Ohio Bankers League Spring 2011 Magazine by Jeff Vanik

spring 2011 issue

The Official Magazine of the Ohio Bankers League

A Family Banker NEW OBL CHAIRMAN PAUL REED

INSIDE THIS ISSUE

OBL D.C. FLY-IN

IN PICTURES

ASSET, LIABILITY MANAGEMENT IN 2011 PREPARING TOMORROW’S BANKING LEADERS TODAY

Ohio Record spring 2011

spring 2011 issue

Contents A Comprehensive Resource for the Ohio Banking Industry

Other News

Features

4 Chairman’s Corner 8 Random Thoughts 24 The Banker’s Calendar 28 Steps of the

Ohio Bankers Impacting Policy in D.C. D.C. Fly-in Pictures

Innovation, Ideas & Capital 2011 OBL Economic Summit

Preparing Tomorrow’s Banking Leaders Today

A Year of Improving Economic Outlook

Statehouse

30 Window on

Asset, Liability Management in 2011

the Capitol

45 Around the Industry

Asset Liability Management for Thrifts The End of the OTS Interest Rate Risk Model

Working Together Banks Make Progress against Government Price Controls

Title Agency Partnership Ready to Help Boost Bottom Line

To Check or Not to Check Banks’ Use of Credit Checks for Employment Purposes

What are We Going to Do With All of This? Technology in Focus

Ohio Record spring 2011 issue spring 2011 Ohio Record

chairman’s corner By James Thurston, Editor

A Family Banker NEW OBL CHAIRMAN PAUL REED

Family is very important to incoming OBL Chairman Paul Reed. His great grandfather, W. F. Reed, founded Farmer Banks & Savings Company in Pomeroy back in 1904 after his then fiancé Lillian told him she would only consent to marriage if he made something of himself. Then came Theodore T. Reed, Sr., Paul’s grandfather. Theodore T. Reed, Jr., Paul’s father, was next. Now Paul follows in their footsteps. Ohio Record recently sat down with Paul to get his thoughts on family, current legislative issues, the future of the industry, as well as his priorities for the coming year.

Tell us a little bit about yourself? How did you become a banker?

For several generations banking has been a family business so I was always interested in becoming a banker. When I started college that curiosity grew into a formal education which I thought would land me a high paying entry level officer position with the bank. Well…I was wrong as my father had other plans. I took my college educated mind and sat in a bookkeeping vault filing checks in alphabetical order for slightly more than minimum wage. In hindsight I realize that my father’s approach to learning banking was much better than a professor’s. It was a great experience to grow from bookkeeper to teller to CFO to finally CEO. Family is obviously very important to you. How does this carry over into the bank?

I have often said that a corporation will usually reflect the personality of the CEO. Since family is so important to me that influences a lot of my decisions as they may relate to the employees. And, I must add…it is rewarding to have a board with similar beliefs. We still pay 100 percent of

Ohio Record spring 2011

Paul and wife Laurie, an interior decorator

Paul and Farmers AVP Edna Weber talk business

Pomeroy, with Farmers’ current headquarters pictured center, is a picturesque town on the Ohio River

the employees’ health care premium; we offer great benefit and retirement plans and encourage our employees to take the time necessary to be involved with their kids. Whether it’s going to Christmas plays at school or summer little league games our employees know they can count on us to give them the freedom to miss a little bit of their work day. Is it costly? Perhaps. Is it worth it? Absolutely, especially when you hear an employee tell a customer how great it is to work at Farmers Bank. How did you first become involved with the OBL?

My first involvement, other than training courses and the Group 7 parties, ahem,

meetings in Marietta, was serving on the old OBA Services Corp. Board in the early 1990s. I knew then that this was an organization I wanted to be a part of for as long as they would have me. It was during this time that I first met some truly outstanding bankers and probably, no not probably… definitely got more from being with them than they got from being with me. In your view, what is the role of the OBL and the person who leads it?

I think the OBL is the strongest voice our industry has in our state for the political and legislative process. It is also a positive source of information and educational programs for community banks to meet the

challenges of today. As the chairman my role is to make certain the OBL stays focused on the issues important to every day bankers. What do you hope to bring to the association during your time as chairman? What are your goals for 2011?

My hope is to continue the vision of excellence that so many of the past OBL chairmen have been able to create. As vicechairman and now chairman I have had the privilege to interact with the leaders of other state associations and have witnessed firsthand the level of respect the OBL has nationally. Their collective contributions have helped to create this reputation and

spring 2011 Ohio Record

chairman’s corner my hope is to maintain the excellence of the past while building for the future. As for my goals for 2011? I have several…First, with the passage of the Dodd – Frank Bill we know there are at least 300 new regulations to deal with so we need to work to make sure they are fair to Ohio banks and our customers. Secondly, with the retirement of Mike Van Buskirk scheduled for 2013 the board will start working this year to identify the qualifications required for his successor. Thirdly, we need to remain focused on the overall value we are bringing our members and make sure we are providing the solutions they need. Economists are predicting the economy could pick up this year. How well do you think our banks and thrifts are positioned to take advantage of the recovery?

In my discussions with bankers across our state I’m hearing the consistent message that we’re all holding excess cash that we’re anxious to put to work. As bankers, we are tired of being on the sidelines and are ready to get back into the game. We know what it takes to help our communities grow and hope the regulators and elected officials will cooperate with our ambition. I know some of our peers are dealing with some asset quality issues but by and large I think our industry is ready to invest in business and we should do quite well.

The view from Paul’s office

Ohio Record spring 2011

You are involved with some of the OBL’s key product offerings like the Ohio Bankers Benefits Trust, as a trustee, and Infinex Investments, as a customer. What would you say to a community bank that is considering using one of the OBL’s products or services?

Don’t hesitate to talk to OBL BankServices Director Mike Baker, or Gary (Sutter – Employee Benefits Manager) or Michelle (Crume – Infinex Investments Regional Director). The OBL has a whole range of products and services specifically designed to help the bottom lines of community banks. The great thing about the health trust, for example, is that it’s managed by a group of our peers and is based on a value-based model instead of a profit-based model. It really is the perfect example of a co-op; working together to increase benefits for OBL members which is what OBL BankServices was set up for. What role has professional development and training played in your career?

Remember my comments about starting my banking career by filing checks. Well, if it weren’t for the education I received from the OBL I may still be there. Within two years of starting at the bank I enrolled in the OBL’s School of Banking at Ohio University. I remember my project between sessions well. I wrote the bank’s

first Asset/Liability Management Policy. Not only did it meet the requirements of the school it was also approved by our board of directors. To make sure it was implemented they appointed me the bank’s controller and assigned the implementation to me. I finally made it to the entry level officer position thanks to the OBL training program. What do people say you do best?

People tell me I always find the positive in any given situation and am a good consensus builder. I have also been lucky enough to surround myself with good people who give me the flexibility to be involved in organizations outside of the bank, like the OBL. Is there anything else you would like to add?

I would like to thank all the bankers who have made this journey with me through the years, and hope that I can capably lead you through what I hope is another better year in 2011. I would also like to express my gratitude to the great board of directors I have here in Pomeroy – they value my involvement with the OBL and have kindly allowed me to spend the year leading this great organization.

May 10 & 11 CEO Symposium to Provide Tools, Strategies 4249 Easton Way, Suite 150 Columbus, Ohio 43219-6170 Tel. (614) 340-7595 Fax (614) 340-7596 Toll Free 800-686-6755 James Thurston, Editor Susan Poling, Features Association Staff Michael Adelman Vice President of State Government Relations madelman@ohiobankersleague.com Brenda Arnold, Administrative Assistant OBL BankServices barnold@ohiobankersleague.com Mike Baker, VP & Executive Director, OBL BankServices mbaker@ohiobankersleague.com Dan Conklin, Registrar dconklin@ohiobankersleague.com Michelle Crume, Vice President & Regional Director OBL/Infinex Partnership mcrume@ohiobankersleague.com Pam Foster, Compliance Consultant pfoster@ohiobankersleague.com

Keynote luncheons open and close program – spouse rate available The 2011 CEO Symposium, held at the Hilton Columbus at Easton, will help you find useful tools and provide insights as participants hear from top regulatory officials and financial experts. Keynote luncheon presentations will open and close the program – and for the first time – a spouse rate is available. Gus Whalen, the CEO of the 125-year old Warren Featherbone Company, will provide a message of transforming companies, products and cultures in the face of insurmountable odds, while The Ohio State University President Gordon Gee will close the agenda with a look at Growth in the Modern Economy as he discusses the power of joining together in common purpose to achieve uncommon results. The traditional Regulatory Panel Discussion will be held and a new panel featuring Innovative Ideas Ahead: Generating Non-Interest Income will appeal to all. Contact Susan Poling at 614-340-7611 with questions. Thank you to our CEO Symposium sponsors: OBL BankServices; BKD LLP; Banc Consulting Partners; Gardiner Allen DeRoberts; Keefe, Bruyette & Woods; Ohio Capital Corporation for Housing; Plante Moran; Young & Associates, Inc.

Carol Halkias, Accounting chalkias@ohiobankersleague.com Wendy Hench, Administrator Ohio Bankers Benefits Trust whench@ohiobankersleague.com Julie Kiplinger, Manager of Professional Seminars & In-Bank Training jkiplinger@ohiobankersleague.com Sue Leppert, Administrative Assistant sleppert@ohiobankersleague.com Lynn Moore, Accounting Coordinator, OBL BankServices Compliance Coordinator, OBL Compliance Services lmoore@ohiobankersleague.com Susan Poling, Education Manager spoling@ohiobankersleague.com Jeff Quayle, SVP & General Counsel jquayle@ohiobankersleague.com Joe Rosato, Government Relations Coordinator jrosato@ohiobankersleague.com Bill Showalter, OBL Compliance Services wshowalter@ohiobankersleague.com Gary Sutter, Employee Benefits Manager, OBL BankServices gsutter@ohiobankersleague.com James Thurston, Communications Manager jthurston@ohiobankersleague.com Mike Van Buskirk, President & CEO mvanbuskirk@ohiobankersleague.com Melea Wachtman, Senior Vice President of Administration mwachtman@ohiobankersleague.com The Ohio Record is published quarterly by OBL BankServices. Member subscriptions may be purchased for $25 per year; Non-member subscriptions may be purchased for $50 per year. POSTMASTER: Send address changes to Ohio Record at the address listed above.

SEPT. 11 – 16 OBL TRAINING CENTER

2011 OBL Bank Management School One hundred percent of the 2010 Bank Management School graduates would recommend this school to a friend or colleague, which should come as no surprise – as it met the expectations of 100 percent of the students. 2011 will be equally valuable, as faculty instructors represent former and current senior banking executives, distinguished academicians and highly regarded industry consultants. An intensive week of comprehensive learning, the School features a Bank Executive Simulation, led by independent senior banking consultant Bill Campbell, and will be held at the OBL Training Center. Give your banker a competitive edge for your institution as he or she receives: • An enhanced understanding of the financial services industry and the interrelationships of each banking function; • An opportunity to better serve both customers and the bank through expanded knowledge and ability; • An opportunity to improve leadership and effectiveness; • The necessary skills to improve bank productivity, profitability and competitiveness; and • A statewide peer network of financial industry professionals. A class roster is now open or online registration is available. Contact Susan Poling at 614-340-7611 with questions.

spring 2011 Ohio Record

random thoughts How to Win with People Given his high technology genesis, it was a bit ironic that Governor Kasich’s new dollar a year Development Director battled a balking wireless microphone when he spoke at OBL’s economic summit in February. He shared with the assembled bankers, small business executives, and state legislators his vision for getting state government to move “at the speed of business”. He talked about developing plans to better align the state’s tools with its banking industries efforts to help business preserve and expand Ohio jobs. His message spoke to a central concern of his audience. Nevertheless, this column will say nothing about it. Rather I write about why his personal upbringing is relevant to both Ohio banks and Ohio’s colleges. Mark Kvamme’s father was one of the early leaders of National Semi-conductor so he grew up in Silicon Valley. He went to school at nearby Berkley then came home to start his career. He first worked for Apple. Today he is a partner at Sequoia Capital and played a role in the start up financing of a number of “tiny” companies like Google. This California bred “talent” stayed in California. His work has contributed to billions of dollars of business revenue and thousands of California jobs. I know I date myself using a Woody Hayes story. If you are old enough you may remember that Woody wrote a popular book titled You Win with People. A common element for a winning football team, any very successful bank, or any business for that matter, is talented people. Kvamme grew up in California and attended a great university. His talent and that great education stayed in California. Some of his business associates in California came from Ohio and graduated from one of our universities. Higher education is a great strength of Ohio. Students from around the world come here. Unfortunately, many of the brightest then leave with their degree or degrees in hand. An important factor in the erosion of Ohio’s international competitiveness is the exodus of many of our talented sons and daughters. Large corporations usually have

Ohio Record spring 2011

sophisticated recruiting operations identifying talented young people in college and recruiting them. Most community banks though cannot afford that kind of focus. While some work with colleges in their markets, most wait for job applicants to respond to an ad (or they hire them away from another Ohio bank). Trying to pick a winner based on an interview and college grades is pretty tough. Everyone works to present a winning image in an interview. Intelligence is an important factor, but grades are not a complete measure. Intangibles will define the most talented. It takes a complete human being to function as a great bank officer. The cover story in a recent edition of The Economist shows a violin created by what is called additive manufacturing. Essentially, the idea is to print 3D components. The concept is not unlike your computer printer but the “ink” can be plastic, metal, or almost any material. The printed violin can be played. The article suggests the sound quality is excellent. One of the company’s mentioned in the article is Cincinnati’s Morris Technologies. Morris has created a subsidiary which it believes will be able to go from design to actual manufacturing in hours rather than the weeks traditional processes usually take. Moreover, its printers can work 24 hours a day unattended. This infant technology has the ability to produce components on sight, on demand, and to eliminate wasted material. It could eliminate the need for inventory or shipping of components to the assembly site. It will revolutionize manufacturing. It could revolutionize employment in Ohio. Do you have loan officers ready to evaluate and assist radically new types of business? Can you help your existing customers become world class competitors? Do you know how you will find the future Mark Kvamme for your bank? I do understand the practical challenge of gearing up to recruit on college campuses; but not trying to identify and recruit tomorrow’s stars will limit your bank’s potential to maximize success. And letting too many of our brightest young people leave Ohio clearly harms our state’s future.

