FirstFocus Fa l l 2 0 0 3
Boost Your Online
First National Bank has
2-for-1 Ticket Offers for Sports Fans! scheduled a wide range of
financial seminars for this fall
and winter. These educational
First National Bank is teaming up with Creighton University and The University of
presentations are designed to
Nebraska at Omaha to welcome college sports to the Midwest’s newest arena —
keep you informed about
Qwest Center Omaha. As a First National Bank customer, you can be a part of the
important issues relating to
excitement! Just use your First National Bank Omaha Visa® Check or Credit Card to
your money. If you missed
purchase a ticket to one of the games listed below and get a second ticket free! To
any of these seminars in the
take advantage of this offer, visit the Qwest Center Omaha Box Office, mention the
past, now is your chance to
2-for-1 offer and use your First National Bank Omaha Visa Card.
attend. All seminars are free
of charge and open to the
Bluejay Maverick public.
Basketball Hockey Kids’ Banking Seminar
Children between the
Nov. 22, 2003 Nov. 7, 2003 ages of 6 and 12 are wel-
San Diego 7:05 p.m. Lake Superior State 7:05 p.m. come to attend our popular
Kids’ Banking Seminar on
Nov. 29, 2003 Nov. 8, 2003 Saturday, December 6 or
St. Bonaventure 1:05 p.m. Lake Superior State 7:05 p.m. Saturday, January 24.
Dec. 3, 2003 Nov. 14, 2003 The classes will offer intro-
Bethune-Cookman 7:05 p.m. Northern Michigan 7:05 p.m. ductory lessons about
First National Bank (and
Dec. 6, 2003 Nov. 15, 2003 banking in general) and
Delaware State 1:05 p.m. Northern Michigan 7:05 p.m.
how to save and spend
money wisely. After each
Note: All games and times are subject to change. 2-for-1 offer and tickets are subject to avail- session, children will receive
ability. Free ticket(s) must be of equal or lesser value. 2-for-1 offer is good on up to four tickets a $10 voucher to deposit
(two paid and two free) per game for the same event. Tickets must be purchased at the Qwest into a new or existing First
Center Omaha Box Office using a First National Bank Omaha Visa Check or Credit Card. ■ National savings account.
To enroll your child, call our
reservation line at 964-8401
New Locations or log on to our website at
First National Bank understands that even in today’s high tech world, sometimes there’s no
Long-term Care Seminars
substitute for cash.
What is long-term care insur-
Next time you find yourself in need of an ATM, just look for one displaying the logo at ance? Who needs it? What are
places like: the costs? Get the answers to
• Qwest Center Omaha — No need to stop at the ATM before the game or concert. First all of your questions at our
National Bank is excited to be the exclusive provider of banking services at the Qwest Center Long-term Care Seminars.
Omaha. You’ll find convenient ATM locations throughout the Qwest Center Omaha complex. We are offering sessions on
• Nebraska Furniture Mart — First National Bank has teamed with Nebraska Furniture Mart to Tuesday, November 25 and
bring you two new ATM locations. Whether you are shopping at Nebraska Furniture Mart’s Tuesday, January 27. For more
main store, here in Omaha, or checking out their newest store in Kansas City, Kansas, you’ll information or to RSVP ,
find an ATM for your banking needs. please call 402-964-8400.
Space is limited, so reserve
• Memorial Stadium — Headed to Memorial Stadium for a Nebraska game? You’ll find new ATM
your spot today.
locations inside both the East and West stadiums. These new ATM locations are in addition to
the existing locations at the Stadium Ticket Office and UNL Bookstore.
For a complete listing of the more than 270 locations, visit us online at
www.firstnational.com or contact a Personal Banker. ■
Buying Rental Property
Rental Real Estate —
Is It for You?
What’s not to like? As the owner of residential rental property, you can look forward to a regular stream
of income, tax breaks and, quite possibly, a steady rise in the value of your property. As with most
business ventures, however, making money from a rental property is not a slam dunk: You have to fac-
tor in the potential impact of bad tenants, government red tape and maintenance costs.
Whether you’ve just bought your first rental property or you’re As the owner of a rental property, you’ll have to report the
thinking about taking the plunge, you’ll stand a much greater rental income you receive on your tax return. Within limits,
chance of succeeding if you spend some time learning about you can write off depreciation and other business expenses of
the pleasures — and the pitfalls — of owning rental real estate. the rental property. Consult your tax advisor for more informa-
Here’s a brief overview of some of the things you should know. tion on the tax aspects of owning rental property.
