Illinois Banker | March - April 2019

The Official Publication of the Illinois Bankers Association

March-April 2019 ilbanker.com

IT’ S HIP in AUST IN!

ANNUAL CONFERENCE

2019

June 23-25 * JW Marriott * Austin, TX

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

Also in this issue: SPECIAL BUSINESS SERVICES SECTION

175 BANKS REPRESENTED

150 YEARS IN BUSINESS

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

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Mark Ryerson

312.456.3406 MRyerson@howardandhoward.com

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March-April 2019 • Vol. 104 / No. 2 • ilbanker.com

TABLE OF CONTENTS

15 38 DEPARTMENTS 5 Message from the President and CEO 6 Compliance Corner 8 Washington Update

18

12

10 Human Resources 14 Preferred Vendor Network 15 Special Business Services Section

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15 Preferred Vendors 19 Preferred Vendor: KeyState Captive Management

FEATURES

21 Ask the Coach

12 It's Hip in Austin! Annual Conference 2019

23 IBA Awards

22 First Bank of Highland Park Partners with Harper College’s Banking Apprentice Program 24 We Need Your Help in Making an Impact!

26 The Next Cybersecurity Threat: Your Email Inb0x 30 IBA Staff Directory

29 New Associate Members 29 New Member Banks 32 On the Move 33 Ad Index 34 News & Notes 36 Events Calendar 38 The Last Page

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS

Daniel P. Daly Chairman SENB Bank, Moline

Kevin L. Olson Chairman-Elect Grundy Bank, Morris

C. Brant Ahrens Vice Chairman CIBC, Chicago

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

Stanley D. Jenks Security Savings Bank, Monmouth REGION 4

Christopher P. Barton The State Bank of Geneva

Martin J. Noll Community Bank of Oak Park River Forest

Joseph P. Dively First Mid Bank & Trust, Mattoon

Gary S. Collins Old Second National Bank, Aurora

REGION 2

Andy Hartman JPMorgan Chase Bank, Springfield

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

William Gleason The Leaders Bank, Oak Brook

REGION 5

Michelle A. Toll The State Bank Group, Wonder Lake

Rich Knebel The Bradford National Bank, Greenville

REGION 3

Ronnie Shambaugh Best Hometown Bank, Collinsville

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

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

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

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

Linda Koch Secretary IBA President and CEO, Springfield

Rick M. Francois American Community Bank & Trust, Woodstock Tom Gihl Illinois National Bank, Springfield Daniel J. Hollowed Cornerstone National Bank & Trust Company, Palatine

Betsy Johnson Forreston State Bank Anthony G. Nestler Hickory Point Bank and Trust, Decatur Pamela Sharar-Stoppel Wheaton Bank and Trust Company Simon P. Yohanan First Bank & Trust, Evanston FLA CHAIRMAN (non-voting member) Rachael Maurer United Community Bank, Chatham

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

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

Jeffery L. Fauver Catlin Bank

James H. Huiskamp Blackhawk Bank & Trust, Milan

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

Executive Administration

Dale L. Blachford Treasurer Liberty Bank, Alton

AT-LARGE CATEGORY

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

Communications/Marketing/ Associate Membership

Jim McNichols, Vice President, Insurance Services

Debbie Jemison, CAE, Vice President

Casey Widholm, Marketing Manager

Tammy Squires, Assistant Vice President

Illinois Bankers Education Services, Inc.

Finance and Administration

Callan Stapleton, Vice President

Mark Bennett, CPA, CFO and Vice President

Kevin Klug, Assistant Vice President

Marcia Stratton, CPA, Director

Bob Anderson, Manager of Education and Training

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

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

Editorial Offices 524 S. Second St., Ste. 600 Springfield, IL 62701-1705 217-789-9340 FAX 217-789-5410 www.ilbanker.com Debbie Jemison, Editor With the exception of official announcements, the Illinois Bankers Association disclaims all responsibility for opinions expressed and statements made in articles published in Illinois Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 524 S. Second St., Ste. 600, Springfield, IL 62701-1705. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. Š Copyright 2019 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGE Illinois Bankers Business Services— selected by bankers for bankers!

Linda Koch

IBA President and CEO

We understand that increasing demands placed upon Illinois financial institutions can impede your primary purpose of serving your community’s families and small businesses, while trying to navigate the many challenges you face simply in running your businesses. So that you have time to focus on what is most important, the IBA is here to help you—whether it is through our advocacy and public relations efforts, our timely and important training and compliance programs, or through the many Preferred Vendor products and services that we offer!

Speaking of preferred products, in 1987, the IBA formed Illinois Bankers Business Services (IBBS), and it subsequently was approved as a registered insurance firm by the Illinois Department of Insurance. IBBS’s primary purpose is to offer financial institutions access to high caliber products and services -- through our Preferred Vendors -- that are focused and driven by member and industry need, while allowing IBA members to take advantage of the Association’s group purchasing power.

Our line-up of Preferred Vendors and their product offerings are carefully curated and approved by the IBBS Board of Directors – selected by bankers for bankers. See our current IBBS Board Member listing on page 15.

Today, IBBS owns BankTalentHQ, the only nationwide talent management website -- offered through an alliance of 20 state bankers associations covering 28 states -- that is dedicated to helping financial institutions attract and retain quality employees to the banking industry.

As a full-service insurance agency, IBBS works with top-rated insurance companies to sell comprehensive health insurance plans, bond and D&O, property, casualty, mortgage protection, cyber liability, workers’ compensation, and other bank insurance products at competitive prices.

Our multiple options allow IBBS to tailor insurance solutions based upon the unique needs of our members.

Rounding out our insurance offerings is access to a captive insurance program through KeyState Captive Management, title insurance services through Investors Title Insurance Company, and flood zone certification through Floodplain Consultants.

Our product offerings don’t stop there! Next time you are shopping for a new vendor and specialized service, we encourage your institution to consider ABG Retirement Plan Services and Ascensus for 401k and retirement plan services, Deluxe Financial Services for checks and check printing, office product discounts through Office Depot, customized marketing materials through BankMarketingCenter.com, APPI for your next energy supplier, cybersecurity consulting and training services through SBS CyberSecurity, and AML software and fraud detection through Verafin.

Yes, the demands placed upon Illinois bankers are great.

But, please know, the IBA is always here to help! Just ask!

March-April 2019 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION We received an attorney’s subpoena requesting a huge amount of information in a short amount of time. We responded and then billed the attorney approximately $600 for our time and costs spent responding to the subpoena. More than three months now have gone by, and the attorney has not responded to our invoice.

What can we do to force payment?

ANSWER The Illinois Banking Act requires you to charge for the direct costs incurred in producing your response to the subpoena.

Unfortunately, it does not provide for recourse in a situation like yours, if payment is not made, and you would need to

pursue reimbursement in the same manner as you would for other small unpaid debts.

When served with a subpoena for financial records, you may prepare an estimate of the costs associated with responding to the subpoena and require partial

payment before proceeding to locate and reproduce the requested documents. You also may withhold delivery of the requested documents until final reimbursement for all costs is received.

QUESTION We received a subpoena for information for a vulnerable adult. The subpoena is signed by an attorney, but there is no court filing stamp on the document. Do we need to respond to a subpoena that doesn’t have a court stamp?

ANSWER Yes, your bank should respond to the subpoena, assuming it was issued in connection with a pending case and the attorney who signed the subpoena is counsel of record for a party in the case. In Illinois, a subpoena may be issued by the clerk of a court or by an

attorney admitted to practice in Illinois who is counsel of record in a pending action. A subpoena issued by an attorney does not require a clerk’s stamp.

The Illinois Banking Act requires a bank to notify a customer before responding to a subpoena unless

the “bank is specifically prohibited from notifying the person by order of the court or by applicable State or federal law” or the subpoena is issued by a grand jury in connection with certain crimes.

QUESTION Can we set up an individual checking account for a large business customer? Can we pay a higher interest rate for this particular customer? Do we have to offer the interest rate to every customer?

ANSWER Yes, banks may offer interestbearing checking accounts to businesses. The Dodd-Frank Act removed the prohibition on paying interest on ordinary demand deposit accounts held by businesses.

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• March-April 2019

We are not aware of any Illinois or federal laws prohibiting a bank from offering higher deposit interest rates to a particular business customer, provided that the customer is not a bank insider.

Because your bank is a national

bank, it is subject to the restriction on payments of preferential interest rates to insiders for members of the Federal Reserve.

QUESTION Does Illinois require interest to accrue on customers’ mortgage escrow accounts?

ANSWER Illinois law does not require interest to accrue on mortgage escrow accounts, but an Illinois law requires a bank to allow certain customers to open an interestbearing time deposit account in lieu of an escrow account. For purchase-money loans secured by owner-occupied single-family homes, the Illinois Mortgage Escrow Account Act requires mortgage lenders to provide borrowers with the option of pledging an interest-bearing time

deposit with the mortgage lender in lieu of funding an escrow account.

We should add that because your bank is a national bank, there is a reasonable argument that your bank is not required to follow the provisions in Illinois’ Mortgage Escrow Account Act. In our view, the National Bank Act preempts state laws relating to escrow accounts for both residential and nonresidential loans for national banks. Nonetheless, we

believe that some national banks in Illinois do comply with the Mortgage Escrow Account Act for competitive purposes. Moreover, a recent Ninth Circuit case held that the National Bank Act does not preempt a California state law requiring the payment of interest on escrow accounts (Lusnak v. Bank of America, N.A. (9th Cir. 2018)).

QUESTION If a customer loses a cashier’s check or it is lost in the mail, how long does a customer have to wait to request a refund or reissue?

ANSWER A customer may assert a claim for a lost cashier’s check by signing a “declaration of loss” that meets the Uniform Commercial Code’s (UCC) requirements. The customer may sign the declaration of loss as soon as they become aware

of the loss, but the claim will not be enforceable until ninety days after the date of the original check.

If your bank chooses to reissue the cashier’s check prior to the expiration of the ninety-day

period, it runs the risk of paying the amount of the check twice.

