Mutual Loyalty

How many people do you know have enjoyed a private dinner with George W. Bush, won a journalism award writing for Reuters, speaks five languages, served on the Governor’s Cabinet of George Voinovich, and traveled the world while banking with First National Bank of Pandora?  If no one came to mind, then you haven’t met M. Michael Akrouche of Beirut, Lebanon.

Michael has been a customer at First National Bank for over 50 years and has truly led a remarkable life.  He was born and grew up in Lebanon and moved away from home after college to take a job writing for Reuters of London.  His job took him all over the world to write about Lebanese natives who left for economic and religious reasons and found success outside their home country.  Michael won a journalism award for a piece he wrote about the grandson of a Lebanese immigrant who he met in the Caribbean during his travels.

Michael arrived in the United States for the first time in June, 1956.  He spent time at Ohio State University visiting friends and even met his future wife at a dance on campus on Valentine’s Day, 1957.  Shortly thereafter, Mr. Akrouche visited Findlay with a friend whose brother worked at Cooper Tire.  While he was in the area, Michael visited First National Bank of Pandora and opened his first
account.  According to Michael, he has written thousands of checks over the years from his account and is still an active depositor.

Mr. Akrouche fondly remembers the first application he completed at the Bank over 50 years ago.  He had spent all his time in international urban settings to that point in his life and thought it was humorous that the Bank application asked him how many cows, pigs, chickens, and acres of land he owned!  He has continued to use his account at First National Bank throughout the years because he appreciates everything community banks contribute locally and he has enjoyed his interaction with staff whenever he has had a banking request.

Michael’s illustrious career includes time spent working in the public relations section of the Department of Highways for Governor C. William O’Neill, in 1958-59.   He also worked as the Assistant Director of the SBA for 63 counties in Ohio, the Deputy Director of Housing and Urban Development (HUD), and was named Director of the Department of Liquor Control when George Voinovich became Governor in 1991. Michael played an integral role in privatizing liquor sales in Ohio stores and eventually retired in 1997 from the position after he closed down the departments’ liquor stores and abolished his job as Director of the
Department.  According to Akrouche, the privatization effort saved the State of Ohio approximately $37 million in the first year.                                                                          

One of Michael’s proudest moments was a personal invitation from George W. Bush to attend a private ambassador’s dinner at the White House with the President in 2005.  Mr. Akrouche has been happily married to Mary Walters of Jackson, Ohio for 54 years and counting and has two adult children and five grandchildren. He is now retired and lives in Westerville, Ohio and Florida.

We’re flattered to be the Bank Mr. Akrouche chose to visit during his travels, and we have enjoyed getting to know him and his remarkable life story.

Do you have a story about your positive experiences banking with First National? If so, we’d love to hear it. 

Construction is underway on Findlay West

From L to R: Lenny Clouse – President, Clouse Construction Corporation; John Haywood – President, Findlay-Hancock County Alliance; Don Dreisbach – Chairman, First National Bank Board; Chuck Niswander – Chairman, Pandora Bancshares; Robert Sprague – State of Ohio Representative; Todd Mason – President/CEO, First National Bank; Pete Sehnert – Mayor, City of Findlay

The Bank broke ground yesterday for the new “Findlay West” branch.  The branch will open early next year and is located across the road from Wal Mart on Trenton Avenue west of I75.  The exciting times continue at First National Bank.

It Was BIG, Thanks to Your Help

It would have taken a whole lot more than overcast skies and a little rain to dampen the entrepreneurial spirits of the 40 youth who showed up at “work” Saturday for First National Bank’s inaugural “BIG Lemonade Stand.”

Bring on the Customers!

From the authentic lemonade stand to the classic signage, this group of 5-13 year olds made the most of their afternoon.  They poured lemonade, handed out stickers to loyal customers, and put their classroom learning to work.

Thanks to all of you parents for allowing your children to participate.  Thanks to all of you who bought cold lemonade on a chilly day in order to encourage these eager kids to take the initiative and get excited about working hard and earning money.  Thanks to Bluffton Presbyterian Church for allowing the kids to set up shop on the church lawn.  Thanks to Bluffton Dari Freeze for donating cups for the stand.  Thanks to Randy Scoles and company for his great work on the lemonade stand.  And thanks to the young people who participated and have a little extra money in their savings accounts as a result of their labor.

Inaugural BIG Lemonade Stand

New Business Coming To Bluffton!

