Illinois Banker Magazine | March - April 2022

The Official Publication of the Illinois Bankers Association illinois.bank

March-April 2022

STRENGTHENING OUR ROOTS Connecting Bankers. Advancing Banking.®

Get ready to GROW your strengths, solve pressing challenges, and experience all the best in Springfield.

IBA Annual Conference June 6-9, 2022

Crowne Plaza • Springfield, IL

also in this issue: 5 Pressing Issues for Bankers in 2022 The Challenge of Engagement To Pay or Not to Pay: Ransomware Attacks

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

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March-April 2022 • Vol. 107 / No. 2 • illinois.bank

TABLE OF CONTENTS

10

22 DEPARTMENTS 5

Messages from the C-Suite

6

Compliance Corner

22 Event Highlights 24 On the Move

18

14

FEATURES

10 5 Pressing Issues for Bankers in 2022 14 The Challenge of Engagement: Reengaging Your Team After a Pandemic 18 To Pay or Not to Pay: Ransomware Attacks Offer an Unsavory Choice

26 18

27 Associate Members News 28 Member News 31 Preferred Vendors 32 Ad Index 34 Events Calendar 35 The Last Page

Our Mission: Advocacy. Education.

Industry Resource...for all Illinois bankers.

Our Vision: Connecting Bankers.

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

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

OFFICERS AND EXECUTIVE COMMITTEE MEMBERS Michelle Gross Chair State Bank of Bement

William Gleason Chair-Elect The Leaders Bank, Oak Brook

Betsy Johnson Vice Chair Solutions Bank, Forreston

Thomas Chamberlain Treasurer Iroquois Federal Savings & Loan, Danville

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

BOARD OF DIRECTORS REGION 1

REGION 4

Joan HeggenMcMahon U.S. Bank, Chicago

Scott Bland First Neighbor Bank, Toledo

Frank Pettaway The Northern Trust Company, Chicago

Anthony Nestler Hickory Point Bank and Trust, Decatur

REGION 2

REGION 5

James Hannon First Security Trust and Savings Bank, Elmwood Park

Gary Collins Old Second National Bank, Aurora

T.J. Burge Community Partners Savings Bank, Salem

Quint Harmon Pioneer State Bank, Earlville

Pamela Sharar-Stoppel Wintrust Financial Corporation, Wheaton

Courtney Olson First Bank of Highland Park

Richard Knebel The Bradford National Bank of Greenville

James Huiskamp Blackhawk Bank and Trust, Milan

Matthew Smith First Mid Bank & Trust, Mattoon

REGION 3

AT-LARGE

Lawrence Horvath Heartland Bank and Trust, Bloomington

Dane Cleven Community Savings Bank, Chicago

Richard Mahoney First Midwest Bank, Chicago

Bethany Shaw Peoples National Bank (Future Leaders Alliance Board Chair / non-voting member)

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Amy Randolph First Busey Corporation, Champaign Steven Rosenbaum Hoyne Savings Bank, Chicago

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

Government Relations

Randy Hultgren, President & CEO

Ben Jackson, Executive Vice President

Erich Bloxdorf, Executive Vice President & COO

Aimee Smith, Assistant Vice President

Mary Curl, Executive Assistant & HR Manager

Matt Imburgia, Director

Pam Macha, Springfield Office Coordinator

Marketing and Member Relations

Finance and Administration Mark Bennett, CPA, CFO & Executive Vice President

Julie Winterbauer, Senior Vice President Tammy Squires, Vice President, Data & Digital Marketing Robin Lane, Director, Associate Membership

Marie South, Financial Assistant

Linda Koch, Manager, Member/ Business Relations

Legal and Compliance

Sarah Cowan, Membership Assistant

Carolyn Settanni, Executive Vice President & General Counsel Carly Berard, Senior Counsel Nick Sladek, Administrative Assistant

Randy Hultgren Secretary President & CEO Illinois Bankers Association

Jeff Fauver Catlin Bank

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY

Michael Schasane, Staff Attorney

C. Brant Ahrens Immediate Past Chair CIBC, Chicago

Rick Parks First National Bank of Waterloo

Tyler Rouse First Federal Savings Bank of ChampaignUrbana

Marcia Stratton, CPA, Director

T.J. Burge Member-at-Large Community Partners Savings Bank, Salem

Megan Collins Bank of America, Chicago

Illinois Bankers Business Services, Inc. Brian Hoffman, President Adam Walsh, Vice President, Insurance Services

Maddison Harner, Manager, Marketing & Digital Communications Illinois Bankers Education Services, Inc. Callan Stapleton, CAE, President Lyndee Fein, Director, Education & Conferences Denise Perez, Manager, Director, Education & Training Rachel Selvaggio, Director, Forums & Future Leaders Alliance Debbie Jemison, CAE, Director, Financial Literacy Amy Sale, Education Assistant Illinois Bankers Group Insurance Trust Erich Bloxdorf, Plan Administrator Mike Mahorney, Senior Trust Advisor Hillary Meyers, Trust Manager

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

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 3201 W. White Oaks Drive, Ste. 400, Springfield, IL 62704. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. © Copyright 2021 by Illinois Bankers Association (unless individual articles list copyright). Reproduction of any material in the Illinois Banker is strictly prohibited without written permission of the publisher.

MESSAGES FROM THE C-SUITE Chair, Illinois Bankers Association Wow! 25 years in banking!

I hit that milestone this past January. When my bank recognized this personal achievement, I took some time to think back over my career. It was amazing to think of all the changes I’ve seen from microfiche and multi-pocket proof machines to computers that can tell me what my customer will do next!

Michelle Gross

Executive Vice President/ COO and ISO State Bank of Bement

To keep up with all the changes, bankers must learn and grow over the years.

One of the best parts about being a banker has been the ability to take advantage of webinars and seminars which are great for gaining knowledge and upskilling. I recently attended a 5-session DEI Speaker Series

hosted by the IBA and FHLBC. The sessions began with either an extremely knowledgeable speaker or panel, followed by an active Q&A session. I learned so much from each of the speakers and my fellow peers and gained several takeaways that I’ll be using in my own financial institution.

I also attend conferences to learn from industry experts and network with my peers. Speaking of conferences, the IBA’s Annual Conference will be in-person June 7-9, 2022, in Springfield, IL. I am so looking forward to seeing everyone, continuing to learn and grow, and celebrating this past year as your IBA Chair. I hope to see you there as I look forward to my next decade, or two, in this exciting industry!

President & CEO, Illinois Bankers Association “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

– Abraham Lincoln

Randy Hultgren

This moment in time has brought more opportunities and challenges than ever.

Whether it is regulation, technology, or legislation, banking continues to change before our eyes. You must be sharp to best serve your customers. Your Illinois Bankers Association is working every day to provide the best practical, usable education for those who have been in banking for decades, as well as those in their first week. A practical, strong education is always an investment for the future.

The IBA Annual Conference is a perfect opportunity for you and your team to secure the right tools you will need to

win and serve life-long customers. Ink June 7-9, 2022, on your calendar, to join bankers from around Illinois in Springfield to gain valuable information and contacts to lead your bank into the future.

The speaker lineup is fantastic and there will be summertime fun to be enjoyed at many area events before and after the conference.

Spring is the perfect time to partake in the full menu of IBA education offerings.

Hundreds of value-tested programs provide you and your team the knowledge needed to lift your bank to the next level.

Take advantage of the impactful forums, peer groups, and in-person or virtual programs to meet every need. Keep your staff sharp by using all your Association’s education tools!

March-April 2022 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION

Do the recent amendments to the Illinois Notary Public Act requiring notaries to keep a journal apply to all notaries or only those performing electronic notarial acts? Should notaries begin keeping journals now, even if they are not yet required? Also, did the Illinois Secretary of State send out a notice to registered notaries about the new requirements?