After the expiration of the ninetyday period, your bank may pay the customer the amount of the original check and refuse to pay the original check, if presented.

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

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

March-April 2019 •

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WASHINGTON UPDATE

By Rob Nichols, President and CEO, American Bankers Association

2019: Different Approach, Same Agenda Significant progress at the regulatory agencies as well as the passage and implementation of long-sought bipartisan regulatory reform made 2018 a breakthrough year in many ways. The new year brings fresh challenges, including how to maintain momentum for policy improvements in the face of a newly divided Congress.

But as I have said on many occasions, the fundamental business of banking — from the deployment of credit to the building of communities — does not belong to one party. Banking issues can and should be bipartisan. So while our tactics might change with the new dynamic in Washington, our agenda hasn’t, and won’t.

ABA will actively advocate on a range of policy issues in 2019, including additional regulatory reforms that didn’t make it into S. 2155, such as exam-fairness provisions that would establish deadlines for banking agencies to issue exam reports and create an independent examination review and appeal process. Other topics we think are ripe for bipartisan action include:

Bank Secrecy Act Reform

There is growing consensus that now is the time to update the compliance structure surrounding the nation’s anti-money laundering rules, which has not changed since 1970.

We will be working to build bipartisan support for BSA/AML reform, including updated Suspicious Activity Report and Currency Transaction Report thresholds, further modifications to customer due-diligence rules and better communication between banks and law enforcement.

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• March-April 2019

Cannabis Banking

As cannabis is now legal in some form in 33 states, the growth in dispensaries as well as numerous fast-growing offshoot businesses is putting our industry in an untenable position. A bank might choose not to serve a marijuana grower or dispensary since cannabis remains illegal under federal law, yet still face significant legal, operational and regulatory risk if it offers services to a customer with a tangential connection to cannabis. We’ve heard many stories, like the bank that was told by its regulator not to lend any more to a local mall owner after it leased space to a cannabis dispensary.

This conflict between federal and state law is reaching a tipping point, and we believe Congress and regulators must provide greater legal clarity. Watch for hearings, likely to begin with the House Financial Services Committee, and for the introduction of bills that address banks’ challenges. While ABA is not weighing in on the societal, cultural or moral aspects of this issue, we do want legal protections for banks providing services in states where cannabis is legal.

CECL Accounting Standard

Understanding the impact that the Financial Accounting Standards Board’s Current Expected Credit Loss accounting standard will have when fully implemented is a significant challenge. But we know that the standard’s upfront loss recognition changes the economics of lending and could force hundreds of banks to raise capital or limit their product offerings. For this reason, ABA is advocating that a thorough quantitative impact study be conducted before allowing the standard take effect.

The standard is scheduled to take effect in 2020 for Securities Exchange Commission registrants, 2021 for non-registrant banks with outside equity/debt holders, and 2022 for privately held and mutual banks.

Community Reinvestment Act Modernization Regulations implementing the Community Reinvestment Act have not kept pace with changes in banking and technology, and the Office of the Comptroller of the Currency has taken the lead in modernizing them. The comment period following OCC’s issue of an Advance Notice of Proposed Rulemaking closed in November 2018, with some 300 banks weighing in. That kind of engagement will be needed again in 2019, when we expect the banking agencies to jointly issue a proposed rule. This is a once-ina-generation opportunity to move CRA into the future, but it will face substantial headwinds from those who fear (wrongly) that modernization will reduce banks’ commitment to their communities. We will be working to allay those fears and make the case for commonsense improvements.

Fortunately, or unfortunately, banking always has a full pipeline of issues demanding attention.

So while those above seem ripe for action in the coming months, ABA will be advocating on a host of other, equally important issues, from data security and housing finance reform to flood insurance and student debt concerns.

Your continued engagement will be the key to advancing any of these issues, and creating smarter, more effective bank regulation.

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

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Your Correspondent Bankers

Andy Carlson 815.441.2656 Northern IL

Amanda James 312.965.9500

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•9•

HUMAN RESOURCES

By Rob Driscoll, Reinhart Boerner Van Deuren

Avoid Restrictive Covenant Pitfalls Many employers, including banks, use restrictive covenants to control the competitive activities of their employees after employment has ended. Restrictive covenants come in three forms. Non-competition agreements prohibit employers from working for a competitor in a certain geographic area. Nonsolicitation agreements prohibit former employees from soliciting your clients for a competitive purpose. Finally, employers can protect their confidential information from use or dissemination through a non-disclosure agreement.

These agreements are particularly beneficial in industries that are client-focused or involve specialized skill and knowledge. There are, however, a number of issues that arise in the enforcement of these agreements and it is critical to understand these pitfalls to ensure that yours will be enforced by a court.

Restrictive covenants have a number of benefits that can safeguard many aspects of your bank’s operation.

Financial institutions rely on customer relationships to maintain and grow their business. A key employee’s departure can be difficult, especially if he or she was employed in a customer-facing position or had access to sensitive internal information that would give an unfair advantage to a competitor if disclosed.

Non-compete and non-solicitation agreements limit a former employee’s ability to lure your customers to a competitor. Often, those employees are the “face” of the bank with the customers, and a former employee could easily

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• March-April 2019

use that good will on behalf of a competitor. These agreements also add value to the organization by signaling to a potential buyer that key employees will not easily be able to leave and unfairly compete following an acquisition.

Similarly, non-disclosure agreements prohibit former employees from divulging confidential information. There is a great deal of information in the banking industry that is not necessarily subject to financial privacy laws that prohibit the disclosure of information.

requirements for these agreements that must be met. Failure to do so will result in the court refusing to enforce post-employment restrictions on competitive activity.

Courts typically analyze three factors to determine whether a restrictive covenant may be enforced: (1) the restriction is necessary to protect the legitimate interests of the employer; (2) the restriction does not impose a hardship on the employee or the pubic; and (3) the scope of the restraint is reasonable.

A concise, well-crafted agreement that complies with the current status of the law can prevent headaches down the road...

For example, strategic plans, customer lists, and marketing initiatives may be unprotected without a non-disclosure agreement.

Similarly, although most states protect “trade secrets” by statute, those protections are relatively narrow. Non-disclosure agreements are necessary to protect sensitive information that does not necessarily meet the legal definition of a “trade secret.”

Although courts generally will not scrutinize a contract entered into freely by the parties involved, courts will carefully examine postemployment restrictions.

A restrictive covenant is, by its nature, a restraint on competition that could be unduly harmful to the former employer or the larger public. Accordingly, the Illinois Supreme Court has established

In addition to these three elements, the agreement must be supported by consideration, which is something bargained for and received by the employee from the bank. In many states, initial employment is deemed sufficient consideration. For example, the bank may offer employment in exchange for the employee agreeing to not solicit the bank’s customers for a period of time after employment ends.

Some Illinois courts, however, including the appellate court whose jurisdiction covers Cook County, have ruled that initial employment alone is not sufficient consideration unless the employment lasts for two or more years. In other words, if a bank employee were to sign a non-compete upon being hired, but then resign six months later to work for a competitor, some Illinois courts would not enforce

the agreement. In that case, the bank would be without recourse and the former employee could compete without restriction. Therefore, it is safest for banks to offer another form of consideration, such as a small bonus, to its employees who enter into these agreements.

Because the enforceability of restrictive covenants varies based on individual situations, these agreements should be tailored based on the nature of the position. One of the most important inquiries that a court conducts in determining that a restrictive covenant is reasonable is whether it protects a legitimate business interest. Factors such as the stability of customer relationships and whether the employee gained the confidential information through his or her employment are key to this determination. Then, courts will consider whether those interests justify the geographic and temporal reach of the agreement.

The more important the interest, the broader and longer-lasting the restriction can be.

Therefore, “form” agreements that apply to every employee regardless of their position have a high risk of being held unenforceable. Because each position has a different access to and responsibility for business information and customer relationships, an agreement that is appropriate for one employee might be too broad and thus not enforceable for another employee.

Thus, the prohibitions in your restrictive covenants should reflect the realities of the different roles your employees play and should be as narrow as possible while still protecting your bank’s interests.

Be sure to revisit your template agreements every few years, too, as changes in the way courts evaluate the scope of permissible restrictions occur from time to time. A concise, well-crafted agreement that complies with the current status of the law can prevent headaches down the road and offer some relief from harm caused by the departure of an important employee.

About the author: Rob Driscoll is a labor and employment partner at Reinhart Boerner Van Deuren. His practice includes helping employers comply with employment laws, draft agreements, and litigate disputes. He can be reached at rdriscol@reinhartlaw.com.

IBA Associate Member

First For Your Success United Bankers' Bank is proud to be the nation's first and the upper Midwest's largest bankers' bank, covering 14 states and serving over 1,000 community banks from the Pacific Northwest to the Great Lakes. We can't wait to share our passion for community banking with youl

For more information, contact your Illinois Calling Officer: Heather Steger

VP, Correspondent Banking Officer 630.441.5564 heather.steger@ubb.com

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March-April 2019 •

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IT’ S HIP in AUST IN!

