Craig's Blog

Event Sponsored in Part by Farmers State Bank

2012-01-13T13:56:00.000-05:00

An Economic Update from the Federal Reserve

The Federal Reserve has been a central player in the recent US economic developments. The views and decisions of the Federal Reserve have shaped the recent recovery and impacted interest rates and inflation nationwide. Stockbridge Community Education in partnership with Farmers State Bank and the Stockbridge Area Chamber of Commerce is pleased to present an opportunity for an economic update from the Federal Reserve. Come learn the data behind the Fed’s actions, both nationally and for Michigan, specifically, and gain insight into why and how the Fed does what it does to monitor and manage economic factors.

The presenter, Martin Lavelle, is an associate economist in the Research Department at the Federal Reserve Bank of Chicago’s Detroit Branch. His research revolves around the Michigan economy and its impact on the District and national economies. In addition to his Federal Reserve work, Mr. Lavelle teaches managerial economics at the University of Michigan-Dearborn and volunteers with Junior Achievement, teaching high school students about entrepreneurship. Lavelle received his B.S. in Business and M.A. in Economics from Miami University in Oxford, OH.

Wednesday, Feb. 1, 2012
7:00 – 8:30 p.m.
Heritage Elementary School Cafeteria
222 Western Ave., Stockbridge, MI
Refreshments will be provided – there is no charge for this public event.

Grass Lake Community & Cooperative Services Class

2012-01-11T12:01:00.001-05:00

Good $ense Budget Course
Grass Lake High School Library

Presented by:
Craig Goodlock
Chairman and Chief Executive Officer of Farmers State Bank

Six Thursday evenings
Jan. 19 – Feb. 23, 2012
7:00 p.m. to 8:30 p.m.

To register:
Doug Moeckel, Grass Lake Schools Community & Cooperative Services
Ph: 517-522-5544
dmoeckel@grasslakeschools.com

Workbook fee: $15.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:

 Prioritize financial goals
 Develop a personalized spending plan
 Identify action steps to reduce expenses
 Reduce debt, and much more!

More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship with God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

For information call Craig at 517.596.2349 Ext. 101 or
email cgoodlock@farmerstatebank.com

In Memory

2012-01-05T07:30:00.001-05:00

This coming Saturday, Jan. 7, I will be privileged to have the honor of giving the eulogy for one fine Christian servant, Lillian Proctor, who passed away yesterday. I’m wondering how many friends remember Mrs. Proctor from kindergarten at Katz, church in Munith, or other contacts, and would be willing to share those memories. I’d be thrilled to have your comments posted here or messaged to me for use this Saturday, or simply shown here to honor Lillian.

End of Year Tips

2011-12-27T10:48:00.000-05:00

Clear the Clutter in 2012!
MONEY Magazine and Debbie Stanley, author of “Organize Your House in No Time,” says that investing a few hours in an overfilled file cabinet (or shoebox?) can help you start off 2012 in an uncluttered, organized way. What to keep? What to shred?
DOCUMENTS: HOW LONG TO KEEP
• Tax Returns Forever Tax backup (receipts, W-2s, Six years (the IRS has up to this amount statements, etc.) of time to audit returns) Year-end investment statements Until six years after you sell, for proof of gains and losses for taxes
• Pay stubs Until you get your W-2 in January
• Receipts for home improvements Until six years after you sell the home, for tax purposes
• Receipts for big-ticket purchases As long as you own the item, for warranty and insurance claims

Know Your Score!
The National Foundation for Credit Counseling reports that only 4 in 10 Americans know their credit score. For $20, you can log on to www.myfico.com and obtain your score along with a credit report and an explanation on the positive and negative factors affecting your score. The FICO scoring model, the one most commonly used by lenders, ranges from 300 to 850. A score of 740 or higher entitles you to the best rates. Remember, your credit score determines what interest rates you will get on loans and credit cards.

Happy New Year

2011-12-26T08:06:00.001-05:00

Hope you can join me this Sunday, Jan. 1, 2012, at Southwest Church of the Nazarene, 14555 Holmes Rd (M-106), Gregory, MI, for worship at 11 a.m. when we'll try to answer the question, "Now what do we do with this baby?" The church is just north of where Google Maps shows the location, about 1/2 mile southwest of the Village of Gregory on M-106.

Important Debit Card Information

2011-12-22T16:16:00.000-05:00

Important Information Regarding
Your Farmers State Bank Debit Card

Recently a small number of Farmers State Bank Debit Card holders experienced fraud against their accounts. It is possible the information was stolen from select customers’ magnetic strip on the back of the card, perhaps through the use of a skimming device (Check out http://www.fdic.gov/consumers/theft/index.html for more information about identity theft)
All of the fraudulent transactions took place out of state, primarily in Arizona and Illinois.

To help prevent fraud against additional accounts, Farmers State Bank continues to monitor card activity. Steps have already been taken to block signature-based transactions originating in Arizona and/or Illinois. Pin-based transactions will still be available.

Unfortunately, criminal activity associated with debit cards is very sophisticated. One of the best ways to guard against fraudulent activity is to monitor your own accounts continuously. You can easily accomplish this through Online Banking at www.farmerstatebank.com, using our mobile banking application, or Touchtone Banker. All of these services are available 24 hours a day.
In addition, you can always request a printout of your account transactions at any of our three locations. Please remember to contact the Bank immediately if you spot suspect transactions.

If you are going to be traveling out of the state or country, please notify the Bank (888-596-2311)prior to departure to insure that your card transactions will be processed.

We take your account security and privacy very seriously. If you have questions, please feel free to contact us.

Help Us Fight Fraud

2011-12-21T15:26:00.002-05:00

Recently a small number of FSB Debit Card holders experienced fraud against their accounts. Card information was stolen and fraudulent transactions took place in Arizona and Illinois. To help prevent fraud, FSB has initiated a new program to more intensely monitor card activity. Our first step is to block signature based transactions in Arizona and Illinois. Pin-based transactions will still be available. We once again stress the importance of monitoring your own accounts. We offer free online banking, mobile banking and TouchTone Banker 24 hours a day. Help us stop fraud. FSB takes account security and privacy very seriously. If you have questions, please contact us.

Thank you, Dr. Fay

2011-12-14T07:48:00.000-05:00

I just have to post a little plug for Dr. Fay at Fay Veterinary Clinic on Bunkerhill Rd., Jackson, MI. A few weeks ago our dog was involved in an accident that left her hind leg nearly devoid of skin, clear to the bone, at the ankle. Long story short, Dr. Fay did the best cut and paste job I've seen in a long time. Based on how it looked when I unwrapped the wound a few days after bringing her home, I wouldn't have bet a buck that it would ever fully heal. Today, she's nearly as good as new, for an old dog, that is! Thanks, Dr. Fay.

Homework Help Program Extended

2011-12-09T05:40:00.000-05:00

Stockbridge Community Education
(517) 851-8222, www.panthernet.net/commed

Middle School Homework Help Sessions
Tuesdays, 2:30 – 4 p.m.
January 10 – March 27, 2012 (not 3/6/12)
Middle School Room 119
Free

Community volunteers from Farmers State Bank and area churches will be available to assist middle school students in their studies. Computer access will also be available to students who need to do work online. Students can bring snacks to class and should bring their books and assignments.

Please call Community Education if your child will not be attending on a particular day, 851-8222 ext. 2.

To register for Homework Help Sessions, please complete this form and return it to Stockbridge Community Education, 305 W. Elizabeth St., Stockbridge, MI 49285 or the middle school office.

Student Name________________________________Student Grade______ Homeroom Teacher____________
Daytime Phone #________________________Evening Phone #____________________Cell_______________
Address______________________________________________City, ZIP____________________________
Parent Name_____________________________________ E-mail Address ___________________________
Particular Subjects to work on_______________________________________________________________
At 4 p.m. my child will: ____walk home _____be picked up ______walk to the library
It is possible we may add Thursdays, too. Would you be interested in having your child attend then, too?____
Comments:_______________________________________________________________________________

Middle School Choral Concert

2011-12-09T05:16:00.000-05:00

I hope you can make the Middle School Christmas Concert, Tuesday, December 13th, 7:00 p.m. at the Stockbridge Middle School in the cafeteria. Admission is free. The concert will feature music from the 6th, 7th, and 8th grade choirs. There will be three all choir numbers at the end of our program and a visit from Santa Claus!

Bake Sale

2011-12-07T13:17:00.000-05:00

From Sherrie Howard: HOME MADE Christmas goodies, you name it we've got it! Save your holiday time for your family and come out to Farmers State Bank in Stockbridge on Friday (12/9) from 9 a.m. to 5 p.m. and Saturday (12/10) 9 a.m. to noon (while the goodies last). Everything from rock candy, cakes, peanut butter pies, fudge, muffins, and too much to list! Questions, call Cheryl Allen 517-851-7425.

Homework Help

2011-12-05T06:16:00.000-05:00

I am so proud of Farmers State Bank staff members Jeanne, Dawn, Amy, Kathy, Mike, and Jamie who've volunteered for a program at Stockbridge Middle School wherein they provide Homework Help for students once a week for an hour and a half at the end of the school day. This is a pilot project that is still developing, but I'm hoping its reach will expand to additional students and volunteers in 2012. Thank you, Jo Mayer, Community Education Director at Stockbridge Community Schools, for coordinating the project and giving Farmers State Bank the opportunity to serve your students.

Lansing Teen Challenge

2011-11-11T11:41:00.002-05:00

Check out the Lansing Teen Challenge presentation at Waterloo First United Methodist Church, located on Territorial Rd. at the end of Parks Rd., Munith, MI, during worship on Dec. 4, 2011, at 10 a.m. Lansing Teen Challenge is a Christian discipleship and educational ministry dedicated to helping people overcome life-controlling problems, such as substance abuse and alcoholism.

Veterans Day Plus

2011-11-11T05:00:00.000-05:00

Today, 11/11, we honor the dedication, commitment, bravery, and service of our veterans. We citizens cannot thank them enough for protecting the U.S.A.! Farmers State Bank is closed today in recognition of that service.

I was originally scheduled to speak this coming Sunday at Trinity Pentecostal Church, but that commitment has been changed to Sunday, 11/20, at 10:45. The church is located at 4935 Freiermuth Rd., Stockbridge, MI. Hope you can join us for worship.

