January/February 2012
Volume 6
Official publication of the Michigan Bankers Association
Q
Ideas for growing
your business
Q
Insuring Your Future
Q
The New Census
Q
MEDC Loans
Q
Number 1
EXPERIENCE
+
EXPERTISE
+
INSIGHT = RESULTS
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Contact Joe Hemker at 269.382.8765 or email him at jbh#h2law.com
or contact Ted Eissfeldt at 309.672.1483 or email him at tle#h2law.com
www.howardandhoward.com
Chicago, Illinois | Detroit, Michigan | Las Vegas, Nevada | Peoria, Illinois
John W. Abbott
Summit Community Bank
Robert W. Clarke
First Community Bank
Alessandro P. DiNello
Flagstar Bank
Edwin H. Eichler
Bay Port State Bank
Susan A. Eno
Citizens National Bank
Timothy Jewell
Eaton Federal Savings Bank
Ronald L. Meister
Central Savings Bank
Richard W. Nebel
Peoples State Bank of Munising
Daniel Pehrson
The PrivateBank
Michael G. Sarafa
Bank of Michigan
John M. Schreuder
First National Bank of Michigan
Sandra Willis
Exchange State Bank
Editorial Staff
Executive Editor
Gail L. Madziar
Editorial Assistant
Amy McCaffrey
Advertising Sales Manager
Anthony Kalogeridis
www.mibankers.com
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Chairman
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Fifth Third Bank
Chairman Elect
Craig A. Kus
Bank of Alpena
Vice Chairman
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Lake-Osceola State Bank
Treasurer
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Chemical Financial Corporation
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Board of Directors
Immediate Past Chairman
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United Bank & Trust
President & CEO
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Michigan Bankers Association
Michigan Bankers Association
517-485-3600
website: www.mibankers.com
mbaBanking provides information about the banking industry and news of the Michigan Bankers Association and its members.
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Michigan Bankers Association. In no way should the contents of the articles be construed as legal advice of the MBA.
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editor reserves the right to refuse any advertisement deemed unsuitable. Advertising rates are available at www.mibankers.com.
mbaBanking (ISSN 1934-6492) is published bi-monthly by the Michigan Bankers Association, 507 S. Grand Avenue, Lansing,
Michigan 48933.
Mailing address is 507 S. Grand Avenue, Lansing, Michigan 48933, 517-485-3600. Annual subscription rate is $32 per year
included in dues for members. Periodical postage paid in Lansing, Michigan.
32670$67(56HQGDGGUHVVFKDQJHVWRmbaBanking, 507 S. Grand Ave., Lansing, MI 48933.
mbaBanking© 2012 Michigan Bankers Association is designed and produced in conjunction with MBA by Millbrook Printing
Company, Grand Ledge, Michigan.
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Featured Articles:
13
Table of Contents
Future Growth
13 Insuring Your Future
by Carla Kalogeridis
Replace lost revenue sources and increase customer service.
16 What the New Census Means
to Your Business, Today &
Tomorrow
16
by Kelly McDonald,
McDonald Marketing
Research new customer segments
and learn what they need.
18 18 MEDC and MBA team up to
certify banks for MEDC
Loans — mBank offers
lending success story
Access to capital funding offers
opportunities for small business
growth.
In Every Issue:
7 Chairman’s Corner by Tim Doyle
9 President’s Page by Dennis Koons
11 Capitol Connection by John Llewellyn
20 Education Highlights MBA Bank Management & Directors Conference, MBA Midwest Trust Conference and MBA Perry
Schools of Banking are highlighted.
23 Education Calendar
24 Community Outreach
Honor Bank fights hunger with annual “Fall Food N’ Things” drive.
25 Insurance Corner by Norbert F. Kugele, Partner, Warner Norcross & Judd LLP
26 MBASC Products in the News The MBASC provides an endorsement of Promontory’s new Insurance Cash Sweep service.
27 New Associate Members
30 On The Move News about bank activities and personnel changes.
Also In This Issue:
28 Michigan Banks Team With MSHDA to Help Hardest-Hit Homeowners The Step Forward program makes it easy for
lenders to facilitate foreclosure prevention in Michigan.
29 Support and Relationships Are the Key by Patricia Herndon, MBA Director of Advocacy
www.mibankers.com
5
Managing security systems at the new World Trade Center
is more than a challenge. It’s an honor.
BOLD
SECURITY
CHANGES
ALL.
Diebold’s security integration connects an array of systems, giving operators
unified control and citizens peace of mind. It’s another example of Diebold doing
more to build relationships. Relationships that have inspired us to become
leaders and innovators in the banking industry for more than 150 years.
For the entire story, visit Diebold.com/boldsecurity.
1.800.806.6827
diebold.com
[email protected]
Tim
Doyle
Chairman
Michigan Bankers
Association
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welfare and usefulness of banks and
banking institutions and to secure
uniformity of action, together with
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declaration of the Constitution and By-laws of the
Michigan Bankers Association. It is clear that 125
years ago our predecessors in the banking industry
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discussions regarding the laws which affect the banking
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basic objectives; to exchange views and opinions on
banking matters and to lobby for the industry.
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today as they were 125 years ago. What may seem
surprising, however, is that our struggle to alleviate
the confusion by the general public about the
differences between commercial banks and Wall
Street institutions is not new. One banker and former
legislator commented during an inaugural MBA
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West and the Northwest, and the South and the
Southwest, had come to confound the banks of the
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looked upon a bank and a speculator or railroad
wrecker as being of the same class, with the same
purposes and the same methods, whereas the interests
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foresight of our early Michigan bankers as they
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and work to educate legislators and the public. Our
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idea of these people that it is to the interest of the
banks as a class to clock up money and contract her
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with professional lobbyists who can help us decipher
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www.mibankers.com
Chairman’s Corner
To Prepare for our Future,
Look to the Past
that we be willing to step up and participate by attending
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our legislators is a never ending task that requires the
efforts of a committed and united industry.
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with a senator, a representative or their staff on their
home turf—your community— is unparalleled.
However, hearing from a constituent through a call
or e-mail is still a productive and valuable form of
communication.
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important or urgent matter that will affect our
industy, our business and how we are able to serve
RXUFXVWRPHUV7KHMBA Advocacy Report and
Grassroots News communication provides regular
accounts of pending legislation and what is being
done to support or oppose the proposed law.
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if we are to keep additional burdens from being forced
on our industry. It is our responsibility to inform our
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we should not be regulated out of existence.
When you see a CEO UpdateRU&DSZL]FDOOWR
action from the MBA, please respond and join in the
YRLFHRI 0LFKLJDQEDQNLQJ7KDQN\RXWRWKHVFRUHV
of bankers who have contacted their congressional
delegation. If you have not contacted your legislator
please consider it at the next call to action. Visit
www.mibankers.com and select advocacy and legislative
action.
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and get updated on the latest political activity
affecting our industry and our state, we also urge you
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scheduled throughout the year and around the state.
Check www.mibankers.com/advocacy for dates.
And by the way, in 1887 the MBA annual dues
were $5 per bank regardless of the amount of capital.
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stories of the MBA and early bank members
throughout our 125th year.
7
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Tough Competitors
Ready to Tackle
Today’s Banking Challenges
BUDGET
NOW
to send your team’s top performers
to the Graduate School of Banking
2012 Programs Include:
Graduate School of Banking | August 12-24
at the University of Wisconsin,
Bank Technology Management School | April 22-27
where we’re developing the next
Human Resource Management School | April 15-20
generation of banking leaders.
Senior Management Seminar | August 19-22
At GSB they’ll learn game-winning
strategies from some of the nation’s
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a group of alumni who are among
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Financial Managers School | September 23-28
Online Seminar Series | Ongoing Throughout the Year
Visit gsb.org or call 800-755-6440 to request a catalog or
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our field. Take advantage of GSB’s
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8
EDUCATING
PROFESSIONALS,
CREATING
LEADERS
mbaBanking Magazine January/February 2012
Dennis Koons
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Michigan Bankers
Association
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election with serious, complex and
divisive issues. After two years it
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high unemployment persists more
than at any time in decades. By 2025 spending for
entitlements only and the interest on our massive
national debt will exceed all available federal revenue.