ANNUAL CONFERENCE

2019

June 23-25 * JW Marriott * Austin, TX CONCURRENT SESSIONS (60 minutes) The Regulators’ Perspective: Navigating the Supervisory Landscape

Securing Long-Term Deposits: IRAs

Maureen Revak, CISP, Director of Business Development, Ascensus

Moderator: Bruce Jay Baker, Executive Vice President and General Counsel, IBA

People and Digital Transformation: The Future of Community Banks

Panelists: John P. Conneely, Regional Director; Kerri A. Doll, Director, Division of Banking, IDFPR; Mark Medrano, Assistant Vice President, FRB Chicago; Blake Paulson, Deputy Comptroller, Central District, OCC; John J. Schroeder, Regional Director, CFPB

Growth Strategies in the New Banking Environment

Executive Briefing on Current Issues and Opportunities for Banks

Robert M. Fleetwood, Partner, Group Co-Chair, and John M. Geiringer, Partner, Regulatory Section Leader, Barack Ferrazzano Financial Institutions Group

Top 10 Tips for Achieving Sales Excellence (From the Movies)

Joe Micallef, President, Sales Strategist and Sales Coach, Grow UP Sales

Impact of CECL and Approach to Implementation John Behringer, CPA, and Justin Freeman, Partners, Risk Advisory Services, RSM US LLP

NEW! FLASH SESSIONS (25 minutes) Culture and Conduct Risk: How a Strong Culture of Compliance Can Mitigate Risk Jessica Caballero, CRCM, Senior Manager, Strategy and Evangelism, Abrigo

Timothy Reimink and Thomas Grottke, Managing Directors, Crowe LLP

Sean Payant, Ph.D., Chief Consulting Officer, Haberfeld Associates

Take the Money and Run: Multiple Ways to Finance Your Acquisitions and How Each Will Impact Transaction Timing, Regulatory Compliance and Your Shareholders

Jude Sullivan and Mark Ryerson, Partners, Howard & Howard Attorneys PLLC

Raising Capital in Today’s Regulatory and Economic Environment Kip Weissman, Partner, Luse Gorman

Bank Executives: What's Your Cyber Responsibility?

Chad Knutson, CISSP, CISA, CRISC, Partner, Senior Information Security Consultant, SBS CyberSecurity, LLC and President, SBS Institute

Merger & Acquisition and Industry Update

Curtis Carpenter, Principal and Head of Investment Banking, and John Adams, Vice President-Investment Banking, Sheshunoff & Co

KEYNOTE

PRESENTAT IONS

Stand Out from the Crowd: Out-Perform, OutThink, Out-Lead and Out-Sell the Competition CONNIE PODESTA is a gamechanging, idea-generating ball of fire whose rare blend of humor, substance, style and personality have made her one of the most memorable, in-demand speakers in the world today. In this keynote presentation, Podesta will bring out your edgy, creative, competitive side as she takes you inside the minds of today's savvy, but super-demanding marketplace and delivers powerhouse strategies that will help you increase sales, profits, goodwill and your customer base.

Delayed Gratification in 2019 PHILIP ORLANDO is the chief equity strategist and the head of the Client Portfolio Management team at Federated Investors, Inc. The year 2018 was the worst for the financial markets since the

SPECIAL

“Great Recession” a decade ago. The confluence of politics, economics and financial-market performance has never been more important. Join Orlando as he shares his candid views on what all of this collectively means for the markets and the economy going forward.

Making an Impact DR. RICK RIGSBY delivered one of the most passionate speeches ever heard in 2017, and over 200 million people worldwide viewed it in a video that went viral in just a matter of days. We invite you to rediscover what is really important and meaningful, not only in your professional career but in your personal life as well. In this closing keynote, Rigsby shares the wisdom of past generations – wisdom that will inspire, motivate, and empower you to make an impact rather than an impression!

EVENT S

Sunday, June 23

7:30 a.m. (bus departure) / 8:30 a.m. (shotgun start) ILLINOIS BANKERS PAC GOLF OUTING Experience the beauty of Austin during the Illinois Bankers PAC Golf Outing at Falconhead Golf Course.

9:00 A.M. – 2:00 P.M. AUSTIN PAC CRAWL You’re sure to have an “explosively” fun time on the Austin PAC Crawl! Austin is home to a stunt ranch that enhances film, TV, and commercial productions by filming special effects and pyrotechnic shots.

Register at ilbanker.com

Special Outside Bank Director Discount * Save $300 by using promo code DIRECTOR*

Monday, June 24

8:00 A.M. – 3:00 P.M. WACO AND MAGNOLIA MARKET (SPOUSE/GUEST OPTIONAL TOUR) Take an Austin Detour to Waco, hometown of HGTV’s “Fixer Upper” with Chip and Joanna Gaines. The first stop is Magnolia Market by Joanna Gaines. After perusing the shop, enjoy a picnic lunch and a tour around Waco to get to know the historic town that is home to Dr Pepper and Baylor University.

7:00 P.M. – 10:30 P.M. DINNER, BANKER OF THE YEAR AWARD, ILLINOIS BANKERS PAC SILENT AUCTION, ENTERTAINMENT Enjoy authentic and delicious Austin cuisine, the popular silent auction benefiting Illinois Bankers PAC and the announcement of the prestigious Banker of the Year Award followed by entertainment with the PDA Band!

March-April 2019 •

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OUR NETWORK OF

PREFERRED VENDORS Operations

Insurance

APPI Energy

ABA Insurance Services Inc.

Ascensus

Investors Title Insurance Company

Deluxe Financial Services

KeyState Captive Management

Floodplain Consultants, Inc. Office Depot

Select Vendor

Technology

Select Vendor

HR Solutions

Banker’s Dashboard

ABG Retirement Plan Services

BankMarketingCenter.com

BankTalentHQ.com

SBS CyberSecurity Verafin Request a demo or orientation

Customer references available

Select Vendor

Select Vendor

To learn more, connect with Brian Hoffman bhoffman@ilbanker.com | 217-789-9340 | ilbanker.com

SPECIAL BUSINESS SERVICES SECTION Expand your services and your bottom line with IBA Preferred Vendors fiduciary governance procedures and investment options.

Are you looking to increase revenue and save costs at your financial institution?

The Illinois Bankers Association has a full line of products and services it works with to do just that. The Illinois Bankers Business Services (IBBS) Board and staff, carefully research and evaluate potential vendors and services. As we say – selected by bankers for bankers.

Our goal is to always be providing value to our members, which is why we find it necessary that these vendors provide a top-quality product or service, while offering impeccable customer service at all times. The IBBS staff and board remain in constant contact with these vendors to ensure they are dependably providing support to our member institutions.

If you have any suggestions regarding products or services that the IBBS Board should consider, please contact me at bhoffman@ilbanker.com or 217-789-9340 or any board member.

We look forward to expanding the products and services that are offered to our members.

The IBBS Board and staff are proud to partner with the companies listed here. We are grateful for their support of the Illinois Bankers Association and, most importantly, of our members.

Brian Hoffman President Illinois Bankers Business Services, Inc.

Patrick Bearss | 309-671-4200 | abgil.com ABA INSURANCE SERVICES serves the banking industry by offering D&O, bond and related insurance to community banks across the country. This unique bank-owned and banker-directed insurance program has been a market leader for nearly 30 years and is recognized by insurance and banking professionals as a secure, stable and affordable source of coverage. A full suite of Property & Casualty insurance for banks is also available. Through the program’s mutual reinsurer, American Bankers Mutual Insurance, Ltd., a distribution to banks has been declared for 24 consecutive years, totaling $79 million.

Richard Flenner | 800-274-5222, ext. 1325 | abais.com

ABG RETIREMENT PLAN SERVICES The IBA 401K powered

by Alliance Benefit Group (ABG) offers low cost, institutional class shares and index funds in any combination in order to meet the goals of each relationship served.

ABG uses no proprietary funds within the plan investment menus and operates with fully disclosed and transparent pricing. Ask us for a no-cost, independent survey of your current retirement plan,

IBBS Board Members Chairman P. David Kuhl, Champaign Vice Chairman Daniel Hollowed, Cornerstone National Bank & Trust Company, Palatine

APPI energy

APPI is an independent energy and utility consulting company.

APPI assists businesses, associations and other consumers of energy and utility services in reducing electricity and natural gas costs by identifying, analyzing, negotiating and structuring individual supply contracts.

Jane Seagraves | 800-520-6685 | appienergy.com

ASCENSUS is the industry’s leading administrator of tax-favored plans for healthcare, retirement and college savings plans for over 6 million Americans. Founded in 1975, Ascensus currently provides products and solutions for HSAs, IRAs and Employer Retirement Plans to more than 7,200 financial institutions nationwide. Our nearly 40 years of experience with retirement plans and our expertise with Health Savings Accounts since their inception nearly a decade ago is unparalleled in the industry.

Heather Hoskins | 800-346-3860 | ascensus.com

Members Micah Bartlett, Town and Country Financial Corporation, Springfield Belinda Feezel, TheBANK of Edwardsville, Edwardsville Tom Gihl, Illinois National Bank, Springfield Larry Kallembach, Heartland Bank and Trust Company, Bloomington Kevin Olson, Grundy Bank, Morris Beth Williams, Peoples National Bank, N.A., Mount Vernon

March-April 2019 •

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SPECIAL BUSINESS SERVICES SECTION include Deluxe ID TheftBlock® and DeluxeDetect®.

BANKER’S DASHBOARD® delivers the only community bank management tool that Works the Way a Banker Thinks®.

Community banks of all sizes leverage our online, time-saving solution to arm their management teams with the daily financial information they need for making critical decisions that will improve performance and profits. CEOs around the country say this is one management tool they can’t live without.

Bob Reid | 800-933-2211 x159305 | bankersdashboard.com

BANKMARKETINGCENTER.COM is a web-based marketing portal that empowers banks to produce professionally designed, bank-branded marketing materials in a matter of seconds. With thousands of successful marketing materials and over 9 million stock photos, it puts you in complete control of the ad production process, saving valuable time and money.

Keith Pagel | 404-943-1632 | BankMarketingCenter.com

BANKTALENTHQ is the premier talent management site for financial industry careers, brought to you by an alliance of state banking associations working together. Whether you are looking for a job with a financial institution, a service provider or a regulator, or you are an employer with a position to fill, BankTalentHQ is here to help!

Brian Hoffman | 217-789-9340 | banktalenthq.com

DELUXE FINANCIAL SERVICES, the nation’s leading check supplier, offers its knowledge and comprehensive understanding of consumer preferences to create outstanding customer experiences for financial institutions. Deluxe offers premium checks and related products, and services to enhance customer loyalty, strengthen check program security, increase revenue and improve efficiency. Additional solutions

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• March-April 2019

Bob Reid | 800-933-2211 x159305 | fi.deluxe.com

FLOODPLAIN CONSULTANTS (FCI), a flood zone certification provider, provides service and accuracy via a site visit policy on all borderline properties, at no additional charge. By partnering with clients, FCI reduces staff workload, increases customer satisfaction, reduces the risk of costly compliance problems and helps improve the lender’s bottom line.