A week ago today I attended my last meeting of the FDIC Advisory Committee on Community Banking. My two year term has ended and someone new will take my spot, I think. The committee is undergoing some change and how that shakes out is yet to be seen. Check this blog in the next week or two for a treatise on that experience.

Speaking Engagements

2011-10-14T05:53:00.001-04:00

I hope you can join me for one or both of the following worship services at which I'll be speaking.

Oct. 16, 2011, Stockbridge Presbyterian Church, 101 S. Center St., Stockbridge, MI, 10:30 a.m.

Nov. 13, 2011, Trinity Pentecostal Church, 4935 Freiermuth Rd., Stockbridge, MI, 10:45 a.m. (PLEASE NOTE: this engagement has been changed to Nov. 20, 2011)

Psalm 19:14
Let the words of my mouth and the meditation of my heart
Be acceptable in Your sight,
O LORD, my strength and my Redeemer.

Majority of Americans Do Not Have Money for Unplanned Expenses

2011-09-15T17:10:00.001-04:00

What To Do?

The National Foundation for Credit Counseling’s (NFCC’s) July online poll revealed that 64 percent of Americans would utilize a source other than their savings account to satisfy a $1,000 unplanned expense. The largest number of respondents (36 percent) said they would be able to tap their savings account to fund the unplanned expense. Utilizing rainy day funds for an emergency is exactly why a person saves, to protect them against the unknown. However, the remaining 64 percent are in a much
different situation.

“Without adequate savings, consumers have poor resolution choices when an emergency arises,” said Gail Cunningham, NFCC spokesperson. “People often say they can’t afford to save, but the truth is that they can’t afford not to.”

The survey revealed that to resolve the problem, 17 percent of respondents indicated they would borrow the money from friends or family. Asking those close to you for a loan can be awkward, and potentially negatively impact the relationship. Further, it can lead to “serial borrowing,” with the borrower always leaning on someone else to solve his or her financial problems. Perhaps even more troubling is that another 17 percent said they would neglect existing obligations in order to satisfy the emergency need. This option can easily snowball out of control and have serious consequences.

Skipping the rent or mortgage payment, and neglecting to pay credit cards or loans will cause penalty fees and interest to be added to the debt. Neglecting debt payments will also add negative marks on the credit report, resulting in a lower credit score.

The next highest number of responses was in the category of selling or pawning assets, with 12 percent choosing this option. Disposing of unwanted or unused items can be a positive way to raise funds.

Taking out a loan or obtaining a cash advance from a credit card were each selected by nine percent of respondents. The low number of individuals choosing these categories could indicate a lack of access to credit, which might be a good thing. Taking on new debt would put stress on existing obligations, the last thing someone in a financial crisis needs to do.

“Selecting any option other than taking the money from savings should be a red flag,” continued Cunningham. “If saving money has always seemed out of reach, there is no better time than now to get to the root of the problem and protect yourself, your family and your financial future.”

A tribute to my wife on our anniversary

2011-09-08T16:21:00.000-04:00

Long ago and far away at least as time is measured
I had a dream, a hope, a wish that God knew how I treasured.
To marry a girl whose eyes were blue with a laugh that lit my soul,
To share with her my life, my love – to make my half life whole.
Well as He does the Lord did work to bring her full around,
To take me as her husband dear, to share this love we’d found.
So here we are some twenty two years beyond that wedding day,
And I know that to spend my days there is no other way
Than with my Laur, my bestest friend, the one who lights my life.
So, with this poem I thank the Lord for making her my wife.

Sunday, August 28, 2011

2011-08-23T05:43:00.000-04:00

My next speaking engagement is this Sunday, 8/28, at 10:30 at the Presbyterian Church in Stockbridge. I hope you can join me for worship and a lesson on the power of the Holy Spirit. The church is located on the northeast corner of the town square in downtown Stockbridge.

Graduate School of Banking

2011-08-05T06:04:00.000-04:00

August is proving to be a busy month with multiple speaking opportunities. The 16th I'll be co-teaching a class on legislative and regulatory relationships at the Graduate School of Banking at the University of Wisconsin - Madison with Adrian Beverage of the Oklahoma Bankers Association. Then on the 19th I have the privilege of delivering the commencement address for the school. It's especially gratifying to be addressing this year's graduating class as it includes Karen Allen, my Farmers State Bank co-worker of over 20 years. Check out the school at www.gsb.org.

Vacation Bible School

2011-08-05T05:51:00.000-04:00

I am so excited to be the official "story teller" for Vacation Bible School at First Baptist Church of Stockbridge Aug. 8 - 12. Hope your kids ages 3 years through fifth grade can join us from 9:00 a.m. to noon. Check it out at www.1stbcs.org.

Missional Favoritism

2011-06-30T06:34:00.000-04:00

Hope you can join me for a message on Christ's call for God's people to be in mission at the First Presbyterian Church in Stockbridge this Sunday, July 3, at 10:30 a.m. The church is located on the north east corner of the town square in downtown Stockbridge.

Ordination Service for Craig Goodlock

2011-04-26T17:53:00.000-04:00

In response to the call to serve my Lord and Savior in an expanded capacity, I will be Ordained into the Ministry of the Gospel of Jesus Christ at a Special Ordination Service to be held at Trinity Pentecostal Church of Fitchburg on Sunday, May 1st, at 4:00 pm. Refreshments will be provided for a time of fellowship following the service. The public is invited to this holy convocation.

Competitive Forces

2011-04-01T06:28:00.000-04:00

I've been having an exchange on facebook with a local retailer about the current debate regarding potential governmental price controls on interchange rates, the fees charged to retailers when a customer purchases goods using a debit or credit card. To her charge that the fees are too high and that governmental intervention is needed to control those prices I respond as follows.

So, you are saying that customers have no choice as to how they pay for the goods they buy from you? Banks do not mandate the use of plastic. Customers choose it because it’s convenient, easy, and secure. Obviously, you also have a choice which provider from whom to buy your processing service. You've already said that you have good rates, so you must have been able to shop several providers. That's competition which obviously has driven the cost down for you compared to other options. Who decides how much you charge for dog food or wood screws or gas? I might say that you unfairly control the price for those products because I have to pay the price at which they’re marked. But, I don't complain, because if you charge too much I have the option to buy them elsewhere. That's competition. If one provider of processing services was the only choice you had, that is a system ripe for abuse. It's called a monopoly, and this country already has laws for handling those circumstances. In a free market, if the prices charged by processors are inordinately high so that they are reaping unreasonable profits, more processors will enter the business seeking those profits and prices will be driven down by competition. It's a good thing and absent governmental controls the system works. However, price controls in a system where there are multiple providers (such as there are in card processing today) mucks up the works and ends up costing more in the long run. That’s really the argument the credit unions are making in their ads you’ve bashed. In my opinion, we in this country would be better served to quit looking to a powerful central government to address our business and personal challenges and use our Yankee entrepreneurial innovation and inspiration to find competitive solutions of our own. No government plan is better than the balancing influences of a competitive free market.

An Open Letter to All U.S. House of Representatives Members

2011-03-18T15:51:00.000-04:00

As the Chairman and CEO of Farmers State Bank, a small community bank with offices in Munith, Stockbridge, and Grass Lake, Michigan, I am writing to ask for your help with an SEC registration issue limiting my ability to raise additional capital. An attempt to address this issue is being made by Senate Bill 556. Sen. Kay Bailey Hutchison (R-Texas) last Friday, March 11, 2011, introduced Senate Bill 556 that would raise the current 500-shareholder threshold for Securities and Exchange Commission registration to 2,000 and also raise the deregistration threshold from 300 to 1,200 shareholders. Sen. Mark Pryor (D-Ark.) is an original co-sponsor of the legislation.
The issue being addressed by Senate Bill 556 is this. Current SEC rules require any corporation with more than 500 shareholders to register with the SEC. The Sarbanes-Oxley Act (SOX) requires compliance with its rules by any corporation that is SEC registered. Sarbanes-Oxley is a law aimed primarily at the larger, more complex, typically public, corporations including financial institutions. When smaller banks like mine become subject to the requirements of SOX the costs of compliance are disproportionally high and little benefit is gained since the bank’s stock is not publicly traded and our financial statements are not complex. Thus if my bank grows to the point of having more than 500 shareholders, I will be required to register it with the SEC and immediately become subject to the costly and burdensome compliance costs association with SOX.
My bank currently has about 280 shareholders, mostly from my local community. As I look for ways to raise capital for my bank so that I may take advantage of growth opportunities, especially increased credit availability, I typically look for new shareholders in my community. Naturally, this will push my bank closer to the 500 threshold. At the same time, with much of my stock in the hands of older shareholders who typically pass those shares to multiple heirs, I expect the inheritance process to increase the number of shareholders, too. The 500 shareholder threshold will be a limiting factor for my bank as I seek additional capital.

The registration thresholds have not been adjusted for more than 40 years and do not reflect current investor participation in the securities markets. An increase in the outdated thresholds would provide immediate relief to community banks from the registration costs that they disproportionately bear, and also permit them to raise more capital to support their community lending activities.

I am writing specifically seeking your assistance in sponsoring a companion bill in the House of Representatives for Senate Bill 556. Absent that, would you please contact the Securities and Exchange Commission and urge them to adopt this change, as they could do so without new legislation if they were so motivated? American Bankers Association President and CEO Frank Keating raised the issue this week during a meeting with SEC Chairman Mary Schapiro, and she indicated the SEC is studying it. She did not, however, give a time frame for action. Perhaps your interest will spur quicker movement on the issue.

Thank you for taking the time to read my comments. Feel free to contact me with any questions.

Craig M. Goodlock
Chairman and Chief Executive Officer
Farmers State Bank
Munith, MI 49259

Our Expectations of Government

2011-01-23T09:00:00.000-05:00

Paraphrased from my facebook page:

Me: Back from a day and a half in DC. Beware the Department of Treasury. They've got their noses in our wallets (and every other pocket, too).

Question by a friend: So what if anything can we do??

Me: As to "what can we do?" Treasury is empowered by an atmosphere of entitlement and fear and the resultant desire by citizens for "protection" from uncertainty and the risks inherent in life. When we citizens turn to the federal government for protection from variations in income because we neglected to save, from unsavory business practices because we neglected to read the contract, from the high cost of health care because we seek every remedy no matter what the financial risk/reward we in essence are asking Treasury to fund a government second only to God in its omnipotence and second only to the devil in its appetite for our subservience. We need to change our expectations of government.

