October 2022 • Volume 7 • No. 10

inside...

Enhancing Data Security in an Increasingly Digital Space 3 Ways to Utilize Automation as a Strategic Tool Foreclosures and Private Selling Officers-What to make of it? The Four Pillars of Employee Email Safety and so much more

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ON THE COVER

Building Stronger Community Banks A Conversation with the Mackinac Credit + Compliance Team

Enhancing Data Security in an Increasingly Digital Space By Michael Carroll

3 Ways to Utilize Automation as a Strategic Tool By Griffin McGahey

Foreclosures and Private Selling Officers-What to make of it? By Chris Cox

The Four Pillars of Employee Email Safety

By Austin Jabs

PUBLISHER’S PAGE The monthly letter from Publisher Greg O’Neil

ASSOCIATION NEWS The latest from both national and regional bank associations

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BUSINESS OF BANKING Banking business news including mergers, acquisitions, and more

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FINANCIAL NEWS Financial news from banks around the Great Lakes region

COMMUNITY ACTION Banks and their involvement and action in the communities they serve

INDUSTRY NEWS The people, places, names, and faces of the region’s bankers

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Great Lakes Banker (ISSN: 1044-1949) is published monthly by Michigan Banker LLC, 1370 Bennett Road, Lansing MI 48906. It is edited exclusively for the presidents, CEOs, directors, and other officers and staff members of the banks and bank suppliers serving the Great Lakes region. The one-year subscription price is $97.50. Address all correspondence to Great Lakes Banker, c/o Michigan Banker LLC, PO Box 12236, Lansing MI 48901-2236. Periodicals postage pending or paid at Lansing MI and at additional mailing offices. POSTMASTER: Please send address changes to Great Lakes Banker, PO Box 12236, Lansing MI 48901-2236. Greg O’Neil, CEO.

Great Lakes Banker • October 2022

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October 2022 The peak of the Autumn season is now over throughout most of the Great Lakes, but we’ve captured it here in an image of a Lake Superior Cove...located not too far from the offices of MCC, the subject of this month’s cover story. And speaking of coves, the fleet’s in with a record number of financial reports from across the region in the Banking Financial News department. October is cybersecurity month and we have two features that cover different facts of the subject. You’ll also lean about automation as a strategy as well Private Sale Officers in the mortgage sector. I want to thank all of the banks, services, and authors that have contributed the content we’ve jam packed into this month’s issue.

Greg O’Neil - Publisher

Greg O’Neil - Publisher Published by Michigan Banker LLC Printed & Mailed by BRD Printing Inc. Lansing, MI Copyright ©2010 ISSN 1044-1949.

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Steve Salter - Editor Great Lakes Banker P.O. Box 12236 Lansing, MI 48901-2236

Design - Tay Creation [email protected] [email protected] greatlakesbanker.com

Great Lakes Banker • October 2022

BUILD A WINNING CANNABIS BANKING PROGRAM GET THE GUIDE TO COMPLIANT CANNABIS BANKING The emerging legal cannabis industry brings significant growth potential, along with challenging operational demands and complex regulations. But cannabis banking does not have to mean high-risk banking. To ensure the processes, procedures, technology, and trained staff are in place to serve this industry, bankers need to start with a plan. Having a clear understanding of what is required to serve cannabis businesses and minimize risk to the financial institution will help bankers prepare for the upfront costs associated with cannabis banking and develop the policies and procedures needed to hit the ground running. With regulations varying from state to state, it’s a complex industry with high costs, requiring a considerable investment of time and energy. Compliant banking operations require continuous enhanced due diligence to help guard against risks such as:

Cannabis banking, simplified. Shield Compliance transforms how financial institutions manage risk, comply with regulations, and address the operational demands of the legal cannabis industry.

A Robust Illegal Market. According to New Frontier Data, the legal cannabis market in the U.S. is expected to reach $41 billion by 2025. Unfortunately, the illicit market, valued at $65 billion by some estimates, is shrinking at a slower pace. Financial institutions must ensure that funds coming through their doors are from legal channels.

Compliance management for financial institution daily operations, including case management and automated reporting.

Bad Actors. To ensure bad actors are not attaching themselves to good businesses, enhanced due diligence conducted around underlining beneficial owners will continue to be at a heightened level for the foreseeable future.

Legacy Cash. Because the cannabis market existed as a cash business long before legalization and because the industry continues to operate largely as a cash business, a strong BSA/AML program will help ensure that funds coming into the financial institution are from legal cannabis operations. While the added burden and cost associated with serving this industry may limit the total number of participants in the short term, we expect competition from financial institutions to steadily increase as more states launch legal programs and we get closer to federal recognition. Financial institutions that invest in technology to improve efficiencies and lower costs today will be able to scale as the industry grows and have a competitive advantage when the economics of the industry change over time and new banks and credit unions enter the market. Informed by the experiences of pioneering bankers across a growing number of states with legal medical and adult-use programs, the Shield cannabis banking playbook defines a path forward for financial institutions to serve cannabis-related businesses compliantly while benefiting from the financial rewards of this market.

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Building Stronger Community Banks There’s a new partner in community banking, with a specialized focus on credit administration and compliance management services. Launched in 2022 by former mBank Executives, Mackinac Credit + Compliance (MCC) provides risk oversight services that strengthen community banks across the country and position them for prudent growth. It’s a crucial need: Independent Community Bankers of America reports community banks comprise 99% of all banks in the United States and provide “roughly 60% of all small business... [and] more than 80% of agricultural loans.” With so much lending competition, an ever-changing, more complex regulatory environment, increasing talent attraction and retention challenges and strengthening economic headwinds, MCC helps community bank CEOs and Chief Credit and Risk Officers enhance their loan production and compliance with support from experienced team members, proven technology and streamlined processes. Michael Tierney, current CEO of Community Bankers of Michigan and an MCC board member, explained why a service like MCC’s is so vital, “You just need one loan officer who doesn’t update key data in your systems to put your bank at risk. Without business processes in place to force that information into your

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systems, and oversight to ensure it’s actually happening, you’ve got risk. Unfortunately, that risk can happen in community banks more easily because so many people wear multiple hats.”

Led by Experienced Community Banking Professionals After successfully turning around and growing Michigan’s Upper Peninsulabased mBank to $1.5B in assets (prior to its sale in September 2021), CEO Kelly George and President Tammy McDowell teamed up again to launch MCC. Together, they bring decades of community banking experience and a holistic, pragmatic perspective on effectively managing enterprise risk and growing shareholder value. George explained why this experience matters to clients, “Community bank leaders know we have been in their shoes and seats; we can help them navigate a complex industry makeup and land safely wherever they want to go.” Community banks are the

MCC’s Experience, Expertise and Engagement Bring Stability in an Ever-Changing Market Environment

primary economic engine, employers and civic caretakers in the markets they serve. Ensuring they remain in good order is critical for many of these smaller towns and communities to prosper for future generations.” George and McDowell are joined on the leadership team by Jeremy Flodin, SVP Finance Officer and Senior Credit Risk Analyst; former FDIC Examiner Scott Alexander, SVP + Director of Compliance; and Brian Wawsczyk, VP Regulatory and Credit Services. George expanded, “We have a large bandwidth of services and skill sets available to help community banks grow no matter the strategy the Board and Management choose to take. Our team has worked through the recession of 2008-2011 and the corresponding regulatory and problem asset challenges, consummated numerous M&A transactions on the growth side and navigated the most recent pandemic while operating our prior bank increasing shareholder returns throughout.” McDowell added, “MCC wants to be a value-add partner for community banks to help them better position themselves for prudent growth. Our value comes directly from our decades of knowledge building. Not only can MCC support client needs in credit and compliance, but our experience also means we can bring insights

Great Lakes Banker • October 2022

into overall bank operations, along with mergers and acquisitions.”

Comprehensive Credit Support This insight and expertise matter, as many community bank credit departments have significant talent and attraction challenges. The U.S. Bureau of Labor Statistics expects there to be approximately 29,000 openings for loan officers every year through 2031, many as a result of replacing workers and baby boomer retirements. On top of the absolute number of jobs needing to be filled, community banks can struggle to meet expectations of up-and-coming millennial and Gen Z workers (who value upward mobility and rapidly increasing job responsibilities) while building the expertise and experience needed for top-quality loan processing and risk management.

There will be 29,000+ loan officer job openings each year for the next 10 years. MCC, by providing support at every part of the credit administration process, offsets the expertise gap and holds risk to acceptable levels while allowing community banks to reduce the time, training and

expense of procuring skilled staff and best-in-class technology. A partnership like this also gives bank leaders more time and resources to focus on generating revenue and increasing shareholder value. Tierney, also a former bank executive observed, “[in my old job], we would have done all the loan tracking and portfolio management with MCC because we always wanted a higher quality tool and service, and we weren’t big enough to build it ourselves. It’s the people and the experience they have as community bank leaders, plus the software, that provides banks a full solution.” He continued, “Sometimes bank leaders worry: if I outsource… what happens to my job? But MCC isn’t trying to replace people, they’re augmenting their skills.” McDowell shared, “If a company like MCC had been available when I was a Chief Credit and Operations Officer, they could have supported us in many ways. From supplementing staff in hard-to-find-and-train-for areas like loan processing, to providing expertise and consistency in credit underwriting, MCC gives Credit and Risk Officers a level of constancy to maintain business efficiency without losing control of the entire process.”

“Our value comes directly from our decades of knowledge building. Not only can MCC support client needs in credit and compliance, but our experience also means we can bring insights into overall bank operations along with mergers and acquisitions.”

Proactive Compliance Minimizes Risk MCC also helps community banks see the forest through the trees in an ever-changing regulatory environment with compliance solutions for lending, deposits, online and mobile banking, treasury management, BSA and more. Led by Scott Alexander, a 35-year industry veteran and former FDIC Examiner in Wisconsin and Michigan’s Upper Peninsula, this is an area where many community banks have struggled to stay on top of new, complex regulations. Alexander said, “In my experience, 99% of community banks want to comply but often struggle to find the expertise, talent and resources needed to meet increasing regulatory requirements. In fact, I believe some of the M&A activity over the past decade has been driven in part by the challenge of finding talent and expertise to keep up with the changing environment.” He continued, “With a partner like MCC, community banks can be confident that they have the monitoring, auditing, training and consulting needed to be successful, well-rated by the regulatory agencies and adhere to consumer compliance laws and regulations.” MCC tailors these services to ensure appropriate compliance protocols are established and operating effectively.

Because each bank is as unique as the community it serves, MCC takes a collaborative approach to providing services. From full outsourcing to co-sourcing to coaching, and everything in between, the team works with bank leaders to find the right approach for each situation.

TAMMY MCDOWELL PRESIDENT, MACKINAC CREDIT + COMPLIANCE

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Supporting Needs Today + Into the Future As interest rates rise and talk of a possible recession continues, the need for strong risk management is more important than ever for community bank leaders. McDowell shared her own experience. “It’s harder to manage a commercial lending portfolio in a recession: you get a lot more regulatory scrutiny, and higher risk loans need to be looked at carefully every quarter. Looking for companies that are showing signs of weakness, and ensuring you’ve taken steps to protect your loan, is critical. Having a partner like MCC can help you proactively manage your clients and your risk, and make sure you have the tools to do it well.”

As talk of a possible recession continues, the need for strong risk management is more important than ever for community bank leaders.

When asked about the future of community banks, Tierney was reflective. “It is getting harder and harder to run a small-to-midsized community bank without partnering in key areas. You have to take advantage of the technology and expertise that’s available, in order to remain viable for the next generation.”

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CEO + Founder

Tammy McDowell President + Founder

McDowell, recently returned from the Community Bankers of Michigan conference, shared the community banks’ reactions. “The time for MCC is now. I couldn’t believe how excited [community bank] Presidents and Chief Credit Officers were. They told me it’s taking them an additional month to process and underwrite loans because they can’t find qualified staff. I get so much satisfaction from showing how we can help and sharing our customer success stories with them. I love helping community banks and the industry in total still after 35 years.”