Craig Callahan | 317-858-4420 | floodplain.com

INVESTORS TITLE has put more than 500 financial institutions in the business of selling title insurance through lenderowned agencies, providing a profitable fee income opportunity for lenders.

Our track record, financial strength, and innovation have resulted in over $190 million in commissions to affiliated agencies, and we continue to assist Illinois banks of all sizes in becoming successfully engaged in the sale of title insurance.

office products including office furniture, print/copy services, custom business forms, stationery supplies, promotional items, lunchroom and janitorial supplies.

This strategic relationship features discounts up to 80% off the manufacturers’ suggested list price, a core list of over 800 frequently ordered, deeply discounted products featuring many high use commodity items and bank-specific products, plus your own customized list of an additional 75 items and 10% off retail published prices (excludes technology products). Employees will have access to many of these same program benefits through the Employee Purchase Program.

Isaac Mares | 855-337-6811 x12878

CyberSecurity

SBS CYBERSECURITY is an information security consulting, auditing, and solutions firm focused on ensuring successful IT examinations and implementing good information security practices for community banks. SBS offers general information security consulting to banks and also offers services such as IT audits, penetration tests, Social Engineering and many others. SBS has also developed an industry-leading solution - TRAC - for automating many resource-heavy information security tasks such as IT Risk Assessment, Vendor Management, Enterprise Risk, Business Continuity Planning, etc.

Mike Uhland | 919-945-2384 | invtitle.com

Robb Nielson | 712-369-0129 | sbscyber.com Dennis Sparrow | 314-276-4610 | sbscyber.com

KEYSTATE CAPTIVE MANAGEMENT offers a unique bank captive insurance program to banks. The bank captive program is designed by national accounting firm Crowe Horwath LLP and then administered by KeyState Captive Management. Banks that fit a certain asset size and earnings criteria can form their own wholly owned captive insurance company to finance risks (that are not commercially insured) in a tax advantaged way.

VERAFIN is the industry leader in financial crime management, providing a cloud-based cross-institutional FRAMLx software platform for Fraud Detection, Anti-Money Laundering and High-Risk Customer Management, with a customer base of 1700 financial institutions across North America. Powered by cloud technology, Verafin significantly reduces false positive alerts, offers advanced data visualization, and enables collaborative investigations to help customers stay a step ahead of crime, as well as the BSA/ AML compliance landscape. Verafin is the exclusive provider for the Texas Bankers Association, Western Bankers Association, Florida Bankers Association, Illinois Bankers Association, Massachusetts Bankers Association, and has industry endorsements in 47 U.S. states.

Travis Holdman | 260-227-0265 | key-state.com

OFFICE DEPOT provides world-class service when it comes to purchasing office supplies, paper, toner and other

Gary Dawson | 866-781-8433 | verafin.com

March-April 2019 •

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I N N OVAT I V E

SOLUTIONS that result in

SIGNIFICANT

SAVINGS KeyState is Illinois’ leading provider of Nevada/Delaware Investment Subsidiary Management and Captive Management Services to community banks.

To learn more contact Travis Holdman at 260.227.0265 or tholdman@key-state.com

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• March-April 2019

KeyState’s Bank Captive program is a Preferred Vendor of the Illinois Bankers Association

SPECIAL BUSINESS SERVICES SECTION

PREFERRED VENDOR

By Josh Miller, CEO, KeyState Captive

Banks Using Captives for Enterprise Risk Management in Increasing Numbers There is no avoiding it. Cyber security and reputation protection are among today’s significant, emerging risks, thus creating exposures for banks of all sizes. At the same time, commercial insurance carriers are pushing banks to higher deductibles, so there remain significant gaps in coverage and exclusions in commercial insurance policies. This creates unfunded risks, which must be evaluated as a part of any bank’s enterprise risk management process.

It’s evident that bankers know not all enterprise risk is addressed with their commercial insurance package.

To address the concerns, banks throughout the country are forming captive insurance companies – known as captives – to cover these unfunded risks. A captive is a legally licensed, limited purpose, property and casualty insurance company, which can write customized policies for related entities.

While larger institutions (typically $10bn in assets and larger) with specific organizational structures (i.e., lots of charters) have been utilizing these types of captives since 2006, captives really did not take hold for mid-size community banks ($500mm - $10bn) until an updated structure was designed and vetted with regulators in 2012.

“Since late 2012, we have seen the number of banks with captives explode. The majority of our banks that are good candidates for owning a captive either have one in place or are in process of putting one in place,” said CEO of Indiana Bankers Association, Amber VanTil. “We have been discussing bank captives with other state banking associations throughout the country and there’s been tremendous interest.”

It is important to recognize that the captive structure does not typically replace a bank’s primary commercial insurance program. However,

it does allow a bank to more formally self-insure risks that are currently unfunded or that the bank has considered retaining (i.e., increased deductible layers). Typically, the captive augments commercial policies in the following ways: • Covers the bank’s commercial deductible layers, including significant “named storm” deductibles for banks with coastal branches • Provides “difference in conditions” coverage for existing commercial policies, which primarily relate to sublimits and exclusions on the commercial policy form • Increases coverage levels on existing policies (excess layers) • Identifies other currently unfunded risks to insure where commercial insurance is not available to the bank.

Along with benefits received from enhancing a bank’s risk management process, Congress approved a small business incentive for mid-size companies that form their own insurance companies to insure these currently unfunded risks. Through the incentive, banks can form their own captive insurance companies and then make an election under Section 831(b) of the Internal Revenue Code.

This allows companies to pre-fund for potential future risks on a tax advantaged basis, provide an incentive to set money aside for future potential claims and create a mechanism for companies to formalize their current self-insurance program.

In the December 2015 Appropriation Bill, Congress moved the annual allowable premium limit from $1.2 million to $2.2 million for the tax years after 2016.

Financial institutions with larger baskets of unfunded risks will be able to continue to grow their captive over time as the institution grows

organically or with acquisitions and the small business incentive will also grow. This increase in the allowable premium limit has spurred additional interest for larger institutions ($2bn plus) that have more significant unfunded risk.

The potential savings related to this small business subsidy (Section 831b) for captives varies from bank to bank, but they can be significant. In some cases, holding companies can see an increase to earnings per share of 3-5% prior to adjusting for claims made to the captive. Of course, a bank does not expect a significant claim year after year. The captive is designed to cover risks that typically have high potential loss severity but low likely frequency. The captive becomes a way to put reserves away, literally for a rainy day.

Of course, this solution is not a fit for every bank. This solution should only be implemented by banks with sufficient capital and earnings.

Holding companies that want to form a captive must be well managed and well capitalized and their affiliated bank that pays premiums into their captive must have sufficient capital and earnings to support the additional insurance expense at the bank level.

Captive insurance companies are a growing trend for high performing banks throughout the country. As banks become more aware of their unfunded risks through ongoing enterprise risk management, the captive offers a unique and customized approach to identify and fund for those risks on an annual basis.

Banks with an interest in exploring whether a captive insurance company is a good fit for their institution should contact Josh Miller at jmiller@key-state.com.

Currently 27 state banking associations, including the Illinois Bankers Association, have the Bank Captive Program as a Preferred Vendor for their members.

March-April 2019 •

• 19 •

• 20 •

• March-April 2019

SPECIAL BUSINESS SERVICES SECTION

Ask the Coach

One of our goals for the new year is to have a more philanthropic culture.

How can our bank give back to our community?

We are always excited to hear that banks are implementing social good within their company culture. Today’s image of the banking industry can have negative tendencies. It is banks like this that will be the ones to turn the tide and make the financial services industry one that is seen in a positive light. There are many ways you can implement this goal in 2019, and here are our top suggestions:

Donate

Each year, pick an organization that your institution would like to support. For example, maybe there is an organization in your community that provides school supplies for children in less fortunate families. Start a drive in your office to gather bookbags and school supplies that you can then donate to that organization. A good way to make this successful is to set goals along the way. For this example, maybe your goal would be to collect 100 bookbags full of supplies. Then, set goal markers along the way. Reward your office with something special every time an additional 25 bookbags come in. Rewarding your employees for their philanthropic effort will only increase involvement, which increases what you are able to give back to your community.

Volunteer

There are many organizations today that offer their employees time off of work to volunteer. By doing so, you are creating a culture that promotes giving back to the community. Your employees will surely have causes that they hold near and dear to their hearts that they would love to support, and getting paid time off to do so will go a long way in their eyes. This not only can be used as an attention grabber to attract top talent, but it will also prove to your community that you are committed to their success.

Serve on a Community Organization Board

Naturally, as professionals, we always have bettering our businesses at the top of our minds. Serving on a Community Board can achieve multiple goals at once.

Getting yourself known in the community is a great way to increase success at your financial institution. Serving on a community board provides networking opportunities that you would not have had access to before, while also tying the name of your bank to a community organization. It should always be encouraged to your employees to be a part of organizations they feel passionately for, and allowing employees time to serve on community boards is a win-win for your bank and the community.

Come Together with Other Community Companies

If you aren’t equipped to plan and host an event on your own, take advantage of the relationships you have

built through serving on community boards and co-host an event with another organization in town. Not only will you be building and strengthening a relationship with another community business, but you are working together for the greater good of your community as well.

Community High School Scholarships

Bettering the future education opportunities for the youth in your community will always be an incredible way to get involved. Choose local high schools to create an application for their students and give a certain dollar amount to graduating seniors that are looking to continue their education in the financial services industry. This is a way to better your community, and also better the industry you work in every day. Attracting talent is a challenge all banks see, and the talent pool will get bigger if you support the educational efforts of your community youngsters.

Do you have a question for our coaches?

Ask your question at BankTalentHQ.com/blog.

