We are not necessarily looking for sea-changing ideas. Instead we are seeking focused ideas to put into play to make our everyday use of technology more productive. For instance we have discovered business card reader software, available through a simple app, that takes a picture of a business card to capture and download contact information into an iPhone directory, bypassing the need for cumbersome keystroking.

Our goal in working with an IT advisory panel will be to identify pieces of software or apps to simplify and streamline some part of IBA operations. We recognize that we will never be large enough to employ a full-time team to monitor technology trends for us exclusively; forming this panel is a way for us to benefit from the eyes and ears of trusted technology professionals who understand some aspects of what we do and how we do it.

For the IBA, as for all smaller-sized organizations, technology is the great equalizer. Properly used, technology can make a company appear much larger than it really is. While appearance is of little interest to us, we do want to uphold our efficiency and professionalism.

A possible side benefit to these efforts will be finding niche software apps that our members could use. If and when we do discover software that could be helpful to the Indiana banking community, we will communicate those findings immediately. We know how important it is that members, too, are able to maintain or improve their efficiency and professionalism, for the sake of the customers and communities they serve.

No insured depositor has ever lost a cent in any U.S. bank failure, since the FDIC was established in 1933. The FDIC was created in response to the Great Depression, specifically to protect depositors of banks and thrifts in the event of a bank or thrift failure, and it has succeeded in its mission. Perhaps no period in history since the Great Depression has been as economically devastating as that of the past four and a half years, but the FDIC continues to perform its duties without wavering.

More remarkable still, this protection has occurred without one cent of funding from taxpayers. FDIC operations, and any losses that occur when a bank or thrift fails, are funded 100 percent by the insured banks and thrifts that pay premiums into the FDIC. Even during the challenging savings and loan crisis of the late 1980s and early 1990s, not one cent from taxpayers was ever used. Instead, the FDIC (and its thrift predecessor, the FSLIC) borrowed funds on the capital markets using the implied full faith and backing of the United States; those funds have been paid back in full by the bank and thrift industry.

The failure of any company is sad and humbling, but the failure of a bank or thrift is especially disheartening, because so many people and businesses in the community are affected. The business procedure itself of transitioning the deposits of a failed institution has been worked into a smooth science by the banking industry and the FDIC. Yet the emotional toll remains huge for owners, employees, customers and the community at large.

Many in the United States want to blame banks for the economic turmoil of the past few years. The truth is that very few banks were the root cause. In fact community banks, such as SCB Bank in Shelbyville, are themselves victims, much as many American families have been victims of this recession. Despite last Friday’s bank failure, however, there are many positive indications that we are nearing the end of the current economic slump, and that better days lie ahead.

Coast-to-coast media converged in the Hoosier capitol, broadcasting the latest from the midst of Super Bowl Village. For the citizens of Indiana, Super Bowl XLVI was a 10-day celebration, though most of our New York and Boston visitors arrived within the last four days. Nearly everyone I have talked to within a couple of hours’ drive of Indianapolis came to see Super Bowl Village and/or the NFL Experience.

Some good luck worked in our favor. First, Mother Nature graced us with unseasonably warm temperatures, averaging above 50 degrees—nothing like the freezing temperatures and snow/ice storms that usually befall central Indiana this time of year. Second, the two teams represented on the playing field brought in fans from wealthy cities—New York and Boston—who came ready to spend money in the Heartland. Third, when planners called for 8,000 volunteers, a total of 13,000 stepped forward—though in my mind that abundant support does not reflect luck but, rather, the giving nature of Hoosiers.

I felt a surge of pride, watching this community-transforming event unfold. It was a feeling similar to what I feel every time I attend one of the national banking conventions. Coming soon is the American Bankers Association’s National Conference for Community Bankers in Palm Desert, Calif., Feb. 19-22, and the Independent Community Bankers of America’s Annual Convention and Techworld in Nashville, Tenn., March 11-15. I would strongly urge bankers to attend one of these national events to benefit from quality education, trade shows and banker-to-banker networking … resulting in a transformative experience for your bank and your community.

Congratulations to the Indianapolis Super Bowl Host Committee. Congratulations to this great city and state for consistently showcasing our Hoosier hospitality. Congratulations to the Super Bowl XLVI champion, the New York Giants. And congratulations to those bankers who will attend one of the forthcoming national conventions, in the interest of moving their banks and communities forward!

Gov. Daniels’ response was excellent. He began by listing points in the speech he agreed with, and that he felt Republicans would help the president to accomplish. Then Daniels focused on the economy, which the president had covered only lightly. In the spirit of conciliation, Daniels encouraged both Democrats and Republicans to seek out areas of mutual agreement.

