First United Bank and Trust Co. Rural Enterprises of

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					        Joint Oppor tunities for Building Success

 First United Bank
   and Trust Co.                      2005 $25,000
                                   JOBS grant applied
                                  toward marketing of
Rural Enterprises of                  International
    Oklahoma                        Resource Center
                          Joint Oppor tunities for Building Success Program

    Joint Opportunities for Building Success (JOBS)
    is an economic development funding program that assists FHLBank
    members in promoting employment growth in their communities.
    FHLBank Topeka has allocated $1 million for JOBS annually.

    Recommended uses                 Competitive fac tors

    Reduce interest cost on          At the program’s inception in 2004, FHLBank set aside $500,000 for JOBS.
    small business loans             Due to an overwhelming response to the program and demonstrated need
                                     across the Tenth District, FHLBank raised the grant total from $500,000 to
    Fund a micro-loan pool
                                     $1 million in 2005. “The application process is very competitive,” said Mark
    as part of a community’s
                                     Ward, FHLBank community programs manager. “First United Bank and Trust
    development program
                                     scored well on many factors considered within the JOBS program. They also
                                     demonstrated how the JOBS funds would be used to bring in 610 jobs to rural
    Facilitate entrepreneurship      Oklahoma.”
    training in the community
    and fund fixed-rate loans to
    viable small business projects
                                        Employment impact                            Use of multiple FHLBank
    Collaborate with recently                                                        products for project
    established resources such          Viability of project and
    as the New Market Tax               readiness to proceed                         Member use of FHLBank
    Credits and the Community                                                        products and services
                                        Community needs
    Development Financial
                                                                                     Distribution of funding
    Institutions programs               Community participation                      throughout the Tenth District
    Enhance equity financing
    through Small Business
    Investment Corporation
                                     Par ticipation requirements
                                     FHLBank members can receive an annual maximum of $25,000 total in
                                     JOBS funds, with each project limited to $25,000. Loan pools and similar
                                     funding mechanisms are eligible to receive more than one JOBS award
                                     annually provided there is an eligible project in the pool for each JOBS
                                     application funded. JOBS funds may be used in conjunction with other
                                     FHLBank products and programs, except the Affordable Housing Program
                                     (AHP) and AHP set-aside programs (Rural First-time Homebuyer Program
                                     and Targeted Ownership Program).

2                                                                  denotes REI’s qualifications
                                                                                              $25,000 JOBS
First United Bank and Trust Co.                                                               Grant:
                                                                                              REI’s Demographic
First United Bank and Trust was established in 1900 with $50,000 in capital from its          Snapshot
initial investors. Today, with more than $1.5 billion in total assets, First United Bank is
one of the largest privately owned banks in the United States. As one of the largest bank-    County:
ing organizations in the southwest, First United focuses on retail and community banking,     Statewide
targeting consumers and small-to-mid-sized businesses within its market areas. First United
and its more than 550 employees have a network of 26 community bank locations serving         Census Tract:
more than 90,000 customers throughout Oklahoma and north Texas.                               Statewide

                                                                                              U.S. Congressional
First United Bank and Trust has been an FHLBank member since 1994. Currently,
First United is a strong FHLBank advance customer and has the second largest number
of FHLBank Letters of Credit outstanding in Oklahoma. It has also drawn down
several CDP advances to foster economic development in the communities it serves,             Number of
and participates in FHLBank Topeka’s Affordable Housing Program and Rural First-time          Jobs Created:
Homebuyer Program.                                                                            610

FHLBank Member: First United Bank and Trust Co.                                               Number of
Greg Massey, President and CEO                                                                Jobs Retained:
1400 West Main | Durant, Oklahoma 74701                                                       0
580.924.2256 | |
                                                                                              Scattered Site:
                                                                                              No; Rural