ANSWER The new requirement to keep a journal applies both to notarial acts and electronic notarial acts. As such, both notaries and electronic notaries will need to keep a journal of their notarial acts when this requirement goes into effect.

Notaries may begin keeping journals now if they chose to do so, but this is not required, and we do not yet know the specific requirements for the journals. When the rules are implemented, they must set forth, at a minimum:

This requirement (established in Public Act 102-160) takes effect on the later of January 1, 2022, or the date on which the Illinois Secretary of State adopts rules necessary to implement the requirement. As of this writing (February 8, 2022), these rules have not been adopted.

(1) the information to be recorded for each notarization or electronic notarization; (2) the period during which the notary public or electronic notary public must maintain the journal; and

(3) the minimum security requirements for protecting the information in the journal and access to the contents of the journal.

Regarding notification of the new requirements, the Secretary of State has posted a notice on its website indicating that updates will be posted on its webpage. Consequently, we recommend checking the Secretary of State’s notary services page (www.ilsos.gov/ departments/index/notary/ home.html) periodically for future updates.

QUESTION

Under Regulation E, would it be considered an unauthorized transaction if a consumer is fraudulently induced to send an electronic payment — as opposed to when a consumer is induced to provide a fraudster with their account information or access device?

ANSWER

No, we do not believe that an electronic payment initiated by a consumer — even if fraudulently induced — would be considered an unauthorized transaction under Regulation E. An “unauthorized electronic fund transfer” is defined as “an electronic fund transfer from a consumer’s account initiated by a

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• March-April 2022

person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit.”

The Official Interpretations for Regulation E provide that in cases where an electronic fund transfer is initiated by a person who obtained a consumer’s “access device” (such as their card or code) through

fraud, the transaction is considered unauthorized. The Official Interpretations also provide that an electronic fund transfer at an ATM is unauthorized if a consumer is induced by force to initiate the transfer, but there are no exceptions noted for consumers who are induced by fraud to initiate a transfer.

QUESTION

To deter money orders and certified checks from being abandoned, may we print “VOID AFTER 120 DAYS” on them? We want to encourage payees to cash them as soon as possible.

ANSWER We do not recommend placing expiration dates on money orders and certified checks.

As to certified checks, the Illinois Uniform Commercial Code (UCC) requires banks to honor certified checks they have issued and subjects them to potential liability for wrongful dishonor. While a bank generally is not obligated to pay a check presented six months or more after its date, that rule expressly does not apply to certified checks, which “are the primary obligation of the certifying bank (Sections 3-411 and 3-413), which obligation runs direct to the holder of the check. The customer’s

account was charged when the check was certified.” Because your bank is obligated under the Illinois UCC to pay certified checks that are presented even six months after they have been issued, we do not recommend placing expiration dates on certified checks.

The UCC requirements for certified checks do not necessarily apply to money orders, which Illinois courts have held are more in the nature of ordinary checks. However, we do not recommend placing expiration dates on money orders either.

While the UCC does not prohibit a check issuer from placing an expiration date on a check — and

many issuers do print “void after 90 (or 180) days” on various types of checks — your restrictive language would not cause a money order to expire and be void. Rather, a money order presented after the putative expiration date would be treated as a “stale” check (as opposed to a “void” check), according to at least one Illinois court.

This approach benefits your bank, which most likely reserves the right to cash stale checks (and should, if it doesn’t), because otherwise it would be exposed to ongoing liability when processing and honoring stale checks in the ordinary course of business.

About the IBA Law Department Our IBA Law Department provides many resources to help our bank members meet their compliance challenges, including 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 2022 •

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Travel with Tripp McRaffle $25 Tripp McRaffle is BACK! After a two-year hiatus, Tripp McRaffle is determined to travel the world! As one of over 100,000+ financial industry employees excited about the chance to win a vacation voucher.

Tripp believes that if every employee contributed $25, the Illinois Bankers PAC could have a multimillion dollar fund. Purchase your chance today!

COULD YOU HELP US GROW THE PAC FUND?

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

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

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

Illinois Bankers PAC

Name

Tripp McRaffle

Organization

$2,500

Direct Travel Trip Voucher

Phone

Drawing: Thursday, December 1, 2022

$25 per ticket •8•

• March-April 2022

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

March-April 2022 •

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5

Pressing Issues for Bankers in 2022

by Shane Ferrell, Vice President of Product Strategy at CSI

To find out how bankers will confront challenges associated with pandemic-induced digital acceleration, cybersecurity, regulatory changes and more, CSI surveyed banking executives from across the nation about their strategies and priorities for 2022. The results of the annual survey are outlined in an executive report and highlight the opportunities—and risks—inherent in today’s banking environment.

Here are the top five issues that bankers selected as most likely to affect the industry in 2022, along with strategic recommendations for your institution to consider.

Cybersecurity Threats Loom Large

With over 85% of banking executives across asset sizes reporting an increase in digital usage at their institution, cybersecurity concerns form an ever-present backdrop. As a result, it should come as little surprise that 26% of respondents selected cybersecurity as the issue they believe will most affect the financial industry in 2022.

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• March-April 2022

Three converging circumstances make cybersecurity increasingly difficult for financial institutions:

• As digital usage increases, more systems and

users are vulnerable to cybersecurity threats.

• As more cyberattacks occur, customers are becoming increasingly numb to the risks.

• As institutions enhance their cybersecurity

efforts, cybercriminals up the ante with harder to detect methodologies.

Some steps, such as routine vulnerability scanning and penetration testing, are no-brainers to enhance your bank’s cybersecurity posture. Cybersecurity training is another strategy to prioritize, as banks benefit significantly from an informed customer base. Energize your customers with campaigns, videos and gamification to reinforce the importance of good cyber hygiene.

Recruiting and Retaining Bank Employees

In a massive shift from previous years’ results, recruiting and retaining employees rose to second in bankers’ list of pressing issues, taking 21% of the vote. Organizations across industries are feeling the effects of the Great Resignation, and banking appears to be no exception.

With the rise of remote work, prospective employees are now seeking opportunities outside of their geographic region. Larger companies in bigger cities can hire from anywhere and offer salaries that far exceed living costs in smaller communities. This trend causes a unique problem for financial institutions, as turnover leads to a loss in expertise and potentially creates risk from newer, untrained staff.

To combat these trends, your bank should actively seek out new talent while supporting remote work when appropriate. As the talent pool becomes increasingly competitive, consider utilizing trusted ‘as-a-service’ product offerings and outsourced expertise. For instance, a managed services partner can help optimize your IT infrastructure if IT professionals are unavailable or limited.

Navigating the Regulatory Landscape

Ranking third with 14% of the vote, regulatory change remains of constant significance to financial institutions, especially given a relatively new administration and a chance of new sanctions. While there is a host of regulatory issues to consider, several of which are outlined in the executive report, bankers should continue to stay on top of data privacy. Beyond GDPR, more states are adding privacy regulations, and institutions must take a holistic approach to data privacy, including biometric data.

Additionally, banks must realize that come 2023, there are no more what-ifs regarding CECL. If you aren’t already doing so, running your CECL platform parallel to your ALLL platform helps you make strategic decisions about which CECL solution is best for your institution and how it will affect your capital.

Meeting Customer Expectations

Even if you’re not interacting with customers at your branch at all, you should be able to promote the right products and deepen customer relationships.

Digitalizing the customer experience and backend processes makes serving customers far simpler.

If you’re optimizing existing digital solutions or determining gaps in the populations you serve, data makes all the difference. Whether by CRM or other data and analytics dashboards, analyzing customer behavioral data helps you make informed decisions relating to which markets your bank is serving well and what changes you need to make.

The Rise of APIs and Open Banking

Open banking APIs are on the minds of financial institutions everywhere as a base technology that enables such game-changes as banking as a service (BaaS), platform banking and embedded banking. It’s a simple idea – using open APIs enables third-party developers to build applications and services around your institution.

