How can our economy remain competitive and thrive if its businesses, including financial institutions, don’t bear the brunt of their poor actions and decisions? It can’t. But that’s exactly what is happening now as our government props up the Wall Street institutions that created economic calamity. We need not only a return to traditional financial standards and free market discipline but to downsize the Wall Street megabanks to eliminate the threat any one institution can pose to our nation’s entire financial system.
Common sense tells us that no financial institution should ever become so large and powerful that it becomes too big to manage, too big to regulate and too big to face judgment in the marketplace. Nevertheless, for years policymakers have sanctioned and approved too-big-to-fail financial corporations. Now they’re using hardworking Americans’ tax dollars to keep those institutions afloat.
As guardians of Main Street, community bankers nationwide have long urged an end to too-big-to-fail. For years, our pleas to put taxpayers and our nation's financial well-being above the interests of individual entities fell on deaf ears. It was only in the wake of the financial-markets crisis that policymakers could no longer ignore what seemed so obvious to the rest of us. Now the Obama administration and Congress are beginning to address the serious problem of too-big-to-fail institutions through the administration’s financial regulatory reform plan. While parts of the plan provide a good starting point, there is still more that can be done to ensure we don’t repeat this crisis.
Community banks support provisions in the administration’s plan that create a consolidated systemic-risk regulator, impose higher capital and liquidity requirements on too-big-to-fail institutions so they can better absorb losses when they stumble and give the FDIC special resolution authority to unwind and resolve systemic risk firms that fail. However, to protect taxpayers and our economy, we need regulations to downsize the megabanks, require firms that pose systemic risks to pay into a separate systemic-risk reserve fund that can be used to unwind mega-institutions when they fail and impose a special FDIC systemic-risk premium for the extra burden the largest banks place on the Deposit Insurance Fund.
Another part of the plan threatens to undermine the way community banks successfully serve their customers and all of Main Street America. The proposed Consumer Financial Protection Agency would have far-reaching powers over bank products and services provided to customers. Unfortunately, the agency as currently proposed would hurt, not help consumers.
Community bankers agree that we need to close existing regulatory gaps and safeguard consumers from abusive and improper practices. After all, we have always put the best interests of our customers first. In doing so, we pride ourselves in offering our customers the safest and most sound products and services in the marketplace. The proposed agency, by separating consumer policy from safety and soundness supervision conducted by bank regulators, would create more regulatory confusion without improving consumer protections. Those increased regulatory costs would be borne by all consumers, making many financial products and services more expensive for all Americans and perhaps not affordable to some.
Community bankers work with our customers to ensure that they’re well informed about the products and services they choose and that they are capable of managing them. So why should community banks and their customers be punished for the deceptive practices of others?
Instead, a more targeted approach to fixing the real problems of our financial system lies in focusing on too-big-to-fail institutions. By implementing measures to regulate giant financial firms and reduce the risks they pose to our economy, Congress can begin restoring citizens’ faith—and essential free-market discipline—in our nation’s financial system. We must ensure that any new regulatory regime addresses too-big-to-fail institutions while implementing meaningful consumer protections that will not disproportionately affect the community banks that did not contribute to the current economic crisis. We must get it right for the long term—future generations of Americans are counting on us.
Thursday, August 13, 2009
Thursday, August 6, 2009
Press Release - MileStone Bank issues 20% stock dividend
DOYLESTOWN, PA – August 4, 2009 - The Board of Directors of MileStone Bank of Doylestown has authorized payment of a 20% stock dividend, according to John C. Spier, Chairman of the Board. Shareholders of record on June 30, 2009 will receive one share of common stock for each five shares they own, payable on August 15, 2009. This is the first stock dividend for MileStone Bank, established in November of 2007.
“After careful consideration, the board determined a stock dividend was appropriate based on the bank’s overall positive performance as measured against our business plan and the performance of our peers,” said David Gill, President & CEO. “We’re happy to issue this dividend as delivery on our pledge to provide increased value for our original investors, and proof of our continued commitment to create the well regarded, high performing financial institution promised to our shareholders and clients.”
