Banking During Turbulent Economic Times

Exclusive Interview with Dave Gill, President and CEO of MileStone Bank headquartered in Doylestown, Pa.

Introduction:
In 2007, David W. Gill (President and CEO) and Elijiah Gray (CFO) co-founded MileStone Bank in response to industry consolidation that resulted in larger, more impersonal financial institutions. They saw an unmet need in the market and had a vision to provide target client segments (including dental professionals) with a new kind of banking that combines the highest level of personalized service with the latest in cutting-edge banking technology. They assembled a hand-selected team of experienced, knowledgeable bankers along with exceptional products and the results have been rewarding for both the client and the organization.

The Doctor of Dentistry editor was curious about a new kind of banking during these turbulent economic times and conducted the following interview to learn more:

Doctor of Dentistry: The current economic environment poses a unique set of challenges within the financial industry. How is MileStone weathering the storm?
Dave Gill: We agree with a recent Business Week special report that cited “This may be the ideal time to start a bank…startups hold a key advantage: a clean slate…they can deal with customers instead of dealing with problems.” Many larger banks are overwhelmed with managing TARP (troubled asset recovery program) and the operational details of resulting mergers. MileStone Bank is able to focus on meeting the loan and deposit needs of clients with agility not bureaucracy and red tape. Our clients find it refreshing.

Doctor of Dentistry: What geographic markets does MileStone serve?
Dave Gill: Because of our business model and innovative delivery systems, we are not restricted to a specific geographic territory. We can offer clients “banking without boundaries”. In fact we have over 100 locations throughout Pennsylvania and bordering states. In essence, we provide a banker on your doorstep for personalized service when you need it; and, we supplement that with a branch on your desktop - Remote Control banking system. The system enables checks to be deposited electronically using a scanner and secure online banking. Clients love the convenience, are delighted with the financial benefits of having next-day access to deposited funds, and appreciate that the package is FREE.

Doctor of Dentistry: What qualifies MileStone to be specialists in the dental industry segment?
Dave Gill: We have been serving the dental industry for the past 20 years with everything from loans to start their practice or buy new equipment to the state of the art Remote Control banking technology. Understanding the unique needs of dental professionals, we have responded with services distinctively designed to help the office run more efficiently so doctors can build their practices more effectively.

Doctor of Dentistry: I can see that you offer benefits to the industry, what’s in it for you?
Dave Gill: It’s rewarding to meet the needs of our clients and receive their endorsement through referred business. And, our client focus pays high dividends…we are the fastest growing bank in suburban Philadelphia. MileStone Bank is well capitalized, and has a strong and healthy balance sheet. It’s especially fulfilling to see the successes of clients like Dr. Gary Nack recently voted 2008 Best of Bucks County in the dentistry category. We look forward to building relationships with dental professionals for years to come.

Dr. Gary Nack:
“Their service is the best and they will bend over backwards to make things work for you- they are cutting edge, tech savvy people. The check deposit machine is a flawless way of doing banking. I cannot say enough good things of their bank,” says Dr. Nack a dentist from Bucks County.

For more information about MileStone bank, call 866-672-2655 or go to www.milestonebank.com

Financial Empowerment for Women

(Things I wish my mother had taught me about money)

Men & Women are different. Did you know:
•Women leave the work force for an average of 11.5 years, compared to 16 months for men?
•A woman who leaves the work force for only seven years early in her career may receive half the retirement benefits of her male counterpart?
•Women are still paid an average of 20% less than their male counterparts?
•Only 49% of women have savings and investments greater than the total amount they owe on any consumer debt?
•Women live longer than men — an average of seven years?
•50% of women over age 65 outlive their husbands by 15 years?
•Three in four women are single when they die?