Open banking APIs offer a host of benefits, including optimization of existing systems, integration with new technologies and the opening of new revenue streams through platform banking. Further, open banking rounds all banking data and capabilities to give a complete view of customers, driving efficiency and enabling better tools. This includes digital banking, connectivity, workflow integration and even payments.

Get a Comprehensive Look at Bankers’ Top Priorities for 2022 Download the 2022 Banking Priorities Executive Report to unpack the complete survey results— including bankers’ insight on their past performance and technological investments—and receive strategic recommendations for the year ahead. https://why.csiweb com/2022-banking-priorities

About the Author: Shane Ferrell is Vice President of Product Strategy at CSI.

Meeting customer expectations fell to fourth in bankers’ priorities this year, but that doesn’t mean this issue is any less important. Digital is now the primary way many customers interact with your bank, and that trend will continue.

March-April 2022 •

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RISE Awards NOMINATIONS

TO THE TOP

NOW OPEN BANKER OF THE YEAR

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.

AWARDED

JUNE 6-9

Annual Conference Crowne Plaza Springfield

COMMUNITY SERVICE

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

Deadline is April 15, 2022.

Submit your nomination at https://illinois.bank/Be-Recognized

2021 Award Winners

BANKER OF THE YEAR Marty L. Davis Murphy-Wall State Bank and Trust Company Pinckneyville COMMUNITY SERVICE Bank of Farmington Beardstown Savings, sb The Bradford National Bank

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• March-April 2022

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March-April 2022 •

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The Challenge of Engagement:

Reengaging your team after a pandemic

W

ith 2021 in the rearview mirror, the economy is reopening. Many teams are excited to return to the office, but others hope to follow a hybrid model. The last 18 months have challenged banks to innovate and embrace different staffing models and arrangements to continue serving their communities.

As leaders, managers, and team members, we have an opportunity to not just go back to the way things were but to build something even stronger.

Creating an environment of engagement is an ongoing strategy that drives employee retention, satisfaction, productivity, and ultimately higher revenues and profitability.

State of Employee Engagement At a high-level, engagement means having such a positive impression about a job or role that great effort is gladly given, essentially, the individual has a “Calling.” Most recent Gallup Poll results show that 35% of employees are engaged, 52% disengaged or psychologically unattached to work, and 13% not engaged. On a positive note, employees who are engaged have increased by 7% since 2019. While we do not how these numbers might shift with some employees wanting the autonomy of working remotely, Pew Research reports that more than half of employees whose jobs have allowed them to work remotely during COVID-19 want to keep doing so all or most of the time; another third said they’d like to work from home some of the time. Whether or not your bank will offer these options, it is important to create an environment of employee engagement. This must be driven by the leadership team, helping your team find the “Calling,” the “Why,” and meaningful connections.

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Leadership is the Key to a Calling Building trust with your team enables you to take people from where they are to where you know they can be. We need to help our team members find a higher calling than just business-as-usual. Simon Sinek, in his valuable TED talk and book “Start with Why …,” describes how most companies and individuals understand the What and How of their products and work, but few understand or identify the WHY. When we focus on the What and How, it doesn’t contribute much meaning to our work. However, if we help our team members understand the WHY of our organization—the higher calling we have as community bankers—it provides a greater sense of meaning and value.

Rather than focusing on products and processes, let’s reorient around our purpose.

Community banks exist to make our communities’ and people’s lives better. We spent this last year helping small businesses survive a terrible threat. We helped families manage their money during times of great uncertainty. In the future, we’ll help folks buy their first home, save for college or retirement, and much more. We help people realize their goals and dreams. We just happen to do so by providing caring service, trusted advice, and fair and valued banking products and services. When we “start with WHY,” we help our team members find a higher calling and greater meaning in work.

Meaningful Connections

When so many of us were taken out of our normal work environment, separated from our colleagues, and asked to be productive in new contexts, it became difficult to remember how our work connected to the broader organization. We each knew our own role and continued to perform at the best of our ability. However, many individuals may have lost sight of how their work contributed to the greater organization. We need to unite our teams around a common cause. What is the vision that drives our organizations forward? What goals are we trying to achieve together? What can be the common cause that unites us in our work? We need to provide a common cause involving the entire organization—each team contributing in its own way within its own role—to rebuild a sense of unity of purpose.

As an example, a strategy oriented toward growing the number of core customers can involve every part of the organization. The operations group helps evaluate and shape products, policies, and processes to enable growth in customers. Marketing brings innovative tactics and approaches to drawing in new customers and creating opportunities for the branches. Lending teams leverage their customer relationships to ensure that those customers get a chance to hear about other bank products and services. Branch teams learn service and sales techniques to capitalize on the prospects responding to the marketing.

Senior management lends vocal support to the frontline teams, recognizing their key role in achieving the goal of growth. And every employee encourages those in their circle of influence to become a customer, because they understand the importance of growth for the organization’s future health and success.

Leaders have an opportunity to build even more meaningful connections with those on our teams as we come back together. We’re all busy so the hard work of building relationships and connections is best accomplished as part of a strategy through regular practices like:

• Team meetings—gathering the team together weekly

will be especially important after the separations of the last year. Rather than focusing on policy or process discussions, use it to reestablish connections. Let team members share their successes and their challenges. Encourage them to celebrate the good they’ve seen in their coworkers— "Cheers for Peers.” The foundation of personal trust you build here will be the basis of your team’s future growth.

• Check-ins—15-minute weekly, individual conversations with each team member. Allow these to be both personal and professional updates. We all found that during the pandemic those lines between our work and our personal lives blurred. Showing you care about them as people, not just as employees, will enable you to serve them far better.

• Coaching sessions—spend time observing your team

members at work with customers, then debrief with them.

Perhaps skills have grown rusty. We’ve reinvented the way we serve customers because of the circumstances in which we found ourselves. Coming alongside as their coach will again build trust that you are going to help them thrive whatever the future holds.

The pandemic caused many to question the way things have been. The old ways aren’t good enough anymore.

We have an opportunity to do more than just return to business as usual by reengaging our teams and building something better and more rewarding. By reminding our folks of the WHY—the Higher Calling, uniting them around a Common Cause, and creating more Meaningful Connections, we’ll not just survive but thrive.

About the author: Robb Rempel, is an Executive Vice President at Haberfeld, a data-driven consulting firm specializing in core relationships and profitability growth for community-based financial institutions. Robb can be reached at 402.323-3604 or rrempel@haberfeld.com.

March-April 2022 •

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2022 Main Events MARCH 3-4

MARCH 29

APRIL 5

THE ONE CONFERENCE Embassy Suites East Peoria, IL

ECONOMIC INVESTMENT DAY Springfield, IL

WOMEN & ALLIES LEADERSHIP SYMPOSIUM

MAY 13

MAY 19

JUNE 6-9

COMPLIANCE CONFERENCE Hyatt Regency Lisle Lisle, IL

SPRING GOLF OUTING St. Clair Country Club Belleville, IL

ANNUAL CONFERENCE Crowne Plaza Springfield, IL

AUGUST 24-25

SEPTEMBER 13-14

SEPTEMBER 29

AG BANKING CONFERENCE Crowne Plaza Springfield, IL

WOMEN IN BANKING CONFERENCE Crowne Plaza Springfield, IL

FALL GOLF OUTING Pekin Country Club Pekin, IL

OCTOBER 6

FALL

BANKTECH CONFERENCE Chicago Marriott Southwest Burr Ridge, IL

WASHINGTON LEADERSHIP VISIT Washington, DC

FALL COMPLIANCE CONFERENCE The Regency Conference Center, O’Fallon, IL

NOVEMBER 3

DECEMBER 1

DECEMBER 2

MIDWEST BANK LEADERS CONFERENCE Gleacher Center Chicago, IL

CHICAGO AREA CHAPTER HOLIDAY BREAKFAST Sheraton Lisle Naperville Hotel Lisle, IL

BANK COUNSEL CONFERENCE Location TBA Chicago, IL

OTHER PROGRAMS Seminars Webinars Forums Schools Leadership Training Virtual Programs

REGISTRATION OPTIONS Credit Card, Check or Invoice

illinois.bank 217-789-9340 E

registrar@illinois.bank

FOLLOW US!

