Illinois Banker Magazine | May - June Issue 2021

The Official Publication of the Illinois Bankers Association ilbanker.com

May-June 2021

THE NEXT NORMAL

IN THIS ISSUE: The "Roughly Right" Strategy Accelerating Your Bank Protecting Your Bottom Line

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

May-June 2021 • Vol. 106 / No. 3 • ilbanker.com

TABLE OF CONTENTS

32

16 DEPARTMENTS 5 Message from the President and CEO 6 Compliance Corner 26 Ad Index 27 Future Leaders Alliance 31 On the Move

18

8

10

32 THE ONE Conference Highlights 34 Associate Members

FEATURES

38 Preferred Vendors

8 The “Roughly Right” Strategy: 8 Ways to Embrace the New Normal

42 New Member Banks

10 A Return to Normal, Without Returning to the Past?

13 Accelerating Your Bank Toward the “Next Normal” 16 The Times They are A-Changin’ 18 The Ultimate Guide to Remote Onboarding 20 Protecting Your Bottom Line in 2021 22 How Well Has Your Bank Responded to COVID? 25 Normalizing Cannabis Banking

42 New Associate Members 45 Industry News 46 Events Calendar

Our Mission: Advocacy. Education.

Industry Resource...for all Illinois bankers.

Our Vision: Connecting Bankers.

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

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

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

Michelle L. Gross Chairman-Elect State Bank of Bement

BOARD OF DIRECTORS REGION 1

REGION 4

Joan Heggen U.S. Bank, Chicago

Tom Gihl INB, Springfield

REGION 2

Anthony G. Nestler Hickory Point Bank and Trust, Decatur

Gary S. Collins Old Second National Bank, Aurora Rick M. Francois American Community Bank & Trust, Woodstock

T.J. Burge Community Partners Savings Bank, Salem

REGION 3

Richard J. Knebel The Bradford National Bank of Greenville

Thomas J. Chamberlain Iroquois Federal Savings & Loan, Danville Tyler Rouse First Federal Savings Bank of ChampaignUrbana

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

REGION 5

AT LARGE Dane Cleven Community Savings Bank, Chicago

Megan Collins Bank of America, Chicago

Rick R. Parks First National Bank of Waterloo

Jeff Fauver Catlin Bank

Steven F. Rosenbaum Hoyne Savings Bank, Chicago

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

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

ILLINOIS BANKERS ASSOCIATION STAFF DIRECTORY Two Offices to Serve You! Springfield Office: 800-783-2265 • Chicago Office: 800-878-2265 To connect with our staff, use this email format: firstinitiallastname@ilbanker.com

Betsy Johnson Treasurer Solutions Bank, Forreston

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

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

Legal and Compliance Carolyn Settanni, Executive Vice President and General Counsel Carly Berard, Senior Counsel Michael Schasane, Staff Attorney Amy Giacomucci, Law Assistant Bank and Partner Relations

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

Communications/Marketing/ Associate Membership

Illinois Bankers Business Services, Inc.

Debbie Jemison, CAE, Vice President

Brian Hoffman, President

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

Casey Widholm, Marketing Manager Illinois Bankers Education Services, Inc. Callan Stapleton, CAE, President Bob Anderson, Manager, Education Relations & IT Support

Marie South, Financial Assistant

Cassie Mattson, Manager, Event Management and FLA

Government Relations

Denise Perez, Manager, Education & Training

Ben Jackson, Executive Vice President

Julie Winterbauer, Vice President

Aimee Winebaugh, Assistant Vice President;

Linda Koch, CAE, Member/Business Relations Manager

Sarah Cowan, Membership and Government Relations Assistant

Sarah Cowan, Membership and Government Relations Assistant

Phil Talley, Vice President, Insurance Services

Amy Sale, Education Assistant Illinois Bankers Group Insurance Trust Erich J. Bloxdorf, Plan Administrator Mike Mahorney, Senior Trust Advisor Hillary Meyers, Trust Manager

Kevin L. Olson Immediate Past Chairman Grundy Bank, Morris

Randy Hultgren Secretary President and CEO Illinois Bankers Association, Springfield

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

Illinois Banker (ISSN 0019-185X) is published bi-monthly and is available at a cost of $45 per year for members and $90 per year for nonmembers. Regular issue single copy price is $8.50. Postmaster, send address change to Illinois Bankers Association, 3201 W. White Oaks Drive, Ste. 400, Springfield, IL 62704. News items from members of the Illinois Bankers Association are invited and are due on the first of the month preceding publication. © Copyright 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.

MESSAGE

Next Normal

Randy Hultgren

IBA President and CEO

2020, a year that will live in infamy.

We have just come off the most horrible, tragic year of our lives. Many have suffered unimaginable loss. All have been impacted. There is no going back to a time before the pandemic. The reality of the depth of change is still to be determined. Our former understanding of normal no longer exists. Our preparation and decisions going forward will define our next normal.

Undesired change is difficult and often painful. Change, whether by choice or not, is necessary. Through challenge and struggle, new competencies emerge. The stunning butterfly only exists because of the effort to escape the cocoon. Learning through dark times brings some level of redeeming the pain. The IBA Team and our great partners hope the thoughts and lessons in this special magazine issue can assist in making your next normal soar.

Association expert Mary Byers has given us an important reminder that change is bumpy and requires patience and persistence. The 8 strategies in her article (page 8) are extremely valuable. Other articles give tools of how to prepare for these changing times, assessing and learning from our performance this last year, how to protect your bottom line in 2021, guiding through remote onboarding, and accelerating your bank into the future.

This is a power-packed edition that will help you navigate and win the vital next months.

The IBA has our own challenging changes. After significant research and conversation, the Annual Conference Committee and the IBA are proud to announce that there is a new date for our Annual Conference. We want to see you in Branson, Missouri, on August 11-14!

My next normal involves finally getting to be truly face to face with many of you!

Know that everything will be done safely with close adherence to CDC guidelines.

We also plan to make the phenomenal content available virtually for those who will not be able to make it in person. We could not even dream of hosting a hybrid event but for all the lessons learned as we successfully pivoted many of our events to virtual last year.

The next normal is going to be amazing.

To get there, we all need to take some lessons from what we have gone through.

We have new understanding and appreciation for technology. Remote work can work. Flexibility and empathy make us stronger. We can function virtually, but we will always be better together.

I cannot wait to really see you in August in Branson!

May-June 2021 •

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COMPLIANCE CORNER The IBA Law Department

QUESTION

Are we required under federal or state law or regulation to return a borrower’s promissory note after a Small Business Administration (SBA) Paycheck Protection Program loan has been forgiven?

ANSWER No, we are not aware of any federal or state laws or regulations that would require your bank to return promissory notes to borrowers after the SBA has forgiven their Paycheck Protection Program (PPP) loans.

Additionally, we are not aware of any SBA guidance recommending that financial institutions return PPP-related promissory notes after forgiveness. Consequently, we do not believe that you are

required to return a borrower’s promissory note unless the note itself requires you to do so.

While the Illinois Mortgage Certificate of Release Act requires lenders to deliver a mortgage release to a customer when the loan is paid off (unless the lender provides a required notice or the title insurance company files a certificate of release), this requirement applies only to mortgage

loans that are secured by real property. Similarly, your primary federal regulator (the OCC) has issued examination procedures requiring examiners to ask whether your bank has returned “the original promissory note to the borrower in a timely manner,” but again, this would apply only in the context of mortgage lending.

QUESTION

We discovered a mortgage loan for which we never provided a Loan Estimate at any time during the loan origination process. Are we required to refund the property taxes escrowed along with all costs associated with the loan?

ANSWER We believe that your institution should issue a refund for all costs that you were required to disclose on the Loan Estimate, including escrowed property taxes, to cure your failure to provide a good faith estimate for any of the loan costs.

Regulation Z allows creditors to cure a failure to provide good faith estimates by refunding any amounts exceeding the disclosed estimates within sixty days after the loan consummation (while also providing a revised Closing

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• May-June 2021

Disclosure). However, Regulation Z does not address whether the failure to provide the Loan Estimate means that all loan costs are deemed to have been originally estimated as zero for the purposes of calculating the refund. We believe that in cases where you have failed to provide any Loan Estimate, a reasonable interpretation of Regulation Z would be to treat all loan costs as estimated at zero and consequently refund all loan costs that should have been estimated on the Loan Estimate, including escrowed property taxes, in full.

Unfortunately, the failure to provide a Loan Estimate entirely is a separate violation of Regulation Z’s timing requirements that cannot be cured by issuing a refund.

Regulation Z requires creditors to provide a Loan Estimate no later than the third business day after receiving the consumer’s application, and Regulation Z does not provide a cure for violating this requirement by failing to provide a Loan Estimate entirely.

QUESTION

Are there any Illinois regulations that would require us to collect a loan customer’s voided check before initiating ACH payments from their deposit account at another bank to make loan payments to our bank?

ANSWER We are not aware of any Illinois law or regulation requiring banks to collect a voided check from a customer before initiating an ACH debit from their account at another financial institution.

While some banks may ask customers to provide a voided check to confirm the accuracy of account and routing numbers before initiating an ACH debit from an account for purposes of loan payments, we believe such practices are based on internal bank policies rather than a

regulatory requirement. While an accounts receivable entry (or ARC entry) requires the use of a check as a source document for obtaining required information about the receiver at a point-ofpurchase or manned bill payment location, this requirement does not apply to other types of ACH transfers such as a Prearranged Payment and Deposit (PPD) entry.

The Nacha Operating Rules require an originating depository financial institution (ODFI) transmitting an entry to warrant

to each receiving depository financial institution (RDFI) in connection with such entry that it contains the receiver’s correct account number and certain other information. As a result, some banks may choose to verify a receiver’s account information by requesting a voided check.

Banks also may verify such information by sending a “prenotification” or non-monetary entry to an RDFI to confirm that an account number is valid before sending a debit entry.

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.

May-June 2021 •

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The “Roughly Right Strategy” 8 Ways to Embrace Your Next Normal

By Mary Byers

H

umans love certainty. And we love to plan and decide and strategize when we are certain about the facts, the future and our assumptions.

But what about decision making in times of uncertainty?

The reality is there is no such thing as 100% certainty. In order to make confident decisions, however, we often fool ourselves into believing there is. We assume business will carry on as usual. Our customers will continue to bank with us. And we’ll meet our monthly goals and projections.

And then, a pandemic hits – making assumptions impossible and destroying our plans. Worst of all, perhaps, it pulls the rug of certainty out from under us. This is where we find ourselves today.

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But all is not lost. As Seth Kahan, author of Getting Innovation Right, shares, “…the same circumstances that are causing discomfort are also midwifing the future.” He’s right. The very things that are challenging you and your organization now present an opportunity for change. COVID is a tailwind that forces innovation and as we’ve had to revise plans at a breathtaking, heart-stopping pace, we’re showing ourselves what we’ve been capable of all along.

Yet many organizations are still clinging to the past, assuming that the decisions we’re making are “forever” vs. “for now.” It’s true that some are. But here’s the harsh reality: for the foreseeable future, it’s “business as unusual” rather than “business as usual.”

And rather than innovating with the idea that we go back to “normal” after the pandemic passes, we should be focused on creating the business of the future. That’s what thriving companies are doing.