Michael M. Van Buskirk President & CEO

We have an idea for one tool that could open a window into the talent on our college campuses to you - a college internship program. I’ll admit there are a lot of good reasons not to have an internship program. It’s not easy operating on your own to identify the best college student prospects. Developing an internship that will be meaningful for the student and supportable for the bank can be a difficult task. Internships require you to commit time from your staff that doesn’t have enough time now. Nevertheless, a well thought out internship allows a bank to evaluate potential prospects in a real work environment as a member of your term. They also can help to convince the exceptional student that being a banker in your bank should be their career. My experience suggests someone you thoughtfully evaluate in an internship program has a much higher chance of success in your bank than anyone recruited through more traditional processes. And that former intern comes to the job with a head start toward being fully productive. OBL has been talking to several Ohio universities and we’re developing ideas on how to make a bank internship program work effectively and efficiently. The partnering university will help you identify potential talent. OBL, with the university, and under your direction can develop a turnkey prototype program for you. It’s not effortless. You will still have to run it. To do that well will take some time of some of your better staff to work with the student so they can judge his or her potential for your bank. We think though that is an investment that over time will pay you an impressive dividend. Mike Adelman has been heading up an OBL staff team working to come up with a template that makes the process easier and more likely to be successful. We’re looking for a few banks willing to be guinea pigs to test and perfect our models. Contact him at (614) 340-7616 if this is of interest. Being first in itself is no reward; but early development of a program to find your future stars could be.

spring 2011 Ohio Record

Ohio Bankers Impacting Policy in D.C. A delegation of more than 40 Ohio bankers went to Washington D.C. last month to work with the Ohio Congressional delegation and our regulators on key issues facing banking. “The group was able to have a positive impact on political outcomes this year,” said OBL President Mike Van Buskirk. “With the economy in the doldrums for the past two years and the banking industry in the spotlight it has been difficult for policymakers to focus on our perspective and our issues. This year was different. There is now a better appreciation in Congress for the role banks can play in the economic recovery and more concern over the costs of over-regulation.” The battle over government price fixing and interchange fees was the focus of our discussions. One interesting aspect of being in Washington this spring was seeing the credit unions also working on this issue and making some of the same arguments as community banks. Other issues that were covered during our several meetings with the Ohio Congressional delegation included our continuing concern regarding the credit union proposal to expand commercial lending authority. The need for additional capital was certainly on bankers’ minds, as well as the SEC compliance costs for becoming a public company. In several meetings we urged members of Congress to raise the current threshold of 500 shareholders to a level that better reflects the realities of today’s capital markets. With all of the regulators, we continued to raise concerns over continuing disagreements regarding loan classifications and loan loss reserves. With the FDIC, among other issues Ohio bankers raised the issue of rebating a portion of prepaid deposit insurance premiums, especially for those banks that will see premiums reduced later this year. Finally, it was especially gratifying to see the OCC go public, expressing some of the same concerns and reservations regarding the FRB’s interchange proposal shortly after our meeting. Jeff Quayle OBL Senior Vice President & General Counsel

The OBL Fly-in also met with Congressman Bob Latta (front row, second left)

KeyCorp’s Christopher Pugliese talks interchange with Senator Sherrod Brown

Ohio Record spring 2011

IN PICTURES

Fahey Bank’s Carl Hughes, Congresswoman Marcy Kaptur, First Federal S & L of Lorain’s Mike Brosky and KeyCorp’s Christopher Pugliese

Fahey Bank Chief Carl Hughes and Congressman Jim Jordan

Ohio bankers meet with Congressman Steve Stivers (at head of table)

FDIC Vice Chairman Martin Gruenberg and OBL Chairman Paul Reed brief bankers

Consumer Financial Protection Bureau Enforcement Chief Rich Cordray and First Federal Community Bank’s Trent Troyer spring 2011 Ohio Record

Innovation, Ideas & Capital 2011 OBL Economic Summit “It’s a light at the end of a tunnel, not the headlight of an oncoming freight train.” That was the message more than 200 bankers, small business executives, and state legislators heard Feb. 15 at the 2011 OBL Economic Summit from Dr. Mark Schweitzer, director of research at the Federal Reserve Bank of Cleveland. Paul Thompson, president & CEO of First Federal of Newark, noted, “The Summit was an extremely worthwhile event on multiple fronts. It provides a unique opportunity for us to take customers to a high quality program, while interacting with our legislators.” Thompson, who brought two bank clients to the event, said both customers also found the event to be very valuable to them. Steve Layman – a realtor with Anderson Layman Company who also chairs the local port authority board – said, “The information shared was timely, very interesting and extremely useful for what I do. I would easily make time to attend again.” Pat Guanciale, current chair of the Licking County Chamber of Commerce and Coldwell Banker King Thompson Realtor, took the initiative to reach out to Schweitzer post-event and included some of the presentation details via his blog. He wrote, “Attending the luncheon and listening to the extensive program was very interesting and the highlight of my week.” He further noted that “Often during the past three years of our current recession I am asked to compare today to the last major recession. People look at me funny when I respond with that it was harder the last time around.” However, statistics from the Fed confirm that in 1980 and 1981, Ohio held 22 percent of the nation’s payroll employment losses. In this cycle, Ohio holds just 5 percent of the losses. Schweitzer also forecasted a “moderate” recovery for Ohio during 2011 and only modest inflationary pressures. He pointed to increasing Ohio business profit, particularly those firms engaging in exports and increasing commercial loan demand; and also outlined two drags on the Ohio recovery: housing and unemployment. Schweitzer contended that the housing market has bottomed out although he does not believe it will recover quickly. Attendees received a welcoming message from David Goodman, Director of the Ohio Department of Commerce, and a keynote address from Mark Kvamme, the Director of the Ohio Department of Development. Kvamme, a partner in a Silicon Valley venture capital firm, noted that innovation, ideas and capital are the three keys to jump-starting the job market in Ohio. Raised in northern California and a graduate of UC Berkley, the new director has no Ohio roots. His charge is to convert the state bureaucracy into a nimble non-profit foundation – JobsOhio. His message focused on Ohio job creation and predicted the program will be in operation by fall. Al Dettwiller, owner of Dettwiller Lumber Company in Pomeroy, told his banker Paul Reed, president & CEO of Farmers Bank and Savings Company, on their drive to Columbus, “In order for me to survive the changes in the economy, I had to become tougher. I had to become a better businessman.” Kvamme asked bankers in attendance to help small business owners like Dettwiller by removing hurdles and encouraged all to keep the state informed about companies so that the State can honor every opportunity that is out there. “You are on the front line,” Kvamme noted. “We need to be able to move at the speed of business and have a laser focus on economic growth.”

Ohio Record spring 2011

Susan Poling OBL Education Manager

More than 220 bankers, legislators and small business owners attend the second annual event. The 2012 Summit will be held on Feb. 15 at The Renaissance.

P.M. Jones, Western Reserve Bank with his guest, Michael Baach, president of The Philpott Rubber Co. in Brunswick, Ohio

Court Haning, president & CEO of The Peoples National Bank of New Lexington, makes use of pre-program time for networking

OBL’s Mike Adelman joins Ohio Department of Development leaders Karen Shauri, Glenn Van Valkenburgh and new head of Ohio Department of Financial Institutions Chuck Dolezal

Mike Van Buskirk with First State Bank’s President & CEO Mike Pell and HR Director Jo Hanson

OBL Chairman Paul Reed joins bank board members David Weber, owner of D.V. Weber Construction, and Tom Karr, owner of Karr Contracting

The Arlington Bank’s Eric Colombo and Commerce National Bank CEO Jennifer Griffith

spring 2011 Ohio Record

Ed McKeon, Western Reserve Bank with Colin and Howard Boyle of Home Savings Bank

Director of Commerce David Goodman with Ernie Cade of Strategic Government Initiatives

Preparing Tomorrow’s Banking Leaders Today Students from Eastern, Meigs and Southern High Schools Get a Leg Up in Business from OBL Member Bank

James Thurston Editor

The class of 2011

Ohio Record spring 2011

When new OBL Chairman Paul Reed’s son Ben was just six years old, he announced his intention to one day be president of Farmers Bank and Savings Company in Pomeroy. “What do you need to do to make president, Dad?” he asked. “Well, you have to go to a good school, get a finance related degree, but ultimately the decision is made by the chairman and the board of directors,” his father advised. A week later, Paul walked into the bank lobby to find young Ben staring up at a picture on the wall. What was on that picture? The bank’s board of directors. He was counting votes. Ten years later and Ben, now a junior at Meigs high school, has finally made it onto the bank’s board of directors. The junior board, that is. Reed senior noticed the success that other OBL members had when they invited local high school students into the bank to form a junior board of directors – a panel that shadowed the main bank’s main board in its decision making process and administrative functions. While it was clear that the students found real value in learning about the business of banking, Reed thought that the students could learn more if the program was expanded to focus on business and commerce on a more general level. “It bothered me that kids could go from kindergarten to high school without even learning to balance a check book,” he commented. “I had never heard a kid say, ‘I want to run my own business.’” So he gathered his senior management and designed a program where a group of local high school students would actually form their own virtual corporation, assigning a CEO, CFO and other corporate roles and run the business during the year they sat on the board. “Instead of a bank simulation, it would be a business simulation,” said Reed.

At the end meeting, R of each staff critiq eed and his u board’s p e the junior erformanc e

ard The junior bo ch a e ce n o ts mee red tu ic month – p h ig H s are Meig n ve te S s l’ Schoo ern st a Mahr and E s l’ o High Scho s Baylee Collin olter H and Brenna

The students, who had to meet certain academic criteria to participate, were given a budget and had to come up with a product and a business plan while grappling with labor issues, how much to spend on marketing and other everyday challenges that small businesses face. The board met for an hour each month over lunch. At the end of each session Reed and his senior staff critique the students’ decisions and discuss what they could have done differently. The group also visited the Statehouse, where they met with Department of Development and administration officials to find out how state programs could help their businesses to grow. Now in its second year, the junior board has grown from an initial 13 students to 24 in 2011. “We just felt there was something we could give back to the kids and they have really taken to it,” added Reed. A second class of students from the three local high schools began their tenure on the board in November and promptly decided to focus on a retail business selling footwear. Apart from business fundamentals, the students also learned the value of teamwork. Ben Reed, the company’s treasurer when Ohio Record visited a board session in February, commented, “I have learned a lot since we started. Before, I thought that Dad made all the decisions in running his business (the bank) but now I realize that to be successful the whole team has to play a part.” “Throughout the process we learned that teamwork and ingenuity are fundamental parts of running a successful business,” added Steven Mahr, a junior at Meigs High School.