Dates and locations are subject to change.

Rev. 1/20/2022

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• March-April 2022

OCTOBER 18

BANKING TODAY IS AGILE.

THANKFULLY, SO ARE OUR ONLINE SEMINARS.

2022 GSB Online Seminar Series Ongoing Throughout the Year Offering a convenient and cost-effective way to participate in educational opportunities, these programs are designed specifically for financial professionals and delivered by some of today’s top

REGISTER AT

GSB.ORG

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 throughout the year.

Educating Professionals, Creating Leaders

March-April 2022 •

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To Pay or Not to Pay:

RANSOMWARE ATTACKS Offer an Unsavory Choice

WASHINGTON UPDATE

It’s the message a CEO never wants to receive: “We’ve got your data and you need to pay up if you want it back.”

Unfortunately, that message is landing in CEO inboxes increasingly often, as ransomware attacks ramp up in the U.S. In just the first six months of 2021, the Financial Crimes Enforcement Network identified $590 million in ransomware-related Suspicious Activity Reports—a 42% increase from the 2020 total of $416 million. And FinCEN reports that we could be on track to see a higher transaction value for ransomware-related SARs than we’ve seen in the past 10 years combined.

Ransomware attacks—which use malware to encrypt files on a computer or mobile device and render it unusable until a ransom is paid—present companies with an unsavory dilemma: pay a ransom to a criminal actor, or lose a potentially devastating amount of data, which could seriously compromise business operations.

These kinds of attacks are evolving quickly in sophistication and scope, and virtually any business could be targeted at any time. What’s perhaps most

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• March-April 2022

concerning is that criminal actors are increasingly targeting critical infrastructure entities, as we saw in the Colonial Pipeline incident in May 2021 that caused a shutdown of a major East Coast oil provider. They’ve also begun branching out into “extortionware,” in which the hacker not only encrypts sensitive data, but then goes the extra step and threaten to publicly release it unless the institution complies with their demands.

Given the potential operational and reputational consequences of these types of cyberattacks, banks need to have a plan in advance for how they’ll respond. There are a number of factors to consider.

First, while most companies do choose to pay— cyber insurer Marsh McLennan reports that more than 60% of ransomware victims pay the requested ransom—it’s not always a guarantee that the encrypted data will be fully restored. In fact, one survey of more than 5,000 IT decision-makers worldwide found that about half of those who did pay a ransom only recovered 65% of their compromised data. Twenty-nine percent said they only recouped about 50%.

And even if a company’s ransom hacker unlocks all the encrypted data after the ransom is paid, the company will still need to take steps to clean that data and make sure that it can’t be easily re-encrypted.

On the other hand, there are also a number of good reasons not to pay a ransom. There are the societal costs to consider—paying the ransom could perpetuate attacks on other institutions or entice the hacker to hit you again for more money. Paying a ransom could also erode trust from customers and business partners, as payment could signal a lack of continuity planning and preparation.

Either way, the first time you think about ransomware attacks and how to handle them should not be after your bank has fallen victim to one. To that end, ABA in October released a new Ransomware Toolkit, which provides helpful guides for protecting your bank against ransomware attacks, responding in the event of an attack and determining whether to pay a ransom. Download the toolkit at aba.com/ ransomware.

Alt

Ransomware represents a serious threat to all businesses. But the good news is that the financial sector is ahead of the game when it comes to cybersecurity, given the rigorous regulatory framework banks adhere to. After all, as we found in a recent ABA/Morning Consult poll, consumers overwhelmingly trust banks the most to keep their personal information safe and secure.

By addressing the problem of ransomware head-on and taking prudent steps to prepare, we can help our industry maintain its reputation as the “gold standard” for data protection.

Email Rob at nichols@aba.com.

Teller Pods Transform Customers’ Experience Time To Refresh Your Lobby?

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To learn how teller pods transform your customers’ and staff’s experience, contact Steve Howlett at (815) 654-9700 or email Steve@pgarch.com.

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50+ Years of Bank Facility Experience

March-April 2022 •

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STRENGTHENING OUR ROOTS Connecting Bankers. Advancing Banking.®

IBA Annual Conference

Get ready to GROW your strengths, solve pressing challenges, and experience all the best in Springfield.

June 6-9, 2022

Crowne Plaza • Springfield, IL Bank Member/NonMember $645 / $1,095 /person Associate Member (non-exhibiting) $1,095 /person Guest / Spouse $295 /person

Illinois Bankers PAC Events Tuesday, June 7 • $175 /person

Conference Keynote Speakers

Aaron Davis

Perform Like A Champion (Attitude/ Achievement/ Motivation)

Kirk Lippold

Commander USN (Ret.) Leadership & Accountability When It Matters

Nathan Stovall

Principal Analyst, FIG Research, S&P Global Market Intelligence

Get your kicks on Route 66 Tour Start 9:30 am

IB PAC Golf Outing Shotgun Start 9:30 am

Attendees will tour Ace Sign Company, taking a historical “road trip” along Route 66. The tour features more than 85 iconic roadway signs found on Route 66 and throughout the country. You’ll also indulge in some of Springfield’s world-famous local fare and libations.

Grab your clubs and support Illinois Bankers PAC at one of Springfield’s premier golf courses! Piper Glen Golf Course is sure to challenge and delight golfers of every skill level. Enjoy beautiful central Illinois scenery and the camaraderie of your colleagues!

A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s official website (www.elections.il.gov) or for purchase from the State Board of Elections, Springfield, Illinois. All contributions to Illinois Bankers PAC are voluntary. You may refuse to contribute without reprisal.

Contributions to Illinois Bankers PAC are not tax deductible.

https://tinyurl.com/IBA-Annual-Conference

After two years of virtual meetings, the IBA Annual Conference is back to its core roots of connecting bankers and advancing banking. This year’s Conference will be held June 6-9 at the Crowne Plaza in Springfield, IL. For 131 years, Illinois leaders have come together for this annual event to empower and strengthen the industry today and into the future. The Conference has a long-standing tradition of attracting CEOs, senior executives, officers, and directors eager to reconnect with industry leaders and learn the latest trends. Get ready to cultivate your strengths, solve pressing challenges, and experience all the best in Springfield.

Entertainment: Mike Bliss

Program Highlights

Special Guest: Joe Everson

The Marketplace: Discover a world of possibilities and return to the bank with new and emerging products and services that fit your organization.

Regulatory Panel Discussion: A distinguished panel of senior regulators covers a range of the latest supervisory developments affecting the industry today.

Sign Me Up

www.illinois.bank registrar@illinois.bank • 20 •

• March-April 2022

Comedy Magician

Artist, vocalist, musician, and photographer

TOP TIER SPONSORS

Connect with the IBA to become a TOP TIER SPONSOR at marketing@illinois.bank.

April is National Volunteer Month Thank you to our dedicated volunteers for their committment to the industyry.

In moving the Illinois financial services industry forward, we seek experienced and knowledgeable individuals to sit on any of our committees and boards. We encourage everyone to consider joining their peers to learn new perspectives and help shape the future of Illinois banking. New terms begin July 1st.