SPECIAL EDITION • THE NEXT NORMAL

Here are eight strategies to help guide you through this time: 1. Introduce the concept of “roughly right.” Columbia Business School professor

Rita Gunter-McGrath says, “As the pace of competition becomes faster, decisions that are made quickly and in ‘roughly right’ mode are likely to beat a decision-making process that is more precise, but slower. Prediction and ‘being right’ will be less important than reacting quickly and taking corrective action.” Notice what she is saying? Act and then recalibrate as necessary. This is a foundational tenet of innovative businesses. If you wait for certainty, you’ll lose time and momentum. Ask your team to be willing to be “roughly right,” basing decisions on solid data, of course.

2. Recognize we are in this for the long haul. Speaker Ryan Estis says, “The response

window for a crisis is typically measured in months, while recovery is measured in years.” It’s been more than a year since the pandemic first hit and there’s nothing that indicates a quick recovery.

3. Make the best decisions you can and move on. I know you are facing agonizing

decisions. I know you are taking your time making them. Collect the data you need. Consult your team and listen carefully to what they recommend. Sleep on it. Decide. And then move on. Second-guessing serves no purpose. Remember, you’re making the best decisions you can with the information you have.

4. Accept that your contingency plans may need contingency plans. What does

the remainder of 2021 look like? What’s ahead in 2022? Who knows? Plans need to continue to change and morph as we move through each stage of the pandemic.

5. Remain focused on helping your clients through the pandemic. Customers are

seeing how you are scrambling to provide them with information, guidance and resources. This builds trust and loyalty. (I’ve heard from several organizations that have actually gotten new clients because of how they are serving their market by creating value.)

6. Prepare now for your “next normal.”

We’ve heard a lot about the new normal: this is what happens to you. Your next normal is what you create as a result.

7. Embrace the knowledge that uncertainty leads to acceleration. The pace of change has quickened almost overnight. Use this time to lean into the trends and realities (many of which were happening even before the pandemic) that enable you to move to your preferred future.

8. Admit decision fatigue is real. Take care

of yourself as you are taking care of others. Get outside. Walk. Nap. My best ideas during this time haven’t happened when I’ve been sitting at my desk. They’ve happened when I’ve been away from it—where I can see that there is still beauty and joy and hope in the world. It’s these things that make it possible to keep driving forward.

Keep the above strategies in mind as you continue to respond to the pandemic and you’ll manage your business well, hopefully emerging more resilient than ever.

Three words have kept me going during this time.

I hope you will find them to be encouraging as well: We will prevail.

About the author: Mary Byers, CAE, works with organizations to help them remain relevant in a rapidly changing environment.

She’s the author of seven books, including Race for Relevance: 5 Radical Changes for Associations.

The very things that are challenging you and your organization now present an opportunity for change.

May-June 2021 •

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By Ben Mrva, SRM

Card Not Present: A High-Stakes Game

A Return to Normal, Without Returning to the Past?

I

t’s no secret that the current rate environment makes it difficult for banks and other financial institutions to drive profitability. At the beginning of December, just 68 basis points separated the three-month interest rate (1.60%) and 30-year rate (2.28%). For comparison, in pre-Great Recessions days of 2005 when banks were flying high, the Net Interest Margin (NIM) was far more profitable due to wider spreads.

forward jolt in 2020. According to an e-commerce report in The Financial Brand from November 2020, consumers who did most of their monthly spending online (>50%) almost doubled from 24% to 47%. This shift in transaction type, which favors the Card Not Present (CNP) payment category, highlights the need to recalibrate revenue, risk, and cost strategies to an entirely different set of consumer habits.

Do you know which card your cardholders are defaulting to for Amazon, Instacart, or UberEats?

Such default or top of digital wallet status will have significant implications on issuer revenue streams.

While some consumers may revert to previous behaviors after the pandemic, most of these shifts will have become second nature. Another example is “tap and go” at the physical point of sale.

Payment networks have touted this capability for years in TV commercials, but it took COVID-19 to make the act of passing a piece of plastic back and

The ongoing migration from brick-and-mortar retail spending to e-commerce channels got a

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SPECIAL EDITION • THE NEXT NORMAL

forth seem unsanitary. Once adopted, there’s little reason to expect contactless behavior to reverse.

Contrarily, our experts have found that unless consumers bank with one of the megabanks, many who were issued contactless-enabled cards remain unaware of the “wave a card” possibilities. Research from both the Fed and PSCU indicates the percentage of consumers who report possessing a contactless card is well below the percent issuers say they have distributed. Card issuers should adapt their strategies to cater to both CNP as well as contactless preferences - or risk attrition to their share-of-wallet.

The tokenization of e-commerce transactions may also carry cost implications for issuers. Although CNP interchange is currently above that of cardpresent, e-commerce transactions can come with higher costs and greater fraud risk, too. It’s also valuable to tailor strategies to the distinct segments of cardholders preferring mobile solutions to “tap and go.”

Tighter Contract Deadlines for Non-Interest Costs/Revenue Financial institutions must also build the pandemic’s impacts into their network agreements. SRM has noted a steep rise in vendors aggressively pursuing contract renewals – particularly those governing the increasingly critical areas of non-interest income and fees.

Many of these contracts, notably with card networks, are dated and don’t necessarily align with what’s facing many card issuers. To get ahead of these changes, we recommend that banks and credit unions with agreements expiring over the next two years revisit current and projected debit and credit card trends. Then, they can strategically pursue terms to position the institution for both the nearand long-term.

Batten Down for COVID’s Second Economic Wave One of the few things we can count on in our current crisis is that a return to the economy of late 2019 is nowhere on the horizon. Given this, community banks and credit unions need to address ongoing economic fluctuations with an array of balance sheet strategies, such as: • Monitoring deposit account activity trends. Many are currently seeing strong inflows but this could reverse and requires ongoing attention.

• Assessing client refinancing deals against their balance sheet capacity.

• Considering the influences of government stimulus funds on lending opportunities and the associated risks.

• Pursuing opportunities to reduce costs without impacting account-holder experience. Focused negotiations with third-party vendors often provide a valuable source of such savings.

The Bottom Line: While the industry has experienced pandemic-scale changes this past year (especially related to payments preferences), we will continue to adapt to new economic realities and changes in the regulatory climate as 2021 progresses. Financial institutions that can adapt and prepare for future market fluctuations will see greater success now and long term.

About the author: Ben Mrva is EVP, Business Development with SRM. IBA Preferred Vendor

May-June 2021 •

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• 12 •

• May-June 2021

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SPECIAL EDITION • THE NEXT NORMAL

Accelerating Your Bank Toward the “Next Normal”

By Kevin Quinlan, nCino

T

he COVID-19 pandemic has changed the game for financial institutions. Over the last few years, financial consumers were already growing more comfortable with conducting banking interactions via remote, digital channels like online and mobile banking, but the pandemic rapidly accelerated this trend.

• Creating a frictionless, digital-first experience for customers; • Deploying cloud banking to enhance efficiencies and empower employees; and • Enabling the Intelligent Enterprise to supercharge organizational growth.

As a result, many consumers are crossing the threshold of a traditional bank branch less frequently than ever before. In addition, a recent McKinsey study found that 75% of individuals who began using digital channels for the first time due to COVID plan to continue using them post-pandemic.

For financial institutions slow to adapt to these evolving expectations, the window to change is rapidly closing. Banks must serve their current and prospective customers wherever they are, rather than forcing them into a single channel of engagement.

If they don’t, someone else will gladly meet their needs.

The key is to leverage digital technology to modernize and enhance the customer experience, without forgoing the human touch that has always been the mark of loyal, long-term relationships.

To prepare for banking in the “next normal,” institutions should focus on three core areas:

According to a report published by the Financial Brand in late 2020, the goal to “improve [the] customer experience” was named a top priority by surveyed financial institutions, second only to “digital banking transformation.” The message is clear: today’s financial consumers expect the same convenient, frictionless access and seamless experience from their financial services providers that they receive from “Big Tech” companies like Amazon, Netflix and Google.

To achieve this goal, banks must not only deploy leading digital customer engagement technologies and features like mobile banking, customer onboarding, online loan applications and digital account opening, but support them with an end to end “system of engagement” that is fully integrated across the enterprise.

The customer experience must be consistent across all channels of engagement, whether in the branch, through the contact center, or via online

Creating a Digital-First Experience.

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and mobile banking. These channels must also be intuitive and intelligent enough to anticipate the customer’s needs before they inquire about a new service, account or loan. Once they ask, it’s often too late and they have likely started looking elsewhere.

Enabling the Employee-Customer Connection Through Cloud Banking While a focus on the customer experience is critical, banks cannot ignore the needs of the back office. It’s just as important to design and implement an efficient, collaborative experience for your employees, as it is to deploy a convenient, touchless experience for your customers. The platform of choice for both the front end and back office is found in the cloud.

The heightened attention on the employee experience comes at a critical juncture, as many workers have struggled with performing remotely during the pandemic. While working from home, with its myriad distractions, many employees found it challenging to print or scan documents, lacked adequate equipment to do their jobs and confronted intermittent or unreliable broadband internet access. Some even needed additional training on how to interact with clients over the phone, after careers spent working with their customers in a strictly face-to-face context.

Through the power of cloud banking, banks can easily share customer data and information across the enterprise, automate manual processes and eliminate the need for paper files via ready access to a secure central repository. The cloud frees up staff to spend their time working more closely with their customers, prospecting for new clients and nurturing stronger, deeper and more loyal relationships.

By focusing on the employee as well as customer experience, financial institutions can foster a positive internal culture while also serving their clients’ evolving needs.

Launching the Intelligent Enterprise Finally, the time has come for financial institutions to evolve into the “Intelligent Enterprise” by incorporating cognitive technologies such as AI, machine learning and robotic process automation (RPA) into their operations.

Harnessing the power of AI will enable banks to obtain deeper customer insights, make informed, data-driven decisions and more effectively mitigate risk and operational inefficiencies.

According to a study by Accenture, financial services companies that deploy AI wisely will realize net job gains of 14% and revenue growth of 34% by 2022.

Such revenue growth should also translate to profitability growth, both at the individual • 14 •

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relationship level as well as across entire portfolios.

Incumbent players can learn from the success of fintechs, which have been more aggressive at deploying autonomous decision-making systems, introducing native AI-enabled products and embracing cloud technology, versus using cognitive systems to simply improve existing products and processes. This difference in focus may explain why, according a World Economic Forum survey, 30% of fintechs have attributed a significant increase in profitability to the impact of AI compared with just 7% of traditional institutions.

The key lies in accessing the vast stores of data banks already have at their disposal and generating actionable insights through the use of cognitive technologies. In this way, agile organizations can become more predictive and proactive both in anticipating their customer’s needs and desires, and in developing data-driven strategic plans for future growth. That is the true mark of the Intelligent Enterprise.

Start Your Digital Journey Today In the wake of COVID, economic uncertainty and lower earnings hang over every decision a bank will make in the short- to mid-term. For this reason, many institutions are being more selective in their technology investments and may be looking for opportunities to cut costs while continuing to enhance their digital capabilities.

In the past, a comprehensive digital transformation project could take up to five years to implement. But banks can’t wait!

Micro-transformations represent one way to keep the momentum moving forward through a staged approach to digital transformation. An organization can begin by digitizing a single customer-facing line of business, addressing areas like customer onboarding or deposit account opening, or by implementing eSignature or digital document capture and exchange functionality. Once this initial stage is complete, the bank can tackle the next highestpriority project along the predefined roadmap.