A new business will be opening its doors on June 24, 2011, in Bluffton, Ohio.

And, earlier this spring I had the opportunity to facilitate a strategic planning session for this aspiring business.  The company has about 40 employees that are full of energy, passion and enthusiasm.  They come from different backgrounds but they all have bright minds and you can see the potential when they start moving in the same direction towards a common goal.

I facilitated the strategic planning session to help them think through their idea and formalize a business model.  Their product isn’t necessarily anything special, but their presentation and delivery is where they have a competitive advantage.  The ideas flew fast and furious.  I had trouble keeping up, but here are a few notes we took at the planning session:

Proposed Business Location: Downtown Bluffton (Main St and Cherry)

Direct Competition: There will be plenty of it; will be tough to compete long-term; especially Common Grounds, Community Markets, The Food Store, etc.

Target Market: Any human, all ages; must be thirsty

Product Pricing: $0.50/item; try to encourage repeat business and BIG tips

Competitive Advantage: Young, enthusiastic, persuasive, cute

Marketing: Social media and local media(I offered to help with this one), door-to-door selling (see note above on being persuasive and cute), pass out coupons on Main Street, make lots of noise at the business location, have customers wear stickers publicizing that they participated.

Hours of Operation: Friday, June 24, 2011, 1-5pm; see how it goes and play it by ear to determine if we reopen after Friday.

Goal: Earn, Save, and Spend wisely; Develop the entrepreneurial spirit; plant the seed early to encourage financial responsibility; Build Community Greatness

Business Name: Young Entrepreneurs

Product: Best lemonade this side of Main Street

What to Watch For: Very persistent Young Entrepreneurs in royal Blue T-Shirts coming after you with a glass of lemonade and a sticker

What the Young Entrepreneuers will do with their earnings: Deposit in their savings accounts

How You (the reader) can Help: Visit the “Big Lemonade Stand” on June 24 in Bluffton and show your support for these Young Entrepreneurs who are learning first-hand about responsibility, earning money, creativity, and teamwork

Member FDIC          Equal Housing Lender

 

 

What’s my Credit Score?

According to a recent report by Smartcredit.com, only 4% of people access their free credit each year. The government originally started requiring the three major credit bureaus—Equifax, Transunion, and Experian—to provide a free annual report every year to encourage credit education, reduce fraud and identity theft among consumers. Given the 4% utilization rate, it appears the effort may not be working according to plan. However, credit monitoring is big business as more and more players are entering the market for your financial management dollars. Here are five things to consider regarding personal credit management and your free report:

1. Annualcreditreport.com is the ONLY government sponsored site that offers a free annual report from each of the three credit bureaus. There are countless copycats and plenty of other legitimate providers, but make sure you know what kind of site you’re visiting before you invest money with a credit monitoring service.

2. This site (annualcreditreport.com) allows users to choose the method and timing of report orders. The reports can be ordered at the same time or staggered over the course of the year: user option. Also, the credit history report is free, BUT it does cost to get a FICO score as part of the order.

3. Once you order a report from one of the bureaus, it’s not free again for a full year.

4. Since the report is designed to promote awareness, it makes sense to use the report to familiarize yourself with the content of your report. If there are errors or fraudulent information on your history, there are ways to dispute the information and get the report corrected. It’s important to dispute the information immediately so when good credit matters—loan, insurance, and job application to name a few—your record will be correct and accurately reflect your history.

5. As identity theft and security breaches of personal information become more common, it is essential to protect identity and monitor fraudulent activity. All three of the main bureaus, and many other quality credit monitoring providers, offer ongoing protection in various forms. It would be very wise to use annualcreditreport.com as an introduction to your credit, and then find a service to help you monitor your credit and personal information moving forward. It is much easier to plan ahead and purchase protection than it is to try to pick up the pieces after you’ve been victimized by identity theft.

Member FDIC Equal Housing Lender

Back to Kasasa…Where does this fit into reality?

Since we launched Kasasa at First National Bank on May 9, 2011, we’ve had a great response from the community. Many of our existing clients are giving it a try and finding out this product is fantastic. We’re also seeing a good number of new faces coming through the doors at all of our branches to see what the buzz is all about.