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Enhancing Data Security in an Increasingly Digital Space During the COVID-19 pandemic, the adoption of online and mobile banking surged, forever altering the landscape of the banking industry. However, to offer a competitive digital banking experience for customers, community banks often rely on external technologies from third parties. More digital touchpoints can pose an additional cyber risk, so financial institutions and their fintech partners must maintain a comprehensive approach to risk management. Before adopting new digital tools or services from a prospective fintech partner, banks must ensure the fintech has the appropriate safeguards in place to protect critical customer data and minimize the risk of a cyber attack. By leveraging best-in-class security techniques and reliable infrastructure, processes and controls, a fintech company can provide the highest level of security for their bank clients. Here are some security considerations when evaluating a potential fintech partner. By understanding how they approach the following risk mitigation tactics, your bank can raise the bar on security in an increasingly digital space.

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By Michael Carroll

Account Security User Authentication & “Step up” Authentication Ensure that any digital banking technology your institution implements will support multi-factor authentication with a strong username and password requirement to verify login attempts. With multi-factor authentication, customers must enter a temporary passcode sent to their email or phone after inputting the correct username and password. This adds an extra layer of security to the online and mobile banking sign-on process, with minimal added effort from customers. Any fintech you partner with should also support additional layers of security for certain activities. For instance, an additional multi-factor authentication step can also be required when customers want to update contact information or make external money transfers.

Application Security To maintain application security, your fintech partner should have multiple security precautions in place, such as data sanitization, blurring minimized apps, and weak password policies to protect your bank and your customers’ information.

Great Lakes Banker • October 2022

Penetration testing To minimize the risk of a security breach, make sure your fintech partner utilizes third-party security experts to regularly perform detailed penetration tests on its infrastructure. Especially valuable is being able to review the penetration testing methodology used in the penetration test – there’s a big difference between cheap “check the box” penetration tests and more thorough ones meant to produce meaningful results.

Infrastructure Security Cloud & API Security When vetting potential fintech partners, consider their data storage and usage policies. Cloud-based infrastructure is far more secure and scalable than the traditional method of using local storage. Platforms hosted on the cloud, such as Microsoft Azure, have world-renowned data centers and industry-leading physical security systems. As the banking industry continues to leverage more APIs, banks should make sure they have a platform that accounts for content delivery network (CDN) asset caching, API rate-limiting, and distributed denial-ofservice (DDoS) attack mitigation. Patching & Scanning The importance of scanning for and patching vulnerabilities cannot be overstated. Always ensure your fintech partners have system patching and upgrade processes that adhere

Great Lakes Banker • October 2022

to the Federal Financial Institutions Examination Council (FFIEC) and SOC2 guidance, as well as other security industry standards. Encryption For any digital platform, all data should be encrypted at rest, with additional field-level encryption applied to sensitive data elements. External traffic should be encrypted and verified by a leading third-party certificate authority. Most cyber-attacks can be mitigated with proper risk management controls. By thoroughly vetting a potential fintech partner’s security controls, community banks can reduce their vulnerability to a cyber attack and ensure their customers are protected. As more banks seek partnerships with fintechs to achieve their digital transformation goals, it is more important than ever for all parties to collaborate and strengthen security controls. After all, no organization wants to fall victim to a cyber attack.

About the Author Michael Carroll is Chief Technology Officer of digital banking provider, Bankjoy. As CTO, Carroll oversees the development of the company’s modern banking technology and drives Bankjoy’s strategic vision of helping financial institutions accelerate their journey to true digital transformation.

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Tim Shangle Appointed Vice Chair of ABA Emerging Leaders Council SPARTA, Mich., — ChoiceOne Bank executive Tim Shangle has accepted the position of Vice Chair during the 2022– 2023 term and Chair during the 20232024 term of the American Bankers Association (ABA) Emerging Leaders Council. The leadership positions for the Council were announced at the

ABA Annual Convention held October 2-4, at the JW Marriott Austin in Austin, Texas. “We are pleased to announce Tim’s appointment to the ABA Emerging Leaders Council,” said ChoiceOne Bank CEO Kelly Potes. “ChoiceOne

Bank has a special culture, one that is driven by innovation, yet with a mission to provide superior service, quality advice and show our utmost respect to everyone we meet. Tim embodies our culture with his unique skillset and perspective when it comes to service and technology and how it can change the way we and our customers do business. He has a degree in both computer science and theology, making his leadership skills distinctive, which the leaders of the Council also recognized working with Tim.”

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Shangle is Assistant Vice President of Innovation & Data Analytics, Head of the Innovation Department. He joined ChoiceOne Bank in 2013 in the Customer Service Center. Shangle was promoted to Assistant Vice President of Innovation & Data Analytics in 2020 and Head of the Innovation Department in February. As part of this role, Shangle leads the Bank’s development of digital channel products. Before joining ChoiceOne, Shangle was the IT Director for the Theological Book Network in Grand Rapids. Prior to this, he was Web Architect, Interactive Media Developer for Asbury Theological Seminary in Wilmore, Kentucky. Cont’d on Page 14

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Great Lakes Banker • October 2022

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“I gladly accept the chance to serve alongside so many gifted leaders,” said Shangle. “The Emerging Leaders Council has continuously helped to form and shape not only my leadership skills but also broaden my point of view. Because of the diverse and talented group that represent all corners of our country, I’ve had the chance to listen and converse with individuals I would have never known. I look forward to

leading and helping to foster the same growth I experienced in fellow Council members.” Shangle has a Master of Arts, Specialization in Theological Studies from the Asbury Theologiczal Seminary in Wilmore, Kentucky, and a Bachelor of Science in Computer Information Systems from Aquinas College in Grand Rapids. He is also a graduate and class president of the Michigan Bankers Association Perry School of Banking.

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ICBA, State Associations Urge FHFA to Align Capital Rules with Banking Agencies Policy on Federal Home Loan Bank access penalizes banks for pandemic-era response WASHINGTON, The ICBA and its affiliated state associations along with other banking organizations have called on the Federal Housing Finance Agency to align its capital rules with those of the federal banking agencies to avoid penalizing community banks for supporting local communities during the COVID-19 pandemic.

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In a joint letter, ICBA, the American Bankers Association, and their respective affiliated state banking associations said the FHFA’s capital restrictions on accessing Federal Home Loan Bank advances threatens to transform the shortterm market decline in bond prices into a longer-term problem for the banking system if the agency doesn’t update its standard to match banking regulators’ accounting requirements. “Failure to fix this inconsistency in the regulations may exacerbate a stress as banks continue to navigate rising rates and the ongoing macroeconomic volatility,” the groups said in the joint letter. “This in turn may impair banks’ ability to provide credit to U.S. businesses and households, especially the more vulnerable sections of our economy. We encourage the FHFA to work Great Lakes Banker • October 2022

closely with the bank regulators to better align their regulations.” To ensure the FHFA is using the most up-to-date capital definition, ICBA and the other groups have called on the agency to issue an interim final rule aligning its regulations on tangible capital with relevant Federal Deposit Insurance Corp. regulations regarding Tier 1 capital. The change will ensure FHFA rules are in line with federal banking agency changes enacted a decade ago, avoiding unintended consequences for banks and the financial markets. The groups are requesting the change given the impact of sudden changes to bond market values. Due to artificially suppressed interest rates and emergency stimulus payments to Americans during the COVID-19 pandemic, many banks conservatively invested excess liquidity in low-risk U.S. Treasuries, agency mortgage-backed securities, and municipal securities. The Fed’s rapid rate hikes are now shrinking bond prices, causing “paper” losses for some bank balance sheets. This would have minimal impact if not for the FHFA’s unique capital rules that limit access to FHLB advances for banks under certain capital levels unless their primary federal regulator requests an exception in writing, needlessly restricting access to an important liquidity tool and necessitating the regulatory update.

ICBA Cites Biden WASHINGTON, — ICBA President and CEO Rebeca Romero Rainey issued this statement following the release of overdraft protection guidance from the Consumer Financial Protection Bureau (CFPB), along with related remarks from President Joe Biden.

issued guidance around overdraft protection services that banks offer their customers. The remarks are harmful and misleading and are a mis-characterization of the services that community banks offer their customers. In his remarks he said that disclosed fees for certain bank services are ‘illegal.’ Such language demonstrates the administration’s lack of understanding for the many ways in which community banks

serve their customers and Main Street America. “Community banks provide a wide range of products and services that customers may select to address situations in which they’ve overdrawn their account because they lost track of their account balances, forgot about latepresented checks and automatic payments, or forgot about pending Cont’d on Page 16

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“President Biden made remarks in support of the CFPB’s newly Great Lakes Banker • October 2022

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transactions. These services include overdraft programs, free ad hoc solutions, alerts about their account status, account transfers from designated accounts, small-dollar loans, lines of credit, and deposit advances.  “Community banks offer and fully disclose these solutions and

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safeguards as an accommodation based on specific bank factors and knowledge of their individual customers, with many consumers continuing to seek overdraft services as a convenient protection against the domino effect of mounting fees caused by returned items, late bill payments, and merchant fees.”

ICBA Statement on Recent Report on Zelle Fraud WASHINGTON, — ICBA President and CEO Rebeca Romero Rainey issued the following statement on a recent report from Sen. Elizabeth Warren (D-Mass.) on Zelle.

Design • Bid • Build

“ICBA and the nation’s community banks are outraged by increasingly sophisticated fraud perpetrated by criminals against consumers, including those duped into authorizing payments to scammers using Zelle and other peer-to-peer payments services. “With more than 99.9% of Zelle transactions sent without any report of fraud or scams, community banks appreciate the ability to offer the quick and efficient payments services that customers demand while encouraging Zelle and the largest banks to take measures that improve consumer awareness and protections against fraud. “Consumer protection is ingrained in the community bank business model, with community banks:

Where designing and building come together 16

• Following strict federal electronic funds transfer regulations, which require banks to investigate and resolve withdrawals and transfers that customers do not authorize.

• Offering educational resources to help customers understand and avoid potential scams. • Serving as relationship bankers who are there for their customers to discuss potential scams, mitigate any issues, and determine next steps. “Regulatory restrictions are not the answer to P2P fraud because they will never keep up with the pace of evolving fraud and will serve to disrupt banking services, forcing consumers to look to nonbank money transmission services that operate outside of the banking sector. Further, unlimited liability for P2P fraud under Regulation E would have a disproportionate impact on community banks. “Instead, policymakers should focus more on the fraudsters and work with P2P technology vendors to maximize consumer awareness of fraud schemes and implement safeguards, such as multifactor authentication, to reduce consumer approvals of fraudulent transactions without delaying consumer access to their funds.”

Financial Services Trades to Congress: NDAA Shouldn’t Be a Payday for Retailers WASHINGTON,  — Ten leading financial services trade associations sent a letter to U.S. House and Senate leadership and the top members of the Senate and House Armed Services Committees warning them that attaching the so-called Credit Card Credit Card Cont’d on Page 18

Great Lakes Banker • October 2022

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Competition Act of 2022 to the National Defense Authorization Act (NDAA) “will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security.” The American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Defense Credit Union Council, Electronic Payments Coalition, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions, and National Bankers Association issued the following joint release: “Our actions must match our words when we say that we support our military personnel. Slipping the controversial Credit Card Competition Act into the NDAA would compromise our service members’ financial safety and security just to allow big box retailers to further pad their record-breaking profits. “As the leading trade associations representing nearly every credit union or bank, including those primarily

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serving military-affiliated members and customers, we recognize the vital role financial institutions play in providing financial counseling, creating access to credit, and protecting against fraud. “The Credit Card Competition Act of 2022 undercuts the financial services system by placing artificial price caps on the interchange fee that merchants pay to defray costs associated with data breaches. Limiting financial institutions’ collective ability to offer robust fraud protection will undoubtedly hurt consumers, including service members. “The first Durbin amendment capped interchange fees on debit cards, leading many financial service providers to cut back on low-cost banking services and free checking accounts. A study from the Federal Reserve of Richmond also found that retailers largely kept any savings from the cap for themselves. “Congress shouldn’t be in a rush to repeat past mistakes. NDAA should fund our essential military services and continue to protect our nation, not compromise service members’ financial safety.”

