FHLBank Chicago Reveals Results of Its 2026 Board of Directors Election
The Federal Home Loan Bank of Chicago (FHLBank Chicago) has announced the results of its 2026 director election, confirming the re-election of Betsy A. Johnson and Kevin L. Newell, alongside the unopposed election of James H. Hegenbarth. The three directors will serve four-year terms beginning January 1, 2027, supporting the bank’s governance, risk management, affordable housing initiatives, and financial services operations across Illinois and Wisconsin.
The election results reflect FHLBank Chicago’s continued focus on maintaining experienced leadership within its Board of Directors. The elected directors bring extensive backgrounds in community banking, financial management, real estate development, affordable housing, and economic development.
The election included one member director position representing Illinois, one public interest independent director position, and one member director position representing Wisconsin. Illinois members re-elected Betsy A. Johnson, while FHLBank Chicago members also re-elected Kevin L. Newell as a public interest independent director. James H. Hegenbarth was elected without opposition to represent Wisconsin.
Each director will begin a new four-year term on January 1, 2027, contributing to the governance and strategic oversight of the Federal Home Loan Bank of Chicago.
FHLBank Chicago Confirms Three Directors for Four-Year Terms
The Federal Home Loan Bank of Chicago plays an important role in supporting financial institutions and housing finance activities across its district, which includes Illinois and Wisconsin.
As part of the Federal Home Loan Bank System, FHLBank Chicago provides member financial institutions with access to funding solutions and other financial services designed to support liquidity, mortgage lending, and community investment.
Its Board of Directors is responsible for overseeing important aspects of the institution’s governance, financial management, risk controls, and strategic direction.
The 2026 director election maintains a combination of experienced banking professionals and independent leadership with expertise in community development and housing investment.
The election results also highlight the importance of regional representation within the Federal Home Loan Bank System.
Directors representing member institutions contribute knowledge of banking operations, financial regulations, and local lending markets. Independent directors provide additional perspectives, including experience in housing, economic development, and broader public interest matters.
Together, these backgrounds support the board’s ability to oversee the institution’s responsibilities to its members and the communities they serve.
Betsy A. Johnson Re-Elected as Illinois Member Director
Illinois member institutions have re-elected Betsy A. Johnson to the FHLBank Chicago Board of Directors.
Johnson has served on the board since 2023 and brings nearly three decades of experience at Solutions Bank, headquartered in Forreston, Illinois.
She currently serves as Chairman and Chief Executive Officer of Solutions Bank, where she has held numerous leadership positions throughout her banking career.
Johnson joined the institution in 1996 and gained experience across several critical banking functions, including lending, human resources, asset and liability management, risk management, and regulatory reporting.
Her professional background reflects extensive involvement in the operational and financial responsibilities associated with community banking.
In 2018, Johnson became President and Chief Operating Officer of Solutions Bank, expanding her leadership responsibilities across the organization.
She subsequently advanced to President and Chief Executive Officer in 2020 before assuming the position of Chairman and CEO in 2025.
These leadership roles have provided Johnson with experience overseeing financial institution operations, organizational management, and banking strategy.
Her re-election allows FHLBank Chicago to retain a director with substantial knowledge of community banking and financial services across Illinois.
Johnson Brings Risk Management and Banking Governance Experience
During her service on the FHLBank Chicago Board of Directors, Johnson has participated in several committees responsible for important governance and oversight functions.
She currently serves on the Human Resources and Compensation Committee and holds the position of Vice Chair of the Risk Management Committee.
These responsibilities involve areas that are essential to the effective operation and governance of a financial institution.
Risk management oversight is particularly important for organizations operating within the banking sector, where financial institutions must evaluate liquidity, credit exposure, market conditions, and operational risks.
Johnson’s experience in asset and liability management, regulatory reporting, and lending provides relevant expertise for these responsibilities.
She previously served on FHLBank Chicago’s Affordable Housing Committee and Operations and Technology Committee.
Her involvement in these committees reflects a broad understanding of the institution’s financial, operational, and community investment priorities.
Outside FHLBank Chicago, Johnson has also held leadership positions within the wider banking industry.
She previously served as Chair of the Illinois Bankers Association, an organization representing banking institutions throughout Illinois.