Your Credit Report

2011-01-15T11:14:00.000-05:00

Starting in 2011, many credit-seeking consumers will get more information about how their credit report or credit score can impact a lender's decision to grant credit and the terms under which credit is offered. Beginning January 1, new rules from the Federal Reserve and the Federal Trade Commission require lenders to provide new information to consumers under certain conditions. The Federal Reserve Bank has established a website that provides specific details about the new information and what it might mean to you as a potential borrower. The reader can also access a wide variety of other useful financial information from that page. Check it out at:

http://www.federalreserve.gov/consumerinfo/wyntk_notices.htm

Millville United Methodist Church

2011-01-06T20:42:00.000-05:00

Please join me the next two Sundays, Jan. 9 and 16, 2011, 10:45 a.m., for worship with the fine folks at Millville United Methodist Church, 1932 N. M-52, Stockbridge, MI, where I'll be leading an exploration of Christ's parables of the Kingdom of God as compared to wheat and tares and a pearl of great price. Hope to see you there!

Matthew 13:24-30 The Parable of the Wheat and the Tares
Another parable He put forth to them, saying: “The kingdom of heaven is like a man who sowed good seed in his field; but while men slept, his enemy came and sowed tares among the wheat and went his way. But when the grain had sprouted and produced a crop, then the tares also appeared. So the servants of the owner came and said to him, ‘Sir, did you not sow good seed in your field? How then does it have tares?’ He said to them, ‘An enemy has done this.’ The servants said to him, ‘Do you want us then to go and gather them up?’ But he said, ‘No, lest while you gather up the tares you also uproot the wheat with them. Let both grow together until the harvest, and at the time of harvest I will say to the reapers, “First gather together the tares and bind them in bundles to burn them, but gather the wheat into my barn.”’”

Matthew 13:45-46 The Parable of the Pearl of Great Price
“Again, the kingdom of heaven is like a merchant seeking beautiful pearls, who, when he had found one pearl of great price, went and sold all that he had and bought it.

FDIC Advisory Committee on Community Banking

2010-11-29T16:40:00.000-05:00

October 14, 2010, dawned rainy and cold with this writer in Washington, D.C., for a meeting of the FDIC Advisory Committee on Community Banking. While it is always a pleasure and privilege to represent Michigan’s banking industry on this august special purpose committee, I must admit a certain frustration with the lack of clarity as to our influence within the power structure. In fact, I am not the only committee member with questions as to the effectiveness of time spent in this effort. Late in the meeting that day the committee asked for, and the FDIC consented to, the compilation of some type of strategic measurement mechanism for discussion purposes as to the committee’s purposes, goals, and the effectiveness in attaining the same. It was readily admitted that the Advisory Committee helped move the Transaction Account Guaranty issue to the front burner early in its development, but no other issues were top of mind with the FDIC as to the Advisory Committee’s being influential in the progress thereof.

With many unknowns regarding the intended, and much more ominous unintended, consequences of the Dodd-Frank bill ever present in this meeting, discussions had a tendency to result in more questions than answers. However, what follows are a few observations from the meeting. It is important to note that throughout the meeting, Chairman Bair encouraged bankers to stay involved in the rule making process required by the bill as there is obviously much ground to cover over the next several years with many opportunities to influence the outcome.

One issue that has been raised at every meeting of the committee is the desire to see a change in the definition of “hot money” deposits. We were told the agencies have begun a study of the ramifications of a change in the hot money reliance calculations for certificates of deposit to those over $250,000 instead of $100,000 now that the $250,000 FDIC insurance coverage is permanent.

With regard to the adequacy of the Deposit Insurance Fund, the committee was informed of an FDIC study of Deposit Insurance Fund activity and premiums since 1950 to ascertain what level would have been required to fund losses while maintaining level premiums throughout the economic cycles of that time period. The study determined that a target for the DIF should be 2% not the 1.35% currently specified. The FDIC anticipates taking actions necessary to codify that target.

Discussions regarding the FDIC’s experience with troubled banks revealed the following. Early in the current cycle the only way off the troubled bank list was failure. Of late, however, there are some banks experiencing success at obtaining capital injection, there are a few unassisted merger/acquisition transactions, and several banks experiencing upgrades in ratings. Seemingly, this indicates a turn in the cycle.

Chairman Bair again assured committee members that the FDIC and D.C. leadership are all committed to the dual banking system and community banks, there is no push to reduce the number of banks, and called talk of the same an unsubstantiated rumor. However, it was readily admitted that the current market conditions will by economic necessity reduce the number of banks through attrition, merger, and acquisition.

Committee members’ complaints of anticipated increased compliance costs from the Dodd-Frank bill lead FDIC Vice Chairman Martin Gruenberg to encourage bankers to send specific details of compliance costs to the FDIC. His perspective is that community banks should not see much increase in compliance costs as a result of the bill. Therefore, I encourage bankers to respond to the Vice Chairman’s request with data. I believe much of the large bank requirements from the bill, including those of the Consumer Financial Protection Bureau, will soon be determined to be “best practices” and expected of community banks, as well. Bankers, let’s be sure we build the case against compliance costs before we drown in them.

The committee’s lunch speaker was Eric Stein of the CFPB (Elizabeth Warren’s primary assistant). A bullet list of the issues covered includes: 1. The structure and mechanism already exists for regulating banks but not for non-bank institutions. Thus, one might suspect that banks will be hit hardest first with the new regulations. 2. No vanilla products will be mandated. The bill gave no authority to the CFPB to do so. (Having said that, the FDIC is working on something called the FDIC Model Safe Accounts Template – more about this later, I’m sure). 3. The CFPB is not in charge of compliance for community banks, and Mr. Stein is glad of that. He admitted his plate is full simply trying to get his arms around compliance for the larger institutions. 4. Many hearings will be scheduled to take input as rules are written. Banks are encouraged to stay engaged.

The FDIC gave an overview of how it intends to tackle the “too big to fail” responsibilities given it by Dodd-Frank. The Financial Stability Oversight Council is a new agency funded from the federal budget that will provide the operating cash for the FDIC’s division for complex financial institutions (CFIs). Currently, the FDIC is assembling an initial staff of one hundred fifty members. One of the changes under Dodd-Frank allows the FDIC to place five full time staff members in CFIs instead of only one currently.

All told, this writer’s impression was that this particular meeting was more about preparing bankers for unprecedented mandatory change than providing specific answers or the opportunity for solutions – somewhat akin to kneading dough in preparation for a 450 degree oven. But, the result of time spent in the oven can be a wonderfully tasty treat. Bankers, now is the time to season the sauce. Let us be prepared to provide passionate input as the rule making begins.

Christian Renter Continued

2010-11-04T21:40:00.000-04:00

Well, my faith in our constitution is restored for the moment. Witness the following first few paragraphs from the most recent article on the Christian housemate issue.

Federal government drops case against Grand Rapids woman seeking Christian roommate

Published: Thursday,... November 04, 2010, 2:59 PM Updated: Thursday, November 04, 2010, 8:40 PM

Cami Reister
The Grand Rapids Press

GRAND RAPIDS -- On the surface, an ad posted in a church by a 31-year-old nursing student seeking a Christian roommate does violate fair housing law, but other issues prompted the U.S. Department of Housing and Urban Development to drop its case against her.

Nancy L. Haynes, executive director of the Fair Housing Center of West Michigan, which forwarded the case to HUD and the Michigan Department of Civil Rights, said the dismissal document she received from HUD acknowledged the violation, but said it dropped the complaint because of constitutional considerations dealing with the freedom of association, a separate issue from fair housing.
See the entire article at:

http://www.mlive.com/news/grand-rapids/index.ssf/2010/11/federal_government_drops_case.html

Religious Liberty in America

2010-11-04T06:43:00.000-04:00

As we enjoy the respite from all too frequent phone calls piercing our peace with recorded campaign rhetoric, may we pause to contemplate the ever encroaching persecution of Christians in our country. Witness the first few paragraphs that follow from an article by Meredith Skrzypczak in The Grand Rapids Press dated October 22, 2010.

GRAND RAPIDS -- The 31-year-old nursing student was looking to keep her expenses down when she decided to invite someone to share her home.

But when she posted an advertisement for a Christian roommate on her local church's bulletin board, the Grand Rapids woman landed in the middle of a civil rights debate that has her facing a complaint of alleged illegal housing discrimination.

The advertisement contained the sentence, "I am looking for a Christian roommate," said Joel Oster, senior litigation counsel with the Alliance Defense Fund, which represents the woman.

Someone saw the ad over the summer and anonymously filed a civil rights complaint with the Fair Housing Center of West Michigan. The complaint was then filed with the Michigan Department of Civil Rights, and the woman was notified at the end of September. (End of article quote)

This dispute is not about fairness, discrimination, bigotry, or illegal activity. Sad is the day in the United States of America, where citizens recently enjoyed free elections in which many incumbents were ousted and many would-be politicians were defeated without voters needing to fear intimidation at the polls, cheating at the ballot box, or civil disobedience following the election because of the results, but a young, single woman trying to offset the cost of home ownership by sharing her living space with a renter cannot specify that her new roommate be Christian. In this writer’s opinion this dispute is simply about personal liberty and a desire by some to confine religious liberty within the walls of the church. BUT, the advertisement in question appeared only upon the young woman’s church’s bulletin board. It would appear some interpret the laws of the United States to strip religious liberty from citizens altogether. It would appear some interpret the law to strip religion from citizens altogether. It is time for a new perspective in America. Perhaps the fresh breezes that greeted us on election day, Nov. 2, 2010, were really the winds of change. Let us pray that this is so and strive to make it so.

Craig's Blog: Identity Theft Victims: Immediate Steps towards Recovery

2010-10-12T16:51:00.000-04:00

Craig's Blog: Identity Theft Victims: Immediate Steps towards Recovery

Identity Theft Victims: Immediate Steps towards Recovery

2010-10-12T16:50:00.000-04:00

Victims of identity theft lose more than money, they lose time.
The average identity theft victim spends 30 hours working with
creditors, credit reporting agencies, financial institutions, and
law enforcement in order to re-establish their credit records.
If you are a victim of identity theft, taking the following five steps can help you minimize the damage to your credit report:

• Review all three credit reports. Check to see if any
unauthorized charges have been made to your accounts
or if any new accounts have been opened.

• Close the accounts that you know, or believe, have been tampered with or opened fraudulently. When calling your creditors, ask to speak with the security or fraud department where a representative will be able to help you dispute any unauthorized charges that have been made.

