2015 Annual report - The Independent Community Bankers of America

community banks:
making hometowns
FLOURISH
2015 annual report
COMMUNITY BANKS:
Making Hometowns Flourish
Membership............................................................2
Advocacy...............................................................10
Education.............................................................. 18
Solutions...............................................................24
Leadership...........................................................32
Letter from ICBA’s Chairman and ICBA’s President and CEO
In 2015, the Independent Community Bankers of America® and the nation’s community banks
continued our passionate pursuit of ICBA’s singular mission: To create and promote an environment
where community banks flourish.
Community banks carried on their work of helping hometown neighbors and small businesses
prosper amid an uncertain economic recovery and evolving financial landscape. Meanwhile, ICBA
led the industry to numerous advocacy successes, transformed our educational platform, and added
even more offerings under our suite of products and services.
In Washington, ICBA and America’s community bank advocates achieved tangible results due
to our industry’s extraordinary reputation and influence in the nation’s capital. In addition to the
congressional passage of several regulatory relief provisions from ICBA’s Plan for Prosperity
platform as well as mortgage and call report relief at the banking agencies, the industry successfully stood up to a backdoor tax hike on Federal Reserve members and the Financial Accounting
Standards Board’s ill-advised accounting reforms.
The launch this year of Community Banker University® expanded and modernized ICBA’s approach
to community banker education. The ICBA Community Banking LIVE® national convention,
Washington Policy Summit and third annual Leadership Development Conference remained the
industry’s hallmark educational and networking destinations. Meanwhile, the diverse resources and
support available from the ICBA Services Network® and ICBA Marketing and Communications team
helped community banks remain competitive and top-of-mind for current and potential customers.
ICBA thanks its affiliated state community banking associations and the nation’s community bankers
for a successful and memorable year—one for which we can all be proud. With continued partnership
and involvement, there is no limit to what we can achieve, on behalf of community banks themselves
and the communities we call home. Thank you, and best wishes for the year ahead.
All the best,
Jack A. Hartings
ICBA Chairman
Camden R. Fine
ICBA President and CEO
MEMBERSHIP
ICBA’s mission is
to create and promote
an environment where
community banks
flourish.
At the Heart of Banking
we have your back
Located in small towns, suburbia and big-city neighborhoods, community banks have 51,000 locations nationwide and employ 700,000 Americans. They hold $3.8
trillion in assets, $3 trillion in deposits, and $2.5 trillion in
loans to consumers, small businesses and the agricultural
community.
In 2015, ICBA and the nation’s community banks continued their passionate pursuit of ICBA’s singular mission: To
create and promote an environment where community
banks flourish. With a time-tested business model based
on personal relationships as well as a commitment to technological innovation, the community banking industry remained thriving stalwarts in their communities.
A full 48 percent of ICBA member community banks have
been in business and helping their communities flourish
for at least 100 years. The association’s membership market share grew again this year, as it has year-over-year
since 2009. Nearly 2,700 community banks have been
ICBA members for 20 years or more, nearly 1,300 have
been members for at least 50 years, and two have been
with the association since its founding.
ICBA was founded in 1930 in Glenwood, Minn., and is now
headquartered in Washington, D.C. The association has
offices in Sauk Centre, Minn., and Newport Beach, Calif.,
along with 11 regional offices across the nation. It also has
member community banks in every state of the union, the
District of Columbia, the Virgin Islands and American Samoa.
ICBA members include commercial banks, savings institutions, mutual banks, agricultural banks, minority community
banks and Community Development Financial Institutions.
Community Banks: Making Hometowns Flourish 3.
ICBA National Community
Bank Service Awards
ICBA this year honored three community banks whose outstanding community service leadership helped their hometowns flourish. The 2015 ICBA National Community Bank Service Awards program brings national recognition to the unparalleled
contributions community banks make to help build sustainable communities. The
2015 honorees are First Federal Savings Bank in Twin Falls, Idaho (Grand National
Award); Provident Bank in Iselin, N.J.; and Citizens Bank of Las Cruces, N.M.
ICBA honored Mark Mohr of First Bank Financial Centre in
Oconomowoc, Wis., as its Community Banker of the Year
(top) and Provident Bank of Iselin, N.J., with a 2015 ICBA
National Community Bank Service Award (right).
4. 2015 Annual Report
Citizens Bank of Las Cruces, N.M., earned a 2015 ICBA
National Community Bank Service Award for its Joining
Forces for Veterans initiative (left).
Community Banker of the Year
ICBA also announced that this year’s national Community Banker of the Year is Mark
Mohr, president and CEO of First Bank Financial Centre in Oconomowoc, Wis. ICBA’s
annual award recognizes the exceptional work and commitment of individual community bank employees and the dedication they have to their local communities. In
addition to Mohr, ICBA also named the following regional winners: Leonard Moreland,
president and CEO of Heritage Bank in Jonesboro, Ga. (East); Sean Kouplen, chairman
and CEO of Regent Bank in Tulsa, Okla. (Central); and Bruce T. Jensen, president and
CEO of Town & Country Bank in St. George, Utah (West).
Community Banks: Making Hometowns Flourish 5.
