ANNIVERSARY MILESTONES Mike Head celebrated 45 years with First Federal Savings Bank, Evansville, in July. He first joined the bank in 1980 after graduating from the University of Southern Indiana, serving in a variety of capacities before being named president in 2000 and president & CEO in 2004. Head serves on the advisory board of the USI Romain School of Business, the Evansville Regional Economic Partnership and the West Side Professional and Business Association. He served as chair of the IBA in 2016 and as the state’s delegate on the national board of the Independent Community Bankers of America from 2016-22. Head earned an MBA from the University of Evansville. Angie Rittenhouse celebrated 40 years with The Bippus State Bank, Huntington, in July. She has spent her entire career at the bank, where she currently holds the title of escrow processor. environments. On the asset side of the balance sheet, lower rates will likely mean lower asset yields. This could cause some pressure on margins for the industry if asset yields decline more than cost of funds. As with anything, proactive management can help mitigate risks. Analyzing the rate environments that present the greatest risk to earnings during the interest rate risk management process, and managing to those risks, remains the best strategy. As deposits remain competitive, having a plan to maintain higher asset yields, rather than relying solely on a decrease in cost of funds, should be a top priority. Used strategically, this is an area where the bond portfolio can really shine, as the right kinds of bonds offer natural falling-rate protection and a hedge against declining asset yields. Loans offer higher yields but carry the risk that customers have significant influence over the rate in falling-rate environments via refinancing and note modifications. Maximizing income with higher loan yields while also not neglecting the bond portfolio can put institutions in a favorable position to limit falling asset yields should we see continued cuts from the Fed. Dillon Wiedemann Senior Vice President – Financial Strategies Group The Baker Group Wiedemann works with clients in a broad range of areas including investment portfolio management, education, swap strategies, and interest rate risk management. A regular speaker at the company’s various educational seminars across the country, Wiedemann holds a bachelor’s degree in finance from the University of Central Oklahoma. The Baker Group is a Preferred Service Provider of the Indiana Bankers Association and an IBA Diamond Associate Member. The ONLY data analytics platform built for bankers, by bankers Indiana Bankers, meet KlariVis Your newest Preferred Service Provider KlariVis.com September/October 2025 17
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