells •8•

• March-April 2020

#4 Out of many, one. From one, many. In human terms, the statistics we are talking about above represent not abstract numbers, but rather your communities, your customers, your talent pool, your work force, and your future. What is happening demographically in your markets? You not only should know; you need to know. Whether a community, regional, or nationally focused financial institution, your company (including your board, management team and staff) should largely reflect the communities it serves (and if the community is changing, your institution should be evolving as well). And then you need to figure out how to market to each one of these people, whether collectively as a market, in groups as a market segment, or as an individual business owner, worker or consumer on a one-to-one basis.

#5 Increasingly irrelevant. Illinois will likely lose one and may lose two U.S. House seats as a result of the 2020 census due to the lack of population growth relative to other states. Declining relative population has cost Illinois at least one electoral vote after each of the last four censuses. Consequently, the State will also likely lose some (population-based apportionment) federal funding. Make no mistake: it matters. Can the specific impacts be anticipated? Perhaps. One way to start: follow the people. Given the consequences, bankers should rank high among the community leaders promoting 2020 census participation.

#6 Sustained peak omnichannel banking. FSC’s five decades in bank consulting have shown the following to be true regarding delivery channels: (1) if you build it, they will come (in varying numbers); (2) once they use it (no matter how much), they will expect it to be available; and (3) if you take it away, (no matter how much they used it), some users will be upset. Given larger demographic trends happening in the State, and the rates of channel use and adaption by age (and other demographic factors), you may have more delivery channels at decades’ end than today. Figure out how to manage that portfolio of channels, and especially how to pay for it all in a stable or declining net interest rate margin environment.

#7 Not dead yet. Because of the same factors, it is highly unlikely that the 2020s will be the decade where we finally see the (oft-predicted) death of the traditional bank branch in Illinois. At the same time, it is highly likely that there will be fewer bank branches at the

end of the decade than at the start. Whether you have one location or 1,000, your institution needs to clearly articulate its branch banking strategy (preferably as part of a larger service delivery channel strategy that is integrated into an overall retail banking strategy).

#8 The (consolidation) beat goes on. There were 696 FDIC-insured banks operating in Illinois as we entered 2010. As we enter 2020, that number will be closer to 420. It’s simple: you can be a “consolidator,” you can be a “consolidatee,” or you can elect not to play in that game. Whatever path you choose, make sure that everyone in senior leadership understands the path you are on.

#9 The regulatory pendulum. Reversing a trend seen in the first half of the decade, the Trump administration has been generally favorable from a bank (and overall business) regulatory perspective. At some point in the next decade (perhaps as soon as 2021) the pendulum will swing the other way. It always does.

#10 Disruptors will disrupt. The fintech community isn’t going anywhere. Artificial intelligence is here. You can fight it, you can observe it, or you can embrace it and participate in it. But in any event, you will need to adapt to it. For most banks in Illinois, that means working collaboratively with a whole collection of partners, vendors and other suppliers with whom many of us have not worked before. It also suggests a fundamentally different skill set from those that we traditionally have sought may be arising. And, because the difference between ordinary and extraordinary is that little something “extra”, here’s one more to ponder:

#11 Taxing our way to prosperity. Winston Churchill once said, “I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” While Illinois clearly needs to address its state fiscal budget issues, bankers will need to fully anticipate and understand the impact that such actions will have on the economy, their communities and their customers, including those who may migrate to sunnier climes. Sounds like an interesting concept to put to a popular vote. About the authors: George M. Morvis is president and CEO, Financial Shares Corporation, and George M. Morvis, Jr., is managing director and CEO, FSC Hawaii. IBA Associate Member

March-April 2020 •



By Ken Levey, Kaufman Hall

Hope is Not a 2020 Strategy:

Focus on Relationships in Challenging Rate Environment


t’s no secret that the current rate environment makes it difficult for banks and other financial institutions to drive profitability. At the beginning of December, just 68 basis points separated the three-month interest rate (1.60%) and 30-year rate (2.28%). For comparison, in pre-Great Recessions days of 2005 when banks were flying high, the Net Interest Margin (NIM) was far more profitable due to wider spreads. This situation is made even more dire by the possibility that the yield curve could flatten or even invert for a long period of time. Throw in the uncertainty and nervousness among consumers and businesses that often accompanies a presidential election year, especially when the economy is slowing, and it appears unlikely there will be much (if any) improvement in 2020. What all this means is banks and other financial institutions can no longer rely on the spread between the interest paid on deposits and the interest collected from loans to deliver profitability and growth. They must find alternative strategies. To weather the difficult rate environment, many institutions are already performing “below the margin” assessments of how to lower operating

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• March-April 2020

costs, increase fees, and reduce tax exposure and non-interest expenses. But saving your way to profitability is not a long-term strategy; you can only decrease expenses for so long. Banks need to understand how to manage their portfolios. One of the most effective approaches institutions can follow — understanding and taking advantage of the value of the institution’s relationships with its clients — relies on data they already possess. Institutions just need to be able to extract it. As with many things, however, it’s not quite that easy. According to the report, “2019 Profitability Perspectives: 10 Findings Reveal the Need for Specific Leadership Action,” more than 90% of financial executives surveyed said monitoring key profitability drivers, such as customers and relationships, is important. Despite that belief, such parameters are not currently monitored in more than 60% of institutions surveyed. This is an unfortunate deficiency, because industry studies show that the greatest value to overall profitability is derived from the top 1% of an institution’s client base. Placing greater focus on selling additional products to these clients and

taking advantage of their influence on others to further expand opportunities will help mitigate the effects of an overall difficult rate environment. Fortunately, gaining a full understanding of the scope and value of each relationship (including the risks the institution faces if the client becomes unhappy) is now much easier with the introduction of technology that automates this process. This technology can support effective portfolio management, quickly parsing through all of the institution’s data to rank each relationship, from most profitable to least. Armed with this information, executives can develop products and strategies appropriate to their profitability levels to gain a greater share of wallet. For example, analysis may show that you have a number of relationships with a high volume of deposits, but profitability is low. Upon investigation, you find that a client in one such relationship is on the board of a medical clinic, but the clinic has only a business checking account with your institution. There may be a cross-sell opportunity with higher-profitability instruments: perhaps they have a need for an operating line of credit, or a new commercial real estate loan. Understanding the profitability of the current relationship and layering on potential new business can certainly, if priced correctly, improve performance. Having these capabilities is imperative for banks. This process offers a value beyond the shorterterm benefit of the money made from a new loan. It also increases the “stickiness” of that client. The more products and services the client has with the institution — especially those accompanied by features such as direct deposit that work to create closer ties between the institution and the client — the more likely those clients are to remain for the long term. Financial institutions that understand the relationships and profitability of each client also can use that information to determine pricing for a variety of products. In other words, it may be worth giving a high-value client with a great deal of influence among other clients a loan at 3.25% rather than 3.75% to maintain satisfaction, particularly if it will lead to other higher-value opportunities. You may also be able to ensure the total relationship remains profitable by offsetting a rate concession with the requirement that a certain level of deposits be added. This strategy helps avoid the need to compete on price alone and empowers the relationship manager to ensure profitability hurdle rates are met while offering multiple options to the client — a win-win. Of course, this approach doesn’t mean lowervalue clients should be ignored. It just means the

opportunities are different. For these clients, exploring cross-sell opportunities with high-value products or replacing maturing accounts with more attractive terms may be more appropriate. To really derive the full benefits of relationship management, however, the institution must look beyond the core relationships and present considerations by building a robust calculation and modeling engine that also considers both historic and future profitability. This model should start with using fund transfer pricing (FTP) to gain the most accurate view of exactly who and what is driving that profitability. FTP (and overall profitability) should be performed first at the account level. Think of accounts as the ingredients in a meal. Once the value of each individual account is understood, it can be aggregated to accurately measure profitability across not only specific accounts, but also for individual customers, products, relationships, or even loan officers. By rolling up the account information in different ways, the institution will gain greater insights into who and what is driving profitability today and where the best opportunities lie. This doesn’t mean financial institutions should throw caution to the wind around loans. As we learned in 2008, it is still important that institutions not sacrifice credit quality to increase loan volumes, even if rollbacks of federal regulations are making it easier to do so. Here again, analytics that provide deeper insights into relationships and trends will help draw the line between risk and reward to avoid losses that will impact profitability — which today is more critical than ever. The tools for this type of in-depth relationship analysis exist, although 68% of respondents to the Profitability Perspectives survey said their institutions lack an automated means to analyze the profitability of complex relationships. Investing in these tools and accompanying processes will not only deliver the capabilities described above; it also lets management tie incentive compensation to relationship profitability, aligning individual and institution goals. In the current hyper-competitive market, traditional methods of increasing income (such as raising fees for early withdrawals and late payments) could lead to long-term damage to the institution’s reputation with repercussions long after NIM improves. The better approach is to gain an in-depth understanding of every account and relationship, and nurture them as appropriate to increase revenue while delivering a higher level of client service. About the author: Ken Levey is the vice president of financial institutions software at Kaufman Hall. IBA Associate Member

March-April 2020 •

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• March-April 2020


Improving the Customer Experience By Sid Haas, LKCS


he banking industry has been under tremendous pressure in recent years – pressure to change and adapt with technology, pressure from a new breed of non-traditional competitors, and pressure from an upside-down interest rate environment. Just to name a few.