ICBA and community bankers also
used industry-leading marketing
and communications to
continue thriving
in 2015.
LOCALLY
SERVED
by a community bank
®
www.banklocally.org
Go Local™
This year, ICBA’s Go Local initiative (www.icba.org/golocal) continued encouraging consumers to see for themselves the benefits of banking locally. ICBA’s growing “Go
Local for the Holidays” campaign encouraged consumers
to shop, dine and bank locally over the holiday season.
Rushville State Bank in Rushville, Ill., won ICBA’s third annual Main Street Holiday Contest, earning a $300 donation to a local charity of its choosing. Additionally, ICBA
continued its new “Go Local Wednesday” tradition, which
encourages ICBA staff, community bankers and consumers nationwide to shop, dine and bank locally on the third
Wednesday of every month and share their experiences
on social media.
Also in 2015, ICBA’s Community Bank Locator remained
one of the most popular features on the ICBA website. The
locator (www.banklocally.org), which drives consumers and
small businesses to member community banks, automatically lists all community bank branches and is available via
an app for Android, BlackBerry and iPhone devices.
6. 2015 Annual Report
Community Banking Month
ICBA and its members again celebrated ICBA Community Banking Month in April to recognize the importance
of community banking in helping Main Street flourish. To
showcase the unique traits, stories and characteristics of
community banks and their vital role in local economies,
ICBA highlighted a community bank on its Go Local blog
(www.icba.org/golocal) each weekday in April, hosted a
Google+ Hangout and Twitter chat, and maintained an ongoing conversation at the official #BankLocally hashtag.
The association also continued its tradition of distributing
a toolkit of customizable resources community banks can
use to spread the word about banking locally, including
a customizable op-ed and news releases, an infographic
and selfie campaign, marketing and social media ideas,
and additional tools.
Rushville State Bank in Rushville, Ill.,
won ICBA’s third annual Main Street
Holiday Contest, earning a $300
donation to a local charity.
2015 ICBA Marketing Contest
In September, ICBA and Marquis recognized community banks that make plenty of
buzz on their own with the ICBA Marketing Contest, which listed the 10 best community bank marketing and branding campaigns. MutualBank of Muncie, Ind., ranked
best overall for its 125th anniversary celebration campaign. The year-long campaign,
which celebrated local residents who exemplify the bank’s vision of “Helping People
Live Better Lives,” resulted in more than $144,000 being distributed back into the
local community.
Community Banks: Making Hometowns Flourish 7.
Social Media
Making News
Meanwhile, the industry continued to prosper on social
media this year. Recognizing the strides that community
banks have made in social media, ICBA and SHAZAM released their lists of the Top 50 Community Bank Leaders in
Social Media and the Top 20 Community Banker Influencers
on Twitter. More than 9,000 individuals are following @ICBA
on Twitter, ICBA’s Facebook page has more than 4,200
likes, and the association’s YouTube channel has more
than 35,000 views. Also in 2015, more community banks
signed up for ICBA’s expanded Social Media Monitor, the
association’s social-media-monitoring tool with more than
1,210 community banks enrolled. Throughout 2015, the Social Media Monitoring service has monitored nearly 4,000
unique terms and has collected more than 5.3 million results for community banks enrolled in the program.
In addition to helping community bankers make news in
their communities, ICBA’s own media relations efforts paid
off with positive press coverage all year—including nearly
2,000 media placements. ICBA President and CEO Cam
Fine this year highlighted the importance of community
banking issues during a New York media tour. Fine visited
with reporters and editors at The Wall Street Journal, The
New York Times, Bloomberg View, the Associated Press
and others.
Other outlets featuring ICBA and community banks this
year include The Washington Post, The Washington Times,
USA Today, Politico, American Banker, Reuters, C-SPAN,
CNBC and Bloomberg Markets. Meanwhile, ICBA used its
new in-house video studio to develop useful programming
for community bankers.
Impacts ofthe
Highway LAW
ON Main Street
Communities
ICBA opposed using the banking sector to pay
for the new transportation law and rallied community
bankers nationwide to stop this bad precedent.
$10 can
be lent to small
businesses and home
buyers for every $1
of community
bank capital.
This particular ICBA
advocacy effort saved
$200 Million annually for
more than 1,800
community banks.
1,830
50%
of small
business
loans made
by community
banks.
43
The number of state
community banking
associations that
urged Congress to
scrap the dividend
cut.
Fed-member
community banks
with less than
$10 BILLION
A
community
bank with $1 Billion
in assets will
save roughly
$ 300,000 per year.
Engaging and
informing our
members and
our nation
Blogs
Publications
In addition to ICBA’s Go Local blog, which focuses on the
unique benefits of banking locally, Fine maintains his own
blog, Finer Points® (www.camfine.wordpress.com). With
nearly 12,000 views in 2015 and more than 100,000 since
he launched the blog in 2010, Fine this year focused on
issues such as proposed accounting updates, congressional advocacy and regulatory burdens facing community banks. His most popular post of the year, “Banks: An
Eponym of Epic Proportions,” reiterated the importance of
distinguishing between Wall Street megabanks and Main
Street community banks. “We must not allow the biggest
and riskiest financial firms to drag our reputations down
with them,” Fine wrote. “We cannot allow them to dilute
our brand.”
