Ohio Record Magazine - Spring 2024 - Official Magazine of Ohio Bankers League

The Official Magazine of the Ohio Bankers League

OHIO RECORD SPRING 2024 ISSUE

HOW TO ENGAGE WITH YOUR TALENT, YOUR COMMUNITY AND YOUR ASSOCIATION Featuring an interview with new OBL Chair Ron Zimmerly

The Engagement Edition

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The Official Magazine of the Ohio Bankers League

OHIO RECORD The Engagement Edition IN THIS ISSUE | SPRING 2024

FEATURED ARTICLES

ARTICLES

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12 OBL LEGAL DEFENSE FUND - A SWORD AND SHIELD FOR THE INDUSTRY

Over the Horizon 15th Annual OBL Economic Summit Provides Forecast for the Year

10 Challenging the Next Generation 15 CEO Symposium Helps Ohio Executives Build Momentum

20 Tapping Into the Power of Digital Payment Solutions

22 Branch Optimization: The Art of Refreshing Receiver Branches for Success

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24 How to Attract Passive Job Candidates

AN INTERVIEW WITH THE NEW OBL CHAIR, RON ZIMMERLY

28 Community Banks Discover the

35 TOP 3 REASONS WHY NEW HIRES LEAVE...AND HOW TO TURN AROUND YOUR TURNOVER!

in Banking and Finance

Benefits of Collaborative Loan Portfolio Management

32 Advocacy Builds Valuable Relationships 38 Banking Calendar 41 Around the Industry 42 The Top Ten

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OVER THE HORIZON I’m posted up at a Bob Evans on Rt 30 drafting this column in between bank visits. To do my job well, it is a priority to travel the state meeting with bankers and my not-quite seven-year-old car has 141,000 miles as a testimony. Being out and about with our great members is the most enjoyable part of my job. So many of you have become close friends, and we are honored to be valued partners as you serve your community. Hearing from you about hot buttons, as well as opportunities, are crucial so your OBL team can effectively serve its members.

It's all about engagement!

This year, we are making a concerted full-court push to step up engagement. As referenced in my column over the past year, we engaged our governing boards in developing a new 2024-2026 strategic plan. It shouldn’t come as a shock that a trade association is identifying a need to increase engagement. In fact, that is what they do by definition – engage with and on behalf of its members. We are humbled by the overwhelming support and participation from the OBL membership, yet in a consolidating industry we can’t get complacent. Plus, there is just something in my DNA that causes me to constantly tweak and tinker. Ohio bankers’ engagement across the “three legs” of the OBL mission – government

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relations, professional development and product/service solutions – is crucial for the membership’s ability to succeed and thrive.

Engagement is a two-way street, with member bankers engaging with the 21 employees who comprise the OBL and us with the employees and directors of our member banks. Like so many things in life, with an association membership, the more one puts into it the more they will get out of it.

This is a big motivator in our decision to launch a series of awards this year. First, we want to celebrate everything that is great about Ohio’s banking industry.

Second, we are looking to spotlight opportunities for involvement since we are often asked how else a member bank might get engaged. We love when a bank asks, “what does a similarly sized bank do with OBL?” The OBL also has other things in the works that will raise awareness on ways a bank can leverage more of what is offered to strengthen its membership ROI. Engagement Exhibit 1 – In the GR Fight There appears to be no end in sight for the regulatory activism coming out of the national banking regulators.

Last year, OBL submitted a dozen comment letters on a variety of issues we believed were problematic for our membership. We signed on to at least another dozen letters drafted by the ABA with our sister associations from around the country.

The most egregious recent example of a prudential regulator operating well outside their scope is the Federal Reserve Board of Governors’ draft rule on debit interchange issued last fall. There was no question OBL would weigh in. We wrote a comment letter to Federal Reserve Bank of Cleveland President Loretta Mester, expressing our concerns on why the Fed has no business going down this path. What’s noteworthy about this was OBL secured signatures of the other bankers associations, independent bankers associations and credit union leagues in the Fed’s Fourth District (Ohio, Kentucky, Pennsylvania and West Virginia). I like to believe that this was helpful in receiving a ninety-day extension for the Fed to gather further input.

Now we need bankers to share their concerns with the Fed. The delayed comment deadline affords bankers the opportunity to counter the false claims by the merchants.

The caps on debit interchange they seek will negatively harm bank customers and it is a ruse to think decreasing merchant fees will translate into lower prices. If you haven’t already done so, please visit the OBL website to submit your personalized letter. From there, OBL will then submit a comment letter directly to the Federal Reserve Board of Governors reiterating the harm the Reg II proposal would have.

Advocating on behalf of the membership is mission critical.

I’m grateful OBL’s Board of Directors views governmental advocacy as a participatory sport. They prioritize having four registered lobbyists on staff to ensure we are constantly engaged with policymakers at the state and federal levels. By rolling up our sleeves, we develop expertise on the industry’s most important issues, and we can marshal memberships’ direct engagement in the process. It is truly hand-in-glove versus letting someone else speak for the Ohio banking industry.

Unfortunately, suing regulators is becoming common.

We can’t shy away from these harmful swipes the government is taking at our industry. Elections have consequences, and when activists are in control who seemingly view the banks as a public utility that ought to be giving away services, we will fight back. As I’ve said more times than I can count and will continue to rail on until the day I retire, OBL clearly advocated that Dodd-Frank (especially the CFPB) would directly impact Ohio’s community banks. Others were happy to grab the Gutierrez Amendment that changed the

FDIC assessment formula and stay silent on DoddFrank since they convinced themselves only the largest banks would be penalized. Yet, they were foolishly shortsighted and outfoxed by a shrewd Congressman Frank and activist regulators. With each bank visit, I get an earful on regulatory trickle down and that community bank exemptions from such things as the Durbin Amendment and the CFPB are fiction. How is your 1071 planning going?

For this reason, engagement with OBL in our annual Fly-In is more crucial than ever. The Ohio Congressional Delegation, both Senators and all the regulatory agencies, need to hear first-hand accounts from bankers.

If you missed the March Fly-In, we hope you will join us on smaller, targeted trips to Washington, D.C. later this year. Stay tuned!

Engagement Exhibit 2 – Banker Professional Development & Networking We are proud to boast OBL has three full-time education managers on staff, and they each previously worked for a bank. Whether it is professional development geared toward those in the c-suite, keeping bank directors ahead of the curve, indoctrinating entry-level employees in all things banking or those in between, we have programs available. Many are held in person, giving attendees opportunities to build their networks and learn through others. We also offer consultations whereby the OBL team can design in-bank programming to meet your particular needs. In addition, we have a lengthy portfolio of online learning offered through partnerships with OnCourse, GSB-Wisconsin, ABA and FinPro, to name a few.

Additionally, OBL offers several opportunities to gather bank presidents/CEOs in monthly virtual roundtables, and these asset-based peer groups also meet in-person semi-annually. OBL also holds meetings regionally around the state and will again this spring extend an open invite

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top in delivering unbeatable value to banks and financial support to the OBL that earn higher status as Endorsed Business Partners. The various service providers enrich the Ohio banking industry in so many ways, and we are glad to promote their benefits. They are our first stop for knowledge experts at OBL education programs. It is a win-win for OBL member banks and services providers.

Find these solutions on OBL’s website.

to every OBL member banker. These are great ways to network, as well as stay abreast of the latest industry developments in government relations, professional development and product/service solutions.

We hope to see many c-suite bankers at this year’s OBL CEO Symposium on May 14 and 15. As I visit presidents and CEOs in their banks, they tell me that this event is an annual highlight. I couldn’t agree more and promote it as such when visiting with bankers who have never attended. OBL’s CEO Symposium is a noon-to-noon educational program with relevant speakers covering banking topics and the right balance of networking and social time.

For the state-chartered banks, we really hope to see members of your c-suite and directors at the upcoming FDIC Directors College on April 23. OBL will again be co-hosting with the Community Bankers Association of Ohio. You know first-hand regulatory expectations of bank directors continue to mount. Current allegations of unfair and deceptive practices carry high reputational and monetary costs. Corporate governance is a keen area of interest with risk management and board fiduciary duties as specific areas of focus. This program will better arm bank directors, along with senior bank officers, to navigate the challenging regulatory environment.

Engagement Exhibit 3 – Product/Service Solutions In OBL BankServices, the Association works conscientiously to support sustainable independence for community banks by identifying or engineering solutions that enable those banks to cost-effectively stay ahead of developing industry trends while also helping their bottom lines. A broad array of service providers is strategically pursued as Affiliate Members to provide a greater breadth and depth of product and service options to meet diverse community bank needs. We currently have more than 100 companies that have joined OBL to ensure sustainability in Ohio’s community banks. There are another three dozen service providers that rise to the

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The Ohio Bankers Benefits Trust (OBBT) is a powerful Member Bank asset that stands apart from the other services due to its 70 years of success and unique structure as a Multiple Employer Welfare Arrangement Trust. This cost-effective health insurance option is a game changer, especially in more rural communities. With a leadership change in 2021, new approaches were taken to smartly grow the number of plan participating banks.