For more career, sales and leadership advice, please contact our coaches: DONNA FLYNN, career/management coach, dflynn@skillsmastery.com, 630-624-4319 JOE MICALLEF, sales coach, joe@growupsales.com, 773-329-0066

Internships

Open the doors of your bank branches to high school students that have shown an interest in the banking industry. Paid or unpaid, this is a great way to showcase the endless opportunities that the banking industry has to offer. You are, again, offering an educational experience to those within your community, while sparking their interest to work in a bank in the future.

Make Social Good a Part of Company Culture From day one, make it known within your bank that you have, and fully believe in, a philanthropic culture. This is a message that needs to be put into place from the top down. Lead by example and show your staff how you expect the culture to be executed in their every day job duties. It’s a great goal to have in this coming year, and one that should be implemented in years to come. Try implementing some of these ideas this year to get your bank acclimated to the idea of having social good a top goal from here on out.

March-April 2019 •

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First Bank of Highland Park Partners with Harper College’s Banking Apprentice Program First Bank of Highland Park (FBHP) has partnered with Harper College’s Registered Banking Apprentice Program. An apprenticeship is a career path – training and guiding a student through the first few years on the job. Harper’s apprenticeship program combines in-the-classroom instruction with on-the-job learning experience, allowing FBHP’s experienced employees to share their banking knowledge.

Pictured from left to right: Jean Borowiec, Personal Banker; Leo Mora, Banking Apprentice; Alma Castro, Personal Banker; Brien Leahy, Executive Vice President/Retail Banking and Amy Kahhat, Vice President/Branch Banking Manager.

Apprenticeships help employers develop highlyskilled employees. Leo Mora joined First Bank of Highland Park as a Banking Apprentice in August of 2018. Mora is the first student enrolled in Harper’s Banking Apprentice Program. For the next two years, he will study to earn a business degree and receive hands on training as he works alongside our team of experienced bankers.

Every Apprentice is assigned a mentor who is their main point of contact at the organization. Long time Personal Bankers, Alma Castro and Jean Borowiec, are Mora’s mentors, and Nicole DiVito serves as the overall coordinator of the Apprenticeship program. “Harper College’s Apprenticeship Program is a wonderful pipeline for talent development” according to DiVito. “It’s challenging to recruit top talent in today’s job market,

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• March-April 2019

The IBA and Harper College Team Up to Offer Banking and Finance Apprentice Program Harper College, located in Palatine outside of Chicago, has become nationally-recognized for offering a number of non-traditional apprenticeships. Harper is a registered apprenticeship program sponsor, meaning that it streamlines the apprenticeship process for employers by doing all the administrative work required.

The Illinois Bankers Association and Harper College have collaborated on a banking and finance apprenticeship program that began in the fall of 2018. This non-traditional Registered Apprenticeship is a two-year Associate in Applied Science (AAS) degree in Business Administration with a concentration in banking.

For more information on the apprentice program, connect with the IBA’s Callan Stapleton at cstapleton@ilbanker.com or 217-789-9340.

and Harper’s Apprenticeship allows us to develop skilled employees.”

Mora is starting his Apprenticeship with the Teller Operations team and will later work with the Personal Banking team. He also attends classes at Harper College two days a week that support his bank training.

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

COMMUNITY SERVICE AWARD

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

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

2018 RECIPIENT Jeffrey D. Snyder Forreston State Bank Forreston

2018 RECIPIENTS Fairfield National Bank Lisle Savings Bank Washington Savings Bank

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

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

Submit your nomination at ilbanker.com/Be-Recognized

We Need Your Help in Making an Impact!

B

anks like yours are good neighbors. They pay taxes. They provide loans and safeguard customer deposits. Their employees shop for services, volunteer and are solidly rooted in their communities. In other words, Illinois banks FUEL the economy.

For example, did you know that banks doing business in Illinois generate a total economic impact of $45.3 billion in wages, salaries and the purchase of goods and services? That is a staggering number, but, as IBA President and CEO Linda Koch mentioned at December’s Chicago Area Chapter Breakfast, our industry does not take enough credit for this and everything else it does to fuel our state’s economy.

We need you to help share that message – to the media, to lawmakers, to your customers, and even to your families – over and over until it takes hold.

That’s why the Illinois Bankers Association retained the University of Illinois’ REAL Institute of Government and Public Affairs to analyze the economic impact of our industry’s contributions.

Their recently-released first report shows an estimate of the impact as a whole, broken down into purchases and sales, payments of wages and salaries and finally taxes paid to state and local governments. Subsequent REAL reports will focus on other areas like the impact of bank lending.

The IBA has sent our state lawmakers and members of Congress a copy of the Economic Impact Report Summary, and many of you have asked what you can do to help spread the message.

Well, here is your chance.

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• March-April 2019

Five easy steps you and your bank can take to do your part: 1. Visit our Economic Impact Study Webpage where you’ll find the full report, key findings, talking points and more. (www. ilbanker.com/About-Us/Our-News/post/ iba-releases-study-on-economic-impact-ofillinois-banks) 2. Download the Sample News Release, customize it with your bank’s information and share it with your customers, the media and your legislators.

3. Review the Talking Points for Bankers for further information.

4. Click on our social media pages (Facebook, Twitter, LinkedIn and Instagram) and “like” and “share” our economic impact posts. Create your own messages to share via social media.

5. Let us know when you’ve made a connection with your local reporter or lawmaker. We’d love to hear about it!

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

IBA Insurance Services

ABG RETIREMENT PLAN SERVICES Pat Bearss 309-397-5039 APPI ENERGY Jane Seagraves 800-520-6685 ASCENSUS Heather Hoskins 800-346-3860

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.

Jim McNichols 312-952-1324 jmcnichols@ilbanker.com

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

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

January-February 2019 •

• 25 •

The Next Cybersecurity Threat: Your Email Inb0x

By John Meyer, Abrigo Group

$

5,300,000,000,000 … That’s how much cyber criminals have siphoned from businesses and consumers worldwide through business email compromise (BEC) and email account compromise (EAC) scams since 2013, according to the Internet Crime Complaint Center (IC3).

The FBI noted that these scams have increased 136% worldwide from December 2016 to May 2018.

How do these scams work?

There are three basic stages to a BEC/EAC scam:

• Stage 1 – Compromising victim information and email accounts

• Stage 2 – Transmitting fraudulent transaction instructions

• Stage 3 – Executing unauthorized transactions Stage 1 – BEC/EAC scams can be completed through a simple email exchange with a fraudulent look-alike email or with a more advanced email phishing scheme. Through social engineering or malware, fraudsters attempt to compromise a legitimate business e-mail account. If they cannot compromise an email, the scammer spoofs a valid email address by inserting a character such as a “0” (zero) in place of an “O” (capital letter O), making the fake email look realistic.

Social engineering is the use of deception to manipulate individuals into giving out personal or confidential information, either in-person or through digital channels. The fraudsters monitor and study their selected victims prior to initiating the scam. This can be everything from diving deep into the victim’s social media accounts or physically infiltrating a business to gain information. The growth of the internet and social media has made social engineering significantly easier and less time consuming. Now, instead of visiting a physical location, the scammers can get most of the needed information through a simple web search.

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• March-April 2019

According to the IC3, “The subjects are able to accurately identify the individuals and protocols necessary to perform wire transfers within a specific business environment. Victims may also first receive ‘phishing’ e-mails requesting additional details regarding the business or individual being targeted (name, travel dates, etc.).”

In other instances, victims of the BEC scam report being targeted by ransomware cyber intrusions immediately preceding a BEC incident, usually through a more complex phishing scam. A victim receives an e-mail from a seemingly legitimate source, such as a coworker, friend or vendor, that contains a link. When the victim clicks the link, they unknowingly download malware, which gives the criminals access to confidential or secure internal information. These malware programs allow the attacker to infiltrate the company’s email system or victim’s email account and learn their normal procedures for money transfer by reading through sent items folders.

Stage 2 – Once the criminals have the information they need, they send the payment information.

Since wires are a quick international transfer vehicle, most BEC/EAC scams request wire transfers. According to the 2017 AFP Payments Fraud and Control Survey, checks are the secondmost requested payment vehicle.

ACH credits and corporate/ commercial credit/debit cards are tied as the third-most frequent payment vehicle.

Stage 3 - Often, the victim is asked to keep the transfer confidential and there is an element of urgency associated with the payment or transaction. Criminals are taking these scams one step further now, often calling the victim to follow up on the wire request, giving the transaction more preceieved legitimacy.

More advanced crime rings behind these scams regularly use “money mules” to move the transferred funds, making it harder for financial institutions to detect. Sometimes, the scam victims themselves are recruited as innocent money mules. Fraudsters also recruit mules from “work from home” postings or romance scemes. The mules receive the

fraudulent funds in their personal accounts and are then directed by the fraudster to quickly transfer the funds to another financial institution account, usually outside the U.S. Most payments end up in Asian financial institutions with China and Hong Kong leading the way. The IC3 reported, however, that 113 other countries have also been recipients of these transfers.

So what's the difference?

BEC scams target a business that regularly performs wire transfer payments or works with foreign suppliers. Victims range from small businesses to large corporations and deal in a wide variety of goods and services, indicating that every business is at risk.

It is important to note that not every BEC scam contains a payment element. The criminals might also be asking for confidential information in the form of Personally Identifiable Information (PII) or Wage and Tax Statement (W-2) forms.

An example of a BEC scam email looks like this:

This example highlights two common components of a BEC phishing email: an element of urgency and a request to keep the transfer confidential.

As damaging as BEC scams are for businesses, EAC scams are hurting individuals at an alarming rate.

These scams follow a similar workflow to BEC scams, targeting individuals usually associated with financial institutions, law firms and real estate March-April 2019 •

• 27 •

companies. They also look for victims who are in the midst of a large purchase, such as a home, where they have to wire funds for closing.

Criminals executing EAC scams generally use two different techniques: account compromise and email spoofing. With account compromise, they hack into a victim’s account and monitor emails for invoices or payment information. Email spoofing requires the criminals to create a fake email address that mimicks the actual address, often replacing “O” with “0” or “_” instead of “-“.