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for nine years, population and income declines
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2011 Michigan gained jobs and we are optimistic
about the future.
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President, a U.S. Senator, 14 members of Congress
(we lost another seat), three Michigan Supreme Court
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Surely we believe compelling issues will dominate
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tells us policies and issues determine election results
less than other factors. I was a very a-political
teenager at MSU when I was abruptly immersed in
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assigned and supervised 300 volunteers at phone
banks and polls. In that race and many more, I
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issues in 10-second sound bites, volunteer
recruitment and leadership, door-to-door, media,
fundraising and campaign mechanics. A few
dependable constants of political mechanics provide
at least as much insight on election outcomes as the
issues of the day:
1. Elections are decided by those who participate.
9RWHVQRWRSLQLRQVFRXQW7KH·SULPDU\SLWWHG
two respected House incumbents against each
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the seat in the general election. Our principal
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minds—it stressed getting our supporters to the
polls. 29% of voters participated in our base
county compared to the 19% state average. A
1,500-vote home-county lead carried our
FDQGLGDWHWRDYRWHRYHUDOOZLQ7XUQRXW
made the difference.
www.mibankers.com
President’s Page
2012 Elections —
Issues and Political Mechanics
2. Primaries determine elections. Voters in 85 to
90% of seats support one major party or the
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Senate, and perhaps 15 state House seats are in
real doubt come November. Sure, upsets happen,
but consistently these patterns hold. See #1:
Very few voters make the most critical selections.
With primary turnout approximating 20%, in a
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fewer will routinely nominate the favorite for
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3. Incumbents win. One could bet blindly on
every incumbent seeking re-election and win
90% of the time. 2010 elections brought one of
the largest reversals in Congressional history; the
minority gained 63 seats. Staggering. Yet, even in
that watershed election over 85% of incumbents
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approval numbers for Congress, in 2012 90% of
incumbents will win.
Most eyes will be on the Presidency and whether
voters in seven or eight key states want change. Across
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support, and sprint to the August 7 primaries. All but
one Congressional race in Michigan will feature an
incumbent. Another will match two incumbents in a
primary due to our lost Congressional seat. Only 13
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will be few open seats in the State House.
Our industry both drives and depends upon the
success of our customers, our communities, and our
state. Policies and direction matter. 2012 elections
will shape policy direction for our state. If you wish
to make a difference, please stay engaged. Share your
input, stay aware, stay active, participate. If bankers
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they will make a difference.
9
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Choosing health coverage for small business comes down to one thing: value.
The perfect mix of comprehensive coverage at an affordable price. With Blue Cross
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Contact your trade association or
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Your Association
Exclusively Endorses
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and Blue Shield
the Blue Cross
licensees of
For more information, contact:
MBA Service Corporation
(PSOR\HH%HQHÀWV'HSDUWPHQW
(517) 485-3600
112350ADMC
10
mbaBanking Magazine January/February 2012
John Llewellyn
VP —
Government
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Michigan Bankers
Association
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3 AL (After Lehman). A new
calendar is required for traditional
depository banking. Out with the
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epiphany of traditional depository banking began
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necessary because nothing in depository banking will
ever be the same.
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slowly on the observers — similar to the rise of the
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occurred, a marker was placed in the historical
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would know in the future that change occurred on
day one, year one. As the aftermath of Lehman
Brothers unfolded and demonstrated the economic
uncertainty that ignorant mere earthlings (along with
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7UHDVXUHUV)',&&KDLUPDQDQG2&&276GLUHFWRUV
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blithely went along with their lives, we all awoke to a
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things happening around us. It was like awakening to
discover we were living in a Men In Black movie script
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mind altering event. But there was a problem for the
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of ignorance. Investment bankers and regulators
(parenthesis community above) had tip toed through
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downside counter party risk to discover that massive
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anticipated ginormous and massive losses (we now
use trillions as easily as millions) the currency exchange
and international monetary system would unravel.
Prices of goods and services would implode. Wealth
would vanish as fast as you could say Bear Stern.
Unexpectedly very comfortable people would be
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depository banking. Because the vehicle used by U.S.
Government and the Agencies to repair all the things
www.mibankers.com
Capitol Connection
Banking’s New Calendar
that would be publically disclosed would be called
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traditional depository bank down the street). All the
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non-publicly disclosed measures would be hidden from
the public in off balance sheet or hidden transactions.
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government system by placing the responsibility
where the money could be found: the Bank.
)URPDOOWKLVQHZO\GLVFRYHUHGDZDUHQHVVRI systemic failure repairs needed to be constructed,
blame needed to be assessed, and a new system
constructed to allow the ignorant to return to not
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pen light a more crude form of reconstructed
memory device is used – confusion. As we are all
human a combination of confusion, calming rhetoric,
new constraining laws, and time and distance from
the cataclysmic event will restore the illusion and
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If my story is at all accurate (for it is true - it is a
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banking in Year 3.
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banking and new compliance demands are moving
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active discussion is that banks below a certain
scale will be unable to conform to the demands.
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examination process and new approval processes
are used to review loans currently booked and
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area to provide increased access to credit to
underserved markets as the bank heretofore has
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accuracy and accountability; thereby generating
more conservative results of appraisals. In
consequence persons underwater in their home
values will not be required to have a property
11
Capitol Connection
appraisal in a new HAMP program announced by
President Obama.
and staff it is reported make millions trading on information
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mortgage market, fraught with fraudulent behaviors and
devastating outcomes are also a solution for persons
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average bank education loan was at 3.6%.
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dodge by writing down values of loans and thereby reducing
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examiners. So, Michigan banks face penalties and interest
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Securities problem, clearly states they have no error in the
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Bankers contact the MBA daily with stories of differences
between what regulators say they will do and what regulators
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lessons of loose money and yet the purse strings remain broken.
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)LHOGH[DPLQHUVDUHGU\LQJXSFDSLWDO3ROLF\PDNHUVVWDWHEDQNHUV
should lend aggressively and regulators have silenced the lending
pipeline for many MBA members.
'DLO\RXUSXEOLFSROLF\RIÀFLDOVPDNHVWDWHPHQWVWKDWLJQRUH
WKHOHVVRQVOHDUQHGIURP´UROOLQJWKHGLFHIRUJUHDWHUKRPH
RZQHUVKLSµ866HQDWRUVKDYHVWDWHGWKDWLI SHUVRQVZHUH
required to have 5% down payment on a home mortgage
loan, then only people who could afford a home could get a
mortgage. If that last statement does not confuse you, you are
VWLOOLQ$'%XWLI \RXDUHEHIXGGOHGDQGEHZLOGHUHGE\
this and other confusions in traditional depository banking
and lending created by the government regulators and policy
makers, then welcome to year 3 AL.
You’ve got a partner. Your MSHDA.
Preventing foreclosure?
We help.
Resurrecting Main Streets?
We’re there.
Fixing up the neighborhood?
Call us.
Helping to build affordable housing?
We’re on it.
michigan.gov/mshda
12
We’re working to make Michigan vibrant, by utilizing cutting edge
housing and community programs and providing sound advice.
If you’re interested in improving your home, neighborhood or
community, you’ve got a partner. Your MSHDA.