Capital levels for the bank remain strong with a Tier 1 Capital Ratio of 15.64% and a Total Risk Based Capital Ratio of 21.37%, as of June 30, 2009.
MileStone Bank is a community bank headquartered in Doylestown, PA. MileStone Bank is led by co-founders David Gill, President & CEO, and Elijiah Gray, CFO.
Disclaimer
This report contains certain "forward-looking statements." The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protection of such safe harbor with forward looking statements. These forward-looking statements may describe future plans or strategies and include the Company's expectations of future financial results. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These risk factors include but are not limited to the effect of interest rate changes, competition in the financial services market for both deposits and loans as well as regional and general economic conditions. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements. The Company's ability to predict results or the effect of future plans or strategies is inherently uncertain and undue reliance should not be placed on such statements.
“After careful consideration, the board determined a stock dividend was appropriate based on the bank’s overall positive performance as measured against our business plan and the performance of our peers,” said David Gill, President & CEO. “We’re happy to issue this dividend as delivery on our pledge to provide increased value for our original investors, and proof of our continued commitment to create the well regarded, high performing financial institution promised to our shareholders and clients.”
Capital levels for the bank remain strong with a Tier 1 Capital Ratio of 15.64% and a Total Risk Based Capital Ratio of 21.37%, as of June 30, 2009.
MileStone Bank is a community bank headquartered in Doylestown, PA. MileStone Bank is led by co-founders David Gill, President & CEO, and Elijiah Gray, CFO.
Disclaimer
This report contains certain "forward-looking statements." The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itself of the protection of such safe harbor with forward looking statements. These forward-looking statements may describe future plans or strategies and include the Company's expectations of future financial results. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These risk factors include but are not limited to the effect of interest rate changes, competition in the financial services market for both deposits and loans as well as regional and general economic conditions. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements. The Company's ability to predict results or the effect of future plans or strategies is inherently uncertain and undue reliance should not be placed on such statements.
Monday, July 6, 2009
Everything Old is New Again - Back to Banking Basics
Remember the old passbook saving accounts? Did you have one as a kid? Remember Christmas Clubs & Vacation Clubs? Did you save most of your paper route, baby sitting, or lawn mowing money in the hope of some day having enough set aside for a baseball glove, new bicycle or even that first car? There was a time when it was very common to put money away every week especially for specific purposes.
Before banks were able to offer the now ubiquitous money market accounts, if you wanted to segregate some of your money into a rainy day fund the only alternative was a passbook savings account. The use of the passbook by banks in America actually dates back to sometime in the early 19th century. It was a small booklet, similar in size and shape to a passport, and contained a running statement of all credits and debits, including deposits, withdrawals, and interest. I can remember when a teller would update the passbook by writing the entries by hand and administering an official bank stamp underneath.
This type of account and record keeping process was well suited for infrequent transactions; and, by providing a hand held record of the account’s activity there was no need for the bank to produce and mail out a monthly account statement. Obviously, transacting business was difficult if the account holder lost the book or simply forgot to bring it with them to the bank. But, fortunately the bank always maintained an official record of the account and, with proper ID would provide a replacement fully updated and ready for more transactions. The old fashioned passbooks became compatible with printers and enabled transactions to be entered “automatically” and eventually passbooks disappeared completely, replaced by more convenient statement savings accounts.
Well it’s amazing how the more things change the more they stay the same. In the midst of the current economic challenges consumers are becoming much more careful with debt and more serious about finding financial alternatives that guarantee a return and also protect against loss of principle. There is a renewed focus on savings, especially as it helps prepare financially for some of life’s more important milestones. In 2009, the passbook component is a thing of the past, replaced by statement savings accounts – now called purpose driven savings accounts – with customized titles such as “Family Vacation” or “Entertainment Center” or any other specific goal. Purpose driven saving essentially creates baskets into which consumers can segregate funds dedicated to a specific goal, dream or objective.