Community bankers continued to thrive in 2015 using
ICBA’s award-winning publications. ICBA Independent
Banker®, ICBA’s flagship monthly magazine available in
print and online at www.IndependentBanker.org, this year
spotlighted the nation’s top-performing community banks,
nearly 250 top-lending community banks, and six community bankers whose individual lending was truly exceptional. In addition, ICBA offers vital news and membership
information in the daily ICBA NewsWatch Today® electronic
newsletter, the weekly ICBA Member Access® and the ICBA
Services Network’s quarterly ICBA Profitability Solutions®.
NOVEMBER 2015
ICBA IndependentBanker | November 2015
TECHNOLOGY
ISSUE
INDEPENDENTBANKER.ORG
TECH TODAY
Stories of
technological
innovation in
community
banking
+
» De Novo Investing
» Collaborative Workspaces
» Data-Breach Responses
Community Banks: Making Hometowns Flourish 9.
ADVOCACY
The community banking
industry helped hometowns
flourish in 2015…
in part by
continuing to
foster a pro-community
bank environment through
ardent political advocacy.
Community Banks: Making Hometowns Flourish 11.
Plan for Prosperity
Accounting
ICBA’s comprehensive Plan for Prosperity regulatory relief
platform made considerable progress this year. The FAST
Act transportation law included provisions of the plan eliminating redundant privacy notice requirements, expanding
eligibility for the 18-month exam cycle to banks up to $1
billion in assets, allowing more banks to qualify as “rural”
mortgage lenders under Consumer Financial Protection
Bureau rules, and permitting thrift holding companies to
take advantage of new Securities and Exchange Commission registration thresholds. That law also restores funds
cut from the federal crop insurance program and drops
ICBA-opposed language that would have extended higher
Fannie Mae and Freddie Mac guarantee fees.
Meanwhile, ICBA’s ongoing campaign against the Financial
Accounting Standards Board’s burdensome accounting
standards proposal continues gaining traction. Following
intense advocacy, FASB met directly with ICBA and a delegation of community bankers over concerns with the proposed Current Expected Credit Loss model, which would
force community banks to record a provision for credit losses the moment they make a loan. In a victory for ICBA and
community banks, FASB also agreed to extend the CECL
implementation period to 2019-2020 from 2018 or sooner after receiving thousands of messages from community
bankers. ICBA continues leading its forceful grassroots initiative against the CECL plan.
Additionally, the House has passed numerous provisions—
including relief from mortgage-lending rules, Basel III, Sarbanes-Oxley, and the Volcker Rule—while Senate Banking
Committee Chairman Richard Shelby (R-Ala.) is working to
advance his multipronged regulatory relief bill through the
Senate.
Call Report
Fed Dividends
Following vocal outreach, ICBA and community bankers
scored another major victory in the FAST Act when Congress agreed to exempt most community banks from a 75
percent cut to dividends paid on Federal Reserve Bank
stock. The exemption from the Senate-passed plan for
community banks $10 billion and under in assets will save
the industry roughly $200 million per year. And lawmakers
softened the blow on banks over $10 billion by providing
a variable rate on Fed stock tied to the 10-year Treasury
note rate instead of a flat 1.5 percent.
12. 2015 Annual Report
Following passionate advocacy from ICBA and community
bankers, banking regulators this year issued a proposed
rule to simplify community bank call reports and laid out their
plans for additional reporting relief. In addition to proposing
to delete certain data items and revise reporting thresholds, regulators pledged to evaluate a streamlined quarterly
call report for community banks. This promise is a big win
for community banks because it could ultimately lead to a
shorter, less burdensome and more sensible call report—a
key element in ICBA’s overall regulatory relief strategy.
Mortgage Relief
Regulatory Representation
ICBA’s regulatory relief advocacy paid off with a final rule
that broadens small-creditor and rural designations under
the Consumer Financial Protection Bureau’s Regulation Z
mortgage rules. The ICBA-advocated change will allow
more community banks to receive Qualified Mortgage
legal safe-harbor protection for loans they originate and
retain in portfolio, including balloon-payment loans made
by rural lenders. It also will provide additional relief from
mandatory escrow requirements. However, ICBA continues to support legislation that would provide statutory QM
safe harbor legal status and escrow exemptions for any
community bank portfolio loan.
At the beginning of the year, community bankers wrapped
up a longstanding initiative when Congress and the president finalized a law requiring the White House to appoint
someone with community banking experience to the
Federal Reserve Board. The law includes ICBA-advocated
language that would require at least one member of the
Fed board to have experience as a community banker or
community bank supervisor.
Federal Home Loan Banks
Community banks scored a housing-finance success
when the Federal Housing Finance Agency rescinded an
ICBA-opposed plan requiring Federal Home Loan Bank
members to meet an ongoing asset test. The plan, which
was withdrawn in the FHFA’s final rule, would have required
FHLBank members to hold between 1 percent and 10 percent of their assets in home mortgage loans at all times.
ICBA continues urging the FHFA to amend its final rule to
rescind a provision barring captive insurance companies
from FHLBank membership.