After successfully scanning the victim’s inbox for payment information, the attacker updates the payment information with their account information and resends the email, making it seem legitimate. The criminal might infect an employee’s email account at a title company with malware and send incorrect wiring instructions to an excited home buyer. Or the attacker might spoof the title company’s email and send incorrect wiring instructions to the would-be buyer.

Other examples of EAC scams target consumers with legal, brokerage or lending services pending.

What can a financial institution do to help its customers?

There are many ways institutions can prevent or detect BEC and EAC scams to better protect themselves and their customers. Institutions need to implement greater communication and collaboration between their internal AML, fraud prevention and cybersecurity units. Many times, these groups are separately investigating the same criminals and are unaware of each other’s work.

Additionally, financial institutions can hold requests for international wire transfers for an additional period of time to verify the legitimacy of the request.

A simple phone call to validate the transfer can save both the institution and the customer time and money.

Other methods of combatting this fraud include two factor authentication with accounts attempting transfers, a solid fraud detection solution, and educating businesses and consumers on the risks of these scams. Employees should be well-versed on the red flags so they can stop fraudulent transfers.

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• March-April 2019

Education programs help businesses understand that they can reduce their risk of BEC/EAC scams if they:

• Avoid free web-based email accounts • Are cautious with what is posted on company

and personal social media sites and company websites, especially job duties/descriptions, hierarchal information, and out of office details

• Are suspicious of requests for secrecy or pressure to act quickly

• Create intrusion detection system rules that flag emails with similar extensions

• Register all company domains that are slightly

different, including replacing letters with numbers (0 instead of O)

• Verify changes in vendor payment location • Confirm requests for transfers of funds • Scrutinize all email requests • Install anti-virus or malware software Financial institutions can also use basic KYC principals to protect their customers from these scams. Be aware of a customer’s typical wire transfer activity and verify any deviations.

Resources FinCEN and the FBI have put out several advisories on BEC and EAC scams. The FBI’s May 4, 2017, Alert Number I-050417-PSA and FinCEN’s FIN-2016-A003 documents are good resources for financial institutions to review. In cases that result in a SAR filing, financial institutions should reference Advisory FIN-2016-A003 and include key terms such as BEC Fraud when a business is the victim and EAC Fraud when an individual is the victim.

Through education and awareness, both businesses and financial instutions can better protect themselves, their employees and their customers from these dibiltating scams.

About the author: John Meyer is the Chief Product Officer at Abrigo, formerly Banker’s Toolbox, and has 15+ years of experience in the banking and technology industry. Working with Abrigo, he oversees the development of the risk management product suite, including BAM+, which helps financial institutions stop these types of malicious attacks.a by utilizing sophisticated detection algorithms that flag unusual wire, ACH, debit, and check activity to help you protect your customers. For more information visit, www.abrigo.com/company.

IBA Associate Member

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MAIN STREET, INC. Birmingham, AL Contact: Jenny Wilson www.mainstreetinc.com Main Street partners with over 2,100 community-oriented financial institutions who desire a superior customer service model in their checking, analytics, and marketing

programs. Our simplified approach equips you with the information, tools and solutions needed to win in today’s market. Whether you are trying to acquire, retain, or expand account holder relationships, Main Street provides a cost-effective, straightforward, partnership to meet your goals.

MARKET INSIGHTS, INC. Seattle, WA Contact: Joe Sullivan www.formarketinsights.com Market Insights is a consulting firm specializing in the development of strategies that help community banks grow in today’s dynamic marketplace. Since 1993, our team of consultants has earned a reputation for helping financial services executives and marketers position their institutions for growth. We work with financial institutions in markets across the country.

MIKE HINES & ASSOCIATES Stronghurst, IL Contact: Mike Hines Bank equipment provider. Specializing in Hamilton Safe equipment.

Safe deposit box drilling, safe and vault servicing. Time lock servicing and repair at your location.

Licensed Locksmith with 13 years of experience. Small company with low overhead allowing us to be very competitive.

NOVA (a division of Tri-North Builders) Portsmouth, NH Contact: Jennifer Cherry novaretailgroup.com

experience and delivers your brand to the world. We'll make you look your best because your brand is our business.

PRISMPREMIER New Brunswick, NJ Contact: Asaad Faquir PrismPremier CECL 360 is a webbased software solution designed to address the full spectrum of FASB’s CECL standard. An easy-to-use system providing quality, flexibility and simplicity, CECL 360 offers multiple methodologies and is customizable for your bank’s needs.

We can help you make a seamless transition from ALLL to CECL.

REMEDY CONSULTING New Berlin, WI Contact: Peter Kay remedyconsult.net Bank and Credit Union Advisory Specializing in: Systems Selections and Implementations Contract Negotiation In-house vs, Outsource Advisory Mergers and Acquisitions Technology Review and Strategy sessions.

SUNVEST SOLAR INC. Geneva, IL Contact: Joe Gordon SunVest Solar is a leading highquality and high-integrity solar design/build company, ranked by Solar Power World Magazine in 2018 as a Top 30 Solar Developer in the U.S. Our goal is to partner with IBA members to finance high-R.O.I. solar projects, with current government incentives paying 98% of the cost for a 3 to 4-year payback.

Nova designs a better brand experience, because when a place speaks, it gets people talking. We work with you to design and develop an immersive environment through visuals and merchandising that connects customers to a memorable

March-April 2019 •

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EXECUTIVE ADMINISTRATION

LINDA KOCH President and CEO lkoch@ilbanker.com

ERICH J. BLOXDORF Executive Vice President & COO ebloxdorf@ilbanker.com

MARY CURL Executive Assistant and HR Manager mcurl@ilbanker.com

PAM MACHA Springfield Office Coordinator pmacha@ilbanker.com

CAROLYN SETTANNI Vice President and Assistant General Counsel csettanni@ilbanker.com

CARLY BERARD Assistant Counsel cberard@ilbanker.com

AMY GIACOMUCCI Law Assistant agiacomucci@ilbanker.com

JEFF BOWDEN Senior Banking Advisor jeff.bowden47@comcast.net

DAVE BARBEAU Senior Banking Advisor dbarbeau@htc.net

SARAH COWAN Membership & Government Relations Assistant scowan@ilbanker.com

MARCIA STRATTON Director, MIS & Finance mstratton@ilbanker.com

MARIE SOUTH Financial Assistant msouth@ilbanker.com

LAW AND COMPLIANCE

BRUCE JAY BAKER Executive Vice President & General Counsel bbaker@ilbanker.com

BANK AND PARTNER RELATIONS

JULIE CLARK Vice President jclark@ilbanker.com

FINANCE

MARK BENNETT Vice President and CFO mbennett@ilbanker.com

IBA STAFF DIRECTORY 2019 • 30 •

• March-April 2019

Phone 217-789-9340 | ilbanker.com Compliance Helpdesk 800-GO-TO-IBA

ILLINOIS BANKERS BUSINESS SERVICES, INC.

BRIAN HOFFMAN President, Business Services / BankTalentHQ bhoffman@ilbanker.com

JIM MCNICHOLS Vice President IBA Insurance Services jmcnichols@ilbanker.com

ILLINOIS BANKERS GROUP INSURANCE TRUST

CASEY WIDHOLM Marketing Manager cwidholm@ilbanker.com

ERICH J. BLOXDORF Plan Administrator ebloxdorf@ilbanker.com

ROBERT PENWELL Relationship Manager bpenwell@ilbanker.com

HILLARY MEYERS Trust Manager hmeyers@ilbanker.com

CASSIE MATTSON Manager cmattson@ilbanker.com

DENISE PEREZ Education Coordinator & Chicago Office Mgr. dperez@ilbanker.com

AMY SALE Education Assistant asale@ilbanker.com

ILLINOIS BANKERS EDUCATION SERVICES, INC.

CALLAN STAPLETON Vice President cstapleton@ilbanker.com

KEVIN KLUG Assistant Vice President kklug@ilbanker.com

BOB ANDERSON Manager banderson@ilbanker.com

GOVERNMENT RELATIONS

BEN JACKSON Vice President bjackson@ilbanker.com

AIMEE WINEBAUGH Director awinebaugh@ilbanker.com

KIRSTEN FRANKLIN Manager kfranklin@ilbanker.com

SARAH COWAN Membership & Government Relations Assistant scowan@ilbanker.com

COMMUNICATIONS, MARKETING AND ASSOCIATE MEMBERSHIP

DEBBIE JEMISON Vice President djemison@ilbanker.com

TAMMY SQUIRES Assistant Vice President tsquires@ilbanker.com

IBA STAFF DIRECTORY 2019

Phone 217-789-9340 | ilbanker.com Compliance Helpdesk 800-GO-TO-IBA

March-April 2019 •

• 31 •

ON THE MOVE Beloit, WI

FIRST NATIONAL BANK AND TRUST COMPANY Don O’Day has been promoted to Executive Vice President Chief Banking Officer.

Dallas, TX

TIB – THE INDEPENDENT BANKERSBANK, N.A. Erik Brizendine has been promoted to Senior Vice President/ Director of Information Services, and Mike Schell has been promoted to Senior Vice President/ Senior Relationship Officer.

Davenport, IA

QUAD CITY BANK & TRUST Kathy Francque to EVP, Correspondent Banking & Information Services; Tracy Brashears to 1st Vice President, Wealth Management & Trust Services; Amy Braack to Senior Vice President, Correspondent Banking Officer; Janelle Carter to Vice President, Treasury Management; Bob Tupper to Associate Investment Officer II; Clay Boatman to Senior Vice President, Correspondent Banking Officer; and Tyler Edwards to Vice President of the Quad City Investment Center.

Decatur

HICKORY POINT BANK Dr. Najiba Benabess has been appointed to the bank’s Board of Directors. Jenny Krell has been promoted to Vice President. Scott Souter has been named Senior Vice President, Commercial Banking.

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• March-April 2019

DeKalb

FIRST NATIONAL BANK First National Bank has hired Justin Gifford as an Advisor for First Investments & Planning.

