Bank Among Most Highly Capitalized

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					                        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
     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 – 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
from each bureau. If you are interested in what your
FICO score is, you may go to 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-, call 1-877-322-8228, or write to Annual                               ents that they may be eligible for a tax rebate under the
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                                            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 •
   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.