Congratulations! You’ve been managing to

successfully meet those challenges and thrive under the pressure. You’re adapting to the changes, establishing and implementing your advanced digital strategies, evaluating and working with Fintech partners to stand out in the marketplace, and crunching the numbers to ensure you meet and exceed all of the necessary benchmarks along the way. There’s one critical aspect to everything that you are doing, and everything that you should be doing: your customer. At the end of the day, at the end of the year, at the end of the decade, it will be the customer that ultimately determines your success. More specifically, it will be the Customer Experience, or CX. Banks are going to compete throughout the new decade not on their products and services, not on their rates and fees, but on the customer experience that they provide across all of their service delivery channels. CX is about much more than customer service. Customer experience is your customers’ overall impression of your company or your brand based on all of their interactions across the entire customer journey. CX is critically important to the sustained growth of your bank. Ensuring a positive customer

experience builds brand loyalty, spreads word-ofmouth marketing, gains recommendations, and reduces complaints.

Providing an Exceptional Customer Experience in 2020 • Customers, especially younger customers,

look different now than they did 10, 20 or 30 years ago. But they still want the same thing they’ve always wanted – to be taken care of. • As you’ve probably seen, customers expect everything faster now. That’s simply because technology enables that kind of speed. And you need to account for that. • Customers care that they can connect with you, the way they want to connect with you, when they want to connect with you. That may be in person or by phone call, desktop computer, smartphone, tablet, text message, online chat, social media, mobile app, or other. They don’t know which channels you are comfortable with, and they don’t care. They want to use the channel that’s the easiest and most convenient for them. • You understand your systems and their limitations. Some systems have access to all of the data, all of the time. Some only access some of the data. Some run batch processes that only update every so often. Again, your customers don’t care. They expect you to have all of the information, all of the time, across all channels. So when they check their balance at the branch, it should be the same as it is in online banking, and the same as it is at the ATM. When they find that it’s not, their customer experience suffers. March-April 2020 •

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• To the customer, your employees are all

one big team. So when customers communicate with someone to get their questions answered or problems resolved, they expect that person to be able to get it done or effectively escalate the issue on their behalf. Again, it doesn’t matter if departments don’t have the same systems, or access to the same applications or datasets. When technology doesn’t work effectively, neither can teams; frustrating both customers and employees. • Customers expect to take action online. Paper forms in the bank need to be converted into online forms on the website. Customers don’t care if these are integrated into your core platform or not. Fillable PDFs aren’t good enough. Create an online form that they can submit securely. This continues to get easier and less expensive. Customers don’t care if you need to re-key the information (you would need to do this from a paper form anyway). They hate having to come to the bank unless absolutely necessary. Don’t waste their time. • Design matters. Usability matters even more. Your web sites and mobile apps are essential elements of the customer experience. They must be beautiful and functional. Technology does not age well. Do not let these get stale or CX will suffer. Customers upgrade their phones every 2 years…how often do you upgrade your website? • Mobile is a must. LKCS’ web developers have been saying this for years, but we still see bank web sites that are not mobile-friendly. This is no longer acceptable. At all. Your mobile experience should be as good as, if not better than, your desktop experience. • Customers expect you to know them. They expect you to fully understand the relationships they have with you at all times. They want you to watch out for their best interests and anticipate their needs. Data is your friend. Your ability to manage and use the data that you have to personalize timely communications with your customers can differentiate you from your competitors.

How We Can Help

Continuous CX Improvement

LKCS is well suited to partner with you to improve the customer experience. We invite you to learn more about our products and services by visiting us online at or calling us at 866.552.7866.

Like many things, developing and delivering an outstanding customer experience is not a one-time effort. It requires continuous effort and devotion. It begins with a customer-first mindset that your board and executives buy into so that the rest of the bank will follow. After that, listen to your customers. Gather customer feedback through surveys, interviews, support tickets, chat logs, etc. Talk to your customers. Ask open ended questions and really dig into the answers. Send surveys to people who close their accounts and have bad experiences to learn what you did wrong. Train your team to listen. • 14 •

• March-April 2020

1. As a full-service marketing services provider dedicated to

the financial industry, LKCS plans and executes multi-channel marketing strategies for our clients. These range from individual product and service campaigns to sustained datadriven onboarding and acquisition initiatives. Whatever your goals or initiatives, we can design a methodology for you to reach them, launch the deliverables, report on the results, and refine for incremental progress.

2. Our programmers and data experts provide solutions for

our customers to gain actionable insight from their big data. We’ve built the DataFlex platform to combine enterpriseclass business intelligence and analytics with a drag and drop interface. The result is nearly effortless analysis allowing clients to improve marketing efficiency and leverage their data to personalize the customer experience.

3. Our Digital Services team is standing by to refresh your

website or add next generation capabilities. For example, it is now feasible to deliver a personalized experience to your site’s visitors – presenting content based on their user profile, online behaviors, bank relationships, and demographics.

4. LKCS has amassed a wide-ranging array of top tier market-

ing and customer communication solutions that we employ across all channels for our clients. Extend pre-screen loan offers based on credit bureau data via direct mail, e-mail, or even included in your account statements. Send e-mail follow up communications to “anonymous” customers who used a retirement calculator but didn’t contact one of your investment representatives. Enable mortgage seekers to pre-qualify themselves through your web site in less than 5 minutes. Let your business owners share access to their e-statements with their trusted employees, accountant, or tax professional without needing access to online banking or their personal account data.

The customer experience expectations of today’s consumer have been set high by companies outside of the banking sector, like Amazon, Apple, and Starbucks. Customer satisfaction now depends more on the quality of how you engage and communicate with them than on the slight advantages of your products and services over your competitors.

Aim for steady, continuous improvement. Empower your staff to identify ways they can do better and recognize their accomplishments. Spread the energy through your bank so CX success goes viral. About the author: Sid Haas is Vice President of Business Development for LKCS. IBA Associate Member





Join this illustrious group by connecting with us at or 217-789-9340.

April is National Volunteer Month! Consider Volunteering to Serve on an IBA Committee

Are you looking for the opportunity to connect with colleagues, peers and other industry professionals? Are you willing to share your expertise, expand your thinking, learn from the experiences of others or contribute the next great idea? Are you looking for a chance to enhance your leadership skills and influence positive change? The Illinois Bankers Association relies on members like you to provide volunteer committee leadership and support for its many programs, events, products and services. As a committee volunteer, you will join an exclusive group of leaders as you work to shape the future of our industry and enjoy great personal and professional rewards. Volunteers are recognized in a number of ways: • An exclusive e-newsletter just for our volunteers • Committee listing in the Illinois Banker magazine, the annual Bank Directory and on the IBA website, and • Each year, one volunteer is honored as the IBA’s Volunteer of the Year

The IBA offers a wide range of committee volunteer opportunities listed below. Some committees have eligibility requirements.

Agricultural Advisory Committee Audit and Finance Committee Fintech Committee Human Resources Committee Illinois Bankers PAC Board Technology and Operations Committee

Annual Conference Committee Communications and Marketing Committee Future Leaders Alliance Board Illinois Bankers Business Services Board Illinois Bankers Scholarship Committee Women in Banking Committee

Associate Membership Committee Compliance Division Advisory Committee Government Relations Committee Illinois Bankers Education Services Board Membership Committee

The new committee year begins July 1. Show your interest by connecting with Mary Curl at or 217-789-9340. Or fill out the form at

RISE s d r a Aw



JUNE 16-18

Annual Conference Crowne Plaza Springfield


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


recognizes Illinois banks for going above and beyond in the area of community service in their communities. Deadline is April 16.

2019 Award Winners BANKER OF THE YEAR Thomas Hough, Carrollton Bank COMMUNITY SERVICE Alliance Community Bank, Petersburg The Leaders Bank, Oak Brook Peoples Bank & Trust, Pana

Submit your nomination at • 16 •

• March-April 2020


Leveraging Customer Data for Growth A by Samantha Vance, Main Street, Inc.

recent survey revealed that 57% of banks say internal silos are their biggest obstacles to big data success. Sharing customer data across departments and even across marketing channels can be challenging, but the benefits are worth it. Your bank may not be leveraging retail customer data to its full potential, but the good news is that it is a big opportunity…and it can be easy to implement. Customer segmentation analysis transforms a basic customer and address list into an insightful and powerful targeting tool. Data has the power to drive customer acquisition, improve customer relationships, unlock new opportunities and increase profitability. Analytics provides the knowledge to empower your institution to drive retail customer growth. How can data drive your growth strategies? There are typically three basic questions marketers ask themselves. 1. Where are my customers coming from? 2. Who are my customers? 3. How can I find my best potential customers?

The best way to unveil your most profitable targets is by gaining a detailed understanding of your existing retail customers. Think about your branches. How is each one unique? How are the customers you serve at each branch different? How do the market areas for each branch vary? How can you understand those differences to drive growth at each branch strategically?

Every location has unique differences

Understanding your various customers and the trade area differences that exist allows you to market to those differences to accelerate growth. Identifying key characteristics of your customers at each branch improves your ability to invest and trim marketing dollars in order to improve advertising efficiency and drive ROI. If customer data is so powerful, why don’t most community banks leverage it? Here are a few common myths we often hear from community banks. MYTH: “As a community bank executive, I know my customers like the back of my hand. I don’t need analytics.”