As for criticism, Gov. Daniels had plenty to mete out regarding the president’s performance during the past three years. Many of us in the business community likely would concur with the governor. The Obama administration continues to default to the idea of a larger federal government as the answer to our economic malaise and high unemployment rate.

Stacking regulation atop regulation will only serve to deprive entrepreneurs of incentive. Instead we need to encourage and motivate entrepreneurs, who can create the jobs we so desperately need to begin the long climb up the mountain of prosperity. Certainly President Obama did not create the economic problems we now share, but he was elected on the premise of change. The goal of that change was to get the economy going again. He has clearly failed.

Even Obama must recognize his failure, as evidenced by the lack of meaningful economic coverage in last week’s State of the Union address.

The merger took place soon after, and it was a smooth transition by all accounts. Ever since then, though, I have harbored a lingering concern. What would the IBA do, I wondered, if faced with a divisive issue between big banks and small banks? This year, that concern became a reality through Senate Bill 147. The bill, with language supported by the county treasurers, covers numerous topics, one of which is the removal of geographic restrictions on relationships with approved depository financial institutions (i.e. banks).

The big banks support this idea, the small banks do not, and the IBA is caught in the middle. It is an uncomfortable position, because we are a member-driven organization. Each member bank, regardless of size, has one vote. Fortunately our executive committee members met their responsibilities head on and examined all facets of the issue. In the end, they were unanimous in their decision. They instructed staff to seek an amendment that would require local government units to maintain their banking relationships with those banks within their service areas. However, in the event of fewer than three approved banks, the local governmental unit may seek relationships with banks in adjoining counties.

What impresses me, more than the end result itself, is the reasoning behind this decision. Our executive committee members felt strongly that, much as banks are required to invest back into their marketplaces through the Community Reinvestment Act, local governments should invest funds back into their communities by supporting those banks that hire local community residents and make lending in the community a priority.

While I understand that this amendment will not likely satisfy all of the larger banks, I am proud of the careful consideration exercised by the IBA executive committee and ratified by the Government Relations Committee and the board of directors. Personally, though, I hope it is at least another 20 years before IBA is faced with another member-divisive issue!

The two speakers for this inaugural meeting were outstanding. John Ketzenberger, president of the Indiana Fiscal Policy Institute—a member-based organization that provides unbiased, nonpartisan research on state tax policy and budgeting practices—delivered an explanation of current state tax revenues and their prospects for the future. With the Indiana Legislature in session, John’s detailed remarks were timely.

The second speaker was Charles L. Evans, president and CEO of the Federal Reserve Bank of Chicago and a current member of the Federal Open Market Committee (FOMC) of the Federal Reserve Board. The FOMC determines economic and monetary policy of the United States and, to a large extent, the world. Dr. Evans has worked for the Federal Reserve Bank of Chicago for more than 20 years, the last four as president and CEO. He holds a Ph.D. in economics and has taught economics at the university level. He has become somewhat of a contrarian voice, at times casting the dissenting vote on economic and monetary policies considered by the FOMC.

His view is that the United States should maintain an accommodative posture, i.e. low interest rates, for as long as it takes to bring the unemployment under 7 percent from its current level of 8.5 percent. Since the Federal Reserve also is tasked with controlling inflation, he would abandon this accommodative posture should inflation exceed 3 percent annually. He says the long-term inflation goal should be 2 percent or less, but would accept 3 percent on a short- or medium-term basis.

While I imagine that many community bankers in the room agreed with Dr. Evans’ assessment for the sake of the economy at large, I expect those same bankers cringed at the prospect of remaining in this low-rate environment relative to the profitability of their banks.

Economic and monetary policy is difficult to decide. Thank you, Dr. Evans, for sharing your insights.

 This year, we will play offense. While there are many issues in which we will be on defense, our biggest issue is removing the corpus of the Public Deposit Insurance Fund (PDIF) from state government custody into a new, not-for-profit Public Deposit Insurance Corporation (PDIC).This new PDIC will have a contract with the State of Indiana guaranteeing coverage of all public deposits—meaning that the entities (depositories) and the insureds (local governments) will determine the best ways to assure taxpayers that they will not be asked to pay increased taxes to cover a loss due to the failure of an insured depository.

 Getting this legislation passed will not be easy. The Daniels administration will, no doubt, be opposed. Those legislators who look at this fund as an answer to funding needs in areas unrelated to taxpayer deposits will be opposed. Firefighters and police who currently benefit from the PDIF income stream likely will be opposed.