That success remains strong. The membership value proposition has grown clearer with more banks joining the Trust, leveraging these benefits to attract and retain top talent within their own organization.

Bankers Alliance is another type of strategic product/ service partnership OBL offers. The Association is proud to be a shareholder in powerful compliance solutions.

Valuation Analytics is yet another example. OBL rolled out the VA portal six years ago. It combines valuation and compliance tools needed for the entire lending process.

Each bank can access its own dashboard, customizable by appraisal products to complement its own lending environment. This vendor and appraisal management system allows simultaneous ordering, tracking and reviewing of all valuation products and services. Members can manage and utilize their own appraisal panel or access appraisers nationwide through VA partners.

Active engagement in OBL yields a greater membership ROI. The OBL team and I are honored to deliver so many opportunities for Ohio bankers to be engaged for the benefit of their career growth and bank health. You have our continued commitment to enrich your ability to effectively serve your communities as we look further over the horizon. I look forward to engaging with each of you at the OBL CEO Symposium, May 14 and 15, and at the IBA/OBL Convention at the Omni Resort, Amelia Island on June 24-27.

Michael J. Adelman President & CEO, Ohio Bankers League

Visit www.ohiobankersleague.com for more information.

ASSOCIATION STAFF Michael Adelman President & CEO madelman@ohiobankersleague.com (614) 340-7616

4215 Worth Avenue, Suite 300 Columbus, OH 43219 Fax (614) 340-7596

The Ohio Record is published quarterly by OBL BankServices.

POSTMASTER: Send address changes to Ohio Record at the address listed above.

Statements and opinions expressed in Ohio Record are not necessarily those of the OBL.

Gauri Airi Executive Director, Ohio Bankers Benefits Trust gairi@ohiobankersleague.com (614) 340-7598 Brenda Arnold Products & Services Manager, OBL BankServices barnold@ohiobankersleague.com (614) 340-7620 Don Boyd Vice President of State Government Relations and General Counsel dboyd@ohiobankersleague.com (614) 340-7608 Michelle Crume Senior Vice President, OBL Executive Director, OBL BankServices mcrume@ohiobankersleague.com (614) 340-7622 Taylor Daniel Executive Assistant tdaniel@ohiobankersleague.com (614) 340-7602

Stephanie Elam Plan Coordinator & Customer Service Specialist selam@ohiobankersleague.com (614) 340-7591 Rita Hinkle Administrator, OBBT rhinkle@ohiobankersleague.com (614) 340-7609 Daniel Holstein, CPA Senior Accountant dholstein@ohiobankersleague.com (614) 340-7604 Paige Houlihan Products and Services Coordinator, OBLBankServices phoulihan@ohiobankersleague.com (614) 340-7613

Julie Kiplinger Education Manager jkiplinger@ohiobankersleague.com (614) 340-7612 Evan Kleymeyer Senior Vice President of Government and External Relations ekleymeyer@ohiobankersleague.com (614) 340-7605 Kimberley Mason Higher Education Partnership Manager kmason@ohiobankersleague.com (614) 340-7601 Stephen Mentzer Database Manager smentzer@ohiobankersleague.com (614) 340-7607

Sarah Husk Education Manager shusk@ohiobankersleague.com (614) 340-7610

Jennifer Osburn, CPA CFO, Chief Administrative Officer josburn@ohiobankersleague.com (614) 340-7606

Audra Johnson Director of Communications ajohnson@ohiobankersleague.com (614) 340-7621

Megan Peiffer Education Specialist mpeiffer@ohiobankersleague.com (614) 340-7618

Susan Poling Jones Professional Development Director spoling@ohiobankersleague.com (614) 340-7611

Christine Zeek Employee Benefits Manager, OBBT czeek@ohiobankersleague.com (614) 340-7617

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OBL President & CEO, Mike Adelman, sits down with Loretta Mester for a Q&A Session.

Bill Greiner gives the audience his economic predictions for 2024.

15TH ANNUAL OBL ECONOMIC SUMMIT PROVIDES FORECAST FOR THE YEAR February 6, 2024 marked the 15th Annual OBL Economic Summit. OBL was thrilled to welcome over 215 bankers to the Columbus Convention Center to learn more about the future of the economy in Ohio, the U.S. and beyond. With keynotes Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland and William Greiner, Chief Economist at Mariner Wealth Advisors, this proved to be an incredible program.

Loretta Mester told our Ohio bankers that economic and monetary policy are in a good place and that risk management will be the hallmark of monetary policy moving forward. The news on inflation is encouraging and that output and employment will moderate this year with inflation continuing to trend toward the 2% goal.

William Greiner gave us insights into 2024. His projection is that 2024 will be a year of slowness. He believes there will be a positive economy in 2024 but softening compared to 2023. His outlook shows the inflation rates headed toward the goal of 2% and that we could see potential interest rate decreases this year, maybe as many as four on the horizon.

The event would not have been complete without Ray Langen, Regional Director from StrategyCorps, leading the way as emcee.

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Loretta Mester addresses the crowd and discusses monetary policy and her predictions for inflation in 2024.

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Reach out to Gauri Airi at gairi@ohiobankersleague.com for more information and to get started!

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CHALLENGING THE NEXT GENERATION 2024 NEXT GEN CONFERENCE COMING JUNE 6 & 7 Pursuing business and personal growth can be an exciting endeavor. However, it can also feel challenging to remain motivated to take risks or try new things in hopes of succeeding. This can be even more true when rising young leaders in an organization take on new roles to prepare them for the future of the industry. How can they prepare?

The 2024 OBL Next Gen Conference, June 6 & 7 in Columbus, will challenge attendees to take “The Leadership Challenge.” Opening keynote workshop leader Sean Payant, Senior EVP & Chief Strategy Officer, Haberfeld Associates, will guide them through the process.

“Our banks and our customers succeed when everyone on the team executes their roles at a consistently high level,” said Payant. “But extraordinary execution doesn’t happen automatically. Our people need direction, support and encouragement. This is the leadership challenge.”

Payant’s session will identify and discuss key leadership practices which, when utilized, bring out the best in people and increase the ability to serve customers and co-workers at the highest level. When attendees leave the program, they will have learned strategies to craft vision, build alignment and champion execution – in other words – each young leader will have their own personal action plan ready to implement back at the bank.

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Other conference highlights include newly designed Roundtable Discussions with a focus on topics such as Leadership Skill Development, Early Career Opportunities and Challenges, Creating Efficiencies, Public Relations and Technology Best Practices, just to name a few.

These discussions, featuring peer sharing, will be led by OBL Next Gen Advisory Board members, who can shed light on these important issues, while sharing their own tips and tricks in an effort to mentor attendees.

Attendees will also have an opportunity to create their own agenda as they decide which concurrent industry-focused breakout sessions will mean the most to them, and will have opportunities to network with other conference-goers. Visit the OBL website for testimonials and final agenda details.

Questions may be directed to OBL Education Manager Sarah Husk at shusk@ohiobankersleague.com.

The OBL Challenges Each Organization to Send at Least One Rising Star to the Program in 2024!

Thank you to our Next Generation Advisory Board for their insights in planning the Next Gen Conference Colton Barnhart Peoples State Bank Lindsay Cloud Southern Hills Community Bank Chris Fisher, Board Chair LCNB National Bank

Attendees at the Next Gen Conference network and interact with one another during a break in programming.

Scott Gnau First Federal Savings & Loan Lakewood Rob Haley The Hocking Valley Bank Christina Hammock First Federal Community Bank of Bucyrus Nate Jordan Westfield Bank Sabra Kershaw First Commonwealth Bank Matt Kocin Banc Consulting Partners

Tables often work together through different scenarios during the conference, making for meaningful dialogue and the exchange of ideas.

Brian Lowe First Financial Bank Sara McCarty The Portage Community Bank Renee Murphy First Mutual Bank, FSB Paul Revelson 1st National Bank Shalana Shreffler First State Bank Amy Vasquez The Union Bank Company Jennifer Vastano The First National Bank of Pandora Kelsey Wells The Citizens National Bank of McConnelsville

A group of attendees has fun at the after hours reception!

Members of the OBL Team enjoy the Conference!

