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Publisher's Column PNC Financial Services announced on October 24 that it is acquiring PNC will pay $5.2 billion for PNC will also receive a $7.7 billion investment from the government, under its $750 billion bailout plan.
Retired banker, Bill Porteous, is known as the “Father of the White Pine Trail,” for his hard work to convert abandoned railroad track lines to
recreational trails. Last month he and his wife, Mable were honored by their hometown for their efforts when the local train depot in The depot is a replication of the historic depot that sat at the junction of the Porteous was president of Reed City State Bank. In the late ‘80s the bank was sold to First Michigan Bank Corp., and he left the day-to-day life
of banking for good. Since retirement he has been actively involved in promoting Rail-Trails which has been successful in the
The Detroit Pistons announced that “Our decision to become the presenting sponsor of the Pistons is an extension of our continued growth and expansion in this market and will
bolster our efforts to reach local customers with As presenting sponsor, National City will be included in a number of marketing elements including drops/logos on all television, radio and print
ads; the National City logo on Pistons tickets and pocket schedules; in-arena advertising for National City; prominent placement of its logo on the www.pistons.com
web site; the National City logo incorporated into Pistons staff uniforms and point-of-sale signage at all Locker Room stores. Fans will benefit from the relationship in a variety of ways. “Our bank has enjoyed an extraordinary collaboration with the Pistons, which will only be enhanced by our role as presenting sponsor.” Boyle
emphasized, “We are absolutely excited the Founders Bank & Trust has named Mary Beth Kolenda to be the bank’s next marketing coordinator. She will be responsible for all marketing
activities. The bank has four offices serving the Greater Grand Rapids area. Kolenda joins Founders Bank & Trust, a full-service community bank that is locally owned and managed.
The federal bank and thrift regulatory agencies are requesting public comment on a joint notice of proposed rulemaking (NPR) to allow a banking
organization to assign a 10 percent risk weight to claims on, and portions of claims guaranteed by, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac). Claims include all credit exposures, such as senior and subordinated debt and counterparty credit risk exposures, but do not include preferred or common stock. The agencies believe reducing the risk weight from the current 20 percent is appropriate in light of the financial support the Treasury Department
recently announced to provide to Fannie Mae and Freddie Mac through senior preferred stock purchase agreements. Under the proposal, the 10 percent risk weight would apply as long as these
agreements remain in effect. The NPR is being issued by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. Public comments are due 30 days following publication in the Federal Register, which is expected soon.
The Independent Community Bankers of America (ICBA) believes a uniform increase in rates banks pay to insure deposits will have a bottom-line impact
on community bank earnings, but community banks generally will be in a better position to absorb premium increases because they are lower-risk and more highly capitalized banks than many other
types of financial institutions. “Although ICBA is concerned that deposit insurance premiums will more than double for many financial institutions, we appreciate that low-risk
institutions such as community banks will be able to pay lower premiums than the high-risk institutions that have created the current economic turmoil,” said Cynthia Blankenship, chairman of
ICBA. “Community banks are well-capitalized institutions that have not created the current drop in deposit insurance reserves,” added Camden R. Fine,
president/CEO of ICBA. Under the FDIC proposal, premiums for the healthiest banks will increase from five to seven basis points to 12 to 14 basis points in the first
quarter of 2009. After that, base rates for approximately 90 percent of all banks, will be set at 10 to 14 basis points, with additional adjustments resulting in rates between eight and 21 basis
points. A basis point is the equivalent of one cent for every $100 of domestic deposits. Beginning in the second quarter of next year, assessment rates will be adjusted by adding additional risk factors. These adjustments may either
raise or lower assessment rates for financial institutions based on their risk to the Deposit Insurance Fund (DIF). The FDIC said it is projecting bank failures to cost the DIF $40 billion through 2013, including an estimated $11 billion already incurred this
year.
Governor Jennifer Granholm, last month, announced that grants totaling $2.16 million have been awarded to 18 nonprofit organizations through the
Michigan State Housing Development Authority (MSHDA) from the newly funded Michigan Housing and Community Development Fund (MHCDF). The grants support the
Governon’s Vibrant Cities Initiative and will provide affordable housing opportunities while helping transform the According to MSHDA Executive Director Keith Molin, the purpose of the MHCDF is to direct and coordinate public and private resources to affordable
housing needs, including affordable and supportive housing options as well as assistance for the homeless. “Seventy-four applicants responded to this first round of requests for proposals. We were able to fund 18 that represent a wide variety of
improvements in both urban and rural communities,” Molin said. “Each of these 18 awards will help residents gain a stronger sense of control over the future destiny of their own cities and
neighborhoods.” One of the most noteworthy advantages the MHCDF provides is the ability to leverage millions of dollars in additional private and public investment. “These grants will leverage nearly $15 million in additional investment in cities, towns and villages across the state,” Molin said. “The
Program is endorsed by more than 25 statewide trade organizations representing more than 5,000 members and MSHDA is thrilled to be playing a key role in a mission so critical to
Kalamazoo County State Bank (KCSB) continues its 100-year celebration each month by supporting different local, non-profit agencies with both
volunteer time and donations collected from KCSB employees and customers. The bank’s employees volunteered 1,830 minutes of service to the Last month, KCSB employees supported Domestic and Sexual Abuse Services with both volunteer time and donations collected from employees and
customers. “With just three more months to go celebrating our 100-year anniversary, I cannot put into words how happy I am at the continued enthusiasm from
both our staff and customers to support the organizations we’ve chosen,” said KCSB CEO James D. MacPhee. “We know things have been tighter financially for many families recently, which makes
it even more meaningful. It is times like these when we truly realize what a generous and supportive community we’re a part of.”
The proceeds from the 4th Annual Churchill Classic 5k Run/1k Walk coordinated by Citizens National Bank were donated to two local organizations:
Cheboygan County 4H Proud Equestrian Program and TLC- Together Lifting Children, with each group receiving $2000.00. The 4H Proud Equestrian Program (PEP) Together Lifting Children is a ministry whose purpose is to provide basic clothing and hygiene needs to school-aged children so they can attend
school in comfort and dignity; better focus on their studies and interact more positively with their peers.
Over $12,000 has been raised since 2005 when the first Churchill Classic event took place in memory of Robert E. Churchill, former chairman and CEO of
Citizens National Bank. Organizations benefiting from past Churchill Classic events include the American Cancer Society, Cheboygan County Habitat for Humanity and Sue Eno, president/CEO of Citizens National Bank and Carolyn Churchill. Seated and holding their checks of $2,000 each are Val Jones from Together Lifting Children and Dolores Peterson from the 4H Proud Equestrian Program, from the money raised from the Churchill Classic in honor of the late Robert E. Churchill..
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