I’ve also had a good number of friends, colleagues, and acquaintances say something like this in response to Kasasa: “Kasasa, yes, I’m still trying to figure that one out…”
Kasasa (i.e. rewards deposit accounts) does seem to fly in the face of everything a bank normally holds dear: we pay a modest rate of interest, don’t get too crazy with promotions and gimmicks, and don’t do anything that will make people wonder whether or not we really know how to take care of their money. In contrast, Kasasa pays a rate of interest most people would jump to have right now on a certificate of deposit, and we’re willing to pay it on a checking account. Kasasa is a word that sounds crazy and maybe a little gimmicky. And with the rates and the name, people may be wondering if we really know what we’re doing at First National.

The reality of the situation is that banking is changing. We are a small business, and we have to adapt to challenges just like any organization; lately it seems like we see a new challenge every time we turn around. For example, we are VERY heavily regulated, and the rules aren’t going to be loosening any time soon. Competition is also fierce as non-banks are starting to offer products we’ve offered for years. And, technology is changing the way everyone conducts business—including banking. We have more accounts and customers than we’ve ever had before at First National, but we have fewer and fewer people coming into our branches on a regular basis. As online banking, direct deposit, and smartphones become more and more prevalent, we are realizing we have to adapt in order to be successful and provide a relevant service you value.

Circling back to the original question, the reasons we offer Kasasa center around the ways we’re trying to adapt to our environment. If a customer meets three behavioral criteria on a regular basis he or she is rewarded with the high rate of interest and/or other rewards. These criteria are:

1) Debit cards – We earn money—interchange—whenever someone swipes a debit or check card. In addition, it costs us more money to process a paper check than it does to handle electronic transactions. If a client swipes her card a certain number of times (10) in a qualification cycle, then she meets this criterion.

2) estatements – It costs us money every time we generate and mail paper statements. It costs a LOT of money over time. Some estimates are that it costs more than $2/Statement mailed. In order to qualify for the account rewards, a client has to agree to receive statements electronically. The great thing is that this not only cuts costs, but also provides a couple significant benefits to our clients. First, estatements are environmentally friendly because they can be viewed online without having to be printed. Second, instead of having to wait on your statement in the mail, our estatements are accessible immediately after being generated through our online banking. In addition, the online banking site provides instant access to old statements so in essence you have an archive of statements at your fingertips.

3) The final qualification is to have one direct deposit or one automatic ACH (electronic) debit in a qualification period. One of our main goals in offering these new accounts is to develop clients who use us as their primary bank. We’d love to be the primary bank for all of our clients. Clients who have direct deposit or set up automatic ACH debits are more likely to use the account as their primary account. We’re trying to encourage that relationship.

Ultimately, in order for us to be a successful bank we need to adapt. Adapting in this case means embracing technology (debit cards/estatements/electronic transactions), cutting costs (estatements/debit cards), and growing relationships with clients so they use us as their primary bank (Direct deposit/ACH debits). This is a mutually beneficial development because we’re accomplishing our goals by offering superior products and meeting the financial needs of our local communities.
Hopefully, this helps a few of our Kasasa skeptics understand both the benefits and the reasoning behind the products we’ve introduced. It is possible for both sides to benefit in a situation like this.

I’d welcome your comments and feedback on any of this, and if you have questions about Kasasa and rewards accounts, feel free to respond.

Member FDIC Equal Housing Lender

Picking a Bank isn’t as Easy as it Used to Be

I was at Barret Graduate School of Banking in Memphis, TN, last week. It was a great week and I met some fantastic people and instructors from around the country. I was also reminded of something over and over again as I interacted in classrooms throughout the week: picking a bank isn’t as easy at is used to be.
I started working in the banking industry in 2002 as a front-line teller. My initial trainer–and many banking associates after that–drilled into me that banks were all the same in terms of products and services, and the only variable we could control was superior customer service. An individual could visit any bank and expect to have the same options regardless of a bank’s size and sophistication. Sure, size mattered at times because rates were typically more competitive at larger banks, but any community bank could attract customers with the occasional CD special or loan offer. And I have always been told that community banks could use size to their advantage by emphasizing local service from local people who have a vested interest in their community.
I think we’re starting to see a seismic shift in the way people do banking. And that shift is starting to–and will continue to–give community banks more substantial ways to differentiate themselves. Years ago, banks offered checking, savings, and time deposit accounts. They offered home loans, car loans, and small business loans. More recently they started offering ancillary services like insurance, investments, and trust services. But that’s nothing compared to how technology has contributed to the products a traditional bank can offer today: online banking, bill pay, and now mobile banking for smart phones. Person to Person payment (think PayPal) is available at many banks, and bigger banks (Chase, most prominently) are starting to scan checks with smart phones. By this time next year, the biggest banks–and companies like AT&T and Google–will offer consumers the capability to use their phone to make payments instead of the now traditional credit or debit card. Some of this technology will become standard at every bank (i.e. online banking). Other products will probably fade as they are replaced by other, better options (the paper check??). And it matters because banks, especially community banks, will have to determine what fits their vision and their community. Limited budgets and unique markets will force banks to prioritize what they offer and how they offer it. And that will mean you the consumer will have choices to make. You may not be able to walk into a bank and get the product you’ve seen advertised at a different bank. The bank you choose may be the optimal combination of service, product mix, and technology. And, scary as it sounds, you may come to rely on your banker as an expert on technology, at least as it relates to banking.
I’m curious to hear your thoughts. Have you seen any products or services in the marketplace that interest you? That may be coming soon to a bank near you?? Thanks for the feedback.