Meigs High School students Blake Crow Ben Reed and Stev , en Mahr discuss mark eting with bankers Shaw n Arnott, Brian Howa rd and Erin Krawsczy n

Eastern Hig Kristin Fick h School’s , and Janae Baylee Collins Boyles

spring 2011 Ohio Record

School’s Ben Meigs High ke Crow Reed and Bla

Money management is also a big part of the curriculum. Meigs High School junior Kassandra Mullins pointed out, “I learned how important it is to think very carefully about financial decisions and how they will affect things moving forward.” Many banks have seen the value of a junior board of directors – it is a great way to encourage students to be more financially responsible and ready them for a career in business. If the time is right, consider forming a junior board at your institution and help prepare tomorrow’s leaders, today.

Ohio Record spring 2011

Meigs Hig Jennifer R h School’s o Alison Bro binson, Kassandrawn and Mullins

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A Year of Improving Economic Outlook Asset, Liability Management in 2011 Jim Clarke Clarke Consulting

Ohio Record spring 2011

The community banking industry has faced three difficult years. The problems have varied among institutions many facing serious asset quality problems, but overall profitability declined as loan loss provisions have taken their toll on income statements. Hopefully your bank has weathered the storm avoiding serious investment losses and problem loans. Unfortunately few community banks have avoided all of these problems. At the close of 2010 the banking industry has experienced the failure of more than 300 banks since 2008, and sadly many of these are community banks under $1 billion. The 2008 to 2010 credit crisis was the most severe in twenty years. The initial problem was subprime lending which had little impact on community banks, but initiated the financial crisis. In 2008 loan problems extended to construction lending which had an impact on many community banks. In the last two years commercial real loans and prime mortgage loans have taken center stage. The problems in commercial real estate lending are tied to vacancies and commercial vacancies correlate to economic growth. If the U.S. achieves solid economic growth in 2011 we should begin to see a decline in commercial real estate problems. Residential mortgage loan problems are tied to the high unemployment rate. Stronger economic growth should also reverse trends in residential loan portfolios by lowering the unemployment rate. The good news in 2009 and 2010 was the level of short-term interest rates. The historically low rates have played havoc with asset yields, but the decline in the cost of funds has more than compensated improving net interest margins for many institutions. As we enter 2011 we have probably seen the bottom of deposit pricing; therefore the cost of funds has also bottomed out for most community banks. At issue is the success of QE2, the Fedâ&#x20AC;&#x2122;s effort to lower longer term rates. Up to year end this policy has not been successful as the 10 year Treasury has moved above 3 percent. As we look to 2011 there are some bright spots, but be cautious as the economy in many parts of the country remains fragile particularly in the Midwest, the West Coast, and the Southeast. Fourth quarter income and spending data were encouraging. Personal income increased at a higher rate in the 4th quarter and consumer spending also increased - retail sales over the holiday were very encouraging and hopefully the pace will be sustained in 2011. The consumer is critical for a strong economic recovery. Business invest-

ment has been robust through much of 2010 as has exports, both bolstering economic growth. The Federal government has contributed with trillion dollar deficits, but unfortunately state and local governments have contracted spending. The 4th quarter of 2010 has provided many positive signs that the economy is expanding and will continue to grow at a more robust pace through 2011. Most economic forecasters increased their GDP projections for 2011 during the 4th quarter moving the consensus forecast to 3 percent. These positive indicators of recovery are encouraging suggesting after three depressing years there is light at the end of the tunnel. Bankers should be more optimistic entering 2011, but also cautious given some of the less rosy data. As noted above the key to economic growth lies with the consumer; consumption accounts for 67 to 70 percent of GDP. The fourth quarter of 2010 provided a number of positive signs, but keep in mind much of the retail sales data reflected seasonality, specifically Christmas and holiday spending. Can this be sustained at a more normal level that will support overall economic growth? There are four indicators to focus on during the1st quarter of 2011: Consumer confidence, unemployment, oil prices, and housing. Consumer confidence was in the doldrums through the first two quarters of 2010, but gradually increased later in the year, but the December Consumer Confidence Index dropped. It appears consumers are less confident about the current economy and future opportunities. This is a serious concern. A major factor playing on the mind of consumers is the labor market. People are worried about the prospects for employment growth and the growth in their own income in 2011. A glaring statistic hits the front page the first Friday of each month the unemployment rate. Unfortunately this has become the bell weather for all economic data. As we close 2010 the rate of unemployment sits at 9.4 percent - the rate dropped .4 percentage points in December, but be careful part of this good

Regional Directors Workshops APRIL 26 SHARONVILLE CONVENTION CENTER, CINCINNATI APRIL 27 OBL TRAINING CENTER, COLUMBUS APRIL 28 FINDLAY INN & CONFERENCE CENTER, FINDLAY Jim Clarke returns to present these well-received annual programs across the state. The 2011 focus on Bank Performance & Risk Management in a New Environment: Boards Need to Reassess Their Operating Model will assist inside and outside directors, as well as CEOs, board counsel and advisors, and senior managers. Previous attendees note Jim’s presentation style excellent and subject matter relevant, as he possesses “very good knowledge of subject areas, as well as historical and current market environment and regulatory environment.” Contact Julie Kiplinger at (614) 340-7612 with questions.

news is tied to individuals leaving the labor force. In 2010 the economy produced close to one million jobs, but the unemployment rate remained above 9 percent. In order for the rate to decline the economy needs to sustain growth above 3 percent, but even at a 3.5 percent growth rate the unemployment rate will be above 8 percent at the end of 2011. The major factor weighing down economic growth is the housing market. The housing market turned particularly sour after the end of Federal tax subsidies in the 3rd quarter. Housing inventory is high in many regions of the country. To add to the problem foreclosures are increasing inventory. The 4th quarter S&P/Case-Shiller statistics only added to the uncertainty as housing prices fell in many parts of the country. Foreclosures are likely to continue at an alarming pace in 2011 and the residential construction industry remains weak. Economic indicators are signally mixed prospects for 2011. What do the interest rate forecasts tell us about prospects for 2011? Based on the economic forecasts above it is highly likely the Fed funds rate will remain at 25 basis points through 2011. Obviously if commodity prices continue to rise and inflation begins to surface

in retail prices or the economy grows at a higher rate this could change, but with excess industrial capacity and an unemployment rate above 9 percent I would plan for no Fed action until 2012. The longer end of the curve is more problematic. In November the Fed initiated QE2 and we were lead to believe the 10 year Treasury note would decline to 2.25 percent bringing the 30 year mortgage loan below 4 percent. But the opposite has occurred, the 10 year Treasury move above 3.5 percent and the 30 year mortgage rate is approaching 5 percent. The unexpected result is clearly a function of sellers overwhelming the Fed’s purchasing program. It is difficult to precisely forecast the eventual path of long-term Treasury rates through 2011, but we should learn from recent events. Buyers of the 10 ten year Treasury are not going to accept a 2.25 percent rate given inflation expectations. I believe the 10 year will remain close to 3 percent through the first two quarters of 2011 and the curve will gradually steepen in the second half of 2011. Given this scenario what strategies should your ALCO consider pursuing in 2011? Based on the interest rate forecast the general approach to balance sheet management would be to maintain shorter spring 2011 Ohio Record

asset duration and attempt to lengthen liability duration. Asset management for most banks is ultimately dependent on loan demand which will not likely be robust in the first half of 2011, but gradually pick up speed in the second half. Unfortunately those banks relying on residential mortgage lending may be in for a disappointing year as refinancing will slow dramatically. The investment portfolio will continue to be the primary option for cash; that is until loan demand increases. Investment management will be a greater challenge if the yield curve steepens as bankers may be tempted to extend duration. I would caution bankers to continue to ladder investments out three years – take whatever spread is available and watch for rates to increase. Some experts continue to refer to the “new normal”; that is market interest rates could remain low for years – forget the “new normal”, watch the price of oil and other commodity prices – rates will rise as they always have likely in early 2012. Liability management will be relatively easy through much of 2011; although deposit inflows will likely slow in 2011. As noted above deposits pricing has bottomed out, but banks should continue to selectively lower deposit rates even to the point of risking deposit outflows. Liability sensitive thrifts should consider extending liability duration; although this will require Federal Home Loan Bank advances or other borrowing. Liability management will become a challenge once short-term interest rates begin to increase. In conclusion, 2011 is likely to be another challenging year for balance sheet managers. I would continue to recommend Aristotle advice, “everything in moderation” or don’t bet the bank on any forecast. Economic recovery should be sufficient to stabilize credit quality thereby reducing the need for higher loan loss provisions while a stable Fed funds rate will guarantee lower funding costs and bolster profitability. Happy New Year and welcome to 2011. Jim Clarke, Ph.D., Clarke Consulting, Villanova, Pennsylvania Dr Clarke is a consultant to banks on ALM and strategic issues. Jim can be reached at JJClarke2@aol.com for questions and comments.

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The Tradition Continues ... Mark your calendar and plan to join us in Baltimore next fall.

O B L / I L F I J o i n t C o nve n t i o n Sept ember 8-11, 2011 H ya t t Re g e n c y B a l t i m o r e o n t h e I n n e r H a r b o r spring 2011 Ohio Record

Asset Liability Management for Thrifts The End of the OTS Interest Rate Risk Model

Todd Taylor Managing Director Taylor Advisors, Inc.

In just a few short months, the regulatory environment for thrifts will change drastically when the consolidation of their primary regulator, the Office of Thrift Supervision, begins, and they go under the watch of several other government agencies. This change is a result of the Dodd-Frank Act, which Congress passed in July 2010 as a part of its financial regulatory reform efforts. The act will go into effect in July 2011, and the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and The Federal Reserve will be the new thrift supervisors. Although thrifts have had time to digest the fact that they will soon be supervised by a new regulator, many might not have given sufficient consideration to the significant changes that will result in areas such as interest rate risk management. We see two major issues that thrifts could soon face: the first is complying with new interest rate risk regulations and the second is having the necessary tools and expertise to revamp the institution’s ALCO process. The objectives of this article are first to briefly review the current state of the thrift industry, and then to discuss how the changes may affect interest rate risk management requirements, particularly Thrift Bulletin 13a.

Current State of the OTS As a result of the Dodd-Frank Act, the OTS will be consolidated and several different organizations will take on its role. Foremost among them is the Office of the Comptroller of the Currency, which will now be responsible for overseeing thrifts with federal charters (approximately 670 of the nation’s 750 thrifts). Also assuming the OTS’s former responsibilities will be the FDIC, which will administer state chartered thrifts, and the Federal Reserve, which will administer thrift holding companies and mutual holding companies. It can be argued as to whether the OTS and the OCC are merging or whether the OCC is effectively acquiring the OTS. OTS employees will be trained to examine banks and OCC employees will be trained to examine thrifts. However, some industry experts view this as an acquisition that will result in significant changes to the thrift industry. Because the OCC is currently the chief regulator of nationally chartered banks, and will now be

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responsible for overseeing the majority of the existing thrifts, differences between banks and thrifts may begin to blur. A likely consequence is that the OCC will treat thrifts in a similar manner to the way they treat banks, which includes regulatory expectations.

Impact of Dodd-Frank Act on Regulatory Compliance The Dodd-Frank Act has brought uncertainty as to what reporting and regulatory requirements thrifts will be expected to follow once they are under the watch of the OCC. One important change that has already been confirmed is that the Thrift Financial Report (TFR) will be eliminated and thrifts will be required to file a Call Report. The timetable for this transition is just a year away, as the objective is to have this conversion done by March of 2012. Already, OTS and FDIC employees will begin the process of collecting and transferring data in the second quarter of 2011 to prepare for this transition. Also, the Uniform Thrift Performance Report will be replaced with the Uniform Bank Performance Report, which is additional evidence that suggests that thrifts may be treated along the same lines as banks. One major question that remains to be answered is whether or not the OCC will allow thrifts to continue to comply with Thrift Bulletin 13a (TB13a), which has been in place since 1998. TB13a is a model created and provided quarterly by the OTS whose purpose is to provide guidelines for thrifts to help identify, measure, and monitor interest rate risk. According to the OTS regulation, the boards of directors are responsible for specifying the interest rate risk (measured by Net Portfolio Value) that their institution is willing to accept. In the bank universe, Net Portfolio Value is similar to the Economic Value of Equity analysis. Unlike banks, smaller and mid-size thrifts have not been required to run shortand long-term earnings simulations to effectively measure its earnings-at-risk. If the differences between banks and thrifts continue to shrink, all of this may change. Banks, for example, are not given a model by the OCC in the same way that thrifts are given TB13a by the OTS. Instead, they are largely responsible for measuring risk on their own. Specifically, banks run net interest margin simulations that focus on the earnings-at-risk over both short and long term periods (12-24 months) and different interest rate scenarios (interest rate changes of up to +/- 400 basis points, non-parallel shocks and ramps, etc.) Interest rate risk management is not just a tool or a report, but is best viewed as one integral part of an institutionâ&#x20AC;&#x2122;s entire ALCO process. The essence of an effective process lies in developing policies and strategies to improve profitability while managing risk. With a better interest rate risk management tool such as net interest income simulation that focuses on earnings, thrift management will be able to evaluate strategies in terms of both risk and reward.