• Place a fraud alert on your credit reports. Contact the toll-free fraud number on any of the three consumer reporting companies below to place a fraud alert on your credit report. A fraud alert will notify your creditors to contact you and verify your identity before approving a request of credit in your name. You only need to contact one of the three credit reporting agencies to place an alert, because that company is required to contact the other two.

Equifax: 1-800-562-6285; http://www.equifax.com/

Experian: 1-888-397-3742; http://www.experian.com/

TransUnion: 1-800-680-7289; http://www.transunion.com/

Continue to review your credit reports on a regular basis for suspicious activity. If you find any unauthorized accounts, contact those creditors and dispute the accounts with the credit reporting agency.

• File a report with your local police department or the police department in the community where the identity
theft took place. After filling out a report, ask for a copy of it, as well as the case number of the report, which you can then provide to creditors who ask for proof of the crime.

• File a complaint with the Federal Trade Commission. Sharing your identity theft complaint with the FTC provides important information that can help law enforcement officials across the nation track down identity thieves and stop them.

Following these steps as soon as you are aware that your credit records have been compromised and keeping good records of your correspondences with creditors will put you on the road to reclaiming your financial health.

Source: Federal Trade Commission

Pioneer Day

2010-10-09T07:13:00.000-04:00

Tomorrow, Oct. 10, is the annual Waterloo Farm Museum Pioneer Day from noon to 5 p.m. Grab the details at www.waterloofarmmuseum.org then come on out tomorrow. The weather will be great and yours truly will be enjoying the pie judging at noon. Hope to see you at the farm.

Zoning Ordinance Request for Comments

2010-09-23T20:39:00.000-04:00

While the proof will be in the final proposed Bunker Hill Township Zoning Ordinance, I offer my congratulations and commendations to the Bunker Hill Planning Commission who seem sincere in their effort to listen to public input at this point as evidenced by the meeting this evening. Therefore, citizens of Bunker Hill, if you have not done so yet, it is imperative that you read the ordinance (available under older posts below) and get your written comments submitted to the Planning Commission Chairman, 871 Decamp Rd., Stockbridge, MI, 49285. It is the only way this proposed ordinance will get amended.

Suggested Modifications to the Proposed Bunker Hill Zoning Ordinance

2010-09-15T13:11:00.000-04:00

I am having difficulties uploading my amended file with suggested changes to the proposed Bunker Hill Township Zoning Ordinance. Until I can get the gliches solved (the uploaded file does not show the colored balloons or highlighted verbiage from Microsoft Word's Review function) I am very willing and able to email you the document, which does show the indicated changes, if you will request it by email at cgoodlock@frontier.com. Thank you for your patience.
Craig

Bunker Hill Township Proposed Zoning Ordinance

2010-08-05T12:02:00.002-04:00

BunkerHillZoning Ordinance Final Draft Rev. 2[1] -

Money Basics For College Grads

2010-07-06T11:07:00.002-04:00

With commencement season just around the corner, it is
time to start thinking about managing your finances now
that you will be on your own. Here are a few tips to help you
learn the basics of money management when you’re just
starting out. If you’re not a graduate, but you happen to be
a well-wishing parent, these tips will arm you with the tools
you need to guide your grad in the right financial direction.
Q. Do I really need a budget?
A. Yes. When you’re just starting out, you face many
new expenses such as rent, student loans, utilities and
transportation. You’ll need a budget to make sure you have
enough money to go around. Start by tracking everything
you spend for one month. Once you know what you are
spending, you can begin to find areas where you can use
your money more wisely.
Q. What’s the best type of credit card for me?
A. Just as you shop for the best buy on jeans or sports
equipment, you can shop for the most affordable credit card
as well. If you plan to pay off your bill each month, take the
card with no annual fee and a higher interest rate. You won’t
be charged interest as long as you don’t carry a balance. If
you think you may carry a balance from month to month,
find a card with a low interest rate. Ideally, look for a card
that also has no annual fee.
Q. I applied for a credit card but got turned down because
I don’t have any credit. How can I build a credit report
from scratch?
A. It may be difficult to get credit until you have a history of
repaying credit. A great way to start building a credit history
is to apply for a secured credit card. With this card, the issuer
allows you to deposit a certain amount of money, say $300,
and in return they provide you a credit card with a limit of
$300. A secured credit card may have a higher interest rate
or annual fee, so be cautious about carrying balances from
month to month. Another good option is to take out a
secured personal loan from your bank. The interest rate will
be reasonable and making timely payments will establish
positive payment history with the credit bureaus.
Q. Is my credit score really that important?
A. Yes. A credit score is a number lenders use to help them
decide if you’re creditworthy and can be trusted to pay back
your debts. Your credit score can play a role in your ability to
rent an apartment, qualify for a loan or even get a job. It can
also affect how much you’ll pay on interest charges, insurance
or cell phone contracts. Paying your bills on time each month
is the single most important thing you can do to maintain a
high credit score.
Q. I’m graduating with a mound of credit card debt. Do
you have any advice?
A. You’re not alone. According to Sallie Mae, the average
college graduate starts out with more than $3,000 of credit
card debt. Your first step is to get back in the black by putting
your credit cards away so you’re not tempted to charge even
more. Then, look for ways to cut your spending and use the
cash to pay off your debt sooner. Get in the habit of spending
less than you earn. It’s a valuable discipline that will serve
you well throughout your life!
Q. As long as I make the minimum payment on my credit
cards, I’m okay, right?
A. Wrong. Credit can be expensive if it is not used wisely. For
example, if you purchase a $500 TV on a credit card with an
18% interest rate, and you make a minimum payment of 2%
or $10 each month, you are actually paying $931 for the item,
taking you eight years to pay it off. In order to minimize your
costs, save before making a purchase to put a larger down
payment on the item and/or make larger than minimum
payments each month after the purchase. Ideally, you should
not spend more on your credit cards than you are able to pay
in full the following month.
Q. I have some cash to put in savings. Where exactly
should I keep it?
A. You should aim to have enough money on-hand in an
emergency savings account to cover three to six months’
worth of living expenses. An emergency savings is generally
kept in an interest-bearing savings account or money market
mutual fund. Check with your bank to determine the best
option for you. An emergency savings account is designed
for purchases such as an unexpected car repair or medical
bill, not regular monthly expenses. Create your emergency
savings before you begin investing for other financial goals.
Taken from The Community Advantage Newletter

Online Banking Can Make You Happier!

2010-06-16T09:49:00.002-04:00

Visit msnbc.com for breaking news, world news, and news about the economy

How are You Tackling the Challenges of Today?

2010-06-04T11:48:00.004-04:00

It seems to me that the greatest risk to this country comes not from the Taliban, Al-Qaeda, illegal immigration, a health care crisis, an economic catastrophe, or non-existent energy policy. The greatest risk to this country is evident in our tendency to turn first to the Federal government for solutions, remediation, and protection from all the social ills that befall us. Whatever happened to American ingenuity, pride, energy, and faith which inspire citizens to take matters into their own hands, as individuals and as communities, to confront problems head on? Why have we all sacrificed our individual statesmanship at the altar of communal political expediency?

Whether it is our individual contribution to the Gulf oil spill through an unwillingness to end our love affair with the automobile and petroleum based products and production, or our indulgence in a national cheap food policy that is reliant upon intensive petroleum centric agricultural practices, or our ever increasing demand for electricity provided compliments of non-renewable natural resources, or our exacerbation of the increasing cost of health care because when the illness or injury gets personal we demand every healing potion, test, procedure, and cure known to science no matter what the cost, or our grasping for the governmental social safety net as soon as our individual or corporate income is interrupted because we never took the personal initiative to save for that “rainy day,” or our propensity to voluntarily surrender our constitutionally guaranteed liberties in submission to countless regulation, tracking, taxing, and recording of our financial transactions and activities under the guise of homeland security or budget reconciliation, I fear we have become an American society that in its apathy and lethargy not only allows, but actually seeks, more control, intercession, and manipulation by a powerful central government.

To help counter this disturbing trend I invite readers to use this blog as a forum for inspiration and encouragement by sharing examples of solutions to socio-economic challenges that have been conceived, developed, and implemented by private citizens, businesses, charitable organizations, or churches, without the assistance or intervention by governmental units or agencies. For example: Yahoo News posted on June 3, 2010, an article by Michael Rubinkam, Associated Press Writer, entitled `Banks' allow members to pay with time, not cash. This article is about a new twist on the ancient practice of bartering wherein people trade services for “time dollars” that can then be spent on other services through use of an entity called a “time bank.” The practice expands bartering beyond the simple trading of two items of value between two people to a more liquid medium of exchange operating outside the regulated and taxed economy, with the added benefit of avoiding the use of cash – an item in short supply in many households in the current economic environment. Check it out at http://news.yahoo.com/s/ap/20100603/ap_on_re_us/us_banking_time

Let me know how else you or your neighbors are innovatively tackling the challenges of today!

The FDIC and Community Banking

2010-03-15T12:43:00.003-04:00

On Jan 28, 2010, I had the privilege of attending my second meeting of the FDIC Advisory Committee on Community Banking in Washington, D.C. I am often asked if I think the committee is effective. With one of the primary goals of the committee being increased communication between the insurer and the insured, the answer to that question is an adamant, “Yes.” During the first meeting of the committee in October two particular issues were raised to which the committee requested further dialogue, failed bank resolution and the perceived disconnect between FDIC executives and field examiners.

In response to those October inquiries, the January meeting included an hour long presentation from FDIC staff responsible for failed bank resolution explaining the mechanics of the resolution process, the effort to maintain a least cost process, and changes to the process recently enacted to address issues resulting from recent bank failures – especially those involving loan participations with failed banks.

In response to the October complaint that field examiners, seemingly in an effort to enhance performance reviews and to keep on the good side of the Inspector General, are acting in a more draconian manner than what is being articulated by FDIC upper level management in conversations with bankers, a field supervisor from Arizona was available for input throughout the day and presented a brief session assuring that processes were in place to minimize such behavior in the field.

