Two Names, One Great Bank American Dreams Come True Spring 2009 Bank ConneCtions Bank Among Most consumer news Highly Capitalized As a locally owned and managed community bank, Mortgage Applications American National (which includes American National and Peoples National Bank) has served local communities Up Over 150% with conservative practices and traditional products for Mortgage rates in the Omaha and surrounding area have more than a century. We remain stable, safe, sound and dipped below 5% Annual Percentage Rate on a 30 year secure. While some banks might be struggling, there are fixed rate. This is causing a surge in refinancing and new reasons why your deposits are safe at American National: home purchases. Locally, volume is up over 150% when • Highly Capitalized – American National’s capital comparing January 2009 to January 2008, with the bulk of – defined as Tangible Common Equity – was nearly it being in refinancing. Nationally, the Mortgage Bankers 9% (as of December 31, 2008); compared to money Association’s index of applications to purchase a home center banks which were much lower, ranging from or refinance a loan rose 21% to 876.9 in the week end- 1.5% to 3.8% (Source: SNL Financial). ing March 13, the highest in two months, from 723.4 the • Strong Earnings – American National has had a prior week. Buyers with vision, working with competent decade of consecutive yearly earnings at or above peer agents who know where the bargains are, have an open returns. It has been and continues to be one of the field to score some of the best deals we’ve seen in years. most efficiently run banks in America. Mortgage loan representatives are located at many of our offices, please call (402) 333-7900 to locate the one nearest • Liquidity – American National has strong liquidity. you, or go online to apply at www.anbank.com. It’s cash-on-hand liquidity and contingent liquidity exceeds all targets. • Assets – American National has a well-balanced and $8000 Tax Credit for diversified high quality asset portfolio. • 4-Star Rating – Bankrate.com has awarded Ameri- First-Time Homebuyers can National four stars as an indicator of a safety and Many first-time homebuyers have waited a long time to soundness. achieve their dreams of owning a home. Now they can • Community Bank Difference – We provide local achieve that goal at a price no one would have ever con- business loans, farm loans and home loans. American ceived of even a couple of years ago. In addition to low National did not invest in toxic assets as did some rates, The Recovery and Reinvestment Act provides for an money center banks. $8,000 tax credit for first-time home buyers for the pur- • Increased FDIC Coverage – Deposits are insured chase of a principal residence before December 1, 2009. by the FDIC to $250,000 per interest bearing account. In addition, first time homebuyers can benefit from pro- grams by the Nebraska Insurance Finance Authority • Bank Participation in the FDIC Transaction (NIFA) and the Iowa Finance Authority (IFA). The Account Guarantee Program ensures that any de- programs enable first time homebuyers, who meet certain posits in a non-interest bearing accounts are covered guidelines, to qualify for a low, fixed rate loans and a for the entire amount on deposit. lower down payment. With smart investing and financing We appreciate the trust you have placed in us. You can they can begin to build an even brighter financial future. rest assured that you and your financial needs are our first American National and Peoples National Bank offer the priority. You can count on us to provide the same excel- NIFA and IFA loans, please contact a mortgage loan repre- lent service and security that you’ve always expected. sentative for additional information. Bank ConneCtions is a Financial newsletter For our Valued customers This newsletter is provided for information purposes only. American National Bank and Peoples National Bank are not liable for any Member errors, omissions or misstatements. The information is believed to be reliable, but we do not warrant its completeness or accuracy. FDIC Bank ConneCtions Do You Know the SBA will have an impact, and may determine that the program be terminated earlier. Fee eliminations will Your FICO Score? be retroactive for all eligible loans approved on or after February 17, 2009. In this tight credit market, knowing your FICO Score might make it easier to get a loan. Many lenders use the SBA loan programs are available to start-up businesses as FICO score to make credit decisions. Introduced in the well as those that are already established. All applicants mid-1980s by the Fair Isaac Corporation, it rates your risk must meet certain SBA eligibility and credit requirements. of defaulting on a debt obligation on a scale of 300 (worst) In general, you must be organized for