This concept really works. Segregating funds both mentally and physically from the rest of the household budget ensures that every penny in the account goes to its intended purpose rather than for retirement, your kid’s wedding or college tuition, a new car or anything else.
Creating a specialized purpose for which to save helps prioritize the overall budget, creates greater motivation to save, and increases the prospect of actually attaining savings goals. A special benefit not to be overlooked is that savers really enjoy tracking balances online or through monthly statements and actually watching their progress and realizing their dream.
So why not “go back to the future” and start your purpose driven, dream maker savings account right now. That vacation cruise, Harley Motorcycle or in-ground pool will become a reality as you watch the account balance steadily grow and finally accomplish your dreams.
For information on how you can start an FDIC insured savings account with competitive interest earnings and guaranteed principle, contact MileStone Bank by email: support@milestonebank.com or by telephone: 866 - 672 - 2655.
Before banks were able to offer the now ubiquitous money market accounts, if you wanted to segregate some of your money into a rainy day fund the only alternative was a passbook savings account. The use of the passbook by banks in America actually dates back to sometime in the early 19th century. It was a small booklet, similar in size and shape to a passport, and contained a running statement of all credits and debits, including deposits, withdrawals, and interest. I can remember when a teller would update the passbook by writing the entries by hand and administering an official bank stamp underneath.
This type of account and record keeping process was well suited for infrequent transactions; and, by providing a hand held record of the account’s activity there was no need for the bank to produce and mail out a monthly account statement. Obviously, transacting business was difficult if the account holder lost the book or simply forgot to bring it with them to the bank. But, fortunately the bank always maintained an official record of the account and, with proper ID would provide a replacement fully updated and ready for more transactions. The old fashioned passbooks became compatible with printers and enabled transactions to be entered “automatically” and eventually passbooks disappeared completely, replaced by more convenient statement savings accounts.
Well it’s amazing how the more things change the more they stay the same. In the midst of the current economic challenges consumers are becoming much more careful with debt and more serious about finding financial alternatives that guarantee a return and also protect against loss of principle. There is a renewed focus on savings, especially as it helps prepare financially for some of life’s more important milestones. In 2009, the passbook component is a thing of the past, replaced by statement savings accounts – now called purpose driven savings accounts – with customized titles such as “Family Vacation” or “Entertainment Center” or any other specific goal. Purpose driven saving essentially creates baskets into which consumers can segregate funds dedicated to a specific goal, dream or objective.
This concept really works. Segregating funds both mentally and physically from the rest of the household budget ensures that every penny in the account goes to its intended purpose rather than for retirement, your kid’s wedding or college tuition, a new car or anything else.
Creating a specialized purpose for which to save helps prioritize the overall budget, creates greater motivation to save, and increases the prospect of actually attaining savings goals. A special benefit not to be overlooked is that savers really enjoy tracking balances online or through monthly statements and actually watching their progress and realizing their dream.
So why not “go back to the future” and start your purpose driven, dream maker savings account right now. That vacation cruise, Harley Motorcycle or in-ground pool will become a reality as you watch the account balance steadily grow and finally accomplish your dreams.
For information on how you can start an FDIC insured savings account with competitive interest earnings and guaranteed principle, contact MileStone Bank by email: support@milestonebank.com or by telephone: 866 - 672 - 2655.
Monday, June 8, 2009
Marketing your Business
The economy and its impact – the topic that “keeps on giving” literally! But take heart - in the midst of the housing and employment struggles, bailouts and bankruptcies there are absolutely opportunities to sustain and even grow your business. Maximizing those opportunities requires solid marketing efforts. The notion of marketing in a downturn is counterintuitive to many because they view marketing as an expense and are therefore cutting back marketing budgets in search of cost savings. The wiser business professionals, viewing marketing as an investment, have a decided advantage. They proactively and strategically intensify marketing efforts when business slows - not necessarily by spending more money on advertising, but by focusing attention on perhaps the most significant marketing tool available - the customer experience.