Effingham

MIDLAND STATES BANK Leon Holschbach has retired as CEO of Midland States Bancorp Inc., and Jeffrey Ludwig will now be President and CEO of the company and CEO of its Midland States Bank subsidiary.

In addition, Cornell D. Lurry, Sr. has been named the Regional Community Development Relationship Manager for the Northeastern Illinois Region, and Matthew Dunbar has joined the bank as Director of Mortgage.

Greenville

BRADFORD NATIONAL BANK Mike Ennen was selected as the 10th President of Bradford National Bank, and Doug Stroud will continue his role as CEO. Michelle Brown has been promoted to Vice President; Jeff Hasenmyer has been promoted to Assistant Vice President and Head Cashier; and Kelsey Kendall has been promoted to Assistant Vice President.

Highland Park

FIRST BANK OF HIGHLAND PARK Jean K. Choi has been hired as VP/Commercial Banking.

Joliet

BUSEY BANK Busey Bank in Joliet welcomed Don Johnson as vice president, commercial portfolio manager

and Jeff Rzasa as senior vice president, commercial market president for Grundy and Will counties.

Madison, WI

BANKERS’ BANK Andy Carlson recently joined the Bankers’ Bank correspondent banking team as Vice President – Commercial Banker, with relationship and business development responsibility throughout central and northern Illinois.

Mattoon

FIRST MID BANK & TRUST First Mid Bank & Trust announced Nik Kern as the Marshall Community Bank President; Andrew Garvin as Branch Manager II in Paris; and Spencer Russell has been promoted to Paris Community Bank President. In addition, First Mid Wealth Management welcomed Ann Higgens as financial advisor.

Moline

QCR HOLDINGS Larry Helling will take the baton from Douglas Hultquist at the company's annual shareholder meeting scheduled for May 23. Hultquist will retire as president and CEO but continue to serve on the board of Springfield First Community Bank, QCR’s newest subsidiary.

Helling will take over as CEO of the overall company and remain president and CEO at Cedar Rapids Bank & Trust, another one of QCR's brands. Todd Gipple, the chief financial officer and chief operating officer of QCR, will add the president's title.

Rockford

MIDLAND WEALTH MANAGEMENT Midland Wealth Management, a division of Midland States Bank, has announced David Allen will serve as director of retirement plan services, and Doug Warren and Robert Torbert will serve as Trust Officers.

Springfield

SECURITY BANK, S.B. Security Bank, s.b. announced the promotion of Stephan Paul Antonacci to President and Chief Executive Officer.

BANK OF SPRINGFIELD After 45 years in the banking industry, Bank of Springfield President

Mick McGlasson has retired, and Mike Pence will serve as the new President of the bank.

Urbana

BUSEY WEALTH MANAGEMENT Aron McDonald has been named Managing Director.

Terre Haute, IN

FIRST FINANCIAL BANK Brian Gundy has joined First Financial Bank as a Mortgage Originator in Bloomington, Ill.

2019

GSB Online Seminar Series ONGOING THROUGHOUT THE YEAR

About the GSB Online Seminar Series Offering a convenient and costeffective way to participate in educational opportunities, these programs are designed specifically for financial professionals and delivered by some of today’s top industry experts. The use of state-of-the-art audio and video technology ensures a quality, interactive learning experience.

Relevant, bank-specific topics provide a solid educational value for you and your staff.

Registration includes: • One connection into the online seminar presentation—invite others to participate through the same connection at no additional cost • Handouts and other resource material • Unlimited access to the recording of live, online seminar presentations for 90 days after the conclusion of the program • Access to industry experts and nationally known speakers from the convenience of your office

Educating Professionals, Creating Leaders

GSB.org

ADVERTISING INDEX APPI Bankers’ Bank (Wisconsin) Howard & Howard Illinois Bankers Group Insurance Trust Investors Title KeyState Captive Management MIB-Midwest Independent Bank United Bankers’ Bank

800-520-6685 www.appienergy.com 20 800-388-5550 www.bankersbank.com 9 312-372-4000 www.howardandhoward.com 2 217-789-9340 www.ilbanker.com/Insurance/Insurance-Trust 39 919-945-2384 www.invtitle.com 17 260-227-0265 www.key-state.com 18 800-347-4642 www.mibanc.com Back Cover 612-881-5800 www.ubb.com 11

March-April 2019 •

• 33 •

NEWS & NOTES IBA Posts List of Member Banks Offering Special Assistance During Government Shutdown

During the recent government shutdown, the IBA encouraged member banks to share the ways their banks were helping customers, and responses were posted on our website at ilbanker.com.

Should the shutdown continue, please share your bank’s efforts by emailing Debbie Jemison at djemison@ilbanker.com. On the page, we encouraged affected consumers to first contact their own bank for information on the availability of special assistance during the shutdown.

IBA Chairman Dan Daly, SENB Bank, and IBA President and CEO Linda Koch were quoted in Governor Pritzker’s news release about helping federal workers during the shutdown, and a link to the IBA’s list was also included in the news release about the state’s $100 million loan program to help federal workers. bit.ly/2DvpDDU Daly said, "Illinois' banking community takes pride in serving the needs of our customers, and certainly those individuals and businesses impacted by the shutdown are no exception.

Our bank, and all Illinois banks, stand ready to help our customers through this hardship."

Teach Children to Save Day is April 12 Register your bank at aba.com

• 34 •

• March-April 2019

Congratulations to Those on Crain’s Notable Women in Commercial Banking List

Congratulations to all of the extraordinary women who are featured on Crain's Chicago Business' list of Chicago’s Notable Women in Commercial Banking, including many from IBA member banks! A special congrats to current IBA Board Member Pamela ShararStoppel, President and CEO of Wheaton Bank & Trust, a Wintrust Community Bank, who made the list. bit.ly/2GTKzIv

Steelman Receives WIU Alumni Achievement Award

IBA Past Chairman Michael Steelman, Chairman and CEO of Farmers and Merchants State Bank of Bushnell was among five Western Illinois University alumni, to receive the WIU Alumni Achievement Award.

Western's Alumni Achievement Award is given in recognition of outstanding contributions in one or more of the following: exceptional accomplishment in

one's chosen field of endeavor; exceptional service in community affairs at the local, state or national levels; or exceptional service in support of the advancement and continued excellence of WIU.

Hendren Named Athena Young Professional Award Recipient

The Champaign County Chamber of Commerce announced that its Athena Young Professional Award recipient is Abby Hendren, executive vice president for brand strategies at Busey.

This prestigious award is given to a proven emerging leader in the community who strives toward the highest levels of personal and professional accomplishment while serving as a role model for young women.

MB Financial Bank Donates Facility and $25,000 to Chicago Urban League

MB Financial Bank, N.A., announced that it has donated a former branch to the Chicago Urban League, along with $25,000 to help retrofit the building for the League’s use.

The Chicago Urban League will use the site, which includes a 5,300-square-foot former bank branch and 26 parking spaces, to expand its youth development programs, which served more than 800 young people in 2018.

The programs serve teenagers ages 13 to 18, with a focus on reducing youth involvement with the criminal justice system, decreasing school absences, and improving academic performance and socioemotional development.

NEWS & NOTES Gary Rhodes Joins 50 Year Club

Julie Clark and Gary Rhodes

Stillman Bank’s Board of Directors recently recognized Gary L. Rhodes for 50 years of service at Stillman Bank. Rhodes began his banking career in 1968 as Cashier in the Bank’s Stillman Valley Office. He held numerous positions throughout his career and recently retired as Chairman and CEO of Stillman Bank. He currently serves as Chairman of the Bank’s holding company. He was also inducted into the IBA’s 50 Year Club. “We are fortunate to have dedicated bankers like Gary Rhodes, who has been working for his customers and community for half of a century," said Julie R. Clark, Vice President, Bank & Partner Relations at IBA.

Illinois Bankers attend Freshman Fly-In

In late January, a delegation of IBA bankers and staff braved the winter weather to attend the American Bankers Association’s “Freshman Fly-in” in Washington, D.C. Considering that there are over 100 new members of Congress, the Fly-in was very well attended with bankers from around the country.

We met with all three new members of Illinois’ congressional delegation: Congressman Jesus “Chuy” Garcia, Congressman Sean Casten, and Congresswoman Lauren Underwood. We learned about their priorities as new members of Congress, and discussed critical banking priorities including credit union taxation and regulation, a legislative solution for cannabis banking, and BSA and CRA reforms.

Join us for the Washington Visit, September 16-18, as we continue to advocate for our industry! Connect with Kirsten Davis-Franklin at kfranklin@ilbanker.com for more information.

Ben Jackson, Linda Koch, Congressman Casten, Kathleen Narusis, Tammy Randa and Kevin Olson.

Ben Jackson, Congressman Garcia and Linda Koch.

Farm Financial Standards Council Releases Updated Financial Guidelines for Agriculture

An updated version of the Financial Guidelines for Agriculture has been released by the Farm Financial Standards Council.

With a January 2019 issue date, this 272-page edition replaces other versions of the document that have been in circulation since 1991. The most recent prior update was done in 2017.

The purpose of the Guidelines is to help produce standardized financial statements of farm and ranch operations. It is available

Kevin Olson, Kathleen Narusis, Tammy Randa, Congresswoman Underwood, Ben Jackson and Linda Koch.

as a downloadable pdf file at the Council’s Website, www.ffsc. org. The cost is $30 each for the

Financial Guidelines for Agriculture as well as the Management Accounting Guidelines.