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Recently, I asked two community bank executives from the same institution who their customer was. They both gave me completely different answers based on their day to day interactions with customers. Analyzing their data showed that their customer base is made up of different types of consumers with varying demographics, spending behaviors and financial propensities. And those customer types look different across their branches. Analytics helps you move from thinking you know who your customer is to knowing who your customer is. MYTH: “Customer analytics costs too much for a financial institution my size.” Instead of investing substantial time, money and resources into a customer analytics platform, a financial institution might partner with a service provider, like Main Street, that provides affordable customer analytics & segmentation solutions.

an acceptable growth strategy. According to Capgemini Consulting, banks that apply analytics to customer data have a four percentage point lead in market share over banks that do not. Budgets are not endless. At the end of the day, acquiring new customers can be costly. Using customer data-driven profiles & actionable strategies will improve your marketing efficiencies across your media channels and improve response rates, resulting in better ROI. About the Author: Samantha Vance is Vice President of Marketing for Main Street, Inc. IBA Associate Member


A targeted approach gets results

Understanding your customer’s DNA can serve as a blueprint for locating the best potential customers for each branch and how best to reach them based on their media preferences and likelihood to utilize your products. Before receiving their customer analysis, one of our clients thought the best way to reach the local Hispanic community was through commercials on a select local TV station. But, analysis showed the local Hispanic residents preferred newer television shows and weather programming early in the morning. This knowledge armed the institution with the intelligence needed to execute relevant marketing strategies to the right audience at the right time. As a result of this targeted approach driven by the analytics, they experienced a 50% increase in new Hispanic customers. Banks find themselves in the same situations as many SMBs. To grow, they need to know more about their customers and prospects— where they live, what motivates them, and how to reach them. With so much customer data at your fingertips, intuition alone is no longer • 18 •

• March-April 2020

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March-April 2020 •

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Security Layers 4 Key Areas All Bank CEOs Should Consider By Brendan McGowan, Safe Systems, Inc.


n today’s world of escalating cyber-attacks, the importance of security layers can not be overemphasized. This is especially true for financial institutions, which are obligated to safeguard customer information, prevent identity theft, and protect their operations. No entity, computer network, or individual is immune to cyber threats, but a layered approach to security can significantly minimize cybercrimes.

Is there a security layer missing?

Monitoring the internal network, outside of the endpoints, is important and an area that many banks don’t focus on. While most organizations have perimeter defense technologies, such as firewalls, intrusion prevention systems and endpoint technologies like anti-malware software, many don’t pay close enough attention to the internal network itself. Having stronger internal network security is vital to prevent breaches and internal attacks and makes for a stronger overall network.

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• March-April 2020

While the IT department and security officers typically determine and recommend security measures, it is ultimately the CEO who is responsible for the overall health and well-being of the bank. Therefore, financial institution CEOs should think about and ask the following questions:

What is the single most effective layer?

User training is hands down the most effective layer. Users are considered to be the first line of defense, and sadly are often seen as the weakest link in the security chain. To strengthen this link and prevent attacks, user education and training is important.

What are some security layers all banks should have?

Security layers represent multiple levels of defense against potential bad actors and cyber-attacks. As such, a layered security program should involve a

variety of components, depending on the assets protected, vulnerabilities, and the institution’s operations. A layered security program entails using different controls at different points in a transaction process. The underlying strategy is that a weakness in one control is generally compensated for by the strength of another control. According to the Federal Financial Institutions Examination Council (FFIEC), some effective controls include: • fraud detection and monitoring systems that

include consideration of customer history and behavior and enable a timely and effective institution response; • using dual customer authorization through different access devices; • using out-of-band verification for transaction; • a thorough and up-to-date patch management system; • vulnerability scanning and penetration testing; and • end-point security and resilience controls.

What are the three main types of controls?

Security controls generally fall into three types: protective, detective, and reactive (or corrective). Protective controls are tactics a bank can implement to prepare for and prevent a cyberattack. They encompass things like dual controls, segregation of duties, system password policies, access control lists, training, and physical access controls. Detective controls indicate that a cyberattack is taking place. Even the audit process can be detective because it uncovers control weaknesses by looking for failures after they have happened. Reactive controls are implemented to respond to an attack in progress. Essentially, they’re intended to mitigate exposure after something happens. New types of cyber-threats and incidents are constantly emerging, and CEOs need to be prepared to protect their institutions and the data they house. With the proper controls, layered security can be an effective

way for financial institutions to defend network perimeters and endpoints against potential cyber threats. There are many other areas related to security layers that CEOs and senior management should be considering. To gain more insight into those areas, as well as other key topics for CEOs to be aware of, download the white paper, Top IT Areas Where CEOs of Financial Institutions Should Focus: Important Questions and Answers at https://info.

About the author: Brendan McGowan is Safe Systems’ chief technology officer and oversees the development of strategic technology solutions that enhance a customer’s ability to manage IT in a compliant manner. IBA Associate Member


what you need to know Download the expert’s guide to banking the cannabis industry. Written by the founders of Abaca, a fintech purpose-built to enable compliant, profitable cannabis banking by America’s community banks. Download at:

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March-April 2020 •

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The CCPA is in Now What for Illinois Effect: Businesses?

By John Isaza, Esq., Rimón Law


y now you probably have been inundated with alerts about how the sky is about to fall because of the much-anticipated California

Consumer Privacy Act of 2018 (CCPA), which became effective on January 1 (but is not scheduled for enforcement until July 1, 2020). To help alleviate most concerns (or that feeling of dread), this article provides an overview of the most salient and impactful CCPA requirements, including a summary of recent clarifying amendments that the governor signed into law this past October. Before jumping into the specifics of the CCPA, let’s recap why the CCPA is so significant. California’s new law is the most expansive and far reaching omnibus privacy law enacted by any state to date. This is particularly significant when that state represents the fifth largest economy in the world, and as discussed below, it applies whenever any business — anywhere — captures personal information of a person residing in California.

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• March-April 2020

Summary of the CCPA

The CCPA grants consumers more control over and understanding of their personal information. It defines personal information broadly as: “information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked directly or indirectly, with a particular consumer or household.” This basically means that any piece of data that could be linked or associated with a person residing in California must be given special treatment to ensure CCPA compliance. Seemingly innocuous data such as cookies accessed from a user’s computer, or incidental demographic data collected when a visitor goes to a business website, would fall under this definition. To comply, businesses must be prepared to address the following consumer requests, and by extension, also address in their privacy policy: (1) requests to disclose the categories and specific personal

information collected about the consumer, (2) requests to disclose categories of sources from which the information is collected, (3) requests to provide the business purposes for collecting and/or selling the information, (4) requests to disclose categories of third parties with which the information is shared, (5) requests to delete personal information, and (6) if the business sells the consumer’s personal information, or discloses it for a business purpose, requests to disclose the categories of information and the identity of the third parties to which the information was sold or disclosed. Additionally, and perhaps most unique to the CCPA, a business cannot discriminate against a consumer who opts out of the sale of their personal information. If this opt-out is selected, businesses are prohibited from discriminating against consumers for exercising this right. Prohibited discrimination could include charging a different price for consumers who opt out, or providing a different or lower quality of goods or services for doing so (although businesses may offer financial incentives to collect consumers’ personal information). Finally, unless consumers under the age of 16 specifically and affirmatively opt in, businesses are prohibited from selling their personal information. Consumers between the ages of 13 and 16 years may opt in without parental authorization, but parents must provide authorization for consumers under the age of 13. The California Attorney General will enforce the CCPA, but consumers also will have a private right of action to sue for the unauthorized access and exfiltration, theft, or disclosure of their nonencrypted or nonredacted personal information.

Recent CCPA Amendments

California legislators created the CCPA in haste, creating many areas of confusion. As a result, California legislators have been busy enacting various clarifying amendments, ranging from simple grammatical corrections to substantive carve-outs. One of the more substantive amendments involves the CCPA’s extremely broad definition of a consumer. Under the original legislation, the definition of a consumer was interpreted to include employees of the organization collecting the data. This prompted passage of the much-publicized “employee exemption,” signed by the governor on October 11, 2019.

This exemption is basically a one-year reprieve from compliance for employee data, which is designed to give California legislators a one-year deadline to pass a separate employee privacy bill. Note that if an employee privacy bill does not pass, the one-year deadline will expire and employee data will need to be afforded the same treatment as any other California consumer data. For the time being, per this exemption, the following requirements will not apply to personal data in these categories of individuals associated with the data collector: (1) job applicants, (2) employees, (3) owners, (4) directors, (5) officers, (6) medical staff members, and (7) individual contractors. The employee exemption also excludes emergency contact information that the business may collect, as well as information needed to administer benefits. Notably, the employee exemption only applies if the business collects or uses the personal information exclusively within the context of the individual’s role or former role in the business. Also, the exemption still requires notice on the employer’s use of employee data, and the employee still has a private right of action for mismanagement of employee data. This means that employers with employees or contractors in California still should review and revise their employee privacy notices accordingly. Related to the employee exemption is a new exemption that also is set to expire in one year. Under this new exemption, personal information that a business collects in a business-to-business (B2B) transaction is exempted from most CCPA requirements, but only if such data is collected when a California resident makes a written or verbal communication or transaction with a business “within the context of the business conducting due diligence regarding, or provision or receiving a product or service to or from such company, partnership, sole proprietorship, non-profit, or government agency.” Even so, a consumer’s private right of action for violations of the CCPA continues to apply in the B2B context. Their opt-out and non-discrimination rights also continue to apply. Therefore, business contacts still may opt out from having their information sold to third parties, and they still may not be denied goods or services or charged different prices because they have opted out. As such, a business must comply with all CCPA requirements, such as notice, access, opting-out and data deletion if the personal

March-April 2020 •

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information belonging to potential business/ customer contacts is obtained from a third party, such as a marketing list provider, until a communication or transaction occurs with the business “within the context of the business conducting due diligence regarding, or provision or receiving a product or service to or from” such business.