Courtney Wright The Savings Bank

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OBL LEGAL DEFENSE FUND

A SWORD AND SHIELD FOR THE INDUSTRY With legislative stagnation in congress, it is clear that trade associations like OBL will increasingly need to rely on litigation to keep regulators in check and defend the industry. It is a sad state of affairs when the judicial process is actually faster and more effective than the legislative. A recent saying going around is, "Legislate for show, Litigate for dough." While this is a bit cynical regarding the value of legislative advocacy and government relations, it shows how some are viewing the policymaking arena at this point. To be clear, there is still significant impact through legislative advocacy, and if you are not at the table you end up on it, but the industry would be ignoring the growing importance of the judicial area to its detriment. This is why the OBL is taking bold steps to ensure the industry remains well represented across ALL branches of government, Executive, Legislative, and Judicial.

To this end, the OBL Board of Directors authorized the creation of a restricted fund within OBL, aptly named the OBL Legal Defense Fund, to provide another avenue for the industry to come together to advance and protect banking in Ohio. The fund allows banks to make voluntary contributions to pool money so that it is there and ready as issues arise that require legal action on behalf of the industry. This can include OBL taking legal action on behalf of Ohio's banks, as we have seen other states and national bankers associations do on a variety of issues, or weighing in with an amicus curiae, or friend of the court, brief to highlight the impact case will have on the broader banking ecosystem as OBL recently did to protect banks' ability to utilize and rely on personal guarantees in commercial lending which is detailed further below. Rather than trying to determine whether the funds are available to weigh in on these issues, especially given the extremely quick deadlines for filing briefs or responding, this allows to have a ready-made reserve to utilize for these purposes as the issues arise.

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The OBL Legal Defense Fund is meant to serve as both a sword and a shield for the industry in the legal arena. The funds contributed by members, which can be personal or corporate, can then only be utilized for the specific purpose of legal expenses related to protecting the industry. Legal bills for an amicus brief can quickly rise into the tens of thousands of dollars and the amount necessary to be the lead plaintiff in a lawsuit can easily get into six figures. Once again, the OBL Legal Defense Fund allows the industry to make contributions to build up the balance over time so that the funds are ready and available rather than trying to raise the money all at once when an issue arises.

In addition to working collaboratively with other state associations and national bankers associations to reign in regulatory overreach, OBL must remain active defending banks in state courts. The addition of party affiliation for the Supreme Court of Ohio and Ohio appellate courts has so far been a net positive for the business community.

However, there are certain appellate courts that will likely always take a more progressive approach to the bench and, given district makeups, will continue to trend in that direction. As such, the industry must rely more than ever on the Supreme Court of Ohio to remedy judicial overreach.

In Ohio, only three percent of jurisdictional appeals, or appeals which the court has discretion whether to accept, are accepted for review. This means that amicus curiae briefs, friend of the court briefs, are even more important to flag cases for the Justices, who vote whether to accept or reject the discretionary appeals, which cases will have a dramatic impact on the industry. This is where OBL can have the most impact—by bringing an industry wide view to individual cases and explaining the broader impact.

To this end, earlier this year, Ohio Bankers League led an industry coalition including the OBL, the American Bankers Association, and the Ohio Credit Union League in

submitting an amicus brief to the Supreme Court of Ohio defending banks’ ability to utilize guaranties in commercial lending in the case of Huntington v. Schneider, Case No. 2024-0208. The brief, prepared by Frost Brown Todd LLP, appropriately summarized the issues as follows: “The ramifications of this case on Ohio’s lending industry can hardly be overstated. The First District rolled back longstanding precedent and industry practice to hold that guarantors who guarantee payments when due and payable are sureties instead.

In so doing, the court retroactively transformed most existing guaranties to suretyships—effectively abolishing the longstanding distinction between the two concepts under Ohio law and creating enormous uncertainty for the financial services industry. The court then compounded its error by imposing increased duties on lenders toward sureties, thereby creating additional obstacles to commercial lending.

development. If this decision stands, it will create significant new collection risks for financial institutions, reduce the availability of credit or make it significantly more costly, and undermine the value of existing loan portfolios. Thus, not only will the First District’s judgment hurt Ohio’s financial institutions, it also will impact Ohio’s economy by restricting the flow of commercial capital. It is vital that this Court accept this case for review.”

As OBL continues to grow its legal presence on behalf of the industry to ensure that those the laws OBL has fought so hard on behalf of the industry to pass or defend against are appropriately interpreted and upheld, banker buy-in is critical to make sure the resources are there to adequately engage in this arena. If you or your bank is interested in getting involved with the OBL Legal Defense fund, would like more information, or would like to make a contribution, please contact OBL General Counsel Don Boyd for more information.

Guarantors are essential to the commercial lending industry and Ohio’s economy because they make it financially possible for financial institutions to lend money to small businesses, startups, expansions, and other high risk/reward endeavors. By effectively invalidating standard guaranty agreements, the First District eviscerated this important tool of economic

Don Boyd VP, State Government Relations & General Counsel, Ohio Bankers League dboyd@ohiobankersleague.com

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CEO SYMPOSIUM HELPS OHIO EXECUTIVES BUILD MOMENTUM Anyone who has held an executive position in the banking industry knows that at times, it can feel like you are balancing on the edge of a cliff – waiting to see if rates will rise or fall … if retention issues are here to stay … or what constantly shifting technology or fraud scheme will come next. But what if you were not only balancing on the edge of this cliff theoretically, but actually sleeping there?

The 2024 OBL CEO Symposium opening keynote presenter Manley Feinberg knows all about sleeping on the side of a mountain – and knows all about the feeling of the unknown as you teeter between solid ground – and falling off that cliff.

Feinberg spent 11 years with Build-A-Bear Workshop where his leadership direction helped take the revolutionary retail concept from 42 stores to 425 worldwide – and growth from $55 million to more than $474 million. His keynote session, Build Breakthrough Momentum in the Storm of Chaos, will help individuals and teams deepen their commitment, build momentum, and achieve breakthroughs in even the most challenging circumstances.

Additional general sessions and networking opportunities will be available.

Check the website for complete agenda details and register today.

This annual premier OBL event, held May 14 & 15 at the Hilton Columbus at Easton, is designed for executives and those in succession roles who will benefit from business lessons like Feinberg’s, as well as from closing keynote presenter Andy Fastow, former CFO of Enron. Fastow, who served six years in federal prison after securities fraud, will tell his story as he makes observations about how our biases impact decisions in grey areas, preventing us from seeing risk – leading to problematic decision-making.

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BANK CEO PRIORITIZES COMMUNITY, RELATIONSHIPS AND ALWAYS DOING RIGHT THING

AN INTERVIEW WITH THE NEW OBL CHAIR, RON ZIMMERLY With his Grinch tie on and a juxtaposing smile on his face, Ron Zimmerly was passed the gavel to join an elite group of bankers before him, becoming the 2024 OBL Board of Directors Chair. When asked why he was wearing the festive holiday garb, he said that his wife tells him each year that he is a Grinch and that he, jokingly, tries to cancel Christmas each year! But all jokes aside, everyone in the room knew that Ron Zimmerly was no Grinch, just a dedicated banker who cares deeply about his team at The Middlefield Banking Company, his family and those that have helped champion his career, including those at the Ohio Bankers League.

OBL Director of Communications, Audra Johnson, sat down with Ron Zimmerly to discuss his team, garner some advice for young bankers and find out what led him to becoming the Chief Executive officer of a $1.8 billion dollar bank.

Audra: Did you always want to be in banking?

Ron: Yes, actually I did. I went to college at The Ohio State University where I studied Agriculture Economics with a specialization in Finance. I wanted to be a

16 | OHIO BANKERS LEAGUE

commercial and agricultural lender. After college I began my banking career as a part-time teller. I knew I had to get my foot in the door somewhere if I hoped to accomplish my goals. I took many steps from there, moving up through the bank and attending the Graduate School of Banking at Madison, Wisconsin, to continue to hone my skills as a banker.

Audra: What do you see as the strongest differentiator in Community Banking today?

Ron: The strongest differentiator today is that community bankers have a clear understanding of their communities.

This entails more than just achieving success in banking; it encompasses fostering the prosperity and growth of their communities as well.

Audra: I can tell that your team means a lot to you. How do you find talent that fits your company culture?

Ron: Middlefield Bank has been very fortunate to attract and retain exemplary employees who strive to provide the best community banking experience for our

Posing for a photo at the 2024 Economic Summit is Mike Adelman, President and CEO of the Cleveland Federal Reserve Loretta Mester and Ron Zimmerly.

customers and communities. They understand what we are trying to do and make it a priority to serve our mission. It is discussed in the interview process, and it is expected throughout their career that they live and believe in our values as a community bank.

Audra: What would your advice be if someone wanted to know how to have a successful career in banking and how would one measure that success?

Ron: I would say that having mental fortitude, patience, the ability to adapt quickly, willingness to see the good in people, and the proficiency to realize and embrace change would set you up for a successful career. The measurement for that success would simply be a great sense of accomplishment. It is an internal feeling of knowing you have done the right thing for the right reasons.