Due to these statistics, women need to be more in control of their financial future. Women tend to make the following financial mistakes: 1) Women invest later in life and more conservatively than men. Since women live longer and usually outlive their husbands, women need to invest earlier in life and make it a priority. 2) Women participate less often in 401(k) programs than their male counterparts. Partipating in company's 401(k) programs or IRAs are tax deferred investments. If you are in the 28% tax bracket, one out of every four dollars you put into a 401(k) or IRA is a reduction in your taxes not in your net paycheck. 3) Women are more likely to invest in their children’s college education than in their own retirement. Investing in your children's education is good but only after you have maxed out what you can invest in your retirement. You or your child can get a loan for their education but you can not get a loan for your retirement. In addition, your retirement savings are not counted against you (or towards what you can pay for tuition) when colleges are figuring out your financial aid. However, money you have set aside for your children's education will be deducted from the amount of financial aid you will receive.

Things I Wish My Mom Taught Me About…. Managing My Cash
•Spend less than you earn. This seems like common sense but many people spend more than they earn. Women need to take an inventory of what income they have coming in per month and what their expenses are. While creating a budget is a good tool, most people don't follow them or even look at them once they are done. If you have trouble controlling money in just a few categories, such as clothing or entertainment, create and adhere to a detailed budget for just these categories.
•Pay yourself first. Have your retirement taken out of your paycheck before you do anything else. This forces you to save and not have that money available to spend

Things I Wish My Mom Taught Me About….Savings
•Create an emergency fund equal to 3 - 6 months pay. Prepare for unexpected illness, accident or becoming a victim of corporate downsizing. Keep funds liquid and easy to access.
• Teach your children to save. You can accomplish this with young children by taking their birthday or holiday money and putting it into a savings account. Show them how much they have a few times a year. If you child wants a toy that is too expensive, have them save up their money to purchase it. If you have teenagers, force them to save a percentage of their paycheck that can't be touched by them, but offer an incentive. For example, I will pay for $100 per month of your gas expense if you save 50% of your paycheck.

Things I Wish My Mom Taught Me About ….Retirement
•Don’t count on social security. Depending on how old you are, social security might not be available when you retire.
•Saving for retirement is similar to an exercise program. The more you put into it, the more you will get out, and regular investing is key.
•If your employer matches 401K investments, get the entire match. I am amazed at how many people don't put enough into their 401k to get the employer match. It is FREE money for retirement.
•Don’t cash out your 401K. Pretend that your hard-earned, 401K-money was never yours to begin with. Otherwise, you will have to pay taxes & penalties, and work forever.

Things I Wish My Mom Taught Me About ….Credit Scores
•Factors that affect your credit score: Delinquencies, accounts opened during the last year, balances on revolving credit that are near limits, tax liens, bankruptcies, recent credit inquiries, too few (or too many) revolving accounts.
•Pay your mortgage on time. Too many people when they are short of money pay other bills before their mortgage. You need a place to live, if you don't pay your mortgage the bank is going to take your home.
•Always pay bills on time. Late payments negatively effect your credit score.

You can get a free copy of your credit report at http://www.annualcreditreport.com/

Things I Wish My Mom Taught Me About ….investments
•Choose the right Financial Advisor. Ask people you trust for a referral to a good financial advisor. In your initial meeting ask how they are paid, some are fee-based, meaning you pay a flat fee for them to manage your money and some are commission based, they get a percentage of your portfolio (i.e. 1%) or they get a commission on each trade. You need to know how they get paid and feel comfortable with that. Trust your instincts, if you don't like the person, don't trust them with your money. A good financial planner should find out about your lifestyle, when you expect to retire, what you want to do when you retire, where you will live, etc.
•Join a Club. An investment club will teach you about stocks and bonds. Money Club is a FREE service from WIFE.org, a non-profit organization co-founded more than twenty years ago. Find out more at www. MoneyClubs.com.

Managing your finances can be scary so ask for help from people you trust. As Marie Curie says:

“Nothing in life is to be feared. It is only to be understood.”

This article was written by Ms. Elijiah Gray, CFO of MileStone Bank.

www.milestonebank.com