Great Lakes Banker • October 2022

ICBA Strongly Opposes FDIC Vote on Assessment Rates WASHINGTON, — ICBA President and CEO Rebeca Romero Rainey issued the following statement on the FDIC board vote approving an ICBA-opposed proposal to dramatically increase deposit insurance assessments. “ICBA and the nation’s community banks strongly oppose the FDIC board’s decision to dramatically and uniformly increase the rates banks pay to fund the nation’s deposit insurance system. This vote penalizes community banks and wrongly shifts the burden to community banks to subsidize the systemic risk posed by the nation’s largest banks. “As ICBA and other groups have stated, the agency’s proposal is based on a faulty assumption that the Deposit Insurance Fund will not meet its minimum level by as late as 2034. In fact, the latest Quarterly Banking Profile suggests the statutory minimum is likely to be satisfied as soon as the first quarter of 2023, obviating the need

Great Lakes Banker • October 2022

to raise assessments by more than 50 percent for many community banks. “This significant rate hike not only disproportionately affects community banks, but it also unnecessarily restricts community bank lending in local communities at a time of economic uncertainty and fails to sufficiently collect enough assessments from the large and complex institutions that pose the greatest risk to the Deposit Insurance Fund. ICBA is profoundly disappointed the FDIC didn’t consider a lower rate hike, the impact on community banks and local communities, or the more than 150 community banker comments submitted opposing the assessment increase. “ICBA will continue working with the FDIC and urging the agency to advance a more common-sense policy on assessment rates.”

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3 Ways to Utilize Automation as a Strategic Tool By: Griffin McGahey

A

ccording to recent research conducted by WorkFusion, over the last 12 months, 87% of financial service organizations have found it more difficult to retain employees. These turnover rates are driving heavier workloads onto already stressed employees. How much time do financial institutions spend on back of office tasks that can be automated? Automation should remain top of mind for bank leaders to increase innovation for their employees and their customers. Utilize Automation to Keep Employees Engaged Often, the tasks that employees are doing that can be automated do not take advantage of the employees’ ideal talents and abilities. These tasks divert employees from areas where they can add true value. This daily mundane work can drive employees to become burnt

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out and unmotivated. According to the same WorkFusion research, 89% of financial institutions are reporting issues in the recruitment process with both entry-level and knowledgeable workers. It is important to keep the skilled employees you have and ensure they are being utilized in the most beneficial way possible. Introducing automation as a strategic tool can help ease workload and allow employees to focus their energy on more high-value assignments. How much time do financial institutions spend on back-of-office tasks that can be automated? Utilize Automation to Fill in the Gaps Issues can arise from not being able to retain or financially support good talent. Automation can fill in those gaps and help alleviate some of the work on the now smaller group of employees that still need to do the same amount of work. According to the research cited above, 33% of FIs experienced a decrease in operational productivity and a

Great Lakes Banker • October 2022

25% increase in customer wait times. The reality is that while employee numbers are dropping, workloads are not. Integrating an automated system to take mundane work off the plates of employees can be a great way to allow employee focus to remain on the customer is key to ensuring customer experience remains a top priority. Utilize Automation to Save Time HC3’s Automated Asset Verification System (AutoAVS) was built in response to customer need-to save time. The entire process takes a couple of minutes and requires no human interaction. The process finishes with an email alerting the financial institution that it’s done. One Financial Institution that uses the AutoAVS program said they were receiving, on average, 900 requests per month. This process can be complicated and very timeconsuming typically taking employees hours to complete, now with the benefit of automation, it takes minutes. Automation shouldn’t scare employees. Rather, it should excite employees to have resources that free up their time for more meaningful tasks. Asset verification and other Great Lakes Banker • October 2022

automatable tasks are a struggle that all FIs have to deal with. For many of these tasks, there isn’t an option to optout or push it down the line. With technology becoming a more crucial part of the team, automation should be used as a strategic tool to help keep employees engaged at work, help fill in the gaps when teams are limited and save time on unavoidable tasks so that employees can focus their time and energy on high-value assignments to keep them engaged and valued. About the Author Griffin McGahey is the vice president of the print materials and digital communications provider HC3. He shapes the Birmingham-area company’s daily operations and strategic vision in areas that include human resources, sales, marketing, and production. Since May of 2017, Griffin McGahey has concurrently served as chief executive officer of the claims payment management technology firm pay.claims. From its Birmingham headquarters, pay.claims helps insurers digitize claims payments.

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Middlefield Banc Corp. Receives Regulatory Approvals and Favorable Recommendation from ISS MIDDLEFIELD, Ohio, — Middlefield Banc Corp., the bank holding company for The Middlefield Banking Company, has received the necessary regulatory approvals to complete the proposed merger of Liberty Bancshares, Inc. Institutional Shareholder Services, Inc. (“ISS”) recommends that Middlefield shareholders vote in favor of the proposed merger transaction. ISS is widely recognized as a leading independent voting and corporate governance advisory firm. ISS analyses and recommendations are relied on by many major institutional investment firms, mutual funds and fiduciaries throughout North America. On Friday, October 21, 2022, Middlefield received confirmation from the Federal Reserve Bank of Cleveland of a waiver of the obligation to file a bank holding company act application for approval of the acquisition of Liberty. The Ohio Division of Financial Institutions has issued approval for the merger of Liberty National Bank into The Middlefield Banking Company. All regulatory approvals required for completion of the merger have been received.

Upon completion of the Merger, the combined company will have approximately $8.5 billion in total assets, $5.7 billion in total loans and $7.1 billion in total deposits with 150 locations in  Ohio,  West Virginia, Kentucky, Maryland, Virginia and Washington, D.C.  Limestone, through its community bank subsidiary and 226 associates, operates 20 branches in 14 counties in Kentucky.  As of September 30, 2022, Limestone had, on a consolidated basis, $1.5 billion in total assets, which included $1.1 billion in total net loans, and $1.2 billion in total deposits. “We are excited about our partnership with Limestone and our entrance into strategically important markets in Kentucky.   We view Limestone’s corporate culture and philosophy as very similar to our own and have been impressed with what John Taylor and his team have been able to accomplish,” said Chuck Sulerzyski, President and Chief Executive Officer of Peoples.  “Over the years we have expanded our presence in Kentucky to 25 branches, with Limestone adding an additional 20 branches to our Kentucky footprint.  We look forward to welcoming Limestone shareholders, employees and customers to become part of the Peoples team, and we are ecstatic to offer additional locations to new and existing Peoples Bank clients.” 

Peoples Bancorp and Limestone Bancorp Announce Merger

John Taylor, President and Chief Executive Officer of Limestone commented, “Peoples is an outstanding organization with exceptional leadership.  Our shareholders, customers and employees will benefit from Peoples’ track record of profitable growth and successfully executing acquisitions, and the opportunities this merger of our banks offers.  We are excited about Peoples’ expansive suite of products, which will provide us the ability to deliver new products and services, including insurance and investment products, to our valued customers in the communities we serve.  Peoples’ community banking model, culture and commitment to high-quality customer service makes Peoples an excellent partner for Limestone.”     

MARIETTA, Ohio, and  LOUISVILLE, Ky.,  — Peoples Bancorp Inc. and Limestone Bancorp, Inc. have jointly announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire, in an all-stock merger, Limestone, a bank holding company headquartered in Louisville, Kentucky, and the parent company of Limestone Bank, Inc.  Under the terms of the Merger Agreement, Limestone will merge with and into Peoples, and Limestone Bank will subsequently merge with and into Peoples’ wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $208.2 million.

According to the terms of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, shareholders of Limestone will receive 0.90 shares of Peoples common stock for each share of Limestone common stock, and the Merger is expected to qualify as a tax-free reorganization for Limestone shareholders.  Based on Peoples’ closing price of $30.28 per share as of October 21, 2022, the aggregate deal value is approximately $208.2 million, or $27.25 per share.  The transaction is expected to be immediately accretive to Peoples’ estimated earnings

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Great Lakes Banker • October 2022

before one-time costs, with a tangible book value earn back of approximately 2.8 years (inclusive of interest rate marks), and an internal rate of return in excess of 20%.   The acquisition is expected to close during the second quarter of 2023, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of Peoples and Limestone. 

County, the bank’s deposit growth was approximately 8.2% or 3.4 times the market’s growth rate. The bank’s total deposits were $886.5 million as of its fiscal year end on June 30, 2022. “The bank’s strategic plan and business development efforts resulted in faster growth than that experienced in each of the counties in which we operate. Our growth and

increased market share are a result of our success in building new retail and commercial relationships and of each community’s acceptance of the community bank business model and message. More individuals and businesses understand the impact community banks can have on the local economy,” commented Ralph J. Lober II, President and CEO of Consumers National Bank.

Consumers National Bank Grows Deposit Share MINERVA, Ohio — According to the Federal Deposit Insurance Corporation’s (FDIC) annual deposit survey, Consumers National Bank experienced substantial deposit growth during the twelve-month period ended June 30, 2022. Within the bank’s five county market area of Carroll, Columbiana, Jefferson, Stark, and Summit counties, Consumers deposit market share increased 0.47% to 2.93%, moving the bank from eight to seventh position among 31 financial institutions. In each of the five counties, the bank’s deposit balances grew at a faster rate than the market. Total deposits in the five-county region increased to $30.2 billion, a 2.4% increase over the 2021 report. Consumers National Bank’s total deposits increased 21.9% over the same period. Excluding deposits acquired in the purchase of two branches in Columbiana

Great Lakes Banker • October 2022

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PSB Holdings Completes Private Placement Offerings WAUSAU, Wis., — PSB Holdings, Inc., the holding company for Peoples State Bank, announced the completion of the sale of $7.2 million in preferred stock and $4.8 million in subordinated debt securities to local community members. The capital raise will further enhance the Bank’s already strong capital position as it addresses perceived opportunities in its primary markets and provides funding for increased stock repurchases on the open market.

issuer option to redeem in whole or in part beginning November 1, 2027.

The Company also refinanced $2.5 million in existing 4.50% Senior Notes maturing February 2023 as part of the new subordinated debt offering totaling $4.8 million that will pay quarterly interest at an annual rate of 4.75% for the first 5 years and then floating at 90day SOFR plus 2.00% thereafter. The subordinated debt will pay interest-only for the first 5 years and have an

Cattanach continued, “PSB has a successful history of profitability, including managing through the financial crisis over a decade ago while posting positive net income every quarter. Additionally, our success has enabled us to increase our dividend to common shareholders for the past 29 consecutive years. We’re confident about the prospects for our Bank and what our board believes are positive future opportunities for growth.”

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“We are excited about our results and continued growth prospects in our markets,” said Scott Cattanach, President and CEO of PSB. “Our local decision making, relationship-based approach has resonated with our clients. These offerings provide an opportunity for community members to participate in our success.”

Great Lakes Banker • October 2022

Civista Bancshares Announces Q3 Results

Consumers Bancorp Posts Q1 2023 Earnings

SANDUSKY, Ohio,  — Civista Bancshares, Inc. has reported net income of $11.1 million, or $0.72 per diluted share, for the third quarter of 2022, compared to $9.6 million, or $0.64 per diluted share, for the third quarter of 2021, and net income of $27.3 million, or $1.82 per diluted share, compared to $29.6 million, or $1.90 per diluted share, for the nine months ended September 30, 2022 and 2021, respectively.

MINERVA, Ohio — Consumers Bancorp, Inc. has reported net income of $2.5 million for the first quarter of fiscal year 2023, a decrease of $130 thousand, or 4.9%, from the same period last year. Earnings per share for the first quarter of fiscal year 2023 were $0.83 compared to $0.88 for the same period last year.

QCR Holdings Announces Q3 2022 Results MOLINE, Ill., — QCR Holdings, Inc. has announced net income of $29.3 million and diluted earnings per share of $1.71 for the third quarter of 2022, compared to net income of $15.2 million and diluted EPS of $0.87 for the second quarter of 2022.