profit, meet SBA to 850 (best). Each lender looks at the scores differently, specific size standards, and be unable to obtain funding on but in today’s tight credit market, to qualify for the lowest reasonable terms through traditional lending channels. rates, you probably need a score of 720 or higher. To find out more about the new SBA program incentives Since each credit bureau has its own formula for calcu- and fee reductions contact a Business Banker at (402) 399- lating the FICO score, it is important to know the score 5000 or visit SBA.gov. from each bureau. If you are interested in what your FICO score is, you may go to www.myfico.com. This is Fraud Alert the official site to purchase a copy of your actual credit score from the three major credit reporting agencies. for Small Business Each score, accompanied by a credit report, can be pur- The U.S. Small Business Administration has issued a chased for $15.95. scam alert to small businesses that fraudulent letters If you would just like to order a free credit report, have been sent out on what appears to be SBA letterhead without the FICO scores, simply go to www.annualcre- to small businesses across the country, advising recipi- ditreport.com, call 1-877-322-8228, or write to Annual ents that they may be eligible for a tax rebate under the .O. Credit Report Request Service, P Box 105281, Atlanta, Economic Stimulus Act, and that SBA is assessing their GA 30348-5281. eligibility for such a rebate. The letter asks the small busi- ness to provide the name of its bank and account number. These letters have not been sent by or authorized by the Business corner SBA, and all small businesses are strongly advised not to respond to them. Stimulus Bill Impacts Small Businesses Healthcare Banking Division The American Recovery and Reinvestment Act contains Addresses Growing Market a package of loan fee reductions, higher guarantees, new As baby boomers get older, they have demonstrated a Small Business Association (SBA) programs, secondary clear propensity to consume increasing amounts of medi- market incentives, and enhancements to current SBA cal goods and services. The rate of growth for spending programs that will help unlock credit markets and begin in the U.S. over the past 10 years on medical care has economic recovery for the nation’s small business sector. increased by 4% per year (as measured by the Consumer There have been significant changes in the fee structures Price Index for All-Urban Consumers, Bureau of Labor associated with Small Business Administration loans, in Statistics, U.S. Department of Labor). Medical care is now both the traditional 7a program and the popular 504c pro- the top-ranked category in terms of personal consumption gram. For complete details visit SBA.gov. expenditures, well ahead of food products, transportation, In the 7a guaranty program, SBA’s most popular, the “up- and even housing. Medical care currently accounts for front fee” which can be as high as 3.5% has been elimi- nearly one-fifth of all U.S. Consumer spending. nated, for loans made after February 17, 2009. While the To meet the needs of this growing industry, American ongoing lender fee continues, this up front fee elimina- National has been offering several products, Long Term tion will eliminate a continued cost to the program. In Care Insurance and Health Savings Accounts to individu- addition, to the lessened fee amount the guaranty percent- als. In addition, a new Healthcare Banking division will age to bank as lender has been increased to a maximum serve the banking needs of healthcare professionals in of 90%, excluding SBA EXPRESS loans, which remain at private practice, medical clinics, surgery centers, hospitals 50% guaranty level. and medically related manufacturing businesses by offer- The 504c program, for loans approved after February 17, ing innovative financial products that streamline patient 2009, the Third Party fee and the CDC fee are eliminated. payment and simplify business management. This will result in significant savings to borrowers. Ex- For more information regarding the Healthcare Division, ample: For a $1,000,000 loan the savings total $15,000.00. contact Ed Finan, vice president of Healthcare Banking, It is anticipated that these changes will be available until at (402) 399-5028 or Briana Ryan, assistant vice president, December 31, 2009, but volumes of loans approved to Healthcare Banking, at (402) 399-5063. Customer Service 1-800-279-0007 • Omaha 402-457-1077 • Council Bluffs 712-328-2449 • www.anbank.com American National Corporation operates 29 banking locations in Nebraska and Iowa under the names American National Bank and Peoples National Bank, respectively. With assets of over $1.6 billion, American National Corporation is the second largest in-market financial institution under local ownership.