OCC Tighter on ALCO It is likely that TB13a will be modified or eliminated. Any changes will probably not be finalized until the months following the merger in July of 2011, and the process of converting to a new method/model may take several months. Regardless of what the OCC ultimately decides, it is expected that thrifts need to be prepared for examinations that focus much more strongly on interest rate risk management and the ALCO process, as the OCC is considered a stricter regulator than the OTS in this area. Complying with any new rules has the potential to add significant headaches to thrifts, including hiring outside help and training employees to become familiar with new reporting systems/models and a revamped ALCO process. However, by preparing for these changes now, thrifts can potentially avoid even greater headaches in the future. Todd Taylor is the Founder and Managing Director of Taylor Advisors, Inc. Taylor Advisors is a balance sheet consulting firm serving banks and thrifts in Louisville, Ky. They work with bank executives providing advice, strategies and education in the areas of investment, liquidity, asset/liability, funds and risk management to improve or maintain profitability while managing risk. His email address is todd@tayloradvisor.com.

spring 2011 Ohio Record

APRIL 19

MAY 17, 18, 19

OBL TRAINING CENTER

AKRON; OBL TRAINING CENTER, COLUMBUS; CINCINNATI

Today’s Expectations of the Credit Analyst As today’s economy is one of the worst we have experienced in the last 50 plus years, credit analyst’s work must be as precise as possible. Considering that loans are the “life blood” and the major source of income for the bank, they can also be the “largest” losses that a bank can suffer. Led by Rob Grope of Young & Associates, Inc., this program will help credit analysts make better and more precise decisions regarding credit requests, as they learn how to look at the history of an applicant to determine his or her creditworthiness for the future.

Ohio Deposit Documentation Offered in partnership with Professional Bank Services, these regional workshops will review laws and regulations affecting financial institution deposits, with special emphasis on Ohio law – and includes a comprehensive manual with each registration. Developed for new accounts personnel, auditors, bookkeepers, operations officers and others who have responsibility for administering customer accounts, this fastpaced program is designed provide new employees with an overview of deposit accounts and to “tie everything together” for experienced personnel. No advance preparation is required.

MAY 19

MAY 24

OBL TRAINING CENTER

Social Media Strategies Forty-six percent of adults age 50+ use social networking, while 75 percent of social web users say email is the best way to communicate with them. Are you reaching these markets? This one-day Social Media seminar will focus on two areas of this growing arena – including Social Media: Five Ways to Increase Bank's Online Presence and How to Protect Your Bank from Nightmares in Social Media. Rory Rowland, who received rave reviews at the 2011 OBL Bank Marketing Conference, will lead the program.

Ohio Record spring 2011

Implementing Effective Fair Lending Compliance In order to assist community banks manage the increasingly burdensome risk of fair lending compliance, this seminar will provide an update on the current fair lending landmines and a framework for managing these risks through effective risk assessments and fair lending reviews. Presenters Lyn Farrell and Loretta Kirkwood from Treliant Risk Advisors will also discuss what to do before the examiners arrive, and will include time for questions & answers.

JUNE 2 & 3

JUNE 22 - 24

OBL TRAINING CENTER

NEW! Advanced BSA School

2011 Lending Curriculum Continues

Led by Bill Elliott, senior compliance consultant and manager of the compliance division with Young & Associates, Inc., this NEW advanced course will be run as a case study. Participants will receive a long and complicated case in which a student serves as the new BSA officer and will have to determine what to do to fix the bank’s program. Advanced subjects will also be included that did not appear in the 2011 BSA/AML Conference in March. The School is appropriate for any banker with working knowledge of BSA.

Led by nationally-known presenters Jeff Judy and John Barrickman, core lending courses will help bankers at both ends of the spectrum, as they teach new lending personnel lending techniques; and provide more experienced bankers an opportunity to focus on areas where there is less confidence and familiarity. One day seminars include: Analyzing Financial Statements - April 6; and Enhanced Ratio Analysis - April 7; Cash Flow Analysis - June 2; and Asset Quality Ratings - June 3; Qualitative Analysis - Sept. 21; and Loan Structure - Sept. 22; Problem Loans - Oct. 26; and Best Practices in Portfolio Management - Oct. 27. The curriculum will conclude with the 2011 School of Commercial Lending Essentials, Nov. 16 – 18.

SPRING

Please see the OBL Web site for a complete listing of currently scheduled classroom seminars and workshops, schools and conferences, and special meetings and events.

JUNE 8 & 9 OBL TRAINING CENTER

2011 Community Bankers for Compliance Program The first quarter seminars in March will begin the 2011 Community Bankers for Compliance membership, though additional benefits begin in January. Members receive four inter-related compliance services for one annual fee of $1,200, including: Quarterly seminars covering the latest regulatory compliance and industry developments; subscription to the monthly Compliance Update newsletter; access to the toll-free Compliance Hotline for questions that arise on a daily basis; and access to the CBC members only Web page, which includes timely information and compliance tools. Register online or request a brochure today.

Online Learning Savings Continues Throughout 2011, bankers can continue to take advantage of online learning opportunities for just $199 per connection, per program. Train multiple employees on a variety of compliance, lending, frontline and leadership topics – or purchase an On Demand version for multiple viewings for the same $199. Bankers can also take advantage of a 15 percent discount on a variety of GSB online seminars now through the end of May in the areas of sales/service, IRA/HAS, and technology. Those banks that purchase a topic bundle receive access to all of the live seminars as well as the program recordings. Check the OBL Web site for current online courses or contact Julie Kiplinger at 614-340-7612 for assistance in locating a program to fit your need.

spring 2011 Ohio Record

n o i t c A o t l l a AC

Working Together Banks Make Progress against Government Price Controls

Jeff Quayle OBL Senior Vice President & General Counsel

Ohio Record spring 2011

Because banks are speaking with one voice and we are working smoothly with other interested parties, real progress is being made in getting changes to the interchange price controls. A well organized coalition is a beautiful thing to see. Make no mistake however, much work is left to be done, and the beneficiaries of the lower fixed rates will be fighting us every inch of the way. It has been now well documented that last summer as the 2300 page banking bill was working its way through the Congress a few senators were able to shoehorn the interchange price controls onto the bill. Even though House leadership was not in favor of including price controls as a part of the big bill, the Senate made it clear that it was the price it was going to take to enact the banking bill, and the President made it clear that was a political priority. Now that policymakers are seeing the unintended consequences, the number of senators and representatives with buyersâ&#x20AC;&#x2122; remorse grows by the day. As a result of this political momentum, there are now two bills pending that will go a long way to accomplish the industry objectives: H.R. 1081, which was introduced by Reps. Shelly Moore Capito (R-W.Va.) and Debbie Wasserman Schultz (D-Fla.) and S. 575; which was introduced by Sens. Jon Tester (D-Mont.) and Bob Corker (R-Tenn.). Both bills delay the effective date of the price controls, giving Congress and the Federal Reserve adequate time to study the impact of regulating debit interchange transaction fees and examine the full costs and benefits of debit card transactions. If your Congressman has already co-sponsored the bill, today would be a good time to call him and thank him for his support. If your representative has not yet committed to sponsoring or voting for the bill, now would be a good time to ask for his support. If he or she is not willing to give you that support, you should try to find out why. It also helps our cause that there is a new attitude in Washington. Everyone is more concerned about the costs of regulation, and the unintended consequence of the heavy hand of government intervention in the free markets. I encourage you to take advantage of this new environment by engaging in this important debate if you havenâ&#x20AC;&#x2122;t yet done so. Invite your representative to come to your bank to talk about the issues. I am scheduling a number of meetings around the state with our new congressmen, so if you can, I hope you will participate. Finally, as more key votes are scheduled in either the House or Senate, if we ask you to reach out to your representative or senator and ask for his support and his vote to end poorly thought out price controls, I hope you will do so.

spring 2011 Ohio Record

From the

Steps of the Statehouse

Michael J. Adelman Vice President of State Government Relations

Relationships Matter I recently entered my 21st year at the Statehouse. Like the bankers I represent, my relevance is the result of the reputation I’ve built plying my trade. Certainly learning the state legislative and budget processes as well as developing expertise in such areas as banking, taxation and economic development have been important. However, investing time to establish integrity and credibility has earned meaningful relationships that have furthered my career. I’m proud to claim as my earliest mentors Speaker Batchelder, House Finance and Appropriations Chairman Ron Amstutz and Office of Budget and Management Director Tim Keen. All are in influential state posts, but developing relationships is a never-ending process to remain relevant. A couple of months ago I received a letter signed “Concerned Banker.” I was disappointed by the anonymity, mainly because it prevented me from directly following up to fully address the banker’s concerns. The letter simply asked why the OBL would support a certain legislator “when he is a huge supporter” of a local credit union. Attached to the letter was an OBL invitation to a meeting with the legislator. This was not an industry fundraiser, so it was a real leap to imply we were necessarily supporting this officeholder. In fact, the bankers that attended had a very candid conversation in which they voiced their displeasure for the legislator’s support of the “tax subsidized” banking industry. I believe the legislator will have greater sensitivity when faced with future credit union requests for expanded powers. The point of my column is two-fold. First, relationships matter. The bankers participating in the meeting either had a chance to meet this legislator for the first time thereby laying the foundation for a relationship or build upon one already in place. Educating our elected officials on the implications of legislation and policy relating to the banking industry enables them to effectively serve their constituents. Having earned the respect of legislators affords the OBL the opportunity to opine on legislation and shape policy. At the end of the day, success in government relations depends on relationships.

No One can be “Written Off” My second point is that a successful grassroots strategy can ill-afford to “write off” our elected officials. In the grand scheme, the General Assembly is a small body. There are only 99 representatives and 33 senators fighting for the interests of their combined 11 million constituents. Yes, Republicans have sizeable majorities in both chambers this session, but

Ohio Record spring 2011

the real decisions are made on smaller playing fields: within the caucuses, by the leadership teams and in the committees. Looking at the respective financial institutions committees this session the House has fifteen members with a nine to six Republican-Democrat split and the Senate has nine with a six to three split. We must always go into battle anticipating our foes will be equally effective at persuading their side of the argument. The difference between winning and losing issues can be a razor’s edge. Thus, few, if any, members can be taken for granted. Plus, I’m in this business for the long haul and I have the feeling the electorate is going to be fickle making single-party control for extended periods the exception. To put a bow on discussing the letter, few legislators will be with us 100 percent of the time. Fortunately, the converse is also true. I’ve had the pleasure of working with hundreds of legislators since 1991 and they all mostly meant well. They tend to be equally passionately for or against the issues we advocate. Don’t misunderstand

me; I work hard to win and don’t like to lose. Thus, I’ve found a key to long-term success hinges on my ability to not take decisions personally, continually educate and live to “fight another day.” As long as each legislator has a floor vote and potentially a committee vote on a bill I’ll care about, I best serve my membership attempting to establish credibility with all 132 legislators. As for the legislator considered a “huge supporter” of the local credit union, he disclosed his professional dealings. He also told me that credit union reached out first to express their strong interest in becoming a public depository. Yet, once educated on our concerns, he understood our strong objections. He even agreed that if the bill had sufficient votes to move forward he would support a series of amendments the OBL proposed, which likely would have encouraged the credit unions to abandon the bill altogether. Furthermore, this legislator was very supportive of the banking industry’s stance on every other issue we championed. Lastly, little did we

know the legislator would be a member of leadership this session, which translates into increased relevance. In the end, this single episode illustrates relationships matter and no legislator can be “written off.” To stop meeting with such policy makers concedes those votes and any chance to ever win them over. Let me know if you seek my help in setting a local meeting with your representative or senator. It’s a great way to start or build on a relationship.

spring 2011 Ohio Record

WINDOW ON THE CAPITOL In this regular feature, Ohio Record introduces our elected state and federal legislators. In this edition, the spotlight is on newly elected State Treasurer Josh Mandel, Ohio Director of Commerce David Goodman and Superintendent of Financial Institutions Charles Dolezal.

Treasurer Josh Mandel Ohio Record: Given your background in the U.S. Marine Corps it is no surprise that you have assembled a quality team in the Treasurer’s Office. Please tell us a little about the team you have put together.