Audra: What keeps you up at night as a CEO of an almost two-billion-dollar company?

Ron: Unfortunately, bankers don’t get much sleep right now! I would say funding concerns and bank liquidity, continued government overreach with community

“The strongest differentiator today is that community bankers have a clear understanding of their communities. This entails more than just achieving success in banking; it encompasses fostering the prosperity and growth of their communities as well.”

banks, the economic uncertainty, cybersecurity, and being lumped in with larger regional banks, believing we have the same CRE exposure as they do. It is a precarious time in banking and Regulators seem to have their own agenda.

Audra: As a CEO, what aspect of your business takes up most of your time?

Ron: The majority of my time is spent communicating with staff, shareholders and institutional investors.

Audra: What is one piece of advice you would give to future leaders?

Ron: Believe that you can achieve your goals and never stop working until you have succeeded. Once you've SPRING 2024 ISSUE

| 17

About The Middlefield Banking Company: Recognizing the need for a local bank within the Middlefield community, a group of local businessmen met in early 1901 to fulfill this need. On September 16, 1901, The Middlefield Banking Company was opened with an authorized capital of $25,000.

From these humble beginnings, the Bank has continued to grow and expand to better serve its customers.

The most recent expansion came with the acquisition of Liberty National Bank in December 2022, increasing the market size and branch network across the Central and Western Ohio with the addition of six branches located in the communities of Ada, Bellefontaine, Kenton, Marysville, and Westerville, Ohio. As a result, Middlefield now operates a total of 21 full-service banking centers across a 12-county footprint along with a loan production office in Mentor, Ohio.

done that, set new goals to go after and never stop. And, treat customers and staff with respect, this will never steer you wrong.

Audra: Congratulations on becoming the newly elected 2024 OBL Chair of the Board of Directors. What does this mean to you and what do you hope to accomplish in this role?

Ron: It means a good deal to me to be able to give back to the Association that has helped me throughout my career. I have participated in many events and governmental advocacy initiatives with the OBL that have led me to form some great connections. I hope that I can continue to encourage other banks and bankers in the state to get involved and to reiterate the important work the OBL is doing for the industry.

Audra: So, we’ve gotten to know Ron Zimmerly, CEO, but what does the weekend Ron Zimmerly look like? Tell us what you like to do for fun!

Ron: Depending on how much free time I have, I love to cycle (bicycle) – you can see some beautiful countryside from a bike. We also have 30-40 beef cattle on our family farm, and I enjoy raising, breeding, showing, and selling show cattle to young kids for 4-H projects and fair shows.

18 | OHIO BANKERS LEAGUE

Mike Adelman poses with Ron Zimmerly as he accepts the gavel to become the 2024 OBL Chair.

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TAPPING INTO THE POWER OF DIGITAL PAYMENT SOLUTIONS Over the last year, rising inflation rates and threats of a looming recession have pushed many consumers’ economic concerns to the forefront. With various factors in play, including the Fed’s hike in interest rates and geopolitical instability, consumers are cautious about their finances. In the third annual Primax Payments Pulse study, we take a closer look at established and emerging payment trends, what factors drive consumer preferences regarding payment methods and personal finance, and how financial institutions can optimize their offerings to better engage with their customers.

Digital payment solutions, like mobile wallets and person-to-person (P2P) payment accounts, are becoming mainstream as consumers gravitate toward these payment methods more frequently.

Tap-to-Pay is Here to Stay Bank customers are increasingly comfortable using mobile wallet technology, with 56% saying they use it at least a few times a year, a 51% increase from 2021.

Younger generations use mobile wallet technology more frequently than their older counterparts. Of customers ages 42 and younger, 28% say they use their mobile wallets at least a few times per week. In fact, one in ten Younger Millennials report that mobile wallets are their preferred payment method. For Gen Z, mobile wallets rank as the third most preferred way to pay (13%), surpassing cash (12%) for the first time.

Mobile wallet usage continues to increase among bank customers, with half reporting they are likely to use a mobile wallet within the next six months. Of the customers who do not use a mobile wallet, 41% say it

20 | OHIO BANKERS LEAGUE

is because they do not know what it is or how to use it, 27% feel it is not secure and 20% say it is inconvenient.

Conversely, customers who do utilize a mobile wallet do so because it is convenient (56%), easy to use (57%) and fast (48%). Of bank customers who received a digital card while waiting for their physical card to arrive, more than eight in 10 used it before the physical one arrived.

Other digital solutions like contactless cards also have a firm grasp on consumers. More than three-quarters of bank customers have a contactless card, and 91% use it at least a few times per year. Customers report using contactless cards for convenience (55%), ease of use (61%) and speed (58%). Contactless payment options have even surpassed EMV chip cards in popularity – 54% of customers would rather tap a card than insert a chip.

Convenience, ease of use and speed are major drivers in payment preferences, but despite this, 40% of bank customers are unaware of what a mobile wallet is or how to use it. Digital tools are essential for banks to offer to ensure they meet or surpass customer expectations.

This presents an opportunity for banks to educate their customer about the benefits of such solutions. Over half of customers (51%) express interest in educational resources offered by their financial institution. Educating customers about the security and efficiency of mobile wallets, wearables and contactless cards through various channels can further encourage their adoption and usage.

Innovative Payment Methods Continue to Pique Interest Banking innovations and emerging payment offerings are gaining traction among bank customers more so than credit union members, with 35% of bank customers

reporting they use P2P payment accounts like Venmo and Zelle on a regular basis (compared to 29% of credit union members). The number of bank customers who don’t use a P2P payment account has decreased by over 35% since 2021. Additionally, nearly a quarter of bank customers have used a P2P payment account to purchase something in a store in the past 60 days.

retain current customers, and attract younger ones. This includes not only technological advancements but also marketing efforts. Banks can employ integrated marketing across various channels, as Apple does with its newer (yet well-known) offerings. Banks should look to showcase the quality, safety and security of their offerings compared to non-traditional alternatives.

New innovators in the financial services industry are gaining popularity, as well. Apple’s new credit card and savings account are already well known among bank customers – half of survey respondents report being familiar with these new products. Of those customers, 46% already have or plan to open an account with Apple in the next six months.

In an ever-evolving payments landscape, understanding and adapting to these shifting preferences are not just opportunities for growth, but essential steps for banks to remain competitive and meet the diverse needs of their customers. Download the full 2023 Primax Payments Pulse study for more actionable insights on consumer payment preferences – including the differences between social, economic and generational groups.

Younger consumers are quick to adopt new innovative payment methods. Of consumers ages 42 and younger, 61% of Younger Millennials report they have used text message, QR code or social media app payment methods to make a purchase, followed by Older Millennials (58%) and Gen Z (54%). Of those payment methods, this age range used social media app (31%) most, followed by text message (25%) and QR code (25%).

Kimberly Ploof Managing Vice President, Primax

Our industry thrives on innovation, with new and emergent technologies attracting customers to non-traditional financial institutions. In order to stay at the forefront, banks must invest in innovation to meet customer expectations,

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TH BRANCH R OPTIMIZATION: FO

provide While mizing increas inviting ing are wall co ronmen are no they al

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he banking industry is constantly evolving, with institutions adapting to consumer needs, market dynamics, and technological advancements. As part of this ongoing transformation, financial institutions may need to make strategic decisions about closing a branch in a particular market.

now becoming more important than ever and plays a key role in receiver branches.

When branch closures happen, there is usually a receiver branch. A receiver branch refers to a situation in which a bank or credit union closes one of its branches in a particular market and redirects all consumers and operations to another existing bank location. This consolidation of services aims to streamline operations, optimize resources, and ensure continued access to banking services for consumers in the affected market. The receiver branch serves as the primary point of contact for consumers who previously utilized the closed branch, providing them with the same range of services and support during the transition and beyond.

Maintaining Consumer Trust

Closures are often met with concern from consumers and the community. This is why it’s essential for financial institutions to recognize the significance of refreshing the receiver branch and show that the closure is not a sign of weakness, but rather a strategic move to offer more. While increasing sales and cutting costs have always been the main competitive strategies for growing the bottom line, improving gross margins by increasing differentiation, is

22 | OHIO BANKERS LEAGUE

These are the top motives for refreshing the receiver branch and establishing uniqueness when closing a branch office in a market:

Closing a branch office can create uncertainty and anxiety among consumers who have come to rely on the convenience and accessibility of that branch. To maintain trust and confidence, it is vital for the bank to refresh the receiver branch by enhancing its appearance, services, and staff. A modernized, consumer-centric branch can help reassure existing consumers and attract new ones, showing that the financial institution is committed to the long-term success of that location. A well-kept and modern branch conveys an image of professionalism and credibility. Consumers are more likely to trust a financial institution that invests in maintaining a clean, modern, and aesthetically pleasing environment, as it reflects a commitment to quality, service, and the community.