Rural Enterprises of Oklahoma                                                                 Other Funding
                                                                                              Oklahoma Dept. of
Rural Enterprises of Oklahoma (REI) is a private 501(c)(3) community and economic
                                                                                              Commerce; Oklahoma
development organization. REI had its beginning in the small business lending arena.          Dept. of Agriculture;
Today it has evolved into a multi-faceted economic development organization that has          Other Grants
become the model of study for effective economic development services. Headquartered
in Durant, Okla., REI has established branch offices in Oklahoma City and Tulsa.
REI manages business incubators in 11 Oklahoma communities; offers affordable hous-
ing opportunities for Oklahoma working families; provides international trade assistance
to Oklahoma businesses; offers a variety of business lending programs; targets Oklahoma’s
women-owned businesses with services of the Women’s Business Center; offers an equip-
ment lease/purchase program designed to assist small, rural manufacturers; and REI
New Markets Investment, LLC administers the New Markets Tax Credit Program to
bring new investments into low-income communities.

REI has a team of 35 economic development professionals who have been expanding
Oklahoma’s economy since 1982. REI has a statewide network of partners to help
deliver its programs across Oklahoma.

Nonprofit Partner: Rural Enterprises of Oklahoma
Tom Seth Smith, President and CEO
2912 Enterprise Boulevard | Durant, Oklahoma 74701
580.924.5094 | |

    REI’s JOBS Grant Use: International Resource Center

    Total development cost:                   $565,000                                Gaining the
    JOBS grant:                               $25,000
                                                                                      $25,000 JOBS
    In 2005, REI and FHLBank member First United Bank and Trust Co. re-
    ceived a $25,000 JOBS grant to increase REI’s marketing of its international      grant, which we
    trade assistance services as well as a new International Resource Center. The
    15,000-square-foot facility is currently under construction within the Foreign
                                                                                      consider to be an
    Trade Zone that will provide space for office, manufacturing, assembly and
                                                                                      exciting partnership
    warehouse operations for an international-related business. Grant funds have
    already been used to develop a brochure with a map showing the location of        with the private sec-
    the Foreign Trade Zone in proximity to the Dallas/Fort Worth, Oklahoma City
    and Tulsa markets. The brochure also lists the Foreign Trade Zone’s benefits,      tor and First United,
    while other marketing efforts have included direct mail campaigns, Web site
    enhancements and outdoor signage for the Foreign Trade Zone.                      gives us combined
    REI began offering limited assistance in international trade in 1998 when it      federal, state and
    was awarded a Grant of Authority to operate Foreign Trade Zone #227 in
    Durant.                                                                           private resources

    “The greatest challenge for REI is in educating rural small businesses that the
                                                                                      that will advance
    global market need not intimidate them,” said Sherry Harlin, Business
                                                                                      our Foreign Trade
    Development director for REI. Any remaining JOBS grant funds will be used
    to continue marketing REI’s international trade assistance services to small      Zone efforts.
    businesses. “Our efforts will be concentrated on education and offering
    personal, one-on-one assistance to our clients.”
                                                                                      Tom Seth Smith
                                                                                      President and CEO
                                                                                      Rural Enterprise of Oklahoma
    Tom Seth Smith, president and CEO of
    REI, and Greg Massey, president and
    CEO of First United Bank and Trust
    in Durant, have worked together for
    more than 15 years to foster economic
    growth in Durant and communities
    throughout rural Oklahoma.