March-April 2019 •

• 35 •

EVENTS CALENDAR SEMINARS, CONFERENCES AND FORUMS APR 2 The Emerging Consumer & How

to Bank Them - Oak Brook APR 3 The Emerging Consumer & How

to Bank Them - Springfield APR 8 Credit Compliance, Part 1 -

Oak Brook* APR 9 Credit Compliance, Part 2 -

Oak Brook* APR 9 Ag & Commercial Lending Update

- Utica APR 10 Credit Compliance, Part 3 -

Oak Brook* APR 10 Ag & Commercial Lending Update

- Springfield APR 11 Deposit Compliance - Oak Brook* APR 11 Ag & Commercial Lending Update Effingham APR 12 BSA/AML Compliance and

Regulators' Forum* - Oak Brook APR 12 Tech & Ops Forum - Bloomington APR 17 IRA Essentials - Springfield APR 18 Advanced IRAs - Springfield APR 23 New Accounts in Illinois Springfield APR 24 New Accounts in Illinois Oak Brook APR 24 Fundamentals of Ag Financing - Springfield APR 25 Fundamentals of Ag Financing - Utica APR 25 Basic Personal & Business Tax

Return Analysis - Springfield APR 26 Basic Personal & Business Tax

Return Analysis - Oak Brook APR 30- LaserPro Training MAY 2 - Schaumburg MAY 3 CFO Forum (South) - Springfield MAY 7-8 BSA/AML Bootcamp - Oak Brook MAY 9- Advanced BSA/AML Academy 10 Oak Brook

MAY 10 CFO Forum (North) - Schaumburg MAY 15 Marketing Forum - Peru MAY 16 Marketing Forum - Springfield MAY 16 ACH Exception Handling Springfield MAY 17 ACH Exception Handling Oak Brook MAY 21- Operations School 23 Oak Brook MAY 22 Small Bank CEO Forum - Nashville MAY 23 Small Bank CEO Forum Bloomington MAY 29- Commercial Lending Workshop 30 Oak Brook * Regulatory Compliance Series

WEBINARS APR 1 Basic Cash Flow Analysis* APR 2 Core Management Skills* APR 2 Workplace Violence Planning & Active

Shooter Preparedness* APR 2 Advanced Financial Statement Analysis• APR 3 Robbery Prevention & Response* APR 3 Lie Detection* APR 3 IRA Beneficiary Distributions• APR 3 The World of Trusts for Bankers• APR 4 Successful Workout Strategies for

Problem Loans* APR 4 Mapping Multi-Tiered Business Accounts

with New CDD* APR 4 Community Bank Capital Raising Simplified• APR 4 Growing Long-Term Retail

Deposits: Uber-izing Design of

Bank Deposit Vehicles• APR 4 What Should a Married Couple’s Estate

Plan Be Post 2017?• APR 5 IRA Death Payments to Beneficiaries* APR 5 LinkedIn Value Strategies• APR 8 Lending to Municipalities* APR 9 What's Hot in Mortgage

Compliance Now?*

APR 9 Business Writing for Financial Professionals* APR 9, Commercial Construction Loans: 16, 23 Administering and Monitoring• APR 9, C&I Business Cash Flow Basics and 16, 23 Global Cash Flow Integration Issues

for Lenders and Analysts• APR 9, Understanding C&I Loan Structuring, 16, 23 Loan Agreements and Covenants• APR 9 Advanced Cash Flow Analysis• APR 10 Marketing & Advertising Compliance* APR 10 UCC 3 & 4 and Other Legal Check Issues* APR 10 Advanced Tax Return Analysis• APR 10 IRA Beneficiary Distributions• APR 11 Reg E Compliance: Five Best Practices

for Handling Disputes* APR 11 Preventing Violence in the Workplace* APR 11 Community Bank Mergers and

Acquisitions Simplified• APR 12 Excel Explained: Creating Interactive Spreadsheets* APR 12 Evolution of Ransomware• APR 15 Commercial & Business Lending

Basics for Support Personnel* APR 16 Flood Insurance Compliance* APR 16 Developments in Document Review

for Corporate Trustees• APR 17 Regulation O: Lending to Insiders* APR 17 HSA Fundamentals• APR 18 Escrow Accounts Compliance* APR 18 Loan Structuring Basics* APR 18 Growing Long-Term Retail Deposits:

Withdrawal-Only Deposit Accounts• APR 22 Basics of Banking: An Overview* APR 23 Vault Security & Disaster Recovery Essentials* APR 23 Opening Fiduciary Accounts* APR 24 Developing and Organizing an

Effective Remote Deposit Capture

Program (RDC)* APR 24 Creating the Right ERM Program for

YOUR Community Bank* APR 24 HSA Advanced Concepts•

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

August 21-22 Ag Banking Conference Crowne Plaza Springfield

September 24-25 Women in Banking Conference Crowne Plaza Springfield

June 7 Compliance Conference Chicago Marriott Naperville

September 9 Fall Golf Outing Pekin Country Club

October 29 Fall Compliance Conference DoubleTree by Hilton, Collinsville

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

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

REGISTER TODAY AT ILBANKER.COM!

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• March-April 2019

EVENTS CALENDAR APR 24 Predicting Future Job Performance

through Behavioral Based Interviews• APR 24 Deepening Human Connection in an

Increasingly Digital World• APR 25 10 BSA Exam Hot Spots* APR 25 Mortgage Origination Compliance,

Part 1* APR 25 Mentoring Relationships: How Having

a Mentor and Being a Mentor Helps Y

ou Succeed in Your Career• APR 25 Growing Long-Term Retail Deposits:

Misunderstood Opportunities in Early

Withdrawal Penalties• APR 25 Regulation E Overview• APR 26 Understanding Commercial Loan Documents* APR 26 Managing Generations in Today’s Workplace• APR 30 Red Flags for Money Laundering for

the Front Line* APR 30 Internal Controls for Lean Organizations• MAY 1, 8 Employment Law Update• MAY 1 Top 10 HSA Issues•

MAY 17 Cyber Incident Response Best Practices• MAY 21 Problem Loan Workout in Today's Market• MAY 21 Loan Documentation for Secured

Commercial Lending Transactions• MAY 30 Advanced Personal & Business Tax Return Analysis•

* Total Training Solutions • Graduate School of Banking

MAY 1 Social Media and Digital Security

Emerging Threat Landscape for 2019• MAY 2 FDICIA: An Acquisition Away• MAY 2 Fiduciary Litigation MAY 7 Commercial and Industrial Lending in

Today's Competitive Market• MAY 8 Negotiation Skills for the HR Professional• MAY 9 How to Build an Employee Referral

Program That Works• MAY 9 Recipe for an Effective Sales Environment• MAY 9 Vendor Management: How Model

Risk Fits In• MAY 14 OFAC: Can We Comply?* MAY 14 Commercial Real Estate Lending in

Today's Economy• MAY 14 Trusts for Planning, Privacy and Protection• MAY 15 Employment Law Update• MAY 16 Using Process Improvement Tools to

Streamline Resolution of Audit and

Regulatory Exam Findings• MAY 17 Interviewing Skills for Better Hires•

ABA ONLINE TRAINING COURSES APR 1 APR 8

APR 15 MAY 6 MAY 13 MAY 20

Building Customer Relationships** Consumer Lending Managing Interest Rate Risk The Mortgage Lending Business Basic Administrative Duties of a Trustee The Banking Industry** Analyzing Bank Performance Bank Lines of Business**

** Banking Fundamentals Curriculum (formerly Principles of Banking)

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 Communications and Marketing Committee Fintech Committee Government Relations Committee Illinois Bankers Education Services Board Technology and Operations Committee

Annual Conference Committee Compliance Division Advisory Committee Future Leaders Alliance Board Human Resources Committee Illinois Bankers PAC Board Women in Banking Committee

Associate Membership Committee Finance and Investment Committee Future Leaders Scholarship Committee Illinois Bankers Business Services Board Membership Committee

The new committee year begins July 1. Show your interest by connecting with Mary Curl at mcurl@ilbanker.com or 217-789-9340. Or fill out the form at ilbanker.com/About-Us/IBA-Committees.

March-April 2019 •

• 37 •

THE LAST PAGE

Things are Heating Up in the IBA kitchen!

January's temperatures may have dipped below zero,

but the IBA staff found the perfect way to warm up — with our second annual Chili Bowl Cookoff! This year’s winner was Mary Curl, Executive Assistant and HR Manager.

Congrats, Mary!

A huge thank you to our member bank judges: • Chris Walcher, Rochester State Bank • Joel Oschwald, Town & Country Bank • Josh Ishmael, Illinois National Bank

CHILI BOWL COOKOFF WINNERS: 2019 – Mary Curl 2018 – Linda Koch

If you have any items or pictures to share on The Last Page, e-mail them to Debbie Jemison at djemison@ilbanker.com.

• 38 •

• March-April 2019

Illinois Bankers Group Insurance Program With the recent transfer of sponsorship of the Illinois League’s long-time Group Health Insurance Trust to the Illinois Bankers Association, now is the perfect time to take a look at all the Trust has to offer!

The Illinois Bankers Group Insurance Trust provides IBA members with a reliable source of competitively-priced, quality group insurance products. All plans comply with the Affordable Care Act THIS MEANS ■ Lower overhead expenses ■ Plan flexibility ■ Individual attention ■ Quality and timely processing of claims ■ COBRA and HIPPA administration ■ Coverage for employees, directors and retirees

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

STRATEGIC PARTNERS

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

Jim McNichols Vice President jmcnichols@ilbanker.com

Hillary Meyers Trust Manager hmeyers@ilbanker.com

Bob Penwell Relationship Manager bpenwell@ilbanker.com

It can be lonely out there.

Our team helps community banks face today’s challenges.

800-347-4MIB mibanc.com

Ron Hobson VP/Relationship Manager

Joe Kollmeyer SVP/Senior Loan Officer Tom Maassen VP/Loan Officer

Matt Sinnett President/CEO

OPERATIONAL SERVICES

LENDING SERVICES

• • • • • • • • • •

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

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

PERSONAL BANKER SERVICES

INVESTMENT SERVICES* AUDIT SERVICES**

• Money Market Accounts • Certificates of Deposit • Officer/Director/Shareholder Loans (Reg O) MEMBER FDIC

* Investment Services offered thru First Bankers’ Banc Securities, Inc. ** Audit Services provided by MIB Banc Services. LLC, a subsidiary of our holding company