Enhancing Consumer Service Closing a branch can create an influx of consumers at the receiver branch. To manage this surge effectively, financial institutions should enhance the branch environment to

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While this might involve expanding operating hours, optimizing queue management, and training staff to handle increased traffic efficiently, it should also include creating an inviting, secure, and relaxed environment. Comfortable seating areas, well-lit spaces, updated flooring, casework, and wall coverings all go a long way in creating a welcoming environment for an enhanced consumer experience. Consumers are no longer only looking for a certain product or service, they also are looking for an in-store experience.

by Kevin Poirot, Executive Vice President, PWCampbell Branded Environments

in messaging, visuals, and the consumer experience. This consistency can lead to greater consumer trust because they know what to expect when they interact with any branch within the rebranded network.

When consumers see that a branch has been revitalized and rebranded, they will have more confidence in its stability and commitment to the market. It sends a message to the community that the branch is part of a stronger and more established entity. Appropriate and consistent branding also helps to gain a competitive edge within the market. It positions the branch to compete more effecMeeting Evolving Consumer Needs tively with other financial institutions and stay relevant in Consumer preferences are in constant flux, with change a rapidly evolving industry. A consumer is more loyal when commonly driven by rapid techthere is a strong brand, making them nological advancements and shiftmore likely to purchase your products A REFRESHED BRAND ing demographics. Refreshing the and services as the market continues to receiver branch allows the financial grow and become more competitive.

CONVEYS A SENSE institution to align with these evolving OF VITALITY AND needs. This includes implementing or Conclusion FORWARD-THINKING, upgrading digital marketing, providYour branch is the most visible and ing self-service options, and creating WHICH ENHANCES THE non-intrusive marketing tool you have. a welcoming, tech-savvy environment.

CREDIBILITY OF THE If you decide to close a branch in a By adapting to the changing landmarket, it is imperative to recognize the scape, financial institutions can better RECEIVER BRANCHES. importance of refreshing the receiver serve their consumer base and remain branch. This strategic move helps mainrelevant in the market. tain consumer trust, enhance the consumer experience, adapt to changing needs, retain skilled employees, and revitalize the Retaining Skilled Employees corporate brand. By taking these steps, financial institutions When a branch office is closed, some employees may face can minimize the negative impact of branch closures and relocation or job reassignment to the receiver branch. To ensure that their presence in the market remains strong and retain valuable, experienced staff, it is important to create an relevant. Your branches should tell the story of your brand, if attractive work environment. This not only includes providyou don’t tell the story, the consumer will! ing opportunities for professional development, a positive work culture and incentives, but also providing a physically pleasing work atmosphere that promotes health and well-being. When employees feel comfortable and inspired by their Kevin Poirot joined PWCampbell in 1998. surroundings, they are more likely to perform at their best, In his role as Executive Vice President of enjoy coming to work, and feel more content in their roles. A the Branded Environments division, Kevin motivated and skilled workforce is vital for maintaining the oversees all business operations and strategies financial institution’s service quality and reputation. for branding, environmental graphics,

Revitalizing the Brand

merchandising and digital marketing products and services for the financial industry.

Refreshing branding ensures cohesiveness and consistency SPRING 2024 ISSUE

| 23

HOW TO ATTRACT PASSIVE JOB CANDIDATES IN BANKING AND FINANCE The financial industry is currently facing a shortage of workers, while banks are struggling to find job applicants with relevant tech skills. One way to expand your talent pool is to contact passive candidates — those who are currently not searching for a job because they already have work. These individuals are statistically more likely to be qualified for a role in your organization and require less training, making them highly attractive. But how can you find passive candidates in the finance sector and convince them to join your team? Read on to find out.

Reach Out to Candidates on LinkedIn and Reddit Passive candidates aren’t actively looking for employment. However, they might be open to new opportunities, especially if an employer offers them something extraordinary, such as a high-paying role or generous benefits. That’s why many of these individuals still check their LinkedIn profiles and browse banking and financial subReddits. If the right job comes along, they could be willing to leave their current role.

If someone showcases their experience and expertise on r/Finance or r/FinancialCareers, contact them directly and strike up a conversation. You never know — a passive candidate might be interested in joining your team. The same goes for LinkedIn. Once you’ve found a passive candidate on the platform that matches your job requirements, send them a direct message. Explain that they have the skills you are looking for and ask if they are willing to learn more about your company.

But how can you find top talent on LinkedIn in the first place? Talent analytics software will help. Tools like Sprout Social let you filter LinkedIn profiles based on

24 | OHIO BANKERS LEAGUE

different criteria, helping you discover passive candidates in finance with highly sought-after skills. You can also source candidates in a particular location.

Advertise Opportunities on Social Media Passive candidates aren’t checking Indeed or ZipRecruiter for new jobs. However, they almost certainly browse social media to learn the latest trends in the banking and financial sectors. By advertising a job on social media, someone with the right skills for your role might come across it and think twice about their current position.

Feeling really brave? You could tag a passive candidate in your job post. If there’s someone that you really want to work for your company, this might be the first time they find out about your position. Alternatively, send them a direct message with a link to your job description and quickly explain why they would be perfect for it.

You might not receive a response, but it’s worth a try — especially when not enough qualified candidates are applying for your job.

Create a Buzz Around Your Organization Passive candidates can learn how great your company is through simple word of mouth. If someone close to them raves about your company culture or work-life balance, they might want to know more. To increase the likelihood of that happening, you need to get people talking about your organization.

The easiest way to create buzz around your company is through marketing. Creating content such as blog posts, videos, and webinars requires an investment but

increases awareness about your organization. You’ll want to include information in your content about why you’re an awesome employer. That means highlighting factors like your positive working environment, strong values, career progression opportunities, or anything else that makes you unique.

Thought leadership content, in particular, will strengthen your reputation and make you a more desirable employer.

You’ll be able to demonstrate what your company believes in and why it’s a fantastic place to work. Posting unique insights about banking and finance can also help you increase your credibility and attract more passive candidates to your job positions.

Create an Employee Referral Program Attracting passive candidates to your company is hard work, so you’ll need some help. It is a good idea to ask your current employees to contact qualified professionals in their networks. They might know someone perfect for a job position and convince them to jump ship and join your organization.

employees to reach out to their networks and bring top talent to your organization. If someone finds you the ultimate candidate, you can reward them with cash, vouchers, or even paid time off.

Takeaway Research shows that 37% of American workers are passive candidates, meaning they’re not currently looking for employment. If the perfect person for your job role is in that 37%, you’ll want to attract them to your organization. You can increase your chances of recruiting passive candidates by contacting qualified professionals on LinkedIn and Reddit, advertising jobs on social media, creating a buzz around your company, and establishing an employee referral program. Remember, the right candidate for your job might not even know about it!

Charlie Tudor Managing Partner Angott Search Group

Creating an employee referral program will encourage existing team members to help you source passive candidates. This recruitment strategy incentivizes

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| 27

STRENGTH IN NUMBERS

COMMUNITY BANKS DISCOVER THE BENEFITS OF COLLABORATIVE LOAN PORTFOLIO MANAGEMENT A few of my graduate school classmates and I were young commercial bankers at different banks in the 1990s.

We got to know each other well, and as we advanced in commercial and corporate lending, we started a weekly coffee club to discuss our lives and careers—at least the parts we could share.

One recurring topic was the sharing participations of corporate borrowers at the local, regional and ultimately national level. And one emerging asset class we could discuss openly was the syndicated secured loan market for large loans and borrowers. A member of our group had acquired several loans in this market—also known as the leveraged loan or senior loan market—and we started to work together as a team on projects, like we did in graduate school. It was relatively easy to talk about these national-scope borrowers and loan structures, since the information was publicly accessible and we could share the basic pitch books provided by the borrowers.

With introductions and access to the syndicating banks, all four of us were eventually reviewing loans, underwriting,

28 | OHIO BANKERS LEAGUE

and sharing analytical and other risk management practices. The group support and cross-training we gleaned from this experience was valuable and rewarding, and the growing portfolios performed well for our respective banks. Granted, the environment was different back then: the loan market was much smaller; loans weren’t as liquid; and the breadth of industries to draw from was limited. Yet our group was able to build a small portfolio of quality commercial and industrial loans from acquiring assignments (not participations) in the corporate loan agreements.

Since then, this asset class has grown significantly. Figure 1 shows the growth by outstanding funded loans, and Figure 2 illustrates the diversity of the market. From 1997 to the end of 2023, the market grew from $29 billion to almost $1.4 trillion. Thanks to such tremendous growth, today’s market provides the opportunity to acquire a diversified portfolio of loans, at the loan size and quality that fit each bank’s policies.