TTY 800.382.4568
Equal Housing Employer/Lender
mbaBanking Magazine January/February 2012
Insuring
Your
Future
Banks looking to replace
lost revenue sources and
increase customer service
should seriously consider
owning their own title
insurance agency.
by Carla Kalogeridis
www.mibankers.com
13
*UDQG5DSLGVEDVHG8QLWHG%DQNRI 0LFKLJDQ
ZDVRQHRI WKHÀUVW0LFKLJDQEDQNVWRWHVWWKH
waters on what 15 years ago was quite a risky
LGHD´0%$KDGGRQHDJUHDWMREFUHDWLQJDQ
environment where its members could gain
additional revenue by setting up their own title
LQVXUDQFHDJHQF\µUHFDOOV&\QWKLD/RZPDQ
president of United Bank Mortgage Corporation
8%0&´%XWDVDPRUWJDJHOHQGHUZHZHUH
nervous. We had great relationships with the title
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to mess that up by pulling our business from
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´,WZDVDPDQDJHPHQWOHYHOGHFLVLRQµVKHVD\V
´:HGHFLGHGLWMXVWPDGHDORWRI VHQVHIRUXVWR
EHQHÀWIURPRXURZQDJHQF\µ
8%0&·VLQLWLDOZRUULHVSURYHGSURSKHWLF´:H
GLGDOLHQDWHWKRVHORFDOWLWOHFRPSDQLHVµ/RZPDQ
VD\V´%DFNWKHQEDQNVGLGPRUWJDJHVDQGWLWOH
FRPSDQLHVGLGWLWOHV7KHÀUVWFRXSOHRI \HDUV
were rough because we had to learn the business.
Title Insurance Program
%DQN%HQHÀWVDQG52,
‡0%$SURYLGHVDWXUQNH\RSHUDWLRQLQFOXGLQJGHYHORSLQJ
and managing every aspect of the agency.
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GRFXPHQWVDQGÀOLQJV
‡7KH0%$SURJUDPLVWKHRQO\RQHZKHUHEDQNVDUH
percent owners of the agency.
‡2ZQLQJDQDJHQF\LVYHU\OLWWOHZRUNIRUWKHEDQN
‡Regular board meetings provide consistent communication,
discuss current and future aspects of the business and
obtain direction from the bank owners.
‡0%$PDQDJHVDOOUHODWLRQVKLSVDQGWKLUGSDUW\
contracts with underwriters, searchers and witness
closers.
‡'LYLGHQGVDQGFRPPLVVLRQVDUHSDLGTXDUWHUO\0RQWKO\
reports are provided to agency owners, including
Outstanding Final Policy Report, a report showing
business provided by each lender, and all relevant
ÀQDQFLDOVWDWHPHQWV
‡$JHQFLHVDUHDXGLWHGUHJXODUO\
14
´%XWZHDOVRLPSURYHGWXUQDURXQGWLPHVIRU
our customers and created a solid new revenue
VWUHDPIRU8%0&µVKHSRLQWVRXW:DVLWWKH
ULJKWGHFLVLRQLQWKHORQJUXQ")LIWHHQ\HDUVODWHU
Lowman can answer, unequivocally, yes. MBA
UHQWHGVSDFHLQ8%0&·VEXLOGLQJIRUWKHQHZWLWOH
company managed by MBA and owned by UBMC
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JURZLQWRDJUHDWWLWOHFRPSDQ\µ
7RGD\VL[VLPLODUDJHQFLHVDUHPDQDJHGE\
MBA, and more than 50 bank members hold an
ownership interest in one of the agencies. An
agency can be owned by anywhere from one to
EDQNV6LQFHWKHSURJUDP·VLQFHSWLRQLQ
the agencies have returned more than $10 million
to the bank owners. A bank-owned agency does
not save a bank money on fees because the
premium charges are regulated by the state.
5DWKHU0%$VD\VPHPEHUVVKRXOGWKLQNRI WKHLU
ownership in an agency as an investment because
they get dividends back and great service.
5HPDUNDEO\WKHPHPEHUEDQNVRZQ
SHUFHQWRI WKHDJHQFLHVDIHDWXUHRI 0%$·V
program that sets it apart from other entities. As
the manager, MBA is independent and
accountable because it holds no ownership in the
agencies it manages.
´7KHSXUSRVHRI 0%$6HUYLFH&RUSRUDWLRQ·V
7LWOH,QVXUDQFH'LYLVLRQLVWRHQVXUHWKHVXFFHVV
RI EDQNRZQHGWLWOHLQVXUDQFHDJHQFLHVµVD\V
'HEELH+DXJKWYLFHSUHVLGHQWRI 0%$·V7LWOH
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companies to provide a high return on
investment by monitoring and controlling
H[SHQVHVDQGÀJXULQJRXWZD\VWRLQFUHDVH
business by adjusting the program and increasing
YROXPHE\H[SDQGLQJWKHSURJUDPµ
Haught says service is the integral part of
0%$·VUROHLQWKHDJHQFLHV´:HUHWDLQKLJKO\
experienced staff, establish best practices and
procedures, and manage the relationships with
the underwriter to service the customers at the
KLJKHVWOHYHOSRVVLEOHµ´7KHVHUYLFHTXDOLW\LV
VHFRQGWRQRQHµFRQÀUPV/RZPDQ´6WLOO\RX
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involved you are, the more ownership revenue
\RXZLOOHQMR\µ
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been hired as a manager, making the insurance
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the title insurance agency program is fairly unique
mbaBanking Magazine January/February 2012
WR0%$´2WKHUVWDWHEDQNLQJDVVRFLDWLRQVDQG
RWKHURUJDQL]DWLRQVKDYHORRNHGLQWRRXU
SURJUDPEXWKDYHQ·WJRQHIRUZDUG\HWµVKHVD\V
´,W·VYHU\FRQIXVLQJXQOHVV\RXKDYHVRPHRQHRQ
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Now More than Ever
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&RXQW\%DQN7UXVWVD\VKLVEDQNLVDORQJ
time participant in the MBA title insurance
program, having invested in it since its inception.
´:HJRWLQLWWRLQFUHDVHRXUQRQLQWHUHVWUHYHQXH
DQGLWKDVH[FHHGHGRXUH[SHFWDWLRQV:H·YHGRQH
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With banks losing some traditional sources of
income due to regulatory changes, Haught says
MBA is stepping up its effort to communicate
the value of the title insurance company
SURJUDPWRLWVPHPEHUV´7KLV0%$SURJUDPLVD
great way for our member banks to gain nonGHSRVLWRU\LQFRPHµVD\V+DXJKWZKRKDV
years of experience in the title insurance
EXVLQHVV´,W·VRQHRI PDQ\ZD\VWKDW0%$LV
ORRNLQJRXWIRURXUPHPEHUV·EHVWLQWHUHVWVµ
Haught agrees with Lowman that just about
the only drawback to the program is if the bank
has a close relationship with a title agency in its
FRPPXQLW\DQGLWGRHVQ·WZDQWWRMHRSDUGL]HWKDW
depository relationship with the bank.
´6RPHWLPHVWKHSUHVVXUHRI DORFDODJHQF\
UHODWLRQVKLSLVDGHWHUUHQWµDGPLWV+DXJKW´%XW
sometimes the bank can own a smaller interest in
one of the multiple bank-owned agencies and
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addition, if a bank does not want to own an
interest in an agency, the agencies can still
VHUYLFHWKHEDQN·VWLWOHQHHGVRXWVLGHWKHLU
immediate community. We insure real property
WKURXJKRXW0LFKLJDQ:LVFRQVLQDQG,QGLDQDµ
´7LWOHFRPSDQ\UHODWLRQVKLSVFDQEHSUREOHPDWLFµ
VD\V&DG\´EHFDXVH\RXQHHGWRVHQGPRUHRUDOO
of your business to your MBA title company. We
did lose a title insurance company depository
account when we started our own agency, but it
ZDVLQRXUFXVWRPHUV·EHVWLQWHUHVWµ
Haught says that if a member bank takes a
JRRGORRNDWWKHSURJUDPLW·VXVXDOO\TXLWHFOHDU
WKDWWKHEHQHÀWVIDURXWZHLJKDQ\GUDZEDFNVVHH
VLGHEDU´7LWOH,QVXUDQFH3URJUDP%DQN%HQHÀWV
DQG52,µ,QDGGLWLRQDVPRUHEDQNVMRLQWKH
program, all enjoy a reduced cost of producing
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www.mibankers.com
result, experience a higher return on investment.