Treasurer Josh Mandel: The United States Marine Corp reinforced in my life the values of honor, courage and commitment. As State Treasurer, I have assembled an experienced team with a sharp sense of integrity, focus and discipline. The staff in the Treasurer’s office has a wealth of management, financial and government expertise. I am proud to report that our office is running smoothly, and we are working diligently to protect and invest public funds and serve all Ohioans. Ohio Record: What are your goals for your first six months as State Treasurer?

Mandel: The Treasury manages an investment portfolio of around $11 billion dollars. My first goal is to safeguard taxpayer dollars and make sure that the money in the state’s custody is invested prudently for safety, liquidity and yield. The office is also focused on innovation, efficiency and service. On the campaign trail I pledged to conduct a top-bottom review of the Treasurer’s office in order to streamline, operate leaner, and run the office more like a business. We are currently working to update our systems to be in line with modern banking practices. For instance, we are looking to use Automated Clearing House and remote deposit capture more effectively, instead of more costly and outdated check processing methods, which should ultimately save a lot of time and money. This review is underway and is a priority. Finally, I am committed to making my office a resource for any resident who might be having a problem with state government and need assistance. I would encourage Ohioans to

Ohio Record spring 2011

visit my website at: www.ohiotreasurer.gov, send an e-mail to constituentaffairs@tos.ohio.gov or call my office at (800) 228-1102. Ohio Record: What do you see as the main challenges for the Ohio economy over the next couple of years?

Mandel: We need private sector jobs and employers to return to our state if our economy is to emerge from recession. Ohio is the seventh highest tax state in the nation, which is a burden on families and businesses alike. I am fighting for reforms that will benefit taxpayers and help create a better business environment. We need to get government out of the way of job growth and cut through the red tape that is burying small businesses if employers are to start hiring again. Ohio Record: What recommendations do you have on how Ohio’s banking industry can assist in the recovery?

Mandel: It’s important that banks continue to make capital available for individuals and businesses if we are to get our economy back on track. The mortgage and foreclosure crisis has made it clear that financial institutions need to make smart decisions when they extend credit. But, businesses that have a good credit history and are looking to grow and hire need to be able to get loans. Banks can help fuel growth and assist in our recovery by investing in Ohio entrepreneurs, particularly those looking to create jobs in our state. My office runs the GrowNOW program, which offers 3 percent loan reductions for small businesses that create or retain jobs in Ohio. We are looking to expand this and other linked-deposit programs to better serve small businesses and all Ohioans. I would encourage banks to increase participation and promotion of these programs run by the Treasury. I also would request the banking industries’ ideas on improvements or innovations for economic development programs. We are always looking for new ways for banks to partner with the state to assist individuals and businesses and speed our economic recovery.

Director of Commerce David Goodman Ohio Record: What are your goals for your first six months as Director of the Department of Commerce?

Director of Commerce David Goodman: As Director of the Ohio Department of Commerce, I am focused on the key goals of the Kasich Administration: to revive Ohio’s economy to create jobs, restore Ohio’s competitiveness, and reduce the regulatory burden on business. These goals fit neatly into the role of the Ohio Department of Commerce and they are my focus as well as that of our new management team. We are committed to transforming our state to create new opportunities for our citizens. To reform Ohio’s regulatory policies to help make Ohio a jobs and business-friendly state, the Governor and Lt. Governor Mary Taylor recently launched “CSI Ohio: the Common Sense Initiative”. We are actively seeking ideas from all Ohioans on how to remove barriers to job creation and economic development. While many of the regulations we enforce at the Department of Commerce are vital to protecting Ohio’s citizens, some regulations may be cumbersome and impose an unnecessary burden on Ohio businesses. We want to know about these cases and any common sense solutions you have. If you have any ideas now or in the future, I encourage you to submit them to CSI Ohio at www.governor.ohio.gov/CSI or by e-mail at CSIOhio@governor.ohio.gov. Ohio Record: It appears the key components of your management team are being put in place. Please shed a little light on how you believe the Division of Financial Institutions staff will effectively meet the needs of the 21st century?

Goodman: I think we hit a home run in inviting Chuck Dolezal to serve as Superintendent of Financial Institutions. We are fortunate to have his wisdom, insight and experience from 33 years in banking. As a former community banker, Chuck understands that financial institutions are vital to local economic development and that business growth needs capital for investment. He has a lot of great ideas and I am excited to be working with him. In addition, we were pleased to promote Kevin Allard to be Deputy Superintendent for Banks and Savings Institutions. Kevin has worked on a variety of issues during his 25 years with the Division and possesses a great deal of historical knowledge on how to address problems and find solutions. As a team, we are focused on ensuring the safety and soundness of our statechartered financial institutions as well as being open to new innovations and technology. We are also excited to work with our bankers to help grow Ohio’s economy and to create jobs in your community.

Ohio Record: What has been your biggest challenge thus far?

Goodman: The Department of Commerce is a complex organization that charters, licenses and registers a wide variety of industries. It is amazing to think of the impact that the department makes in the lives of Ohio's citizens and the businesses that operate here. During my first couple months on the job, I have been reaching out to meet the Department’s employees, representatives of the various trade associations, and the individuals and businesses we regulate. In many ways, I have been listening more than speaking because I want to know what our constituents are thinking and to gather ideas on how we can do better. As always, I have enjoyed meeting with the Ohio Bankers League and bankers throughout our state. I particularly enjoyed joining Ohio’s bankers on the OBL’s Fly-in to Washington, D.C. in early March. I learned a great deal and I think we made Ohio’s case in the nation’s capital. Ohio Record: Which area of the Department has required the most amount of your attention?

Goodman: There really hasn't been one specific area of the Department where I have devoted most of my time and attention. On any given day, issues are discussed and decisions are made relating to virtually every Division. The pace is very quick and the amount of information to absorb across all the Divisions and industries has certainly been challenging, but I am enjoying it and learning a great deal. We have put together an excellent team that is focused on achieving results. The employees of the Department have extraordinary knowledge and I’m here to facilitate our decision making process, unleash our creative energy, and achieve great things for the citizens of Ohio. Every day, it all comes back to our key goals: revive Ohio’s economy to create jobs, restore Ohio’s competitiveness, and reduce the regulatory burden. Ohio Record: Is there any other message you'd like to share with Ohio's banking industry?

Goodman: The Division views itself as a partner with our state-chartered financial institutions. While we recognize the challenges facing some of our institutions and are focused on working with them, we are pleased that most of our banks and savings institutions are healthy. We are proud of Ohio’s tradition of conservative financial institution management and think this is a direct reflection on why Ohio has had far fewer failures than many other states. The Division's role will always be to ensure the safety and soundness of our institutions. But beyond that, I see Ohio’s financial institutions as critical partners in economic development and job creation. I personally want your insight and creative ideas for areas where we can improve. I am looking forward to meeting even more of Ohio's bankers in your communities and building deeper relationships over the coming years. spring 2011 Ohio Record

WINDOW ON THE CAPITOL Superintendent of Financial Institutions Charles Dolezal Ohio Record: How will your many years as a community banker help you in your new role?

Superintendent Charles Dolezal: Being a community banker for over three decades, I have had the opportunity to experience most facets of banking. I have seen many changes to banking law and to the regulatory environment. There have been many different economic conditions over the past several decades that have lent to changing the shape of our industry. I have experienced both types of charters and institutions with very different challenges and capabilities. These experiences have given me a well rounded background of the industry. It has helped me to identify good banking practices versus those that need improvement to face the ever changing risk environment we operate in today. My past experiences enable me to better relate to the issues bankers face each day. Ohio Record: Realizing you are only one month into your new job, what has been the most significant change from your years in the private sector?

Dolezal: After 33 years as a banker, I’m now having the opportunity to see things from a regulator’s perspective. I have been impressed with the knowledge and experience of the Division’s staff who are committed to ensuring the safety and soundness of our statechartered institutions. We are focused on reducing the regulatory burden on the institutions we regulate by initiating a review of the banking statutes. Ohio Record: What role does the average community bank play in local economies around the state?

Dolezal: Community banks play a very critical role in the local economies they operate within. They are a catalyst for small business growth and job creation. They know their business customers and they know the needs of their local communities. Most community bankers are very involved in their communities and can influence positive initiatives the community can take to benefit its local economy and citizens. Community bankers can play a significant role in job creation within their respective communities by not only working closely with their Chamber of Commerce but also leveraging their small business lending through the utilization of the vast array of state and federal government programs designed to assist small business growth. Ohio Record: What do you see as the main risks and opportunities for the Ohio banking industry in the coming years?

Dolezal: The Ohio banking industry has faired relatively well throughout the economic downturn that we have experienced during the past several years. Although there are financial institutions in Ohio that have been struggling, we have not had anywhere near the failures that have been experienced by other states. I see the banking industry in Ohio getting progressively stronger as we move forward. The atmosphere in Ohio is primed for business and job growth and our financial institutions will assist in making this happen. Banks must, however, embrace sound lending policies throughout this process. If sound policies are not adhered to, we will run the risk of sliding back to increased loan losses and erosion of earnings and capital. I am very optimistic for the future of Ohio with increased business growth leading to job creation and revenue growth for the State and municipalities. This is a win for the citizens of Ohio and a win for Ohio’s financial institutions which will have an opportunity to play a significant role in making this happen.

Ohio Record spring 2011

spring 2011 Ohio Record

Title Agency Partnership Ready to Help Boost Bottom Line In today’s banking environment, reduced margins and lower fee income leave bankers scratching their heads as they look for the next business opportunity. Title insurance joint ventures, a hot topic among Ohio bankers over the last five to ten years, can be very profitable for their owners. OBL business partner Barrister Title Group, LLC, headquartered in Mansfield, has been an Ohio market leader since 2002, and has established numerous successful joint ventures with Buckeye banks over the last decade. Many banks have looked at getting into the title business before, but found the start-up costs or the effort involved prohibitive. But with the Barrister model, this couldn’t be further from the truth. Establishing a joint venture is actually very straightforward, it’s RESPA compliant, and it involves minimal economic risk.

Ohio Record spring 2011

Bud Vetter CEO Barrister Title Group

As with other for-profit entities, the creation of a title insurance joint venture begins with the creation of a limited liability company. Barrister’s model has been consistent since 2002. Due to Ohio Department of Insurance requirements and RESPA, Barrister has a fifty-one percent controlling interest in the actual joint venture and then partners with a financial institution, or other entity, for the remaining forty-nine percent. While other vendors will negotiate the actual minority interest’s percentage according to the individual deal, Barrister has always provided the maximum minority interest percentage possible by statute to each of its partners. Creation of the entity involves filing of Articles of Organization with the Secretary of State’s Office. Then, an operating agreement is established between the owners of the LLC which documents the terms, conditions and operating procedures for the entity. The operating agreement provides for management duties, transfer provisions, RESPA compliant provisions and the overall basis for how entity is to operate. All parties to the joint venture must review and sign the operating agreement. Once the entity is approved by the Secretary of the State and an operating agreement has been executed, the entity is officially able to do business. The next step in formation of the business is to hire an employee, preferably a licensed title agent, to assist in the operation of the entity on a day to day basis. Once the entity is set up, the employee is hired, and business is ready to commence, a filing is necessary with the Ohio Department of Insurance. This filing establishes the newly created Joint venture as a licensed title agency within the State of Ohio, so that it may operate on a day to day basis without any obstacles. As mentioned earlier, it is absolutely essential that the joint venture be created and operate as a RESPA and Ohio Department of Insurance regulation compliant entity. Barrister has taken the steps and performed all of the research and due diligence to ensure that each and every one of its joint ventures is RESPA

compliant and Ohio Department of Insurance compliant. Barrister strives to stay on top of any and all of the laws governing the affairs of joint ventures, and has successfully completed an audit by the Ohio Department of Insurance. Barrister has secured a prime location in downtown Mansfield, which currently houses many of the joint ventures that have already been created. All of the suites that have been created to house each joint venture are RESPA compliant and Ohio Department of Insurance compliant. One of the benefits of having a joint venture on site in Mansfield is the fact that Barrister is at the same location and can offer oversight and direction The banks that Barrister have already partnered with are very happy with the results. Each joint venture partner has become profitable and in many cases has established six figure annual returns. Many of the entities that have established joint ventures were pleased with how easy creating the new business venture and how their only tangible responsibility was to assist in marketing for the new business. Does the state of today’s economy – and the fact that the volume of loan origination has deceased over the years – make it an appropriate time to create a title company joint venture? This thought could not be further from the truth. The evidence has shown that they can thrive in any economic climate. The bottom line is that title insurance is needed in virtually every real estate transaction that occurs throughout the State of Ohio whether for the lender or for the owner. Given that fact, there is an existing market for title insurance in good times and bad. The fact is that there is no better time to consider the establishment of a title company Joint venture. Barrister stands ready to assist any and all entities and financial institutions that may be looking to become more profitable and well rounded in its operations and services. Call Vetter at (419) 522-2262 for more details.