ICBA community bankers met directly
with their members of Congress at
the April 2015 ICBA Washington Policy
Summit (left and page 11).
Community Banks: Making Hometowns Flourish 13.
Credit Unions and Farm
Credit System
ICBA also has succeeded in its efforts to promote more
equitable regulations on our industry’s government-sponsored competitors: credit unions and the Farm Credit
System. Community bankers rallied congressional opposition to the National Credit Union Administration board’s
proposed rule to relax business-lending rules for tax-exempt credit unions. Meanwhile, grassroots advocacy has
repeatedly stunted Farm Credit Administration efforts to
expand FCS powers.
Cybersecurity, Data Security
Congress passed ICBA-advocated legislation encouraging the public and private sectors to voluntarily share
critical cyber-threat information. The Cybersecurity
Information Sharing Act excluded several ICBA-opposed amendments that would have weakened the
bill. ICBA continues advocating the Data Security Act (S. 961/H.R. 2205), which would extend
Gramm-Leach-Bliley Act-like data-protection
standards that banks already comply with to
other holders of sensitive customer information, including retailers.
14. 2015 Annual Report
10.
Kathryn G. Underwood of Ledyard Bank in Norwich, Vt., (left)
and B. Doyle Mitchell Jr. of Industrial Bank in Washington,
D.C., (opposite) testified
before Congress on the
economic cost of patent
trolls and the threat of
excessive regulation
on
small-business
lending, respectively.
We don’t stop here.
Over the past year, ICBA and the nation’s community
bankers also:
•Advocated congressional and regulatory efforts to address risks posed by too-big-to-fail megabanks,
•Achieved a three-month delay in the effective date of
the CFPB’s TILA-RESPA Integrated Disclosure rule and
supported an additional hold-harmless period into 2016,
•Joined the Federal Reserve and NACHA in advancing
same-day automated clearing house (ACH) services,
•Attained important modifications to the FDIC’s positions
on brokered deposits,
•Stopped a plan to drastically increase IRS reporting requirements for any depositor who earned any amount
of interest in a calendar year and for non-interest-bearing accounts,
•Strongly supported legislation to rein in the Operation
Choke Point initiative,
•Continued working to advance additional curbs on patent abuse,
•Fought merchant attempts to increase their debit card
interchange windfall,
•Helped fast-track an extension of the Small Business
Administration’s 7(a) guaranteed loan program,
•Held off efforts by the U.S. Postal Service to enter the
banking industry, and
•Successfully got FASB to change its mark-to-market accounting plan, which would have required most assets
and liabilities to be reported at fair value,
•Disputed the Supreme Court’s decision upholding the
disparate-impact theory of liability.
Community Banks: Making Hometowns Flourish 15.
ICBA’s Washington
Policy Summit drew nearly 1,000
community bankers and industry
advocates representing 42 states
and the District of Columbia.
Community bankers descended on Capitol Hill for
meetings with members of Congress at the 2015
ICBA Washington Policy Summit.
ICBA Washington Policy Summit
In April, ICBA’s Washington Policy Summit drew nearly 1,000
community bankers and industry advocates to the nation’s
capital to discuss issues that impact community banks, local
economies and the customers they serve on Main Street.
Community bankers representing 42 states and the District of Columbia met with their members of Congress
and federal financial regulators to discuss issues such
as regulatory relief, data and cyber security, and repealing taxpayer-funded subsidies for credit unions
and Farm Credit System lenders. Attendees also
heard from Senate Banking Committee Chairman
Richard Shelby (R-Ala.), House Subcommittee on
F i nancial Institutions and Consumer Credit Chairm a n
Randy Neugebauer (R-Texas), and Federal Reserve
Governor Daniel K. Tarullo.
16. 2015 Annual Report
ICBPAC’s annual silent auction raises funds
to support federal candidates who understand community banking.
ICBpac®
The Independent Community Bankers Political Action Committee—the non-partisan political action committee of the ICBA—had another successful year. With
more than $1 million in contributions in 2015, ICBPAC will support over 200 candidates in the 2016 federal elections and is well-positioned to further strengthen
the community banking industry’s voice and reputation in Washington.
Be Heard
ICBA’s Be Heard grassroots website (www.icba.org/beheard) offers customizable
letters to policymakers that community bankers can use to advance the industry’s
advocacy goals. The online resource center is a one-stop shop to track important
legislation, learn more about pressing industry issues, and speak out on behalf of
community bankers nationwide.
Community Banks: Making Hometowns Flourish 17.
EDUCATION
Community Banker University
served more than 120,000
community bankers
in 2015.
Professional Development,
Personal Enrichment
ICBA transformed its already-robust professional development offerings in 2015 with the launch of Community
Banker University, a new professional development initiative that expands on ICBA Education. Through an alliance
with the Barret School of Banking and Athabasca University, Community Banker University provides educational
opportunities for community bankers as well as accredited
professional continuing education for bankers who seek a
future career in community banking.