In addition, MBA provides thorough lender
training with the thought that by educating the
users of the agency, the agency will be more
HIÀFLHQWDQGWKHEDQNLVSURWHFWHGIURPSRWHQWLDO
claims. MBA provides yearly User Group
Meetings at the MBA location and Mini-User
Group meetings at bank locations.
´7KH8VHU*URXSVDUHHIIHFWLYHµVD\V/RZPDQ
´:HVHQGHPSOR\HHVHYHU\\HDUµ&DG\DJUHHV
WKDWWKHXVHUJURXSWUDLQLQJVKDYHEHHQ´KHOSIXO
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staff at some time or another because there is a
constant need for training due to laws changing
and employee turnover.
In addition to the training, Lowman
recommends that a bank stays involved and
thinks of itself as a business partner in the
DJHQF\´0%$GRHVWKHPDQDJHPHQWIRU\RX
EXWZHVWLOOKDYHWRSD\WKHELOOV(YHU\RZQHU
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non-interest revenue, dividends, and premium
sharing is reason alone to join the program. If
your bank writes any mortgages at all, this
SURJUDPLVZRUWKZKLOH7KH52,KDVJUHDWO\
exceeded what we expected, and we are very,
YHU\SOHDVHGµ
Carla Kalogeridis is a contributing editor to mbaBanking magazine.
5HDG\WR*HW6WDUWHG"
5HTXHVWDFRPSOHWHLQIRUPDWLRQDOSDFNHW
from Debbie Haught at (517) 342-9081 or by
email at [email protected]. Haught
can also provide a more in-depth look at the
SURJUDPDQGFDQGLVFXVVWKHEHQHÀWVIRU\RXU
particular bank.
15
What the New
Census Means
to Your
Business,
Today &
Tomorrow
by Kelly McDonald, McDonald Marketing
If you could grow your business simply by marketing to your
existing customers, making money would be a cakewalk. But to
JHQHUDWHQHZUHYHQXH\RXKDYHWRZLQRYHUWKHFXVWRPHUV\RX·UH
notJHWWLQJ:KRDUHWKHVHP\VWHU\FXVWRPHUV"+RZDUHWKH\
GLIIHUHQWIURP\RXUFXUUHQWFOLHQWHOH"0RVWLPSRUWDQWO\KRZGR
\RXIRUJHDERQGZLWKWKHPDFURVVWKHLUGLIIHUHQFHV")RUJHW´VSUD\
DQGSUD\µSURPRWLRQ,W·VWLPHWRQDUURZFDVWJHWWRNQRZDQG
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UHVHDUFKQHZFXVWRPHUVHJPHQWVDQGOHDUQZKDWWKH\QHHG7KHQ
modify your product offerings to communicate that you value that
customer. You say to them, “I see you, I value you, and I want you. I’m
putting out this welcome mat just for you.”
7KHPDUNHWLQJHQYLURQPHQWKDVEHFRPHPRUHFRPSOH[DQG
consumers have become more sophisticated. No longer does the
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message out there as broadly as possible and hoping it will hit a
PDMRULW\RI \RXUSURVSHFWV:KDW·VFKDQJHG"0DQ\WKLQJVEXWD
key one is the massive shifts in U.S. demographics.
16
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QRW:KLWH2QHLQVL[RI XVDUH+LVSDQLF$PRQJFKLOGUHQLW·VRQH
in four.%ODFNVDUHPRYLQJWRVXEXUEVDWDSDFHWKDW·VQHYHUEHHQVHHQ
before. And rural counties are losing population to metropolitan areas.
And while the 2010 Census was much, much shorter than
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ODQJXDJHGR\RXVSHDNDWKRPH"·ZHPDUNHWHUVORYHGWKDWRQHLW
still paints a portrait of just how different our country is from a
decade ago.
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days. One of the fastest and most effective ways to increase business
is by targeting market segments based upon our differences, rather
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thinking, wherein you target a group based upon commonalities.
But I believe the better approach is to market to what makes a
mbaBanking Magazine January/February 2012
group unique and different. When you focus on what makes
VRPHRQHWKHLQGLYLGXDOWKDWWKH\DUHLW·VXVXDOO\OHVVDERXWWKH
color of their skin or their age and more about their values. Our
values point to what our priorities are and that almost always points
to where the money is.
7KLVLVZKHUH“marketing to people who are not like you” comes in.
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UDFLDOGLYHUVLW\'LYHUVLW\FRPHVLQPDQ\IRUPVJHQGHUUDFHDJH
lifestage, language preference, sexuality and hobbies or special
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UHFRJQL]LQJWKHVHGLIIHUHQFHVDQGWDLORULQJ\RXUSURGXFWPHVVDJH
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validating the importance of a consumer group.
Let me give you an example.
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Consider this: there are more Latinos living in the United States than there
are Canadians in Canada.7KHRWKHUSLHFHRI WKLVQHZVZDVMXVWKRZ
much the Hispanic population has spread out and migrated
throughout the country. A decade ago, more than 65% of Hispanics
LQWKH86OLYHGLQ&DOLIRUQLDDQG7H[DV7RGD\WKDWSHUFHQWDJHKDV
dropped to 61%, despite the growth of the population numbers.
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experienced profound, rapid growth of the Hispanic population.
And now there are entire communities that have a robust Hispanic
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years ago.
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re-thinking your overall marketing strategy to include Hispanic
consumers at every checkpoint in the purchase process.
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years (up from 38 a decade ago). And the birth rate among younger
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continue to grow older and grayer as a total population. What does
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marketing may need to evolve over the next decade to continue to
be relevant to an aging customer.
6XSSRVH\RX·UHWKHPDUNHWLQJGLUHFWRUIRUDORFDOEDQN$QG
VXSSRVH\RXUFRUHJURXSRI FXVWRPHUVLV%DE\%RRPHUV7KH\·UH
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about the health of their investment portfolios, and you have
products and services to meet their needs), you see the population
aging around you.
7RFRQWLQXHWRVWD\UHOHYDQWWRWKLVJURXS\RXPD\QHHGWRWDNH
it a step further. It may mean accommodating the physically
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www.mibankers.com
Bank also provides agreements, checks and other documents in
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When you focus on a potential customer who is not like you, you
will uncover new customers, new ideas and even new products and
services that will help you grow your business.
7KH&HQVXVLVDJLIWWKDWFRPHVWRXVRQO\RQFHHYHU\WHQ
\HDUV7KLVJLIWLVQRZXSRQ\RXUGRRUVWHS%HFRPHIDPLOLDUZLWK
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LPSOLFDWLRQVLWKDVIRU\RXUEDQNDQG\RXULQGXVWU\7KH&HQVXV
provides a wealth of information that you can couple with
FRQVXPHULQVLJKWV,W·VIUHHUHVHDUFK$QGLW·VWHOOLQJXVVRPHWKLQJ
very important: that we are, as a nation, becoming less of a
homogenous group of people. We are, in fact, becoming many,
many diverse groups of people. Learning how to market to people
ZKRDUHQRWOLNH\RXZLOOKHOS\RXJURZ\RXUEXVLQHVV\RXUSURÀWV
and your customer loyalty.
By thinking about differences, identifying new key target groups
and digging deep into the hearts and minds of these individuals,
you can uncover their values, and that, in turn, will lead you to how
to market effectively to them. It is no longer about mass marketing.
,W·VDERXWPLFURPDUNHWLQJDQGPDUNHWLQJWRSHRSOHZKRDUHnot like
you.([SDQG\RXUWKLQNLQJWRIRFXVRQGLIIHUHQFHVDQG\RXZLOO
most certainly expand your business.