A few items of particular note: Bankers continue to call for a change in the definition of Jumbo CD’s to those over $250,000. Some progress with this change may be evident in the call report instruction modifications for March 31, 2010, wherein Schedule RC-E requires information on those time deposits of $100,000 through $250,000. Bankers brought to the attention of the FDIC conflicting instructions between the call report and the examples in the Commercial Real Estate Guidance for when a loan can be de-classified as Troubled Debt Restructured. A forthcoming clarification of the information was promised. Committee members complained that market deposit pricing models for banks under consent orders give equal weight to all competitive bank offices in a market rather than assigning weight by individual bank. Therefore, banks with many offices, usually the larger banks in the market, have more influence in the pricing calculations than community banks or credit unions. An issue that seemed to garner an interesting response from the FDIC was the observation by a committee member that future fund premium revenues will likely increase simply as a result of bank rating downgrades. The implication being that as the fund is stressed by future bank failures there could be perceived motivation for examination teams to downgrade banks as a method of increasing fund revenues. FDIC personnel insisted that no such motivation exists nor would such behavior be tolerated, seemingly rendering the implication void.

The committee seemed to discuss more macro issues this quarter: too big to fail and the FDIC’s role therein, the proposed Consumer Financial Protection Agency, the financial impact on the insurance fund and individual banks resulting from continuing CAMELS downgrades, the horrendous affect on bank balance sheets from mark to market accounting rules, macro economic governmental mechanisms available to increase lending per the raucous call of the administration and some members of congress at a time of severe capital restraints and a drought of credit worthy borrowers in many markets.

Once again, bankers were not shy in sharing their intense concerns and the FDIC seems highly motivated to elucidate the agency’s positions and provide information and feedback. FDIC administrators continue to demonstrate their avid desire to hear, evaluate, and implement, where appropriate, suggestions that will improve the banking industry.

The next meeting of the committee is scheduled for April 21, 2010, again at the FDIC headquarters in D.C. As always, these meetings are open to the public and video of the proceedings can be viewed post meeting in their entirety on the FDIC’s website at: http://www.vodium.com/MediapodLibrary/index.asp?library=pn100761.

I regret that this writer will not be in attendance at the April meeting because of a conflict with Farmers State Bank’s annual meeting. While I cannot offer the reader a proxy for my seat at the table, the gallery seating was again only partially occupied for the January meeting, and I am sure there will be a seat on April 21 for any interested parties.

A New Good $ense Budget Course

2010-03-15T12:33:00.005-04:00

Mondays, April 19 to May 24, 7:00 - 8:15 p.m.
Heritage Elementary School, Room C125
222 Western Ave., Stockbridge, MI
Call Stockbridge Community Education to register 517.851.8222

Workbook fee: $15.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:

 Prioritize financial goals
 Develop a personalized spending plan
 Identify action steps to reduce expenses
 Reduce debt, and much more!

More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship with God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

For information call Craig at 517.596.2311 or
email cgoodlock@farmerstatebank.com
Sponsored by Farmers State Bank and Stockbridge Community Education.

Identity Theft at Home

2010-03-15T12:24:00.003-04:00

In a continuing effort to highlight the possibilities for fraud perpetrated from unlikely sources, I relate the following experience at one of our drive up facilities earlier this year. Some details have been masked to protect the potential victim. Late in the day a vehicle entered the drive up lane furthest from our building with a male driver and a female occupant in the passenger seat. The female had a scarf on her head and kept her face pointed forward throughout the ensuing interaction to keep our teller from getting a full facial view of her. The transaction capsule arrived with a driver’s license and transaction tickets to deposit a $400 check with $200 cash back. The driver’s license was that of our customer into whose account the deposit was to be made, a 55 year old female. Our teller suspected that the woman with the scarf was much younger than 55 and asked her to verify information on the driver’s license and account title. The woman began searching frantically through the vehicle’s glove box when the verification was sought, yet was unable to accurately confirm the requested information. At this point our teller asked the woman to step into the bank so her identity could be verified and the transaction completed. The driver then related that the woman’s mother had just died, that she was extremely distraught, and did not want to come into the bank. He requested the transaction be cancelled and the items returned to them. By now our office manager was involved and offered to come out to the car as a customer courtesy to complete the transaction. As the manager exited the building toward the drive up area, the vehicle sped out of the bank lot, screeching tires and fishtailing down the road, leaving all documents in the bank.

During the above described interaction, another staff member was frantically trying to phone the owner of the driver’s license. Not until the vehicle was gone was that accomplished. The owner immediately suspected the people in the car were her son and his girl friend. She had no idea her driver’s license had been stolen but verified that it was indeed missing from her purse. Her son had been in trouble with the police the night before and was to be in trouble with them again before the evening was over. As I have written in the past, much of the fraud our customers experience is perpetrated by someone known by the victim. The fraud usually involves misuse of the victim’s identification, account records, or other personal information that have been taken from or viewed at the victim’s home. Be sure to guard your personal information closely. Keep your wallet or purse in a secure location. Store financial records, extra checks, and unused credit and debit cards in a locked file cabinet. Place outgoing mail in a mail drop box, not in your mailbox at curbside. Retrieve your mail from your curbside mailbox as soon as possible after it’s delivered. Never give anyone your card PIN numbers or computer security codes. Don’t keep your PIN numbers with your cards. Don’t write your computer passwords on a card and slip it under the keyboard. These are just a few easy and quick ways to begin to protect your assets.

New Good $ense Budget Course

2009-12-30T11:37:00.002-05:00

Six Thursday evenings
Jan. 14 – Feb. 25, 2010
No class Jan. 28
7:00 p.m. to 8:30 p.m.
Grass Lake High School Library
To register:
Doug Moeckel, Grass Lake Schools Community & Cooperative Services
Ph: 517-522-5544
dmoeckel@grasslakeschools.com

Workbook fee: $15.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:

Prioritize financial goals
Develop a personalized spending plan
Identify action steps to reduce expenses
Reduce debt, and much more!

More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship with God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

For information call Craig at 517.596.2349 Ext. 101 or
email cgoodlock@farmerstatebank.com

How Sharing Information Might Lead to Fraud

2009-11-16T10:46:00.003-05:00

This month I share with you a couple of recent personal experiences involving attempted fraud. I received a call a couple of weeks ago from a frantic mother who believed her elderly father had been defrauded of $2500 in the following manner. The elderly father (grandfather of the son mentioned below) had received a call at his residence in Phoenix late in the afternoon from a person purporting to be a law enforcement officer in Canada. The “officer” said that father’s grandson had been arrested in Canada for driving under the influence (DUI) and would need $2500 bail money wired immediately to avoid spending the night in jail. The father was given Western Union wire instructions to a bank in Canada and promptly complied. Only after completing the wire did granddad call mother to report the situation. Son was standing in the kitchen of the family home with mother at Pleasant Lake, MI, at the time of the call to confirm the whole thing was a fraud. Fortunately, even though a couple of hours had passed since the wire was initiated, Western Union was able to stop the transaction so no funds were lost. Don’t let your desire to help overshadow your suspicion of unsolicited calls. A quick call by grandfather to mother BEFORE the wire transfer would have avoided this nearly tragic situation.
How did the perpetrator nearly pull off this $2500 fraud? My guess is that grandson has been Twittering, or on Facebook, or YouTube, or some other social network talking about his grandfather in Phoenix and his family’s frequent trips to Canada (all true). All the caller needed to know was son’s name and location, granddad’s name and location, and the likelihood of a trip to Canada. Crooks are scanning the social media all the time looking for folks who post too much personal information. This personal information can be used to initiate scams. Even though you may be on a “private” electronic media site, realize that not all participants may be as honest as you are. Illicit harvesting of personal information from this resource is increasing exponentially. Be careful what you disclose.
Last week, as I was walking along the road after dark a car stopped a couple of hundred yards ahead of me. The occupants got out, and I heard banging. What I thought was their banging on the neighbor’s mailbox turned out to be the lid to the neighbor’s trash can clanging as the occupants rummaged through the trash. Later, another neighbor told me their trash had been “stolen” from a can beside the road several nights before. This is still one of the most lucrative resources for ID thieves – personal information in trash cans and mail boxes beside the road in rural areas. Pick up incoming mail as soon as possible after delivery. Place outgoing mail in postal drop boxes, not in your mailbox by the road. Put the trash out by the road as close as possible to pick up time, not the night before, and be sure to shred any trash containing personal information. In most cases of ID theft, personal information is either literally handed to the thief or left out where it is easily picked up. Closely guarding your personal information will go a long way toward avoiding ID theft.

FDIC Advisory Committee On Community Banking

2009-10-28T11:14:00.004-04:00

In September I was appointed to the FDIC Advisory Committee on Community Banking. On October 15, I was privileged to represent the banking industry in Washington, D.C., at the FDIC headquarters as that committee held its first meeting. It was quickly apparent from the commitment of staff resources, planning, and logistics that the FDIC has taken this committee’s role seriously. The reception the evening prior to the meeting was attended by as many, if not more, upper level FDIC staff as bankers.

By law every meeting of the Committee is to be public. This meeting was held in the FDIC board room which is situated with a horseshoe table facing a gallery in which were seated a couple of dozen observers filling perhaps one third of the available seating. The horseshoe table, at which were seated committee members and a couple of senior FDIC executives including Chairman Bair (she attended nearly all of the proceedings) was fronted by a rectangular table from which various FDIC staff addressed the committee. The session was also simulcast into an overflow room across the hall. Security for the entire affair was extremely evident.

From several remarks made throughout the day the FDIC apparently was initially concerned that committee members might be reluctant to speak out in such a forum. As they readily admitted, much to their delight, their concerns were ill founded. From the very first question concerning examination issues to the very last question regarding “too big to fail,” it was evident bankers were there to say their piece.

In addition to bringing individual bank’s issues to the table, most participants also expressed views colored by their perceived representative position within the industry. At least two members had taken CPP money “for all the right reasons” and yet had been punished by the press and targeted by competitors with derogatory marketing campaigns for having done so. One participant is the Chairman of the Board of his local Federal Home Loan Bank and expressed grave concerns, supported vehemently by most committee members, over talk of a FHLB haircut in the event of a bank failure and the affect such a ruling would have on the cost of credit for users of the system. A couple of participants are from ag banks who are still performing quite well, but feel the pressure of additional regulatory scrutiny in the current environment. Others are reeling from valuation hits to capital based on OTTI determinations. The banker from Georgia, like this writer representing Michigan and the Great Lakes region, brought tales of banks struggling to survive, starved of capital because of collateral value degradation in the loan portfolio with little hope of attaining new equity infusions given a government intent on bailing out Wall Street with little appetite for buoying up Main Street.