Additionally, she served on the Federal Deposit Insurance Corporation’s Community Banking Advisory Committee, contributing her experience to discussions involving community financial institutions.
Johnson graduated from the Graduate School of Banking at the University of Wisconsin-Madison and later served as Chair of its Banker Advisory Board.
Her professional and educational background reinforces her experience in banking leadership, regulatory matters, and institutional governance.
Kevin L. Newell Re-Elected as Public Interest Independent Director
FHLBank Chicago members have also re-elected Kevin L. Newell as a public interest independent director.
Newell has served on the bank’s Board of Directors since 2023 and brings extensive experience in real estate development, housing investment, and community economic development.
He is the founder and Chief Executive Officer of Royal Capital Group, a Milwaukee-based real estate development company focused on economic development and housing opportunities in urban communities.
Newell established Royal Capital Group in 2010 and has since led the company’s business development, investment strategy, and organizational growth.
His professional activities have centered on real estate projects and investment initiatives intended to support development within communities.
This experience provides a perspective relevant to FHLBank Chicago’s involvement in housing finance and community investment.
As a public interest independent director, Newell contributes knowledge of real estate development and community needs alongside the banking expertise represented on the board.
His re-election also provides continuity in the board’s oversight of issues related to housing, investment, and regional economic development.
Newell’s Experience Supports Affordable Housing and Community Investment
Newell’s background includes significant involvement in organizations focused on community development, housing, and investment.
He serves on the Greater Milwaukee Foundation Impact Investment Committee, which is associated with investment activities intended to generate financial and community benefits.
He also serves on the boards of Guest House of Milwaukee, MLK Economic Development Corporation, and Wisconsin Preservation Fund.
These organizations are involved in areas such as community services, economic development, and housing preservation.
Through these responsibilities, Newell has developed experience in evaluating development opportunities and supporting initiatives connected to community needs.
Before joining the FHLBank Chicago Board of Directors, Newell served on the institution’s Community Investment Advisory Council from 2019 through 2022.
That earlier involvement provided him with direct experience related to the bank’s community investment activities.
His transition from the advisory council to the Board of Directors reflects a continued association with FHLBank Chicago’s housing and community development functions.
Newell holds a bachelor’s degree in business administration and a Master of Business Administration from the University of Wisconsin-Whitewater, with an emphasis on finance and management.
He is also an alumnus of Marquette University’s Associates in Commercial Real Estate program.
His educational qualifications complement his professional experience in financial investment, real estate development, and organizational leadership.
James H. Hegenbarth Elected Unopposed in Wisconsin
James H. Hegenbarth was elected without opposition to the Wisconsin member director position on the FHLBank Chicago Board of Directors.
Hegenbarth previously served on the board from 2018 through 2025 and will return for a new four-year term beginning January 1, 2027.
He currently serves as President and Director of Bank CMG in Madison, Wisconsin.
Hegenbarth has worked in the banking industry since 1985, bringing more than four decades of financial services experience to his leadership responsibilities.
His professional career includes extensive involvement in community banking, financial institution management, and industry governance.
Before his current position at Bank CMG, Hegenbarth served as President and Chief Executive Officer and a board member of Park Bank in Madison from 1991 to 2024.
His long tenure at Park Bank provided experience overseeing banking operations, organizational development, and financial services activities.
Earlier in his career, he worked at First Bank N.A., which is now part of U.S. Bank.
Hegenbarth also serves on the Board of Directors of Greenwoods Financial Group, Inc.
His return to FHLBank Chicago’s board provides the institution with a director familiar with its governance structure and the financial services environment in Wisconsin.
Hegenbarth Recognized for Leadership in Wisconsin Banking
Throughout his career, Hegenbarth has participated in several banking industry organizations and advisory groups.
In 2020, he was named Banker of the Year by the Wisconsin Bankers Association, recognizing his contributions to the state’s banking industry.
He has also served on the Wisconsin Bankers Association’s Board of Directors and Government Relations Committee.
These responsibilities involved participation in industry discussions and matters affecting banking institutions operating within Wisconsin.
Hegenbarth additionally served on the American Bankers Association’s Federal Home Loan Bank Committee, providing experience directly relevant to the Federal Home Loan Bank System.
His involvement in banking associations demonstrates his longstanding engagement with financial industry governance and institutional matters.