Find the Right Property Choose Tenants Carefully
Your first step should be to work with a real estate professional If the property you buy
who specializes in rental property and is familiar with the areas already has good ten-
you are interested in. Look for property with a solid, docu- ants, then you’re in
mented rental history. Make sure the property is in a stable or luck. However, tread
improving, low-crime neighborhood, preferably where real carefully if you have to
estate is appreciating in value. locate new tenants.
Also consider whether the pool of potential renters is likely to First, familiarize yourself
grow or decline. For example, buying property near a college with the laws — the
may make sense since students, administrators and academic federal Fair Housing Act,
staff typically want to live close to campus. On the other hand, for example, forbids dis-
you may want to think twice about buying property in an area crimination based on
where industries and businesses are struggling financially. race, color, national ori-
gin, religion, sex, family
Hire a home inspector or an engineer to evaluate the condi- status or disability. Also
tion of the building. If it needs work, get a contractor to pre- find out what questions
pare a quote outlining how much it will cost to make things you can and cannot ask
right. If the proposed cost of repairs will take several years to prospective tenants.
recover, it may be wise to look elsewhere.
When you interview prospective tenants, be up-front about
Do the Math your rules regarding issues such as pets, security deposits and
Is the asking price in line with similar properties that have paying for utilities. Carefully screening tenants early in the
recently sold in the same area? You don’t want to overpay since process can prevent headaches later on. Local laws may cap
that will cut into your future profits. rental amounts and rent increases, so be sure to find out if
You want to have a positive cash flow. Your cash flow from the these types of restrictions affect the property you’re considering.
property is rental income less all expenses, including your loan Meeting Your Mortgage Needs
payment, taxes and insurance, maintenance expenses and any Investing in rental property is a big step, but one that’s poten-
property management fees. Ask the seller to show you records tially very rewarding. First National Bank offers a comprehensive
from previous years and add up the total operating expenses range of mortgage products to meet your needs. You can choose
— water, electric and general maintenance costs. You can also a fixed or adjustable rate mortgage with a term that is appropri-
access previous years’ expenses from your local utility compa- ate for you. For more information, please call us at 498-5340.
nies. Once you have all the figures, you’ll be better able to see Outside Omaha, call 800-228-4411 extension 5340. ■
whether the income from rent will cover all your costs.
Boost Your Online Banking Power
Looking To Add a Little
Convenience to Your Busy Life?
At First National Bank, we want to make it easier for you to manage your money. That’s why we’re
pleased to introduce two new services available through First National Online at www.firstnational.com.
Online banking customers can now sign up to receive Priority Alerts, a simple, hassle-free way to track
your First National account events via e-mail. And BillPay customers can now take advantage of
MultiPay, a quick and convenient way for you to pay all of your bills on one web page.
Priority Alerts — We’ll Keep You Posted Priority Alerts make it easy to track your First National Bank
Let’s face it, you probably have better things to do than keep accounts. It’s simple to sign up and, best of all, the service is
track of your bank accounts. But it’s important to know free when you’re enrolled in online banking. Sign up for
what’s going on with your money. With Priority Alerts, you Priority Alerts today at www.firstnational.com.
can sign up to receive e-mail alerts for your First National
Bank checking, savings, money market, line of credit, CD,
IRA and credit card accounts. Here is a sampling of the alerts
that can help simplify your banking:
■ Statement Information Available — lets you know when
your statement information is available to view online
■ Nearing Potential Overdraft — alerts you when your
checking account balance falls below your predetermined
■ Balance Update — tells you when the balance on your
checking, savings or money market account falls below your
predetermined dollar amount
■Maturity Date — reminds you that your CD or IRA will
mature in 10 business days
■ Interest Paid — lets you know when interest is paid to
your CD or IRA
■ Payment Due — notifies you five to 15 days before your
line of credit or credit card payment is due
■ Payment Posted — announces that your payment has
posted to your credit card account or line of credit
■ Nearing Credit Limit — tells you that your line of credit
or credit card account balance is within your predetermined
■ Credit Advance — lets you know when a line of credit
advance is deposited to your checking account
MultiPay — Pay All Your Merchants on One Page
Did you know that over 13% of U.S. consumers are already
paying bills online — compared to only 2% in 1998? What’s
more, a report by Juniper Research indicates that by 2006,
52 million households will pay at least one of their bills online.
The numbers shouldn’t surprise you. Paying bills online can
save you both time and money.