The bottom line is that CCPA has arrived and is here to stay, subject to various recent and future amendments. Now the rest of the country is starting to fall in line, with at least eleven other states from Hawaii to Maine proposing different flavors of omnibus privacy legislation. If you are doing business that in any way touches California consumers, it would be prudent to fall in line with CCPA compliance, beginning with taking a close look at your Privacy Policy and those of your third-party vendors with whom you may be sharing data. If you think you are staying out of California, which is very hard to avoid given the sheer size of its

population, then you need to keep an eye on the several other states with pending legislation. It appears that the east coast is more likely to align itself with European Union’s GDPR, while the west coast is aligning with the CCPA — they are significantly different in several respects. In any event, privacy in the United States is not an issue where you can simply check a box once and forget about it. Your policies should be reviewed annually, while keeping in mind the growth of your business and the different privacy laws of the states where you may be accessing consumers’ personal information, as that may be defined in those states. About the author: John Isaza is a California-based attorney and Vice-President of Information Governance Solutions at Access Corp., which features cloud-based software for records information management, and he also is Partner and chairs the privacy, records management and information governance practice of the Rimon Law firm. He may be reached at IBA Associate Member

It takes more than good intentions to transform communities. It takes capital, development capacity and trusted partnerships. For over 25 years, we’ve been connected to and involved in the communities we serve. We’ve listened and learned, and consistently turned intentions into real transformation. And with more than $7.3 billion in community impact, our commitment to creating healthy communities has never wavered. The Return on Investment: Safe, Affordable Homes. Healthy Communities. Better Lives.


Transforming Communities. Transforming Lives. • 24 •

• March-April 2020



What You Need to Know About Farmland Rental in the New Decade By Corbett Kull, Tillable


arming is undergoing a digital transformation. With the help of AgTech software and the advent of digital leasing, farmland valuation and evaluation practices rely on more hard data points than ever before. As digital leases become the norm for many farmers in 2020, more farmland owners will adopt better data practices and begin to use data to tell the story of what’s likely their greatest asset. As Farming as a Service (FaaS) companies work to improve farm operation management through AgTech solutions, farmers and farmland owners are quickly getting a lot more tech-savvy, and what they’re discovering is money left on the table: American farmland is underrented by an estimated $8 billion dollars each year. The good news is that new tools and technology are giving landowners better visibility into the economic performance and stewardship of their asset than ever before. As a banker in the middle of the corn belt, here’s what you need to know about the future of farmland rental.

The Farmland Rental Landscape in 2020

The majority of rented farmland is still owned by non-operator landlords – folks who do not farm the land themselves but rent it out, typically on an annual basis for cash rent. But farmland isn’t like an apartment building a landlord can manage on the side and sell on a whim when they’re looking for a little liquidity. Because it’s highly valuable, generally stable, and expensive to purchase, farmland owners are fortunate to have this asset on their hands – most farmers need to rent land from others in order to maintain a thriving operation.

Even as the world’s events seem to be speeding up every day, it’s worth noting that farmland transfer is relatively rare. While the final numbers from last year are still being counted up, only 10 percent of the 93 million acres of land in farms was expected to be transferred between 2015 and 2019. This isn’t just because farmland is a valuable resource in financial terms: the stewardship and long-term health of piece of tillable land builds its value. So, how will you encounter farmland in 2020? As a banker, you may find yourself working with…

• A farmer who owns the land they work. • A landowner who rents their land out to a farmer for cultivation.

• A person positioned to inherit farmland. • A person who is faced with the rare opportunity to purchase farmland.

In any of these scenarios, it’s important to know a few basics to ensure that the farmland is being correctly valued and that everyone knows just how valuable a farmland rental can be (in the event that they’re considering a sale or transfer event.

How to Evaluate Farmland in the Era of AgTech

In the age of big data, agriculture isn’t exempt from current trends. And this is a good thing. Especially if your client is renting their farmland, it’s wise to encourage them to check to ensure they’re getting fair market rent. There are a few ways to do this:

• Get an appraisal. If you’re not already familiar with a farmland appraiser in your area, you can

March-April 2020 •

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locate someone through the American Society of Farm Managers & Rural Appraisers.

• Check the soil’s health. Testing the soil is a

great way to get a baseline sense of the land’s health. We recommend testing the soil every 3-4 years or after any major environmental event.

• Evaluate the farm against local bench-

marks. While every farm is different and microclimates can impact the weather field to field, you can look to the USDA’s data on average rent and average yields by county to get a broad view of the local market.

• Take a look at past yields. You can learn a

lot from how much the land produces each year, and a history of yield production can help tell the story of a piece of farmland (and more importantly, predict future yields).

Whether your client, their cousin, or another farmer is working the land, it’s important to ask these questions to ensure that the land is being taken care of so that its long-term value is preserved. In the event that the land does change hands down the line, having a robust record of annual yields and soil samples will be immensely helpful when it’s time to tell the story of that farmland’s health and potential. While these recommendations may not sound hyper-technical, they are a step forward for the agricultural community and a sign of where farmland management is headed in the years to come.

Farmland Rental Best Practices: Be Data-Forward

“Data transparency” isn’t just a buzzword – it’s part of an industry-wide trend toward better farmland stewardship in Illinois, as folks increasingly recognize the importance of sustainable practices in supporting their household economies and the state at large. Farmland owners are just starting to understand the amount of information available to them (often only if they’ll ask for it), and a lack of information is one of the primary reasons that farmland is underrented today. If your client is renting their farmland, there are a few things they should do to make sure they’re getting fair market rent:

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• March-April 2020

• Have a written lease. Farmers are beginning

to get accustomed to digital leases, leaving handshakes behind in favor of security and data transparency. This coincides with landowners increasing interest in measuring the health of their land.

• Evaluate the lease. Every farmland rental

agreement should include proof of insurance and commitments to sustainable practices, along with soil and yield data delivery requirements.

• Maintain thorough digital records. Farmers

and farmland owners should maintain an organized set of records, including past rental agreements, yields, soil test results, and receipts for any inputs.

• Have a business plan. To help a farmland

owner, whether they’re new to the game or not, you’ll need to get a sense of their objectives, whether they’ve been meeting them, and if they have any imminent plans to improve or change the land.

Whatever your client’s age or life stage, it’s never too soon to talk about succession planning and how to preserve the value of the farmland within a family. This is a huge, meaty topic, but you don’t have to rely on your own expertise to give them advice. The Illinois Farm Bureau regularly hosts webinars on this topic, and the experts at the local Illinois Farm Service Agency’s county office may also be able to help counsel your client on the options and programs available to them.

Farmland Is Worth More Than Any Monetary Valuation

Although much has changed in the past decade, the importance of farmland to Illinoisans has not. For farmers and landowners, farmland isn’t just the source of their annual income or their family’s economic security, it’s part of their legacy and the cornerstone of their community. The acres that make up a farm are tied to the people that work them and their futures. Whether your client is a retiring farmer or a child who’s faced with the question of whether to sell the family farm, remember that the value of the land is far greater than the pricetag. About the author: Corbett Kull is Co-founder and CEO of Tillable. IBA Associate Member

2020 Scholarships Exclusive to IBA Member Banks

IBA Future Leaders Alliance (FLA) One-Year Program Two Scholarships Awarded

Graduate School of Banking Human Resource Management School

March 29 – April 3, 2020 | University of Wisconsin − Madison One Scholarship Awarded

ABA Stonier Graduate School of Banking

June 4-11, 2020 | University of Pennsylvania, Philadelphia One Scholarship Awarded

Graduate School of Banking

August 2-14, 2020 | University of Wisconsin − Madison Two Scholarships Awarded

Apply Online Today! | 217-789-9340 |


2020 Halfway Point - Do You Know Where Your Economy Is? Dr. Chris Kuehl, Managing Director, Armada Corporate Intelligence

Come this summer, we will have seen at least half of the year pass by. What will we know? Was that recession threat real? Have the elections started to pivot toward economic issues? Is there any renewed hope for the global economy and what has the Federal Reserve been thinking? The summer months are a good time to take stock and consider how the year will play out.

The Winning Mindset

Dr. Elizabeth Lombardo Speaker, Psychologist and Media Personality

Dr. Chris Kuehl Managing Director Armada Corporate Intelligence

Dr. Elizabeth Lombardo has helped hundreds of clients achieve and exceed their physical and personal goals of happiness, confidence and success. She takes the audience through a formula to master mindset by applying cuttingedge research in neuroplasticity. Learn specific action tools to optimize your thinking and boost success in your personal and professional lives.