So, specifically, what did we discuss? Here’s a non-exhaustive, non-prioritized, personally prejudiced list: loan classifications caused by depreciating collateral values even when the supporting cash flow is still strong thus causing the secondary source of repayment to be considered by examiners as the primary source of repayment while the original primary source, cash flow, is totally ignored (it was stated there will be new regulatory guidance on this matter in the near future); the need for some type of capital infusion program specifically for community banks - and not just for the ones that don’t need it; changing the FDIC premium assessment base to assets instead of deposits; the method used to auction closed bank assets and its deleterious affect on loan participations; forbearance as the new “F” word; the unavailability of open bank assistance options; given community bankers’ commitment to the success of their communities and the citizens thereof, the insulting inference that customers need to be protected from community bankers by the creation of CFPA – an agency and process that in seemingly willful ignorance of the actual culprits targets the innocent players in the industry; redefining a jumbo CD as one over the insured limit of $250,000; FHLB pre-payment penalties charged to the FDIC in a closed bank; the use of non-core deposit funding is NOT the problem, it’s what is done with those funds on the asset side that is the problem; the three year pre-paid FDIC premium proposal; fear - of a disconnect between an eventual rule maker (CFPA) and safety and soundness, of a single rule maker, of the demise of the dual banking system, of the inability to address “too big to fail” in a meaningful manner.

FDIC personnel expressed unabashed support for the dual banking system and its role in making this country strong – the best in the world in this writer’s opinion. Seemingly, copious notes were taken by the numerous FDIC staff present. Not all suggestions fell on fertile soil.

I am privileged to have a seat on this committee and applaud Chairman Bair and her staff for their obvious support. We are to meet quarterly, most likely at the FDIC headquarters in D.C. I welcome comments from bankers and other interested parties and appreciate the opportunity to carry messages to and from Washington. In this writer’s opinion the committee is not simply the voice of one crying in the wilderness, but is convened so that he who has ears, let him hear. As I mentioned, the meetings are public. Perhaps the reader can join this writer on the next foray to our nation’s capital!

New Good $ense Course Schedule

2009-10-23T10:14:00.003-04:00

Good $ense Budget Course
Presented by:
Craig Goodlock
Chairman and Chief Executive Officer of Farmers State Bank

Six Monday evenings
Nov. 9 – Dec. 14
7:00 p.m. to 8:30 p.m.
Good Shepherd Mission
5050 E. M-36, Stockbridge, MI
Ph: 517.851.9800

Workbook fee: $10.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:

 Prioritize financial goals
 Develop a personalized spending plan
 Identify action steps to reduce expenses
 Reduce debt, and much more!

More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship with God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

For information call Craig at 517.596.2311 or
email cgoodlock@farmerstatebank.com
Sponsored by Good Shepherd Mission and Farmers State Bank.

Stockbridge Free Thanksgiving Dinner

2009-10-16T09:29:00.002-04:00

Sixteen years of community support has made the Annual Free Community Thanksgiving Day Dinner an appreciated tradition for many area families. As always, our goal continues to be that anyone who needs or would enjoy a meal has a traditional dinner in a community setting or in their own home. As in the past, the success of this event depends on your support.

Your help in spreading the word is appreciated. Many volunteers and local restaurants will be preparing this homemade dinner with all of the trimmings. The meal will be served on Thanksgiving Day, November 26, 2009 from 11:30 a.m. to 2:00 p.m. at Heritage Elementary School in Stockbridge.

This year we are planning to serve over 500 meals through a variety of methods including dine-in, home delivery, and/or carry-out. We will also have free transportation for anyone who might like to join us and needs a ride. It continues to be our belief that no one should have to eat alone on Thanksgiving Day. We invite everyone to share the day with others at no charge. This longstanding tradition is made possible by tax deductible contributions from our community. If you would like to make a donation, please make the check payable to the Stockbridge Community Schools, MARKED: Thanksgiving Day Dinner Fund, and mail it to 305 W. Elizabeth Street, Stockbridge, MI 49285.

We hope you will be able to come enjoy fine food, good friends and a spirit of thanksgiving at the sixteenth annual Stockbridge free community dinner on Thanksgiving Day. For more information call 517-565-3051 or email stockbridgeturkeyday@yahoo.com.

12 Tips for College Students to Manage their Credit

2009-09-10T14:34:00.002-04:00

The fall term of college has begun. Perhaps you’re wondering if that coed of yours is handling her money the way you’d like. Here are some financial education tips applicable not only to your college student, but his younger siblings, too, compliments of the firm that audits our books, Rehmann.

A Dozen Tips to Help Students Manage Credit and Money
CREDIT
1. Talk about it. In the Sallie Mae college credit card survey, one third of the undergraduates never, or only rarely, discussed credit with their parents. Nearly 85 percent indicated they needed more education on financial management.
2. Help select an appropriate card. Try to convince your child to get a debit card instead of a credit card, so he or she can't get into too much debt. Together, go through offers, comparing interest rates, annual fees, grace periods, and penalties.
3. Explain the basics. Make sure your child understands that if a balance isn't paid in full each month, a significant amount of interest will be due. Many lenders have lowered minimum monthly payments over the years to increase the interest they collect. If you teach your child nothing else, instill the concept of paying credit balances in full, if possible.
4. Educate your child about late fees, "teaser" interest rates, annual fees, and credit ratings.
5. Counsel your student to use credit only for some purchases, not to fund luxuries. Credit cards can be used for things like books or car repairs, but should be avoided for entertainment, electronics, and expensive clothes.
6. Review your child's statements regularly. Show your child how to compare receipts to credit card statements. Explain how credit can increase impulse purchases.
7. Warn your child to keep the card safe to avoid unauthorized use and identity theft.
INVESTING
8. Teach your children how to research a stock, follow its price, review an annual report and decide when to sell. Help them purchase stocks. Encourage students to take finance courses that teach stock basics and subjects such as real estate and personal finance.
MONEY MATTERS
9. Keep in mind that many students first handle money without parental supervision in college. Guide them by developing a budget.
10. Consider all expenses in a budget, such as travel, food, entertainment, clothing, cell phone, computer costs, and medical expenses.
11. Ask your student to keep track of spending for a couple weeks to detail expenses if he or she is having a hard time staying within a budget. Go over the amounts to see whether expenses can be reduced or you didn't factor in certain items.
12. Be conscious of messages you send. How you treat money can have a big influence on your kids. If you use credit and spend cautiously, your children are more likely to, as well.

Video Tools for Your Future

2009-08-14T15:17:00.006-04:00

I am pleased to introduce Farmers State Bank’s latest financial education tool – the online video library.

The web video series targets the entire financial life cycle and the situations that can impact your finances during each one of them. The helpful advice is relevant to everybody — youth, those in their middle years, and those planning for retirement.

Each program focuses on what you can do to implement your own sound financial management plan. Because money management is a life-long activity, good habits in handling our finances can’t start too early. Nor can they ever end, regardless of our age.

As you look over our video offerings, choose the topics that interest you in whatever order you wish. Banking Is features young people and their experiences with personal finance. Life is What Happens While You’re Making Plans provides insights into balancing issues like making a living, starting a family, and dealing with major life changes. Planning for the New Future looks at the problems and opportunities of retiring or planning for retirement. The news magazine, Fast Forward on Finances presents more in-depth information on a number of specific topics.

The online video library was developed by Farmers State Bank’s partner in financial wellness, Community Advantage, and is available without obligation or charge via a link on the bank’s website at www.farmerstatebank.com. From the bank’s home page click on “Other Products & Services” then “Budgeting & Financial Counseling” then “Personal Financial Videos.” Or just click here.

Community Advantage counselors are available Monday through Thursday 8 a.m. to 10 p.m. (EST), Friday 8 a.m. to 7 p.m. and Saturday from 9 a.m. to 1 p.m. To use this free service, simply call 1-866-MYBANK9 (692-2659) or visit them on the web at www.communityadvantage1.com

Your Voice Matters

2009-08-04T10:44:00.002-04:00

I just returned from a three day visit to Washington, D.C., the purpose of which included visits with U.S. Senators and Representatives, speeches from politicians and bureaucrats, and confabs with bankers from across the country, all to discuss, deliberate, dissect, and dispute recent proposals by the Obama administration to drastically change the regulation of the financial services industry. Throughout my entire visit I was haunted by the insidious feeling that no one is in control in D.C. Each voice rang out a different rhythm and sang a different tune. Each speaker brought a different perspective and drew a different conclusion. I finally stepped to the floor microphone in one of the sessions and told the Comptroller of the Currency, John C. Dugan, “I am really confused. Who’s in control?”

His answer underscored the slothful, fleeting, frustrating, slippery, grinding, beauty with which legislation is enacted in this democratic republic of ours. His response was something like this: The introduction of legislation by the Obama administration has invited a response. Hearings will be held. Testimony will be given and recorded. Those of us with a vested interest, and probably some with no vested interest, have an opportunity to provide our input to those who will eventually vote on its enactment. In the end, either a piece of legislation will appear from the throat of the sausage grinder or it won’t. It’s the American way.

Open debate forces us to distill and refine our opinions and attitudes. The process can sometimes be confrontational, sometimes cooperative. The greatest advantage is that no one person or entity is in control. The process is fluid, open to influence, unpredictable, and malleable. That means your voice matters. Your vote matters. Your letter to the editor and to your elected representative matters. Celebrate the fact that no one in D.C. is in control. God bless the U.S.A.!

Live on BankTalk Radio

2009-07-06T15:26:00.004-04:00

I would like to personally invite you to join me on BankTalkRadio.net. Listen live on Wednesday July 8 at 4 PM eastern/1 PM Pacific or access the recording at http://banktalkradio.net/ or from iTunes.
Jeff Simpkins (blog.CommunityBankConsulting.com) will be conducting the interview due to my recent selection as Michigan Banker of the Year by the Michigan Bankers Association. In spite of operating in a state with one of the highest rates of unemployment and most challenging economies in the nation, Farmers State Bank continues to serve customers well and focus on the products and services that matter most in this economy. Farmers State Bank is a small bank at approximately $63 million in assets with three rural locations in Munith, Stockbridge, and Grass Lake, but we like to THINK BIG utilizing technology tools that other much larger banks are afraid of... blogging, Twitter, mobile banking, etc. Join us on July 8, at 4 PM EDT for this enlightening discussion as we share insights and tips for thriving in unusual times.