More than 120,000 community bankers took advantage
of the expanded education offerings in 2015 to increase
their knowledge and skills and to enhance their ability
to serve their customers and communities. Community
Banker University offered a curriculum of more than 90
conferences, professional certification programs, webinars, certificate programs and classroom seminars across
the nation as well as more than 300 online courses. Its
educational courses offered opportunities for community
bankers to receive certifications in a variety of areas, including internal auditing, Bank Secrecy Act and anti-money-laundering, compliance, information technology, bank
security, and consumer and commercial lending.
Community Banks: Making Hometowns Flourish 19.
Sara Canaday
gave a powerful
speech on emotional intelligence at the
Leadership Development Conference
general session.
20. 2015 Annual Report
ICBA Leadership Development Conference
Also this year, ICBA hosted its third annual Leadership Development Conference in
Indianapolis. As the only nationally recognized leadership event for community bankers, this conference provides mid- and upper-level executives the opportunity to think
critically, share experiences and develop their leadership skills and influence.
The September conference featured inspiring and motivating keynote speakers
who challenged attendees to embrace change and showcased innovative ways
to strengthen leadership proficiencies. Education sessions covered topics such as
rules of leadership for community banking, strategies to attract Millennial customers, innovative ways to build social capital, and effective motivation techniques for
multiple generations. In addition, networking opportunities on a national level allowed attendees to expand their engagement and interaction.
ICBA hosted its third
annual Leadership Development Conference
to inspire, motivate and
challenge mid- and upper-level executives.
Community Banks: Making Hometowns Flourish 21.
Nearly 3,000
community bankers
and industry leaders
gathered at this year’s ICBA
Community Banking LIVE
national convention.
22. 2015 Annual Report
ICBA Community Banking
LIVE National Convention
In March, ICBA Community Banking LIVE in Orlando, Fla.,
brought together nearly 3,000 community bankers and industry leaders to the largest gathering of community bankers in the
world. First-time attendance was strong, demonstrating that community bankers still view LIVE as the industry’s foremost opportunity to connect and establish relationships with community bank leaders from across the
country.
The event featured nine unique education tracks comprising nearly 65 educational workshops and numerous networking opportunities as well as remarks from Cinnabon Inc. President
Kat Cole, former Hewlett-Packard Chairman and CEO Carly Fiorina, former moderator of NBC’s
Meet the Press David Gregory and baseball hall-of-famer Cal Ripken Jr.
The Expo again offered access to the latest innovations and newest services to keep community
banks flourishing. Attendees received up-to-the-minute information on the convention with the ICBA
2015 Mobile App and by following the #ICBALive15 hashtag on Twitter. In addition, bankers who
could not attend were able to follow along thanks to ICBA LIVE TV.
ICBA
ICBA Community Banking
LIVE in Orlando, Fla.,
featured access to
hundreds of community bank service
providers at the
Expo.
Community Banks: Making Hometowns Flourish 23.
SOLUTIONS
ICBA membership provides
community bankers exclusive
access to financial products
and services to help them
continue to flourish
and serve their
communities.
ICBA Services Network
ICBA membership provides community bankers exclusive access to financial products and services to help them continue to flourish and serve their communities. In
2015, more than 80 percent of ICBA members used a product or service from one
or more of the ICBA Services Network financial services companies or more than 30
ICBA Preferred Service Providers.
ICBA Bancard® & TCM Bank, N.A.®
ICBA Mortgage®
ICBA Reinsurance®
ICBA Securities®
ICBA Strategic
Technology Solutions™
ICBA Preferred
Service Providers®
Community Banks: Making Hometowns Flourish 25.
33 W. Monroe St.
Suite 500
Chicago IL 60603
(312) 845-2700
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In 2015, ICBA Bancard distributed more than $730,000 in
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26. 2015 Annual Report
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ICBA Bancard also welcomed a new merchant processing
partner, FiNet, in 2015. The new program allows banks to
outsource the merchant services process to avoid risks
and costly overhead, while strengthening relationships
with local merchants.
TCM Bank, N.A., ICBA Bancard’s subsidiary, dedicated
2015 to enhancing the agent bank and cardholder experience by expanding its product offerings. TCM issued
its first EMV chip cards in March 2015 and completed
full EMV enablement for its agent banks in October. In
addition, the ScoreCard® rewards program for TCM’s
agent bank cardholders was enhanced and rebranded to cRewardsSM. The cRewards interactive website
displays the agent bank’s logo, reinforcing the community bank’s brand throughout the entire cardholder
experience. TCM also enhanced its online application platform to now include business credit cards. In
2015, TCM Bank continued adding volume through
its 653 community bank agent network and now
represents a $164 million portfolio, managed by
card industry professionals in Tampa, Fla.
ICBA Bancard and TCM Bank offer consumer
and business credit card programs (direct issue
or managed risk), consumer and business debit
cards, card reward programs, turnkey marketing
support, card education, credit card portfolio
consultations, purchase and valuation services,
exclusive fraud-loss protection and risk-management solutions, merchant processing and
ATM driving.
Community Banks: Making Hometowns Flourish 27.
Investment Portfolio
Services
Mortgage Products and
Services
ICBA Securities completed a successful year with sales
volume in the top third in its 26-year history. ICBA’s institutional broker-dealer also now has endorsement relationships with 36 state affiliates.