These early successes help build momentum and excitement for the overarching digital transformation among all key stakeholders including employees, customers and executive leadership.

COVID-19 has served as a catalyst for change in many industries, and financial services is at the top of that list. As expectations and needs evolve into the “next normal,” the ability to serve both customers and employees digitally will prove fundamental in ensuring organizational success and growth well into the future.

About the author: Kevin Quinlan is Area Vice President, Community and Regional Banking, with nCino. IBA Associate Member

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“The Times They are A-Changin” (Bob Dylan 1964)

Are YOU Prepared?

By: Tom Stamborski, Liquid Capital of Illinois

Without question, much has changed since March 2020.

Fueled by the COVID 19 pandemic, our world has been dramatically impacted by this medical crisis. In almost every aspect of our lives, both personal and professional, some form of change was required to deal with the multiple issues affected. Within the banking industry, bank executives, lenders and staff members witnessed the impact on their customers in general and commercial customers in particular.

Some industries were harder hit, such as restaurants, hotels, hospitality, and retailers. Many businesses were scrambling to survive, with rightful concerns as to the impact on their employees, as well as the ripple effect on their suppliers and other vendors.

Ironically, the pandemic presented some companies with unique and sizeable opportunities to expand their businesses or to pivot to another product or service. As the pandemic wore on, governmental programs were developed to provide some level of relief, albeit temporary. In all of these scenarios, an underlying need and theme was and is, where can I source financing? As with similar situations, where there is a gap, someone will find a way to fill the void. Many business owners turned unconventional

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• May-June 2021

lenders offering merchant cash advance loans and other types of “unsecured” loans. While this type of lending appeared attractive on the face of it, in many instances it only exacerbated the problem by subjecting the business owner to onerous terms and conditions.

In responding to the needs of business owners, Congress approved various programs such PPP, CARES Act and EIDL loans. Banks initially led the way in assisting their customers with the application process, followed by the loan forgiveness process.

Other third-party, non-bank lenders joined in to address the volume of applications. The congress then approved a “2nd Draw” PPP loan program for those businesses qualifying. While these programs have clearly been helpful for many businesses, the government can’t continue an open-ended level of support. Unfortunately, while helpful, these governmental programs have, in a number of instances, served to mask underlying problems and/ or give a company a false sense of confidence to overstep their bounds. With that being the case, as the financial support progressively dissipates, the scope and severity of a given company’s financial condition will become apparent. Every bank executive and commercial lender that I’ve spoken

SPECIAL EDITION • THE NEXT NORMAL

with, as well as numerous economists and chief investment officers agree that as we progress into 2021, many businesses will have financial challenges that impair their operations or put them at risk of failing. On the other hand, as mentioned earlier, some companies will experience a level of growth that can also pose challenges. In both instances, the need for sufficient financing will be mandated.

As the magnitude and severity of the financial impact on businesses became known, banks started to assess the level of risk within their loan portfolios as well as revisiting their credit policies. While governmental programs for payment deferrals, covenant easing and loan classification allowed banks some level of latitude in working with their customers, these too were only temporary support.

While the extent of financial impact on current and prospective customers and the length of this evolving scenario is unknown, it fosters thought as to what issues will banks need to address in whatever is considered the “new normal..

Clearly, the needs of businesses to have the appropriate level of financing will continue.

However, the lending landscape has been altered by the pandemic. Prospects that previously appeared bankable may not be. Current customers may have facilities that don’t qualify for increases, are subject to reduction, not renewed or in more severe situations, the bank may wish to exit the relationship. Conversely, some customers may experience a level of growth that either surpasses the bank’s ability approve the requested level of financing or involves a business transaction that the bank is unwilling to underwrite (i.e., purchase order financing). Given the pandemic’s emotional and psychological strain imposed on business owners, any of these scenarios does not bode well for the bank from a relationship and reputational perspective. Although a similar situation existed prior to the pandemic, in a post pandemic world, its even more important that banks have alternative options to offer the customer to enhance their ability to secure a new customer or maintain the allegiance of customers they wish to retain. In a highly competitive industry, losing an attractive prospect is a missed opportunity or having to replace a current customer is time consuming and costly.

Even before the pandemic, banks recognized the need to expand the range of non-bank financing options.

Through strategic alliances, organic development and direct acquisitions, a number of banks have equipped themselves and their lenders to offer solutions that enhance their ability to more broadly attract new customers and offer alternatives to supplement a current customer’s lending facility. With so much demand for financing in the marketplace, a bank needs to demonstrate their desire to address the needs of their customers with a thoughtful and innovative approach. The “new normal” requires new thinking.

Reassessing the marketing thrust and branding of the bank is a serious consideration. Messaging will play an important role in communicating the bank’s sensitivity to the business owner’s situation and the bank’s desire and intent to address their needs.

It needs to be communicated uniformly among all team members to convey a unified image.

To say that we’ve all been through a lot would be a gross understatement. Everyone looks forward to the day when we can resume regular activities.

The changes, adjustments, and adaptations we’ve had to make has, in many instances, caused us to rethink our priorities and values in our personal and business lives. While it has been stressful in many respects, it has been a teaching moment and raised our awareness as to what were temporary changes or those that are permanent. In many respects, it’s caused us to reflect on what needs to be changed going forward. The banking industry, in its efforts to attract and retain customers, most of which have been impacted by the pandemic, is one where that analysis and thought process is well served by doing so.

As the old saying goes, “the one constant is change.” Recognizing the need to change and acting in a strategic and decisive manner can make a meaningful difference in the final outcome. The time to prepare is now.

About the author: Tom Stamborski is the President of Liquid Capital of Illinois and program manager for the Bank Alliance Program. IBA Preferred Vendor

May-June 2021 •

• 17 •

SPECIAL EDITION • THE NEXT NORMAL

The Ultimate Guide to Remote Onboarding

onboarding made easy SAMPLE ONBOARDING EMAIL TRACK

By Brett Jackson, Systemax

Y

get one ou only Day 1 chance at a first impression.

One advantage to automating your client onboardWhether you are onboarding a new client ing process is to allow your cross-selling drip to thank welcome new client and provide contact or a Email new employee, it is & critical that your campaign to follow on the back information end. You certainly process is one thatto communicates even writing have other product lines that would be gift advantaEmail banker to effectively remind about thank you note & sending when they are not in person. Unfortunately, the geous to your new customer, so it is worthwhile to pandemic has changed the way we think about enter them into your drip campaign to ensure you Day 3 these procedures forever. Who would have thought stay front and center. Try incorporating a success Online training video that employees and banking customers wearing a mask into story, share interviews, and other information the bank would be commonplace? It is time to about your existing clients to build additional trust recalibrateDay our onboarding processes for the future. and promote your bank.

7

Invitation for customer to follow on social media

The remote onboarding process is foreign territory for most managers but understanding a few tips Day 14your first few critical weeks to and tricks will allow operate flawlessly.

Identifying branch & ATM locations

Bringing on a new customer is a pivotal time in Day 20 a new business relationship and the goal is to onboarding made easy Checking account information launch seamlessly into your working relationship. & promotion SAMPLE ONBOARDING EMAIL TRACK Precautions such as travel restrictions and social Day 1 distancingDay guidelines 30has shifted the way we think Email to thank & welcome new client and provide contact information Email to banker to remind about writing thank you note & sending gift about the start of this exciting relationship, but it Saving account information & promotion Day 3 does not have to. By developing a seamless cusOnline banking training video tomer onboarding experience that optimizes new Day 7 Invitation for customer to follow on social media Day 40while defending against fraud account conversions Day 14 tactics is essential.

Money matters account information & promotion Identifying branch & ATM locations Day 20 Notification email goes to banker to call customer and check in

Checking account information & promotion Creating an automated onboarding checklist will Day 30 ensure that welcome communication, agreements, Saving account information & promotion Day 50are all executed and keep and material requests Day 40 Money matters account information & promotion everyone organized and on the same page.

To avoid Notification email goes to banker to call customer and check in Home loans account information & promotion digital onboarding overwhelm, make every step as Day 50 Home loans account information & promotion simplistic as possible. Think about also including Day 60 Day 60 videos within your process. Many find videos an Personal loans account information & promotion Personal loans account information & promotion Day 70 easy way to walk customers through a process.

Get Auto loans account information & promotion creative with it. Take it as an opportunity to share Day 80 Member referral your culture and create Day 70 an experience for your new Customer added to list categories for specific interest emails customer. After your initial tasks have been comAuto loans account information & promotion pleted, following up with dynamic emails, texts or Check out www.systemaxsolutions.com/onboarding even phone calls can continue to strengthen your Day 80 to download your free onboarding systemaxsolutions.com | 217.546.6646 | checklist. relationship.

• 18 •

Member referral Customer added to list categories for specific interest emails • May-June 2021

Examining your employee onboarding process in this new normal is also critical.

Many banks have several staff working off site which can lead to isolation and a culture void.

Typical employee onboarding plans could be lengthy and moving it to a remote plan could seem daunting, but it does not have to be. Moving to an automated digital strategy of onboarding employees can allow a much swifter transition time.

Automated alerts can prompt hiring managers every step of the way. It may begin with emailing your corporate video where they

Alt

can soak up your culture, then a week later it could prompt the manager to coordinate a virtual lunch date with your new hire.

Sending a box of your swag, providing a link to your brand store and allowing them to order their business cards, taking a picture of their physical office at the branch to give them a sense of what you created for them; these are all ideas of what you can incorporate into your new hire plan to make them feel as welcome as “remotely” possible. Once you have determined the steps within your perfect onboarding hiring process, it is as simple as initiating the process.

No matter what your role is at the bank, time is something that you always need more of. By utilizing marketing automation technology your customer and employee onboarding tasks is the ultimate way to put time back in your day.

Allowing these processes to run in the background to prompt you only when needed, provides an amazing experience when new employees or clients are welcomed into your culture.

About the author: Brett Jackson is CEO of Systemax. Visit www.systemaxsolutions. com. IBA Associate Member

Branch Transformation Through Renovation Renovate With Purpose When your branches are in need of a refresh, it’s time to consider how the facilities are serving your business objectives. The PG Design + Build team will help you: • Create your own branded style, • Deepen customer relationships, and • Increase operational efficiencies.

Free Consultation Steve Howlett has spent 30 years transforming bank branches to maximize results. To chat with Steve about your architectural needs or request a free branch assessment, call (815) 654-9700 or email steve@pgarch.com.

Ask Steve!

Bank Renovation Specialists

May-June 2021 •

• 19 •

SPECIAL EDITION • THE NEXT NORMAL

PROTECTING YOUR BOTTOM LINE IN 2021 (AND BEYOND) By: Jamie Polend, APPI Energy

Cost reduction strategies are always on the forefront for organizations, and one effective way to curb costs is by taking a closer look at one of your biggest cost factors: energy.

Easier said than done though, right? Especially as we continue to navigate the “new normal” while concurrently preparing for what the next phase of “normal” will look like. Let’s take a look at a few of the ways you can reduce costs in 2021, while positioning your organization for improved sustainability and continued cost savings far beyond the immediate future.

