volume 3 issue 2 state bankaccount - freeport€¦ · internet access. according to fiserv’s 2010...

STATE BANK ccountAJune 2010

ccountA

In this issue:2

Credit Report(continued)Becky Wise

3Cyberspace

SecurityDerrick Schubert

4Ag Update

Andrew GarnhartLocal

Economic Data

Volume 3 Issue 2

Defining the Numbers in Your Credit Reportby Becky Wise - One of our priorities at State Bank is to ensure that we are providing you with relevant financial information. We feel it is important to provide you with this information to improve your knowledge and to provide you a platform on which you can build a sound financial future. A

key component to any consumer’s financial future stems from their credit report and credit score.

Your credit report details the history of all credit you have received since you opened your first account. Based on your history, the credit bureaus give you a score which is used by creditors to determine your level of risk. The higher your score, the less of a risk you are. This means you will be more likely to get credit or pay less for it. Since this score sets the precedence for so many factors affecting your future credit needs, it is very important to ensure that you have done everything possible to obtain the best score.

In order to do this, it is imperative to understand how your credit score is determined. There are five key components determined when calculating your credit score.

1 Do you pay your bills on time?

Your credit score will be affected negatively if you have paid bills late, had an account sent to a collection agency, or filed for bankruptcy.

New Credit

Credit History

Amounts Owed

Payment History

Types of Credit

Damage Points - How Mistakes Affect FICO Scores

Credit Mistake If your score is 680 If your score is 780

Maxed-Out Credit Card Down 10 to 30 pts Down 25 to 45 pts

30-day Late Payment Down 60 to 80 pts Down 90 to 110 pts

Debt Settlement Down 45 to 65 pts Down 105 to 125 pts

Foreclosure Down 85 to 105 pts Down 140 to 160 pts

Bankruptcy Down 130 to 150 pts Down 220 to 240 pts

Credit Scores

Excellent Credit 750 and Up

Good Credit 720-749

Fair Credit 660-719

Average Credit 678

Uncertain Credit 620-659

Poor Credit 619 and Lower

How Your Credit Report is Calculated

(continued on page 2)

Defining the Numbers in Your Credit Report

Jun ‘10 Sep ’10 Dec ‘10 Mar ‘11 Jun ’11 Sep ‘11 Dec ‘11 Mar ’12 Jun ‘12

13%

12%

11%

9%

FreeportStephenson County

FREEPORT • STEPHENSON COUNTY UNEMPLOYMENT

12.8

11.3

12.0

10.511.0

9.710.1

11.0 10.0 10.2 10.19.8

11.9

10.5

11.3

12.1

11.4

10.4

99..7710.10.00 1111119.89.888

FFreeportreeporteeStephenson CountStephenson Countee nnFFSSSS

1212..88

1.1.33

112.2.001111..99

11.11.3333

1212..11

11.411.4441.1.33

1010.5.51111..00

11.11.0000 1010..00 1010..22 10.10.11..

1010..551110.10.4444


25000

20000

15000

10000

FreeportStephenson CountyFFSSSS

STEPHENSON COUNTY • FREEPORT EMPLOYMENT

11,331

22,333

11,261

21,862

10,889

21,46122,131

22,50122,195 21,784 21,213 21,215

11,092 11,229 10,909 11,053 10,763 10,764

FFreeportreeporteeFF

333333 2121,,862862 2121,,46146122,13122,13111

22,50122,5011122,19522,195 2121,,784784 21,21,21321322 21,21521,21522

331331 1111,,262611 10,88910,8891111,,092092 11,22911,22922 10,90910,90999 1111,,005533 10,76310,76377 10,76410,76477

Source: IDES

2 Are you maxed out?

The amount of debt you have compared to your credit limits affects your credit score. It is recommended that you have no more than 30% of debt as compared to your credit limits; 10% would be even better. If your debt is near your credit limits or is maxed out, this has a negative impact on your credit score.

