Insights. When opportunity knocks... Answer the door. l. S p o t l i g h t o n. A publication brought to you by Bank of Springfield

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1 os Apri 2008 Insights A pubication brought to you by Bank of Springfied When opportunity knocks... Answer the door. Home oan Options - Detais on page 2. Inside this Issue. Home Loans. BoS Home Loans... p2. What Are My Options?... p2-3. Meet Phi Chies... p3. Home banking. Update... p4. Congrats. Student of the Month... p4-5. Empoyee of the Year... p5. No Sub-Prime Woes for BoS cassic 50. Activities And Tours... p5 News to use. ATM Locations... p6. Community Invovement... p6. S p o t i g h t o n Service. BoS Residentia Lenders... p7. Hours & Hoidays... p7

2 Bank of Springfied home oans Bui d i n g, Buy i n g or Rem o d e i n g? We are ready to hep. { } Three oans......different features......one to suit YOUR needs. So far, 2008 has shown increased activity in the Springfied housing market. Whether it s new construction, purchase of an existing home, remodeing, or refinancing an existing mortgage, BoS has knowedgeabe, professiona empoyees ready to hep you understand your financing options. Which one is right for ME? Here s a coser ook at some of the financing options avaiabe today through BoS. Brenda Poston Senior Vice-President, Construction Lending Construction Loans Apri 2008 What are my options? Buiding a new home is an exciting and chaenging process. According to Brenda Poston, Senior Vice-President Construction Lending, The most important part of the construction process is panning. Before you even sign a contract for a ot I recommend you contact your buider to make sure the ot is suitabe for the home pan you are considering. Poston states good communication with your buider is essentia, Good communication with your buider wi not ony insure the finished product matches what you envisioned, but it wi aso hep you contro costs. Whie financing new construction is a itte more invoved than financing the purchase of an existing home, it is sti a fairy straight forward process. When you buid a new home, your financing begins with a construction oan, which is interim financing designed to pay construction costs as they are incurred. The term for most construction oans is 6-9 months. Interest is cacuated on the funds advanced during the biing cyce, not the entire oan amount. Loan amounts are determined by anayzing the tota project cost and the appraised vaue of the proposed competed project. When the home is compete, the construction oan is converted to permanent financing in the form of a residentia mortgage oan. When you appy for a construction oan your oan officer wi ask you to provide the foowing information: A compete set of pans showing the foundation, foor pans for a eves, and front and back eevations of the proposed home; A compete itemized cost breakdown; A detaied description of materias or specifications; A copy of the buiding contract; A compete residentia oan appication; Contract to purchase ot or the evidence of tite for property; Signed Borrower Information Authorization form; Copies of your W-2 s for the ast two years; and Copies of your ast two pay-stubs. The approva and the cosing of your oan wi usuay occur within two to three weeks of submitting your compete appication. 2

3 Home oans Meet Home Equity Loan vs. Home Equity Line of Credit You aready know your home s equity is a vauabe resource. A Home Equity Loan or a Home Equity Line of Credit can be a homeowner s best friend if used wisey. Most of us usuay think of borrowing from our home s equity for home improvement projects. But don t et the name home equity deceive you. These oans can be used for anything. You can consoidate debt, pay for your chid s coege education, purchase a home computer or fund that vacation you ve dreamed about. With a Home Equity Loan, ike most oans, you request a specific amount of money you wish to borrow over a specific period of time. You repay the oan by making fixed principa and interest payments over the term of the oan. A Home Equity Line of Credit, or HELOC, is aso secured by your home. Unike a home equity oan, however, a ine of credit aows you to borrow money as you need it for the term of the oan. Your maximum oan amount is based on the amount of equity you have in your home. Much ike a credit card, when you pay on the principa amount of a home equity ine, that amount of credit again becomes avaiabe to you. Lines of credit are most commony variabe rate oans based on the prime ending rate. The biggest advantage of using equity in your home is that the interest you pay on your oan may be tax deductibe, ike the interest you pay on your first mortgage. You shoud, however, consut a tax advisor regarding the deductibiity of interest and charges with this type of oan. Residentia Mortgage Loans If you decide you want to buy a new home or if you simpy want to refinance your existing home, residentia mortgage oans can be acquired for a number of different terms. In most cases, you ony need to provide your oan officer with the foowing information: A competed residentia oan appication; A signed Borrower Information Authorization form; Contract to purchase ot or evidence of tite for property; Copies of your federa tax returns compete with a schedues and W-2 s for the ast two years; and Copies of your ast two pay-stubs. Phi Chies Phi Chies is President of Capita Area Association of Reators. According to Phi, One of the most popuar misconceptions is that no one is buying a home, and home prices are faing rapidy. Athough there are areas throughout the country where this is true, this is not the case in the capita area. So, whether you choose to buid or buy, now is a good time. Phi beieves the biggest advantage to buiding a new home over buying an existing home is that you re not buying someone ese s home. You can custom buid the home to meet your famiy s needs. You are abe to put the money into the specific areas of the home you want to be nice. But Phi aso cautions that you shoud take resae potentia into consideration when making your custom decisions. If you decide to buid, Phi beieves it is extremey important to interview a number of different buiders and choose the one with whom you are most comfortabe. You be working with this person for 4-6 months so you want one with a personaity that is compatibe with yours. He aso recommends that you ask to visit homes previousy constructed by the buider. If they say you can t go through one of their homes, you d better run. Again, the approva and the cosing of your oan wi ikey occur within three to four weeks of submitting your compete appication. A oans subject to credit approva. Backed by the fu faith and credit of the United States government FD I C Each depositor insured to at east $100,000 Federa Deposit Insurance Corporation 3