Agricultural Advisory Committee Annual Conference Committee Associate Member Committee Audit and Investment Committee Communications and Marketing Committee Compliance Division Advisory Committee Fintech Committee FLA Board of Directors Government Relations Committee

Human Resources Committee Illinois Bankers Business Services Board Illinois Bankers Education Services Board Illinois Bankers PAC Board Illinois Bankers Scholarship Committee Membership Committee Technology and Operations Committee Women in Banking Committee

FULL DETAILS AND APPLICATION, VISIT https://my.illinois.bank/About-Us/Our-Committees

March-April 2022 •

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CONFERENCE | MARCH 3-4 The ONE Conference was far out! The Conference reunited 300+ Illinois Bankers and industry friends in East Peoria on March 3-4. The Conference featured rad industry experts that created awesome ideas and expanded attendees' knowledge to the max. You know the saying "Be there or be square." and if you weren't there, you missed it. Save the date for next year's event on March 2-3, 2023 at the Embassy Suites, East Peoria.

Congratulations to the 2022 Future Leaders Alliance graduates!

Opening keynote speaker Alyson Van Hooser was fantastic at jumpstarting the Conference!

Josh Rakers, Murphy-Wall State Bank and Trust Company, Pinckneyville, was a big winner during the exhibit hall prize drawings!

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IBA Chair Michelle Gross addressed the energized audience to help kick off the day.

• March-April 2022

Jackie Broyles, Bank of Belleville, was all smiles as she won her THIRD give-a-way in the exhibit hall!

Closing keynote speaker Brian Carter ended the Conference in a powerful way.

March-April 2022 •

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ON THE MOVE

Share your employee stories with the industry!

Applaud and share the good news about your co-worker's promotions, retirements, and award recognitions in the Illinois Banker magazine. We also share the passing of beloved co-workers who made an impact in their community and the financial services industry.

Submit your news to marketing@illinois.bank.

clients in Macon County with all of their home buying and refinancing needs.

Bloomington

TOWN AND COUNTRY BANK

Town and Country Bank is happy to welcome Tim Barnes to its growing mortgage lending team as a Mortgage Loan Originator. In his role, Barnes will work closely with homebuyers throughout McLean County to identify optimal solutions tailored to their current financial situations.

Barnes was educated here in Central Illinois, graduating from Lincoln College and Illinois State University. Throughout his career as a VP of Sales and VP of Operations, he has been able to further his knowledge in a variety of areas by implementing new sales and revenue-generating strategies, overseeing and training sales staff, and managing the operational needs of customers, among other key skills.

Barnes also has deep ties to the Bloomington-Normal community and has been active in community events and charities for decades.

He is one of the founding members of the Miracle League, helping Bill Wright bring baseball to children in the community with special needs.

Barnes

COUNTRY BANK

Decatur TOWN AND

Town and Country Bank is excited to share that Stacey Mooney has been promoted to a new role as a Mortgage Loan Originator, joining the company’s growing mortgage origination team. As a Mortgage Loan Originator, Mooney will assist

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Mooney graduated from Richland Community College in Decatur, earning an Associate of Science degree. Throughout her career, she has been able to advance her knowledge in finance and banking by hiring, training, and mentoring employees, implementing innovative strategies to achieve branch sales goals and increase revenue and overseeing payroll initiatives, among other valuable skills.

professional designation offered by the American Bankers Association (ABA). He is an active member of the Northwest Suburban Estate Planning Council.

Sam Vardalos has been appointed Vice President and Commercial

Mooney

Mooney and her husband are lifelong residents of Decatur, Illinois. In her free time, she enjoys spending time with family and friends, traveling, cooking, reading, and working out.

Itasca

ITASCA BANK & TRUST CO.

Thomas R. Hogan, CTFA, has been appointed Vice President and Trust Officer at Itasca Bank & Trust Co. He will be the main point of customer contact in the bank’s Trust Department. With over 10 years of experience in trust and estate administration, he was most recently a Trust Officer at a regional bank with multiple offices in the Chicagoland area.

Hogan holds a Bachelor of Science degree from Northern Illinois University and completed Cannon Financial Institute’s Trust School at the University of Notre Dame.

Hogan is also a Certified Trust and Fiduciary Advisor (CTFA), a

Hogan Vardalos Loan Officer. With over 30 years of experience in the financial industry, he was most recently Vice President and Business Banking Relationship Manager at a large regional bank with multiple offices in the Chicagoland area.

“Vardalos’ diverse banking career is an asset for Itasca Bank & Trust Co.,” said John J. Hunt, Senior Vice President and Chief Loan Officer at Itasca Bank & Trust Co. “His experience in business development and commercial and mortgage lending is key to our overall loan growth.” Vardalos resides in Carol Stream, IL. Bill Dierking was appointed Vice President and Commercial Loan Officer. With over 30 years of experience in commercial lending in national, regional, and community banks, he was most recently a Commercial Loan Officer at a local bank in the Chicagoland area. Dierking Dierking holds a bachelor’s

degree in Finance from Iowa State University College of Business in Ames, Iowa, and a master’s degree in Business Administration from the University of Illinois in Champaign, Illinois. Dierking resides in Crystal Lake, IL.

Mattoon

FIRST MID BANCSHARES, INC.

First Mid Bancshares, Inc. has appointed Gisele A. Marcus to the company’s board of directors.

Marcus will also serve on the board of directors of First Mid Bank & Trust, which is a subsidiary of the company. Marcus currently serves as a Professor of Practice at Washington University in St. Louis, Missouri, where she focuses on Diversity, Equity, and Inclusion to prepare students with the tools and techniques for DEI in the workplace. Marcus also currently serves as the Vice President of Operations and Client Engagement at One Stone Development Company LLC, where she ensures operational efficiency and leads client development activities.

A five-time General Manager, Marcus has led Profit and Loss for businesses within Fortune 250 companies, such as Johnson Controls, Thermo Fisher Scientific, and AT&T. Marcus has also held the role of Chief Operating Officer of the St. Louis Regional Chamber, one of the top ten revenuegenerating Chambers in the country.

Marcus earned her Bachelor of Science in Management Information Systems & Transportation Distribution Management from Syracuse University’s Whitman School of Management and her Master of Business Administration in General Management from Harvard University Graduate School of Business.

She is the past Board Chair of Black Repertory Theatre and past

President of the Harvard Business School Club of St. Louis, Missouri.

A voice for business culture, Marcus Marcus is a TEDx speaker on networking and relationship building. Some national organizations she's spoken for include the Association of Chamber Executives, National Sales Network, Toastmasters International District 25, and Syracuse University. She has been featured in Huffington Post, Black Enterprise, Milwaukee Business Journal, and St. Louis Business Journal, as well as a repeat guest on Good Morning St. Louis. A lover of international travel, her favorite continent is Africa, where she has explored eleven countries.

Rochelle

CENTRAL BANK ILLINOIS

Central Bank Illinois announces an officer promotion for Brandon Svela to Vice President Commercial Lending serving our Rochelle Market.

While attending Illinois State University, Svela was a summer intern in the Internal Audit department for the First National Bank of Rochelle.

Svela Svela earned his bachelor’s degree in Finance, with a minor in accounting from ISU in 2014, and returned to FNB as a Management Trainee. In 2017 he continued his career path with Central Bank and was named an Assistant Vice President Loan Officer. Svela is actively involved in the Rochelle community and currently serves on the Rochelle

Chamber of Commerce Board of Directors. He is also a graduate of the Illinois Bankers Future Leaders Alliance Program.

Washington

WASHINGTON SAVINGS BANK

Paul Koerner, Chairman of the Board of Washington Savings Bank announced changes to the board of directors of Washington Savings Bank. Claude E. Hudson and Rockney L (“Rocky”) Weber, have announced their retirements from the Board of Directors. Rocky joined the board of directors in 1979 and served as Chairman of the Board from March 2006 until April 2021. Hudson joined the board of directors in July of 1997. In addition to his time on the board, he served as President and CEO of the bank from 2001 through December of 2013.