Marketing done right is a systemic, company-wide effort that strives to develop lasting relationships by meeting the emotional needs and wants of clients and creating a positive outcome. It’s not about selling more products to clients, it’s about genuinely understanding the client, and providing what they truly need.
And, systemic marketing requires everyone in the office from the bookkeeper, receptionist, sales person, and the business owner to invest in the customer experience. It begins with the initial client contact to schedule an appointment. Both the obvious and the not-so-obvious things leave an impression and influence the client’s desire to do business with you again or refer another person. The professionalism, competence, and interpersonal skills of staff, look of your office, even bathroom cleanliness and office signage have an impact on client satisfaction. Now is the time, while business is slow, to prepare your staff for their role as marketer. As the leader of this effort, make the commitment to clearly define and clearly communicate standards for marketing the comprehensive and ultimate client experience to exceed their expectations.
To get started, here are some basic suggestions:
1. Clients want assurance. Ensure your staff is courteous and competent, treats the client with respect and instills confidence that the quality of their experience is the number one priority
2. Clients want responsiveness. Teach your staff that the client is not an interruption, but rather the reason for the existence of the business and their respective jobs. Help employees understand that the client is the “real boss” and they should be prepared to promptly take care of their needs.
3. Clients want reliability. Make sure you and your staff complete tasks and fulfill requests correctly the first time i.e. calling when you say you’ll call, following-up on unresolved issues, and promptly informing them when you are unable to provide something
4. Clients want a comfortable environment. Assign responsibility to inspect the office regularly to make sure it’s user friendly, organized, clean and professional.
Proactive marketing in the current reality doesn’t have to cost a lot. Simply build awareness and sensitivity within your staff to be attentive to the needs and wants of clients, and then provide the highest levels of service and responsiveness. You will experience improved customer retention, an increased number of referrals, and another surprising perk – a happier workforce that is engaged in process of building success.
Best wishes in your marketing efforts!
Marketing done right is a systemic, company-wide effort that strives to develop lasting relationships by meeting the emotional needs and wants of clients and creating a positive outcome. It’s not about selling more products to clients, it’s about genuinely understanding the client, and providing what they truly need.
And, systemic marketing requires everyone in the office from the bookkeeper, receptionist, sales person, and the business owner to invest in the customer experience. It begins with the initial client contact to schedule an appointment. Both the obvious and the not-so-obvious things leave an impression and influence the client’s desire to do business with you again or refer another person. The professionalism, competence, and interpersonal skills of staff, look of your office, even bathroom cleanliness and office signage have an impact on client satisfaction. Now is the time, while business is slow, to prepare your staff for their role as marketer. As the leader of this effort, make the commitment to clearly define and clearly communicate standards for marketing the comprehensive and ultimate client experience to exceed their expectations.
To get started, here are some basic suggestions:
1. Clients want assurance. Ensure your staff is courteous and competent, treats the client with respect and instills confidence that the quality of their experience is the number one priority
2. Clients want responsiveness. Teach your staff that the client is not an interruption, but rather the reason for the existence of the business and their respective jobs. Help employees understand that the client is the “real boss” and they should be prepared to promptly take care of their needs.
3. Clients want reliability. Make sure you and your staff complete tasks and fulfill requests correctly the first time i.e. calling when you say you’ll call, following-up on unresolved issues, and promptly informing them when you are unable to provide something
4. Clients want a comfortable environment. Assign responsibility to inspect the office regularly to make sure it’s user friendly, organized, clean and professional.
Proactive marketing in the current reality doesn’t have to cost a lot. Simply build awareness and sensitivity within your staff to be attentive to the needs and wants of clients, and then provide the highest levels of service and responsiveness. You will experience improved customer retention, an increased number of referrals, and another surprising perk – a happier workforce that is engaged in process of building success.