4 Bank of Springfied home banking Home Banking Update New... Funds Transfer Option Apri 2008 If you have ever transferred money from one BoS account to another through Home Banking, you know how convenient that service is. Now, with the new Funds Transfer function, you can transfer money between your BoS accounts and accounts at other financia institutions. The Funds Transfer transactions typicay process in three business days, but for a sma fee you can transfer up to $2,000 the next day. There is no monthy charge for the service and a standard transfers into BoS accounts are free. Sma fees appy to transfers from BoS accounts to other institutions. To get started, simpy og in to home banking, cick on Payment Manager and foow the Funds Transfer ink. For more information, fee free to attend one of our Home Banking seminars isted to the right. Got Quicken? For those of you who use Quicken or Money, you wi be excited to earn that DirectConnect is here! DirectConnect aows you even greater fexibiity in managing your persona finances. You can now reconcie your account and transfer money directy through Quicken or Money, making banking at home even faster and more convenient. home banking seminars Apri 16th Apri 17th June 25th June 26th Juy 15th Juy 17th September 16th September 18th October 21st October 23rd Congra Sangamon County Students Each month, The Susan Cook House Student of the Year Program acknowedges the Sangamon County students chosen as student of the month. These students are eigibe to receive the Susan Cook House Student of the Year Schoarship to be announced in May. We extend our congratuations to our BoS customers who have earned this prestigious award. Sierra Campbe Sacred Heart-Griffin High Schoo Daughter of Lisa and Richard Campbe Ian Lake Rochester High Schoo Son of Pau and Stephanie Lake No Sub-Prime Woes for BoS During the weekend of March 15th, economic headines were dominated by the possibe coapse of Bear Stearns. Bear Stearns, one of the nation s odest banks, found themseves in troube as a resut of their investment in the subprime mortgage market and a ack of confidence within the financia markets. It appears they wi be baied out by another of the nation s argest banks. According to BoS President, Mick McGasson, Nationay, economic 4 Not Currenty a Home Banking Customer? Wanna Be? Give us a ca at We ook forward to heping you get started. Did you know...you can teach your chidren to earn how to save money? Tuesday, Apri 29th is Nationa Teach Your Chidren to Save Day. The American Bankers Association Education Foundation estabished Teach Chidren to Save Day to spotight the importance of teaching our nation s youth about saving money. Customers are invited to bring their chidren to