Lisa Wortman was elected to the board of directors in January of 2022. A graduate of St. Anthony High School and the University of Illinois School of Accountancy, Wortman Wortman together with her husband John, are involved in real estate development as well as the convenience and liquor store industry. They own 20 stores in Central Illinois and Missouri under the Jack Flash trademark. Outside of the business, Wortman is on the St. Anthony Parish Finance Council and has previously volunteered her time for Samba and Fish.

Wortman is the daughter of Jerry and Marcie Schutzbach. She and John are the parents of adult children, Jackie, Nick, Sam, and Claire Wortman.

March-April 2022 •

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WELCOME NEW ASSOCIATE MEMBERS (as of 2-15-2022) Anthony Cole Training Group 8160 Corporate Park Dr Ste 100 Cincinnati, OH 45242-3314 www.anthonycoletraining.com

CBMS 312 Sycamore St Muscatine, IA 52761-3855 www.cbmsonline.com 888-471-4631

support, Illinois pay data reporting, DE&I action plans, pay equity, training, and creating EEO-1 and VETS-4212 reports that comply with the requirements of the U.S. Department of Labor.

Jeni Wehrmeyer jeni@anthonycoletraining.com 513-791-3458

John Miller jmiller@cbmsonline.com

For 28 years, Anthony Cole Training Group has been helping community banks close their sales opportunity gap by helping them sell better, coach better and hire better. Our financial knowledge, customized programming, sales-experienced personnel and owner’s perspective have made us the Community Banking source for revenue growth. Our Mission: Grow People, Grow Organizations.

CBMS offers a wide array of products and services to help achieve compliance and cost savings. Our exclusive LSP 2.0 web platform allows users to order nationwide products such as title searches, AVM’s, flood detection, property condition reports, enhanced residential, commercial property and ag evaluations, appraisals, full settlement and closing service, and more! With CBMS, you will not have any binding contracts or minimums!

PrintMail Solutions 4153 120th St Urbandale, IA 50323-2314 215-860-4250

BancAlliance, Inc. 4445 Willard Ave Chevy Chase, MD 20815-3690 www.bancalliance.com/banknetwork

Genesys Technology Group 5239 Cottney Croft Way Norcross, GA 30092-1231 www.genesystg.com 678-208-6030

Jacqueline Kennedy jkennedy@alliancepartners.com 301-232-5400

Drew Kessler drew@genesystg.com 678-208-6030

BancAlliance identifies, evaluates, and refers loans to its exclusive group of community bank members (300+ nationwide). Its mission is to enable its members to diversify into C&I (non-real estate), consumer, and small business loans in a manner consistent with regulatory standards. There is no fee to become a BancAlliance Member.

BancAlliance members pay fees in connection with their decision to participate in a specific asset opportunity.

Genesys Technology Group was founded in 2007 as an advocate for the community bank and took the guesswork out of core contract negotiations. Genesys offers fully managed renewal negotiations and core vendor services. Genesys also specializes in the evaluation of missioncritical fintech and third-party systems.

Furthermore, Genesys provides ongoing support such as invoice audit services, conversion management, new product installation, and project management.

Banc Card of America Inc. 605 N Shore Dr Ste 201 Jeffersonville, IN 47130-3137 www.BancCard.com 502-494-6441

John Melendrez jmelendrez@outsolve.com

Tyler Cook tcook@banccard.com Banc Card is an all-in-one business solution for community banks working with more than 700 community banks in 26 states. We offer local face-toface service to their bank partners and customers when it comes to an all-in-one fintech and payment processing solution.

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OutSolve, LLC 3330 W Esplanade Ave S Ste 301 Metairie, LA 70002-3586 www.outsolve.com 888-414-2410

• March-April 2022

Since 1998, OutSolve has supported federal contractors, including hundreds of banks and financial institutions across the country, and is the #1 provider of affirmative action planning and compliance services. OutSolve provides comprehensive OFCCP compliant affirmative action plans, OFCCP audit

Angelina Brown angelina.brown@printmailsolutions.com PrintMail Solutions is the industry leader in statement processing for over 300 community banks. Since 1993, PrintMail Solutions has developed a proven record of cost-saving and reliable solutions, including printed and electronic statements for DDAs, loans, notices, and taxes. We seamlessly interface to your core platform, imaging software, and online banking provider.

Safe Systems 1145 Sanctuary Pkwy Ste 400 Alpharetta, GA 30009-4764 www.safesystems.com 678-325-7161 Stacey Appelson stacey@safesystems.com Safe Systems is an award-winning IT and security services provider serving community banks and credit unions.

We believe every financial institution, regardless of size, should be able to leverage the best technology, compliance, and security solutions to serve the financial needs of their community. By combining our knowledge of regulatory compliance, a proactive approach to security, and a passion for leveraging technology, we strive to bring you excellent value and peace of mind.

MEMBER NEWS ASSOCIATE MEMBER NEWS SRM Announces Territory Management Change SRM (Strategic Resource Management), a leading vendor contract optimization and advisory services firm for community and regional banks, recently named Micki Schueler the primary client management representative for Illinois banks. Schueler has been with SRM since 2018 and brings 20+ years of business development and client service to her relationships. Micki is an avid Cubs fan and looks forward to forging relationships with IBA members and helping them improve their bottom line through SRM's services.

SRM, an IBA Preferred Vendor, provides individualized attention through its knowledgeable consultants and project managers. SRM Schueler has helped clients secure more than $5 billion in savings through best-in-class contract negotiation services.

IBA's Office Depot Program Just Got Better Since 2012, IBA has partnered with Office Depot to provide our members significant discounts on a wide range of office and banking supplies, furniture, copy services, promotional products, break room provisions, and more.

Our program, which combines the purchasing power of banks across the country, has flexed its collective muscle to revamp the program's discounted core list of more than 1,300 items. In addition, the program is an HP "Big Deal" member, bringing you significant savings on HP ink and toner.

What does this mean?

• Existing IBA Office Depot customers can expect even more significant savings and bank-specific products. Look for or sort by the "Best Value" icon to find the contractually discounted items.

• For new IBA Office Depot customers, this is a great time to review your current office supply program. Let us do a cost analysis of your supply spend to show you how much we can save your bank.

Key program benefits: • Select from 1,300+ discounted items frequently used by banks

• Customize a discounted list of up to 75 additional items for your account

• Free, next-day delivery to most locations on orders over $50 • Contract discounts extended to employees and board members To get started with Office Depot, contact IBA's Brian Hoffman at bhoffman@ illinois.bank.

Now in its 30th year, SRM continues to expand its services portfolio to align with the financial institutions of tomorrow, having developed a cryptocurrency advisory offering, organizational consulting services, and a proprietary Account Boost portfolio engine.

Connect with Micki Schueler at mcschueler@srmcorp.com or 734-8346553 for any questions members may have regarding SRM's services and experience.

March-April 2022 •

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MEMBER NEWS FHLBank Chicago Welcomes New Board Leadership for 2022-2023 The Federal Home Loan Bank of Chicago (FHLBank Chicago) welcomes our new elected leaders of the Board of Directors for 20222023. James T. Ashworth has been elected Chairperson of the Board, along with Joseph Fazio III to serve as Vice Chairperson of the Board and IBA Chair Michelle L. Gross to serve as Vice Chairperson – Elect.

Mr. Ashworth has been a member of the FHLBank Chicago Board of Directors since 2013. Mr. Fazio has been a Board Director since 2017 and Ms. Gross has been a Board Director since 2015.

First Mid Bancshares, Inc. Completes Acquisition of Delta BancShares Company First Mid Bancshares, Inc. (NASDAQ: FMBH) (“First Mid” or the “Company”) announced the acquisition of Delta Bancshares Company (“Delta”), which

includes Jefferson Bank and Trust (“Jefferson”), has been completed.

As of December 31, 2021, Delta had approximately $718 million in total assets, $560 million in deposits, and $424 million in loans through 5 locations in the St. Louis metro area. With the completion of this acquisition, First Mid has approximately $6.7 billion in total assets.