Beyond banking, Hegenbarth has served on the board of American Family Children’s Hospital, reflecting involvement in community organizations.
He earned a bachelor’s degree in economics from the University of Wisconsin-Madison and graduated from the Graduate School of Banking at the same university.
His combination of banking management experience, industry involvement, and previous FHLBank Chicago board service provides relevant expertise for his upcoming term.
Board Leadership Supports FHLBank Chicago’s Financial Services Mission
The election of Johnson, Newell, and Hegenbarth brings together leadership experience from several areas closely connected to FHLBank Chicago’s responsibilities.
Johnson contributes knowledge of community banking operations, financial risk management, and regulatory reporting.
Newell brings expertise in real estate development, housing investment, and community economic development.
Hegenbarth offers extensive experience in banking leadership, financial institution governance, and industry relations.
These complementary backgrounds are important for an institution serving member financial organizations across Illinois and Wisconsin.
FHLBank Chicago operates within a financial environment where liquidity management, housing finance, regulatory compliance, and risk oversight remain essential responsibilities.
Its Board of Directors plays a central role in ensuring that the institution maintains appropriate governance practices while supporting its financial services mission.
The experience represented by the elected directors can contribute to board discussions involving funding operations, member services, risk management, and community investment programs.
Their continued involvement also provides institutional knowledge that may support effective decision-making and governance continuity.
Federal Home Loan Bank System Plays a Key Role in Housing Finance
FHLBank Chicago is part of the Federal Home Loan Bank System, a network of regional financial institutions established to support housing finance and provide funding to eligible member institutions.
The system plays an important role in helping banks, credit unions, insurance companies, and other eligible financial institutions manage funding and liquidity needs.
Federal Home Loan Banks provide secured advances and other financial services that member institutions can use to support their operations.
These funding arrangements can help financial institutions maintain access to liquidity while serving customers and communities.
The Federal Home Loan Bank System also supports affordable housing and community development through programs established under its statutory responsibilities.
Within this framework, FHLBank Chicago serves financial institutions located in Illinois and Wisconsin.
Its activities are closely connected to the availability of funding for member institutions and the broader housing finance market.
Effective board oversight is therefore important for maintaining financial stability, managing institutional risks, and supporting the bank’s responsibilities.
The election process allows member institutions to participate in selecting directors who will oversee these functions.
Governance and Risk Oversight Remain Important Priorities
Financial institutions operate in an environment shaped by changing economic conditions, interest rates, regulatory requirements, and funding demands.
For Federal Home Loan Banks, maintaining strong governance and effective risk management is essential to fulfilling their responsibilities.
Board members must oversee matters involving financial performance, institutional policies, operational controls, and regulatory compliance.
The expertise of directors with experience in banking, finance, and real estate can help inform these oversight responsibilities.
Johnson’s background in risk management and regulatory reporting is particularly relevant to financial governance.
Hegenbarth’s extensive banking leadership experience provides insight into the funding and operational needs of member institutions.
Newell’s expertise in housing and community development contributes a perspective on the relationship between financial services and regional investment.
Together, their backgrounds reflect the range of professional experience represented within the board’s governance structure.
The directors will serve four-year terms beginning January 1, 2027, continuing their involvement in the oversight of FHLBank Chicago’s financial and operational responsibilities.
Election Results Reinforce Leadership Continuity Across Illinois and Wisconsin
The 2026 director election results provide FHLBank Chicago with continuity in key board positions while maintaining representation from its two-state district.
Johnson’s re-election ensures the continued participation of an experienced Illinois community banking executive.
Newell’s re-election maintains public interest independent representation informed by housing development and investment experience.
Hegenbarth’s unopposed election brings a former board member back into the institution’s governance structure, adding decades of banking leadership experience.
All three directors have established professional records involving financial services, organizational leadership, or community investment.
Their terms will begin on January 1, 2027, and run for four years, subject to applicable governance requirements.
The election underscores the importance of experienced board leadership in overseeing an institution that supports member financial organizations and housing finance activities.
Through its elected directors, FHLBank Chicago will continue to draw on expertise in banking operations, fiduciary responsibilities, financial risk management, affordable housing, and economic development as it carries out its mission across Illinois and Wisconsin.
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