,QP\VHVVLRQDWWKHXSFRPLQJ0%$%(67FRQIHUHQFHLQ$SULO
,·OOVKRZ\RXKRZWRXVHWKLVLQIRUPDWLRQWRSUHSDUH\RXUEDQNIRU
WKHFXVWRPHURI WRGD\²DQGWRPRUURZ6HH\RXRQ$SULO
Kelly McDonald is a nationally recognized marketing expert, with deep specialization
in multicultural and diversity marketing. She works with clients such as Toyota,
Harley-Davidson, Sherwin-Williams, State Farm and Miller/Coors.
Kelly is the author of “How to Market to People Not Like You” and has been
featured on CNBC, in BusinessWeek, on CNNMoney.com and on Sirius/XM
Radio. Her company, McDonald Marketing, has twice been named one of the top
advertising agencies in the U.S. by Advertising Age magazine.
)LYH5HDVRQV<RX0XVW$WWHQG%(67
CONNECT Networking opportunities galore.
LEARN Nearly 60 sessions. Complete your
FRQWLQXLQJHGXFDWLRQUHTXLUHPHQWV
DO BUSINESS Find a cool new product or service.
RE-ENERGIZE A change of scenery and pace is good.
It helps you refocus.
HAVE FUN Wine tour, themed reception planned,
golf or head to the spa.
We look forward to seeing you in beautiful
Traverse City, Michigan. For more information
visit http://bit.ly/BEST2012.
17
18
mbaBanking Magazine January/February 2012
MEDC and MBA team up
to certify banks for
MEDC Loans
mBank offers lending success story
Michigan banks now have access to a $79.1 million revolving fund of easy government loan supports.
Access to capital funding is available through new opportunities
for small businesses in Michigan so they can grow and diversify.
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nation to win approval of approximately $79.1 million in federal
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Michigan Collateral Support and Michigan Loan Participation
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efforts.
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developing and encouraging programs to assist and stimulate
private lending markets. While the initial programs funded only
auto-related businesses, bankers represented the MBA at meetings
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collateral lending programs and open them to all eligible businesses.
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state banking associations across the country.
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program which will allocate $1.5 billion across all 50 states to
support small business funding.
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played an instrumental and lead role in staving off the permanent
closure of Manistique Papers, Inc., a 90-year old paper mill
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second largest private employer. A closure would have devastated
the local economy and hundreds of direct manufacturing and
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www.mibankers.com
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non-local bank to purchase the senior secured debt at a discount
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in its current Chapter 11 process they also provided additional
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arrangement.
With mBank as the lead, the bank was supported in these
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mill reopened less than six weeks after its closure in mid-August
and days away from a complete liquidation in bankruptcy. mBank
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SURYLGHWKHÀQDQFLDOVXSSRUWDQGH[SHUWLVHWRDYLWDOPHPEHURI our local community to save hundreds of jobs and to help
rehabilitate the paper mill, a long standing member of our
business community. I believe that this is the essence of real
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expertise to foster economic development in order to preserve
and create employment opportunities, keeping our communities
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/DVW2FWREHUÀIW\EDQNHUVUHFHLYHGWKHLU0LFKLJDQ%DQNHUV
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ZLWKWKHSURJUDP6XFFHVVIXOFXVWRPHUVDOVRRIIHUHGÀUVWKDQG
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review and approval process since requests submitted by
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with the programs and ready to access this funding. Banker
WUDLQLQJZDVKHOG-DQXDU\LQ0DUTXHWWHDQGDGGLWLRQDOWUDLQLQJ
is expected to be scheduled for 2012.
19
Education Highlights
MBA Bank Management & Directors Conference
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*UDQG5DSLGV1RY'HFERDVWHGDUREXVWDWWHQGDQFHDV
EDQNHUVKHDUGIURP3DXO7UDXE&KLFDJR)HGHUDO5HVHUYH
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Michigan economic statistics with the national numbers. According
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Michigan ranked number two in the country as a positive state
for business development.
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the facts on troubled credit unions and outlined what to expect
next year in terms of credit unions and business lending. He
also encouraged bankers to attend the ABA Government
5HODWLRQV6XPPLWRQ0DUFKWKHVDPHWLPH&81$·V
government affairs conference is happening. About 4,000 credit
XQLRQRIÀFLDOVDUHH[SHFWHGWREHLQDWWHQGDQFH
'DYLG.HPS·VSRSXODULeadership to Maximize Bank Performance
presentation was extremely timely illustrating what efforts will
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WRSLFVLQFOXGHGD'RGG)UDQN&)3%8SGDWHDQH[SODQDWLRQ
RI LQWHUQHWDQGVRFLDOPHGLDIUDXGVFKHPHVDQG-RKQ'RQQHOO\·V
How to Market your Stock.
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David Ramaker, Bob Chapman, Tim Doyle, Gov. Snyder, Dennis Koons, Craig Kus and Debbie Smith-Olson at the Economic Impact Award presentation.
20
mbaBanking Magazine January/February 2012
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becomes a win-win for everyone involved with talent retention
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Education Highlights
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supports legislation and policies that foster a strong, competitive
and safe banking industry in Michigan and supports efforts to
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the Governor has eliminated the job killing Michigan Business
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local government reforms, and he balanced the budget without
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He accepted the award and joked about how when he gets
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consider helping keep talent in Michigan. He introduced
bankers to www.mitalent.org and urged us to register our
institutions as businesses willing to hire in Michigan and to
Bankers Andrew Martin, Lisa Haines,
Jennifer Hogan and Aaron Meinhold
promoted the exciting changes to
MBA Perry Schools of Banking being
held May 20-25, 2012 at the MSU
Kellog Hotel & Conference Center.
www.mibankers.com
21
Education Highlights
The Digital Beyond: Estate Planning
Considerations for Digital Assets
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held October 11-13, 2011 in Ann Arbor, Michigan, hosted
VSHDNHU&KULV'HODQH\93+LJK1HW:RUWK3ODQQLQJ5%&
'RPLQLRQ6HFXULWLHV'HODQH\H[SUHVVHGWKHLPSRUWDQFHRI knowing social media and the Internet, no longer frontier
issues for estate planners. Many of the assets in the digital
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your client needs a will prepared or dies, will you be ready to
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Are youDZDUHRI WKHVFRSHRI \RXUFOLHQW·V'LJLWDO)RRWSULQW"
‡ 6RFLDO0HGLD$FFRXQWV²)DFHERRN7ZLWWHU
MySpace, LinkedIn
‡ *DPLQJ$FFRXQWV²6HFRQG/LIH&DVLQRV
‡ (PDLO$FFRXQWV
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Get your client thinking about their digital presence as they
would any other assets like money or real estate. What is the
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DWGHDWKRULQFDSDFLW\"2QZKDWWHUPVDQGIRUZKDWSXUSRVHV"
+RZGR\RXPDLQWDLQWKHLUGLJLWDOIRRWSULQW"'HWHUPLQHDQG
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about how they would like their heirs to deal with these assets
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6HSDUDWHPHPRUDQGXPRI DFFRXQWV"%LQGLQJRUQRQELQGLQJ"
'LJLWDOSURSHUW\QHHGVWREHFOHDUO\GRFXPHQWHGLQDZLOORU
trust and these documents may be needed to identify and
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online accounts can be extremely problematic and may require
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be stored in a safe place or held by an attorney, family member
or trusted friend.
Seen that?
97% of our clients say that the CPAs and
consultants of Plante Moran are proactive to
their needs. Providing technical know-how with
fresh insights to ensure you don’t get burned is
a higher return on experience.
Contact:
Brian Pollice, Audit, 248.375.7342
Mariann Krieger, Tax, 248.375.7220
Mike Stearns, Risk Management, 269.998.9023
Jon Chism, SEC Specialist, 616.643.4023
Raj Patel, Technology, 248.223.3428
plantemoran.com
22
mbaBanking Magazine January/February 2012
7KHVFKRROLVRIIHUHGHDFK0D\IRURQHZHHNRYHUDWKUHH\HDU
period. Students also are expected to complete four correspondence
assignments to reinforce the concepts learned. Cases involve
EDQNÀQDQFLDODQDO\VLVWHFKQRORJ\EDQNPDUNHWLQJDQGDVVHW
liability management.