International Trade
Success Stories

One company that has used
REI’s resources to build itself
into a strong local business is
Allied Stone, Inc. The business
opened at REI’s Foreign Trade
Zone in 1998, the first year
the zone became available.
Jerry Lim, president of Allied
Stone, said he couldn’t have
made the transition to Durant
from his home country of
Malaysia without internation-
al assistance from Joy Rambo,      Jerry Lim, president of
                                   Allied Stone, Inc. employs 60
REI’s International Trade          people from the Durant area.
coordinator.                       Lim’s custom granite and
                                   marble company recently
                                   graduated from REI’s business
                                   incubator program and is one of
“We knew nothing about the         First United’s commercial customers.
U.S, or Durant, Oklahoma,
and Joy was able to provide
us resources to make that
transition possible,” he said.    Some companies that continue to benefit from REI’s international re-
Jerry graduated his granite,      sources include a Tulsa business that imports ethnic food products from
marble and tile company out       Jordan which received free counseling on how to start an import trade
of REI’s incubator program        business and an in-depth market study and goods classification. Texas
when he purchased his own         Wholesale Leather, currently using REI’s business incubator facilities,
manufacturing space in 2005.      has benefited from REI’s technical and business assistance in import-
His company, specializing in      ing leather goods. Sherry says Texas Wholesale Leather may soon grow
exotic imported granite and       large enough to move into its own facility and expand its global market.
marble, currently employs
nearly 60 people. In 1998,        “These are the success stories that REI hopes to continue sharing as we
the company made $20,000          develop our International Resource Center and continue marketing our
profit. Today, Allied Stone’s      Foreign Trade Zone,” said REI president and CEO, Tom Seth Smith.
largest customers include         With assistance from First United Bank and Trust Co. and FHLBank,
National Builders and Lowe’s,     we’re a step closer in the right direction.”
with profits exceeding $9
million per year.
                                  First United’s JOBS Application Process
“We believe Oklahoma’s
small businesses must explore     Greg Massey, president and CEO of First United, remarked on how easy it
global markets in order to        was for them to complete the FHLBank JOBS application. “We appreciate the
stay competitive,” Joy ex-        short and concise grant application process and prompt course of action by
plained. “And REI is the only     FHLBank Topeka to grant the JOBS request and fund the project,” he said.
rural nonprofit organization       “This is a great opportunity to be part of something that bankers might not
that caters to the needs of       otherwise consider because it’s not part of the customary banking services.
local companies.”                 Ultimately, we all benefit!”

    Banker and Nonprofit Partnership

    Greg has been a long-time Durant resident as well as a former board member
    of REI. One of REI’s primary missions when they first began was small busi-
    ness lending. “Our first partnership was through small lending customers that
    we couldn’t get approved at First United,” Greg said. “REI had programs that
    could help us get financing for small business customers, and we’ve worked
    together for years. We’ve had several customers at First United that have used
    REI’s incubators and Foreign Trade Zone, including Allied Stone, Inc. We want
    to help REI in any way we can to enhance those customers,” he continued.

    FHLBank’s JOBS grant provided First United Bank the opportunity to continue
    supporting economic development. “Our banking institution does not have the
                                                                                      From left to right: Joy Rambo, REI
    staff or expertise to advise commercial customers in the areas of international   International Resource coordinator,
    trade,” Greg said. “However, when an organization like REI assumes this role      Tom Seth Smith, REI president and CEO
                                                                                      and Greg Massey, president and CEO of
    and helps businesses expand their markets, those businesses become more
                                                                                      First United Bank and Trust discuss how
    productive, create jobs, contribute more to the local economy and ultimately,     REI’s international services help rural
    First United reaps the benefits of a more prosperous commercial customer.”         Oklahoma businesses find new global

    What’s Ahead

    “With the expansion of our international trade assistance program, we’re
    hoping to help rural Oklahoma businesses grow and profit from the global
                                                                                      When an organiza-
    market,” said Sherry. “With the support of FHLBank Topeka, First United
                                                                                      tion like REI helps
    Bank and others, we expect at least 610 new jobs to be created over a five- to
    seven-year period as these companies benefit and grow from our services.”          businesses expand
    As new jobs emerge, Greg is acutely aware of the impact that kind of growth       their markets, those
    may have on communities. “Increased activity brings other challenges, such as
    workforce development, community infrastructure improvements, increased           businesses become
    student populations, and demand for affordable housing,” added Greg.
    “Right now, our housing need is the greatest for medium-sized homes in the        more productive,
    $80,000 to $100,000 range. These issues must be dealt with while communi-
    ties must continue to build on their assets and make choices that balance the     create jobs, contrib-
    economic, social, and environmental conditions now and in the future.”
                                                                                      ute more to the local
                                                                                      economy and ulti-
                                                                                      mately, First United
                                                                                      reaps the benefits of
                                                                                      a more prosperous
                                                                                      commercial customer.
                                                                                      Greg Massey
                                                                                      President and CEO
                                                                                      First United Bank and Trust Co.