3 How long is your credit history?

Having a short credit history can have a negative impact on your score but this can also be countered by making timely payments and keeping low balances.

4 Have you applied for new credit recently?

Applying for too many new accounts at one time, in which each requires an inquiry to your credit, may have a negative impact on your score. However, requesting your three free annual copies of your credit report for review will not impact your score.

5 How many and what types of credit accounts do you have?

Your score is affected based on the number and types of accounts you have. Having too many credit cards or loans from finance companies may negatively affect your score, while having a blend of credit cards and installment loans can help to improve your score.

In order to ensure that you have a clean credit report, it is important to review your report on at least an annual basis. You are entitled to one free credit report annually from each credit bureau: Equifax, Experian and TransUnion. You may request all three at the same time for review or at different times throughout the year to ensure proper reporting. You can request your free credit report at www.annualcreditreport.com. This website will allow you to choose from the three credit reporting agencies. You will not receive your credit score when doing so but you can pay a fee to receive this information.

If you have any questions regarding this article, please stop by or call me at 815.297.0900 or e-mail at [email protected].

Acknowledgements: - money.msn.com, www.federalreserve.gov/consumerinfo, www.ftc.gov, www.annualcreditreport.com

- Charts/Tables: ncs700.com, gobankingrates.com, repaircreditscore.info

(continued from page 1)

Breakfast

ec

onomic forecast

November 1stDon’t miss it!

by Derrick Schubert - Internet banking is now used by 72.5 million families. This is 80% of homes with internet access. According to Fiserv’s 2010 Consumer Billing and Pay-ment Trends Survey, online banking and mobile banking are growing at a faster rate than the internet. You now have the option to track your ac-

counts from anywhere, whether it is in your office or on the beach in Riviera Mia. This allows you to have complete control over the flow of your money within your bank or even between banks. In addition, the abil-ity to pay bills has become a popular feature that 36.4 million households are taking advantage of. However, as with anything, the convenience of internet banking does not come without risks.

Internet banking continues to expand every year, not only with services offered but also in security protecting the user. It is unfortunate that there are people who make a ‘career’ in computer hacking but it seems to be a growing industry. There are many avenues that a hacker can take to infiltrate internet banking and these avenues continue to grow alongside security. It seems as though when there is an addition of a new security feature it does not take long for a hacker to find a way around it. This emphasizes the importance of staying current on the topic of protecting yourself online. There are many layers of protection that you can put in place in order to minimize your risk including:• using complex passwords and changing them often• installing and keeping an up-to-date

antivirus program• understanding the use of internet cookies• daily watching your account for any

suspicious activity With the use of these practices, risk can be reduced substantially. Rebecca Wise did a great article on these particular issues in further detail in our previous newsletter which can be found on State Bank’s web-site under the ‘Commercial’ link.

There are, however, additional security measures that we, as your bank, are taking to protect you from fraudulent activity. State Bank is in the process of implementing a software program for commercial accounts called Guardian Analytics. The purpose of Guardian Analytics is to recognize and stop fraud attacks before the money is gone. This program will

monitor how the commercial customer uses their account and will recognize what is ‘normal’ business for them. When any abnormal behavior or anomalous transaction occurs, that transaction or instance will be brought to the attention of a bank employee for further review. For example, if a customer never has issues answering their challenge questions or enter-ing the correct password and suddenly has a string of incorrect information entered, this will trigger a red flag for further review. In another example, if this same small business has always logged on to internet bank-ing from the same computer and suddenly a new IP address is used, this too would trigger a red flag for further review. These situations would more than likely result in a simple phone call to the business owner to verify the information. This program monitors banking of all kinds whether it is mobile or internet.

At State Bank we understand the importance of protecting our customers from Internet Banking fraud. One of the best ways to prevent fraud is to stay current on security measures and check your account often. If you have any questions regarding internet security or our new Guardian Analytics software please do not hesitate to give me a call.