ICBA Mortgage continued providing community banks direct and indirect access to the secondary mortgage lending market and other mortgage-related products and services. Strategic secondary market partnerships, powerful
technology, superior training courses and a wide range of
mortgage programs enable community banks to expand
their market share, generate fee income and compete
with the large mortgage players in today’s market.
ICBA Securities has continued to expand its educational
reach, with more and varied offerings of seminars, webinars and its highly successful Bond Academy. It participated in more than 50 educational events in 2015 and spoke
in front of more than 2,500 community bankers.
ICBA Securities was founded to provide community bankers with high-quality investment products, services and
education at competitive prices. More than 2,000 community banks used ICBA Securities and its exclusive broker
Vining Sparks for their investment needs in 2015.
ICBA Mortgage’s ongoing agreement with D+H Mortgagebot ensures that community banks continue to enjoy affordable access to leading mortgage-origination technology. D+H Mortgagebot helps community banks originate
mortgage loans in a cost-effective and compliant manner.
Additionally, ICBA Mortgage Solutions® Powered by LenderLive offers a competitive correspondent lending, community bank-friendly, secondary market investor outlet.
ICBA Mortgage Solutions offers ICBA members access to
all agency loan programs, including high-balance and jumbo loan programs, as well as FHA loans. Since its launch in
2010, ICBA Mortgage Solutions has helped ICBA-member
community banks reduce overhead costs by increasing efficiency and remaining compliant while increasing market
share.
Joe Chodkiewicz,
regional account
manager for ICBA
Mortgage Solutions;
Al Tinney, vice president of lending operations; and Larry Boyer,
president of Waterford
Bank, N.A.
28. 2015 Annual Report
Payment Protection Sales
and Services
ICBA Reinsurance, ICBA’s credit insurance services corporation, in 2015 worked with hundreds of community
banks in 24 states to provide them with all the benefits
of owning a captive reinsurance company without the
capitalization costs or administrative expenses. Program participants benefited from the community bank–
owned company’s strategic alliances with life insurance
companies Transamerica and the Plateau Group. Community bankers were able to increase their knowledge
and maximize efficiencies with recurring product knowledge and sales skills training opportunities, marketing
support, and state-of-the-art tools and reporting.
In the fourth quarter of 2015, ICBA Reinsurance paid
participating community bank shareholders its 13th consecutive dividend. The $175,000 dividend was paid to
banks that qualified for a dividend based on 2014 results. Nearly 50 percent of ICBA Reinsurance shareholders received a dividend, representing 5.4 percent
of their earned surplus. To date, ICBA Reinsurance has
paid more than $22 million in commission income and
$13.8 million in claims on behalf of community banks to
their customers. Since its inception, ICBA Reinsurance
shareholders have received more than $2.1 million in
dividends.
Steve Ello, president and CEO of ICBA
Reinsurance (center left), attends the
2015 Washington Policy Summit with
representatives from one of ICBA Reinsurance’s vendor partners.
Community Banks: Making Hometowns Flourish 29.
ICBA Strategic Technology
Solutions
ICBA Strategic Technology Solutions (STS) provides community banks with industry-best outsourced IT management services, helping ICBA member banks be more
competitive, efficient and secure. ICBA STS is a strategic
alliance between ICBA and D+H® that leverages D+H’s
Compushare C3 platform to assist community banks in
better managing technology and compliance.
ICBA STS takes a customized approach to help community
banks find the right solution to meet their unique IT strategy. The suite of products provides financial institutions with
additional IT support and enables them to move some or
their entire IT infrastructure to a fully hosted, secure and
redundant cloud environment, eliminating the headache
and costs of maintaining a local infrastructure. At the end
of 2015, 100 ICBA member banks relied on D+H’s Compushare C3 cloud computing and managed services.
Hundreds of service providers
gathered at ICBA LIVE’s exhibit
hall in March to meet and mingle
with community bankers.
30. 2015 Annual Report
ICBA Preferred Service
Providers
ICBA’s team of more than 30 Preferred Service Providers keep bankers and their customers engaged through
unique services that bring value to community banks. In
2015, ICBA added three new Preferred Service Provider
programs. Verafin, a leading cloud-based, cross-institutional fraud detection and anti-money laundering (FRAMLx) software, uses advanced cross-institutional behavior-based analytics to help banks stay a step ahead of
numerous types of crimes. Passageways’ OnBoard software allows community banks to digitally compile and
distribute materials for their board of directors, while their
Employee Intranet facilitates collaboration across departments. Meanwhile, ICBA Preferred Service Provider EnCirca
helps members secure and activate .BANK domain names,
offers educational resources explaining the entire process, and offers preferred pricing.
ICBA also expanded program offerings with several Preferred Service Providers, including compensation consulting services from MBenefit Solutions and Card@Once Instant Issuance from CPI Card Group.
Also in 2015, ICBA announced that more than 1,200 member community banks will share a $3 million policyholder
dividend as part of their participation in the Travelers SelectOne ICBA insurance program. It is the 14th consecutive
dividend that participating banks have gained through the
program. Since the program’s inception in 1983, it has paid
more than $48 million in policyholder dividends.
Community Banks: Making Hometowns Flourish 31.
LEADERSHIP
ICBA’s leaders are selected
by community bankers
for their dedication to the
industry.
