25 Hoosier Banker August 2015 1 Indiana Code § 28-13-4-4.“Capital Stock” is defined as the aggregate amount of the par value of all shares of capital stock. Indiana Code § 28-11-3(8). 2 Indiana Code § 28-13-4-5(a). 3 Indiana Code § 28-13-4-3(a). 4 Indiana Code § 28-13-4-3(b). 5 Indiana Code § 28-13-4-3(c). This information is provided for general education purposes and is not intended to be legal advice. Please consult legal counsel for specific guidance as to how this information applies to your institution’s circumstances or situation. aBout ComplianCe ConneCtion In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance program offering advice on Indiana-specific compliance questions. If the matter requires legal advice, IBA Compliance Connection will refer the bank to a law firm. Acting as IBA’s compliance consultants are Brett J. Ashton and John W. Tanselle, partners with Krieg DeVault LLP, Indianapolis. Submit Compliance Connection questions to IBA’s Amber R. Van Til at avantil@indianabankers. org or Josh Myers at jmyers@indianabankers.org. Specifically a bank may declare dividends only from “undivided profits.”7 Further, a bank may not pay a dividend in any amount which exceeds its undivided profits, after deducting losses, bad debts, or depreciation and all other expenses.8 As a result, on its face Indiana law prohibits banks which are currently profitable and well capitalized, but which have a negative retained earnings balance due to losses in prior years from paying dividends. If you have any questions about your bank’s ability to pay dividends, or if you are lending money to a bank holding company and need to determine its ability to service the loan, you should check with the DFI or with counsel. t 6 Indiana Code § 28-13-4-3(d). 7 Indiana Code § 28-13-4-3(a). 8 Indiana Code § 28-13-4-5(b). Gregory W. Springer, senior vice president and chief lending officer, Farmers & Merchants Bank, Boswell, has completed 40 years of service in the banking industry. He joined the bank in 2011. Springer began his career in 1975 with Lafayette National Bank. He later served with Indiana National Bank, National Bank of Detroit, 1st Chicago Bank, Bank One, Union Planters Bank and Regions Bank. He is a member of the Indiana Bankers Association Forty Year Club. Jeannette L. Hostetter, vice president, administration, The First National Bank of Odon, has completed 40 years of service with the bank. She joined the bookkeeping department in 1975, transferred to secretary/receptionist in 1980, was appointed administrative assistant in 1989, was promoted to assistant vice president in 1991 and was promoted to her current title in 2007. Hostetter also serves as executive secretary and human resources coordinator. She is a member of the IBA Forty Year Club. Eric Edmond, manager of technology, MutualBank, Muncie, has completed 30 years of service. Karyn KrugerWallace, finance operations manager, MutualBank, Muncie, has completed 20 years of service. t AnniversAry Milestones A salute to bankers with 20+ years of service Bankers Invited to Join ‘Bankers Speak Up’ “Bankers Speak Up” is the name for a banker resource of communications/grassroots tools and materials. The site contains quality resources free to all bankers at speakup.aba.com. Bankers who have not yet registered are encouraged to do so. For questions or more information, contact Laura Wilson at the IBA, 317-917-8047, email: lwilson@ indianabankers.org. t
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