spring 2011 Ohio Record

To see how we can help your bank, please call:

A Subsidiary of Paragon Capital Group, LLC Charles R. Crowley Managing Director (440) 869-2103 ccrowley@paracapgroup.com

$24,600,000

has been acquired by

is being acquired by

Advisor to Seller

March 2011

Pending

$27,200,000

An Investor Group

Ovation Holdings, Inc.

is acquiring

parent company of

A subsidiary of

Common Stock Private Placement Sole Placement Agent December 2010

Capital Bancorp Ltd. Advisor to Buyer Pending

PARAGON CENTER, 6150 PARKLAND BOULEVARD, SUITE 250, CLEVELAND, OH 44124

Ohio Record spring 2011

Michael C. Voinovich Managing Director (440) 869-2104 mvoinovich@paracapgroup.com Christopher M. Chapman Vice President (440) 869-2105 cchapman@paracapgroup.com Istvan A. Nadas Associate (440) 869-2106 inadas@paracapgroup.com

To Check or Not to Check Banks’ Use of Credit Checks for Employment Purposes All employers want to make good Patricia Wise hiring decisions, but banks have special Niehaus & Associates, concerns about employees’ credit histories. Ltd. The very reputation of a bank in a community can be affected by an employee with credit issues. Obviously, many employees of banks have access to large cash amounts, wire transfers, and credit card information, and others perform accounting and audit functions, have lending authority, or work with bank customers with credit issues. The use of credit investigations by all employers has increased due to the recent economic crisis. Some critics say that this increase, coupled with greater numbers of applicants and employees with credit problems, is resulting in higher and more prolonged unemployment. Consequently, this practice is receiving closer scrutiny from lawmakers. There are significant issues for all employers to consider in deciding whether to use credit checks for employment purposes. First, the Federal Bankruptcy Code prohibits employment discrimination based on the fact that a person has been bankrupt, a debtor in bankruptcy, or is associated with someone who was bankrupt or a debtor in bankruptcy. This prohibition applies to all employers. There is no explicit exception under the Bankruptcy Code for banks. The Code clearly prohibits consideration of bankruptcy or insolvency in deciding to terminate an employee. Some courts have interpreted the Code’s provisions to prohibit adverse actions only if based “solely” on the bankruptcy or insolvency, and not when that credit status had only some influence on the decision. The law may be interpreted differently in the preemployment context. Several courts have held that the Code’s prohibition does not apply to hiring decisions. A very recent case in the Third Circuit followed this line of reasoning. (Rea v. Federal Investors, 2/14/11 – although note that Ohio is not in the Third Circuit but is in the Sixth Circuit, so that the decision is not directly applicable). An investment firm in that case interviewed an applicant, but denied him employment when it learned he had filed bankruptcy seven years earlier. The decision resulted from the court’s interpretation of specific language used in drafting the Bankruptcy Code, an interpretation which may or may not be followed in other courts. In Ohio, the safest course would be to avoid making adverse employment decisions based solely on the employee’s status regarding bankruptcy or insolvency. If used in the pre-employment process, the concerns and issues which follow should be addressed.

spring 2011 Ohio Record

The EEOC also considers the refusal to hire an applicant because of poor credit status to be problematic because minorities and women tend to have less favorable credit records and a lower socioeconomic status generally. For this reason, the EEOC views with suspicion any investigation into an applicant’s financial background, including inquiries as to bankruptcy, car ownership, home ownership or wage garnishments, unless directly related to the position or to job performance (e.g. auditor). Financial institutions and financial positions in banks may more readily justify these investigations as directly related to employment. This line of inquiry should only be considered if it is job-related, and any inquiry regarding finances should be carefully conducted, in compliance with the law. Significantly, the EEOC filed suit in December in Ohio’s Northern District Court alleging pattern or practice discrimination against Kaplan Higher Education Corporation for refusing to hire a class of black applicants based on their credit history. Kaplan has argued that this is necessary since its employees deal in financial matters, such as financial aid; the EEOC has made its position clear and Ohio banks should take heed. It remains to be seen how the court will rule, and whether any relief will be available from the EEOC’s enforcement efforts. The EEOC’s position on any employment requirement (especially concerning credit or financial issues) is based on a determination of whether the requirement adversely affects a particular group (as alleged in the Kaplan case). This is known as disparate impact (meaning that a particular group is excluded from employment at a higher rate than other groups). Because of the negative impact of credit requirements on minorities and women, it has been relatively simple for litigants to demonstrate adverse impact. This is sometimes done with nothing more than a citation to census statistics in the United States which demonstrate that minority groups have a larger percentage of persons below the poverty level than whites.

Ohio Record spring 2011

Once an assessment is made that a certain requirement is adverse or “disparate,” an employer would then have the burden of showing that the requirement has a “manifest relationship to employment.” In other words, an employer must demonstrate a business necessity to the workplace. A business necessity can be demonstrated only if the requirement is predictive or significantly correlated with important elements of work behavior which are relevant to the successful and efficient performance of the job(s) at issue. To demonstrate this successfully, an employer would need to analyze the job(s) at issue, considering the actual tasks performed. The employer would next need to “validate” the credit or financial requirement, ensuring that it was necessary for success on the job. This type of requirement is more likely to be upheld if the position responsibilities include: • discretion or judgment in extending credit, lending authority; • review or supervision of collection and/or workout functions; • access or ability to control large dollar amounts or wire transfers; and • significant discretion or authority in other financial matters. It is least likely to be upheld for entry level positions (such as CRSs). Even if an employer determines that the requirement is justified by business necessity, the requirement could still be unlawful if it is determined that a comparable requirement would be valid and have a less adverse impact. Any employment decision should be made fairly, considering the reasons and circumstances for the credit or financial shortcoming (i.e., previous good credit, subsequent divorce or medical situation). Banks are experts at evaluating credit fairly, and should do so with the same consideration used in evaluating customers’ creditworthiness. Many states, including Ohio, have been considering limitations or prohibitions on credit investigations, and federal legislation is also pending. In Ohio, proposed Senate Bill 30 was introduced on

February 1, 2011, and the first hearing on the Bill took place on March 9, 2011. Like previous proposals, it would prohibit any employer from using credit information as even one factor in hiring or employment decisions. There is no exclusion for banks. In Congress, the proposed Equal Employment for All Act (now HR 321) would amend the Fair Credit Reporting Act to prohibit credit checks for prospective and current employees. It was introduced again on January 19, 2011. As written, supervisory, management, professional, or executive positions at financial institutions would be exempt. The Act would also exempt positions that require FDIC clearance. Employers should carefully monitor these proposals to ensure compliance with applicable laws. (Of course, banks must continue to comply with the Fair Credit Reporting Act requirements for obtaining any consumer reports). Pending litigation and conflicting court decisions provide little guidance for banks in the use of credit reports. Banks should attempt to use credit investigations for employment decisions only when it is justified as a business necessity. This is least likely to be justified for entry level positions such as CSRs. Although the Supreme Court has not considered this issue directly, some support for employers may be found in a recent decision of the Court. On January 19, 2011, the Court said that any employer is entitled to hire employees who are “reliable, law-abiding persons.” While not directly addressing credit investigations or bank employers, the language in the case may provide support on this issue. Banks should also contact their state and federal elected representatives to ensure that they understand the issue, and to explain the unique nature of banking and the special role of bank employees in their jobs, but also as representatives of their banks in their communities.

The Infinex Experience Do you earn enough revenue from your investment program? Infinex has the most competitive payouts in the industry. We provide your program with local support, and quarterly program consultations, supporting your mission to serve your clients and increase program profitability. We believe in providing you with tailored solutions to help your financial institution stand out in today’s changing marketplace.

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There are no “one size fits all” solutions for successful investment programs. Infinex is focused on the needs of financial institutions and their clients. For more information please call: Michelle Crume Ohio Bankers League, VP Infinex Investments, Regional Director 614.340.7622 | mcrume@infinexgroup.com Securities offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC

fall 2010 Ohio Record

spring 2011 Ohio Record

What are We Going to Do With All of This? Michelle Rae President & CEO m.rae Associates, Inc.

I was on my way to a speaking engagement recently when an interesting subject came up:

TECHNOLOGY. The Universal Question

Although not a new subject, the effects of technology in banking have grown exponentially. We have moved from online products to Facebook and Twitter. Talking with bankers across the country one thing remains universal; the question: what are we going to do with all of this? The time period for being reactive has passed and now we have been flung head on into having to be proactive. Technology is moving so fast and hitting us from so many different directions that it is hard to imagine that anyone can be leading the way – at least without infinite resources. So, what are you going to do with all of this?

It is Your Face I propose planning for the future while staying grounded in the past. What does that even mean? It means that for all of the running around we have to do to keep up with the Jones’ (a.k.a. competitor banks large and small, near and far), don’t lose sight of the core products and services that are your differentiators – and it isn’t just service; it is your face.

Pay Your Mortgage From Your Phone A friend of mine asked me last week what is going to happen next with lending? He has rented his whole life, has a high credit score, and has been unable to secure a mortgage. Do you think he cares if he can pay for his mortgage on his phone? No. He just wants the mortgage – period. This is not to say that it is not a must to ardently work toward technological supremacy, but it does point out that it is what is mixed with that technology that makes the difference.

People and Paper Are Still Part of the Equation Like my health insurance – I don’t want to get political – I just want to point out that this is a sophisticated company in a huge industry with more resources than just about any bank out there. Pricing and fairness and the politics aside – they have spent millions on web sites, online tools and virtual contact with them. But you still can’t physically meet anyone. Even with tech-focused touch points, you still have to talk with someone to resolve anything and you still have to submit paper forms and receipt claims. And at the end of the day, you are still notified about claims, coverage and other issues via paper mail. Do you think I care that there is an online resource to monitor my plan/claims? Or that there is a virtual receptionist to answer the most frequently asked questions? No. I have questions and I would even pay a higher premium if I could actually be face to face with them.

Ohio Record spring 2011

Their online products still have not fixed a basic communication problem. The technology, though on the cutting edge, is not useful for the product they sell – nor effective for the service their customers need.

What Will Your Bank Look Like? What about the future? What will your bank look like? Do you see it operated by virtual tellers and email? That marketing is done only by Twitter, Facebook and email? If so, no need to heed this advice. But, if you see a future that still has customer service and real-time people to assist you – you have to invest in that just as much.

The Boomerang Effect I believe in the boomerang effect in communication. When we go so far on one end, we correct ourselves. We were so paper oriented and have found efficiencies

and advantages to utilizing technology. We have sped up the teller line, made transactions faster and reached out to a group of customers that would otherwise never have come into your branch.

Compromised Communications What will happen is that we will go so far to the other side that person-to-person skills will take a hit. It already has. I actually had a client email me back by replacing “for” with “4” and other creative truncations. It took me by surprise. I expect this from my nephews – but this? Where will the personal touch be on the spectrum? Gone altogether? People will still need to communicate and I believe a balance of the computer language and that of words is the key. It is beginning to mean something to get a call or letter now. A personal note gets noticed. Spending time with someone physically is a big commitment.

A Hand Written Note When I checked into the hotel for the MBA conference, I received a hand

written note upon arrival. I assumed it was from the conference coordinator. But instead, it was from the hotel’s manager and staff. It was personalized and it caught my attention. An email that said the same thing would have been ignored if it had not landed in my spam folder. Technology is critical – it cannot and should not be ignored. In the same regard, your people are critical and their development and person-to-person skills need to be honed as much as you train on mobile remote deposit. You cannot win this battle with tech products because you will have the same products as everyone else – and potentially much later and less sophisticated. But to stay in the game, you must keep up. So what are you going to differentiate yourself with? How do you rise above the virtual chatter instead of becoming part of the noise? Use your face. Hear more from Michelle during her Succession Plan presentation at the 2011 OBL CEO Symposium - May 10 & 11.

spring 2011 Ohio Record

Ohio BankPac in 2010 Making a Difference By Michael J. Adelman, Treasurer, Ohio BankPac

The continued success of our Political Action Committee reflects our industryâ&#x20AC;&#x2122;s commitment to a strong government relations program that in turn promotes a thriving and competitive banking system for Ohio. In 2010, the Ohio banking community pulled together to raise $104,000. We would like to thank our PAC Board of Directors, led by Trent B. Troyer, president & chief operating officer at First Federal Community Bank in Dover, for the effort and time commitment they put in during 2010. The primary reason for our continued success however goes to each of our contributors, so we would like to recognize below those bankers that have contributed more than $100. For more information about how you or your institution can get involved in Ohio BankPac, please contact OBL Government Relations Coordinator at (614) 340-7605 or jrosato@ohiobankersleague.com.