ICBA’s 2015-2016 Officers
From left: Treasurer Preston L. Kennedy, President and CEO Camden R. Fine, Chairman-Elect Rebeca Romero Rainey, Vice Chairman R. Scott Heitkamp, Chairman Jack A.
Hartings, Immediate Past Chairman John H. Buhrmaster and Secretary J. Michael Ellenburg.
Community Banks: Making Hometowns Flourish 33.
2015-2016 ICBA Board of Directors
Chairman*
Past Chairman*
At-Large State Delegate
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
William A. Loving Jr.
Pendleton Community Bank
Franklin, W.Va.
John V. Evans Jr.
D.L. Evans Bank
Burley, Idaho
Chairman-Elect*
Past Chairman*
Bank Education Chairman
Rebeca Romero Rainey
Centinel Bank
Taos, N.M.
Jeffrey L. Gerhart
Bank of Newman Grove
Newman Grove, Neb.
Robert L. Page
Florida Citizens Bank
Gainesville, Fla.
Vice Chairman*
Past Chairman
R. Scott Heitkamp
ValueBank Texas
Corpus Christi, Texas
James D. MacPhee
Kalamazoo County State Bank
Schoolcraft, Mich.
Bank Operations and
Payments Chairman
President & CEO*
Past Chairman
Camden R. Fine
ICBA
Washington, D.C.
Salvatore Marranca
Cattaraugus County Bank
Little Valley, N.Y.
Secretary*
Services Network Chairman*
J. Michael Ellenburg
First Southern State Bank
Stevenson, Ala.
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Treasurer*
At-Large State Delegate
Marti Tomson Rodamaker
First Citizens National Bank
Mason City, Iowa
Preston L. Kennedy
Bank of Zachary
Zachary, La.
Noah W. Wilcox
Grand Rapids State Bank
Grand Rapids, Minn.
Policy Development
Chairman
Immediate Past Chairman*
At-Large State Delegate
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
Chuck Johnston
North Valley Bank
Thornton, Colo.
At-Large State Delegate
Greg Ohlendorf
First Community Bank & Trust
Beecher, Ill.
34. 2015 Annual Report
Samuel A. Vallandingham
The First State Bank of West
Virginia
Barboursville, W.Va.
Bank Services Chairman
Scott F. McBride
First Northern Bank of Wyoming
Buffalo, Wyo.
ICBPAC Chairman
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
Corporate Secretary *
Mark A. Raitor
ICBA
Washington, D.C.
* Executive Committee
2015-2016 ICBA Federal Delegate Board
Verlin J. Barker
Community Bank of Oelwein
Oelwein, Iowa
C. R. Cloutier
MidSouth Bank, N.A.
Lafayette, La.
Camden R. Fine
ICBA
Washington, D.C.
David E. Hayes
Security Bank
Dyersburg, Tenn.
Robert Barnes
PriorityOne Bank
Magee, Miss.
Wes Condron
America’s Community Bank
Blue Springs, Mo.
Paul E. Fitzgerald
First Choice Bank
Kingston, N.J.
R. Scott Heitkamp
ValueBank Texas
Corpus Christi, Texas
Dick D. Behl
The Farmers and Merchants
State Bank
Scotland, S.D.
John C. Corbett
CenterState Bank
of Florida, N.A.
Winter Haven, Fla.
Carolyn E. Flynn
Community Financial Services
Bank
Benton, Ky.
Kurt R. Henstorf
First Heritage Bank
Shenandoah, Iowa
Paul T. Bennett
Alma Exchange Bank & Trust
Alma, Ga.
Dan K. Coup
The First National Bank
of Hope
Hope, Kan.
Alice P. Frazier
Cardinal Bank
McLean, Va.
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Thomas A. Borner
Putnam Bank
Putnam, Conn.
Blaine A. Boudreau
Sanford Institution for Savings
Sanford, Maine
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
Thomas G. Caldwell
The Middlefield Banking Co.
Middlefield, Ohio
Kent Carruthers
The Citizens Bank of Clovis
Clovis, N.M.
Robert A. Catanzaro
Independence Bank
East Greenwich, R.I.
Russell David Crader
The Bank of Missouri
Cape Girardeau, Mo.
Larry K. Deason
Farmers and Merchants Bank
Anniston, Ala.
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
Stephen J. Eager
Union Bank & Trust Co.
Evansville, Wis.
J. Michael Ellenburg
First Southern State Bank
Stevenson, Ala.
James A. Espeland
First National Bank of Henning
Henning, Minn.
John V. Evans Jr.
D.L. Evans Bank
Burley, Idaho
Terry W. Frydenlund
1st Bank Yuma
Yuma, Ariz.
Henry M. Funderburk III
Dedicated Community Bank
Darlington, S.C.
David M. Geis
Jackson County Bank
Seymour, Ind.
Jeffrey L. Gerhart
Bank of Newman Grove
Newman Grove, Neb.
Mark Hesser
Pinnacle Bancorp Inc.
Central City, Neb.
Mark A. Holmes
Cornerstone Bank
Wilson, N.C.
Thomas A. Holt
First Northern Bank of Wyoming
Buffalo, Wyo.