Is there a Solution to Low Interest Rates offered at Banks?

Rates on deposit accounts at banks have been low for what probably seems like forever. And it’s discouraging to see the same low rates (or lower) every day when you walk into the Bank and think about where you might best use your money. Banks provide safety but not necessarily the best rates of return when compared to the stock market.

However, the stock market doesn’t carry FDIC insurance coverage on deposits so people are often willing to sacrifice rate to keep safety, especially considering all that we’ve been through in recent years with the credit crisis, stock market volatility, and declining values in real estate.

Wouldn’t it be refreshing to earn a GREAT rate of return, keep funds liquid, and retain the security of FDIC insurance on your deposits?

Turns out that at First National Bank, as of today, you can have it all…it’s a little thing called Kasasa…and it’s worth checking out!

www.e-fnb.com

Member FDIC

If your odds were 1 in 30 How Daring Would you Be?

There is a 1 in 30 chance that you were a victim of identity theft in 2008. In addition, there is a 1 in 10 chance that you’ve already been a victim of ID theft at some point in your life. There are some other eye-opening statistics at the bottom of this post that I borrowed from spendonlife.com. It seems like identity theft is happening more and more often to more and more people. And, the thieves appear to be getting more and more creative.

I don’t want to bog you down with piles of numbers but here a few key statistics to help lay some groundwork. There are 307 million people and 232.4 million adults in America according to the 2009 US Census. Of those, (according to Javelin Strategy and Research) 50.2 million are using a credit monitoring service to keep track of their credit history. That leaves 182.2 million US adults who are NOT monitoring their credit. And finally, 10 million people were victimized by identity theft in 2008. There are too many numbers to really break down in one blog post, but my one overriding thought is that there are too many unassuming people out there who do not appear to be adequately protected.

The assumption I take away from this is that people look at ID theft protection as just another form of (unwanted and unnecessary) insurance. I know there are people who don’t necessarily think they need insurance and assume it’s a waste of money UNTIL they have a loss. Then, they’re true believers and wouldn’t ever be caught dead without it.

At the Bank, we offer identity theft protection. There are various levels of protection that can be relatively inexpensive. However, it is one of the products almost no one ever uses. Why is this? Do people not see value in identity theft protection? Is identity theft something that people don’t see as an imminent threat? OR, is there another avenue for identity theft protection (i.e. through a homeowners insurance policy) that provides better value? Given the statistics below that demonstrate the enormous cost to victims of ID theft (both time and money), the cost of protection seems like money well spent.

I would love some feedback on this topic so feel free to comment and let me know what you think about identity theft and people’s general response to it. If you’re bored by the topic feel free to let me know that as well, or throw out some other suggestions.

Thanks for reading.

IDENTITY THEFT STATISTICS (courtesy of spendonlife.com)

Victims
• There were 10 million victims of identity theft in 2008 in the United States (Javelin Strategy and Research, 2009).
• 1 in every 10 U.S. consumers has already been victimized by identity theft (Javelin Strategy and Research, 2009).
• 1.6 million households experienced fraud not related to credit cards (i.e. their bank accounts or debit cards were compromised) (U.S. Department of Justice, 2005).
• Those households with incomes higher than $70,000 were twice as likely to experience identity theft than those with salaries under $50,000 (U.S. DOJ, 2005).
• 7% of identity theft victims had their information stolen to commit medical identity theft.