Applicants must be employed as a staff member of a MBA
member bank, an associate member or a bank regulator. A college
degree or a high school diploma and two years banking experience
and a recommendation from senior management is required.
A full one year scholarship valued at $990 is available and
goes to a selected MBA member bank employee entering their
ÀUVW\HDUDWWKH0%$6FKRRO7KHGHDGOLQHWRDSSO\IRUWKH
scholarship is April 1, 2012. Please visit http://bit.ly/mbaperry
for more information.
Education Highlights
MBA Perry Schools of Banking
Perry alumnus, Andrew Martin, Isabella
Bank, Perry Class of 2010:
“The MBA Perry Schools of Banking afforded me a tremendous
opportunity to improve my skill set and thereby my bank’s operations
through a practical, high impact curriculum on all of the functional
areas in banking. This curriculum, which was delivered by industry and
educationally prominent faculty, addressed today’s key issues in the
competitive marketplace, as well as, provided historically effective
Congratulations to our MBA Perry 2011 graduating class!
practices, with strategic take-a-ways, that has helped improve my
MBA is excited to announce the new location, dates and
organizations, effectiveness through new ideas. Equally as important as
comprehensive curriculum for the MBA Perry Schools of
the education, the MBA Perry Schools of Banking opened up a vast
%DQNLQJ0D\0LFKLJDQ6WDWH8QLYHUVLW\(DVW
network of peers, professionals and resources that can be called upon for
/DQVLQJ7KHFXUULFXOXPKDVEHHQHQKDQFHGWREHWWHUPHHWWKH problem solving purposes. Finally, the MBA Perry Schools of Banking
changing banking environment.
has implored me to become involved in my community, industry
7KH0%$3HUU\6FKRROVRI %DQNLQJDUHGHVLJQHGWRSURYLGH committees and political initiatives by cultivating leadership,
EDQNHUVZLWKWKHVSHFLÀFVNLOOVQHHGHGWRPDQDJHWKHIXQFWLRQDO communication and critical thinking skills.
areas of banking, as well as develop the ability to problem solve,
I would encourage anyone who is interested in developing their career,
ZRUNLQWHDPVDQGPDNHGHFLVLRQVLQDPDQDJHULDOVHWWLQJ7KH another’s career or improving their bank’s practices through exposure to
FRUHFXUULFXOXPDOVRFUHDWHVDQXQGHUVWDQGLQJRI KRZEDQNVÀW different perspectives to attend.”
ZLWKLQWKHÀQDQFLDOVHUYLFHVLQGXVWU\
3
10
14
15
How to Effectively Manage Your Foreclosures . . . . . .
Directors Responsibilities and Liabilities . . . . . . . . .
Getting to the Numbers: Financial Statement Analysis
Getting the Cash Back: Cash Flow Essentials . . . . . . .
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Lansing
Lansing
Lansing
Lansing
Mortgage Loan Boot Camp . . . . . . . . . . . . . . . . . . . . . . . . . .
CRA Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Today’s Community Banking Model - There Is No Normal Anymore
Leadership Skills – Class I and March 27 Class II . . . . . . . . . . . .
Reinventing A/L Management In Challenging Times —
Making It Make Sense And Make Money . . . . . . . . . . . . . . . . .
30 Call Report: Revisions, Updates, Critical Issues, etc . . . . . . . . .
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Lansing
Lansing
Lansing
Lansing
March
14 & 15
20
22
26
28
www.mibankers.com
Education Calendar
February
. . . . . . . . . Lansing
. . . . . . . . . Lansing
23
Community Outreach
24
Honor Bank Fights Hunger
Teamwork, dedication, hard-work, enthusiasm and community involvement
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7KLVSDVWIDOO+RQRU%DQN·VQLQHEUDQFKHVLQQRUWKHUQ
Michigan collected more than 6,000 pounds of food and
raised more than $6,800 for the local food pantries in their
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internally to collect food and raise money for food pantries.
Since 2004, Honor Bank has raised a total of 49,941 pounds
of food and $46, 580.44.
7RKHOSOHDGWKLVVXFFHVVIXOGULYH+RQRUEDQNVHWXSD
committee consisting of a representative from each branch.
'L[LH/DJHUTXLVW+RHK%HDU/DNHEUDQFKPDQDJHUKHDGVXS
the committee and said her favorite part of the project is
seeing the participation and enthusiasm of all the branches
working together while also having the chance to see the
direct impact on the community.
Lagerquist-Hoeh explained that the drive has evolved from
collecting food and cash from their employees to engaging
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have also built partnerships with local customers, schools and
businesses to help collect food and raise money. Some of the
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addition, branches held bake sales, candy bar sales, pumpkin
carving contests, sold paper signs for customers to buy and
put their names on them to display in their bank to help raise
money.
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DEOHWREHQHÀWIURP+RQRU%DQN·VGULYH7KH\LQFOXGH%HQ]LH
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Kingsley United Methodist Church, Mesick United Methodist
&KXUFK0HVLFN)UHH0HWKRGLVW&KXUFK8QLWHG0HWKRGLVW
Church of Lake Ann, Manistee County Council on Aging,
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and Lakeview church of the Brethren.
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delivering the food
and that they are
thrilled to be helping
the community.
mbaBanking Magazine January/February 2012
By Norbert F. Kugele, Partner, Warner Norcross & Judd LLP
Although commonly referred to as health care reform, the
Affordable Care Act is primarily about insurance reform.
Highlights of the Act, as they impact employer-sponsored
group health plans, are discussed below.
Group Health Plan Mandates and
Grandfathering
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WKDWZHQWLQWRHIIHFWVWDUWLQJLQODWH7KHVHPDQGDWHV
included coverage for young adults, 100% coverage for preventive
health services, prohibitions on lifetime limits, external reviews
for claims appeals, and the phase-out of annual limits.
Plans existing before passage of the Act could claim
grandfathered status and avoid some of these requirements.
Maintaining grandfathered status, however, locks the plan into
a fairly rigid structure that prohibits the employer from passing
on most cost increases to employees while at the same time
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employersJHQHUDOO\GHVLUHPRUHÁH[LELOLW\LQPDQDJLQJ
year-to-year cost increases, most employers have either given
up grandfathered status or plan to do so soon.
Other Changes for 2012 and 2013
2014: Individual Mandates, Health Plan
Exchanges and Employer Responsibility
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insurance market reforms go into effect. Most Americans will
then become subject to a penalty (referred to as the individual
mandate) if they do not carry health insurance coverage. Health
insurance exchanges will start operating by then, where individuals
and small employers can purchase insurance policies. Individuals
below a certain income threshold (400% of the poverty line)
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and reduced cost sharing.
www.mibankers.com
Legal and Political Challenges
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OHJDOFKDOOHQJHV7KH866XSUHPH&RXUWLVWDNLQJXSWKHFDVH
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law is valid.
2012 is also an election year. Changes in the White House or
in Congress could result in new health care reform legislation.
While its probably too late to roll back some of the changes, its
certainly possible that we may see new reforms.