Leadership and Accountability When It Matters Commander Kirk S. Lippold U.S. Navy (Ret.)

Commander Kirk S. Lippold, U.S. Navy (Ret.) was the commanding officer of the USS Cole when it came under a suicide terrorist attack by al Qaeda in 2000. Using this attack as a backdrop, he conveys how the principle of integrity created an environment for leadership where his crew felt imbued with a sense of ownership, seizing the opportunity to be responsible for their ship and not just their jobs. He shares why his “Five Pillars of Leadership” are must-have business tenets for any team.

Dr. Elizabeth Lombardo Speaker, Psychologist and Media Personality

Commander Kirk S. Lippold U.S. Navy (Ret.)

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• March-April 2020


The Regulators’ Perspective: Navigating the Supervisory Landscape Moderator: Bruce Jay Baker, Executive Vice President and General Counsel, IBA Panelists: Brian James, Deputy Comptroller, Central District, OCC Mark Medrano, AVP, Supervision and Regulation, FRB Chicago Christopher J. Newbury, Deputy Regional Director, FDIC Chasse T. Rehwinkel, Acting Director, Division of Banking, IDFPR John J. Schroeder, Regional Director, CFPB

Cybersecurity Frameworks and Controls: Strategies for Success Steve Sanders, Vice President of Internal Audit, Computer Services Inc.

June 17

Executive Briefing on Current Issues and Opportunities for Banks Robert M. Fleetwood, Partner, Group Co-Chair John M. Geiringer, Partner, Regulatory Section Leader, Barack Ferrazzano Financial Institutions Group How to Create Amazing Customer Experiences That Differentiate Your Bank Joe Micallef, CEO, Bank Strategist & Coach, Grow Up Sales Consulting, and Sales Coach, BankTalentHQ



The Marketplace

The Marketplace is always the center of activity. Network with your friends and colleagues while visiting with exhibitors and discovering opportunities for growth and improvement at your institution.

Night at the Museum

Join your peers in giving a grand welcome to our new Illinois Bankers president and CEO, Randy Hultgren, at Springfield’s most celebrated, unique venue, the Abraham Lincoln Presidential Museum.

Hospitality Suite


Bring your bling and celebrate with us as we raise a glass to the retirement of longtime IBA President and CEO Linda Koch. This black tie-optional event is sure to be the blowout celebration of the new decade! The evening begins with a culinary masterpiece prepared by Linda’s brother, Chef Tim Bucci. In 2019, Chef Bucci passed the grueling Certified Master Chef Exam, becoming one of only 67 master chefs in the United States. Our night continues with the prestigious Banker of the Year award and the ever-popular Illinois Bankers PAC Silent Auction. The fun doesn’t stop there! Join in an evening full of surprises capped off with the high-energy vocals of The Shenanigans, central Illinois’ most popular cover band.

Nobody does hospitality like the IBA! After enjoying dinner in Lincoln’s hometown, gather on the rooftop of the Crowne Plaza for a nightcap, desserts and music in a relaxed and casual atmosphere.

America’s Only Singing Painter

Witness the extraordinary talent of Joe Everson, whose art career exploded when a video of him singing “The StarSpangled Banner” while painting a live-action artwork went viral with over 220 million total views, and millions of “likes,” “shares” and “comments.” Joe opens the conference as we honor the flag.

Be sure to register for these fun events!

• Illinois Bankers PAC Golf Outing, Panther Creek Country Club • Route 66 Illinois Bankers PAC Experience • The Best of Springfield Spouse/Guest Tour

FLASH SESSIONS (25 minutes) Strategies for Independence and the Importance of Shareholder Liquidity Charles M. Crowley and Christopher M. Chapman, Managing Directors, Boenning & Scattergood, Inc 5 Social Strategies Guaranteed to Grow Your Business Brett Jackson, CEO, Systemax Deposit Strategy: Plan, Build & Defend Your Plan for Growth Brian Cox, Bank Consultant Merger Integration: Realizing Value and Avoiding Pitfalls Timothy Reimink, Managing Director, Crowe LLP

Which Core? The Buyer’s Journey Bret Herbert, Senior Vice President of Project Management, Strategic Resource Management Tax Update for Financial Institutions – from CECL to Tax Reform: What You Need to Know Doug Jenen, Partner, RSM US LLP ’Cause We are Living in a Digital World, and I am a Digital Bank Joseph E. Silvia, Partner, Howard & Howard Attorneys PLLC The New Face of Banking: Industry Trends That are Driving the Need for New Talent Tom Blackwell, Director, Financial Services, and Mark Angott, President, Angott Search Group Risks and Rewards of Banking Marijuana Related Businesses Robin Guthridge, CAMS, CRCM, Senior Manager, Wipfli LLP

Register at 217-789-9340

The Business Case for Diversity and Inclusion Leslie Drish, Director of Diversity and Inclusion, Federal Home Loan Bank of Chicago

a SHOUTocOiaUteTs! to our Ass

The IBA values the relationships we have with all of our Preferred Vendors, Financial Services Industry Members and Associate Members.

21st Century Financial Services AAIM Employers' Association

ABA Insurance Services Inc. Preferred Vendor

Allied Solutions, LLC

Bancare, Inc.


Ameren Illinois

Bank Compensation Consulting

Barack Ferrazzano Kirschbaum & Nagelberg LLP

Angott Search Group

APPI energy

APPI Energy Preferred Vendor Armstrong Teasdale LLP Artisan Advisors, LLC


Bankers' Bank Top Tier Sponsor/ Financial Service Industry

Ascensus Preferred Vendor Association House of Chicago


ATM Solutions Inc.

Ag Resource Management Alkami

Banker's Dashboard Preferred Vendor

All Covered Finance Practice

Baker Tilly Virchow Krause, LLP

• March-April 2020

bitsIO Inc.

Blanchard Consulting Group

BOK Financial Institutional Advisors Top Tier Sponsor

BankMarketingCenter. com Preferred Vendor



Buckley LLP

AuctionTime/FleetEvaluator Baker Hill



Bankers Healthcare Group, LLC

ABG Retirement Plan Services Preferred Vendor

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BeeSocial, LLC

Broadbent & Associates, Inc.


BankTalentHQ Preferred Vendor

Central Capital Markets Chapman and Cutler LLP

We couldn’t provide all of the services, training, products and other opportunities to you without the continued support of these companies. We encourage you to look to the IBA, Illinois Bankers Business Services (IBBS)

Charles Vincent George Architects Chatham Financial

Cinnaire Corporation

Clark Hill PLC Clearpoint Advisors, LLC Comcast Business Community Investment Corporation Comptroller of the Currency Computer Services, Inc. (CSI) CoNetrix

Contact the IBA at 217-789-9340 or for more information.

Elliott Data Systems, Inc.




Covington & Burling LLP

Executive Benefits Network


CRA Partners

Farmer Mac


Federal Deposit Insurance Corporation

First Bankers' Banc Securities, Inc.

Country Banker Systems, LLC

CrossCheck Compliance LLC

CLA - Peoria Top Tier Sponsor

and these companies when choosing industry partners, products and services for your financial institution.

Fiserv, Inc.

Crowe LLP Cummings, Ristau & Associates, P.C. Dama Financial, Inc.

Deluxe Corporation Preferred Vendor Detalus Dougherty Funding LLC Duncan-Williams, Inc. Ellie Mae, Inc.


Federal Home Loan Bank of Chicago Top Tier Sponsor Federal Protection Inc. Federal Reserve Bank of Chicago Federal Reserve Bank of St. Louis FHN Financial

Financial Shares Corporation financialshares. com

Floodplain Consultants, Inc. Preferred Vendor Freddie Mac Frye-Williamson Press, Inc. Funnelback Giffin Winning Cohen & Bodewes PC Graduate School of Banking Green Check Verified

March-April 2020 •

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a SHOUT OUT to our Associates! Mills Marketing

Grow UP Sales Consulting Haberfeld Heber Fuger Wendin, Investment Advisors Hinshaw & Culbertson LLP Holland & Knight LLP Holland Partners, Inc. Hovde Group LLC Howard & Howard Attorneys PLLC Howell Financial Services, Inc. HR Source

Illinois Finance Authority

• 32 •

Invictus Group

LRS Web Solutions

Iron Comps Ironcore Inc.

Main Street, Inc.

Jack Henry Banking

Market Insights, Inc.

Jackson Lewis PC

Marwedel Minichello & Reeb, P.C.

Janney Montgomery Scott LLC Kaufman Hall

Mathis Marifian & Richter, Ltd.

Kestner Insurance

KeyState Captive Management Preferred Vendor Lewis Rice LLC

• March-April 2020

Momkus McCluskey Roberts LLC Neocova NewGround NFP Northland Securities Nova (a division of Tri-North Builders) Oak Ridge Financial Services Group, Inc.

Meyers Chatfield Group

Kerber, Eck & Braeckel LLP

Illinois Farm Business Farm Management Association

Integrity Technology Solutions

LKCS Top Tier Sponsor

Keefe, Bruyette & Woods, A Stifel Company

Illinois Department of Financial & Professional Regulation

Inlanta Mortgage, Inc.

