10 Hoosier Banker October 2016 CONVENTION COVERAGE Welcome to your Indiana Bankers Association Annual Convention. During the convention, you will have many opportunities to enjoy some fun activities, network with your peers and learn more about the issues of the day. One of the important functions at this convention each year is to update membership on the status of your Association. Upon the conclusion of announced mergers, the IBA will have 110 members headquartered in Indiana, 18 members headquartered outside of Indiana, and four trust companies, for a total of 132 members. That is 10 fewer than what was reported a year ago, as mergers continue to shrink the number of bank charters. In addition we have 165 associate members that continue to support the IBA financially through dues, booth spaces, sponsorships and advertising. The IBA continues to report very strong financial results, with total assets of $11.8 million and liabilities of $1.8 million, for an equity position of $10 million. Much of that has come through entrepreneurial pursuits over the past 15 years. As proof of that, in 2015 the IBA had a net profit of $3.3 million, of which $3.2 million came from the New Markets Tax Credits program. When the New Markets Tax Credits program ends in tax year 2017, the IBA will have earned about $8 million. Since the IRS has a threeyear look back on audits, it will be late in 2021 when we can be sure that there are no challenges to tax returns that are related to the New Markets Tax Credits program. Consequently your board has taken the appropriately conservative position that we should not utilize those funds prior to that time. However, even in the face of our continuing industry consolidation, dues have not been increased since the merger with the Community Bankers Association of Indiana 10 years ago. The most important service that the Association provides for members is our legislative proactivity before the Indiana General Assembly each year. We have had much success over the past several years. This year was no exception. Amber Van Til and Dax Denton were able to secure language that clarifies that state law permits appraisals to be done by the lender for residential real estate loans of $250,000 or less, making state law consistent with FIRREA. They also worked with Sen. Rod Bray and Rep. Tom Washburne to pass clarifying language on which box to check regarding deficiency judgements on foreclosed property. This issue resulted from the TRID form now required to be completed, and differing legal opinions as to how it should be interpreted. Another bill increased from 10 days to 20 days the amount of time a lender has to report to the Indiana Department of Insurance information contained on the RREAL IN form. Yet another example of our legislative success, also brought forward by Sen. Bray, was the Foreclosure Mischief bill. This bill sets various levels for misdemeanors or felonies for intentionally damaging, defacing or permanently removing an object from a property in foreclosure. That bill also adds foreclosed or vacant property to the criminal trespass code. These are important measures that will help lenders be more efficient. Also of great importance to IBA members is the educational programming provided by the Association. During the past year, we have offered about 400 webinars and 200 days of seminars, schools, series, conferences and forums. No other banking IBA 2016: Wrapping up a Successful Year Michael H. Head, chair of the Indiana Bankers Association, is president, chief executive officer and a director of First Federal Savings Bank, Evansville, which he joined in 1980. He has served as a board member of the University of Southern Indiana (USI) Foundation, Deaconess Health System and Habitat for Humanity of Evansville. Head currently is serving on the advisory board of the USI Romain School of Business, the West Side Professional and Business Association and as treasurer of the St. Mary’s Medical Center Foundation board. He also serves as a member of the Independent Community Bankers of America lending committee, and he has served on the board of the Indiana Bankers Association as first vice chair, second vice chair and as a southwest region director. Head earned a bachelor’s degree from the University of Southern Indiana and an MBA from the University of Evansville. Annual Convention address by: Michael h. head First Federal Savings Bank, Evansville IBA Chair 2016
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