Citizens National Bank (CNB) has named Rebecca Spieles as Branch Manager of their Van Wert office. In this position, Spieles is responsible for branch oversight, including daily operations, sales and financial performance.
Rebecca has over 15 years experience in the banking industry and has been employed with CNB since 2011, working in their Lima office as a Customer Service Representative. Margaret Thompson, AVP/Branch Operations Coordinator, said of Spieles, “Her dedication to customer service and knowledge of financial principles has played an important role in the success of our bank. We are pleased to acknowledge her many contributions with this promotion.”
Spieles previously attended Rhodes State College and has completed additional enrichment coursework from the Ohio Bankers League. She is an active member of Saint John the Evangelist Catholic Church. Rebecca and her husband, Drew, reside in Delphos, OH and have two children and one grandchild.
With offices in Bluffton, Celina, Defiance, Elida, Findlay, Lima, Springfield and Van Wert, Citizens National Bank has assets totaling more than $600 million and has been serving the communities of West Central Ohio since 1920.
There are pros and cons to buying or leasing a facility for your business. As a business owner, it’s important to think about a few things:
- How long do you think you want to be in that particular building or location?
- Will you eventually outgrow it?
- Are you willing to take on long-term debt?
- Will you want to maintain ownership of the building even if you sell your business?
- Could you consider leasing space to another company for extra income?
Estimating the anticipated growth of your company and the amount of time you think a particular building will meet your needs is a big consideration. If you foresee your building being adequate for 15 years or more, purchasing may be the right option for you. You will build up equity and have the opportunity to rent space to another company for extra income if you have additional square footage available.
If you think you’ll outgrow it soon and don’t have the ability to add on to your current space, leasing may continue to be the better option. Leasing also provides the benefit of lower overhead for your business and you can often write off the payment for tax purposes.
Looking ahead to when you’re ready to retire, if you own the building, you will need to consider if you will sell it along with your business or maintain ownership of the building itself. How close you are to retirement may also play a role in deciding whether or not you’re willing to take on the long-term debt real estate offers.
Due to the recession, the inventory of commercial buildings for sale is larger than in the past and thus, prices may be low enough to make purchasing a good business decision. Rates are still historically low and we work with the SBA and other local financing programs to provide you the most affordable option. Consult your accountant to determine if purchasing or leasing might be the best option for you, then give us a call!
“The direction of the US economy in 2015, 2016, 2017 is certainly going to be greatly impacted by the decisions that we have to make in 2014.” – Bob Morgan, Austin Associates, LLC
As lawmakers try to come to an agreement regarding the nation’s fiscal policy, 2014 looks to be a pivotal year for our economy. Economist Bob Morgan shares his outlook for 2014, predicting sluggish growth at a rate of 2 to 2.5 percent, due primarily to the lack of personal spending growth and an aging society. On a positive note, Morgan projects the auto industry, manufacturing and home construction will be the areas seeing the largest growth.
Deposit Accounts – Choice and Convenience
At Citizens National Bank we have been fortunate to be able to grow our lending balances at a fairly constant rate over the last number of years. We have entered new markets and been successful through our staff developing lending relationships with new borrowers. As part of the development of that total relationship, we would like to also gain those customers’ deposit accounts. Traditional household and business deposit accounts provide funding for our accelerated lending abilities. Plus, deposit accounts provide meaningful long-term relationships with our Commercial and Retail customers well after the loan relationship is paid off.
Our product specialists have been working hard to develop deposit accounts that feature customer choice and convenience along with personal service. We have fine-tuned account features that meet the needs of various customers like high speed merchant capture scanners to deposit checks remotely at reduced costs and accounts that offer lower transaction costs or no fee for minimal usage. Our Cash Management staff can explain ways to maximize ease of use for our customers whether they want to bank from their personal computer, mobile phone, or their tablet. Our goal is to identify the right products for the right customer that offers them convenience along with superior service.
Featuring Paul Kett, owner of Findlay Vinyl
“I really feel the people at Citizens put their priorities the same as mine and that is making my life, when it comes to banking, as stress-free as possible.” – Paul Kett
With an inherent love for hockey, Canadian and Findlay businessman Paul Kett depends on flexibility and teamwork to make his business and personal life manageable. Kett loves to spend time on the ice coaching his daughter and Citizens National Bank’s online products let him manage his finances on the road traveling for business or on the ice having fun. For him, it’s a winning solution.
Purchasing a home seems to be a rite of passage into the adult phase of life in our culture. But, how much home can you afford based on your existing income and debts? Deciding to purchase your dream home takes much consideration and planning. To determine how much of a home you can afford, you need to calculate your expected monthly payment.
Most of your payment will go toward loan principal and interest. However, your monthly payment is also likely to include amounts for property taxes and homeowner’s insurance. If you plan to make a down payment of less than 20% of the home purchase price, you will also have to add an additional amount for private mortgage insurance (PMI). Lenders require PMI to insure against the higher risk of default that occurs with loan-to-value (LTV) ratios greater than 80%.
After you calculate your monthly payment, you should calculate your housing and debt ratios. These ratios help you to get an idea of home affordability. Lenders rely on these ratios to help in their decisions to approve mortgage loans.
Your housing ratio is your total monthly payment divided by your monthly gross income. Generally, the ratio should not be more than 28%. For example, if your monthly payment is $1,650, your monthly gross income should be at least $5,892.
Your debt ratio is the sum of your mortgage payment and any other credit card or loan payments, divided by monthly gross income. Debt ratio will obviously be a higher percentage, since most people have other loans or credit card debt. Generally, your debt ratio should not be more than 36%. In this example, with monthly gross income of $5,892, your total loan payments (including the proposed mortgage loan payment) should not be more than $2,212.
How much of a home you can afford also depends on the amount of down payment you have saved. If you don’t have one saved, consider these alternatives:
- Federal government mortgage-financing programs. The U.S. Dept. of Housing and Urban Development (HUD) and Dept. of Veterans Affairs (VA) run loan programs for first-time homeowners and veterans of the armed forces. These programs require little or no down payment.
- Obtain private mortgage insurance. Private mortgage insurance, discussed above, allows you to make a down payment of as little as 5% of the home purchase price.
- Borrow against the value of your investments. Some financial institutions offer mortgages that are backed by the value of your investments. With these programs, your investment portfolio serves as the collateral for your mortgage.
- Borrow from your employer-sponsored retirement plan. Most employers allow you to borrow against the value of your 401(k) plan. (The IRS does not allow you to borrow from an IRA, however.) Remember that if you leave your job, you’ll likely have to pay back the full amount of the loan immediately.
- Withdraw funds from an individual retirement account. While the IRS does not allow you to borrow from an IRA, it does allow penalty-free withdrawals of up to $10,000 for first-time homebuyers. However, you will owe income taxes on the amount of the withdrawal.
- State government housing programs. Most states have programs to help residents buy their first homes.
In addition to a down payment, you should expect to pay closing costs on your home loan. Throughout the home financing process, there are many people involved to make sure that the home you’re buying is a sound investment for both you and the bank. Everything from your past credit history, to appraisals, to documentation preparation need to be in order.
Your lending officer will work with you to find the option that best works for you. But no one knows your financial situation like yourself. Being conservative in your projections of what you can afford is better than finding yourself in a position of being overextended. Be realistic in how much of your income you want to commit to a mortgage payment each month and still allow for the opportunity to save for your future.