Investors Title Insurance Company Preferred Vendor

MIB - Midwest Independent Bank Top Tier Sponsor/ Financial Service Industry

Office Depot Preferred Vendor GPOHome?id=49305665 Olsen Palmer LLC Pehlman & Dold, P.C.

Michael Trokey & Company, P.C.

Pentegra Retirement Services

Mid America Banking Insurance Services, Inc.

Performance Trust Capital Partners, LLC

Mike Hines & Associates

Pilgrim Christakis LLP

Piper Jaffray & Co. Plansmith Corporation Plante Moran

Ruff, Freud, Breems & Nelson Ltd. RFBNLAW.COM S&P Global Market Intelligence

Vedder Price P.C.

SomerCor 504, Inc.

Velocity Solutions


Verafin VGM Forbin

PrismPremier Profit Resources, Inc. ProfitStars Promontory Interfinancial Network, LLC PULSE, a Discover Company

Safe Systems Sandler O'Neill + Partners, L.P.


Strategic Resource Management Preferred Vendor Synchrony Financial Financial Service Industry

Thompson Coburn LLP


Thomson Reuters

Welch Systems, Inc.


West Monroe Partners, LLC


Windsor Mortgage Solutions Financial Service Industry

RedRock Information Security

Scantron Technology Solutions

Remedy Consulting

Scheffel Boyle

Rimon, P.C.

Schiff Hardin LLP

Risk Management Association

Schmale Insurance Agency, Inc.

Ritchie Brothers Auctioneers

Scott & Kraus, LLC

Ultimate Software

RSM US LLP - Chicago

Sheshunoff & Co. Investment Banking

UMS Banking

Shield Compliance SmithAmundsen LLC

Visible Equity Voluforms

Quarles & Brady LLP

RSM US LLP - Peoria

Virtual Innovation, Inc.


SBS CyberSecurity Preferred Vendor

RSM US LLP - Davenport

Vining Sparks

Travelers Insurance, Inc. UFS, LLC

United Bankers' Bank Financial Service Industry Vanguard Vantage Point Solutions

Wipfli LLP Top Tier Sponsor WolfPAC Integrated Risk Management Wool Capital Partners, LLC Works24 Worldpay

March-April 2020 •

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ON THE MOVE Bloomington, MN


Gold Patterson

United Bankers’ Bank Dwight Larsen, president and CEO of United Bankers' Bank (UBB) is pleased to announce the hiring of Peter Ziegler as vice president, correspondent banking officer.






CNB BANK & TRUST N.A. CNB Bank & Trust N.A. announces the retirement of Larry Franklin, senior executive vice president and chief banking officer, effective March 31. He will transition to senior vice president/ consultant and represent and promote CNB in Alton and surrounding markets. He will continue in that role, as well as continuing as a director of CNB, through 2020.


FIRST FINANCIAL BANK NA Adam Stonecipher has been named vice president, commercial and agriculture lending and serve as commercial banking officer at First Financial’s One Towne Centre location in Danville.



HICKORY POINT BANK Hickory Point Bank announces that Lori Gold Patterson has been appointed to its board of directors. Gold Patterson is the founder of Pixo, a Digital Engineering consultancy in Urbana.


MIDLAND STATES BANK Eric T. Lemke has been appointed chief financial officer of the company and Midland States Bank, its wholly-owned subsidiary. • 34 •

• March-April 2020


JERSEY STATE BANK Thomas Schnelt has been hired as vice president of lending.

Madison, WI

BANKERS’ BANK Bankers’ Bank has welcomed three team members to its commercial banking team: Paul Watson as vice president, commercial loan officer, Tim Begg as the new vice president – leasing, and Linda Lease as the new senior vice president, commercial leasing.


FIRST MID BANCSHARES, INC. First Mid Bancshares, Inc. has appointed Zachary Horn to the company’s board of directors. Horn will also serve on the board of directors of First Mid Bank & Trust, which is a subsidiary of the company. Horn is the president and founder of Metro Communications, a facility-based provider of wholesale telecommunications services.


THE PEOPLES STATE BANK OF NEWTON The Peoples State Bank of Newton welcomed Sean Nettleton and Frank Dhom to its team. Nettleton will primarily manage the Crop Insurance Division, and Dhom will serve as ag/commerical lender.

Oak Brook

INLAND BANK AND TRUST Michael Corr has been appointed senior vice president and manager of business banking.

Omaha, NE

FIRST NATIONAL BANK OF OMAHA First National Bank of Omaha (FNBO) announced that Stan Free has been named regional vice president, community banking, and Frank Roberts and John Kretchmer have both been promoted to managing director, community banking.


CORNERSTONE NATIONAL BANK & TRUST COMPANY Cornerstone National Bank & Trust Company announced that Jeffrey T. Boundy has been named president and chief executive officer. Already holding the title of president, Boundy takes over the CEO position from Thomas P. MacCarthy who stays on as chairman. Boundy is one of the founders of the bank, which was created in 2000.


PEOPLES BANK AND TRUST Peoples Bank and Trust announced the following organizational changes: Ashley Basso to vice president, business banking and senior deposit officer; Jennifer Nagle to vice president, consumer banking; Sarah Van Huss to co-compliance officer and assistant BSA officer, in addition to AVP, consumer banking; Jeff Grimmett to assistant vice president, consumer banking, in Chatham, Waverly and Palmyra; Lindsay Lopian to consumer banking officer in Chatham; Rob Lyman, community bank president, will assume responsibility for business banking in White Hall in addition to Waverly; and Jacob Thomas has been promoted to vice president, business banking in Charleston.


FORTRESS BANK Ken Mauser has been named senior vice president - funding and investment officer at Fortress Bank in Peoria. Parks





Terre Haute, IN




SECURITY BANK Cassie Trask has joined the Security Bank team as commercial credit administrator.

HEARTLAND BANK AND TRUST COMPANY Larry E. Alton has been named retail manager for the Heartland Bank and Trust Co. office at 1985 DeKalb Ave. in Sycamore.

FIRST FINANCIAL BANK First Financial Bank welcomes Bonnie Virden as vice president, cash management officer, serving businesses and organizations in Illinois. Virden is located at the Neil Street Banking Center in Champaign.


FIRST NATIONAL BANK OF WATERLOO The First National Bank of Waterloo and Robert Hoffmann, Chairman of the Board, announced that Rick Parks will succeed Gary Hemmer as the bank’s president. Parks will become the bank’s ninth president spanning the bank’s history of 108 years. Parks follows Hemmer, a former IBA Chairman, who recently announced his retirement effective June 30, 2020. (See page 36.)


AMERICAN COMMUNITY BANK & TRUST Rick Francois, co-founder of American Community Bank & Trust, has been named president as part of the bank’s long-term succession plan. He will continue his role as chief credit officer. Andy Hartlieb, one of the original organizers and a 20-year veteran of American Community Bank & Trust, has been named CEO. Additionally, Mark Trivellini has been promoted to senior vice president commercial banking, and Matt Horist, in addition to his current position as vice president commercial banking, assumes the role of treasury management team leader. The bank also has established a new office in Elk Grove Village, which will be led by Michael Bagley.

March-April 2020 •

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Gary Hemmer Announces Retirement First National Bank of Waterloo President and CEO Gary Hemmer announced his intention to retire on June 30, 2020.

Steve Tock Receives Spirit of Caring Award

“Gary has provided strong and steady leadership over the past 21 years as President and CEO of First National Bank of Waterloo,” said Robert Hoffmann, Chairman of the Board of Directors. “Under his tenure, the bank has grown from about $150 million in assets with three banking centers to about $600 million in assets with 13 banking centers at the time of his retirement.” Hemmer will remain on the Board of Directors and has assumed the role of Chairman of the Board. Hoffmann plans to retire from the board and will become Director Emeritus.  Hemmer started his career at First National Bank in St. Louis where he worked for six years.  He also worked at First National Bank of Belleville for 17 years before coming to FNB Waterloo.  He has had the opportunity to become a leader within the industry at both the state and national levels as he served as Chairman of the Illinois Bankers Association and Treasurer of the American Bankers Association. He is currently serving as Chairman of the ABA Insurance Service Board of Directors. Hemmer received a Bachelor of Science degree in Business from the University of Illinois and an MBA in Finance from St. Louis

• 36 •

University.  He also graduated from the ABA Stonier Graduate School of Banking.  In 2007, he was recognized as the IIBA’s Banker of the Year, and in 2001, he was the recipient of Northwestern Financial Review’s Rising Star for Illinois.

• March-April 2020

Steve Tock, Hickory Point Bank & Trust, has received the Spirit of Caring award, which is the highest recognition that the United Way of Champaign County gives out each year. Award recipients exemplify the highest ideals of community service and commitment to United Way and the community. Congratulations, Steve!

Bank Purchase Completed

Central Bancshares, Inc. of Muscatine, Iowa has completed the purchase of Walcott Trust and Savings Bank of Walcott, Iowa. Walcott Trust and Savings Bank, which was organized in 1893, has total assets of approximately $125 million and serves a primary market area of Scott and northeast Muscatine Counties in Iowa through two locations. Central Bancshares’ total assets have increased to over $1 billion with the acquisition. It now operates three banking charters, serving an estimated 34,000 households and businesses, through 16 locations in eastern Iowa and west-central Illinois. In addition to the Walcott bank, the company owns CBI Bank & Trust with locations in Coralville, Davenport, Kalona, Muscatine, Washington and Wilton in Iowa and Buffalo Prairie in Illinois, and F&M Bank with offices in Brimfield, Galesburg and Peoria, Illinois.