Jack E. Hopkins
CorTrust Bank, N.A.
Sioux Falls, S.D.
David Hunsicker
New Tripoli Bank
New Tripoli, Pa.
Paul C. Goodpaster
The Citizens Bank
Morehead, Ky.
Lonnie Iholts
Banner Bank
Florence, Ore.
James E. Graham
Woodsville Guaranty Savings Bank
Woodsville, N.H.
Gerald C. Johnson
Grand Ridge National Bank
Grand Ridge, Ill.
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
Chuck Johnston
North Valley Bank
Thornton, Colo.
Community Banks: Making Hometowns Flourish 35.
2015-2016 ICBA Federal Delegate Board
Christopher K. Jordan
Farmers State Bank
Stigler, Okla.
Preston L. Kennedy
Bank of Zachary
Zachary, La.
Patrick A. Kerschen
Freeport State Bank
Harper, Kan.
Andrew J. King
Three Rivers Bank of Montana
Kalispell, Mont.
Melany H. Kniffen
Southern Commercial Bank
St. Louis, Mo.
Peter Kubacki
The Dart Bank
Mason, Mich.
Mark A. Mangano
Northern Hancock Bank
& Trust Co.
Newell, W.Va.
Salvatore Marranca
Cattaraugus County Bank
Little Valley, N.Y.
Scott F. McBride
First Northern Bank
of Wyoming
Buffalo, Wyo.
Cliff McCauley
Frost Bank
San Antonio, Texas
Samuel L. Neese
Highlands Union Bank
Abingdon, Va.
Chris Nunn
Security Bancorp of Tennessee
Halls, Tenn.
Dale L. Leighty
The First National Bank
of Las Animas
Las Animas, Colo.
Greg Ohlendorf
First Community Bank & Trust
Beecher, Ill.
William A. Loving Jr.
Pendleton Community Bank
Franklin, W.Va.
Steven S. Olson
MinnStar Bank, N.A.
Lake Crystal, Minn.
Marshall A. MacKay
Independent Community
Bankers of Minnesota
Eagan, Minn.
Robert L. Page
Florida Citizens Bank
Gainesville, Fla.
Paul Mackin
Think Mutual Bank
Rochester, Minn.
Robert L. Palmer
Community Bankers
Association of Ohio
Columbus, Ohio
James D. MacPhee
Kalamazoo County State Bank
Schoolcraft, Mich.
Rogers Pope Jr.
Texas Bank and Trust Co.
Longview, Texas
36. 2015 Annual Report
Donald P. Queenin
Northern Bank & Trust Co.
Woburn, Mass.
Jill Sung
Abacus Federal Savings Bank
New York, N.Y.
Rebeca Romero Rainey
Centinel Bank of Taos
Taos, N.M.
Scott Tewksbury
Heartland State Bank
Edgeley, N.D.
Mark A. Raitor
ICBA
Washington, D.C.
Mickey B. Thomas
South Louisiana Bank
Houma, La.
William J. Riddle
Community Bank Delaware
Lewes, Del.
William R. Trezza
BAC Community Bank
Stockton, Calif.
Marti Tomson Rodamaker
First Citizens National Bank
Mason City, Iowa
Kathryn Underwood
Ledyard National Bank
Norwich, Vt.
Mark A. Schroeder
German American Bancorp
Jasper, Ind.
Sam Vallandingham
The First State Bank
Barboursville, W.Va.
Thomas C. Sellers
Alliance Bank
Sulphur Springs, Texas
Noah W. Wilcox
Grand Rapids State Bank
Grand Rapids, Minn.
John Slatky
Bank of Luxemburg
Luxemburg, Wis.
Derek B. Williams
Columbus Community Bank
Fortson, Ga.
Darrel A. Small
Town & Country Bank
Las Vegas, Nev.
Christopher Williston
Independent Bankers
Association of Texas
Austin, Texas
Milton B. Smith
First National Bank
of Lawrence County
Walnut Ridge, Ark.
Preston G. Smith
The First National Bank
Mattoon, Ill.
A. Pierce Stone
Virginia Community Bank
Louisa, Va.
Michael R. Wimer
Cattaraugus County Bank
Little Valley, N.Y.
Robert J. Wingert
Community Bankers
Association of Illinois
Springfield, Ill.
Larry W. Winum
Glenwood State Bank
Glenwood, Iowa
2015-2016 ICBA Services Network
Board of directors
Chairman
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Vice Chairman
Camden R. Fine
ICBA
Washington, D.C.
Board Members
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
Joseph G. Pierce
Farmers State Bank
Lagrange, Ind.
Judith Sullivan
Community Bankers of Michigan
East Lansing, Mich.
Noah W. Wilcox
Grand Rapids State Bank
Grand Rapids, Minn.
William E. Wood
Clearfield Bank & Trust Co.
Clearfield, Pa.
Timothy K. Zimmerman
Standard Bank
Monroeville, Pa.
President and CEO
Gary Teagno
ICBA Services Network
Washington, D.C.
Chief Operations Officer and CFO
Patricia Hopkins
ICBA
Washington, D.C.
Community Banks: Making Hometowns Flourish 37.
www.ICBA.org