Best wishes in your marketing efforts!
Wednesday, June 3, 2009
Bank Deposit Accounts vs Money Market Funds
Great Article in the Wall Street Journal today about savings rates.
Bank accounts may even be more secure than other options, since bank deposits are insured by the Federal Deposit Insurance Corp. up to $250,000 per depositor, a limit recently extended to 2013. While money-market funds are generally very safe, the insurance program set up after the financial crisis covers only investments that were there as of Sept. 19, 2008 and is set to expire this September. See the full article at: http://online.wsj.com/article_email/SB124398655282979357-lMyQjAxMDI5NDAzMzkwODM2Wj.html#printMode
Bank accounts may even be more secure than other options, since bank deposits are insured by the Federal Deposit Insurance Corp. up to $250,000 per depositor, a limit recently extended to 2013. While money-market funds are generally very safe, the insurance program set up after the financial crisis covers only investments that were there as of Sept. 19, 2008 and is set to expire this September. See the full article at: http://online.wsj.com/article_email/SB124398655282979357-lMyQjAxMDI5NDAzMzkwODM2Wj.html#printMode
Monday, April 27, 2009
Community Banks: Still Safe & Secure
The Independent Community Bankers of America (ICBA) and MileStone Bank are reminding community bank customers of the extraordinary stability of the community banking industry as the troubles of large Wall Street financial institutions and investment firms dominate mainstream headlines.
“Our customers may be watching the news and reading the papers and naturally, they worry about their own banks,” said Dave Gill, President & CEO of MileStone Bank. “We understand their concern, but want to reassure our customers that they need not worry about the stability of their bank and the safety of their money.”
“These are challenging times for our nation’s economy and financial system – one of the most challenging in many, many years. We have seen the failure of some large financial firms and investment banks,” said Cynthia L. Blankenship, ICBA chairman and vice chairman and chief operating officer of Bank of the West, Irving, Texas. “However, the challenges are primarily on Wall Street, not Main Street, and investment banks are not commercial banks or savings institutions. The reality is there are more than 8,400 commercial banks in our country and insured deposits are safe in an FDIC insured institution. No depositor has ever lost a penny of FDIC-insured funds. Investment banks are not FDIC insured.”
Under the Emergency Economic Stabilization Act of 2008 (H.R. 1424) enacted Oct. 3, deposits held in FDIC-insured community banks will be guaranteed by the federal government for up to $250,000 through Dec. 31, 2009. Starting on Jan. 1, 2010, deposits held in FDIC-insured community banks will be guaranteed for up to $100,000 per depositor, and $250,000 for certain retirement accounts.
“When it comes to community banks, the vast majority have been and continue to be some of the safest, soundest and most secure financial institutions in our nation,” said Blankenship. “Community banks follow responsible business practices. Community banks are risk-averse; they are sensible businesses that work every day to support their customers, communities and local markets.”
“We encourage customers to call us if they are concerned,” said Dave Gill of MileStone Bank. “We value our relationship with our customers and our communities, and we want everyone to feel secure—both now and well into the future.”
Learn more about MileStone Bank at www.milestonebank.com
“Our customers may be watching the news and reading the papers and naturally, they worry about their own banks,” said Dave Gill, President & CEO of MileStone Bank. “We understand their concern, but want to reassure our customers that they need not worry about the stability of their bank and the safety of their money.”
“These are challenging times for our nation’s economy and financial system – one of the most challenging in many, many years. We have seen the failure of some large financial firms and investment banks,” said Cynthia L. Blankenship, ICBA chairman and vice chairman and chief operating officer of Bank of the West, Irving, Texas. “However, the challenges are primarily on Wall Street, not Main Street, and investment banks are not commercial banks or savings institutions. The reality is there are more than 8,400 commercial banks in our country and insured deposits are safe in an FDIC insured institution. No depositor has ever lost a penny of FDIC-insured funds. Investment banks are not FDIC insured.”