Acknowledgements:

- “Three Reasons to Take your Online Banking Relationship to the Next Level”, Manisha Thakor, Forbes.com

- “Online Banking, Payments Outpace Growth of Internet”, Matt Gunn, BankTech.com

Practicing Careful Security in Cyberspace


13%

12%

11%

9%

FreeportStephenson County

FREEPORT • STEPHENSON COUNTY UNEMPLOYMENT

12.8

11.3

12.0

10.511.0

9.710.1

11.0 10.0 10.2 10.19.8

11.9

10.5

11.3

12.1

11.4

10.4

99..7710.10.00 1111119.89.888

FFreeportreeporteeStephenson CountStephenson Countee nnFFSSSS

1212..88

1.1.33

112.2.001111..99

11.11.3333

1212..11

11.411.4441.1.33

1010.5.51111..00

11.11.0000 1010..00 1010..22 10.10.11..

1010..551110.10.4444

At State Bank we understand the importance of protecting our customers from Internet Banking fraud. One of the best ways to prevent fraud is to stay current on security measures and check your account often.

Breakfast

ec

onomic forecastNovember 1stDon’t miss it!

BANKING HOURS:Lobby Drive-upMon-Thurs 8:30am - 5:00pm Mon-Thurs 8:00am - 5:30pmFriday 8:30am - 5:00pm Friday 8:00am - 6:00pmSaturday Closed Saturday 8:00am - 12:00pm www.statebankfreeport.com

2010 2011 2012April 583,122 627,283 649,535 May 610,918 616,300 611,741June 623,430 608,955 657,670

FREEPORT’S SALES TAX REVENUE

Source: Illinois Department of Revenue

Local Economic DataOver the past two years, Freeport’s unemployment rate has decreased from 12.8% to 11.0% and the County’s has decreased from 11.3% to 9.7%. Although the decreases are a welcoming sign, it is not a function of an increasing workforce. Unfortunately, the number of people employed and employable continue to decrease. Since June of 2010, Freeport’s employed has decreased by 442 or 3.9% and the County’s employed has decreased 872 or 3.9%. As of June, Freeport had 10,889 people employed and the County had 21,461 employed.

The City’s sales tax revenue had a nice increase in the month of June with receipt of $657,670 versus $611,741 a year ago. This also compared favorably to last June’s receipt of $608,955.

Home sales continued its downward trend with 85 sold during the 2nd quarter of 2012 compared to 102 in 2011 and 149 in 2010. The Median price increased from $82,000 to $95,000 during the quarter.

*Stephenson County single family/condominium sales. Source: www.illinoisrealtor.org

150-

100-

50-

0-

STEPH CO HOME SALES - Qtr 2

2010 2011 2012

$100,000-

$90,000-

$80,000-

$70,000-

$60,000-

MEDIAN HOME SALE PRICE* - Qtr 2

2010 2011 2012

79,00082,000

95,000

85102

149

Ag Reportby Andrew Garnhart - 2012 has been one of the most challenging growing seasons that area farmers have experienced since 1988. What began as a very promising spring with ideal planting conditions quickly turned into a dry, scorching summer. Significant crop damage was done during the hot and stressful conditions, which will reduce

yields considerably in northern Illinois and across the Corn Belt. Stephenson County will likely see extreme variability in yields due to the scattered nature of rain this year and the varying degree of soil quality across the county. The August WASDE/USDA crop conditions report projected a national average corn yield of 123 per acre, which is down more than 40 bushels from projections in the spring. This is approximately 25% of production lost nationwide, which is very significant considering the current tight supplies and strong demand that the corn market has experienced.

Thankfully, precipitation levels have increased over the past few weeks. It won’t likely help the corn much (the damage there is done), but it could give a final boost to the soybeans…and certainly everyone’s psyche. Like one of my customers recently told me, “I’m just tired of talking about the drought. I’m ready to move onto next year.” Here’s to a safe harvest, more precipitation and a productive 2013.


volume 3 issue 2 state bankaccount - freeport€¦ · internet access. according to fiserv’s 2010...

Documents