FNBC Bank expands digital business and commercial borrowing experiences for Chicago-area businesses Following their success using Numerated’s loan origination system during PPP, FNBC Bank & Trust, a $650 million locally owned and locally managed community bank serving the Chicago metropolitan area, is expanding its use of Numerated, a SaaS digital loan origination system for business banking, to include its full suite of business and commercial lending products.

The expanded partnership will provide additional convenience and efficiency for Chicago area businesses looking for a business loan through FNBC and bring an industry-leading experience consistent with the exceptional service for which FNBC Bank & Trust is known.

The partnership comes during a critical time as businesses are increasingly expecting a fully digital business and commercial borrowing experience. Having a digitized process in place means faster, safer, and more efficient access to critical loans and capital.

IN MEMORY OF Joseph (Joe) J. DeMay Joseph (Joe) J. DeMay, 62, of Lake in the Hills, passed away peacefully on November 28, 2021, at home with his family. Joe was born August 3, 1959, in Harvard, Illinois, the son of Joseph and Judith DeMay. He married Kendra Rutledge on June 7, 1986.

Joe spent his entire career in community banking. He worked at the First National Bank of Marengo for 25 years, eventually serving as their President. He

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was most recently employed at Prairie Community Bank for a span of 10 years, ending his career as their Executive Vice President and Senior Credit Officer.

Joe was incredibly invested in his community. He was a founding member of the Lake in the Hills Rotary Club and Lake in the Hills Ribfest. He served as the chairman of the Lake in the Hills Planning and Zoning Commission and was a charter member of the School District 158 Education Foundation.

You could find Joe on the golf course every Sunday morning, Wednesday, and Thursday evenings, and during almost any other minute of free time, he had

when the weather was good (or notso-good). He loved attending concerts with his friends and loved traveling frequently to Las Vegas, Northern Michigan, and especially Walt Disney World. He was a foodie until the end and enjoyed a good poker game.

He is survived by his wife Kendra, his daughter Tatum, his mother Judy, his sister Deborah Reising, and by his uncles, aunt, nieces, nephews, cousins, and brothers- and sisters-in-law.

He was preceded in death by his father, Joseph DeMay, and his parents-in-law Jack and Gerry Rutledge.

IN MEMORY OF Glenn P. Knolhoff Glenn P. Knolhoff, age 68 of Hoffman, died at his home on Thursday, February 17, 2022.

Mr. Knolhoff was born in Centralia, IL on August 24, 1953, a son of Wilbert and Helen (nee Tyberendt) Knolhoff. He married Carla Gaston on December 9, 1978, at Harvey’s Point Christian Church in Kell.

Glenn was a faithful believer and follower of Jesus. He was blessed with parents who set an example of trust and faith in Christ. Along with his wife, Glenn instilled this wisdom in their children. Glenn was a lifelong member

Donald Allen Offermann

of Trinity Lutheran Church in Hoffman and was a firm believer in supporting the church and school. Throughout his life, Glenn held numerous offices and served the church and school ministry faithfully.

Glenn enjoyed many blessings throughout his life and lovingly shared his blessings with his family and friends.

He enjoyed a good glass of wine, a good joke, farming with his brother, and cherished spending time with his family and friends. He was truly a loving husband, proud father, and doting grandfather. Some of Glenn’s most treasured memories were trips with his wife and children, as well as quality time with his grandson.

Glenn was a diligent and dedicated employee. He started his career as a

Donald Allen Offermann, born on April 30, 1937, in Red Bud, Illinois, passed peacefully on December 26, 2021, surrounded by his wife and children. He was the son of Viola (Binder) and the Reverend Theodore Offermann. His early years provided many adventures of parish moves and farm life along with his five siblings: Joan (Schnelle), Gerald, Judith, Virtus, and Nathan. After graduating from Lockwood high school in Missouri, Don was eager to get to the “big city.”

With nothing but a suitcase and a pillow, he headed up to Concordia Teacher’s College (now Concordia University) in River Forest, Illinois, at the young age of seventeen.

After earning his Bachelor of Science degree in English from Concordia in 1958, Don answered the call to teach English at Luther North High School in Chicago, Illinois. In 1964 he embarked on his long career at Oak Park and River Forest High School. He began by teaching English and coaching soccer and track. He moved on to become English Department Assistant Chair, English Department Chair, Assistant Principal, Assistant Superintendent, Associate Superintendent, and finally Superintendent/Principal, retiring in 1999. While at OPRF, he also served as an adjunct professor at DePaul University and Loyola University.

During his long career, he shared his passion for learning and leading, always maintaining his core values of putting students and their best interests first. He truly exemplified the school’s motto of “Those Things That Are Best.”

While attending college, Don met his wife, Verna, daughter of Ruth (Meyer) and Professor Richard Lange. They married on June 18, 1960, and were blessed with four children: Daniel, Nancy, David, and Monika.

Don was not one to stay idle. Thirteen days after retiring from public education in 1999, he started a 21-year career at Forest Park National Bank and Trust Company. As Sr. Vice President of Business Development, he continued

CPA at Glass and Shuffet. After 10 years there, he began working at Farmer’s State Bank of Hoffman where he worked for 33 years including 10 years as the bank president. Glenn enjoyed his work, and sincerely loved and appreciated the people he worked with.

Glenn was a trusted advisor, confidant, and friend to many. He will be remembered for his character, work ethic, and care for those around him.

He was a genuine, quiet, proud, and caring man who served God faithfully and humbly until he was called home.

All those who knew and loved Glenn will miss his sense of humor, honesty, generosity, and wisdom. As we grieve our loss, we rejoice that Glenn has gained Heaven and we await our reunion with him in Glory.

to serve the communities he loved. He was instrumental in the Madison Street Forest Park redevelopment, helping to transform it into the thriving retail, dining, and entertainment destination that it is today. Don was always willing to volunteer for bank and community development activities.

After family, faith, and community, Don’s passion was running. His discipline and dedication in the classroom seamlessly translated to the track at OPRF, where he enthusiastically coached several state champions and shared his drive to excel. He ran in many local road races and was a leader in his age group. In 1968 he was a founding member of the Oak and William Running Club, later known as the “OWIES.” To this day, the group regularly gathers for early morning runs.

March-April 2022 •

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Tap into the resources and programs offered by our Preferred Vendors. Get started by connecting with Brian Hoffman at bhoffman@illinois.bank or 217-789-9340.

PREFERRED VENDOR

March-April 2022 •

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WINDSOR ADVANTAGE’S Q&A CORNER

SBA Notes of Interest

By Connor Mulvey, Windsor Advantage

Should we look at the SBA now that PPP is behind us?

SBA lending can effectively provide small businesses with better access to capital, and lenders are signing up to provide these programs at record levels. Many banks, credit unions, certified development companies, and community development financial institutions are adding SBA products to their offering. The National Association of Government Guaranteed Lenders hosts several SBA conferences each year, and in the last few years, these conferences have sold out.

The secondary market for investors looking for a relatively safe investment is still very robust. Lenders can sell the guaranteed portion of the loan for premiums that have been as high as 20%. It would be

best not to entertain this specialized lending because it can change as it did in 2008. As a lender interested in providing small businesses with better access to capital with some of the risk mitigated, this is a program you should consider, and the time could not be better.

1. There are risks in SBA lending, and what should we consider?

Yes, barriers to entry make this jump a little uneasy for new lenders to enter this type of specialized lending. Some lenders reconsider due to the shortage of expert SBA staff, the ever-changing SBA Standard Operating Procedures, and the fear of losing the guaranty.

SBA lending has reached record levels, causing many lenders to pay more for SBA specialists than they did just a few years before. We see in any one market that 75% of the SBA lenders “dabble” in SBA lending, meaning approving 1-6

loans per year. SBA lending is not a sustainable course because it does require specialized staff in processing, closing, and servicing SBA loans.