New Good Sense Budget Course

2009-06-09T16:22:00.001-04:00

Good $ense Budget Course
Presented by:
Craig Goodlock
Chairman and Chief Executive Officer of Farmers State Bank

Six Monday evenings
July 6 – Aug. 24
(no class July 20 & 27)
7:00 p.m. to 8:30 p.m.
Millville United Methodist Church
1932 N. M-52, Stockbridge, MI
Ph: 517.851.7853
Workbook fee: $10.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:
 Prioritize financial goals
 Develop a personalized spending plan
 Identify action steps to reduce expenses
 Reduce debt, and much more!
More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship to God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

For curriculum information call Craig at 517.596.2311 or
email cgoodlock@farmerstatebank.com
To register call Joann at Millville UMC 517.851.7853
Child care provided at no additional charge.
Sponsored by Millville United Methodist Church and Farmers State Bank.

Today’s Children Are Getting Short-Changed

2009-06-02T10:14:00.004-04:00

Recent Article From The Weekly Pride
by Julie Glair

Are today’s children getting shortchanged
in their education about
economics? Many say a resounding
“YES!” With the economy in its current
condition, it seems that it is time, if not
past-time, for us to take a more active
role in teaching our next generation about
the importance of money management.
After-all, it seems several generations
have dropped the ball when it comes to
budgeting, saving, ‘don’t spend what you
don’t have’, and other financial basics.
So, whose job is it, anyway? Are the
schools supposed to offer financial
basics? Or are parents responsible for
this area of learning? Should this be
taught to elementary age children only or
should it be a part of school curriculum
through high school?
When Craig Goodlock, President/
CEO of Farmers State Bank was asked
whether banks held a roll in our
children’s financial educations, he
quickly affirmed “Yes, in fact I will be
going to Smith Elementary tomorrow to
share “Math Day” with kindergarten, first
and second graders. I will be taking coin
purses with each type of coin in them for
each child. We will then go through the
values of each coin, how to add and
subtract them, etc. It’s never too early to
teach economics. It’s a huge part of all of
our lives.”
We see elementary and middle school
kids being exposed to some form of
savings program when the banks and
credit unions come to the schools and
help the children set-up savings accounts.
They generally send tellers once a week
to accept deposits for their accounts. In
Stockbridge, for example, the program is
called "Dollars for DC" and is offered
to the middle school by Farmers State
Bank. Beginning in sixth grade, students
are able to save by making weekly
deposits. This enables them to go on their
class field trip to Washington, D.C., that
takes place near the end of eighth grade.
“I go to the Consumer Economics
Class at the high school and run through the
entire process of applying for a loan with
the students. Many adults don’t have any
idea where to begin, so I’m glad to take
the time to help teach our young people,”
says Goodlock.
There are many resources available to
all of us. Locally, “Good Sense Budget
Course” is routinely offered through
Stockbridge Community Education.
Dave Ramsey’s course “Financial Peace
University” is also available locally
(details at www.daveramsey.com). On
line, many websites are available and
filled with helpful information, a few
suggestions are:
www.teachchildrentosave.com ~then go
to “Beginner’s Budget” and/or “Get
Smart About Credit”
www.jumpstart.org ~ then have your
teens go to “Reality Check”
www.farmerstatebank.com ~then enter in
Search box: “BudgetSmart” for FREE
Software.
“I really feel at the high school level,
financial education falls off…It’s a weak
area that really needs to be worked on.”
Craig Goodlock continues, “The NEFE
High School Financial Planning Program
(http://hsfpp.nefe.org/) is a great resource
for schools. Also, all the materials
needed for teachers and students are
completely free.”
The Michigan State Legislature put a
bill into law in December, 2008
authorizing schools to grant graduating
credit for financial literacy courses. In
order to receive a high school diploma,
students are required to successfully
complete at least four credits in math,
including algebra I, geometry and algebra
II. Now, financial literacy courses can be
included in the four credit requirement.
“Financial literacy courses are some
of the most popular because they are
practical,” says State Sen. Switalski of
Roseville, who wrote the legislation.
“Here’s the one thing (students) will use
every day, because it will have a practical
effect on their lives.”
“Parents are vital in upgrading the
financial literacy of our children. Schools
are important, but mom and dad are the
greatest influence and really need to
carry the ball”, says Goodlock.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Get Involved, Stay Involved

2009-05-27T10:13:00.003-04:00

Following is an outline of a speech I gave at the Group E meeting of the Michigan Bankers Association at the Marshall Country Club, Marshall, MI, on May 21, 2009.

With the current economic turmoil and the unprecedented governmental fiscal intervention occurring because of it our nation is experiencing a period of change that will be seen by history as a watermark period in American society, perhaps the dawning of a new era. The three primary areas of change are these.
A. Sources of Information/Centers of Influence
B. Role of Government
C. Attitude toward Capitalism

A. Sources of Information/Centers of Influence
Observe these recent headlines:
St. Paul Paper Seeking $2.4 Million in Union Concessions
More Budget Cuts, Job Losses to Hit Detroit Dailies
Bankruptcy Court OKs Tribune Bonus Payout
Layoff Ax Swings Again At 'Sun-Sentinel'
SPECIAL REPORT: Bankruptcy -- For Newspapers, The End or The
Beginning?
Newspapers are failing as people turn to other sources for information because:
1. Technology via the internet allows instantaneous interactive informational presentation such as this AP site depicting economic stress by county found at http://hosted.ap.org/dynamic/files/specials/interactives/_national/stress_index/index.html?SITE=YAHOO&SECTION=HOME
2. People have more media delivery options available than ever before as evidenced by these numbers quoted in an article featuring Eric Cook of WSI Internet Consulting entitled Businesses are Tuning into Social Networking by Olivia Pulsinelli | Business Review Western Michigan, Thursday, April 02, 2009, 7:59 AM: Facebook has more than 175 million active users…The smaller LinkedIn, with 36 million members, and Twitter with some five million users…
What will be the new centers of influence in our country? Where will people turn for information? What role will bankers take in providing information? Are we as bankers embracing new communications technology and options? How many are blogging, on Facebook, or LinkedIn?

B. Role of Government
What does it mean today to be a citizen of the United States of America? Does it mean sitting placidly and mindlessly while feeding at the public trough? Does it mean letting the government decide life’s difficult choices? Who won the battle commencing with the attacks of 9/11 given that US Mail to Congress takes 3 months to arrive since it has to be tested for anthrax, “flower planters” are now more proliferate on the streets of DC than people (pre-9/11 those weren’t there and neither were the metal detectors in every building in DC)? Wasn’t one of the reasons that term limits were enacted in Michigan being the idea that it would allow people who were not career politicians to serve in the legislature? How many of us bankers have given thought to taking 2 – 6 years off from our banking careers to serve as a real statesman in the legislature? Given the unprecedented intervention of federal agencies in the current economic crisis it is imperative to note the following quotes:
1. Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety. - Benjamin Franklin
2. Government is not reason, it is not eloquence — it is force! Like fire, it is a dangerous servant and a fearful master. Never for a moment should it be left to irresponsible action. - George Washington
3. We are a nation that has a government, not the other way around. – Ronald Reagan

C. Attitude toward Capitalism
The following quotes indicated by the numbers 1, 2, and 3 are from an AP article entitled: AP sources: White House Mulls Regulatory Panel by Martin Crutsinger dated May 20, 2009.
1. “The Obama administration, trying to crack down on abuses exposed by the financial crisis, is considering creation of a regulatory commission to protect consumers of financial products such as credit cards and mortgages, according to administration and industry officials.”
a. Were abuses happening before the credit crisis? Yes.
b. Are there laws already on the books to prosecute these? Yes
c. Do state and federal agencies responsible for this prosecution already exist? Yes.
d. Then hold those governmental agencies responsible for lack of prosecution and put those guilty of violations of law, whether agency or industry, behind bars.
2. “Geithner has said extensive changes were needed to make sure that the current financial crisis, the worst in seven decades, is never repeated.”
a. Is Giethner claiming, as have several recent treasury secretaries before him, that we can regulate an end to the business cycle?
b. Most of the history of mankind testifies against his ability to do so.
3. “The proposal the administration was considering would centralize the enforcement of laws that protect consumers of financial products, such as credit cards, mortgages and mutual funds.”
a. Protect consumers from whom? Us! Capitalists.
b. This administration is convinced that the very economic system that has made the U.S. the financial powerhouse of the world is inherently bad and that only governmental intervention will render it palatable.
D. Conclusion: During times of quick and drastic societal change one’s ability to influence is most critical. We are now living in such times. Get involved, stay involved, say your piece, say it loud, say it often. Community bankers are by definition influential in their communities. We bankers need to take advantage of that position to steer the course of this country’s economic and political policy.

The Co-signing Dilemma

2009-05-19T16:58:00.001-04:00

The following article is provided by Community Advantage, a not-for-profit organization with which Farmers State Bank partners to provide financial counseling and educational services. Given the difficult economic times, more borrowers are seeking cosigners to improve their chances of being approved for a loan. This article discusses some issues you should consider before agreeing to cosign a loan.

Community Advantage Partner Newsletter
The Co-signing Dilemma
CommunityConnections
Of course, you want to be helpful! When your nephew
asks you to co-sign a student loan, or a close family friend
asks you to co-sign on a personal or auto loan, your first
instinct is to say “Yes, of course I’ll help you.” But it may
hurt you in the long run.
As a co-signer, you agree to be a second party to a debt,
guaranteeing that it will be paid — whether the other party
pays or not. It is critical that you determine your risk.
Questions to ask yourself:
• How will the person you are co-signing for pay
the debt?
• What will happen if their employment situation
changes?
• If they cannot make the payment, can you make the
payment without putting your quality of life and other
necessary payments in jeopardy?
• Are you all right with taking a negative hit to your
own credit score/credit report if the person you
co-sign for stops paying before you find out the
responsibility is yours?
• Why does this person need a co-signer? Lenders
usually require a co-signer when they lack faith in the
person’s ability to repay the funds.
• Are you applying for a loan soon? If so, will this
additional debt on your credit report make you
appear overextended?
• Considering all of the risks, is this the best financial
decision for both you and the person you are
signing for?
While some people view co-signing as a formality that can
help someone get a loan, it is much more than that, as many
have learned the hard way. Knowing what you are getting
into — and considering alternate ways to help out — are
critical steps in the process of making your decision. Think
it through and take the step that’s best for you and your credit.