Under the Emergency Economic Stabilization Act of 2008 (H.R. 1424) enacted Oct. 3, deposits held in FDIC-insured community banks will be guaranteed by the federal government for up to $250,000 through Dec. 31, 2009. Starting on Jan. 1, 2010, deposits held in FDIC-insured community banks will be guaranteed for up to $100,000 per depositor, and $250,000 for certain retirement accounts.
“When it comes to community banks, the vast majority have been and continue to be some of the safest, soundest and most secure financial institutions in our nation,” said Blankenship. “Community banks follow responsible business practices. Community banks are risk-averse; they are sensible businesses that work every day to support their customers, communities and local markets.”
“We encourage customers to call us if they are concerned,” said Dave Gill of MileStone Bank. “We value our relationship with our customers and our communities, and we want everyone to feel secure—both now and well into the future.”
Learn more about MileStone Bank at www.milestonebank.com
Wednesday, April 15, 2009
Hope for tomorrow......
There is hope for a better tomorrow and the banking system (at the local level) can and will be a big part of recovery.
Local level community banks are owned and operated by people you know and trust rather than a foreign country that is far removed from your reality. Community bankers go to the same Little League fields and dance recitals as you and they care about the well being of families, businesses, and the neighborhoods you share. Community banks’ sponsorships and donations to local organizations are generous; and, upstanding bank officers’ volunteer service and leadership have a far-reaching impact on building healthy communities. Beyond their “heart”, community banks, for the most part, are well capitalized and in a strong position to provide a safe place for saving and borrowing money.
As individuals become more fiscally responsible and conservative, good old fashioned savings accounts and certificates of deposit provide a guaranteed principle, safe and secure option. Deposits are insured by FDIC for up to $250,000 or more (depending on account titling). In addition to providing safety, soundness and interest, those same deposits fuel business growth within the local community. Community bankers have wisdom, knowledge, experience, and integrity. They are familiar with their borrowers and the marketplace which enables them to make sound decisions. Community banks connect community people to community businesses by providing loans that fuel the economy, create jobs, and sustain growth.
Don’t forget that you, too, play a role in recovery:
· Choose to fuel the economy by placing your business and personal deposits in a local community bank
· Choose a bank that understands and supports your industry
· Choose a banker that that is qualified to be a business advisor and cares enough to be a partner to help you enhance your practice and your patients’ experiences
· Choose to be part of the solution
Local level community banks are owned and operated by people you know and trust rather than a foreign country that is far removed from your reality. Community bankers go to the same Little League fields and dance recitals as you and they care about the well being of families, businesses, and the neighborhoods you share. Community banks’ sponsorships and donations to local organizations are generous; and, upstanding bank officers’ volunteer service and leadership have a far-reaching impact on building healthy communities. Beyond their “heart”, community banks, for the most part, are well capitalized and in a strong position to provide a safe place for saving and borrowing money.
As individuals become more fiscally responsible and conservative, good old fashioned savings accounts and certificates of deposit provide a guaranteed principle, safe and secure option. Deposits are insured by FDIC for up to $250,000 or more (depending on account titling). In addition to providing safety, soundness and interest, those same deposits fuel business growth within the local community. Community bankers have wisdom, knowledge, experience, and integrity. They are familiar with their borrowers and the marketplace which enables them to make sound decisions. Community banks connect community people to community businesses by providing loans that fuel the economy, create jobs, and sustain growth.
Don’t forget that you, too, play a role in recovery:
· Choose to fuel the economy by placing your business and personal deposits in a local community bank
· Choose a bank that understands and supports your industry
· Choose a banker that that is qualified to be a business advisor and cares enough to be a partner to help you enhance your practice and your patients’ experiences
· Choose to be part of the solution
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