Richmond Mutual Bancorporation Posts Q3 Results RICHMOND, Ind., — Richmond Mutual Bancorporation, Inc., parent company of First Bank Richmond, has announced net income of $3.2 million, or $0.29 diluted earnings per share, for the third quarter of 2022, compared to net income of  $3.5 million, or  $0.31  diluted earnings per share, for the second quarter of 2022, and net income of $3.1 million, or $0.27 diluted earnings per share, for the third quarter of 2021. Garry Kleer, Chairman, President and Chief Executive Officer, commented, “In the third quarter of 2022, despite unprecedented increases in short-term interest rates by the Federal Reserve, we continued to grow our loan and lease portfolios.”

First Busey Announces Q3 Earnings CHAMPAIGN, Ill., — First Busey Corporation has reported adjusted quarterly net income of $36.4 million and adjusted diluted earnings per share of $0.65. 26

Net income for the three months ended September 30, 2022 was positively impacted by a $423 thousand, or 5.3%, increase in net interest income from the same prior year period, which was offset by a $220 thousand increase in loan loss provision expense because of the organic loan growth during the first quarter of fiscal year 2023 and a $246 thousand increase in other expenses from the same prior year period.

Pathfinder Bancorp Announces Q3 Income OSWEGO, N.Y., — Pathfinder Bancorp, Inc., the holding company for Pathfinder Bank, has announced net income for the quarter ended September 30, 2022 of $3.2 million, or $0.52 per basic and diluted common share, compared to $3.4 million, or $0.56 per basic and diluted common share, for the third quarter of 2021. Third quarter 2022 total revenue (net interest income and total noninterest income) of $11.9 million increased $604,000, or 5.3%, compared to the third quarter of 2021.

HBT Financial Announces Q3 Results BLOOMINGTON, Ill., — HBT Financial, Inc., the holding company for Heartland Bank and Trust Company, has reported net income of $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022. This compares to net income of $14.1  million, or $0.49  diluted earnings per share, for the second quarter of 2022, and net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021. Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “While continuing to generate strong financial results, we signed a merger agreement with Town and Country Financial Corporation which remains on track to close during the first quarter of 2023.” Great Lakes Banker • October 2022

Wayne Savings Bancshares First Commonwealth Reports Q3 Earnings Announces Q3 Earnings, WOOSTER, Ohio, — Wayne Savings Bancshares, the Dividend holding company of Wayne Savings Community Bank, reported record net income of $6.6 million, or $2.89 per common share, for the year-to-date period ended September 30, 2022, an increase of $954,000, or 16.9%, compared to $5.6 million, or $2.30 per common share, for the same period ended September 30, 2021. The Company reported net income (unaudited) of $2.5 million, or $1.14 per common share, for the quarter ended September 30, 2022, an increase of $557,000, or 28.5%, compared to $2.0 million, or $0.81 per common share, for the quarter ended September 30, 2021. President and CEO James R. VanSickle commented, “Wayne Savings will open two new locations during the fourth quarter of 2022, a loan production office in Mahoning County and our thirteenth full service branch in Dalton, Ohio.”

Great Lakes Banker • October 2022

INDIANA, Pa., — First Commonwealth Financial Corporation has announced financial results for the third quarter of 2022 including net income of $34.0 million and diluted earnings per share totaled $0.36, an increase of $3.2 million, or $0.03 per share from the previous quarter and unchanged from the third quarter of 2021. On August 30, 2022, the Company announced the signing of a definitive agreement to acquire Harrisburg, PA based Centric Financial Corporation. The board of directors has declared a common stock quarterly dividend of $0.12 per share, payable on November 18, 2022 to shareholders of record as of November 4, 2022.

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Nicolet Bankshares Posts Q3 Results

Quaint Oak Bancorp Announces Q3 Earnings

GREEN BAY, Wis., — Nicolet Bankshares, Inc. announced third quarter 2022 net income of $19 million and earnings per diluted common share of $1.29, compared to $24 million and $1.73 for second quarter 2022, and $8 million and $0.73 for third quarter 2021, respectively. 

SOUTHAMPTON, Pa., — Quaint Oak Bancorp, Inc., the holding company for Quaint Oak Bank, has announced net income for the quarter ended September 30, 2022 was $2.6 million, or $1.22 per diluted share, compared to $1.8 million, or $0.85 per diluted share for the same period in 2021. Net income for the nine months ended September 30, 2022 was $6.7 million, and $3.09 per diluted share, compared to $4.3 million, or $2.17 per basic and $2.07 per diluted share for the same period in 2021.

Net income for the nine months ended September 30, 2022 was $67 million and earnings per diluted common share was $4.72, compared to net income of $44 million and earnings per diluted common share of $4.22 for the first nine months of 2021.  On August 26, 2022, Nicolet completed its acquisition of Charter Bankshares, Inc. (“Charter”).  In the merger, Charter shareholders received approximately 1.26 million shares of Nicolet common stock (valued at $98 million) and cash consideration of $39 million, for a total purchase price of $137 million.  Upon consummation, Charter added total assets of $1.1 billion, loans of $827 million, deposits of  $869 million, and preliminary goodwill of $53 million. 

First Merchants Announces Q3 Earnings MUNCIE, Ind., — First Merchants Corporation has reported third quarter 2022 net income of $63.3 million compared to $52.8 million during the same period in 2021. Diluted earnings per common share for the period totaled $1.08 per share compared to the third quarter of 2021 result of $.98 per share. Current quarter results included integration costs from the acquisition of Level One and severance expense totaling $4.0 million. Mark Hardwick, Chief Executive Officer, stated, “Despite high inflation and volatility in both the bond and stock markets, our performance continues to be steady and strong. Margins are expanding, loan growth continues, and asset quality metrics remain at historical lows. We believe our balance sheet mix, allowance coverage and capital levels are well positioned for an uncertain economic environment.” The board of directors has declared a cash dividend of $0.4688 per depositary share. The dividend will be payable on November 15, 2022, to stockholders of record on October 31, 2022. 28

Robert T. Strong, President and Chief Executive Officer stated, “It is my pleasure to announce this result has established a new benchmark as the highest earning quarter in the Company’s history.” The Board of Directors has declared a quarterly cash dividend of $0.13 per share on the common stock of the Company payable on November 7, 2022, to the shareholders of record at the close of business on October 24, 2022.

Isabella Bank Reports Q3 Results MT. PLEASANT, Mich., — Isabella Bank Corporation has reported record net income of $5.9 million for the third quarter of 2022 and $15.9 million for the ninemonth period ended September 30, 2022. Earnings per common share were $0.78 in the third quarter and $2.11 for the first nine months of 2022.

Logansport Financial Reports Q3 Earnings LOGANSPORT, Ind., — Logansport Financial Corp., parent company of Logansport Savings Bank, has reported net earnings for the quarter ended September 30, 2022 of $820,000 or $1.34 per diluted share, compared to earnings in 2021 of $766,000 or $1.26 per diluted share. Year to date the company reported net earnings of $2,428,000 for 2022 compared to $2,364,000 for 2021. Diluted earnings per share for the nine months ended September 30, 2022 were $3.98 compared to $3.89 for the nine months ended September 30, 2021. The company paid a total of $1.20 per share in dividends in the first half of 2022 compared to $3.20 in 2021. This included a special dividend of $2.00 per share in 2021. Great Lakes Banker • October 2022

Mid Penn Bancorp Reports Q3 Earnings, Dividend

CNB Community Bancorp Reports Q3 Earnings

HARRISBURG, Pa., — Mid Penn Bancorp, Inc., the parent company of Mid Penn Bank, has reported net income for the quarter ended September 30, 2022 of $15.5 million, or $0.97 per common share basic and diluted.

HILLSDALE, Mich., — CNB Community Bancorp, Inc., the parent company of County National Bank, has announced earnings during the third quarter of 2022 totaled $3.9 million, an increase of $1.0 million or 35.8% compared to the $2.9 million earned during the three months ended September 30, 2021. Basic earnings per share increased to $1.84 during the three months ended September 30, 2022, up $0.48 from $1.36 during the third quarter of 2021. For the nine months ended September 30, 2022, the company reported net income of $9.1 million, a decrease of $132,000, or 1.4%, from the $9.2 million earned during the nine months ended September 30, 2021. Basic earnings per share decreased to $4.23 during the nine months ended September 30, 2022, down $0.09 from $4.32 during the first nine months of 2021.

“We are proud to deliver these third quarter and year-todate financial results to our shareholders,” said Rory G. Ritrievi, President and CEO stated “I am very encouraged by that performance particularly considering the headwinds we are all facing right now economically and geopolitically both home and abroad.” The board of directors has declared cash dividend of $0.20 per share of common stock, payable on November 28, 2022 to shareholders of record as of November 10, 2022.

Oxford Bank Reports Q3 Income   OXFORD, Mich., — Oxford Bank Corporation, the holding company for Oxford Bank, has announced operating results for the third quarter ended September 30, 2022.

Joseph R. Williams, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, remarked, “We generated record earnings amid robust loan production during the third quarter, building further momentum with our business development efforts across all of our markets.”

The Company’s quarterly consolidated earnings for the three months ended September 30, 2022, were $2.632 million, or $1.09 per weighted average share, compared to $2.496 million, or $1.10 per weighted average share for the same period one year ago.  Third quarter 2022 earnings also increased, as expected, compared to second quarter net income of $1.787 million, or $.74 per weighted average share.  Earnings for the first three quarters of 2022 were $5.478 million, or $2.30 per share, compared to $8.852 million, or $3.87 per share for the same period of 2021. 

Northeast Indiana Bancorp Posts Q3 Earnings    HUNTINGTON, Ind., — Northeast Indiana Bancorp, Inc., the parent company of First Federal Savings Bank, has announced net income for the nine months ended September 30, 2022 was $5.0 million, or $4.17 per diluted common share, compared to net income of $5.8 million, or $4.80 per diluted common share for the nine months ended September 30, 2021.   The board of directors has declared a cash dividend of $0.32 per common share. Great Lakes Banker • October 2022

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Waterstone Financial Announces Results

common share for the third quarter of 2022. This compared to $504 million, or $.54 per diluted common share, for the second quarter of 2022 and $616 million, or $.65 per diluted common share, for the third quarter of 2021.

WAUWATOSA, Wis., — Waterstone Financial, Inc., holding company for WaterStone Bank, reported net income of $5.3  million, or $0.25  per diluted share for the quarter ended  September 30, 2022 compared to $19.0 million, or $0.79 per diluted share for the quarter ended September 30, 2021. Net income per diluted share was $0.83 for the nine months ended September 30, 2022  compared to net income per diluted share of $2.43 for the nine months ended September 30, 2021.

Peoples Bancorp Announces Q3 Earnings, Dividend     

“We were pleased with the execution  of the community banking segment as loan growth remained strong through the quarter,” said Douglas Gordon, Chief Executive Officer of Waterstone Financial, Inc. “We were able to grow our net interest income and expand margin at the community banking segment as we deployed our cash to fund loans. The results of the mortgage banking segment were disappointing and reflect the significant headwinds that the industry continues to face due to an increase in rates and resulting decline in demand. We continue to execute on cost containment measures, while we also seek opportunities to add production talent.”

MARIETTA, Ohio,  — Peoples Bancorp Inc. reported net income of $26.0 million for the third quarter of 2022, representing earnings per diluted common share of $0.92.  In comparison, Peoples recognized earnings per diluted common share of  $0.88  for the second quarter of 2022, and a loss per diluted common share of  $0.28  for the third quarter of 2021.  For the nine months ended September 30, 2022, Peoples recorded net income of $74.4 million, or $2.65 per diluted common share, compared to $19.8 million, or $0.99 per

diluted common share, for the nine months ended September 30, 2021. The Board of Directors declared a quarterly cash dividend of $0.38 per share on  October 24, 2022, payable on November 21, 2022, to shareholders of record on November 7, 2022.