First National Bank’s Online BillPay service allows you to
access, view and pay your bills over the Internet — anywhere,
anytime. And now, there’s even more. We’ve just added a new
feature to our BillPay service called MultiPay. With MultiPay,
you can quickly and easily pay all of your bills (up to 20 pay-
ments) on one web page. And best of all, BillPay is free with
our 360° Checking and Checking Plus accounts.* Other
features of BillPay allow you to:
■ Schedule one-time or recurring payments
■ View payment history on all your merchants
■ Check/change your pending payments
■ Pay anyone, anytime — 24 hours a day, 7 days a week
At First National Bank, we are confident that our new services
will help simplify your everyday life. If you already bank online,
simply sign up to receive Priority Alerts and be sure to take
advantage of MultiPay. If you don’t currently bank online,
you can enroll today at www.firstnational.com. ■
*BillPay is $3.95 per month for all other checking accounts, up to 20 payments. Each
additional payment is $.50.
Ideas from Investment One
New Tax Law Boosts Appeal
of Dividend-paying Stocks
Just as every wardrobe should contain some enduring classics, every portfolio should contain some
classic, time-tested investments. Dividend-paying stocks are one such classic.
Much of the investing public ignored dividend-paying stocks Don’t Focus on Yield Alone. You shouldn’t use a high dividend
during the highflying 1990s. But, historically, companies that yield as the only criteria for buying a stock. Here’s why. A $40
pay dividends to stockholders have often performed better stock with an annual dividend of $2 has a 5% yield. If the stock
than companies that don’t. For example, from 1980-2002, price falls to $20 and the dividend is unchanged, the yield has
dividend-paying stocks beat stocks that didn’t pay dividends doubled to 10%. In this case, a high dividend yield could be
by 2.7% a year.* a sign that the company may be underperforming because its
stock price has dropped significantly.
Now there’s one more compelling reason to consider including
dividend-paying stocks in a portfolio: The recent federal tax Look at History. Although there are no guarantees, a com-
law has slashed the rate at which dividends are taxed. Before pany that has a history of making regular dividend payments
the tax cut, individual investors paid taxes on dividends at is a good candidate to continue that practice. In addition, a
their regular tax rates, which ranged as high as 38.6%. The company that regularly increases the size of its dividend can
table shows the new, lower rates. be attractive since growing dividend yields enhance your
investment’s total return.
New Tax Rates on Dividends Build a Diversified Portfolio. While dividend-paying stocks
may deserve a place in your portfolio, don’t forget the impor-
Tax Bracket Dividend Rate
tance of spreading your investment risk by spreading your
Over 15% 15% investments among different asset classes. Diversification is
15% or 10% 5% critical to investment success.
The 5% rate will be 0% in 2008. After 2008, tax Talk to Us
rates revert to pre-2003 law.
There’s no substitute for experience, especially when it comes to
investing the money you’ve worked hard to accumulate. Come
Thanks to these changes, investors will be able to keep much
see us or call for more information on how our experienced
more of their dividend income. (Certain requirements apply.
Investment One Financial Advisors can help you choose the
Contact your tax advisor for specific information on the
investments that are right for you. Located at First National
recent tax law.)
Bank branches, Investment One can help you put together an
What They Are and Why They’re Important investment portfolio that meets your needs. Call us at 964-8400
Dividends are paid by publicly traded companies to their or 888-916-8378 to set up an appointment, or simply stop by
stockholders. Companies are not required to pay dividends, and ask to speak with an Investment One representative. ■
and many don’t. However, along with potential price apprecia- *Standard & Poor’s. Past performance does not guarantee future results.
tion, dividends have always been an important component of **“Why Is the Dividend Yield So Low?” John B. Carlson, Federal Reserve Bank of
stock returns. Cleveland; Standard & Poor’s.
Neither PrimeVest nor any of its representatives may give tax advice.
When comparing stocks, investors often look at a figure
called “dividend yield.” This figure represents a company’s
total dividends per share over the last four quarters expressed Not FDIC Insured
as a percentage of its current stock price. The dividend yield No Bank Guarantee
of the S&P 500 (an index of 500 large-company stocks) has May Lose Value
averaged about 4% since 1945, though it has fallen over the Securities and annuities offered Not a Deposit
past decade and currently stands at approximately 1.6%.** through PrimeVest Financial Not Insured by any
Services, Inc., an independent
registered broker/dealer. Member Federal Government
Do Some Research
NASD/SIPC. Insurance products Agency
Before you decide to include dividend-paying stocks in your provided through Investment
portfolio, keep these points in mind. One Insurance Services.
Small Business Strategies
It’s Up, It’s Down — Doing
Business in Uncertain Times
Like many other owners of small businesses, you may have had to struggle hard to keep the lights on,
the machines humming and your employees fully occupied during the recent economic slowdown.
However, bad economic times don’t last forever. Will you be ready to take advantage of the opportuni-
ties that will inevitably arise once the economy recovers? What steps can you take now that will boost
your bottom line and help ensure future growth? Here are some strategies to consider.