5 ts... Congrats To One of Our Own... Roger Bucher was named the 2007 Empoyee of the Year. Roger manages the BoS Cassic 50 Program. Matthew Wofson Sacred Heart-Griffin High Schoo Son of Henry and Gerri Wofson Zachary Giet Sacred Heart-Griffin High Schoo Son of Aan and Karen Giet conditions coud be better and we can expect even more faout from the mortgage crisis. However, this crisis wi have itte or no impact on BoS as we have avoided the sub-prime markets. Tom Marantz, Chairman of the Board of BoS, agrees saying, In retrospect, our decision not to activey participate in the sub-prime mortgage market was the correct course of action. Today our oan portfoio and our iquidity ratios are strong. Cassic 50 Activities & Tours Activities Apri 14 Cassic 50 Ceebration Apri 17 Andre Rieu concert Apri 18 Caifornia New Year s Information Meeting May 8 St. Louis Treasurers Tour May 17 St. Louis Fox Theatre-Jersey Boys May 18 Barn II Dinner Theatre May 30 Costa Rica - Nature s Museum Information Meeting June 30 St. Louis - Shoes, Booze, and Baseba Juy 6 Chicago Cubs vs. St. Louis Cardinas, Busch Stadium, St. Louis Major Tours June 5-14, 2008 Vancouver and the Canadian Rockies August 30-September 7, 2008 Coumbia River Cruise December 29, 2008-January 2, 2009 Caifornia New Year s Getaway January 17-25, 2009 Caribbean Cruise - Ceebrity Sostice Apri 16-24, 2009 Costa Rica - Nature s Museum cassic 50 one of our branches anytime during the week of Apri 28th for a free gift. Suppies are imited, so don t wait! Word Connect is a partnership between BoS and Coette Vacations. In addition to the four major tours we offer each year, our Word Connect Program provides you with even more domestic and internationa trave destinations from which to choose marks Coette s 90th year in the trave industry. Roger Bucher has worked with Coette for neary 20 of those years so he knows first hand about the quaity of their services. If there is a particuar destination you woud ike to visit, ca Roger at Our Word Connect Program may be abe to accommodate you. 5

6 Bank of Springfied news to use Our ATM Locations Springfied ATM Locations Bank of Springfied, 2600 Stevenson Dr. Bank of Springfied, 3400 Wabash Ave. Bank of Springfied, 850 East Madison St. Sangamon County Circuit Cerk s Office, 200 South 9th St. Jefferson Street and Wanut Street, On the North West Corner Koke Mi Medica Center Stanford Avenue and 5th Street King Pin Bowing Aey, Sangamon Ave. and Dirksen Pkwy. Montvae Shopping Center, Chatham Rd. and Ies Ave. Popeye s Famous Fried Chicken, 2801 South Grand Ave. East Sangamon Chapter Credit Union, 310 S. Grand Ave South 6th Street, by Hoywood Video Jacksonvie ATM Locations Bank of Jacksonvie, 1701 Morton Ave. Surcharge-Free ATM Network We have joined an aiance of community banks in the Centra Iinois area and beyond to offer our customers an expanded surcharge-free ATM network. There are over 200 ATMs avaiabe for you to use in Iinois, Missouri and Kentucky. Here are a few you may find convenient: Chatham The Bank & Trust Company, Rte. 4 & Pummer Chatham Marine Bank, 470 North Main Paza Rochester Rochester State Bank, Rte. 29 & State St. (Subway Parking Lot) Rochester The Bank & Trust Company, 201 N. Wanut Virden Prairie State Bank, 603 N. Springfied St. Decatur Prairie State Bank & Trust, 1000 W. Pershing Decatur Prairie State Bank & Trust, 2028 Mount Zion Rd. Tayorvie First Nationa Bank of Pana, 600 W. Spresser St. Pana First Nationa Bank of Pana, 306 S. Locust St. Pana Nationa Bank, 302 W. 2nd St. Springfied & A Marine Bank, Prairie State Bank & Trust and Jacksonvie Premier Bank of Jacksonvie Locations Visit for a compete ist of Surcharge-free ATM ocations. Stife Bank Midand States and Trust Bank Roya Banks HNB Bank N.A. of Missouri Community Bank Eage Bank of Trenton Commercia State First State Bank Bank - Wateroo of St. Robert The Bank & Crossroads Bank Trust Co. First Community Business Bank Bank Premier Bank Henderson Nationa Bank Bank of O Faon First United Bank United Community Bank of West KY Sacramento Deposit Bank Farmers & Merchants Bank First State Bank Farmers Bank and Trust Company The Bank of Boivar Mid-America Bank & Trust Company Bank of Springfied Rochester State Bank Prairie State Bank & Trust Community Invovement Caddyshack Apri 2008 The 23rd Annua Caddyshack Gof Outing is schedued for June 19th at Piper Gen. This annua gof outing raises money for a different charity each year. Last year the outing supported Springfied s new Southwind Park. This year, proceeds wi be used to benefit St. Martin DePorres Center and Brave Heart. St. Martin DePorres provides resources for ower-income individuas. Braveheart provides therapeutic horseback riding essons for peope of a ages with menta, physica, emotiona, socia, behaviora, visua and hearing disabiities. If you re interested in paying in this year s outing, or if you woud ike more information, pease ca Joan Whaey at or visit our website at bankwithbos.com. BoS Dog BoS Dog has been busy entertaining kids in the community. In January he attended the United Cerebra Pasy Teethon at the Crown Paza Hote. BoS has supported UCP for many years, pedging, vounteering and BoS Dog enjoys going to the teethon to pay with the chidren who benefit from the charity. He aso made an appearance at St. Agnes Eementary Schoo to hep students ceebrate Mardi Gras. The chidren enjoyed the tchotchkes he handed out incuding sma stuffed BoS Dogs. A good time was had by a. 6