Flagstar Bancorp Reports Q3 Results, Dividend TROY, Mich., — Flagstar Bancorp, Inc. has reported third quarter 2022 adjusted net income of $75 million, or $1.41 per diluted share, compared to second quarter 2022 adjusted net income of $63 million, or $1.17 per diluted share. The board of directors has declared a quarterly cash dividend of $0.06 per share on its common stock, as well as a special dividend of $2.50. The dividends are payable  November 17, 2022, to shareholders of record at the close of business November 7, 2022.

Keycorp Reports Q3 Income CLEVELAND,  — KeyCorp has announced net income from continuing operations attributable to Key common shareholders of $513 million, or $.55 per diluted 30

Great Lakes Banker • October 2022

Fentura Financial, Inc. Announces Q3 Earnings, Dividend FENTON, Mich., — Fentura Financial, Inc. has announced net income of $4,009 and $10,569 for the three and nine months ended September 30, 2022. The board of directors has declared a regular dividend of $0.09 per share for shareholders of record as of November 7, 2022, and payable November 14, 2022.

Fidelity D & D Bancorp Reports Q3, YTD Results DUNMORE, Pa., — Fidelity D & D Bancorp, Inc. and its banking subsidiary,  The Fidelity Deposit and Discount Bank, have announced net income of $7.7  million for the quarter ended September  30, 2022 , or $1.36 diluted earnings per share, compared to $4.9 million, or $0.85 diluted earnings per share, for the quarter ended September 30, 2021. 

The acquisition of Landmark Bancorp, Inc. during the third quarter of 2021 resulted in growth in the Company’s earning assets which contributed to net interest income growth.  The Company continued to operate four community banking offices acquired from Landmark which contributed to the increased operating expenses. The Board of Directors has declared a fourth quarter dividend of $0.36 per share, payable December 9, 2022 to shareholders of record at the close of business on November 18, 2022.

Meridian Reports Q3 Results MALVERN, Pa., — Meridian Corporation has reported net income of $5.8 million and diluted earnings per share of $0.96 for the third quarter ended September 30, 2022 compared to net income of $5.9 million and diluted earnings per share of $0.96 for the second quarter ended June 30, 2022.

First Capital Reports Q3 Earnings CORYDON, Ind., — First Capital, Inc., the holding company for First Harrison Bank, has reported net income of $3.1 million or $0.93 per diluted share for the quarter ended September 30, 2022, compared to $2.9 million or $0.88 per diluted share for the quarter ended September 30, 2021. The increase was primarily due to an increase in net interest income after provision for loan losses partially offset by an increase in noninterest expense and a decrease in noninterest income.

Old National Bancorp Reports Q3 Income EVANSVILLE, Ind., — Old National Bancorp reported third quarter 2022 net income applicable to common shares of $136.1 million, or $0.47 per diluted common share.

“Fidelity’s third quarter and 2022 year-to-date results reflect continued momentum from organic growth and its expanded marketplace,” stated Daniel J. Santaniello, President and Chief Executive Officer. “ For the nine months ended September  30, 2022, net income was $22.9 million, or $4.03 diluted earnings per share, compared to $16.2 million, or $3.09 diluted earnings per share, for the nine  months ended September 30, 2021. 

Great Lakes Banker • October 2022

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CF Bankshares Declares Dividend COLUMBUS, Ohio, — The Board of Directors of CF Bankshares Inc., the parent of CFBank, NA, has declared a quarterly cash dividend on its common stock of $0.05 per share. The dividend is payable on October 25, 2022 to shareholders of record as of the close of business on October 14, 2022.

Merchants Bancorp Posts Q3 Income CARMEL, Ind., — Merchants Bancorp, parent company of Merchants Bank of  Indiana, has reported third quarter 2022 net income of $58.5 million, or diluted earnings per common share of $1.22. This compared to $58.5 million, or diluted earnings per common share of $1.22 in the third quarter of 2021, and compared to $53.9 million, or diluted earnings per common share of $1.11 in the second quarter of 2022.

Norwood Financial Reports Q3 Earnings HONESDALE, Pa., — Norwood Financial Corp. and its subsidiary, Wayne Bank, announced earnings for the three months ended September 30, 2022 of $8,109,000, compared to $6,981,000 earned in the same threemonth period of 2021.  Fully diluted earnings per share were $1.00 in the three-months ended September 30, 2022, compared to $0.85 earned in the same period of 2021.

Northwest Bancshares Announces Q3 Earnings, Dividend       COLUMBUS, Ohio, — Northwest Bancshares, Inc. has announced net income for the quarter ended September 30, 2022 of $37.3 million, or $0.29 per diluted share.  This represents an increase of $2.2 million, or 6.4%, compared to the same quarter last year, when net income was $35.1 million, or $0.27 per diluted share. The Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 14, 2022 to shareholders of record as of November 3, 2022. 32

Southern Michigan Bancorp Reports Q3 Earnings COLDWATER, Mich., — Southern Michigan Bancorp, Inc. has announced third quarter 2022 net income of $3,613,000, or $0.79 per share, compared to net income of $3,138,000, or $0.69 per share, for the third quarter of 2021. Southern earned $9,907,000, or $2.18 per share, for the nine-month period ending September 30, 2022 compared to $9,235,000, or $2.02 per share, for the same nine-month period a year ago.    John H. Castle, Chairman and Chief Executive Officer of Southern Michigan Bancorp, Inc. stated, “Additional loan growth is expected during the fourth quarter of 2022 as we continue to expand in the Jackson market and approved loans in the commercial pipeline fund.”   

PSB Holdings Reports Q3 2022 Earnings WAUSAU, Wis., Oct. 24, 2022 (GLOBE NEWSWIRE) -PSB Holdings, Inc., the holding company for Peoples State Bank reported third quarter earnings ending September 30, 2022 of $0.80 per share on net income of $3.5 million, compared to earnings of $0.72 per share on net income of $3.2 million during the second quarter ending June 30, 2022, and $0.82 per share on net income of $3.6 million during the third quarter ending September 30, 2021. “Net income increased despite continued declines in mortgage banking fee income while our net interest margin remained near the previous quarter. We undertook initiatives in the third quarter on deposit pricing that we believe will contribute to a stronger net interest margin in coming quarters. As we look forward to the fourth quarter and 2023, we anticipate loan growth will be challenging due to national economic policies.” stated Scott Cattanach, President and CEO.

Marquette National Declares Dividend CHICAGO, — The Board National Corporation has of  $0.28  per share. The on  January 3, 2023  to on December 16, 2022.

of Directors of Marquette declared a cash dividend dividend will be payable shareholders of record

Great Lakes Banker • October 2022

Sturgis Bancorp Reports Q3 Earnings

Codorus Valley Bancorp Posts Q3 Earnings

STURGIS, Mich., — Sturgis Bancorp, Inc. has announced net income of $2.1 million for the third quarter of 2022 and $4.8 million for the first nine months of 2022.

YORK, Pa., — Codorus Valley Bancorp, Inc., parent company of PeoplesBank, has reported net income of $7.2 million or $0.75 per diluted common share, for the third quarter of 2022. This compares to net income of $2.0 million or $0.20 per diluted common share for the second quarter of 2022, representing an increase of $5.2 million or 266.3 percent and net income of $4.8 million or $0.49 per diluted common share, for the third quarter of 2021. For the nine months ended September 30, 2022, net income was $12.2 million or $1.27 per diluted common share, compared to $12.0 million or $1.22 per diluted common share, for the nine months ended September 30, 2021.

Eric L. Eishen, President and CEO, stated, “Core business for the Bank has expanded significantly in the first nine months of this year. This is primarily the result of our expansion into the Berrien County area and the success of our Western Market team.“ The Board of Directors has declared a cash dividend of $0.17 per common share, payable December 15, 2022, to stockholders of record November 15, 2022. This declaration continues the quarterly dividend at the highest level in the Company’s history.

Farmers National Banc Corp. Announces Q3 Results CANFIELD, Ohio, — Farmers National Banc Corp. has announced third quarter net income of $15.4 million for the three months ended September 30, 2022. This compares to $16.0 million for the three months ended September 30, 2021. Diluted earnings per share were $0.46 for the third quarter of 2022 versus $0.56 for the third quarter of 2021.

Prime Rate Now 7.00 Percent GLB NEWSDESK, — The prime lending rate has been raised to 7.00 percent by BMO Harris Bank, M&T Bank, KeyCorp. Huntington Bancshares Incorporated and Associated Banc-Corp. The rates took effect on or about November 3, 2022.

Kevin J. Helmick, President and CEO remarked “Our quarterly earnings were strong, we opened a new lab branch in Canton during the quarter and we look forward to receiving regulatory approval for our acquisition of Emclaire Financial Corp.”

Huntington Bancshares Announces Q3 Earnings COLUMBUS, Ohio,  — Huntington Bancshares Incorporated reported net income for the 2022 third quarter of $594 million, or $0.39 per common share, an increase of $217 million, or $0.17 per common share from the year-ago quarter. The Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.155 per share, unchanged from the prior quarter.  The common stock cash dividend is payable January 3, 2023, to shareholders of record on December 19, 2022. Great Lakes Banker • October 2022

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Associated Banc-Corp Reports Q3 Income

The Board of Directors declared a regular quarterly cash dividend of $0.32 per common share, payable on  December 14, 2022, to holders of record as of December 2, 2022.

GREEN BAY, Wis., — Associated Banc-Corp has reported net earnings of $93 million, or $0.62 per common share, for the quarter ended September 30, 2022. These amounts compare to earnings of $84 million, or $0.56 per common share, for the quarter ended June 30, 2022 and earnings of $85 million, or $0.56 per common share, for the quarter ended September 30, 2021. The Board of Directors has declared a regular quarterly cash dividend of $0.21 per common share, payable on December 15, 2022, to shareholders of record at the close of business on December 1, 2022. This is an increase of $0.01 from the previous quarterly dividend of $0.20 per common share.

Heartland BancCorp Posts Q3 Results, Dividend WHITEHALL, Ohio, — Heartland BancCorp, parent company of Heartland Bank has reported net income of $5.1 million, or $2.50 per diluted share in the third quarter of 2022, compared to $4.8 million, or $2.34 per diluted share in the third quarter of 2021, and $3.9 million, or $1.94 per diluted share, in the preceding quarter. In the first nine months of 2022, net income was $13.0 million, or $6.43 per diluted share, compared to $13.6 million, or $6.69 per diluted share, in the first nine months of 2021.

Juniata Valley Financial Announces Q3 Results MIFFLINTOWN, Pa., — Juniata Valley Financial Corp. has announced net income for the three months ended September 30, 2022 of $2.1 million compared to net income of $1.9 million for the three months ended September 30, 2021. Earnings per share, basic and diluted, was $0.42, for the three months ended September 30, 2022, compared to $0.38 for the three months ended September 30, 2021. Net income for the nine months ended September 30, 2022 was $6.2 million, compared to net income of $5.3 million for the nine months ended September 30, 2021. Earnings per share, basic and diluted, for the nine months ended September 30, 2022, was $1.24, compared to basic and diluted earnings per share of $1.05 for the corresponding 2021 period.

The board of directors declared a quarterly cash dividend of $0.69 per share, payable January 10, 2023, to shareholders of record as of December 25, 2022.

Mercantile Bank Reports Robust Q3 Results GRAND RAPIDS, Mich., — Mercantile Bank Corporation reported net income of $16.0 million, or $1.01 per diluted share, for the third quarter of 2022, compared with net income of $15.1 million, or $0.95 per diluted share, for the respective prior-year period.  Net income during the first nine months of 2022 totaled $39.3 million, or $2.48 per diluted share, compared to $47.4 million, or $2.95 per diluted share, during the first nine months of 2021. 34

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Bank First Announces Q3 Income MANITOWOC, Wis., — Bank First Corporation, the holding company for Bank First, N.A., has reported net income of $10.5 million, or $1.26 per share, for the third quarter of 2022, compared with net income of $11.2 million, or $1.46 per share, for the prior-year third quarter. For the nine months ended September 30, 2022, Bank First earned $32.4 million, or $4.15 per share, compared to $34.3 million, or $4.45 per share for the same period in 2021.