Par Amount of Outstanding Senior Secured Loans Fig. 1

§ Large, mature market primarily used by borrowers to raise funds for M&A, capital growth and recapitalizations § Broad investor/lender base including traditional commercial banks, retail mutual funds, credit funds, pension plans and insurance companies

around the country—or even teams of bankers in local markets—work together to manage a virtual commercial bank by simulating multiple disciplines and decisions in an imaginary economy and market over several interest rate and economic cycles.

7.85% CAGR since Great Recession

Morningstar LSTA Index1 : Par Amount Outstanding ($ Billions)

1,413 1,397 1,341

January 1, 1997 to December 31, 2023

1,193 1,193 1,147

400

29

55

90

682

831

872 881

955

If you participated in one of these programs, I imagine it left an impression on you, exposing you to the difficulty of managing a bank’s multiple sensitivities, but with little (real) risk to shareholders. Moreover, you probably enjoyed some serious (but fun) competition while you learned, grew and interacted with peers.

248

191

101 104 112 135

557 596 529 552 504 516

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 - The Morningstar ® LSTA ® Leveraged Index is an unmanaged total return index that captures accrued interest, repayments, and market value changes. Investors cannot invest directly in an index. Source: LCD.

The Senior Secured Loan Market Fig. 2

Par Amount of Outstanding Senior Secured Loans by Industry

Cooperation, Not Competition

Data as of December 31, 2023 Aerospace & Defense

1.73%

Automobile Components

1.74%

Entertainment

1.80%

Oil, Gas & Consumable Fuels

1.86%

Health Care T echnology

1.95%

Containers & Packaging

2.16%

Trading Companies & Distributors

2.74%

Insurance

2.99%

Specialty Retail

3.01%

Professional Services

3.20%

Capital Markets

3.28%

Machinery

3.66%

Commercial Services & Supplies

3.74%

Chemicals

3.79%

Diversified Telecommunication Services

3.92%

Media

4.34%

IT Services

4.37%

Health Care Providers & Services

n

Broadly diversified by industry and geography

n

Roughly $1.4 trillion market by par amount

n

62 industry categories

n

Over 1179 issuers

n

Rated below investment grade

What does all this have in common with building C&I loan portfolios? My firm—Voya Investment Management (Voya IM)—has launched a new resource called the Shared Portfolio Program, where two or more community banks work with the Voya Bank Advisory Team to plan, design, develop and share a portfolio from the $1.4 trillion primary and secondary senior loan markets.

5.29%

Hotels, Restaurants & Leisure

5.32%

Softw are

11.82%

Other (42 industries)

27.30% 0%

5%

10%

15%

20%

25%

30%

Source: LCD. Data represented by the Morningstar ® LSTA ® Leveraged Loan Index.

A Team of Competitors is a Strength I tell this story for a few reasons: First, to show readers a unique way to access this attractive market, and second, to talk about how valuable it is to work closely with peers in the banking community. Our coffee club members had similarities, but we also had unique skills and experience levels. Moreover, we had fun, we found the work motivational and, most of all, we learned that sharing our capabilities made us better credit analysts and risk managers.

So why was this a rewarding time in our careers? The answer to this question may lie in the principles of Charles Coonradt’s seminal book, The Game of Work. Coonradt questioned why people will pay to “play” games such as golf or tennis, and work harder while playing than they do at work—where they get paid.

My experience with the coffee club is that it’s possible to make work more rewarding, challenging and even fun. And if you attended bank graduate school, you may have already had an experience like this. Perhaps you participated in a bank simulation training program (such as ABA’s BankExec® or PCBS’s LEADERSIM®). These sessions are part of a broader capstone curriculum that culminates with a multi-session bank simulation exercise.

Competitive teams of colleagues from different banks

The banks that take advantage of this program are likely to do so for several reasons: They want to balance their banks’ loans by adding incremental, quality C&I loans.

They want robust standards and policies to frame and complement their credit policies.

They want access to systems and professionals that can provide risk-management support over the life of the portfolio.

Equally important, they believe that working with peers is a rewarding experience on multiple levels.

Each bank that participates in this program may have its own primary objective, but in general the banks seek to build supplemental, safe, compliant C&I loan portfolios as part of their general lending objectives; in appropriate amounts of total portfolio concentration among all loan assets; and at individual loan limits of their choosing. This flexibility provides for balancing against the growing or high commercial real estate (CRE) and consumer loan levels incident in many banks. Secondary objectives include the ability to use the portfolio for liquidity; to support interest rate sensitivity with variable rate loans; and to enhance overall loan quality given the near investment grade levels of these portfolios.

The quality point is an important one. There are two ends and a middle sector of the leveraged lending market: high, middle and lower grade. Loans in the Voya program are

SPRING 2024 ISSUE

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chosen from existing and new loans on the high-quality end. In sourcing these loans, program participants receive the full support of Voya experts, including policy support, training, risk management, loan accounting and reporting, and third-party independent loan review. Voya coordinates the bank teams, manages group meetings and loan discussions, and administers the portfolio of loans—which are acquired pro rata by the bank teams.

But more importantly, each bank makes independent decisions and acquires a portion of each loan, which is determined by the amount of total funding the bank decides to contribute based on the size, capital and liquidity of each bank. Each bank determines what level of exposure it wants, but that exposure will be across a diversified portfolio of loans. This risk management partnership is built and maintained according to regulator guidance and credit principles. Underwriting these loans requires a bit more depth and analysis, and involves some advanced commercial and industrial analytics.

If this interests you or your bank, reach out to OBL Bank Services or Voya IM. You are invited to work with several Ohio banks to begin a discovery and introduction process that leads to your assessment of the benefits and fit for your bank. We expect to begin a single portfolio in early 2024 with a limited number of banks.

REFERENCES: Coonradt, C. A. (2007 (sixth edition)). The Game of Work. Park City, Utah, USA: The Game of Work, LLC. Coonradt, C. A. (2007). Scorekeeping for Success. (W. L. Benson, Ed.) Park City, Utah, USA: The Game of Work, Inc. All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. The views expressed are those of the author and do not necessarily reflect the opinions or endorsement of the Ohio Record. © 2024 Voya Investments Distributor, LLC • 230 Park Ave, New York, NY 10169 • All rights reserved. Not FDIC Insured | May Lose Value | No Bank Guarantee | IM3387010

Randy Cameron Co-Head, Bank Advisory Group Voya Investment Management

Summary One thing community banks do well is support their markets and each other. Working together provides a lot of tangible and intangible advantages. Building quality C&I in a noncompetitive collaborative environment provides for enhanced risk management, enhances productivity, and generates new ideas and experiences.

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32 | OHIO BANKERS LEAGUE

ADVOCACY BUILDS VALUABLE RELATIONSHIPS Advocating for the Ohio Banking Industry is crucial for fostering economic growth and stability within the state. As a vital component of the financial infrastructure, the banking sector plays a pivotal role in providing individuals and businesses with access to essential financial services, such as loans, savings accounts, and investment opportunities. By actively participating in advocacy efforts, individuals can help shape policies that promote innovation, consumer protection, and fair competition, ultimately benefiting the entire community.

Furthermore, being part of advocating for the Ohio Banking Industry provides individuals with unique opportunities to engage face to face with influential figures, including policymakers, regulators, and industry leaders. These interactions allow advocates to voice their concerns, share insights, and contribute to meaningful discussions that shape the future of banking in Ohio. Building relationships with key stakeholders also enables advocates to stay informed about upcoming regulatory changes, economic trends, and emerging technologies, empowering them to make informed decisions and effectively advocate for the interests of their communities.

In essence, by actively participating in advocating for the Ohio Banking Industry through the OBL, individuals not only support the growth and stability of the state’s economy but also gain invaluable networking opportunities and a platform to influence positive change.

Through OBL’s advocacy efforts, positive change has happened on behalf of the banking industry. This has happened through regular meetings with people like Sherrod Brown and JD Vance, your Ohio Senators, the Chairman of the FDIC, Martin Gruenberg, the Director of the CFPB, Rohit Chopra, and various others that hold high political standing on both the federal and state level.

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FHLB’S MORTGAGE PURCHASE PROGRAM PAYS YOU FIVE WAYS! 1. Competitive Cash Price 2. Rebates from the Lender Risk Account (LRA) 3. FHLB Dividend 4. Few Loan Level Price Adjustments 5. Premiums Paid for Servicing (released or retained) Check pricing in Optimal Blue and Encompass Welcome to our newest participating financial institutions!

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34 | OHIO BANKERS LEAGUE

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Montez Shugars Marketing Officer shugarsmk@fhlbcin.com

TOP 3 REASONS WHY NEW HIRES LEAVE… AND HOW TO TURN AROUND YOUR TURNOVER! HR Question: We’re struggling with high turnover, and what’s particularly frustrating is to see so many new hires leave. What can we do to retain our new hires?

