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May/June 2011
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We Have Money to Lend

Late last year, President Obama weighed in on the issue of bank credit by challenging bankers to take “extraordinary” steps to revive lending to small businesses and homeowners.  “America’s banks received extraordinary assistance from American taxpayers to rebuild their industry,” he said. “Now that (banks are) back on their feet we expect an extraordinary commitment from them to help rebuild our economy.” 

While the President’s comments provide good fuel for the evening news, they don’t necessarily reflect what’s going on in the industry or, more particularly, with community banks that were not responsible for the economic downturn.

Tom Gorman, executive vice president of The Peoples Community Bank, said that the bank has never stopped looking for customers.  “We have money to lend, and we haven’t quit lending,” Gorman said.

Gorman noted that the bank has been able to grow, in part because of a diversified loan portfolio. “Some of our competitors have exposure to over-leveraged borrowers or had a heavy concentration in real estate development,” Gorman said. “If you have a lot of those types of assets on your books, you are not inclined to solicit more of that kind of business.”

“The Peoples Community Bank has been one of the area’s top mortgage and agricultural lenders for many years, a trend that has continued so far this year,” he stated.

The issue of new banking regulations is another fear being pushed by media outlets across the nation. Despite worries of a credit crunch, banks have money to lend and continue making new loans.

Gary Harrop, president of the bank, said it’s true that many banks have tightened their lending practices in response to the recession, which economists now say began in December of 2007 and ended in June of 2009. “Historically, Wisconsin’s locally owned banks have stuck to their conservative banking principles and concentrated on loans that are well-underwritten to creditworthy customers,”

Harrop said. “Very little has changed in the way that we do business. We didn’t have to make major changes.”  Harrop and Gorman believe that rebuilding an economy based on sound business practices and time-tested lending standards seems like the best solution for a lasting recovery. In addition, they note that community bankers know the specific challenges of the local marketplace and can respond   quickly to those needs.

For The Peoples Community Bank, the approach is “business as usual.” As the banking industry continues to change, we will continue to be part of the solution—not part of the problem. We remain committed to being here, serving you for many years to come and promising you Simply Good Banking.

Are you considering taking out a personal loan or purchasing a new home? Perhaps you could use funds to start a new business venture or a college education? We can help.

New Features for Text Banking

We are pleased to announce the release of Text Banking 2.0. This new release offers Text Banking users new functionality that includes, among other things:

• The ability to receive an alert should the balance in your checking account drop below a level that you’ve established in Online Banking and,
• The ability to transfer funds via text message from another PCB account to the primary account that you use for Text Banking.

And the best news is…Text Banking 2.0 is a free service to all Online Banking customers.  Log into your Online Banking account today to sign up for our free Text Banking service.

Seven Ways to Improve Your Credit Profile

While blemished credit is both stressful and costly, it is not the end. Good credit can be achieved with a little effort and discipline. If your credit report is already good, making just a few small adjustments can help increase your credit score.

Here are seven things you can do now to start improving your credit report:

1. Get a copy of your credit report. In order to begin repairing your credit, you need to know what to work on. You can obtain a free copy of your credit report by visiting www.AnnualCreditReport.com.
2. Correct any inaccurate information. You have the right to remove any incorrect information appearing on your credit report. Information about disputing inaccuracies with the credit bureaus will be included.
3. Monitor your money flow. When you’re able to clearly see where your money is going, you can find places to save immediately. This extra money can be used to pay down existing debts, which will help boost your credit score.  Try using Finance Works, the free personal financial management program available on our website.
4. Get current on delinquent accounts. Your payment history makes up 35% of your credit score.  Getting current on your delinquent accounts will have a major impact on your credit scores.
5. Keep accounts with balances open. Although you might be tempted to close out credit card accounts that have become delinquent, you need to make sure they won’t negatively affect your credit if they are closed.
6. Put your credit cards away. In a bad credit situation, one of the worst things you can do is continue accumulating debt by making credit card purchases. Stop using your cards until you have more control of the situation.
7. Be patient. Your credit wasn’t damaged overnight, so don’t expect it to improve in that amount of time. Continue paying your debts and over time you will see an improvement in your credit.

The sooner you begin implementing these steps, the more quickly your credit report will begin to transform. If you have questions, feel free to call us at (800) 795-2151.

Which to Choose:  Lower Payment or Lower Interest Rate?

With interest rates still near historically low levels, an argument can certainly be made for people considering a 15-year fixed rate mortgage instead of a 30-year. However, there are some important factors to consider.

Obviously, the leading benefit of choosing the shorter term is that your mortgage will have a zero balance in 15 years. This should save you tens-of-thousands of dollars in interest payments versus a 30-year loan. The lower interest rate with the 15-year will allow more of each monthly payment to be applied to the principal balance.

On the other hand, the lower interest rate and shorter term come at a monthly cost. In this case, the monthly payment for the 15-year fixed can be more dollars in payment per month than the 30-year fixed. In these tough economic times, cash is king.

Best Path for Prospective Borrowers

Since an individual’s or family’s mortgage payment is often their largest monthly payment, it is important to consider all options and seek professional advice to help make the right decision.

Right now, many attractive mortgage options are still available. We can break down the projected costs of those options for you. And, we can prequalify you for a purchase with no cost or obligation.

For answers to your questions, call one of our mortgage lenders today:

• Barneveld – Judy Butteris – 608-924-2370
• Mazomanie – Stacy Dyreson – 608-795-1167
• Plain – Brian Banker – 608-546-2724
• Spring Green – Mary Lynn Johnson – 608-588-9942

Did You Know?

Your ATM/Debit Card from The Peoples Community Bank can now be used surcharge-free at more than 20,000 ATM locations across the U.S.?  These surcharge-free ATMs can be located here.