“2022 is shaping up to be a strong year of core earnings and asset growth.” according to James R. Heslop, II, President and Chief Executive Officer. “The merger with Liberty Bancshares, Inc. is on track to close during the 2022 fourth quarter and we expect to benefit with a robust footprint in two of Ohio’s largest and fastestgrowing markets.”

OVBC Reports Q3 Earnings    

Pre-tax expenses related to the Bank’s acquisition of Denmark Bancshares, Inc. and planned acquisition of Hometown Bancorp, Ltd. totaled $4.6 million during the third quarter of 2022, reducing after-tax earnings per share by approximately $0.43. Year-to-date these expenses have reduced after-tax earnings per share by $0.57.

GALLIPOLIS, Ohio, — Ohio Valley Banc Corp. has reported consolidated net income for the quarter ended September 30, 2022, of $3,690,000, an increase of $654,000, or 21.5%, from the same period the prior year. Earnings per share for the third quarter of 2022 were $.77 compared to $.63 for the prior year third quarter. For the nine months ended September 30, 2022, net income totaled $9,814,000, an increase of $386,000, or 4.1%, from the same period the prior year. Earnings per share were $2.06 for the first nine months of 2022 versus $1.97 for the first nine months of 2021.    

JBTC Announces Q3 Earnings

The Board of Directors has declared a cash dividend of $0.21 per common share payable on Nov. 10, 2022, to shareholders of record as of the close of business on Oct. 28, 2022.

JONESTOWN, Pa., — JBT Bancorp, Inc. (JBTC) reported year-to-date earnings of $5,833,000 as of September 30, 2022. This is up 21.02% from $4,820,000 in the prior year.   Earnings per share were $2.40, up 21.21% from $1.98 in 2021. “We have been very pleased with our loan growth this year, particularly as rates have risen. Our earnings have been positively influenced by our strong net interest income performance. We are anticipating further rate increases and given the reduction of liquidity on many bank balance sheets, we expect greater pressure on our margin in the fourth quarter.” said President & CEO, Troy A. Peters.

Middlefield Banc Corp. Reports YTD Results MIDDLEFIELD, Ohio, — Middlefield Banc Corp. has reported financial results for the nine months ended September 30, 2022. The company returned $6.6 million of capital to shareholders through dividends and the repurchase of 141,002 shares at an average price of $25.83 per share. Net income was $12.2 million, or $2.08 per diluted share, compared to $13.8 million, or $2.19 per diluted share Great Lakes Banker • October 2022

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First Financial Bancorp Announces Q3 Results

Mid-Southern Bancorp Posts Q3 Results

CINCINNATI, — First Financial Bancorp has announced financial results for the three and nine months ended September 30, 2022.

SALEM, Ind., — Mid-Southern Bancorp,  Inc., the holding company for Mid-Southern Savings Bank, FSB, has reported net income for the third quarter ended September 30, 2022 of $512,000 or $0.19 per diluted share compared to $456,000 or $0.16 per diluted share for the same period in 2021. For the nine months ended September 30, 2022, the Company reported net income of $1.5 million or $0.55 per diluted share compared to $1.2 million or $0.42 per diluted share for the same period in 2021.

For the three months ended September 30, 2022, the Company reported net income of $55.7 million, or $0.59 per diluted common share.  These results compare to net income of $51.5 million, or $0.55 per diluted common share, for the second quarter of 2022.  For the nine months ended September 30, 2022, The board of directors declared a quarterly cash dividend of $0.23 per common share payable on December 15, 2022 to shareholders of record as of December 1, 2022.

Citizens Community Bancorp Reports Q3 Earnings EAU CLAIRE, Wisc., — Citizens Community Bancorp, Inc., the parent company of Citizens Community Federal N.A., has reported earnings of $4.0 million and earnings per diluted share of $0.38 for the quarter ended September 30, 2022, compared to $4.4 million and $0.41 per diluted share for the quarter ended June 30, 2022, and $5.0 million and $0.47 per diluted share for the quarter ended September 30, 2021, respectively. For the first nine months of 2022, earnings were $13.1 million, or $1.24 per diluted share, compared to earnings of $15.2 million, or $1.41 per diluted share for the first nine months of 2021.

Midland States Bancorp Declares Dividends EFFINGHAM, Ill., — The board of directors of Midland States Bancorp, Inc. has declared a quarterly cash dividend of $0.29 per share of its common stock. The dividend is payable on November 21, 2022 to all shareholders of record as of the close of business on November 14, 2022. The board of directors also declared a cash dividend of $27.56 per share on its 7.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, or $0.689 per depositary share. The dividend will be payable on December 30, 2022 to stockholders of record as of December 15, 2022. 36

The Board of Directors declared a quarterly cash dividend of $0.06 per share on the Company’s outstanding common stock.. The cash dividend will be payable on November 25, 2022 to shareholders of record as of the close of business on November 10, 2022.

ChoiceOne Financial Reports Q3 Results SPARTA, Mich., — ChoiceOne Financial Services, Inc., the parent company for ChoiceOne Bank, reported net income of $5,813,000 and $16,956,000 for the three and nine months ended September 30, 2022, compared to $5,749,000 and $17,029,000 for the same periods in 2021.

Lakeland Financial Reports Q3 Results WARSAW, Ind., — Lakeland Financial Corporation, parent company of Lake City Bank, has reported record third quarter net income of $28.5 million for the three months ended September 30, 2022 versus $24.1 million for the third quarter of 2021. Diluted earnings per share increased to $1.11 for the third quarter of 2022, versus $0.94 for the third quarter of 2021. Both the net income and diluted earnings per share represent the highest quarterly performance in the company’s 150-year history. On a linked quarter basis, net income increased 11%, or $2.9 million, from the second quarter of 2022 in which the company had net income of $25.7 million, or $1.00 diluted earnings per share. Great Lakes Banker • October 2022

One Community Bank Hosts Badger Tailgate OREGON, Wis., — One Community Bank hosted the second annual Badger Tailgate at its Waunakee location on Saturday, September 24. The massively popular event drew 730 attendees cheering on the University of Wisconsin Badgers. The tailgate featured free food for the community from Mulligan’s Bar and Grill, free beverages for the community from Octopi Brewing, kid’s activities, photos with Bucky Badger, and the game was enjoyed on a Jumbotron provided by Bishops Bay. The community donated $618 to the Waunakee Community School District Student Financial Assistance Fund. One Community Bank and Waunakee Remodeling each donated $1,000 as well, for a total donation of $2,618. The Student Financial Assistance Fund ensures that all students and families can participate in their school communities regardless of a family’s financial situation

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and ability to pay. A few of the notable items they were able to fund last school year were food service assistance, band and orchestra costs, and Middle and High School athletics and co-curricular participation costs. “I am thrilled to be a part of this donation to support the Waunakee Community School District Student Financial Assistance Fund. Waunakee Remodeling believes in giving back to the community and we are proud to support our warriors” said Dan McGowan, President and Owner of Waunakee Remodeling. “One Community Bank is very happy to deepen our relationship with the Waunakee Community School District and to contribute to the impact the Student Financial Assistance Fund makes on students’ lives. We believe in investing in our communities and are excited to be a part of this $2,618 donation. This organization is very deserving of this donation” said Chris Zellner, Market President of One Community Bank.

FNCB Bank Donates Two Scoreboards for Lake Lehman School District Athletic Fields DUNMORE, Pa., — FNCB Bank has donated two multisport scoreboards that have been installed at the new Lake Lehman School District athletic fields. “The new athletic fields are a great asset to the Lake Lehman school district and community,” said Jerry Champi, FNCB Bank President and CEO. “The multisport scoreboards will not only benefit the Lake Lehman Great Lakes Banker • October 2022

student athletes but will also help the district attract regional tournaments and tourism dollars to our area.”

where they live and work. Each market partnered with community organizations to cultivate volunteer opportunities to choose from. Additionally, there was a virtual volunteer option for those who could not participate in in-person activities. Locations throughout the bank’s markets partnered with community organizations to serve housing organizations, seniors, students and more. There were virtual volunteer

The scoreboard donations represent part of FNCB’s larger Community Caring initiative. Through outreach programs, donations and an employee volunteer network, FNCB is committed to helping the communities they serve.

Cont’d on Page 40

Old National Celebrates First Better Together Volunteer Event ANN ARBOR, Mich., — Old National Bank celebrated its first Better Together Volunteer Days on September 28th and 29th. The two-day event provided team members across Old National’s seven-state footprint the opportunity to volunteer together in the communities

Great Lakes Banker • October 2022

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opportunities for those who could not participate in person. During these two days, 1,572 Old National team members were able to help 110 organizations, by volunteering 5,311 hours in seven states. “As Old National grows geographically, serving in our communities really keeps us grounded in terms of our mission as a community bank,” said Kathy Schoettlin, Chief Brand & Culture Officer. “We’re excited for this opportunity to help strengthen our communities through volunteerism, and we’re proud of our team members for making service a real part of our company culture.”

“We were delighted to host this team from Old National Bank at our warehouse during their #BetterTogether volunteer day,” said Jen Whaley, Manager of Annual Giving & Grant Development at Food Gatherers! “The group sorted more than 1,000 pounds of produce and packed 43 food boxes! The food will help nourish Washtenaw County residents facing food insecurity. Many of our neighbors are relying more on food pantries and meal programs as the cost of food continues to rise. Thank you, ONB for being a committed partner in the fight against hunger and helping Food Gatherers meet the growing need!”

Independent Bank Awards $10,000 to Local Non-Profits HOLLAND, Mich. — As part of the October 11, 2022 grand opening celebration of the Independent Bank branch in Holland, the bank awarded four local non-profit organizations each with a $2,500 donation. Non-profits were able to nominate themselves on the Bank’s website, and ten finalists were chosen by Independent Bank. From the ten finalists, four winners were selected at random to each receive $2,500 during the grand opening.  

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The four non-profits who received the $2,500 donation from Independent Bank were: Boys & Girls Club of Holland, Benjamin’s Hope, Gateway Mission, and Harvest Stand Ministries. “It was a wonderful experience to give back to local non-profit organizations as part of Independent Bank’s Holland grand opening,” said Kevin O’Keefe, AVP, Bank Manager of Independent Bank’s Holland branch. “What a wonderful way to celebrate the Bank as well as those who are making a positive difference in our communities every day.”

Great Lakes Banker • October 2022

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Foreclosures and Private Selling Officers: A Primer

By Chris Cox

Chris Cox discusses the events that led to the creation of the Private Selling Officer, what was written into law in Ohio, and what you can expect from a Private Selling Officer versus the county sheriff during the foreclosure process. 

