Banking Industry Insights
ALL IN ONE BANKING: Why have your Loans, Checking and Savings in a Single Bank
The United States has thousands of banks across the country. A report by the Federal Deposit Insurance Corporation (FDIC) revealed that the number of FDIC-insured institutions as of March 31, 2019 totaled to 5,362.
With so many banks available, it may be difficult to choose one that fits your needs and satisfies your business and personal goals. If you're in search of a good financial institution, a full-service bank is your best option. Here are a couple of reasons to choose a full-service bank such as First National Community Bank:
Some Banks Offer Limited Options by Choice
Some banking institutions are self-regulating, which means they have the freedom to choose the types of products and services they will offer at their locations. They can also specify the availability of these banking services and products based on their bank charter. This is what you call a limited service bank. When you come across this financial institution, it may specialize in specific products like personal loans or credit lines and not want to expand beyond those products.
A full-service bank, on the other hand, is a financial institution that offers a wide variety of banking products. Some of the services you can expect to find in a bank like FNCB are:
- Consumer Credit
- Trust Services
- Mortgage Financing
- Commercial Lending
Checking, Savings and additional types of accounts are key in full-service banking, as well and can be highly advantageous for entrepreneurs to help them tackle their day-to-day financial business tasks without much trouble. An established full-service banking institution can also make it easy for them to:
- Borrow money to grow their business
- Open personal and business savings and/or checking accounts
- Simplify their accounting procedures by setting up automatic payments and bill pay.
All of these things can be done in a single location and many times it can be done online.
Choosing a Great Bank
Having insurance for your home, car and health are important and so is having insurance on your cash. After 100 years of being a hometown, community bank, it's safe to say that FNCB is a pillar of strength and will always offer FDIC backing and the very best in banking.
WBA Sends Letter to WI Congressional Delegation, July 12, 2019 Eric Skrum
With the rumor circulating about another credit union acquiring a Wisconsin bank, WBA reached out to the Wisconsin Congressional Delegation to point out the obvious; taxpayers should be livid every time a credit union leverages their tax-exemption to purchase a tax-paying bank. Just last month, Verve Credit Union in Oshkosh announced the seventh Wisconsin-related credit union acquisition of bank assets over the last five years. This loss of tax revenue from credit unions harms our local schools, hospitals, county roads, and other important infrastructure projects that are necessary to sustain local communities. There are 103 Wisconsin banks (combined assets of $13,815,978,000) that currently fit the profile of the type of acquisition credit unions are looking at in Wisconsin. With more potentially on the horizon, lawmakers should see the writing on the wall.
This is the text used in a letter that was sent to all members of Wisconsin's Congressional Delegation:
The recent surge in credit union acquisitions of community banks across the country is a disturbing trend that promises a negative impact on taxpayers here in Wisconsin and nationwide. Just last month, Verve Credit Union in Oshkosh announced the 7th Wisconsin-related credit union acquisition of bank assets over the last five years. These transactions include whole bank and/or multiple branch acquisitions. There are rumors of at least one more acquisition coming in the near future.
There is a profile of the type of acquisition credit unions are looking at in Wisconsin:
* Wisconsin banks with $250 Million or less in assets.
* Currently, there are 103 banks that fit the profile for credit union acquisition.
* Those banks have combined assets of $13,815,978,000.
This should give pause to all taxpayers, considering every credit union purchase of a community bank diminishes tax revenues and further solidifies a publicly subsidized sector of the financial services industry. Wisconsin banks paid $491 million in income taxes in 2017, while credit unions paid $0. This loss of tax revenue from credit unions harms our local schools, hospitals, county roads, and other important infrastructure projects that are necessary to sustain local communities.
The inequity of these deals is exacerbated by the fact that credit unions are not subject to the full set of regulations that community banks face, including Community Reinvestment Act rules that encourage financial institutions to meet the needs of low and moderate income communities. For example, according to state Home Mortgage Disclosure Act data only 8% of Wisconsin credit union mortgages were originated to low-income individuals. 42% of mortgages were originated to the upper-income bracket. Moreover, 60 HMDA reporting credit unions did not make a single loan to a low-income individual.
The current rash of credit union acquisitions is a threat to local taxpayers and yet another indicator that large tax-exempt credit unions have become virtually indistinquishable from taxpaying commercial banks. Should a tax subsidized entity be able to use those savings to acquire a tax paying institution? It's time for our representatives to take action on this unbalanced arrangement and join many other countries around the world in leveling the financial services sector's tax and regulatory responsibilities.
Rose Oswald Poels
President and CEO
Wisconsin Bankers Association
To learn more about the Wisconsin Bankers Association, please visit their website at www.wisbank.com