HR Answer: After spending time and money recruiting, onboarding, and training employees, we understand your frustration watching new hires leave sooner and sooner.

It is estimated that 20-40% of new hires leave in their first 90 days. This leaves many employers scratching their heads asking, “Why can’t we keep our new employees?”

When a new hire leaves a position early in their employment, it is typically for one of three reasons: 1. The job did not turn out to be what they expected 2. They do not feel a part of the team 3. The business down the street offered more money We’ll dig into each of these turnover reasons below and share specific actions you can take to address these issues.

What To Do If Your New Hires Leave When you experience turnover, your first step should be to find out why your employees are leaving. Have HR or a manager other than the direct supervisor reach out and talk to the departing employee. This conversation, known as an exit interview, is a valuable tool to use in understanding why employees are leaving. If an employee left without warning, text them and ask for a brief response with no pressure to provide more than a reason.

Most people want to express their frustrations, and you can learn a great deal by asking a few prompting questions followed by listening carefully. Exit interviews can help you to identify any common reasons for departure, and many times shed light on issues that you

can address to avoid early departures in the future (i.e., gaps in onboarding or training).

When the Job is NOT What the Employee Expected…

Unlike experienced recruiters and hiring managers, candidates are not typically savvy interviewers. When coaching people in their career search, we always remind them that they are responsible for interviewing the company as thoroughly as the company is interviewing them. They should have a list of questions for the interviewers that help them evaluate the organization’s culture, work environment, leadership, development, and advancement opportunities. But most importantly, they have to get a clear picture of the job duties to determine if they will enjoy them and have what it takes to be successful in the role. Many candidates are just so nervous they don’t feel comfortable doing their own investigating which can result in new hires leaving.

So what can you do? Help your candidates by filling in these blanks during the interview. Continue to note whether the candidate has questions or has done any research on the company (this says something about the candidates’ preparedness), provide a copy of the job description, and give them a company tour, but go above and beyond this.

Paint a realistic picture of the job and the company for candidates by: • Job Shadowing – Have candidates spend time following an employee doing the same/similar job, so they can see first-hand what the job entails.

• Walking the Job – Walk through the job site with the candidate. Have them talk through what they see, what they would do in this situation, what resources they need, and what questions they have.

• Providing a Job/Company Presentation – Create a presentation for job candidates with videos of the jobs being performed (or borrow one of the hundreds provided by the Department of Labor’s Careeronestop page) along with pictures of the work environment,

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your culture, organization structure, compensation programs and benefits, etc. You can use this with groups of candidates when you are hiring multiple people for similar roles.

• Including Multiple Employees in Interviews – Allow the candidates to speak to multiple employees, including the direct supervisor, members of the team, and another person doing the same/similar job. These company representatives should have prepared information to share about the job and company and be ready to answer candidate questions.

Providing a clear picture of the job will help some candidates self-select out of the applicant pool, but that is what you want. Then you are left with the candidates who have a realistic picture of the job and your organization who WANT to work for you.

When the New Hire Doesn’t Feel Part of the Team…

Think about a time when you walked into a room with a group of people and had a hard time connecting with anyone there. You probably felt like an outsider and wanted to leave the group. This happens more than we want to admit, especially in a new job. When you do not feel “a part” of something, it is very easy to walk away, assuming no one will notice or care when you’re gone. So, it’s not surprising that new hires leave when they don’t feel connected.

Build new employees’ connections with: • Daily Check-ins (or at each scheduled shift) – Ask a simple question about their day, a current project, their weekend, technology, who they have met, or what help they need to do their work that day. It doesn’t have to be more than five minutes, but just connecting reminds them that you know they are there. And it doesn’t hurt to tell them that you are glad they are there!

• Team Mentor/Buddy – Some organizations use a formal buddy or mentor program, which is very beneficial. If your organization is too small for a formal program, do it informally. Just ask another person to reach out to the new hire at least weekly for the first three months. This person can invite the new hire to join their group for lunch or answer questions that the new employee may not feel comfortable asking their supervisor.

• Plan for Virtual Employees – Don’t forget your virtual employees, as this can be the most challenging group to keep connected. For some creative ideas, check out some articles on this topic online.

When a Competitor Offers More Money…

As most industries continue to navigate the tight labor market, money is being thrown at applicants in the form

36 | OHIO BANKERS LEAGUE

of higher hourly rates and salaries, signing bonuses, retention bonuses, performance bonuses, etc. This results in employees jumping (or being recruited) from one employer to the next to get a quick bump in pay. It is easy for competitors to entice new hires to leave when they are not happy with or feel disconnected from the job or the company culture from the start.

To address employee compensation: • Assess the Market – Conduct a salary benchmarking study to learn what current pay rates are for jobs in your industry and location and compensate your employees fairly. If you don’t have the time or expertise to collect and analyze the data, you can reach out to the OBL who conducts a comprehensive Compensation and Benefits Study annually.

• Offer Competitive Pay That Can Be Maintained – Ensure that higher pay rates/bonuses for new employees DO NOT: • Put such a strain on the budget that you will not be able to continue paying that rate or cause you to hire fewer workers than needed therefore making existing employees’ jobs even harder; and/or • Create pay inequities with existing staff to cause them to walk away.

• Showcase Internal Career Paths – Show new employees what their job will look like in six months, a year, two years, and how their compensation will increase so they have something to work toward.

• Communicate Your Value – Your recruiting strategy must include the intrinsic value your organization offers (benefits, culture, career path) going beyond compensation. This is the time to develop a Total Compensation Statement if you don’t already have one, and then live up to the hype of what makes your organization great.

While you cannot avoid turnover altogether, there are strategies your organization can take to retain your employees, especially your newest and most vulnerable new hires. A little extra time and money spent in doing these things will save an exorbitant amount spent in managing turnover.

Clark Schaefer Strategic HR If you would like to learn more about Clark Schaefer Strategic HR, please go to StrategicHRinc.com.

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OBL BANKING CALENDAR RETURNS! SHE GETS IT! WOMEN IN LEADERSHIP SERIES Begins April 9 (Virtual)

STEPPING UP TO SUPERVISOR April 2 – OBL Education Center

Congratulations! You or another member of your team has excelled as an individual contributor and now it’s time to move into a supervisory role. But what is next? You need the right expectations, tools and skills to become a highly effective supervisor. The OBL presents this one-day class in partnership with the Graduate School of Banking – Madison, where attendees will gain all skills and insights needed to lead with confidence and conviction. During this interactive workshop, participants will learn to: • Define performance, behavior and attendance issues to be addressed; • Make the transition from team member to supervisor; • Avoid 5 Supervisory “Traps” that turn people off; • Ask good questions and become a good listener; • Be accountable and hold other accountable; • Identify the responsibilities of a supervisor; • Build a productive team … and more!

Led by Patrice McGuire, a seasoned human resource professional and faculty member at GSB-Madison, the program is ideal for new supervisors and managers with less than one year experience; experienced supervisors with little or no formal supervisor training; curious people who want to know if a supervisor role is for them; and aspiring and soon-to-be-promoted supervisors.

Questions? Contact Julie Kiplinger at jkiplinger@ohiobankersleague.com.

“To lead others well ... you must first lead yourself well.”

The OBL is pleased to partner with regular presenter AmyK Hutchens to offer the return of the She Gets It FOUNDATIONS Series, a six-part program to help attendees regroup, recenter and reset. Attendees will obtain the tools needed to advance their careers, communicate with their peers, elevate their confidence and master the art of self-leadership. Highlights include: • Understand the #1 Currency of High-Performers and how to increase it for professional and personal gain • Discover where (and to whom) you’re giving your power away and how to take it back so you can make clear, confident decisions • Learn to harness the collective intelligence of your team and align their brilliance so you can meet and exceed goals • Examine the art & science of Empathic Intelligence so that you can build a healthy culture through sensitive, perceptive, and appropriate communication • Align with your Essential Self and discover how this impacts your well-being, leadership style, and performance levels • Become comfortable regulating and managing your emotions to increase collaboration and strengthen your resiliency … and more!

What do others have to say about AmyK? She is a great presenter with many take aways that were helpful – easy to understand – and implement.

She is inspirational and has an abundance of personality which makes her extremely easy to listen to. Find out more and sign up today!

Questions? Contact Julie Kiplinger at jkiplinger@ohiobankersleague.com.

38 | OHIO BANKERS LEAGUE

FDIC DIRECTORS’ COLLEGE April 23 – Quest Conference Center

The FDIC Directors' College Program will once again provide course offerings for directors and officers delivered locally by the FDIC's regional offices. The OBL will partner for the April 23 session with the CBAO and the Chicago region of the Federal Deposit Insurance Corporation.