Thirty-Six Attend Midwest Agricultural Banking School Enrollment at the 47th session of the Midwest Agricultural Banking School was 36 students. The students came from five states; Indiana, Ohio, Illinois, Michigan, and Kentucky. The School is co-sponsored by the Indiana, Illinois, Kentucky, and Michigan Bankers Associations; the Ohio Bankers League; and the Department of Agricultural Economics at Purdue University. Dates for the 2020 school are set for November 30th through December 2nd. Information for the 2020 school will be distributed by the State Banking Associations in early fall of 2020. Contact Laurie Rees at (317) 387-9380, Lrees@ indianabankers. org for more information about the 2020 Midwest Agricultural Banking School.

Randy Hultgren Named President and CEO of the Illinois Bankers Association and as a member of the Illinois House of Representatives from 1999-2007, while also serving on the financial institutions committees in both chambers.

Former U.S. Representative Randy Hultgren has been selected to succeed Linda Koch as president and CEO of the Illinois Bankers Association (IBA). He will start with the IBA on April 6, and will assume the role of president and CEO on July 1, 2020. Hultgren, an Illinois native, has served in a number of elected offices for over 24 years. Most recently, he served in the United States House of Representatives from 20112019, representing the 14th Congressional District of Illinois. In Congress, he served on both the House Financial Services Committee and the Science, Space and Technology Committee. Prior to his time in Congress, he served as a member of the Illinois Senate from 2007-2011,

In addition to his public service, Hultgren has worked in finance, banking and law. He currently is a senior vice president of commercial lending with Wintrust Financial, and, before being elected to Congress, he was a vice president of Performance Trust Investment Advisors.

"It is a privilege to be the next in a long line of stewards for this venerable organization, and I will take this responsibility to heart every day."

“His outstanding reputation, demonstrated leadership skills and proven ability to connect with all Illinois bankers as well as our other important stakeholders truly stand out. We are confident Randy is the right person to lead us into the next decade.” “I’ve known Randy since 1999, when he was first elected to the Illinois House,” said Koch. “From the beginning, I was impressed with his understanding of how important the banking industry is to our local communities and his genuine interest in helping to advance banking.”

Hultgren is a graduate of Wheaton Academy and Bethel University, where he obtained a double major in Political Science and Speech Communications. Hultgren received his Juris Doctorate degree from the IIT ChicagoKent College of Law in 1993.

“I am truly honored to have this opportunity to represent the Illinois banking industry at the helm of the IBA,” Hultgren commented. “I have always admired this organization’s outstanding work, and, in particular, its integrity in dealing with our elected officials and its bipartisan approach to representing the entire banking industry. As the IBA enters its 130th year, it is a privilege to be the next in a long line of stewards for this venerable organization, and I will take this responsibility to heart every day.”

“We selected Randy to lead our organization after a nationwide search,” noted IBA Chairman Kevin Olson of Grundy Bank.

Hultgren and his wife, Christy, have four children, and the family will be relocating from Plano, Ill., to Springfield, Ill.

March-April 2020 •

• 37 •

First Waterloo Bancshares, Inc. Acquires Best Hometown Bancorp, Inc.

Gary D. Hemmer, President & CEO of First Waterloo Bancshares Inc., announced that the acquisition of Best Hometown Bancorp, Inc., the parent company of Best Hometown Bank, was completed on February 5, 2020. The bank has two banking centers serving Madison County in Collinsville and Maryville, Illinois.

“This expands our organization into Madison County,” said Hemmer. “Best Hometown Bank has been serving the Madison County area for the past 133 years and we are excited about the opportunity to partner with them and to build on their tradition.” Hemmer noted that Best Hometown Bank would remain a separate bank until systems are converted later in the year.

As of December 31, 2019, First Waterloo Bancshares, Inc. had total assets of $492 million. The bank currently has 11 banking centers serving Waterloo, Columbia, Millstadt, Dupo, O’Fallon, Smithton, Effingham, and Stewardson, Illinois. Best Hometown Bancorp, Inc. had total assets of $112 million as of December 31, 2019.

April is Financial Literacy Month! America's Banks Aim to Reach ‘One Million Minds’ The American Bankers Association Foundation has launched its 2020 financial education registration campaign, calling on banker volunteers to register for a range of successful, industrywide programs designed to enhance financial education across the country. In its continued effort to build financially resilient communities, the ABA Foundation has set a new goal for 2020 – to reach one million consumers with its banker-led financial education lessons.

Teach Children to Save Day is April 24 The first ABA Foundation initiative in 2020 is Teach Children to Save. Teach Children to Save is a national campaign launched by the ABA Foundation in 1997 that encourages bankers to visit schools or youth groups in their local communities to introduce or augment learning about money and real-world financial concepts. Teach Children to Save also includes lesson plans that teach students what banks do, how they support local communities and what skills are needed to become a banker. Last year, 9,850 bankers reached approximately 330,700 students through Teach Children to Save.

• 38 •

• March-April 2020

Teach Children to Save Day will be celebrated on April 24, but bankers can hold their lessons throughout the year. Registered bankers will receive real-time customer support, program and communication materials, and will be featured in a list of participating banks on the ABA Foundation’s website.  When registering for Teach Children to Save, bankers are encouraged to register for the ABA Foundation’s other 2020 financial education initiatives: • Get Smart About Credit, now in its 18th year, is a campaign of volunteer bankers who visit classrooms across the country to help teens and young adults learn how to use credit wisely. Bankers also teach students about protecting their identity, managing their money, paying for college and the various careers available to them through the banking industry. Although Get Smart About Credit Day is celebrated in October, bankers are encouraged to also give lessons throughout the year.  • Safe Banking for Seniors. Launched in 2015, this national campaign of volunteer bankers helps older customers and their financial caregivers understand and mitigate the risks of fraud and financial abuse.

Register at

FLA UPDATE Class of 2020

The Class of 2020 met in Springfield for their 5th session. They heard from the IBA’s Carolyn Settanni regarding Current Compliance Challenges and CRA Modernization and then moved into a jam-packed presentation on Accounting and ALM with Steve Schick and Josh Engelkemier from Plante Moran. Joe Micallef closed out day 1 sharing his Top 10 Tips for Leadership Excellence. On day 2, the class went head-to-head as they battled it out for the title of Most Profitable Bank during their Bank Simulation challenge facilitated by the IBA’s Brian Hoffman. Congratulations to Jacqueline Cashmore (First Bank of Highland Park), Josh Wohltman (Bank of Belleville), and Paul Carstensen (Hoyne Savings Bank) for claiming the victory!

Class of 2021

The Class of 2021 embarked on their 14-month journey in Bloomington and became the largest class to date with 28 students! We are thankful for the commitment of IBA member banks who send students each year to this incredible program, but also to the 9 new member banks who sent a future leader for the first time this year. Thank you! IBA President and CEO Linda Koch welcomed the class and discussed the importance of staying involved with the IBA post-graduation, and Matt Wyatt (FLA Chair) and Andrew Butts (FLA Vice-Chair) shared their experiences and explained how beneficial the leadership training was for their careers. The remainder of the two days was spent diving into their leadership journey with Steve Thomas. The class learned how a person’s quality of life is directly influenced by their workplace culture, why it’s important to practice curiosity and how to become more aware of how they show up and where they lead from. Now that they have the foundation set and the roots planted, it’s time for their next leadership step – see you in April!

March-April 2020 •

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ABA INSURANCE SERVICES Richard Flenner | 800-274-5222 ext. 1325 APPI ENERGY Jamie Polend | 800-520-6685 ASCENSUS Joe Doolittle | 800-346-3860

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

Property • Blanket coverage Buildings & Contents • Broad Perils • Earthquake & Mine Subsidence Liability • Aggregate per location up to $10M • Worldwide Coverage Auto • Broad Form Endorsements • Mortgage Holders E&O • Workers Compensation Other Specialized Coverages for Banks

Get a quote. Phil Talley 855-422-4756 • 40 •

• March-April 2020

BANKER’S DASHBOARD Bob Reid | 800-933-2211 ext. 159305 BANKMARKETINGCENTER.COM Neal Reynolds | 678-528-6688 BANKTALENTHQ.COM Brian Hoffman | 217-789-9340 DELUXE CORP. Bob Reid | 800-933-2211 ext. 159305 FLOODPLAIN CONSULTANTS INC. Craig Callahan | 317-858-4420 IBA 401(K) ABG RETIREMENT PLAN SERVICES Pat Bearss | 309-397-5039 INVESTORS TITLE INSURANCE GROUP Dana Lyons | 217-622-0299 KEYSTATE CAPTIVE MANAGEMENT Travis Holdman | 260-227-0265 OFFICE DEPOT Isaac Mares | 855-337-6811 ext. 12878 SBS CYBERSECURITY Ethan Landon | 605-270-3321 STRATEGIC RESOURCE MANAGEMENT Uma Zielinksi | 901-681-0204 UFS, LLC Tom Szews | 262-376-3000



Saving your bank money on office products has never been easier By Brian Hoffman, President, Illinois Bankers Business Services The IBA has partnered with Office Depot to provide association members significant discounts on a wide range of office and banking supplies, furniture, print and copy services, promotional products, cleaning supplies, break room provisions and more. Program benefits include: • Discounts up to 80% off Manufacturers Suggested List Price on a core list of 950+ frequently ordered products featuring many high use commodity items. • Your own customized list of up

to an additional 75 items using the same steeply discounted pricing matrix as the core list. • Free, next-day delivery on orders over $50, depending on your location. • Access to the award-winning Business Services Division website for placement of orders, online catalog, stock availability, order history, product returns, and usage reports. • The support of an account manager who is responsible for total account management customer satisfaction. • Discount program for your employees.