Discovery
• 38-48% discover someone has stolen their identity within three months, while 9-18% of victims don’t learn that their identity has been stolen for four or more years (Identity Theft Resource Center Aftermath Study, 2004).
• 50.2 million Americans were using a credit monitoring service as of September 2008 (Javelin Strategy and Research, 2009).
• 44% of consumers view their credit reports using AnnualCreditReport.com. One in seven consumers receive their credit report via a credit monitoring service. (Javelin Strategy and Research, 2009).

Recovery
• It can take up to 5,840 hours (the equivalent of working a full-time job for two years) to correct the damage from ID theft, depending on the severity of the case (ITRC Aftermath Study, 2004).
• The average victim spends 330 hours repairing the damage (ITRC Aftermath Study, 2004).
• It takes 26-32% of victims between 4 and 6 months to straighten out problems caused by identity theft; 11-23% of victims spend 7 months to a year resolving their cases (ITRC Aftermath Study, 2004).
• 25.9 million Americans carry identity theft insurance (as of September 2008, from Javelin Strategy and Research, 2009).
• After suffering identity theft, 46% of victims installed antivirus, anti-spyware, or a firewall on their computer. 23% switched their primary bank or credit union, and 22% switched credit card companies (Javelin Strategy and Research, 2009).
• Victims of ID theft must contact multiple agencies to resolve the fraud: 66% interact with financial institutions; 40% contact credit bureaus; 35% seek help from law enforcement; 22% deal with debt collectors; 20% work with identity theft assistant services; and 13% contact the Federal Trade Commission (Javelin Strategy and Research, 2009).

Costs
• In 2008, existing account fraud in the U.S. totaled $31 billion (Javelin Strategy and Research, 2009).
• Businesses across the world lose $221 billion a year due to identity theft (Aberdeen Group).
• On average, victims lose between $851 and $1,378 out-of-pocket trying to resolve identity theft (ITRC Aftermath Study, 2004).
• The mean cost per victim is $500 (Javelin Strategy and Research, 2009).
• 47% of victims encounter problems qualifying for a new loan (ITRC Aftermath Study, 2004).
• 70% of victims have difficulty removing negative information that resulted from identity theft from their credit reports (ITRC Aftermath Study, 2004).
• Dollar amount lost per household averaged $1,620 (U.S. DOJ, 2005).

Perpetrators
• 43% of victims knew the perpetrator (ITRC Aftermath Study, 2004).
• In cases of child identity theft, the most common perpetrator is the child’s parent (ITRC Aftermath Study, 2004).

Methods
• Stolen wallets and physical paperwork accounts for almost half (43%) of all identity theft (Javelin Strategy and Research, 2009).
• Online methods accounted for only 11% (Javelin Strategy and Research, 2009).
• 38% of ID theft victims had their debit or credit card number stolen (Javelin Strategy and Research, 2009).
• 37% of ID theft victims had their Social Security number stolen (Javelin Strategy and Research, 2009).
• 36% of ID theft victims had their name and phone number compromised (Javelin Strategy and Research, 2009).
• 24% of ID theft victims had their financial account numbers compromised (Javelin Strategy and Research, 2009).
• More than 35 million data records were compromised in corporate and government data breaches in 2008 (ITRC).
• 59% of new account fraud that occurred in 2008 involved opening up a new credit card and store-branded credit card accounts (Javelin Strategy and Research, 2009).

I Did My 50 in April…How About You?

In 2009, a business owner in Minneapolis, Minnesota, tried to encourage locals to support locally and independently owned businesses by starting an initiative called the 3/50 project.  The initiative took off and today the project has spread all over the United States.

 The premise is simple.  Pick 3 local, independent businesses and spend a total of $50 between them over the course of a month.  According to The 3/50 Project, of every $100 spent in locally owned stores, $68 remains in the local economy.  In contrast, only $43 of every $100 remains local when spent in national chains, and little or no local revenue results from online purchases. 

 This is the sort of effort that makes a community great.  If people are inspired to think and spend locally, then they ultimately benefit themselves by improving the quality of life where they live. 

 Many community banks celebrate Community Banking Month (April) by doing something to celebrate the connection between Bank and Community, because without a strong community, these banks would not be successful.  First National Bank is celebrating the month by participating in the 3/50 Project.  Every FNB employee has committed to participating in the initiative during the month of April to commemorate Community Banking Month.  Even though many of the Bank employees already spend well in excess of $50 locally every month, the exercise is useful because it reminds people why the process is important.

 Feel free to check out the project online and consider making the 3/50 Project part of your monthly routine.