Eagles Club ($500 or more) Michael A. Baker, OBL BankServices Barbara H. Benham, Huntington Bancshares Incorporated Howard T. Boyle II, Home Savings Bank Jack Casey, Elan Financial Services Richard Coe, Portage Community Bank Steve P. Foster, LCNB National Bank G. Courtney Haning, The Peoples National Bank of New Lexington Blair A. Hillyer, The First National Bank of Dennison Steven G. Hunter, Vinton County National Bank John W. Kozak, The Park National Bank Robert T. Lameier, Miami Savings Bank Timothy J. Lehman, The Park National Bank Phil Linton, BancVue John R. Martin, Optimum System Products, Inc. Todd A. Mason, The First National Bank of Pandora Thomas L. Moore, First Federal Bank of Ohio Paul M. Reed, Farmer Banks & Savings Company, Pomeroy John Gilbert Reese, First Federal Savings and Loan Association James R. Romask II, Crowe Horwath LLP Daniel W. Schutt, The Union Bank Company Jeffrey E. Smith, The Ohio Valley Bank Company Michael R. Steen, The Community Bank - A Division of CSB Paul M. Thompson, First Federal Savings and Loan Association

Ohio Record spring 2011

Trent B. Troyer, First Federal Community Bank Michael M. Van Buskirk, Ohio Bankers League Benedict Weissenrieder, The Hocking Valley Bank Thomas D. Will, Community Bancshares, Inc. Stephen P. Wilson, LCNB National Bank Thomas E. Wiseman, The Ohio Valley Bank Company Brian D. Young, The Union Bank Company

Ambassadors Club ($300 - $499) Michael J. Adelman, Ohio Bankers League Maureen Buchwald, First-Knox National Bank - A Division of PNB Joseph Bunke, Cincinnati Federal Savings and Loan Association Coleman J. Clougherty, Farmers Citizens Bank Robert E. Daniel, The Ohio Valley Bank Company C. Daniel DeLawder, The Park National Bank Lynn B. Fawcett, The Park National Bank Michael L. Gampp, American Savings Bank, FSB Rick R. Hatcher, Citizens Federal S&L Assoc. of Bellefontaine Peter W. Jaworski, WesBanco Bank, Inc. Jack D. Kidd, Oak Hill Financial, Inc. D. Bruce Knox, WesBanco Bank, Inc. Laura B. Lewis, The Park National Bank John J. Limbert, The National Bank and Trust Company John R. Malanowski, First Federal Savings and Loan Assoc. of Lorain

Michael R. Melvin, Perpetual Federal Savings Bank Mark K. Milligan, First Federal Savings and Loan Association Jeffrey D. Quayle, Ohio Bankers League Barry W. Ritchey, Standing Stone National Bank Deborah M. Schenk, Mechanics Bank Henry L. Schulhoff, WesBanco Bank, Inc. Marilyn L. Sessions, Home Savings Bank Robert M. Smith, American Savings Bank, FSB Eddie L. Steiner, CSB BANCORP INC. Neil Strawser, WesBanco Bank, Inc. David H. Summers, Monroe Federal Savings and Loan Assoc. Gary L. Sutter, Ohio Bankers League Melea J. Wachtman, Ohio Bankers League Roger D. Williams, The Ohio Valley Bank Company

Sustaining Member ($175 - $299) Mary A. Abel, The Hocking Valley Bank R. Andrew Bell, Security National Bank - A Division of PNB Roger S. Blair, First Community Bank Sherran Blair, First Community Bank Mark Breitinger, Richland Bank-A Division of PNB Michael D. Brooks, The Hocking Valley Bank Terry K. Bumpus, First Federal Savings & Loan Assoc. of Centerburg Brady Burt, The Park National Bank Thomas Button, The Park National Bank John P. Chambers, The Wilmington Savings Bank Steven B. Chapman, The Ohio Valley Bank Company James E. Coe, First Federal Savings and Loan Association Martin R. Cole, The Andover Bank K. Douglas Compton, The Park National Bank of Southwest Ohio Michael H. Cone, Home Savings Bank Steven D. Coutts, The First National Bank of Dennison Timothy R. Cowen, The Farmers & Savings Bank - A Division of PNB James R. DeRoberts, Gardiner Allen DeRoberts Robert M. Duncan, First Federal Savings and Loan Association Ronald D. Eschbach, The Antwerp Exchange Bank Company William C. Fralick, Security National Bank - A Division of PNB Robert J. Gall, The Hocking Valley Bank Katie Gazley, Gardiner Allen DeRoberts Alan H. Geiger, The Hocking Valley Bank Timothy D. Hall, Fairfield National Bank - A Division of PNB Mark A. Henschen, Minster Bank Harold A. Howe, The Ohio Valley Bank Company Lynne F. Karla, The Park National Bank Scott Michael, Security National Bank - A Division of PNB Dean J. Miller, The First National Bank of Bellevue Kevin S. Motley, The Wilmington Savings Bank Terry Myers, The Park National Bank Scott Nisley, The Hocking Valley Bank

Robert W. Norris, The Hocking Valley Bank Earl W. Osborne, Guardian Finance Company Michael P. Pell, First State Bank James R. Powell, Liberty Savings Bank, F.S.B. Michael A. Putman, The Hocking Valley Bank Richard L. Riesbeck, The Citizens Savings Bank Joseph M. Risch, Vinton County National Bank David Roach, The Union Bank Company Michael O. Roark, Fidelity Federal Savings and Loan Association Brent A. Saunders, The Ohio Valley Bank Company Ronald A. Shidaker, The Wilmington Savings Bank Paul S. Siebenmorgen, The Farmers & Merchants State Bank William J. Small, First Federal Bank of the Midwest Jeffery E. Smith, Bricker & Eckler, LLP Mark V. Snider, The Hocking Valley Bank Roger E. Stitzlein, The Farmers & Savings Bank - A Division of PNB Donald R. Stone, United Bank - A Division of PNB David Thomas, The Ohio Valley Bank Company Dan Turben, The Park National Bank James W. Vincent, The Ottoville Bank Company Sarah R. Wallace, First Federal Savings and Loan Association Stephen G. Wells, Fairfield National Bank - A Division of PNB Mark A. Williams, The Wilmington Savings Bank William R. Wilson, The Park National Bank Gordon E. Yance, First-Knox National Bank - A Division of PNB

Supporting Member ($100 - $174) Ronald L. Adams, Richland Bank-A Division of PNB Gregory J. Agresta, WesBanco Bank, Inc. Douglas P. Ahlers, Versailles Savings and Loan Company Gregory R. Allen, First Federal Bank of the Midwest John R. Allen Esq., The Community Bank - A Division of CSB Stuart H. Anness M.D., Cincinnati Federal Savings and Loan Association Patricia A. Arnett, Liberty National Bank Thomas P. Ash, CFBank Joseph H. Barker, The Antwerp Exchange Bank Company David S. Beckett, LCNB National Bank Robert Bedinghaus, Cincinnati Federal Savings and Loan Association John T. Belser, Citizens Federal S&L Assoc. of Bellefontaine Robert L. Benroth, The Union Bank Company Brian K. Bialik, Home Savings Bank Richard Bissler, Home Savings Bank Amy E. Blankemeyer, The Union Bank Company Tammy J. Bobo, The Hocking Valley Bank Steven R. Bohl, Perpetual Federal Savings Bank John Bookmyer, First Federal Bank of the Midwest Stephen L. Boomer, First Federal Bank of the Midwest Herman E. Borkoski, The Citizens Savings Bank

James E. Bowlus, The Croghan Colonial Bank Carl Bowman, Monroe Federal Savings and Loan Assoc. Edward L. Brady, The Park National Bank Matthew Branstetter, The Citizens Savings Bank Anna Maria Brenneman, Liberty National Bank Richard A. Brinkman Jr., First Federal Community Bank John A. Brown, Unity National Bank - A Division of PNB Jason Buckley, ATM Solutions, Inc. R. Leroy Bumpus, First Federal Savings & Loan Assoc. of Centerburg Douglas A. Burgei, First Federal Bank of the Midwest William J. Burke, American Savings Bank, FSB Patrica A. Byerly, The Farmers & Savings Bank - A Division of PNB James M. Caldwell CPA, Vinton County National Bank James A. Carr, United Bank - A Division of PNB Michael L. Chambers, Richland Bank-A Division of PNB Margaret A. Chapman, Security National Bank - A Division of PNB Gary L. Clay, Van Wert Federal Savings Bank Stephen G. Clinton, First Federal Community Bank Ronald B. Collins, Vinton County National Bank G. Dwayne Cooper, Unity National Bank - A Division of PNB Donald L. Covert Sr., First Federal Bank of Ohio Cynthia L. Crane, The Park National Bank Spencer Cropper, LCNB National Bank Michael T. Cross, First Federal Savings and Loan Assoc. of Van Wert Ester M. Crownover, Vinton County National Bank J. Andrew Czajkowski, First Federal Savings and Loan Assoc. of Van Wert Robert Dameron, WesBanco Bank, Inc. James Damicone, Portage Community Bank Jeffrey A. Darding, Security National Bank - A Division of PNB Peter A. Diehl, First Federal Bank of the Midwest Neil Diller, Second National Bank - A Division of PNB Robert L. Dillhoff, The Union Bank Company Henry C. Dolive, Cincinnati Federal Savings and Loan Association Kevin J. Drees, Versailles Savings and Loan Company David D. Dygert, Farmers Citizens Bank Charles R. Earick, Citizens Federal S&L Assoc. of Bellefontaine William G. Edwards, Perpetual Federal Savings Bank Richard L. Ekin, First Federal Bank of Ohio Thomas J. Elder, The Croghan Colonial Bank Mark L. Erslan, Vinton County National Bank James W. Everson, United Bancorp Inc. Scott A. Everson, The Citizens Savings Bank Leon F. Favede, The Citizens Savings Bank Stephanie Fink, Liberty National Bank Scott C. Finnell, First Federal Community Bank Mark R. Fleck, Mercer Savings Bank

Margaret L. Foley, Security National Bank - A Division of PNB Joan L. Franks, The Park National Bank William M. Garrett Jr., Vinton County National Bank Linda L. Gentile, Valley Savings Bank Eric S. Geyer, First Federal Bank of Ohio John L. Giering, Liberty Savings Bank, F.S.B. Vicky K. Gilbert, The Union Bank Company Mary L. Goddard, Security National Bank - A Division of PNB David Gooch, Richland Bank-A Division of PNB Thomas Goodfellow, Security National Bank - A Division of PNB Debra L. Gordon, WesBanco Bank, Inc. Kenneth G. Gosche, The Farmers & Savings Bank - A Division of PNB J. Richard Gray, First Federal Community Bank Scott Green, The Park National Bank James Greenfield, The Andover Bank Randall M. Greenwood, The Citizens Savings Bank Leonard L. Gundy, First Federal Community Bank Robert C. Haines II, LCNB National Bank Chip Harper, ATM Solutions, Inc. Donald R. Harris Jr., Richland Bank-A Division of PNB Timothy K. Harris, First Federal Bank of the Midwest Ronald J. Hawk, First-Knox National Bank - A Division of PNB Ronald G. Hayes, WesBanco Bank, Inc. Robert W. Hegfield IV, The Andover Bank Paula L. Henderson, WesBanco Bank, Inc. Jesse L. Henson, Perpetual Federal Savings Bank John H. Herron, Standing Stone National Bank John R. Herzig, The Citizens Savings Bank Gary O. Hewitt, The Andover Bank Jeffrey E. Hittle, Second National Bank - ADivision of PNB John L. Hofmann, Citizens Federal S&L Assoc. of Bellefontaine Mark Hogan, Pentegra Retirement Services Ronald E. Holtman, The Commercial and Savings Bank of Millersburg, Oh Mark G. Honigford, The Union Bank Company John M. Hoopingarner, The Citizens Savings Bank Teresa D. Hoyt PHR, Security National Bank - A Division of PNB Jean Hubbard, First Federal Bank of the Midwest Daniel L. Hunt, The Park National Bank Kathryn M. Hunter, Valley Savings Bank Andrew J. Irick, Security National Bank - A Division of PNB John R. Irmscher, Mercer Savings Bank Marilyn K. Jacob, Valley Savings Bank Gerald R. Jenkins, American Savings Bank, FSB Wesley M. Jetter, Second National Bank - ADivision of PNB Samuel J. Jones, The Citizens Savings Bank Larry Kaffenbarger, Security National Bank - A Division of PNB Thomas W. Karr, Farmers Bank and Savings Company William H. Kaufman, LCNB National Bank Linda R. Kay, WesBanco Bank, Inc. spring 2011 Ohio Record