If you are purchasing supplies from another major vendor, consider requesting a quote to see how the IBA’s Office Depot program can save you money. If you are purchasing supplies from a local vendor or customer, the Office Depot program may allow you to purchase products and solutions that your local vendor may not offer. To receive your no obligation price quote, contact Isaac Mares at 855-337-6811 x 12878 or Isaac.

• •

March-April 2020 •

• 41 •

spring Cost: $799



SEMINARS, CONFERENCES AND FORUMS APR 2 New Accounts in Illinois – Springfield APR 3 New Accounts in Illinois – Oak Brook APR 16 Basic Personal & Business Tax Return Analysis – Springfield APR 17 Basic Personal & Business Tax Return Analysis – Oak Brook APR 20 Credit Compliance, Part 1 – Oak Brook APR 21 Credit Compliance, Part 2 – Oak Brook APR 21 Ag Lending Update – Utica APR 22 Credit Compliance, Part 3 – Oak Brook APR 22 Ag Lending Update – Springfield APR 23 Deposit Compliance – Oak Brook APR 23 Ag Lending Update – Salem APR 24 BSA/AML Compliance and Regulators’ Forum – Oak Brook APR 24 Technology & Operations Forum – Springfield MAY 5-6 Consumer Lending Bootcamp – Springfield MAY 7-8 Consumer Lending Bootcamp – Oak Brook MAY 7 Small Bank CEO Forum – Bloomington MAY 8 CFO Forum – Springfield MAY 12-14 Commercial Credit Underwriting School – Oak Brook

MAY 13 MAY 15 MAY 19 MAY 20 MAY 20 MAY 21 MAY 22 MAY 22

Marketing Forum – Springfield Compliance Conference – Lisle IRA Essentials – Springfield Advanced IRAs – Springfield HR Forum – Frankfort HR Forum – Springfield Marketing Forum – Peru CFO Forum – Schaumburg

WEBINARS APR 1 No Foolin’ - This is How Top Producers Prospect for Business* APR 2 Work Appearance, Dress Codes and Employer's Liability for Being Out of Fashion* APR 7 Overdraft Requirements & Best Practices* APR 8 Excel Explained: Creating Interactive Spreadsheets* APR 9 Core Management Skills* APR 9 Treasury Management: A Powerful Tool to Increase Deposits and Fee Income* APR 10 New FFIEC Business Continuity Management Handbook* APR 14 What You Need to Know About Escrows* APR 14 CFPB Anticipated Rulemaking for 2020* APR 16 SAR: Line by Line*

APR 21 Signature Card Danger Zones* APR 22 Teller Compliance Issues: Updated for Regulation CC Changes* APR 24 Safe Deposit Vault Security & Disaster Recovery Essentials* APR 28 BSA: Customer Identification Program - Is it time to Update? * APR 29 Introduction to Banking for New Employees* APR 30 Coaching Tellers to Excellence* MAY 8 Introduction to ACH: The Basics* MAY 20 How to Hire Your Next Sales Superstar* * Total Training Solutions


The Banking Industry Managing Interest Rate Risk Basic Administrative Duties of a Trustee Building Customer Relationships Analyzing Financial Statements Analyzing Bank Performance

UPCOMING EVENTS April 29 Economic Investment Day Wyndham Springfield City Centre, Springfield April 30 Spring Law Review Center for Banking Excellence/ IBA Office, Springfield May 14 Spring Golf Outing St. Clair Country Club, Belleville

May 15 Compliance Conference Hyatt Regency Lisle June 15-18, 2020 Annual Conference Crowne Plaza Springfield August 26-27 Ag Banking Conference Crowne Plaza Springfield


March-April 2020 •

• 43 •

NEWS & NOTES ASSOCIATE MEMBER NEWS Abrigo Abrigo is proud to be named a Best-In-Class vendor by Aite Group in its December 2019 Commercial Loan Origination Vendor Impact report. Of the 16 vendors evaluated for the report, Abrigo’s technology, the Sageworks Lending and Credit Solutions, scored a Best-In-Class rating thanks to the company’s high marks in each of the four categories: vendor stability, client strength, client service, and product features. LKCS LKCS, a marketing partner for community banks and credit

unions nationwide, will now offer Lenderful Solutions’ white-labeled self-service point-of-sale mortgage and consumer lending solutions to its existing and new customers. The licensing agreement means the LKCS national sales team will offer mortgage and consumer lending products featuring Lenderful’s “secret sauce” technology that engages borrowers early in the sales cycle, nurtures satisfaction with the lender’s brand and generates quality leads, applications and loan officer appointments. LKCS will license Lenderful’s Digital Mortgage Solution, PreQual Express and Digital Home Equity products.

Wipfli Wipfli has announced the appointment of Anna Kooi to the position of national financial services industry leader. Kooi joined Wipfli in 2019 and has more than 20 years of experience serving a variety of public and private clients in the financial services industry.In her role, Kooi will oversee Wipfli’s national financial services practice, which currently has over 300 associates serving over 1000 organizations in the financial services industry across the U.S.




Register at

BRING YOUR TEAM For Only $149 • 44 •

• March-April 2020

PROMOTE & DEFEND Become A Legislative Ambassador



NEW ASSOCIATE MEMBERS (as of 2-7-20) Ag Resource Management Morris, IL Ag Resource Management is a specialty finance company focused on bringing financial and risk management solutions to agricultural producers and agribusinesses. Our lending is based on the crop, crop insurance and Government payments. We know the ag business and are focused on your growth.

Ameren Illinois Peoria, IL Ameren Illinois Energy Efficiency Programs assist business (and residential) customers by offering cash incentives for completing energy-efficient upgrades.

BankOnITUSA Oklahoma City, OK BankOnIT was created by bankers, for bankers, as a way for financial institutions to have more capabilities and gain better results with technology, helping them compete more effectively, reduce risk and increase shareholder value.


Federal Protection Inc. Springfield, MO Federal Protection is trusted as the Financial Industry Security Specialists. Serving since 1969 Federal is a proven innovator in security, bank equipment, and ATM/ITMs. Today, we offer the latest solutions for branch development, ATMs, ITMs, and physical & electronic security.

> Resource Bank, N.A. > Synchrony Financial Financial Services Industry Member

When your bank’s a member, you’re a member!

Frye-Williamson Press, Inc. Springfield, IL Frye-Williamson Press is your partner in graphic communications. We work with you to find the most efficient, cost effective method to deliver your printed message in a timely manner. We are your source for a complete one stop printing solution.

to reduce to reduce regulatory burden mitigate compliance risk associated with cannabis banking. Scantron Technology Solutions Omaha, NE Scantron Technology Solutions, Scantron Corporation’s singlesource technology provider, assists financial institutions and other commercial industries with managed IT, managed print, hardware and professional services. Scantron Technology Solutions offices in Omaha, NE. Scantron Corporation is headquartered in the Twin Cities of Minnesota.

Green Check Verified North Haven, CT Green Check Verified (GCV) is a provider of RegTech solutions designed to address cannabis banking challenges. GCV Offers cannabis-related businesses (CRBs) access to sustainable, affordable banking relationships while offering FIs the tools they need




APPI Energy



Bankers’ Bank (Wisconsin)


47 24

Cinnaire Corporation


Howard & Howard




MIB-Midwest Independent Bank


Office Depot




2 12 Back Cover

March-April 2020 •

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• 45 •


It’s Throwback Time! On January 22, 2001,

Linda Koch took the helm of the IBA as executive vice president, later to become president and CEO. Congratulations, Linda, on 19+ years as president and 12 more as our Government Relations lobbyist! As reported last year, Linda has announced her retirement, effective June 30, and we are planning a huge send-off during this year’s Annual Conference June 15-18 in Springfield. Register for the Conference at

Watch for more in the next issue of the Illinois Banker magazine!

• 46 •

• March-April 2020

Always your partner, never your competitor.™

Is your ALM system key to your decision-making? Shouldn’t it be?

With ALM Driver™ from Bankers’ Bank, you have a resource that goes beyond compliance reports. Scalable to your needs, it supplies key insights on lending, in addition to investments and funding sources. The simulation tool provides analytics around strategy decisions within seconds rather than hours, and creating custom peer groups makes comparisons more applicable. You will appreciate the way this easy-to-use tool combines your data with leading ALM theory. Your board and examiners will applaud the clearly presented forecasting and valuation reporting. Contact Bankers’ Bank to learn how ALM Driver™ can enhance your bank’s value and profits.

Your Correspondent Bankers

Amanda James 312.965.9500 Northern IL

Your Commercial Banker

Jeff Rabenort 618.306.3656 Southern IL

Tom Thompson 224.775.5456 Illinois

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