Avoid Complacency

Minimizing budgetary risk is appealing no matter the year, but finding cost savings and increasing budget certainty seems more appealing now than ever. A common misconception we encounter is the idea that customers need to be well-versed in energy procurement to realize savings, that the process is time consuming, or that there are no alternatives to their current supply contract. Not true. For starters, you can begin the process at any time during your contract term. The beauty of deregulation is that it creates competition, and competition begets competitive pricing, which is a win for those who opt to shop around.

Light the Way

Lighting is one of the largest electricity expenses in your buildings, which is why upgrading to LED lighting is one of the smartest decisions you can make. With on-bill funding, tax rebates and incentives, significant savings on your energy bill, and little to no operational disruption to install the new lighting, you’re looking at a brighter 2021 in no time...literally and figuratively.

• 20 •

• May-June 2021

Measure. Manage. Respond.

If you’ve been struggling with keeping track of your organization’s utility bills across all your locations, then an enterprise energy and utility management system will be your new best friend in 2021.

Designed for multi-facility customers, the Energy Intelligence Suite allows you to automatically capture utility bills across all your locations, provide usage reports to help identify opportunities for improved efficiency, and compare operations for potential system-wide improvements.

Embrace the New

Renewables are on the rise. Buying electricity from renewable sources has been a trend amongst banks for several years now, with organizations setting goals and benchmarks to become carbon neutral in x-amount of years. Whether you are environmentally or financially motivated by what renewables can bring to your bank, there is no denying renewables will continue to gain momentum in 2021, and well beyond.

Take a Holistic Approach

Short on bandwidth? An extension of your team that can manage all of your energy-related needs, from negotiating a new electricity supply contract, to securing RECs, to managing larger energy efficiency and sustainability projects not only saves you money, but time as well. Energy solutions are varied and plentiful, but with the right partnership in place, you’ll focus on the beneficial outcomes far more than the logistics and legwork needed to implement them.

A great place to start is by giving our team at APPI Energy a call to discuss the wide array of options available to your organization. We’re here to assist you through the next phase of ‘normal,” with cost saving solutions that are tailored to your needs and goals.

About the author: Jamie Polend is an Energy Consultant for APPI Energy and is the dedicated Energy Consultant for IBA members. He holds an Energy Management Professional (EMP) credential from the Energy Management Association and has been in the energy industry since 2014.

Contact Jamie at jpolend@appienergy.com or call 667-330-1158.

IBA Preferred Vendor

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Go to bokfinancial.com/webinar or scan the QR code.

Loan Pricing Floors

Bank dealer services offered through Institutional Investments, Bank of Oklahoma, which operates as a separately identifiable trading department of BOKF, NA. Services may be offered under our trade name, BOK Financial Institutions Group. BOKF, NA is the bank subsidiary of BOK Financial Corporation. Some services may be offered through BOK Financial Securities, Inc., member FINRA/ SIPC, and an affiliate of BOKF, NA. Investment products are: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

May-June 2021 •

• 21 •

How Well Has Your Bank Responded to COVID? Your Customers Weigh In. Top Pandemic Performers Across the State The pandemic took all banks by surprise, and all bank customers as well. With branch closings, work-at-home shifts, delinquency concerns and the PPP, banks strained to provide the same level of service as they did pre-pandemic. The latest Rivel Banking Benchmarks show that as the pandemic has rolled on, some banks have hit their stride again, while others continue to stumble.

Several banks that were receiving high marks from their own customers as recently as late 2019 have struggled for the past year. Other banks that have not been historically strong performers managed to shine. See the next page for the highest performers in each region.

Understanding how customers feel about their bank is crucial right now given the volatility in the market. As we inch closer to the end of the pandemic, many households and businesses are feeling more comfortable getting back out there, and that includes shopping for a new bank. The percentage of Illinois households who say they are fed up and will be switching banks within the next six months has shot up by 33% since last summer. This market volatility varies a lot by area, though: the South has increased 17% while Cook County has surged by a whopping 46%. This bodes poorly for those banks about to lose a lot of their customers, but very well for the banks with the right marketing message to attract those households and businesses.

The Rivel Banking Benchmarks, the largest survey of bank customers and prospects in the world, shows some of these differences in stark relief. The surveys are conducted online for over 4,000 banking institutions (including almost all institutions in Illinois) and entail objective interviews with two hundred thousand customers per year. During these interviews, customers and prospective customers rate their banks and credit unions (and their closest competitors) on dozens of different metrics, from friendliness and responsiveness, to the mobile app and ATM quality, to rates and fees. Many additional timely questions are

• 22 •

• May-June 2021

included for subscribers, with perhaps pandemic response being the most timely.

Rivel asked customers from almost every banking institution in the state to rate how well their bank has responded to the pandemic. The results were quite surprising in many cases and have shown that it is possible to shine despite difficult circumstances. The rankings show the top performers in each region, according to their own customers. Banks can receive their local ratings by contacting mrandi@rivel.com.

While all banks want to see how their own customers rate their performance, looking at the data more broadly can uncover interesting results. In the most recent wave of surveying (from July 2020 to January 2021), there were some notable ndings: • Customers in the Central North region (see the exact counties below) rated their banking institutions’ pandemic response the most favorably of the ve regions.

• Customers at the very largest banks were less pleased with their banks’ pandemic response (68% on average) while customers at smaller institutions were a little more satised (73%).

• One in four Illinois Baby Boomers surveyed is open to switching banks, compared to 34% for Gen X and Millennial participants.

Understanding how your customers view your performance through—and after—the pandemic will improve customer loyalty and reduce attrition. Banks should ignore objective customer feedback at their own peril.

Bruce Paul is the Managing Director of CXLign Banking at Rivel, Inc. 203.906.8923 |bpaul@rivel.com|rivel.com/cxlign

Top Rankings for Pandemic Response* NORTHERN • Blackhawk Bank • Byron Bank • Community State Bank of Rock Falls • Crystal Lake Bank & Trust • First American Bank • Old Plank Trail Community

• Sauk Valley Bank & Trust Company • St. Charles Bank & Trust Company • Sterling Federal Bank • Union Savings Bank

COOK COUNTY • • • • • • • • • •

Counties: Boone, Carroll, DeKalb, DuPage, Jo Daviess, Grundy, Kane, Kankakee, Kendall, Lake, Lee, McHenry, Ogle, Stephenson, Whiteside, Will, Winnebago

Barrington Bank & Trust CIBC Fifth Third Bank First Savings Bank of Hegewisch Glenview State Bank Hoyne Savings Bank Marquette Bank Northbrook Bank & Trust Parkway Bank & Trust Co Providence Bank & Trust

CENTRAL NORTH • • • • • • • • • •

Bank of Farmington Bank of Pontiac BankORION Better Banks Central Bank Illinois CIBM Bank Farmers & Mechanics Bank Heartland Bank and Trust Midwest Bank Peoples National Bank of Kewanee

Counties: Bureau, Champaign, Ford, Fulton, Henderson, Henry, Iroquois, Knox, LaSalle, Livingston, Marshall, Mason, McDonough, McLean, Mercer, Peoria, Putnam, Rock Island, Stark, Tazewell, Vermillion, Warren, Woodford

CENTRAL SOUTH • • • • • • • • • •

Bank & Trust Company Bank of Springeld CNB Bank & Trust Dieterich Bank Hickory Point Bank & Trust Prairie State Bank & Trust Prospect Bank Town and Country Bank United Community Bank West Central Bank

Counties: Adams, Brown, Calhoun, Cass, Christian, Clark, Coles, Cumberland, Dewitt, Douglas, Edgar, Effingham, Green, Hancock, Jersey, Logan, Macon, Macoupin, Menard, Montgomery, Morgan, Moultrie, Piatt, Pike, Sangamon, Schuyler, Scott, Shelby

SOUTHERN Bank of Carbondale Bank of Herrin Banterra Bank Citizens National Bank of Albion • FCB Banks • • • •

• • • • •

First Southern Bank Legence Bank Peoples National Bank State Bank of Whittington The FNB Community Bank

Counties: Alexander, Bond, Clay, Clinton, Crawford, Edwards, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jasper, Jefferson, Johnson, Lawrence, Madison, Marion, Massac, Monroe, Perry, Pope, Pulaski, Randolph, Richland, Saline, St. Clair, Union, Wabash, Washington, Wayne, White, Williamson

*As rated by banked households in each area of Illinois. Top 10 in each area, in alphabetical order. All responses since July 2020.

BANKING BENCHMARKS May-June 2021 •

• 23 •

RISE s d r a Aw

TO THE TOP

NOMINATE 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

AUGUST 11-14 Annual Conference

COMMUNITY SERVICE

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

Deadline is June 16, 2021.

Submit your nomination at ilbanker.com/Be-Recognized

Congratulations to the 2020 Award Winners BANKER OF THE YEAR Thomas A. Broeckling First National Bank of Steeleville COMMUNITY SERVICE First Bank of Highland Park First Neighbor Bank, N.A. Philo Exchange Bank

• 24 •

• May-June 2021

SPECIAL EDITION • THE NEXT NORMAL

Normalizing Cannabis Banking

By Stacy Litke, Green Check Verified

L

ike any new technology or line of business, there always seems to be three buckets of adopters. There's the early adopters — those on the bleeding edge who are always ready to try something new. There's the fast followers — those who want to be early to the game, but who are not quite as adventurous as the group that gets bruised in a new arena.

Then there's the normalized group — those that wait until everyone else has tested the waters before jumping in.

The U.S. financial industry’s adoption of cannabis banking is no exception to these categorizations. Of course, there were the pioneers who led the charge, took a few lumps and navigated through some operational mishaps along the way — all while learning from examiners who were also new to these programs. But now we are solidly in the era of the fast followers, those who waited enough time to clearly see

the opportunity and recognize that no one’s bank is getting shut down over this new line of business. We’ve been working with this group to build and scale programs for a few years now, and they are increasingly coming to us more educated on the industry and less intimidated by the opportunity. To me, this is a sign that we are moving towards normalization.

In fact, about half the banks we talk to are aware that you can bank cannabis in a safe and compliant manner, and they are also aware that doing so provides a source of premium fee revenue and low-cost deposits that can bolster an institution’s performance. The remaining challenge that seems to concern many of them is the perception that you need an army of compliance experts to run a program. That may have been true for the pioneers, whose sometimes outdated metrics and best practices are shared over and over again without being

May-June 2021 •

• 25 •

updated, frightful for listeners like all of the best legends. Nowadays though, there are automation tools, like ours, that can support a compliant program with four to six times less FTE than those original manual programs. There’s a reason so many financial institutions take the fast-follower approach.

So when will we see normalization?

We here at Green Check are optimistic that the state level momentum will continue to the point of Federal legalization within the next few years. (And if you're thinking legalization means less regulation, then we might ask “when was the last time you saw the government reduce oversight?”). We're also seeing some of the established markets level off in terms of new cannabis business licenses and pricing, while growth is occurring rapidly in states with new programs and those that are adding adult-use to existing medical markets.

The Illinois market in particular added 75 additional licenses in 2020. According to the Chicago Tribune, there were still 30 additional licenses to be granted as of December 2020, and there is a tremendous amount of sales growth predicted for 2021. As of the end of 2020, we're seeing an average of over $3 million in sales per month, per license.