 The grassroots efforts of insured depository employers (banks, thrifts, savings banks, savings and loan associations and credit unions) will determine the success or failure of passage of this bill. Your lobbyists have had a bill drafted; our bill sponsors have introduced it, have talked with committee chairs to conduct hearings, and are counting votes. Now it is up to you.

 Please engage your staff in this important issue. We’re playing offense, and we need your help.

May this year also lead Congress to finally and appropriately deal with the misguided efforts of the credit union industry to increase its ability to make business loans. House Bill 1418 would permit credit unions within 80 percent of the current business lending cap of 12.25 percent of assets to apply for approval to increase to 27.5 percent of assets—more than doubling the current level. To make matters worse, credit unions are not required to count loans of less than $50,000 to a borrower or the portion of a loan that has a government guarantee, such as Small Business Administration loans.

And here is the rest of the story, as broadcasting legend Paul Harvey used to say. As of Dec. 31, 2010, fewer than 100 of the nearly 7,300 credit unions nationwide were within the level of 80 percent of 12.25 percent of assets. Will the credit union industry really fall on the sword for these giant, growth-oriented credit unions that bear little resemblance to the original credit union, serving “especially people of modest means”?

Fortunately, there is an easy solution. Those credit unions that want to breach the current limitations should convert to a mutual savings bank charter, pay federal taxes, and be subject to the same rules and regulations as banks and thrifts.

Unfortunately, we have to hope that Congress figures it out. If so, Congress could protect both the banking industry from further unfair competition and the traditional credit union industry from the potential harm of overreaching its mandate. And that would be a happy ending.

But recently we did. On Wednesday, Nov. 9, a local television reporter asked us to comment on a Nov. 4 news release issued by the Credit Union National Association (CUNA). The release boasted that at least 650,000 consumers nationwide had joined credit unions during the prior four weeks, attributable in part to Bank Transfer Day. Which, incidentally, wasn’t happening until the next day, Nov. 5.

I respected the reporter’s interest in talking with the banking community, but I was concerned about giving credence to phantasmal “statistics.” The numbers simply didn’t add up. Verifying the establishment of financial institution accounts is not instantaneous. It takes time to establish accounts; it takes time to verify them. So we politely declined the reporter’s request, explaining that meaningful observations were not possible in the absence of credible data.

Sure enough, four weeks later, CUNA retracted. It admitted that its initial announcement of 650,000 new credit union accounts had been overstated and instead offered a “considerably lower” estimate of 214,000 new accounts. (In my mind, 67 percent down is more than “considerably lower.”) Plus, in October, in which many of the accounts appear to have been opened, CUNA reported that savings account balances at credit unions had decreased from the prior month!

I have never worked at a credit union, but I do know that bankers would not settle for being off by two-thirds—and you would not accept such an error from your trade associations, either. It is important to take a logical look at information presented in order to make a sound decision. You do this every day in running a bank. Thanks for the shining example. Happy New Year!

We also reflect on our industry, and our thoughts turn to the yet-to-be-written regulations that loom ahead. Of the 240+ regulations affecting banks resulting from the Dodd-Frank Act, only a few have been drafted to date. This reprieve is welcomed, but surely it will not last. Meantime FDIC compliance examiners remain unreasonable and difficult to work with, and we are still reeling from the Fed’s double whammy of a significant decrease in the debit card interchange fees that can be assessed, coupled with the statement that interest rates will remain at these historically low levels for at least two more years. Thankfully, bank failures and those on the FDIC watch list have both decreased from the previous year. More good news is that some segments of business appear to be expanding, which could lead to an uptick in commercial lending.

While we are in reflection mode, let us recognize with pride the successes of this industry, despite the financial turmoil of the past few years. I for one am proud that banks have continued to serve their customers’ needs, regardless of difficult circumstances. I am proud that banks’ philanthropic support of their communities has not wavered, tempting as it may be to pull back. I am proud that banks remain pillars of their communities, and by all counts will continue to be. But I am frustrated that national politicians and the national media continue to unfairly tarnish the sterling reputation of banks. Those armchair critics have tuned out the reality that mortgage brokers, investment bankers, mortgage companies, and Fannie Mae and Freddie Mac are not banks. Equally frustrating is that Congress has failed to accept responsibility for its role in causing the financial crisis.

At this time of introspection, our thoughts return to what matters most. Family tops the list, with “family” including our banking community. This industry is a family of people who work together, day-in-and-day-out, to make life better for the customers they serve. This industry is a family of professionals who champion the economic wellbeing of Indiana. This industry is a family of caring individuals who unite through organizations like the Indiana Bankers Association to become the best at what they do. From the IBA family to yours, Happy Holidays!