We'll Miss You, Rial

2009-05-08T09:46:00.005-04:00

Having retired from the Board of Directors of Farmers State Bank, Rial Ashmore of Stockbridge was honored at the bank’s recent 87th annual stockholders meeting for his twenty one years of service on the bank’s board. Mr. Ashmore served the last sixteen of those years as the board chairman. In presenting Mr. Ashmore with a plaque commemorating his service, bank President and Chief Executive Officer, Craig Goodlock, remarked, “Rial has been a great chairman, mentor, and friend. His leadership has kept the bank focused on serving the communities in which we operate with products and personnel structured for the success of those communities. He will be missed.” A delegation of staff representatives was also present at the meeting and gathered at the podium to express their appreciation for Rial’s leadership and service. Following the staff remarks Mr. Ashmore received a standing ovation from the entire assembly.

In action taken at the board organizational meeting immediately following the stockholders meeting Craig Goodlock was elected Chairman and Chief Executive Officer of the bank. Jeanne Richter was elected President, Chief Financial Officer, and Cashier. Leonard Clark retained his position as Secretary.

Founded in 1922 Farmers State Bank is a locally owned community bank with offices in Munith, Stockbridge, and Grass Lake offering a wide variety of financial services including 24/7 cell phone access to deposit accounts through an innovative mobile banking product.

WOW! They're Buying What They Need!

2009-03-05T10:48:00.002-05:00

As we are asking ourselves how the U.S. economy ever got into the sorry state we are now experiencing, it is pertinent to reflect on the following quote from a Bloomberg news article by Bob Willis and Timothy R. Homan published Feb. 24., “The customer’s very tentative,” J.C. Penney Co.’s Chief Executive Officer Myron Ullman said on a conference call with investors this month. “They’re buying what they need and they’re being very smart about how they spend their money.” Wow! I find it amazing that consumers acting in a sane, rational, disciplined manner would be news worthy! But, that’s exactly what we are NOT used to hearing. For years conservative economists have criticized the U. S. consumer for not saving, not investing, and converting the equity in our homes to cash for instant gratification. Now that the American consumer is being rational, we’re making world business news. I advise ignoring the calls to stimulate economic recovery by borrowing more and spending more. Reasonably sustainable economic growth is best fueled with a healthy savings rate providing funds for business and industry to invest in fixed assets and research and development and a prudent consumer buying quality goods from

George and Abe

2009-02-10T18:04:00.002-05:00

Traditional Bank Lending Is Available

2009-01-24T12:21:00.003-05:00

With all the press about the credit crunch, reported as the “fact” that banks are not lending, and the contention by some economists and politicians that it is this supposed lack of lending by banks that is a primary cause of the economic stress we are all experiencing, I believe it is necessary to clarify the situation. What follows is a news release from the American Bankers Association dated Jan. 15, 2009.

A simple fact that surprises everyone is that Federal Reserve statistics show that traditional bank lending increased slightly in 2008, despite the recession, ABA President and CEO Ed Yingling said during an interview yesterday on the CNBC television network.

"The problem is people hear that credit's not available, and they assume that banks aren't lending in the traditional way," Yingling said. "Traditional bank lending is only one-third of the credit market. If you look at the other two-thirds -- nonbanks and securitization -- they absolutely went off the cliff [in 2008]."

He assured viewers that banks are in a position to lend, and they want to lend. "Obviously, they want to make good loans, but you have to have an economy where people have jobs and are buying," Yingling said. "That's what will really get the lending going -- and the economy going." (end of news release)

Most financial institutions are ready and willing to provide loans under the same circumstances as ever – to persons with a good credit history and evidence of the willingness and ability to pay the loan back subject to the relative assurance of a continuing source of income. Proper down payment, equity, or collateral are required in some situations. Rates and terms vary depending on the particular circumstances. Despite the news reports, one would be in error to assume that banks are unwilling to make loans these days. It simply is not true.

Treasures In Heaven

2009-01-09T15:59:00.003-05:00

I am receiving many questions as people try to comprehend what is occurring in the world economy these days. Let’s look at some Financial FUNdamentals. Necessary within the capitalistic economic structure is the possibility of financial failure. The potential for economic gain always comes with the risk of loss. Typically, the greater the potential gain the greater the potential loss. This is some of what we are experiencing now. The world economy has experienced a prolonged period of economic gain. During this period many companies and individuals took on more and more risk as they sought more and more gain. The prolonged “good times” of the past couple of decades caused many to overlook or ignore the risks that were being incurred.
Taking on additional debt in the pursuit of additional gain always exacerbates risks, both for individuals and for businesses. As long as sales or incomes increase, the additional debt can be retired. But, have a blip occur in the flow of cash, and disaster is immediate and swift as the ramifications of unpaid or delinquent debt are manifest. This is what is happening within our economy today.
For years the pace at which we Americans saved money has been negative as our spending increased beyond our earnings. In other words, rather than curbing our spending to keep pace with or lag behind our earning power, we maintained or even increased our standard of living beyond our earning power by borrowing against the equity in our homes and against our credit cards – always reaching beyond our means to have the things we wanted more than needed. We are now paying the price of this extravagance with an economy desperately trying to bring itself back into balance.
The lesson to be learned very simply is this biblical principle: "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also. Matt. 6:19-21

Good $ense Budget Course

2009-01-02T16:48:00.000-05:00

Good $ense Budget Course
Presented by:
Craig Goodlock
President and Chief Executive Officer of Farmers State Bank

Six Thursday evenings
Jan. 22 – Feb. 26, 2009
7:00 p.m. to 8:15 p.m.
Stockbridge Middle School

Workbook fee: $12.00 per household

In the Good $ense Budget Course you’ll discover tools and develop skills to help you control your finances so your finances don’t end up controlling you. You’ll get training in biblical financial principles as well as help and guidance to:

 Prioritize financial goals
 Develop a personalized spending plan
 Identify action steps to reduce expenses
 Reduce debt, and much more!

More than just a learning experience about budgets and finances, this course also enables you to reflect on your relationship to money and how it impacts your relationship with God. No matter what your circumstances—financial crisis or abundance—Good $ense can help you!

To register contact Stockbridge Community Education at 517.851.8222
For more information email cgoodlock@farmerstatebank.com or call Craig at 517.596.2311. Sponsored by Farmers State Bank and Stockbridge Community Education

Making Good Budget Decisions

2008-12-24T11:00:00.001-05:00

I wrote this in May of 2008. Who knew gas prices would fall so rapidly and suddenly $4.00 gas would not be our biggest concern? But I think the concerns I've raised are still valid and we still need to think about a Good $ense Budget for 2009

With gas prices at $4.00 per gallon, all the talk about “global warming” and “going green,” and given America’s penchant for new cars, I’m beginning to get a number of customers asking about the economics involved with selling or trading their old gas guzzler and buying a new more fuel efficient mode of transportation. Obviously, many people are thinking this way as an AP article that ran several days ago detailed auto dealers’ experience with the increased interest in smaller cars culminating in bidding wars occurring right at the dealership – small cars selling for more than the asking price.

The first economic principle to recognize here is that too many dollars chasing too few goods will result in a higher price for the goods. In other words, if everyone wants the same thing that you want, and there’s a limited supply of that thing that you all want, you’re likely to end up paying too much for it. Prices for small cars are likely to be inordinately high for some time.

Also, I’ve run some numbers and discovered the following. If you borrow $20,000 for a new smaller car and run the payments over five years at six percent interest you’ll end up paying about $23,200 for the car including interest. With gas at $4 per gallon you could have purchased 5800 gallons of gas with that money. If your old gas guzzler gets 15 miles per gallon, you can drive 87,000 miles with the money you’ll spend on that new car. As I teach in my Good$ense Budget Class, typically, with very few exceptions, the cheapest car you can own is the one you already have.

Times are tough for quite a few people. Many are living paycheck to paycheck or worse. Don’t let the hype over gas prices cause you to make a purchase that ends up being less beneficial than expected.

Watching Interest Rates

2008-12-24T10:56:00.000-05:00

Many of my customers are perplexed by the lack of reduction in mortgage interest rates of late given the continuing Federal Reserve Bank’s lowering of the Fed Funds interest rate target. Here are a couple of the reasons.

For a number of years now most residential real estate mortgages in the United States have been sold by the originating institution to a pooling agency such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) shortly after closing the loan with the borrower. The pooling agency bundles individual mortgages together with others of similar characteristics and sells those bundles to investors, a process called securitization. Historically, this has allowed mortgage interest rates to fluctuate in very close proximity to other rates in the economy such as treasury bonds. The ease of trading these securities among many investors is what provided liquidity to the mortgage market driving mortgage interest rates down.

Recently, however, because of the increase in defaults on mortgages resulting from the sub-prime mortgage debacle, reduced economic activity and employment, increasing interest rates in 2007, and ever decreasing real estate values caused by all these factors, a vast majority of the prior investors in mortgage backed securities are no longer buying, or are only willing to buy at prices that will insure greater returns. Two basic financial principles are at work here. Firstly, fewer buyers for a given supply of goods results in lower prices. Secondly, the greater the perceived risk of an investment the greater the required return by an investor.

With fewer buyers willing to invest in mortgaged backed securities, the price they are willing to pay goes down which means the rate of return (the interest rate of the loan) must be higher to entice them to buy. With the recent actual losses in the mortgage market investors require a greater rate of return to cover their perceived potential risk of future loss. These two factors combine to keep mortgage rates higher than they might otherwise be.

What is meant by "tightening of credit"?

2008-12-24T10:44:00.000-05:00

Much is being written and said these days about a tightening of credit within the financial services industry. What is meant by a “tightening of credit?” Usually, this means that banks and other providers of credit are less willing to make loans as they want to reduce the risk of loss within their loan portfolio. Right now this attitude of reducing risk is being fueled by the increasing numbers of foreclosures and defaults on existing loans coupled with and cause by a weak economy. To reduce the number of loans that are written in a consistent manner, lending procedures and policies will be changed to require higher down payments for purchases, or require that total debts compared to total income are lower than otherwise, or by raising the minimum credit score required to obtain a loan.

While some institutions are doing exactly what is described above, most of us are still very interested in making good loans to good borrowers who pay their bills in a timely manner and manage their finances wisely. In fact, for most of the community bankers with whom I talk the slow economy has reduced their loan demand so they’re “chomping at the bit” for quality loans. I’ve written in this column before about the importance of wisely managing one’s finances. Times like now highlight very clearly why it is so vital to do so. While credit may tighten for those with marginal credit scores, high levels of debt, or no down payment, there are plenty of lenders ready and willing to write loans for those who manage their money wisely.