Hoosier Banker 23 Capital Expenditures Farmers also were asked whether now is a good time to purchase additional capital equipment. The farm capital investment index rose 10 points in the latest survey. This index is still below 100, however, which indicates that more farmers believe now is not a good time to invest in additional capital equipment for the farm than those who think it is. Indeed, 56% of farmers indicate their plans for machinery purchases in the coming year have decreased compared to their plans a year ago. This shows that more farmers may hold off on new purchases and delay capital expenditures until the markets are more certain. A new law—the Economic Growth, Regulatory Relief, and Consumer Protection Act—makes most reciprocal deposits no longer brokered. This is a huge growth opportunity for banks across the nation. Now your bank can grow even more deposits that increase franchise value; attract even more high-value, local customers; and increase funds available for local lending. To learn more, contact your Regional Director, Erich Buckenmaier, at (866) 776-6426, ext 3354 or ebuckenmaier@promnetwork.com. MOST RECIPROCAL DEPOSITS NO LONGER BROKERED In conclusion, farmers were more optimistic in July about the future profitability of their farms than they were in the spring. Their expectation of future profitability is driving this positive sentiment. While land values are expected to continue their slightly upward trajectory, it does appear that farmers are being cautious about adding new capital expenditures to the farm in response to the risks the industry is facing. Agricultural bankers need to be cautious of the individual risk each farm poses, of course, but agriculture seems to be well-positioned to weather the economic hardships ahead. HB BANKING CENTER NEWS Bath State Bank opened a new banking office on June 15 at 110 N. Main St., Liberty, located at the corner of U.S. 27 and Brownsville Avenue in a former service station. A total of 22 local businesses were contracted for the remodel project. Features include an ATM, night depository and two drive-up lanes. The branch is served by Miranda Finch, deposit operations manager, and David Edwards, senior vice president/commercial and mortgage loan officer. Community First Bank of Indiana, Kokomo, opened a new branch on July 15 at 17661 Village Center Dr., Noblesville. Mayor Chris Jensen took part in the ribbon-cutting celebration, along with representatives of the Noblesville Chamber of Commerce, local government officials and bank staff. Also in attendance were members of the Noblesville Girls Softball Association, which received a donation from the bank. Representatives of Bath State Bank and Union County Development Corp. gather for a ribbon-cutting ceremony at the bank’s new location in Liberty. Bank personnel and members of the Noblesville community gather for the opening of a new branch of Community First Bank of Indiana, Kokomo.
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