Also noteworthy, as of February 2019, the Treasurer’s Office introduced the Banking Options for Legal Cannabis-Related Businesses Act. This act provides protections within the Illinois state banking laws for financial institutions that provide services to cannabis-related businesses. Additionally, as of July 2019, the Illinois Department of Financial and Professional Regulation (IDFPR) is prohibited from penalizing

or discouraging a state bank or credit union solely for providing financial services to cannabis-related businesses.

These are all signs of a transition towards normalization, so it’s time for your institution to ask some important questions. Is this a line of business that will support the overall goals of your institution?

And if so, do you want to be at the tail end of the first follower group, or would you rather wait until the practice is normalized? What competitive advantages does timing give you? Hint: those benefits of being a fast follower rarely apply to the normalized group.

If the answers to those questions lead you to the idea of launching a program, know that you will need to be thoughtful in your approach, which includes a risk assessment, financial modeling and board education in order to demonstrate to examiners that your institution clearly understood the risks and rewards of such a program. It’s also important to understand the benefits of using automation. One of the main lessons learned from the early adopters are the pitfalls of manual programs, which we’ve seen highlighted by examiners in recent years.

In summary, this is not a line of business to be afraid of, but the success ultimately relies on both preparedness and timeliness. When you're ready to work through the process, look us up at www.greencheckverified.com.

About the author: Stacy Litke is Director, Banking Compliance for Green Check Verified. IBA Associate Member

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BOK Financial Institutions Group

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IntraFi Network

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LKCS

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MIB – Midwest Independent BankersBank

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PG Design + Build

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Wipfli LLP

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15

• 26 •

• May-June 2021

FLA UPDATE

Ryan Best SENB Bank

Drew K. Dethrow

Jacquelyn Callham Amalgamated Bank of Chicago

JoAnna L. Engels

Angie M. Carter

Dillon C. Clark

United Community Bank

Litchfield National Bank

Jackie Flick

Selestina L. Collazo First Midwest Bank

Angie Foppe

Stacey Gallagher

First National Bank of Steeleville

State Bank of Cherry

First Bank of Highland Park

Bank of Belleville

FNBC Bank and Trust

Rachael R. Gallivan

Maria A. Godina

Lauren Hagan

David M. Humphrey

Jennifer J. Mathis

State Bank of Bement

Security Savings Bank

The Bradford National Bank

Marcela Melendez

Alyssa R. Moreth

First Bank of Highland Park

Republic Bank of Chicago

Lisle Savings Bank

Jessica A. Stephens

Whitney M. Valdivia

Jodi L. Van Dahm

Murphy-Wall State Bank and Trust Co.

Genna M. Williams Farmers & Mechanics Bank

Grundy Bank

Georgia Pelletiere

Republic Bank of Chicago

Peoples Bank & Trust

Busey Bank

Denise D. Smith Murphy-Wall State Bank and Trust Co.

Sukriti Verma The Leaders Bank

Jenni Snow INB, National Association

Andrew Wetzler First National Bank of Waterloo

CONGRATS ILLINOIS BANKERS ASSOCIATION

Future Leaders CLASS Alliance of 2021 May-June 2021 •

• 27 •

FLA UPDATE

Congratulations!

Member FDIC

We are proud of you for completing the IBA Future Leaders Alliance Program!

Congratulations, Jackie and Marcela We are grateful for your leadership, expertise and commitment to First Bank of Highland Park as we deliver banking solutions throughout the Chicagoland area. Congratulations on completing the Future Leaders Alliance Program.

CONGRATULATIONS SELESTINA!

We are proud of you for completing the IBA Future Leaders Alliance Program!

Jackie Flick Vice President Retail Operations

HIGHLAND PARK • NORTHBROOK • FIRSTBANKHP.COM Member FDIC | Equal Housing Lender | NMLS #421795

• 28 •

Selestina Collazo Branch Manager

Marcela Melendez Senior Vice President Lease Finance Group

• May-June 2021

FirstMidwest.com

Congratulations!

Mortgage Loan Officer NMLS #1789641

YENTIHW SNOITALUTARGNOC

Whitney Valdivia

Congratulations to Drew Dethrow on completing the Illinois Bankers Future Leaders Alliance Program!

Your team is proud of you!

Grundy Bank is happy to congratulate Whitney Valdivia on completing the IBA Future Leaders Alliance program.

grundybank.com

Congratulations Ryan –

Jenni Snow Leads

by Example

from all of us at SENB® Bank!

Ryan Best Business Loan Officer

Congratulations to INB’s newest Future Leaders Alliance graduate Jenni Snow. Jenni has been with INB since 2010; she turned a part-time college job into a full-time career.

As INB’s Human Resource Officer, Jenni now helps others move forward in their careers, just as she’s done for herself by completing the IBA’s Future Leaders Alliance program.

We are grateful for your commitment to continued learning and your service to the SENB Bank team. Congratulations on your graduation from the Future Leaders Alliance Program.

senb.com

Serving the Illinois and Iowa Quad Cities Region and the Roscoe, Illinois and Beloit, Wisconsin Stateline Region

Member FDIC

INB-JSnow-IBA-3.5x4.indd 1

3/3/2021 2:21:19 PM

May-June 2021 •

• 29 •

FLA UPDATE

CONGRATULATIONS! Illinois Bankers Future Leaders Alliance Program CLASS OF 2021

DILLON CLARK Assistant IT Officer

CONGRATULATIONS! United Community Bank proudly recognizes Angie Carter for her completion of the IBA Future Leaders Alliance Program!

Angie Carter Branch Manager

UCBbank bank.com • 30 •

• May-June 2021

Everyone at Litchfield National Bank is proud of your accomplishment.

Thank you for your dedication to community banking!

ON THE MOVE Bloomington

Davenport, IA

Alex Calvert and Eric Hjerpe have been elected to their Board of Directors. Calvert is managing member of Calvert Funeral Homes.

Hjerpe is owner and managing partner of Hjerpe & Tennison CPAs, LLC.

Kevin Wellman, Vice President, Private Banking Officer, will oversee the bank’s private banking division.

QCBT’s Private Banking department had previously been managed since 2008 by Laura “Divot” Ekizian, who transitioned to the role of President and Chief Relationship Officer in May of 2020.

FIRST STATE BANK OF BLOOMINGTON

Chicago CIBC

After a long, distinguished career, Larry Richman has retired as Chair, focused on supporting our client relationships, and stepped down from the CIBC Bancorp USA Board of Directors. Richman has spent his career dedicated to relationship banking. From his earliest days with American National Bank to his 25 years with LaSalle Bank to leading the team that transformed The PrivateBank into a powerful Midwestern commercial bank, Richman has always put clients at the forefront. His passion for making banking about personal connection is matched by his dedication to making Chicago a thriving place to live, work and do business.

QUAD CITY BANK & TRUST

With over 22 years in the financial industry, Jim Noel will join QCBT as Assistant Vice President, Branch Manager for the Moline and Brady Street locations. Also new to the QCBT team, Becca Mueller will serve as Branch Manager for the Bettendorf/Middle Road and West Davenport/Division Street locations.

Jenny Bemis, who most recently held the position of Lead Account Executive, Retail Banking Officer, will be promoted to Assistant Branch Manager, Officer for the Utica Ridge location.

Green Bay, Wis. ASSOCIATED BANC-CORP

Congratulations Stacey Gallagher!

We appreciate your leadership and commitment to FNBC Bank & Trust.

Congratulations for completing the Illinois Bankers Future Leaders Alliance Program.

www.fnbcbt.com | 708-482-7700

LaGrange | Western Springs | Mokena | West Chicago | Yorkville

Associated BancCorp appointed Andrew Harmening president and CEO of the company and banking unit Associated Bank NA, effective April 28.

Harmening will also serve as a member of Associated BancCorp's board, and president of unit Associated Trust Co. NA. Harmening succeeds company President and CEO Philip Flynn, who intends to retire at the end of 2021.

La Grange

FNBC BANK & TRUST FNBC Bank & Trust is pleased to announce the promotion of Claudia Silva, of our Yorkville office, to Senior Retail Banker.

Madison, Wis. BANKERS’ BANK

Bankers’ Bank recently promoted Matt Sitkowski as the new Executive Vice President & Chief Operating Officer; Michelle Waldron has been promoted to Senior Vice President & Chief Financial Officer at Bankers’ Bank; and Steve Klitzing has joined the bank as Senior Vice President, Risk Management Solutions.

Monroe County

BANK OF MONROE COUNTY

Kathy Yung has joined Bank of Monroe County as a Vice President and Bank Manager.

Springfield

TOWN AND COUNTRY BANK

Shelly Dowell has been promoted to Executive Vice President, Chief Marketing and Culture Officer and Wendy Kernan has been promoted to Executive Vice President, Chief Technology and Operations Officer.

Waterloo

FIRST NATIONAL BANK OF WATERLOO

First National Bank of Waterloo recently promoted Mark LaPlantz to Senior Vice President/Chief Lending Officer.

Watseka

THE FIRST TRUST AND SAVINGS BANK OF WATSEKA Cody Fredrick has been promoted to assistant vice president. Anissa Galyen has been hired as a loan officer.

May-June 2021 •

• 31 •

CONFERENCE HIGHLIGHTS | MARCH 3-5

THE BEAT GOES ON - VIRTUALLY!

Opening speaker Paul Long, with his message of “FUNdamism,” was a hit with attendees. He reinforced that, at a time where society appears to be more focused on what’s not working as opposed to what is, it is important to embrace the opportunity to experience “what’s GOOD!”

Closing speaker Cassi Chandler was truly inspiring as she encouraged our record group of attendees to lead by serving and embracing the value of forming connections among different age groups, races, ethnicities, and diverse backgrounds toward common goals.

In addition to hearing from world-class general session speakers, attendees had the opportunity to engage in their choice of seven different “track” sessions, including the Leadership Track, pictured here and facilitated by Joe Micallef, Grow Up Sales.

It takes a lot to pull of such a successful virtual event! Here’s a glimpse of some of the IBA team behind the scenes.

INB

IBA

Banks that registered for The ONE early received a set of fun band instruments, and banks that took group photos were in a contest for the best photo during the event. As you can tell, our bankers are a little stir crazy!

Congratulations F&M Bank for winning best photo!

• 32 •

• May-June 2021

Holcomb Bank

Each year, the IBA recognizes one person as our Volunteer of the Year. This award honors a banker who has devoted endless hours of his or her time to an IBA Committee or Board and has gone above and beyond in their efforts to support the IBA and the banking industry. Last year’s winner was Don Krager with Bank & Trust Company.

Our 2020 Volunteer of the Year is Dave Brandon, Assistant Vice President and Trust Officer with Hickory Point Bank & Trust in Decatur. Dave has served as Chair of the Illinois Bankers Scholarship Committee since its formation in 2019. He was instrumental in the successful launch of the Illinois Bankers Scholarship Fund, which, last year, awarded its first four scholarships to students interested in going into a career in banking.

Dave goes above and beyond, serving as a sounding board for IBA staff, helping to create the scholarship criteria, soliciting scholarship donations and applicants, and even recording a promotional video. He and the other members of the committee also volunteer their time as judges to select the winners.

In 2020, he worked closely with the Past Chairs of the IBA Board to create a new scholarship in honor of IBA Past President and CEO Linda Koch, which raised more than $65,000 in just a few weeks.

Dave is active in the community and serves on several boards including the Central Illinois Estate Planning Council and a private, charitable foundation. He also serves as Secretary to the Mount Zion School District Board of Education.