Kasich and put into effect September 2016. The Ohio revised code 2329.152 states ”...If the court authorizes a PSO to sell the real estate, the judgment creditor may seek to have the property sold by the PSO authorized by the court…”

D

efault on a mortgage can lead to foreclosure. A real estate foreclosure is the legal process in which a mortgage lender orders a property sold in the attempt to recoup debts owed to them by the borrower.  A Private Selling Officer, also known as a PSO, is an appointed officer of the Ohio court system who is ordered to sell property in foreclosure through a judicial sale in place of the county sheriff.  A PSO is a real estate professional who has both an Ohio real estate license and auctioneers license. When the economy took a turn for the worst in 2008, foreclosures began to ‘pile up’. Local county sheriffs, whose primary job is to protect the peace, were swamped with foreclosure sales, and needed help. That is when Ohio House Bill 390 opened new opportunities for the future of foreclosures. It was signed by Governor

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There was a time in Ohio, when real estate foreclosures took place on the courthouse steps. Buyers from the local area would culminate around a sheriff deputy hoping they would have the winning bid. Those days are now over. As of October of 2022, all sales conducted by the sheriff are now to be done completely online on the local county sheriff website. However, when it comes to foreclosures,the sheriff has limitations. The county sheriff does not have a real estate license so they are unable to list foreclosures on the MLS which reaches an audience both nationwide and globally.  By not having Great Lakes Banker • October 2022

access to the MLS, it is more difficult to gather enough buyers to recoup the debts owed at the time of sale. Also, the sheriff sets the calendar dates for foreclosure auctions to specific days of the month. With no urgency on completion, this can cost the Plaintiff more time and money by having the property sit. For these and other reasons , many creditors now choose to appoint a PSO instead of the Sheriff. Where does it go from there? When a foreclosure case has been opened, the attorneys hired by the Plaintiff file a motion to replace the sheriff with the PSO. The PSO is responsible to process and facilitate the sale of the property in foreclosure. Since a PSO has a real estate license, they are able to post a foreclosure property onto the MLS. This provides the property maximum exposure to interested buyers who scour the internet looking for real estate. The PSO can also take other avenues of marketing the property like posting signs on the property, sending out mailers to generate potential buyers, Social media advertising, and offer showings on vacant properties. With these and other marketing strategies, the PSO is more likely to increase the number of interested buyers, which results in higher bidding, bringing the sale of the subject property at or close to fair market value. The PSO also has direct communication with the attorneys and communication is essential in the smoothness and efficiency of foreclosure sales. Foreclosure Attorneys want the quickest, most proper form of communication in these cases. Simply put, appointing the PSO is in the interest of all parties. Great Lakes Banker • October 2022

In closing, the Private Selling Officer law in Ohio was written to help the creditors recoup the debts owed to them by utilizing a PSO who is a licensed real estate agent and an auctioneer instead of the county sheriff. This, statistically, has increased the ratio of buyers and maximized the sale price of foreclosures through the entire process. The creditor deserves the best performance and the best outcome. Typically, the PSO can deliver it! About the Author Chris Cox is Chief Operating Officer and Client Relations Manager for Ohio Sheriff Sales. Ohio Sheriff Sales is dedicated to performing foreclosure auctions for banks and servicers. To learn more, visit www.OhioSheriffSales. com or contact Chris at [email protected]

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Christine Helmig Named to Meridian Board of Directors MALVERN, Pa., — Christine M. Helmig, CPA, has been appointed to an open position on the Board of Directors of Meridian Corporation and its principal subsidiary, Meridian Bank, effective immediately. “Ms. Helmig is a great addition to our Board of Directors,” said Chris Annas, Chairman. “Chrissy has been a long-standing friend of Meridian. Her experience and dedication along with her alignment to our vision and core values will add considerable value to our board.” Ms. Helmig is the Chief Financial Officer of Hankin Group, a real estate development, construction and property management company. Previously, Ms. Helmig was a partner Christine Helmig in Boylston, Rothman and Helmig, LP, certified public accountants, where she specialized in business and individual taxation, and attest services for small businesses. Ms. Helmig has been recognized for her professional and philanthropic achievements as a Philadelphia Business Journal’s CFO of the Year award recipient. She has served as a member of the Bank’s Advisory Board since January 2022. “I am proud to join Meridian’s Board of Directors,” Ms. Helmig noted. “Meridian is a leading bank in the Delaware Valley and works to build thriving communities, partner with businesses, support charities and make a difference. I’m excited to work with and contribute to the Meridian team.” In addition to her professional responsibilities, Ms. Helmig is active in the community, having served on the advisory boards for the Church Farm School Leadership Council, and Seedcopa, which provides small business loans to Pennsylvania businesses. She has also formerly served as a “Big Sister” for Big Brothers Big Sisters of America and is currently a patient companion for Willow Tree Hospice Care. 44

FNCB Bank Expands Advisory Board DUNMORE, Pa., — FNCB Bancorp, Inc., the parent company of FNCB Bank, has appointed Elizabeth Graham, Raymond Joseph, MD, FASN, and Pat Rogan to the Bank’s advisory board.  Elizabeth “Liz” Graham is Chief Operating Officer and Co-Owner of Riggs Asset Management Company, Inc. and cofounder of Circle 200 a by-invitation-only forum for senior executive women in Northeastern Pennsylvania. She is the immediate past chair of the board of the Greater Wilkes-Barre Chamber of Business and Industry — the first woman to chair that board. She has also Elizabeth Graham served as chair of the boards of the Diamond City Partnership; Circle 200; and the Nuangola Lake Association as well as being a former founding board member and treasurer of Fork Over Love. She is the current chair of the board for CASA of Luzerne County and the Bear Creek Association. She is a past recipient of the Greater Wilkes-Barre Chamber of Commerce ATHENA Award, Northeastern Pennsylvania Business Journal “Top 25 Women in Business” and “Top 20 Executives Under 40” lists.  Dr. Raymond Joseph, MD, FASN is a nephrologist and President of Renal Consultants of Wyoming Valley, the oldest private nephrology practice in Northeastern Pennsylvania. He is a graduate of the University of Pittsburgh School of Medicine with a Doctor of Medicine, completed his residency in internal medicine and Renal Fellowship at the University of Pittsburgh Medical Center. He is Board Certified by Raymond Joseph

Great Lakes Banker • October 2022

American Board of Internal Medicine in Internal Medicine and Nephrology. Pat Rogan is currently involved in numerous businesses in the real estate and employee benefits sectors in our region, including ownership in a start-up real estate brokerage and numerous development projects in Lackawanna County. Mr. Rogan is a past member of Scranton City Council having served from 2009-2020. He is a lifelong resident of Lackawanna County Pat Rogan and currently resides in South Abington Township with his wife Amanda and two children Reagan and Patrick Jr. He is a graduate of West Scranton High School and The University of Scranton.

Marquette Bank Welcomes New Board Member Mary Klingenberger Joins Neighborhood Bank’s Board of Directors ORLAND PARK, Ill., — Marquette Bank has named Mary Klingenberger to the Board of Directors. Klingenberger also currently serves as a Director on the Marquette National Corporation Board of Directors, a position she has held since 2015.

Mary Klingenberger Cont’d on Page 46

Great Lakes Banker • October 2022

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“We’ve been fortunate to benefit from Mary’s community and banking experience over the past seven years,” Paul M. McCarthy, Chairman stated. “We know she will continue to provide her unique perspectives in advising Marquette Bank’s Board, while also adding to the continuity of governance between both the holding company and the bank.”    Klingenberger  recently retired as President of Mother McAuley Liberal

Arts High School where she spent the last decade inspiring young women while leading the all-girls Catholic High School located on the southwest side of Chicago from which she graduated from more than four decades ago. During her career, she has served as Director of Gift Planning at Hinsdale Hospital and spent twenty-eight years in banking with BMO Harris. At BMO Harris, she was Division Head for Commercial Lending in Chicago, Illinois; Regional Concurrence

Officer in the community bank network; and a Regional President in Hinsdale and the surrounding communities. Klingenberger  is a graduate of the Charles H. Kellstadt Graduate School of Business at  DePaul University and of Saint Mary’s College. In the past, she has served on the boards of Adventist Hinsdale Hospital,  Fenwick High School, Wellness House and King-Bruwaert House.

Flagstar Bank Adds ESG & Sustainability Director TROY, Mich.,  — Flagstar Bank has strengthened its commitment to environmental, social and governance initiatives with the addition of Kirby Brendsel as Flagstar’s ESG and Sustainability

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“I have always wanted to make a difference in my work,” Brendsel said. “Working with a like-minded brand like Flagstar that also wants to make a difference in our communities felt like the right next step for me. The bank is highly committed to corporate responsibility, including diversity, equity and inclusion, along with local community-giving through the Flagstar Foundation. They already have a solid foundation in place that I’m excited to build on while working to grow and advance ESG and sustainability.” Brendsel brings nearly two decades of ESG experience, including a background in foundation leadership, sustainability, and Great Lakes Banker • October 2022

diversity, equity and inclusion. Most recently he was with Welltower, Inc., and earlier in his career, with Nuveen and Starwood Hotels and Resorts. He discovered his passion for serving others while on active duty with the U.S. Army and continues that passion today through service on the conservation commission in his hometown of Weston, Connecticut, and prior to that, on the sustainability committee, where he helped bring solar energy and a sustainable CT certification to the community. In the months ahead, Brendsel plans to implement a detailed ESG plan that focuses on all of Flagstar’s stakeholders. This will involve assessing and augmenting current ESG data, establishing integrated ESG goals, identifying and addressing gaps and policy updates, as well as increasing stakeholder engagement and disclosure. “Kirby brings a high level of experience, knowledge and enthusiasm for ESG and sustainability, and he has already added tremendous value and insight to our company,” said Beth Correa, director of Corporate Responsibility for Flagstar. “We’re committed to making a difference through our environmental, social and governance initiatives, and I’m looking forward to Kirby’s leadership in engaging our key stakeholders in strengthening Flagstar’s impact on our people, planet and performance.”

Bill Borchers Receives Distinguished Service Award from WMBA Madison Chapter OREGON, Wis., — Bill Borchers, One Community Bank Vice President Loan Servicing and Construction, has received the singular annual Distinguished Service Award from the Wisconsin Mortgage Bankers Association (WMBA) Madison chapter. “I can’t think of anyone more deserving of this award than Bill. He is always staying up to date on industry trends

Bill Borchers Cont’d on Page 48

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and is a true asset to our team,” said Mark Barberino, Chief Credit Officer. Bill has been involved with the WMBA Madison chapter for 20 years. He was a board member from 2015 – 2017. He also enjoys attending chapter events in his free time. “I am thrilled to be the recipient of this award. I look forward to being involved in WMBA for years to come,” said Bill. As VP of Loan Servicing and Construction, Bill enjoys learning industry trends and making connections in the mortgage industry. He currently oversees the commercial, consumer loan, mortgage loan servicing and construction departments. In his free time, Bill enjoys spending time with his family. He also enjoys golfing and bowling with his friends.

1895 Bancorp Names Eric T. Hurd as SVPChief Lending Officer GREENFIELD, Wis.,  — 1895 Bancorp of  Wisconsin, Inc., the holding company for PyraMax Bank, FSB, has named Eric T. Hurd to the position of Senior Vice President – Chief Lending Officer of the Company and the Bank. Hurd has over 22 years of banking experience, including 12 years with the Bank where he currently serves as Senior Vice President – Commercial Lending Officer. He graduated from the Graduate School of Banking at the University of WisconsinMadison and holds his bachelor’s degree from the  University of Wisconsin – Milwaukee. David R. Ball, President Eric Hurd and Chief Executive Officer, stated “Eric has an in-depth understanding of our commercial banking clients, and will lead the team as we continue to focus on our strategic vision for growth and success of the Bank.” Thomas K. Peterson has announced that in preparation for his retirement, he will transition to Senior Vice 48

President – Commercial Lending Officer for 1895 Bancorp of Wisconsin, Inc. and PyraMax Bank effective November 1, 2022 and will continue to work in a part-time capacity. Peterson has been with the Bank since 2017.

Peoples Promotes Brandon Karaba WAUSAU, Wis., — Peoples State Bank has promoted Brandon Karaba to vice president – regional market sales lead. Karaba will lead the mortgage sales team in Peoples’ northern market, including Rhinelander, Minocqua, and Eagle River. “For 18 years, Brandon has built solid relationships with mortgage customers in Rhinelander and throughout the Northwoods,” said Curtis McElhaney, Peoples State Bank vice president, mortgage. “His dedication exemplifies the Peoples State Bank brand of always seeing the potential with families who are interested in purchasing their dream home.”