MBA Service Corporation, in partnership with Warner Norcross & Judd LLP,
strives to keep member banks informed on the changing landscape of the medical
marketplace. This article provides a brief overview of the Affordable Care Act
and explains what’s still to come in the near future. – Joellen Wright, CEBS,
0%$6&9LFH3UHVLGHQW,QVXUDQFHDQG(PSOR\HH%HQHÀWV
0%$&HUWLÀFDWLRQ3URJUDPV
Head Teller:
Session I: Feb. 21 . . . . . . . . . . Lansing
Session II: Nov. 12 . . . . . . . . . Lansing
Session III: Nov. 13 . . . . . . . . . Lansing
Education Calendar
5HIRUPVFRQWLQXHWRUROORXWRYHUWKHQH[WFRXSOHRI \HDUV
LQFOXGLQJDSDJHVXPPDU\RI EHQHÀWVDQGFRYHUDJHWRGHVFULEH
key terms of the plan; automatic enrollment requirements; and
W-2 reporting of health plan costs. Insured plans will also
become subject to nondiscrimination rules similar to those that
already apply to self-insured plans—though this has been
WHPSRUDULO\GHOD\HGZKLOHWKH,56GHYHORSVJXLGDQFH7RPDNH
complying with the nondiscrimination requirements easier,
smaller employers will be able to implement Simple Cafeteria
Plans, which have streamlined nondiscrimination requirements.
(PSOR\HUVZLWKPRUHWKDQIXOOWLPHHTXLYDOHQWHPSOR\HHV
will also become subject to penalties if they do not offer health
insurance to their full-time employees (working 30 hours or
more per week) or if the cost of the insurance in unaffordable
WKHHPSOR\HH·VFRQWULEXWLRQLVPRUHWKDQRI KRXVHKROG
income). Some studies suggest that employers will stop offering
health plans to their employees, but many other studies indicate
that employers will continue to offer health coverage because
this will be more valuable to their employees than additional
compensation.
Insurance Corner
The Affordable Care Act and Employers:
Where We’ve Been and Where We’re Going
Branch Manager:
Session I: Feb. 22 . . . . . . . . . . Lansing
Sessipn II: Feb. 23 . . . . . . . . . Lansing
Session III: Nov. 14 . . . . . . . . . Lansing
Session IV: Nov. 15 . . . . . . . . . Lansing
25
MBASC Products in the News
ICS, A New Savings Product Providing Michigan
Banks With A Competitive Edge
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FRQWLQXHWRKDYHDPDMRULPSDFWLQWKHÀQDQFLDOPDUNHWSODFH
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investments is strong and will likely remain so for the
foreseeable future.
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in place regulations that will give some depositors extra
protection through 2012. Under its new rules, through
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insurance coverage for certain qualifying noninterest-bearing
transaction accounts, including noninterest-bearing traditional
checking accounts. But in order to take advantage of this
protection, a safety-conscious investor has to choose to keep
money in an account that does not earn any interest.
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Promontory Network can offer their customers an alternative
— ICS, a savings product that provides access to multi-millionGROODU)',&LQVXUDQFHDQGLQWHUHVW
8VLQJ3URPRQWRU\·VQHZ,&6RU,QVXUHG&DVK6ZHHSVHUYLFH
EDQNVFDQSURYLGHDVDYLQJVSURGXFWWREXVLQHVVHVQRQSURÀWV
and many other large-dollar depositors, and can keep the full
amount of deposits on balance sheet through a true reciprocal
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from a transaction account at their relationship institution into
interest-bearing savings accounts (money market deposit
accounts) at multiple banks. And each relationship bank maintains
full control over its customer relationships and sets the rates it
offers to customers for funds placed through the service.
ICS is a new tool that can help Michigan banks to compete
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enables participating banks to compete on dimensions other
than price – in particular, by featuring access to a level of
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its own.
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take care of their most valuable customers. With ICS, banks
can offer large-dollar depositors, such as businesses and public
funds (in states that permit the use of the service) all these
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multiple monthly program withdrawals. And unlike money
market mutual fund sweeps and short-term bond funds, ICS
lets banks keep the full amount of customer funds on their
balance sheets. Additionally, when customers adhere to program
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WUDFNLQJEXUGHQVDVVRFLDWHGZLWKUHSRVZHHSVDQGFROODWHUDOL]HG
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DQGWKHFXVWRPHU·VSHUVSHFWLYHV
All of this makes ICS the most convenient deposit sweep
service. If you want to learn more about this great new service,
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FRQWDFW6WHYH'DYLVDWH[WWROOIUHHRUE\
email at [email protected].
1
Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the
ICS agreements, including the ICS Participating Institution Agreement and the ICS Deposit
Placement Agreement. Limits and customer eligibility criteria apply. Program
withdrawals are limited to six per month.
2
If a depositor is subject to restrictions with respect to the placement of funds in
depository institutions, it is the responsibility of the depositor to determine whether the
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restrictions.
Promontory is an endorsed partner of the MBA Service Corporation. Contact
Matt DeWolf at [email protected] for more information.
26
mbaBanking Magazine January/February 2012
The MBA Board of Directors approved the following associate members.
DLS Servicing Consultants, LLC
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Phone: (616) 570-0199
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Website: www.dls-servicing.com
DLS Servicing Consultants, LLC is a company
that specializes in default outsourcing resources, loss
mitigation reviews, short sales, foreclosure claims
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Michigan Consulting &
Environmental, Inc.
Lisa Campbell
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Mount Pleasant, MI 48858
Phone: (989) 772-2441
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Michigan Consulting & Environmental has been
serving the environment needs for over 20 years.
Specializing in Tank Removal, Underground
Storage Tank Management, Solid Waste and Liquid
Disposal, Environmental Site Assessment Phase I,
Phase II Investigation,
Environmental Restoration,
Baseline Environmental
Assessments (BEA),
Subsurface Investigation,
Risk Assessment,
Emergency Response,
Remediation System &
Design. Years of superior
service, innovative solutions,
and a commitment to both
cost-effective and safety has
allowed Michigan
Consulting &
Environmental direct
involvement in the
improvement and
preservation of the
environment for future
generations.
Michigan Mutual
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Phone: (248) 203-1340
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Website: www.michiganmutual.com
Olejniczak Advisors
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18530 Mack Avenue, Suite 313
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Phone: (586) 854-6184
(PDLOHG#ROHMDGDYLVRUVFRP
Website: www.olejadvisors.com
Myers & Myers, PLLC
Kelly A. Myers
915 North Michigan Avenue, Suite 200
Howell, MI 48843
Phone: (517) 540-1700
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Website: www.myers2law.com
Steven E. Bratschie & Associates, PC
Steven Bratschie
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P.O. Box 8428
Kentwood, MI 49518-8428
Phone: (616) 454-6005
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Website: www.bratschie.com
Michigan Mutual is a company that handles
residential wholesale mortgage banking.
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specializes in corporate and real estate law, with a
focus on commercial lending. Services include
work-outs, loan restructuring, loan enforcement and
documentation.
Anchor the date.
New Associate Members
The MBA Welcomes New Associate Members
Olejniczak Advisors is a transaction advisory,
valuation services and strategic/operational consulting
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Steven E. Bratschie & Associates, PC is a law
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areas such as workouts, reorganizations, liquidations,
foreclosures, documentation and litigation.
BEST
Bankers Education Summit & Trade Show
April 11-13, 2012
Five Reasons You Must Attend BEST 2012:
CONNECT - Networking opportunities galore.
LEARN - Nearly 60 sessions. Complete your continuing education requirements.
DO BUSINESS - Find a cool new product or service.
RE-ENERGIZE - A change of scenery and pace is good. It helps you refocus.
HAVE FUN - Wine tour, themed reception planned, golf or head to the spa.
We l o o k f o r wa r d t o s e e i n g yo u i n b e a u t i f u l Tr a v e r s e C i t y, M i c h i g a n .
For more infor mation visit http://bit.ly/BEST2012
Grand Traverse Resort & Spa
www.mibankers.com
27
Michigan Banks Team With MSHDA to Help
Hardest-Hit Homeowners
The Step Forward program makes it easier than ever for lenders to facilitate
foreclosure prevention for Michigan’s most at-risk residents.
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have never met, but their partnership is paying big dividends for
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7KHWZRDUHZRUNLQJWRJHWKHUWRSUHVHUYHWKHGUHDPRI homeownership and prevent foreclosures for Michigan families.
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that, combined, received more than $7.6 billion from the U.S.