Congratulations to Dave Brandon, our Volunteer of the Year!

The IBA is grateful for our more than 200 volunteer bankers and associates who serve on our boards and committees and we recognize each of them for their contributions to the IBA, and more importantly to our great industry! If you would like to be more involved and make a difference in the industry by serving on an IBA committee, please connect with Mary Curl at mcurl@ilbanker.com.

Wheaton Bank & Trust Company

Sauk Valley Bank

MWSB - Pinckneyville Branch

Lisle Savings

Town and Country

Security Savings Bank

Murphy Wall

Bradford National Bank

Jersey State Bank

Bank of Belleville

Bank of Farmington

May-June 2021 •

• 33 •

a SHOUTocOiaUteTs! to our Ass

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

21st Century Financial Services 21cfs.com

APPI Energy Preferred Vendor appienergy.com ABA Insurance Services Inc. Preferred Vendor abais.com Abaca abacabanc.com

Armstrong Teasdale LLP armstrongteasdale.com

Ag Resource Management armlend.com

Allied Solutions, LLC alliedsolutions.net Ameren Illinois AmerenIllinoisSavings.com Anders CPAs and Advisors cummingscpa.com Angott Search Group asgteam.com

Ascensus Preferred Vendor ascensus.com Association House of Chicago associationhouse.org ATM Solutions Inc. atm-solutions.com Backbase USA inc. backbase.com Baker Hill bakerhill.com

• 34 •

Bancsource bancsource.net

Barack Ferrazzano Kirschbaum & Nagelberg LLP bfkn.com

• May-June 2021

Bedel Security bedelsecurity.com BeeSocial, LLC beesocial.biz

Bankers' Bank Top Tier Sponsor/ Financial Service Industry bankersbankusa.com

Artisan Advisors, LLC artisan-advisors.com

Alkami Technology, Inc. alkami.com All Covered Finance Practice allcovered.com

BankWork$ bankworks.org

Bank Compensation Consulting bcc-usa.com

Approval Payment Solutions Inc. Preferred Vendor il-bankers.com

Abrigo Preferred Vendor abrigo.com

Bancare, Inc. bancare.net

Banker's Healthcare Group, LLC Preferred Vendor bhg-inc.com

BankMarketingCenter.com Preferred Vendor BankMarketingCenter.com BankOnITUSA bankonitusa.com

BankTalentHQ Preferred Vendor banktalenthq.com

Bend Financial bendhsa.com BITS, LLC bits.us bitsIO Inc. bitsioinc.com BKD, LLP bkd.com Blanchard Consulting Group blanchardc.com

BOK Financial Institutions Group Top Tier Sponsor boscinc.com

Cardinal Board Services Preferred Vendor cardinalboardservices.com

We couldn’t provide all of the services, training, products and other opportunities to you without the continued support of these companies.

We encourage you to look to the IBA, Illinois Bankers Business Services (IBBS)

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

Contact the IBA at 217-789-9340 or ilbanker@ilbanker.com for more information. www.ilbanker.com/Resources/Find-A-Vendor

Central Capital Markets centralbank.net

CRA Partners shcpfoundation.org

Executive Benefits Network ebn-design.com

FIS fisglobal.com

Chapman and Cutler LLP chapman.com

CrossCheck Compliance LLC crosscheckcompliance.com

Farmer Mac farmermac.com

Fiserv, Inc. fiserv.com

Charles Vincent George Architects cvgarchitects.com

Crowe LLP crowe.com

Federal Deposit Insurance Corporation fdic.gov/index.html

Chatham Financial chathamfinancial.com

Dama Financial, Inc. DamaFinancial.com

Cinnaire Corporation cinnaire.com Deluxe Preferred Vendor deluxe.com CLA - Oak Brook, Peoria, St. Louis Top Tier Sponsor claconnect.com Comcast Business business.comcast.com Community Investment Corporation cicchicago.com Comptroller of the Currency occ.gov Computer Services, Inc. (CSI) csiweb.com CoNetrix conetrix.com Country Banker Systems, LLC

countrybanker.com

Covington & Burling LLP cov.com

Deluxe Banker's Dashboard Preferred Vendor deluxe.com/business-operations/bankers-dashboard Duncan-Williams, Inc. duncanwilliams.com Elliott Data Systems, Inc. elliottdata.com

EPIC Retirement Plan Services Preferred Vendor epicrps.com

Floodplain Consultants, Inc. Preferred Vendor floodplain.com Federal Home Loan Bank of Chicago Top Tier Sponsor fhlbc.com

Freddie Mac freddiemac.com

Federal Protection Inc. federalprotection.com

GMR gmr1.com

Federal Reserve Bank of Chicago frbservices.org

Godfrey & Kahn, S.C. gklaw.com

Federal Reserve Bank of St. Louis stlouisfed.org FHN Financial fhnfinancial.com Financial Shares Corporation financialshares.com Finastra finastra.com FIPCO fipco.com First Bankers' Banc Securities, Inc. firstbankersbanc.com

Frye-Williamson Press, Inc. fryewilliamson.com

Giffin Winning Cohen & Bodewes PC giffinwinning.com Graduate School of Banking at the University of Wisconsin - Madison gsb.org Green Check Verified greencheckverified.com Greensfelder, Hemker & Gale, P.C. greensfelder.com Grow UP Sales Consulting growupsales.com Haberfeld haberfeld.com

May-June 2021 •

• 35 •

a SHOUT OUT to our Associates!

HC3 hc3.io Heber Fuger Wendin, Investment Advisors heberinvestments.com

Investors Title Insurance Company Preferred Vendor invtitle.com

Hinshaw & Culbertson LLP hinshawlaw.com

Ironcore Inc. ironcore-inc.com

Holland & Knight LLP hklaw.com

Momkus McCluskey Roberts LLC momlaw.com

LKCS Top Tier Sponsor lk-cs.com LRS Web Solutions lrswebsolutions.com Macha macha.org

Holland Partners, Inc. Hovde Group LLC hovdegroup.com Howard & Howard Attorneys PLLC h2law.com

J&P Site Experts jpsiteexperts.com Jack Henry Banking jackhenrybanking.com

Noonan & Lieberman, Ltd. noonanandlieberman.com

Marwedel Minichello & Reeb, P.C. mmr-law.com

Kerber, Eck & Braeckel LLP kebcpa.com

Mathis Marifian & Richter, Ltd. mmrg.com

Illinois Department of Financial & Professional Regulation idfpr.com

Kestner Insurance kestnerinsurance.com

MerchantPro Express merchantproexpress.com

Inlanta Mortgage, Inc. inlanta.com Integrity Technology Solutions integrityts.com

Lewis Rice LLC lewisrice.com

Liquid Capital Preferred Vendor liquidcapitalcorp.com

Mid America Banking Insurance Services, Inc. bankers-ins.com

MIB - Midwest Independent BankersBank Top Tier Sponsor/ Financial Service Industry mibanc.com Mills Marketing millsmarketing.com

Northland Securities NorthlandSecurities.com Oak Ridge Financial Services Group, Inc. oakridgefinancial.com

Office Depot Preferred Vendor business.officedepot.com/ banksignup Olsen Palmer LLC olsenpalmer.com

Onovative onovativebanking.com Paymerang paymerang.com

IntraFi Network IntraFi.com

• 36 •

NewGround newground.com

Market Insights, Inc. formarketinsights.com

HR Source hrsource.org

Illinois Finance Authority idfa.com

Newcleus, LLC newcleus.com

NFP Executive Benefits nfp.com

Keefe, Bruyette & Woods, A Stifel Company kbw.com

KeyState Captive Management Preferred Vendor key-state.com

Neocova neocova.com

Main Street, Inc. mainstreetinc.cotm

Howell Financial Services, Inc. howellfinancialservices.com

Illinois Farm Business Farm Management Association fbfm.org

nCino ncino.com

• May-June 2021

Pehlman & Dold, P.C. p-dcpas.com Pentegra Retirement Services pentegra.com

S&P Global Market Intelligence spglobal.com/ILBankers SB Value Partners, L.P. sbvalue.com

Performance Trust Capital Partners, LLC performancetrust.com Peters & Associates peters.com PG Design + Build pgarch.com

SBS CyberSecurity Preferred Vendor sbscyber.com

Piper Sandler & Co pipersandler.com Plansmith Corporation plansmith.com

Scheffel Boyle scheffelpc.com

Plante Moran banks.plantemoran.com t

Schiff Hardin LLP schiffhardin.com

Profit Resources, Inc. profitresources.com

Schmale Insurance Agency, Inc. schmaleinsurance.com

QSI qsibanking.com Quarles & Brady LLP quarles.com Remedy Consulting remedyconsult.net Rimon, P.C. rimonlaw.com

Rivel Research Group rivel.com/cxlign.php RSM US LLP rsmus.com Ruff, Freud, Breems & Nelson Ltd. RFBNLAW.COM

Verafin verafin.com

Strategic Resource Management Preferred Vendor srmcorp.com

VGM Forbin forbin.com/financial Vining Sparks viningsparks.com

Scantron Technology Solutions scantron.com

PULSE, a Discover Company pulsenetwork.com

Vedder Price P.C. vedderprice.com

Scott & Kraus, LLC skcounsel.com

Shield Compliance shieldbanking.com SmithAmundsen LLC salawus.com

Sullivan Auctioneers, LLC sullivanauctioneers.com

Virtual Innovation, Inc. vi-mw.com

Synchrony Financial Financial Service Industry synchronybank.com

Voluforms voluforms.com

TCA tcaregs.com

Welch Systems, Inc. welchsystems.com

The Kafafian Group, Inc kafafiangroup.com The Redmond Company theredmondco.com Thomson Reuters thomsonreuters.com

Windsor Mortgage Solutions Financial Service Industry mortgageties.com

UFS, LLC Preferred Vendor ufstech.com

SomerCort somercor.com SPARK lendwithspark.com Spry sprybrands.com

Windsor Advantage, LLC Preferred Vendor windsoradvantage.com

United Bankers' Bank Financial Service Industry ubb.com/home Upgrade, Inc. upgrade.com/landing/institutions Vantage Point Solutions vantagepnt.com

Wipfli LLP Top Tier Sponsor wipfli.com WolfPAC Integrated Risk Management wolfpacsolutions.com Wool Capital Partners, LLC woolfinance.com Works24 works24.com

May-June 2021 •

• 37 •

PREFERRED VENDOR

IBA Welcomes Two New Preferred Vendors

By Brian Hoffman, President, Illinois Bankers Business Services, Inc.

Bankers Healthcare Group (BHG) Illinois Bankers Business Services, Inc. (IBBS), the for-profit division of the Illinois Bankers Association, has partnered with BHG, the source of the most innovative financial solutions available on the market today and the creator of the largest community bank loan and product network in the country.

Through this Preferred Vendor partnership, Illinois community banks can access the BHG Loan Hub, a secure, state-of-the-art loan delivery platform and the numberone source for medical and professional loans. IBA members can bid and purchase individual loans on the daily auction or via the BHG Marketplace, purchase custom-built portfolios, or buy into a block purchase with other BHG bank customers. To date, more than 1,200 community banks, including 103 in Illinois, have partnered with BHG to buy loans.