Focus on Cash Flow Thanks to the recent recession, you may find that this is a good time to
Understanding how to manage your cash flow can help you survive buy another business or add lucrative product lines at very attractive
down periods and position your business for future growth. Good cash prices.
management means maximizing your cash flow at all times.
Assess Your Needs
Start with your cash outflows (expenditures). If you automatically pay Every recession creates a pool of available talented workers. If your
your bills as soon as they arrive, you are giving up an opportunity to projections indicate that you will need additional employees to handle
earn interest on your cash reserves. an anticipated upturn in business, it
Unless you get a discount for early may be wise to start interviewing
payment, it’s usually better to pay job candidates now.
your bills as they come due.
If you need to replace or update
Consider using an automated
equipment, check bankruptcy or
accounts payable system to organize
other liquidation sales for deals on
your payments by due date.
good quality used equipment. Be
To maximize your cash inflows sure to analyze your space require-
(receipts), try to reduce the time it ments. Economic slowdowns tend
takes to convert a sale into cash. to depress real estate prices and
Make sure your invoices are clear rental rates, so this may be an ideal
and the due date stands out. Don’t time to add needed space at a
wait too long before you begin bargain price.
pursuing accounts with outstanding
Emphasize Customer Service
Customers want polite and prompt service and resent being put on
Here’s another tip: By refinancing high interest rate debt, you may be hold or having to wait. You can differentiate your business from the
able to lower your overall payments and improve your cash flow at the competition by emphasizing superior customer service. If you can’t
same time. Plus, if you are thinking of expanding your business, current afford to hire additional employees, focus on giving your customer
low interest rates make this an ideal time to borrow money to fund service staff the training, resources and support they need to provide
your growth plans. customers with consistently positive experiences.
Strengthen Your Competitive Position We Can Help
At the start of a recovery, customers who have delayed making pur- First National Bank is the bank for small businesses. Our staff of experi-
chases may be ready to start buying again. Position yourself to get their enced Small Business Bankers, conveniently located across the city, can
business by making more sales calls and increasing spending on adver- help you succeed. From banking to loans to retirement planning, First
tising. Moving quickly to establish a strong position in the marketplace National Bank is here for you. To learn more, visit any of our 20 loca-
now may give your business a head start on the competition. tions or call us at 341-0500. Outside of Omaha, call 800-228-4411. ■
First Equityline Makes Fall and
Winter Home Improvements Possible.
With rates so low, First Equityline line of credit allows you to pay down
has become a popular and affordable your balance at any time, which
choice among First National Bank means your unused credit is always
customers planning a fall or winter available. The savings can really
home improvement project. It’s also add up with First Equityline’s low
becoming the preferred way to pay variable rate, plus the interest you
off high interest debt, or pay for a pay may be tax deductible.**
winter cruise, ski trip, or even tuition.
Customers enjoy easy access
Unlock the value in your home. and convenience.
First Equityline gives you the First Equityline is so easy to use!
flexibility to borrow up to 100% of Simply write a check, or use your
your home’s equity.* This revolving First National Bank Visa® Check Card
when making a major purchase. You
First Equityline is the key to enhancing
IT PAYS TO REMODEL can even view your account and make
your home’s value, and so much more!
your payment online, absolutely free.
Home Return On Apply for First Equityline, or a low
Improvements Investment Start planning seasonal projects and fixed-rate home equity loan today.
Bathroom Remodel 91% purchases now! Visit any of our 20 convenient loca-
Bathroom Addition 81% Whether it’s cooking in a new kitchen, tions or call a Personal Banker at
Kitchen Remodel 80% entertaining in a finished rec room, or 342.LOAN (5626) or 800.214.5160
Basement Remodel 79% relaxing in a remodeled bathroom — outside Omaha.
Siding Replacement 79%
* First Equityline offer refers to a line of credit secured by your single family owner occupied home. Offer applies to residents of
Window Replacement 77% Nebraska and Harrison, Mills, and Pottawattamie Counties in Iowa. Appraisal may be required at borrower’s expense. Additional
Roof Replacement 67% fees and closing costs are at borrower’s expense. You must carry insurance on the property that secures this line. New Money
Only. Subject to credit qualifications. Some limitations will apply. Consumer lines of credit only. Approval and terms subject to
Realtor Magazine’s 2002 Cost vs. Value Report; average credit qualifications.
return on your investment national average
** Consult your tax advisor regarding the deductibility of interest and potential tax savings.
1620 Dodge Street PAID
Omaha NE 68197 FIRST NATIONAL BANK
24 Hour Banker Account AccessLine
First National Online Bank Locations & Hours
341-RATE (7283) 342-BANK (2265)
Visit www.firstnational.com 341-HOUR (4687)