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federal awards cumulatively totaling nearly half a billion dollars.
Michigan, through a collaborative partnership with lenders
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program opportunities:
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saw more and more of our customers having trouble making
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get back to work and back on their feet. We are extremely
pleased with this program and the positive difference it makes
for our customers and communities.
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longer required to submit monthly or quarterly reports as
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assigns one primary contact at the state to work directly with the
who are unemployed;
servicer, and the servicer can call or email that contact directly
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for case inquiries or program questions.
fallen behind in their mortgage payments or taxes due to an
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involuntary hardship, such as a medical emergency; and
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can no longer afford their mortgage payments due to
Coffman said.
reduced income.
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least 49,000 Michigan homeowners avoid foreclosure by 2013.
current loan data only while a homeowner is actively being
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considered or receiving funding from the program. At the end
Web site, www.stepforwardmichigan.org.
of the funding, the data-communication requirement stops for
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that loan.
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OHDGIRU6WHS)RUZDUG0LFKLJDQ´7KDQNVWRWKHHIIRUWVRI we work directly with the homeowner to determine their
lenders throughout Michigan, thousands of Michigan households
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sign up for our monthly trainings and take advantage of the
percent of our applicants are referred directly from their mortgage
marketing material we can provide. After we initially contact a
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lender to advise them that a homeowner is eligible, funding
One of those lenders is Hall, vice president in charge of
occurs in approximately 40 days.
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she said.
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28
mbaBanking Magazine January/February 2012
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program and applauds the efforts to relieve some of the
economic hardship Michigan residents are experiencing,
according to Bob Chapman, immediate past chairman of the
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their homes and are using every option available to assist
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Support and Relationships Are the Key
by Patricia Herndon, MBA Director of Advocacy
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that and implement it every day. Grassroots banker relationships.
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A few quick questions:
1.
Do you know who you elected to represent your
interests in your municipality, in Lansing and in
Washington?
If yes, nice work, please proceed to question #2.
If no, go to http://bit.ly/MBAContactBanker
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nature of that relationship? Do they contact you
when they have questions about banking or other
subject matter?
If yes, wonderful. It is very likely that at least one of
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in the Michigan House and Senate). I am sure that you
are helping to educate them on the plethora of issues
that impact your world on a daily basis. Nearly 1,000 of
the more than 4,000 bills introduced in the last legislative
session were tracked by the MBA. Additionally 400 plus
of those bills were active in one or more MBA
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or experienced legislators.
If no, but you would like to develop relationships,
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phone at (517) 342-9067 or by e-mail at pherndon@
mibankers.com or any of our MBA Grassroots Advocacy
Committee members to learn how to connect.
3.
Is it important to have a good relationship with your
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If yes, (this is a very easy question if you read the yes
response to question 2.)
4.
Is it important to have a working relationship with
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Yes. You get it.
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DQGWKHLUQHHGVEHIRUHDVHULRXVLVVXHDULVHV"<RXNQRZLI they are creditworthy. You know you have worked well
with them in the past.
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Yes, of course. Gold star for you. Preaching to the
choir.
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develop these relationships. With all the legislation and
regulation currently on the radar, it is more important
than ever to build relationships that educate and build
understanding.
Whether you have existing relationships or want to
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through regional grassroots meetings, PAC supported
events and other opportunities. Go to the link below and
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http://bit.ly/MBAGrassroots
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great team at the MBA representing banking interests, there is
no substitute for a policymaker to know their local subject
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process forward in a positive manner. Your voice and your
relationships are that key.
If no, see yes answer on #2.
www.mibankers.com
29
On The Move
Bank has met all of the requirements of
the order.
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was assigned three stars from Bauer
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11th in volume in the state of Michigan
as an SBA Lender and has experienced
extensive growth in the number of
mortgage loans. It is now the third
highest-producing mortgage lender in
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Fifth Third Bank Awards $100,000
to University of Detroit Mercy
In what is seen as yet another sign of
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major grant from the Schell foundation
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interest forgivable loans that students are
encouraged to pay back when they are
able which regenerates the fund for
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Brogan, Abbott, Current Reelected
to SCB Bancorp Board of Directors
Bancorp, Inc., holding company for
Summit Community Bank, announces
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Associates was reelected as Chairman of
the Board.
Rapid Recovery Earns Traverse City
State Bank A 3-Star National Rating
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City State Bank to address several
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relating to asset quality and capital. In a
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30
Special Olympics Midland Presents
Award To Wolverine Bank
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Midland, Mary Adams along with
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Volunteer Coordinator for the annual
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Assistant Manager a plaque for his
participation on behalf of Wolverine
Bank in the annual Special Olympics
Golf Outing.
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Banks has been a major supporter of this
annual fundraising event as a Gold
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raised the most it has ever raised coming
in at nearly $11,000.
Wolverine Bancorp, Inc. Welcomes
Howard Ungerleider to Board of
Directors
Wolverine Bancorp, Inc. announces
the election of Howard Ungerleider to
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Chemical Company, the President of
Scott J. Hinsch, Jr. Joins F & M
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Credit Services, Inc.
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Leadership Committee.
and Mark Yates, Managing Consultant,
Ungerleider has served as Vice
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he was responsible for facilitating
joined the company as the Managing
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Consultant.
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In this role, Ungerleider was responsible
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for creating and driving an investor
joining our company. His work with
outreach program that provided timely,
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of community banks, will bring additional
strategic transformation and performance.
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mbaBanking Magazine January/February 2012
You Can Nominate the Next MBA
Banker of the Year
to the third open Michigan member
director seat.
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Audit Manager. Prior to joining
Macatawa Bank, Pinkster completed her
BBA in Accounting from Western
Michigan University and most recently
completed her MBA at Grand Valley
State University. She is currently involved
with the WMIIA & Association of
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Banker of the Year honors a Michigan
banker and MBA member who
has shown outstanding leadership
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represents the industry, the association
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internally and to the public, media and
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While in the past MBA Perry Board
RI 7UXVWHHVKDVVHOHFWHG%DQNHURI the year, the MBA and Perry boards
have chosen to open nominations to
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year all MBA members are invited to
submit a nomination for MBA Banker
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by the MBA Perry Schools Board of
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selection. Visit www.mibankers.com for a
nomination form.
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directors and thank you to all MBA
bankers who took the time and effort
to support their industry by running for
election to this board.
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Bank of Ann Arbor Team
Bank of Ann Arbor is pleased to
announce the hiring of Sonia S. Patel as
Senior Vice President & Investment
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Patel has worked with M&I
Investment Management Corporation in
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She holds a BBA degree in Marketing,
Management, and International Business
from the University of Wisconsin0DGLVRQDQGHDUQHGDQ06LQ)LQDQFH
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In addition, she holds the Chartered
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Honor Bank’s Norm Plumstead
named a Top 40 Under 40
Honor Bank is proud to announce that
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local business people under age of 40
who are making an impact in the
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honored with this recognition.
Federal Home Loan Bank of
Indianapolis Announces New
Directors
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results of the Michigan election of
member directors and the districtwide election of independent directors
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directors were re-elected in Michigan:
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Pigeon, Michigan, was elected to
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director seat.
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elected to the second open Michigan
member director seat.
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Bank, Mason, Michigan, was elected
www.mibankers.com
On The Move
Erin Pinkster Joins Macatawa
Bank as Audit Manager
Advertisers Index
BCBS . . . . . . . . . . . . . . . . . . 10
Diebold . . . . . . . . . . . . . . . . . . 6
Graduate School Of Banking . . . . 8
Great Lakes Bankers Bank . . . . . 26
Howard & Howard . . . . . . . . . . . 2
MSHDA . . . . . . . . . . . . . . . . . 12
Plante & Moran . . . . . . . . . . . 22
The Payments Authority . . . . . . . 4
Warner, Norcross & Judd . . . Back Cover
31
507 S. Grand Ave.
Lansing, MI 48933