“We’re excited to name BHG as a new Preferred Vendor and help expand their relationships across Illinois,” said Brian Hoffman, President, Illinois Bankers Business Services, Inc. “Since BHG joined the IBA as an Associate Member in 2015, many members have found success partnering with them by diversifying their loan portfolios and doing business with more topcredit high-income professionals, both in and out of their markets.”

“We’re proud to partner with the IBA and support their mission to

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• May-June 2021

ensure the future of banks,” said Al Crawford, Co-Founder, Chairman and CEO of BHG. “We’re looking forward to building on the success we’ve had serving community banks throughout the state, offering a variety of loan purchasing options and additional services to IBA members.”

To learn more about BHG’s financial solutions, visit bankers healthcaregroup.com, and for more information about the BHG Bank Network, visit lp.bhgandbanks.com/ bhg-loan-hub.

Contact: Nellie Andriyanova, nellie@bhg-inc.com, 315-671-4805.

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NEW LOOK, NEW NAME, SAME TRUSTED SERVICE Windsor Advantage

The IBBS Board also has approved an exciting new preferred vendor partnership with Windsor Advantage, LLC to provide banks with a comprehensive outsourced SBA 7(a) and USDA lending platform.

Since 2010, Windsor has processed more than $4.5 billion in government guaranteed loans and currently services a portfolio in excess of $1.8 billion (as of December 31, 2020) for over 90 lenders nationwide. The company is headquartered in Chicago with offices in Indianapolis and Charleston, SC. Windsor is uniquely qualified to assist any size lender with implementing a thoughtful and profitable government guaranteed lending initiative.

“With SBA lending being critically important for community banks and small business customers, Windsor Advantage will allow banks of all sizes to offer SBA 7(a) and USDA loans without hiring staff or incurring any capital expense” expressed Brian Hoffman, President of Illinois Bankers Business Services, Inc. “With clients ranging from $50 million to $30 billion in assets, their staff provides over 150 years of in-house SBA and USDA experience.”

In addition, Windsor Advantage will be partnering with the Illinois Bankers Education Services to provide ongoing training on SBA and USDA programs and products.

Learn more about Windsor Advantage at windsoradvantage.com. Contact: Connor Mulvey, cmulvey@windsor advantage.com, 708-408-1820.

For more information about any of our Preferred Vendors, connect with Brian Hoffman, bhoffman@ilbanker.com, 217-789-9340.

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May-June 2021 •

• 39 •

PREFERRED VENDOR

Windsor Advantage’s Q&A Corner

By Connor Mulvey, Windsor Advantage

1. How can I keep a pulse on my current portfolio to flush out potential holes in a loan file and be prepared for a potential liquidation?

One of the primary mechanisms to ensure a full and compliant loan file, beyond conducting a comprehensive compliance review immediately after inception, is to establish a robust annual review process. This will give the Lender an opportunity to address any outlying concerns including the collection of outstanding insurance and financial ticklers, obtaining missing documentation and addressing issues to establish a remediation plan with the borrower before entering default.

2. What should be done if a borrower requests a loan modification?

Similar to the mindset set forth above, this gives lenders a chance to capitalize on the opportunity to shore up anything within the loan file that may be a cause for concern. This may include but not limited to; the collection of any outstanding items within the loan file, conduct a site visit early and often, run current UCC and/ or property searches, or even pull updated individual credit reports on all guarantors. Always remember to ensure counter consideration anytime the borrower has a relevant request while

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• May-June 2021

SBA Notes of Interest The CARES Act has supported thousands of SBA businesses since 2020 and the payment relief did not come soon enough.

Nonetheless, many SBA borrowers may not survive once the SBA discontinues payment subsidy relief. We have been asked some very good questions relative to handling borrowers in 2021 and working out stressed portfolios. documenting the loan file to the fullest extent.

3. What can I do with a borrower that may struggle post Section 1112 Payments?

For loans that are sold on the Secondary Market, any and all modifications to the repayment terms on the loan will require consent and approval from the secondary market investor through the SBA’s Fiscal Transfer Agent. If a Lender is unable to obtain consent for the proposed modification, the Lender may facilitate repurchase of the guaranteed portion directly from the secondary market investor or request that the SBA conduct an emergency repurchase of the guaranteed portion in order to implement accordingly. In either case, when contemplating a proposed modification to ensure the continued repayment, a Lender must conform to their internal commercial loan policy for similarly sized non-SBA loans within their portfolio.

4. Does the SBA have specific requirements we should know about when we onboard legal counsel for liquidation actions?

Yes. Under Chapter 21 of the Standard Operating Procedures (SOP 50 57 2), there is a list of qualifications for attorneys including: (1) a valid license to practice

law in the state where the litigation will be conducted; (2) expertise in debt collection and bankruptcy law; (3) adequate legal malpractice insurance coverage; and (4) no actual or apparent conflict with the SBA, Lender or person(s) involved in the litigation.

Prior to engaging counsel, the attorney should run a conflict check on the names of the adverse parties, lender and the SBA. A copy of the law firm’s malpractice insurance policy or the declaration page should also be obtained during this time. Not all states require attorneys/law firms to carry malpractice insurance so this is an important step in the process. If you have not worked with the attorney previously then it is recommended to obtain a bio or short statement from the attorney detailing its collection and/or bankruptcy experience.

Windsor Advantage, LLC is the nation’s largest Government Guaranteed SBA and USDA Lender Service provider, based in Chicago with offices in Indianapolis IN, and Charleston, SC. Windsor manages over $1.8 billion in SBA and USDA servicing assets. IBA Preferred Vendor 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

UNIQUE AND MARKET-LEADING INSURANCE SOLUTION FOR FINANCIAL INSTITUTIONS, RECOGNIZED FOR THEIR UNDERWRITING AND CLAIMS EXPERTISE RICHARD FLENNER | RFLENNER@ABAIS.COM REDUCE YOUR ENERGY COSTS THROUGH APPI’S DATA-DRIVEN PROCUREMENT AND CONSULTING SERVICES JAMIE POLEND | JPOLEND@APPIENERGY.COM FASTER AND SIMPLER IRA ADMINISTRATION PROGRAM THAT CATCHES ERRORS AND VERIFIES THE ACCURACY OF TAX REPORTING FORMS MICHAEL BUSH | MICHAEL.BUSH@ASCENSUS.COM BANKERS HEALTHCARE GROUP OFFERS LOAN SOLUTIONS TO TOP-QUALITY BORROWERS, WHICH COMMUNITY AND MIDSIZE BANKS CAN ACCESS VIA THE BHG LOAN HUB. NELLIE ANDRIYANOVA | NELLIE@BHG-INC.COM YOUR JOB IS POSTED ON A COMBINATION OF 7,500 EMPLOYMENT OFFICES, COMMUNITY BASED ORGANIZATIONS, AND OTHER SPECIFIC DIVERSITY HIRING SITES, AS WELL AS 100S OF OTHERS BRIAN HOFFMAN | BHOFFMAN@BANKTALENTHQ.COM ACCELERATE GROWTH, BOOST ROI, AND IMPROVE OPERATIONS WITH TOOLS AND TECHNOLOGY DESIGNED FOR FINANCIAL INSTITUTIONS OF ALL SIZES BOB REID | BOB.REID@DELUXE.COM REDUCE THE RISK AND CERTIFY YOUR LOAN PORTFOLIO AGAINST FLOOD ZONE RISKS CRAIG CALLAHAN | CCALLAHAN@FLOODPLAIN.COM IDENTIFY AND ADDRESS YOUR BANK’S UNFUNDED RISKS IN A TAX ADVANTAGED WAY TRAVIS HOLDMAN | THOLDMAN@KEY-STATE.COM SAVE 20% - 30% BASED ON YOUR CURRENT OFFICE PRODUCT SPEND ISAAC MARES | ISAAC.MARES@OFFICEDEPOT.COM

CAN ADD MILLIONS TO YOUR BOTTOM LINE BY NEGOTIATING AND REVIEWING YOUR KEY CONTRACTS UMA ZIELINSKI | UZIELINSKI@SRMCORP.COM PROVIDES BANKS WITH A COMPREHENSIVE OURSOURCED SBA 7(A) AND USDA LENDING PLATFORM CONNOR MULVEY | CMULVEY@WINDSORADVANTAGE.COM

QUICKLY AND EFFICIENTLY MANAGE PPP LOAN FORGIVENESS; SAVING TIME AND MONEY RENE MORALES | RENE.MORALES@ABRIGO.COM APPROVAL PAYMENT SOLUTIONS ENABLES MERCHANTS TO ACCEPT CREDIT AND DEBIT CARDS, EBT, GIFT CARDS, FUEL CARDS AND CHECKS SAFELY AND EFFICIENTLY DANIELLE LAUSCH | DLAUSCH@APSOLUTIONS.NET ARM YOUR MANAGEMENT TEAM AND STAFF WITH THE DAILY FINANCIAL INFORMATION THEY NEED TO MAKE CRITICAL DECISIONS THAT IMPROVE PERFORMANCE AND PROFITS BOB REID | BOB.REID@DELUXE.COM TAKE CONTROL OF THE MARKETING PRODUCTION PROCESS – ALL FOR A FRACTION OF YOUR CURRENT MARKETING COSTS NEAL REYNOLDS | NREYNOLDS@BANKMARKETINGCENTER.COM DEEPEN YOUR POOL OF POTENTIAL DIRECTORS AND MEET THE NEEDS OF YOUR COMPANY JIM ZUEHLKE | JIMZ@CARDINALBOARDSERVICES.COM CHARLIE ROER | CHARLIER@CARDINALBOARDSERVICES.COM FULL FIDUCIARY PROTECTION, SCALE, AND PURCHASING POWER, WHICH REDUCES THE COST OF ADMINISTRATIVE SERVICES AND INVESTMENTS PATRICK BEARSS | PAT.BEARSS@ABGRPIS.COM PROVIDES STABLE AND PROFITABLE INCOME OPPORTUNITY FOR AFFILIATED AGENCY OWNERS DANA LYONS | DLYONS@INVTITLE.COM ATTRACT AND RETAIN CUSTOMERS WITH DIVERSE FINANCING SOLUTIONS FOR AN ADDITIONAL REVENUE STREAM TOM STAMBORSKI | TSTAMBORSKI@LIQUIDCAPITALCORP.COM ALLEVIATE STRESS AND MITIGATE RISK TO ENSURE THE SAFETY AND SECURITY OF YOUR INSTITUTION DAVID EDWARDS | DAVID.EDWARDS@SBSCYBER.COM FLEXIBLE IT SERVICE PROVIDER THAT ALLOWS THE BANK THE FREEDOM TO DEPLOY TECHNOLOGY BASED ON THEIR UNIQUE STRATEGY TOM SZEWS | TOMS@UFSTECH.COM

CONTACT THE IBA FOR MORE INFORMATION TODAY! BRIAN HOFFMAN, PRESIDENT - ILLINOIS BANKERS BUSINESS SERVICES, INC. E: BHOFFMAN@ILBANKER.COM P: 217.789.9340

May-June 2021 •

• 41 •

WELCOME NEW ASSOCIATE MEMBERS (as of 5-1-20) Fintel Connect Vancouver, BC fintelconnect.com Fintel Connect is a performance marketing company that helps banks acquire net new customers in a results-based way. This means not paying for impressions or clicks with no guarantee of return.

Instead, you only pay once the customer becomes a customer.