The seminar will provide timely and relevant topics including: The Consummate Director - This presentation discusses the regulatory landscape, expectations for board oversight, and strategies to ensure directors are equipped for success.

Compliance Hot Topics - This presentation will discuss significant changes, including the new CRA final rule, FDIC’s new Subpart B of Part 328, and the final interagency guidance for managing risks associated with third-party relationships.

Managing Liquidity in a Challenging Interest Rate Environment - This presentation will discuss the challenges produced by such interest rate movements, and prudent monitoring procedures that banks should use to identify, measure, monitor, and control liquidity risk.

National and Local Economic Conditions - This session will provide attendees with an overview of national, state, and local economic conditions by analyzing the latest trends in sectors such as labor, housing, and commercial real estate.

The session will also feature a Regulator Panel, an open forum to engage FDIC Chicago Regional management, on topics important to your bank and the banking industry.

To register you and your team, contact Megan Peiffer at mpeiffer@ohiobankersleague.com.

OBL MEMORIAL HOSPITALITY HOUSE

June 5 – 9 (Practice Rounds June 3 & 4) Muirfield Village Golf Club - Dublin, Ohio As spring will quickly turn to summer – it is time to think about the annual Memorial Tournament, hosted annually at Muirfield Village Golf Club in Dublin, Ohio – AND to make plans to join the OBL at its Hospitality House. Now in its third year, the event allows OBL members and partners to host their colleagues and clients, where all can enjoy food and beverages, as well as networking and rest, while enjoying the event.

Bank sponsorships and partner packages are available for purchase, as well as individual tickets for hospitality only. Partners: join us as a sponsor and invite members to come as your guests. Members: reward a staff member or colleague, invite your best customers or bring your team for a day of team building. Your schedule only allows you to come for practice rounds on June 3 or 4? While there won’t be a hospitality house, we have tickets!

The Tournament, founded and hosted by Jack Nicklaus, is held each year to honor the memory of individuals living and deceased who have distinguished themselves in the game of golf, as well as to showcase the world’s best golfers competing on one of the most challenging venues in the world for the enjoyment of spectators.

Come join the fun! It will be here be-“FORE” we know it!

For more information about the OBL Hospitality House, contact Sarah Husk at shusk@ohiobankersleague.com. Sponsorship questions can be directed to Paige Houlihan at phoulihan@ohiobankersleague.com.

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Ohio Bankers Benefits Trust

COMING TOGETHER TO CONTROL BENEFIT COSTS In today’s competitive marketplace, benefits have become as important as compensation when hiring or retaining the best and brightest. But health insurance is not inexpensive.

The Ohio Bankers Benefits Trust was developed in 1952 to mitigate health benefits costs by bringing bankers together.

When we harness the collective resources of Ohio’s banks and thrifts, everyone wins.

For more information about the OBL health plan options contact: OBBTCustomerService@ohiobankersleague.com

40 | OHIO BANKERS LEAGUE

OHIO BANKERS BENEFITS TRUST

AROUND THE INDUSTRY Somerville, Ohio

Zanesville, Ohio

The Somerville Bank has recently announced that the bank’s President, Douglas Ulrich, has become the bank’s tenth CEO in their 114 year history. CEO Ulrich began his career with Somerville in 2009 as an AVP in the Hamilton, OH. market and then served as the Senior Vice President and Chief Douglas Lending Officer since 2015, most recently Ulrich being appointed President in January 2022. Over the last 5 years, Mr. Ulrich has worked closely with former Bank CEO Paul E. Taylor as well as the board of directors to develop a successful succession plan and ensure a smooth transition due to Mr. Taylor’s retirement.

President & CEO of North Valley Bank, Jim Nicholson, has been appointed to the board of the Federal Reserve Bank of Cleveland. The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington DC, Jim comprise the Federal Reserve System.

Nicholson Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.

Toledo, Ohio Waterford Bank, NA announced a leadership change with the retirement of founders Larry Boyer and Mike White. J. Grant Smith has been named the President and Chief Operating Officer for the bank while Michael Miller will remain as the CEO and Chairman of the Board.

Focus On: Portage Community Bank Names New Leadership Ravenna, Ohio

J. Grant Smith

The Board of Directors of Portgage Community Bank has announced the appointment of Portage Community Bank’s new Chief Executive Officer, Constance M. Bennett.

With an exceptional history as the Chief Operations Officer for 22 years and as the bank president for the last three, Connie has been an integral force in driving the Company’s achievements and fostering a culture of excellence. Her unparalleled expertise, steadfast dedication, and deep understanding of Portage Community Bank, make her the ideal candidate to lead the Bank into the future.

The Board of Directors would also like to announce the appointment of Portage Community Bank’s new President, Ann H. Durr. For the past five years she has served as the bank’s chief retail officer and Summit County president, bringing over 30 years of banking experience to the institution playing the pivotal role in spearheading our Summit County office expansion. Throughout her career, Ann has also been a member of executive leadership teams thus demonstrating her strong leadership and strategic decisionmaking skills. Her steadfast commitment to our company’s mission, coupled with her valuable experience in the banking industry, positions her as an exceptional leader for the Company.

Constance M. Bennett

Ann H. Durr

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THE TOP TEN

1

In this quarterly feature, the OBL highlights the ten news articles that you have visited the most at www.ohiobankersleague.com.

FEDERAL REGULATORS SUED OVER CRA IMPLEMENTATION RULE

The ABA, the U.S. Chamber of Commerce, Texas Bankers Association and four others sued the Federal Reserve, FDIC and OCC for exceeding their statutory authority with their recent amendments to final rules implementing the Community Reinvestment Act.

2

BANKING REGULATORS KICK OFF THE NEWEST ROUND OF IDENTIFYING OVERLY BURDENSOME REGULATIONS

In accordance with the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), the federal banking agencies kicked off their review to identify outdated, unnecessary, or unduly burdensome regulations applicable to insured depository institutions.

6

CFPB PROPOSES NEW LIMITATION ON OVERDRAFT FEES

Today the CFPB released a proposed rule to all but eliminate the ability to offer overdraft for banks over $10B.

7

STATEHOUSE REPUBLICANS UNVEIL NEW PLAN TO ELIMINATE PERSONAL INCOME TAX AND COMMERCIAL ACTIVITY TAX BY 2030

Ohio Republicans Unveil Ambitious Plan to Eliminate State Income Tax by 2030, Paving the Way for Economic Transformation and Stirring Debate on Funding Priorities.

8

OBL FILES LEGAL BRIEF TO PROTECT COMMERCIAL LENDING IN OHIO

Yesterday, the Ohio Bankers League led a coalition in the

3

COLUMBUS EMPLOYERS PREPARE FOR SALARY HISTORY BAN ENACTED BY CITY COUNCIL

filing of an amicus brief asking the Supreme Court of Ohio to review a decision out of the Ohio First District Court of Appeals that could upend the ability to use industry standard guaranties in commercial lending. The lower

Business owners in Columbus gear up for adjustments

court essentially converted all guaranties to suretyships

as new ordinance restricts inquiries into salary history,

and imposed increased duties on lenders. OBL supported

reshaping hiring practices.

the bank’s position that this decision was erroneous and

4

should be overturned.

WHEN CREDIT DRIES UP, SO DO BUSINESSES AND COMMUNITIES BY MICHAEL ADELMAN

OBL's President and CEO, Mike Adelman, was recently

9

NEW FINCEN BENEFICIAL OWNERSHIP REPORTING LAUNCHES

The start of the New Year brings with it the

featured as a guest columnist by Cleveland.com about the

implementation of the long-awaited beneficial ownership

Consumer Financial Protection Bureau issuing a proposed

reporting regime.

rule that would cap credit-card late fees.

5

PRESIDENT BIDEN VETO’S RESOLUTION TO VOID 1071 RULE

10

MASSIVE GROUP OF LAWMAKERS PUSH FINCEN TO DELAY BENEFICIAL OWNERSHIP IMPLEMENTATION

Yesterday President Joe Biden vetoed a measure that

This week a bicameral group of legislators wrote to

would have repealed the CFPB 1071 small business data

Treasury and FinCEN urging them to delay the beneficial

collection rule.

ownership rules set to take place Jan 1st 2024.

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PRSRT STD US POSTAGE PAID MONTEZUMA, IA PERMIT NO. 30

OHIO BASED, OHIO OWNED

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And don’t just take our word for it. Ask the Ohio Bankers League, where we have been a reliable Endorsed Business Partner for the last 19 years. In fact, we have earned the trust of more Ohio community banks than any other firm in the country.

So when you want the best relationship for your BOLI portfolio and a firm that is dedicated to Ohio community banks, talk to Lou Moore at Banc Consulting Partners.

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44 | OHIO BANKERS LEAGUE

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