Timothy L. Kelley, The Citizens Savings Bank James E. Kleinfelter, Young & Associates, Inc. Thomas A. Knapke, Mercer Savings Bank Jack Kohl, Home Savings Bank Edward H. Kopf, Cincinnati Federal Savings and Loan Association Richard B. Kotila, The Andover Bank William F. Kramer, Liberty Savings Bank, F.S.B. Thomas L. Krick, Mercer Savings Bank Steve Kurtzman, First Federal Bank of Ohio Brenda L. Kutan, The Park National Bank Thomas D. Lammers Esq., Mercer Savings Bank Dana R. Lawrence, The Union Bank Company Daniel W. Lease, The Croghan Colonial Bank George L. Leasure, LCNB National Bank Elmer K. Leeper, The Citizens Savings Bank Edward A. Leininger, The Farmers & Merchants State Bank W. Douglas Leonard, First-Knox National Bank - A Division of PNB William B. Levering Sr., First-Knox National Bank - A Division of PNB Michael A. Lewis, Home Savings Bank Mike Lieving, Farmers Bank and Savings Company James S. Lingenfelter, The Farmers & Savings Bank - A Division of PNB Thomas J. Linneman, Cheviot Savings Bank Michael A. Lloyd, The Citizens Savings Bank Enos L. Loader, First Federal Community Bank Peter H. Loal, Valley Savings Bank Thomas P. Loftis, Security National Bank - A Division of PNB Max E. Long, The Union Bank Company Christopher H. Lute, American Savings Bank, FSB Eloise L. Mackus, CFBank Beth Malaska, Richland Bank-A Division of PNB Bryan L. Marshall, Liberty National Bank William U. Martin, Mercer Savings Bank Mark E. Masters, Mechanics Bank Carl H. Mayer Jr., The Park National Bank Robert E. McClure, The First Citizens National Bank of Upper Sandusky William T. McConnell, The Park National Bank J. Stephen McDonald, Richland Bank-A Division of PNB Steven McDonald, Home Savings Bank Leroy F. McKay, LCNB National Bank Diarmuid J. McSweeney, First Federal Savings and Loan Association James Meagle Jr., The Settlers Bank Larry F. Meredith, American Savings Bank, FSB Matthew R. Miller, The Park National Bank Grant Milliron, Richland Bank-A Division of PNB Barbara Mitzel, First Federal Bank of the Midwest Shirley Monica, Richland Bank-A Division of PNB Robert A. Montagnese, First Federal Savings and Loan Association Richard Morgan, American Savings Bank, FSB Larry A. Morrison, Farmers Citizens Bank Larry J. Mosher, The First National Bank of Dennison Richard A. Mosier CPA, Mercer Savings Bank

Ohio Record spring 2011

Richard C. Mountain, Liberty Federal Savings Bank Dennis J. Muzilla, First Federal Savings and Loan Assoc. of Lorain R. Douglas Naylor, The First National Bank of Blanchester Hobert H. Neiswander, Perpetual Federal Savings Bank Andew J. Nurre, Cincinnati Federal Savings and Loan Association Heather M. Oatman, The Union Bank Company Kenneth A. Parr Jr., United Bank - A Division of PNB Noel C. Parrish, First-Knox National Bank - A Division of PNB Jeffrey A. Parton, Richland Bank-A Division of PNB Andrew F. Phillips, The Citizens Savings Bank Jeffrey L. Point, The Union Bank Company Peter J. Rafaniello, The Union Bank Company Karen E. Rafinski, Security National Bank - A Division of PNB Mark R. Ramser, First-Knox National Bank - A Division of PNB Brian R. Renner, First Federal Savings and Loan Assoc. of Van Wert Lewis R. Renollet, The Union Bank Company James N. Reynolds, The Union Bank Company Robin L. Rhodes M.D., The Citizens Savings Bank Karen K. Rice, The Park National Bank Harold Edward Rigel, The Union Bank Company Charles H. Rinehart, Liberty Savings Bank, F.S.B. James L. Rohrs, First Federal Bank of the Midwest Dennis E. Rose Jr., First Federal Bank of the Midwest Kent E. Roth, The Farmers & Merchants State Bank Ronald A. Roth, Cincinnati Federal Savings and Loan Association Keith A. Rothe, First Community Bank Tom C. Ruetenik, Security National Bank - A Division of PNB Errol C. Sambuco, The Citizens Savings Bank Vickie A. Sant, First-Knox National Bank - A Division of PNB Jack Schneider Jr., Home Savings Bank Norman V. Schnipke, The Union Bank Company John A. Schuler, Cincinnati Federal Savings and Loan Association Robert M. Schulte, The Union Bank Company Joseph W. Schwarz, LCNB National Bank Carmen L. Scott, Citizens Federal S&L Assoc. of Bellefontaine Tom Selock, North Valley Bank Robert D. Sensel, First Federal Community Bank R. Michael Shannon, The Park National Bank Marybeth Shunck, First Federal Bank of the Midwest Robert Jeffrey Siebenthaler, Liberty Savings Bank, F.S.B. Charles G. Skidmore, Cincinnati Federal Savings and Loan Association Linda H. Smith, Richland Bank-A Division of PNB Sheryl L. Smith, Richland Bank-A Division of PNB

R. Daniel Snyder, First-Knox National Bank - A Division of PNB Robert G. Springer, The Park National Bank Marvin J. Stammen, Second National Bank - ADivision of PNB C. John Stechschulte, The Union Bank Company Jack A. Stephenson, American Savings Bank, FSB Dan M. Stevens, Community Savings Bank Michael D. Stewart, Liberty Federal Savings Bank Scott R. Stiegemeier, Home Savings Bank C. Edward Stocksdale, Perpetual Federal Savings Bank Sam Strausbaugh, First Federal Bank of the Midwest Julie L. Strohacker, The Park National Bank John E. Swallow, Second National Bank - ADivision of PNB Craig A. Sweeney, The Hocking Valley Bank Charles L. Sweeting, Perpetual Federal Savings Bank Robert L. Taylor, The Andover Bank J. Douglas Temple, Mercer Savings Bank Matthew C. Thomas, The Citizens Savings Bank Peggy Tidwell, CFBank George C. Timmer, Monroe Federal Savings and Loan Assoc. David L. Trautman, Park National Corporation Sandy S. Travis, The Park National Bank Paul E. Turner, The Park National Bank Chris D. Tuttle, The Farmers & Savings Bank - A Division of PNB Stan Uchida, The Park National Bank John B. Uible, The Park National Bank R. Steven Unverferth, The Union Bank Company Jeffrey K. Urban, First Federal Community Bank of Bucyrus Joseph P. Valore, Perpetual Federal Savings Bank Stephen E. Varckette, The Andover Bank Thomas A. Voigt, First Federal Bank of the Midwest Charles T. Walker, First Federal Bank of Ohio Chet Walthall, Security National Bank - A Division of PNB Robert A. Warren, Security National Bank - A Division of PNB Thomas A. Weithman, First Federal Bank of Ohio Russell S. White, First Federal Savings & Loan Assoc. of Centerburg William E. Whitmoyer, WesBanco Bank, Inc. Barbara A. Wilson, The Park National Bank Douglas E. Wilson, United Bank - A Division of PNB Jeffrey A Wilson, The Park National Bank Lisa Wiswasser, The Union Bank Company Bernard H. Wright Jr., LCNB National Bank Bruce W. Wright, Valley Savings Bank Terri L. Wyatt, Security National Bank - A Division of PNB Michael R. Zedaker, Van Wert Federal Savings Bank Susan K. Zimmer, Liberty National Bank Ronald L Zimmerly, Liberty National Bank

ANDOVER

DELAWARE

Andover Bank announced that Kimberly Giddings was promoted to vice president of branch administration and Robert Holdridge was promoted to assistant vice president/ controller. Kimberly

The Delaware County Bank and Trust Company’s Frank Reinhard was recently named the 2010 Ohio Statewide Development Corporation’s Banker of the Year. The award recognizes a select few lenders who have risen above their peers in creating awareness and utilizing the financing programs offered by OSDC. Robert Holdridge

Giddings

CLEVELAND The Federal Reserve Bank of Cleveland appointed Peggy Velimesis to its newly established Office of Minority and Women Inclusion. KeyCorp announced the following promotions: Tim Lathe Tom Tulodzieski Tim Lathe to the newlycreated position of executive vice president and sales executive, Key Community Bank; Tim Swanson to lead Key Private Bank, filling Lathe’s position; and Tom Tulodzieski to Great Lakes Regional President, filling the position recently vacated by Bill Koehler, who was recently named President of Tim Swanson Key Community Bank. Lathe and Swanson report to Koehler.

MARIETTA Peoples Bancorp Inc. announced Charles W. “Chuck” Sulerzyski to president and CEO and Michael W. Hager to executive vice president, human resources.

MOUNT VERNON First-Knox National Bank announced that Deborah S. Dove has been promoted to assistant vice president commercial loans and Todd Hawkins has been promoted to banking officer trust and investment services.

PORTSMOUTH American Savings Bank, FSB, announced that Jackie Summers was promoted operations supervisor and James A. Younkin was promoted to vice president, branch operations. Jackie Summers James A. Younkin

COLUMBUS The Arlington Bank announced that Rod Lake was elected as the 2011 president of the Columbus Mortgage Bankers Association. Great Lakes Bankers Bank Howard T. announced that Howard T. Rod Lake Boyle, II Boyle, II, president and CEO of Home Savings Bank in Kent, joined the board of Great Lakes Bankers Bank. Boyle will also serve on the boards of Bankers Bancshares, Inc. and F & M Credit Services, Inc. Huntington Bancshares Incorporated appointed Steven G. Elliott, retired senior vice chairman of BNY Mellon, to its board. James Malz JPMorgan Chase & Co. named James Malz head of its Columbus market and top Ohio officer.

WASHINGTON D.C. The Federal Reserve Board announced Howard T. Boyle, II, president and CEO of Home Savings Bank in Kent was appointed vice president of its Community Depository Institutions Advisory Council.

WESTFIELD CENTER Westfield Bank has named five new market leaders, including Krista Dobronos, Robert Hunter, Kurt Kappa, Randall Smith and Matthew Sprang to senior vice presidents and market leaders to

their respective markets.

YOUNGSTOWN The Home Savings and Loan announced the hiring of Barbara Radis as senior vice president, retail banking and Colleen Scott as vice president, marketing.

spring 2011 Ohio Record

Focus On… American Savings Bank, FSB, Portsmouth Mike Gampp recently succeeded former OBL Chairman Bob Smith as president of American Savings Bank, FSB. Gampp has been with American Savings Bank since 2000 and was promoted to executive vice president at the end of 2009. As president, Gampp will oversee the entire administration of the institution. Mike is a graduate of Minford High School; he obtained his undergraduate degree in finance from The Ohio State University and received his MBA from Morehead State University. In addition, he is a Certified Public Accountant. As well as his duties at ASB, Mike is also an adjunct professor at and has sat on fundraising committees for Shawnee State University. He is active in many community organizations, including Rotary, Portsmouth Area Chamber of Commerce and serves on many area boards, including Catholic Social Services and Columbus Catholic Foundation. Mike is currently serving as president of the Scioto Area Foundation, Mike resides in South Portsmouth, Kentucky, with his wife Lora and daughter, Jaid. “Mike has a great vision for American Savings Bank’s future,” Smith said, “I can see that the staff and management of ASB are excited to share in his vision as am I as a shareholder of the Company.”.

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It’s about stimulating Interest in your products

It’s about creating Desire for your services

That’s where Ohio Record comes in

To reach over 4,000 key banking decision-makers contact James Thurston at (614) 340-7621 or jthurston@ohiobankersleague.com.

MEMBERSHIP has its Benefits With new free online compliance training and access to the best in consumer compliance consulting, OBL membership has its benefits. To learn more contact James Thurston at (614) 340-7621.

Ohio Record spring 2011

It’s all about choice. We’re flexible – You decide. In today’s competitive marketplace, benefits have become as important as compensation when hiring or retaining the best and brightest employees. That’s why we believe it’s important for you to have as much input as possible when it comes to designing your bank’s employee benefits program. With the Ohio Bankers Benefits Trust, you can pick and choose one, all, or a combination of plans you want to offer your employees and determine how you want to allocate premium contributions. Plan options mean greater cost control. For more information about the OBL health plan options contact: Gary Sutter at 614-340-7615 or gsutter@ohiobankersleague.com

OHIO BANKERS BENEFITS TRUST

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