We help banks do this through our network of financially-focused digital outlets (websites, blogs) and influencers, which promote their products and services. Our technology provides the tools to track and measure these real customers sign-ups.

HC3 Irondale, AL hc3.io By managing complex data generated from multiple client systems, HC3 helps financial institutions communicate with their customers.

HC3 offers solutions for document redesign, intelligent marketing campaigns, and seamless delivery of printed and digital communications. Through these customerdriven solutions, HC3 empowers financial institutions to give their customers a multi-channel document experience.

Newcleus, LLC Newtown, PA newcleus.com We sell, design and administer compensation, benefit, investment and financing strategies.

Onovative Louisville, KY onovativebanking.com Onovative, an automated marketing and communication software provider, put controls back in the hands of bank marketers.

Onovative’s affordable marketing software for planning, automation

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• May-June 2021

and execution empowers you to manage data for strategizing throughout the consumer lifecycle and engage with consumers through multiple channels. With software that integrates directly with your existing core banking systems, Onovative helps banks drive results by bolstering growth with their current account PG Design + Build Rockford, IL pgarch.com PG Design + Build is an integrated architectural planning, design, and construction company with over thirty years of experience providing building solutions for a wide variety of clients, and offers specialized expertise in financial and healthcare facilities.

QSI Bardstown, KY qsibanking.com QSI provides turnkey delivery of NCR ATM and ITM solutions and is NCR’s largest financial partner in the U.S. We offer remote access services for patch management, anti-virus, and more. Titan Armored offers branch cash and ATM/ITM cash replenishment, among other services. QSI is a fullservice bank equipment company (video, alarm, drive-up, safes). No long-term service contracts. Outsourcing available.

The Redmond Company Waukesha, WI theredmondco.com Redmond has completed 800+ financial projects and offers realestate consulting and brokerage; branch, main-office, and operation-center design; branding; and construction services. Redmond’s history with retailers has resulted in a deep knowledge of retail strategies and consumer-purchasing patterns that are successfully

NEW MEMBER BANKS Wintrust Financial Corporation

• Barrington Bank & Trust Company

• Beverly Bank & Trust Company • Crystal Lake Bank & Trust Company

• Hinsdale Bank & Trust Company

• Lake Forest Bank & Trust Company

• Libertyville Bank & Trust Company

• Northbrook Bank & Trust Company

• Old Plank Trail Community Bank

• Schaumburg Bank & Trust Company

• St. Charles Bank & Trust Company

• State Bank of the Lakes • Town Bank • Village Bank & Trust • Wheaton Bank & Trust (member since 2018)

• Wintrust Bank

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

applied to the financial-facility environment, supporting banks’ vision for growth.

SPARK Minneapolis, MN lendwithspark.com SPARK makes business and commercial loan origination, SBA included, easier, more secure, and efficient for banks and their customers by digitizing the entire origination process. Banks and other regulated institutions have used SPARK to originate $8B+ in loans. During PPP our clients have used SPARK to originate 70,000+ 1st and 2nd draw loans.

THE WINNING MINDSET Dr. Elizabeth Lombardo

LEADERSHIP AND ACCOUNTABILITY WHEN IT MATTERS Commander Kirk S. Lippold

ANNUAL CONFERENCE

2021 RECOVERY - HOW FAR AND HOW FAST? Chris Kuehl, Ph.D.

AUGUST 11 – 14, 2021

FULL DETAILS: www.ilbanker.com

A H Y B R I D E V E N T ST R E A M E D TH R O U G H T H E I L L I N O I S B A N K E R S A P P A N D I N - P E R S O N I N B R A NS O N, M I S S O U R I AT TH E B R A N S O N C O N V E N TIO N C E N TE R .

May-June 2021 •

• 43 •

Promontory Interfinancial Network has a new name...

And our product names have changed, too.

CDARS and ICS deposit solutions are now IntraFi Network Deposits , and ®

®

SM

SM

CDARS and ICS funding solutions are called IntraFi Funding .

SM

IntraFi Network Deposits can help your institution manage its balance sheet and provide its customers with access to millions in FDIC insurance.

And, we still offer our full range of wholesale funding solutions. IntraFi Funding offers flexible funding solutions to help banks of all sizes meet planned or unexpected needs, regardless of their liquidity position.

Same great products.

New names.

IntraFi.com

Use of IntraFi Network Deposits and IntraFi Funding are subject to the terms, conditions, and disclosures set forth in the applicable program agreements, including the IntraFi Participating Institution Agreement. IntraFi, Network Deposits, IntraFi Funding, and the IntraFi logo are service marks, and ICS and CDARS are registered service marks, of IntraFi Network LLC.

• 44 •

• May-June 2021

NEWS & NOTES In Memory Of James William Aldrich James William Aldrich, 80, of Akron, OH, passed away on January 8, 2021. A former IBA Board member, Aldrich began his 47-year career in banking at National City Bank in 1971. In 1985, he and his family moved to Chicago, where he became the CEO of Northwest National Bank, and then the CEO of Lakeshore National Bank.

Finally, in 1996, he became the founder and CEO of Delaware Place Bank, which he ran with his son Theodore, until the bank was sold, and he retired in 2018.

Herbert Conover Snow It is with great sadness that Petefish, Skiles & Co. Bank announces the passing of Herbert C. Snow of Virginia. Snow was a great source of inspiration and encouragement for the bank, Its shareholders, officers and staff. He became a shareholder in March of 1961 at the young age of 19, and he was elected to the Board of Directors in 1975 to replace his father Dr. H.A. Snow who retired from the Board the same day. A long-time Director of the bank, Snow was voted to become Chairman of the Board in 2003, and he retired from the Board on February 15, 2012.

Anthony A. Nichols Anthony A. Nichols, 81, a veteran Chicago banker and leader in its Greek community, died on April 1, 2021. Nichols was president and CEO of Central Savings F.S.B. in the city's Lakeview neighborhood for over 50 years, before retiring in 2017. He was a director of the Illinois Savings and Loan League, Bankers Club of Chicago, and Chicago Association of Financial Institutions. For his work in Lakeview the City of Chicago named the portion of Ashland Avenue in front of Central Savings in his honor.

FDIC Names Johnson to Advisory Committee on Community Banking

The Federal Deposit Insurance Corporation (FDIC) announced nine new members of its Advisory Committee on Community Banking, which shares input with the FDIC on a broad range of community bank policy and regulatory matters. The Advisory Committee is composed of members representing a cross-section of community bankers from around the country. Among the new members is IBA Treasurer Betsy Johnson, President & CEO, Solutions Bank in Forreston.

Raritan State Bank Celebrates 100 Years

Raritan State Bank recently celebrated its 100th Anniversary. Pictured are the IBA's Phil Talley (center) presenting our prestigious Centennial Award to the bank's Angela Pollock and Robert Schleich. Congratulations on this milestone to all of our friends at Raritan State Bank!

Dunker Earns AIFP Designation

Thomas Dunker, Vice President and Senior Wealth Advisor of F&M Investment Services at F&M Bank has been awarded the Accredited Investment Fiduciary Professional® (AIFP®) Designation from the Center for Fiduciary Studies®, the standards-setting body for Fi360, a Broadridge company. The AIFP® Designation signifies specialized knowledge of fiduciary responsibility and the ability to implement policies and procedures that meet a defined standard of care.

May-June 2021 •

• 45 •

EVENTS CALENDAR SEMINARS, CONFERENCES & FORUMS

JUNE

2 Introduction to Commercial Lending 15 Directors’ Symposium 22 Advanced Personal & Business Tax

Return Analysis

28

Senior Retail Forum

CEO Peer Group Forum

13 IBA/ABA Women’s Leadership Symposium

23

Compliance Forum*

*Hybrid (In-Person Center for Banking Excellence, Springfield or Virtual)

ONCOURSE LEARNING WEBINARS

JUNE 1

Onboarding Your New Hire

1

Beneficial Ownership Update: Where Are We Now?

2

2

3

7

Visit www.ilbanker.com/Education-Events/Calendar-of-Events 10

Employment Records and How to Keep Them

10 Three Key Risk Assessments in Your ERM Program: ERM, IT and Internal Controls 10 Spotting Opportunities and Making Referrals

11 The Role of the Information Security Officer

JULY 13

All programs delivered virtually unless otherwise noted.

Online Account Opening UDAAP: Consumer Complaint Monitoring & Avoiding Harm Audit Report Writing How to Craft an Effective Commercial Loan Write-Up

8

New BSA Officer Training

9

Records Management and Retention

9

Excel Explained: Payroll Analysis

16

Loan Documentation for the Agricultural Lender

16

Unclaimed Property Compliance for Financial Institutions

JULY 6

15

20

27

Opening LLC Accounts

29

Masterful Time Management

ABA ONLINE TRAINING COURSES

16

Equipment Lease Financing

17

JUNE

Notary Public

1

Current Matters and Common Questions Impacting the Call Report

18

Back to Basics: The Bank Secrecy Act

22

Lending Regulations: The Basics

23

Top Fifty Most Important Safe Deposit Procedures

23

Quarterly Compliance Briefing: Summer 2021

Regulation CC: Holds

21 FCRA Compliance: E-Oscar and Metro2

17

Alert! Marijuana and Hemp Accounts - Policy, Procedure and CIP Non-Compete Agreements and Restrictive Covenants: Protecting Your Organization

7

Marketing in Banking Bank Lines of Business

Managing Funding, Liquidity, and Capital 14

28

Building Customer Relationships Commercial Lending Introduction to Mortgage Lending Money and Banking

JULY

24

TRID Hot Spots

24

HR Basics for Supervisors

25

Residential Construction Lending

28 Proactive Relationship Customer Service

6 The Banking Industry Consumer Lending 12 19 26

Introduction to Ag Lending General Accounting

Analyzing Financial Statements

Introduction to Trust Products & Services

UPCOMING EVENTS

• 46 •

May 20 Spring Golf Outing St. Clair Country Club Belleville

August 11-14 Annual Conference Branson Convention Center Branson, MO

June 15 Bank Directors’ Symposium (Virtual)

August 25-26 Ag Banking Conference Crowne Plaza Springfield

July 13 IBA/ABA Women’s Leadership Symposium Virtual

October 4 Fall Golf Outing Pekin Country Club Pekin

• May-June 2021

Fall Washington Visit Washington, D.C. Fall Fall Compliance Conference October 7 BankTech Conference Chicago Marriott Southwest at Burr Ridge October 28-29 Women in Banking Conference Crowne Plaza Springfield

November 4 Midwest Bank Leaders Conference Gleacher Center, Chicago December 2 Chicago Area Chapter Holiday Breakfast Chicago Suburbs December 3 Bank Counsel Conference Renaissance Chicago Downtown Hotel, Chicago

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FASTER PAYMENTS

AT THE SPEED OF LIGHT

MIB is proud to be named a participating organization for the Federal Reserve Bank FedNow Pilot program.

We are collaborating with other financial institutions and FinTechs across the country to evaluate emerging faster payment solutions that are cost effective, easy to use and structured to serve the specific needs of your individual bank and the market(s) you serve.

• FedNOW Pilot Participant • RTP Funding Agent • Charter Member of the FPC (Faster Payments Council)

mibanc.com MEMBER FDIC

Working to find faster payment solutions for your bank.

Contact Sheila Noll for details.

573.556.1335