Hoosier Banker 29 of exposure your various alternatives might bring with them. Those alternatives, whether they apply to broad strategic options or to individual security selections, can now be judged on the basis of their contribution to, or mitigation of, depreciation risk. For those who have taken the steps that allow them to be comfortable in their own risk, downturns in the market do not induce panic. Rather than lament the price depreciation wrought by higher market rates, portfolio managers know their efforts to create and maintain a steady stream of stable cash flow will now be rewarded. This cash flow line-of-defense is beneficial in two ways. Its source represents a diminution, in the case of amortizing securities, of assets with below-market values. These funds now become the transactional ammunition with which to replace lower-yielding, “underwater” assets with higher-yielding, current-market bonds. Depreciation is reduced, and yield is increased. These are both good outcomes, but they won’t happen unless care is taken to identify and acquire, along the way, the kinds of securities that will provide this valuable, defensive cash flow when it is most needed. Remember what your father told you: Defense wins championships. HB The Indiana Bankers Association hosted a roundtable discussion on April 20 on the topic of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. Sen. Joe Donnelly, one of the authors of the bill, led the discussion on how the legislation could positively impact the business and financial institution communities and the customers they serve. Present at the roundtable were Sen. Donnelly; Amber Van Til, president and CEO of the Indiana Bankers Association; IBA Hosts Roundtable With Business Community Lucas White, president, The Fountain Trust Company, Covington; Tom Quaadman, executive vice president, U.S. Chamber of Commerce Center for Capital Markets Competitiveness; Michael Huber, president and CEO, Indy Chamber; John McKenzie, president, Indiana Credit Union League; and Karla Salisbury, president and CEO, KEMBA Credit Union. The IBA thanks Sen. Donnelly and Sen. Todd Young for voting in support of the legislation in the U.S. Senate. HB Three Bankers Complete Essentials of Banking Programming Congratulations to Nichole Hollingsworth (left) and Kaylee Query, both of North Salem State Bank, and to Brad McNeil of First Merchants Bank, Muncie. All three bankers completed the Indiana Bankers Association Essentials of Banking programming in April. The four-part Essentials of Banking series provides comprehensive coverage of banking principles and operations. Representatives of the business and financial institutions communities meet with Sen. Joe Donnelly to discuss the importance of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act.
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