There are alternatives, whereas lenders focus resources on business development and outsource the processing, closing, and servicing functions. There are approximately 6-10 “national lender service providers” such as Windsor Advantage in the market, along with many “mom & pop” providers servicing one or two lenders locally. It is virtually an unregulated part of the industry that is getting more and more attention as Congress pushes the SBA to be better stewards of the program. Those who have been in the industry and want to make sure this program is “done right” welcome the additional scrutiny, although hopefully not as cumbersome and restrictive as Dodd-Frank requirements. Vendor management is becoming more and more of a focus for all of us.

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American Bankers Association

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Graduate School of Banking

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LKCS

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PG Design

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Wipfli LLP

800-486-3454

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13 Back Cover 16-17 9

2. How can we leverage our current team to introduce SBA lending to our communities?

If you enjoy a solid C&I lending team or even a branch network with some experience in small business lending, you can organically grow your SBA portfolio.

We encourage lenders first to develop an efficient process (or your loan officers will not buy into SBA lending), set realistic goals, and even provide incentives to start a good path to a successful SBA program.

It is an excellent time to look at SBA lending for your institution. There are sufficient support organizations that you can work with to stay out of hot water and develop internal and external controls to ensure the program is successful. Also, you can create a consistent delivery system to provide both internal buy-ins from your loan officers and external buy-in from your accountants, business brokers, and realtors whose only objective is to get to the closing table.

Windsor Advantage is the nation’s largest SBA Lender Service Provider and assists lenders nationwide in processing, closing, servicing and liquidations.

For more information, please contact Connor Mulvey, Vice President– Business Development Windsor Advantage, LLC, 444 N Wells St., Suite 201, Chicago, IL 60654 P: 312-585-6596 C: 708.408.1820

March-April 2022 •

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EVENTS CALENDAR

Visit our online Calendar of Events for full event descriptions and delivery methods

Visit my.illinois.bank/Education-Events/Upcoming-Programs

SEMINARS, CONFERENCES & FORUMS

ONCOURSE LEARNING WEBINARS

GSB ONLINE SEMINARS

5 Branch Leadership, Session 2 – Springfield* 5 Women & Allies Leadership Symposium 6 IRA Essentials – Springfield* 7 Advanced IRAs – Springfield* 12-13 Advanced Commercial Loan Underwriting Workshop – Springfield* 14 Commercial Real Estate Lending Workshop – Springfield* 22 Technology & Operations Forum – Springfield* 28 New Accounts in Illinois – Springfield* 29 New Accounts in Illinois – Oak Brook

1 Best-Ever Compliance Checklists for Commercial Loans 5 Bank Accounting: Beyond the Basics Part 1 5 Handling Deceased Accounts 6 Power of Attorney 6 Flood - Understanding the Basics 7 Bi-Monthly Compliance Briefing 7 Bank Accounting: Beyond the Basics Part 2 8 Commercial Loan Defaults and Workouts 11 Bank Accounting: Beyond the Basics Part 3 12 Overdrafts 13 Trust Accounts 13 Untangling the Web of Fee Disclosures 14 Bank Accounting: Beyond the Basics Part 4 14 Opening Fiduciary Accounts 15 ACH Origination... Knowledge Manages Risk 18 Commercial & Business Lending Basics for Support Personnel 19 Active Shooter 19 Coaching Tellers to Excellence 20 Excel Explained: Minimize Spreadsheet Errors 21 Marijuana/Hemp Update 22 Employment Records 25 Compliance 101 for New Compliance Officers 26 How to Build Out an Incident Response Playbook 26 4 Leadership Spheres for Less Stress and More Influence 27 E-Sign For Deposit Accounts: Challenges & Solutions 28 HR Basics for Supervisors 28 FCRA Compliance: E-Oscar and Metro2 29 Basic Cash Flow Analysis

5 Commercial Lending: Best Practices for Lines of Credit, Term Loans and Other Credit Facilities 5 Consumer Lending: Overview of Credit History and the Role of Collateral 8 How to Effectively Manage Your Virtual Team 12 Business Financial Statements and Tax Returns: Navigating and Analyzing a Business Tax Return 12 Commercial Lending: Loan Agreements and Covenants 12 Consumer Lending: Overview of Residential Mortgages and Home Equity Lending 14 8 Strategies for Meaningful Meetings 14 Strategies for Succession Planning and Talent Management 15 Lending to Churches and Non-Profits 18 Become a One Stop Shop: How to be the Only Bank Your Customers Will Ever Need 19 Commercial and Industrial (C&I) Lending in Today's Competitive Market 19 Commercial Lending: Five Keys to Better Credit Memos and Loan Packages 19 Commercial Lending: Improving Commercial Loan Pricing and Profitability 20 HSAs: Top 10 Wrap-up (2022 Edition) 20 Today's Balance Sheet Management Sets the Tone for Tomorrow's Earnings 22 Cybercrime Trends and Hot Topics in Banking 27 Construction Lending: Issues in Underwriting Commercial Construction Loans 27 Commercial Lending: Introduction to Global Cash Flow

APRIL

MAY 3 4 6 10

Cybersecurity Seminar– Springfield* Cybersecurity Seminar– Oak Brook CFO Forum Springfield – Springfield* LaserPro® Commercial Doc Preparation for Beginners Workshop – Prospect Heights 11 LaserPro® Consumer Real Estate for Beginners Workshop – Prospect Heights 11 Marketing Forum 12 Education Trainers Forum 12 Basic Personal & Business Tax – Springfield** 12 LaserPro® Tips, Shortcuts and Best Practices Workshop – Prospect Heights 13 Compliance Conference – Lisle 17-18 Advanced BSA/AML Academy – Springfield* 18 HR Forum 18 Midwest CEO Forum 19 Small Bank CEO Forum – Bloomington* 20 CFO Forum Schaumburg

JUNE 6-9 21

Annual Conference – Springfield Senior Retail Forum, Session 2

*Hybrid (In-Person or Virtual) ** Virtual Only

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• March-April 2022

APRIL

APRIL

ABA ONLINE TRAINING COURSES

APRIL 4 11

The Banking Industry Managing Interest Rate Risk

THE LAST PAGE

IBA Takes on Washington, DC In early March, seven Illinois Bankers gathered with hundreds of bankers from across America in Washington, DC to hear presentations from Chairwoman Waters, Ranking Member McHenry, Congressman Perlmutter, Senator Tester, and Senator Moran, along with regulators, economists, and ABA representatives. The Illinois Bankers spent time with Illinois Congressional delegation members discussing the Community Bank Leverage Ratio Relief Bill, the Safe Banking Act, the Equal Credit Opportunity in Rural America, Libor transition, and

updates on the business climate in many Illinois communities.

Our Illinois delegation talked directly about our issues with Congressman Casten, Congressman LaHood, Congresswoman Miller, Congresswoman Underwood, Congressman Danny Davis, Congressman Rodney Davis, Congressman Bost, and Congressman Krishnamoorthi.

Illinois' Congressional officials were very interested and open to the issues and ideas presented by the great members of the Illinois Bankers Association.

March-April 2022 •

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1 IN 5 CUSTOMERS USE PREPAID CARDS ON A MONTHLY BASIS Don’t miss an opportunity to better serve your customers and attract new customers.

Community Prepaid through Bankers’ Bank is a new solution that allows community banks to provide reloadable and gift cards to your customers. Don’t be fooled, not all prepaid programs are the same.

With Community Prepaid, you’ll have: • No upfront costs — no charge even for the plastics • No compliance concerns — Bankers’ Bank owns the assets • No complicated balancing or accounting issues — offset load amounts and be paid your revenues directly into your Bankers’ Bank DDA account • No reason to not add this to your product set

Visit BankersBank.com to learn how our new prepaid program can benefit your bank and customers.