Brandon Karaba

Karaba has been a consistent top mortgage lender in Peoples’ northern market. In this new role, he will help develop sales strategies and provide critical insight into the home-buying market in northern Wisconsin. Peoples’ northern market mortgage team includes Tim Sanderson in Minocqua and Tori Dunlap in Eagle River. “Buying a home can be an incredibly stressful time since it is likely the most expensive thing a couple will purchase,” said Karaba. “Taking the stress out of the home-buying experience is critical. Our northern market mortgage lenders are skilled in making it easy for home buyers to thrive during the mortgage loan process.” Karaba—a native of Rhinelander—was a standout for the Hodags basketball team and has served as an assistant varsity coach for several years. He is the president of the Rhinelander Athletic Booster Club, a Kiwanis member, a police and fire commissioner, and has organized an annual alumni basketball tournament for 19 years, renaming it the Russ Johnson Memorial Alumni Basketball Tournament after the passing of Johnson in 2016. Great Lakes Banker • October 2022

Nicolet National Bank Adds Barry Martzahl To Wealth Management Team GREEN BAY, Wis.,  — Nicolet National Bank, the operating entity of bank holding company Nicolet Bankshares, Inc., has named of Barry Martzahl as Managing Director of Nicolet Wealth Management. Martzahl, a 37-year industry veteran, has found success in all aspects of wealth management, including advising individuals and families, corporate retirement plans, and endowments and foundations. Additionally, Martzahl’s son Eric also joined the Nicolet Wealth Management Team. He has eight years of experience and is a Certified Financial Planner. “We are thrilled to have Barry join our Wealth Management team,” said Mike Daniels, President and CEO of Nicolet. “His singular focus on client service has earned him a reputation as a high-class, highly-skilled professional, and his clients love him for it. In addition

to serving clients, he will also have the opportunity to coach our younger professionals on what it takes to be successful in the industry. He is a difference-maker.” “I am excited to join Nicolet and become a part of a growing, successful team,” said Martzahl. “I love the clear community focus of Nicolet and the culture of serving and creating shared success. After talking with Mike and PJ Madson, I knew Nicolet was the place I wanted to be.” Martzahl’s success has garnered accolades from both Forbes and Barrons, being ranked as one of Wisconsin’s top financial advisors. In addition, he and his family are active members of the community, supporting many school activities and local non-profit organizations.

Bankers’ Bank Promotes David Paxton, James Kluck, Adds Brian Mickey MADISON, Wis., — Bankers’ Bank, has named Brian Mickey First Vice President, Risk Management Solutions. Mickey is responsible for managing and developing the bank’s loan review and portfolio analysis services. He has three decades of experience in the banking industry including a primary focus on commercial real estate lending. He holds a Bachelor’s degree in Finance from Loyola University of Chicago.

Brian Mickey

Great Lakes Banker • October 2022

David Paxton

David Paxton has been promoted to Senior Vice President, Risk Management Solutions and is responsible for building and executing strategies to grow the bank’s risk management solutions. He joined Bankers’ Bank in early 2022 as First Vice President, Business Solutions, previously working in community banking for more than 10 years. Paxton holds a Bachelor’s degree in Recreation Management from West Virginia University. James “Jim” Kluck has been promoted to First Vice President, Risk Management Solutions and will manage the bank’s asset liability and enterprise risk management solutions. He has been with Bankers’ Bank for 5 years, most recently as Vice President, Asset Liability Management. In that role, he was responsible for growing the business from five bank customers to over 50 bank customers. Jim is a graduate of Marquette University with a Masters of Business Administration. He is also a Certified Managerial Accountant. Jim Kluck

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Mutual Savings Bank Names Connie Basco Vice President FRANKLIN, Ind., — Connie Basco has joined Mutual Savings Bank in the role of Vice President and Credit Manager and will oversee the credit analyst staff and manage the daily credit administration duties of the bank. With 30 years of banking industry experience, Basco was most recently at Citizens Bank, serving as Assistant Vice President and Senior Credit Analyst. She lives in Greenwood with her husband and family. “We are very pleased to have Connie rejoin our Mutual Savings Bank team. She will work with our talented credit analyst and oversee the daily functions of credit admin. Connie

brings a broad banking background with an expertise in credit analytics. We wish her success as she begins her new responsibilities,” said David A. Coffey, President, and CEO of Mutual Savings Bank.

First Bank Celebrates 135 Years RICHMOND, In., — First Bank Richmond is celebrating 135 years serving the communities in and around Wayne and Shelby counties in Indiana. 

We Understand the Lender’s Need for Equity Loans

OUR EQUITY MASTER LOAN POLICY (EMLP) IS YOUR ANSWER

Our Equity Master Loan Policy (EMLP) is Your Answer

Home equity lending is a competitive business Lenders want to reduce closing cost Lenders want to close equity loans within 24 to 48 hours Lenders want to be assured that they have insurance that will protect their interest

SKY WEAVER Vice President – National Markets Marketing [email protected] 989.387.8869

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Founded in 1887, First Bank Richmond originated as Richmond Loan & Savings Association with one location, four employees and an asset size of $5,050.62. The bank has grown to 13 branches in Indiana and Ohio. The Ohio offices currently operate as Mutual Federal, a division of First Bank Richmond. Garry Kleer, President & CEO stated “We are extremely proud of our rich 135-year history. We would not have achieved this milestone without a group of dedicated employees, loyal customers and communities that help us deliver our mission.“

PNC Bank Expands Partnerup® Career Pathway Initiative PITTSBURGH, — PartnerUp®, a PNC Bank-led initiative aimed at steering high school graduates into well-paying careers in highgrowth industries, is moving into Cleveland and Birmingham, Alabama, after a successful fiveyear run with Pittsburgh area school students and local employers. Also, this week PNC launched a new career development and tuition benefit available to its employees nationwide. Since PartnerUp’s inception in 2018, PNC Bank has partnered with 30 schools and 16 employers to offer more than 6,000 high school students the opportunity to secure a more direct, debt-free route to in-demand careers. PNC’s effort to extend the career development program to more high schoolers comes as employers across the country continue to grapple with worker shortages in the wake of the COVID-19 pandemic. Great Lakes Banker • October 2022

The new benefit gives full-time and part-time employees access to a best-in-class education experience that includes a curated catalog of tuition-covered professional certificates, college prep courses, and associate and bachelor’s degrees to help advance career mobility. Fully funded, partially funded and reimbursement options are available.

71% of Americans Believe Cannabis Legalization Improves the Economy      With cannabis legalization on the ballot in five states, nearly three-quarters of Americans say they would vote in favor of recreational cannabis legalization ST. LOUIS, — As the U.S. battles economic uncertainty and the upcoming midterm elections loom, the majority of Americans (71%) believe that legalizing cannabis improves states’ economies, according to a new report from Real Estate Witch, an online publication that connects readers with expert real estate advice, owned by Clever Real Estate. A survey of 1,000 Americans found that 9 in 10 (91%) support cannabis legalization in some form, including 67% who support full legalization. 70% would vote in favor of recreational cannabis legalization, and even more (84%) would vote in favor of medical cannabis legalization. Great Lakes Banker • October 2022

Of those in states where cannabis is not legal, 35% say legalization would impact their use, including 12% who would start using cannabis and 23% who would use it more often. More than one-quarter (27%) of respondents in states where cannabis is already legal believe legalization helped the economy. Additionally, 60% of Americans think cannabis legalization will impact the real estate market. Of those, 41% believe more people will flock to states where cannabis is legal. More than 1 in 4 (27%) Americans believe that legalization improves home values in a state. Data confirms this – home values actually increased $6,338 more in cities where cannabis was legalized, according to a previous study from Real Estate Witch. In fact, the survey found that most Americans (70%) would pay at market rate or more for a house near a cannabis-related amenity such as a dispensary or weed lounge

—  including 22% who pay above market rate.

would

It follows that Americans are generally unbothered by local cannabis businesses – more than half (52%) say they would even consider buying a home next door  to a recreational cannabis dispensary, and 56% would buy a home next door to a medical cannabis dispensary. Overall, 70% of respondents have used cannabis for recreational purposes at some point in their lives, including 25% who regularly use it. Most Americans think using cannabis recreationally is safer than tobacco (63%), alcohol (65%), prescription painkillers (72%), and other types of drugs (78%). Despite the fact that most Americans are on board with cannabis legalization and believe it would help the struggling economy, only 1 in 12 (8%) consider it the most-pressing social issue in the country – suggesting that cannabis legalization is unlikely to weigh heavily on the minds of voting Americans. financialfurnishings.com 586-725-5737

info@financialfurnishings.com

Boardroom Specialists 51

The Four Pillars of Employee Email Safety

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nformation security is, for good reason, at the forefront of the minds of decision makers in banking. The threat has never been greater, and with an increased threat comes increased risk. The greatest risk to an organization is not the ability of a malicious actor to infiltrate the network or systems by hacking. The greatest risk can be boiled down to one avenue: email.

By Austin Jabs

users should always think before they click on any attachments or links in an email. Is this an email that you were expecting? Is the email address correct? If the sender is a coworker, are they using their company email or could this be an instance of impersonation? Impersonation is a common method to gain access. The email could tell users that they are someone from within the organization and the employee needs to pick up gift cards and send over the codes. The employee believes this line of statements without realizing that the email address being used is not a company email address. These emails are often utilizing a mix of fear (I am high

In 2021, over 90% of cyberattacks could be traced back to email. FBI statistics also point out that there has been a 400% increase in phishing attacks year over year. Phishing attacks can affect people’s decision making differently. The most common methods used to get a user to click on a phishing email are fear, urgency, and brand recognition. These malicious emails can be used for credential theft, fraudulent payments, or installing a virus or ransomware. The question that we have to ask ourselves is what can we do in order to ensure that our systems are safe, the data of our customers is safe, and, by proxy, the reputation of our bank is safe? The answer is simple. We must make a concerted effort to train our employees on email security. The following four steps should be the pillars of your organizations email security training regimen. Make sure users know to ‘Think Before They Click’. Email filters are great, but with the ever-evolving attack vectors that malicious actors utilize, there is no way to ensure that every single phishing email is blocked. Thus, it is important that

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Great Lakes Banker • October 2022

up on the hierarchy or you need to do this or you could get in trouble) and urgency (I need these as soon as possible for a client). While this may sound crazy that an employee could fall for this, I have personally seen this play out this exact way multiple times over my career. Fear and urgency can be a strong motivator that causes employees to act erratic.

event of a prompt on their smart device. If they are not actively logging in to their email and get a notification prompting them to confirm and then swipe to confirm the login, they have defeated the purpose of multifactor authentication. All the security in place will not matter if our employees do not know how to properly utilize said security.

Enable Multi-Factor Authentication. If your organization uses a cloud-based email provider (Office365 or GSuite, for example) enabling multi-factor authentication is a must for these accounts. With these accounts being online and accessible virtually anywhere, multi-factor authentication can help to ensure that user email (and potentially internal data) is not easily accessible.

Begin a Phishing Testing and Remediation Program. We know that users will undoubtedly encounter phishing emails in their day-to-day routines. What should they do in those instances? How should these email be handled? Do employees know what to do if they encounter a phishing email? One of the best things any organization can do in enact bi-weekly or monthly phishing tests. These tests can help employees spot potentially malicious emails, training them on what to do in the event they receive a phishing email. Additionally, this can help spot users that may need a little one on one training if they are consistently failing these tests. There are many companies that offer a platform to do this and most of them have a bevy of tools that you can use for testing, training, and remediation.

Employees that use multi-factor authentication should also understand how it works and what to do in the

Promote an Open and Nurturing Working Environment. One of the biggest misconceptions that employees have is that if they make a mistake they will get in trouble, or worse, get fired. It is the job of management to make sure that people understand that mistakes can happen and that they should not be fearful of reporting potential issues. The biggest driver for this is that if employees fear getting in trouble for a mistake, they are less likely to report it. If a potential issue is not reported, it could have a much larger impact on the bank and the environment. Often times, one minor virus can be easily remediated, but when left to roam, what as a small virus can infect multiple workstations. Always encourage your employees to have an open line of communication with management, Information Technology staff, and your Information Security Officer. About the Author Austin Jabs is the Information Security Officer for First Neighbor Bank, NA, headquartered in Toledo, Illinois. As a cybersecurity evangelist, he pushes the importance of employee training and awareness and the most important security measure a firm can make. With degrees in Business Management and Cybersecurity both, paired with 16 industry certifications, he is able to see threats and issues that arise from both an immediate perspective as well as the long term impact.

Great Lakes Banker • October 2022

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