News

Here at Park Bank we are devoted to keeping our customers informed with the latest news regarding financial, community and security events.

What every new homeowner needs to know

If you are in the market for a new home, here are some very important steps to follow before taking the plunge.

• Don’t make any sudden moves. Don’t create any substantial changes with your credit profile by making large purchases, opening new credit cards, or taking out any other loans. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible.
• Getting Pre-Approved is “where it’s at!” There is a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Being pre-qualified only means that a banker has discussed a buyer’s credit, income and assets and has advised them on a budget. This does not mean they will actually receive a loan. A pre-approved buyer has had their financial information verified and is approved for a mortgage based on this information. This is important so you aren’t wasting time looking at homes you will not be approved for and it can also give you negotiating tools with a seller when they know you are a serious buyer.
• Don’t ask what you can afford, KNOW what YOU can afford. Understand there are more costs to homeownership than just the mortgage payment. Other expenses such as property taxes, utilities, maintenance and homeowner-association dues also need to be budgeted so you will never be at risk of financial hardships. No matter what the loan officer or website states you can afford, YOU need to know what you will be able to spend without stretching yourself too thin.
• Rate is important, but it’s not the only thing. Getting the best rate will save you hundreds if not thousands of dollars over the life of your loan. But you also need to look at the quality and character of the banker and bank you will be dealing with for the life of that loan. Community banks, like Park Bank, offer local decisions, local commitment and local investments. And with Park Bank, your loan starts here and stays here! Our customers have always made their loan payments at their local Park Bank branch. If you have ever had your loan sold to a huge mortgage servicer, you know why this is important. You get that in addition to competitive rates and low closing fees.

Secrets of success for your small business

Starting up your own small business can be exciting and overwhelming. Having the right support system in place, starting with the right lender and financial advisor, is a good place to start.

Here is another place to start…the SBA (Small business Administration) has compiled a list of 20 questions to ask yourself before you start down this path. You can read those questions here.

What’s next?

After answering the 20 questions, determining the type of business you will own and who your customer will be, it is important to understand your financial needs.

You will need to determine your start-up costs and what it will take to operate your business. The right lender will help you develop a business plan and cash flow analysis. And, the right type of loan is also extremely important.

Park Bank is an SBA lender. What does that mean? “The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.”

With the SBA’s help, Park Bank is able to offer loans with longer term loans, lower injection costs and no balloon payments. With the experience of the Park Bank staff any new small business is off to the right start.

“The SBA is a great partner,” says Morgan Farmer. “Together we have been able to work with hundreds of small businesses.”

Not only is Park Bank an SBA lender, we are an award-winning SBA lender! Learn more here.

Community Banks build communities

Community banks are an integral part of Main Street—they reinvest local dollars and help create jobs in their communities. Local reinvestment helps small businesses grow and families finance major purchases and build financial security.

“Community banking is simple math…Local deposits + Local loans = Local growth”, says Park Bank Vice President Morgan Farmer. In addition, community banks also are using the latest banking technology for convenience and tougher security standards to protect small-business owners and customers.

What Sets Community Banks Apart

Here are other examples, from ICBA.org, of how community banks are different than other financial institutions:

• Local Focus: Unlike larger banks that may take deposits in one state and lend in others, community banks channel their loans to the neighborhoods in which their depositors live and work, which helps local businesses and communities thrive.
• Relationship Banking: Community bank officers know their customers and may consider family history and discretionary spending in making loans. Loan officers at megabanks apply impersonal qualification criteria, such as credit scoring, without regard to individual circumstances.
• Provide Innovative Solutions: Community bankers also work hand in hand with customers to ensure they have access to the best innovations possible to meet their needs—such as the most secure, reliable and convenient payment options.
• Lending Leadership to Small Business: According to the Federal Reserve’s 2016 Small Business Credit Survey: Report on Employer Firms, community banks are the small-business lender of choice.
• Timely Decision-Making: Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often convene loan-approval committees that are located in another state, far away from their customers.
• Community Engagement and Accessibility: Community bank officers are typically deeply involved in their local communities, while megabank officers are often detached from the communities where their branches are located.
• Focus on Main Street: As local small businesses themselves, community banks only thrive when their customers and communities flourish. They answer to Main Street. Megabanks are driven by shareholder value and answer to Wall Street.

Below are some fun facts about community banks.

1. Community banks constitute 96 percent of all banks!
2. There are more than 600 counties—almost one out of every five U.S. counties—that have no other physical banking offices except those operated by community banks.
3. There are more than 51,000 community bank locations nationwide.
4. Community banks hold more than $3.9 trillion in assets, $3.1 trillion in deposits, and $2.6 trillion in loans to consumers, small businesses and the agricultural community.
5. Community banks employ 700,000 Americans and create countless jobs thanks to their role in lending to small businesses and agricultural enterprises.
6. Community banks make more than 50 percent of small business loans.
7. Community banks make 90 percent of agricultural loans.
8. More than 2,500 community banks have been in business for more than 100 years.