7 Spotight on Service Shining the Spotight o n... BoS Residentia Lenders If you re one of the many customers who cosed a BoS mortgage oan in the first nine weeks of 2008, you might be interested in knowing that you are one of 262 who kept the BoS Residentia Loan Officers husting. Just how busy were they? 221 of those oans cosed over a five week period. Athough there are a ot of steps invoved in residentia ending, the process itsef isn t a compicated one, according to Assistant Branch Manager Justin Stone. BoS Residentia Lenders spend a great dea of their time taking with customers, exchanging information and answering their questions. Wiie Sheehan processes mortgage oans at our Madison branch in Springfied. He says the aspect he enjoys most about his job is the constant contact he has with customers and being abe to assist them during the ending process. Stone says that the question he s asked most often is, Does BoS se their mortgage oans. The most important thing customers shoud know about their mortgage is that we do not se the rights to service their oan says Stone. The ony exception is certain jumbo oans that exceed conventiona imits. Wabash Justin Stone Amy Ha Ji Sommer Jason Knoeder BoS Residentia Loan Officers Stevenson Andrea Fry Madison Wiie Sheehan The most important thing You Shoud Know BoS services Mortgage Loans ocay Jacksonvie Abbe Litte Swansea Shawn Haider Know someone worthy of recognition? Let us know! Send us a etter expaining who you fee deserves recognition. Business Hours Springfied 3400 W. Wabash Ave Stevenson Dr. 850 E. Madison Lobby M-Thr 8:30 am - 5:00 pm Friday 8:30 am - 6:00 pm Saturday 8:30 am - Noon Drive Up Teers M-Thr 7:30 am - 6:00 pm Friday 7:30 am - 7:00 pm Saturday 7:30 am - Noon (217) Jacksonvie 1701 W. Morton Lobby M-Thr 8:00 am - 5:00 pm Friday 8:00 am - 6:00 pm Saturday 8:00 am - Noon Drive Up Teers M-Thr 7:30 am - 6:00 pm Friday 7:30 am - 6:00 pm Saturday 7:30 am - Noon (217) Metro-East 1717 N. Iinois Swansea, IL Lobby M-Fri 8:30 am - 3:30 pm (618) Bank of Springfied wi be cosed on the foowing business days to observe these hoidays: Mon., May 26th Me m o r i a Da y Fri., Ju. 4th Independence Day Mon., Sept. 1st Labor Day Tues., Nov. 11th Veteran s Day Thurs., Nov. 27th Thanksgiving Day Wed., Dec. 24th Ch r i s t m a s Ev e (Cosing at Noon) Thurs., Dec. 25th Christmas Day 7

8 Home Equity Loan Specia Home Equity Loan Specia Home Equity Loan Specia 5.99% A.P.R. 5.99% * Annua Percentage Rate (A.P.R.) based on $15,000 home equity oan for a 48 month term with 48 monthy payments of $ A.P.R. appies to customers who choose to have their monthy oan payment automaticay deducted from a Bank of Springfied deposit account. A $50.00 oan preparation fee wi appy for customers who do not sign up for automatic transfer. Existing Bank of Springfied * Annua oan baances Percentage do not Rate quaify (A.P.R.) for specia based rate. on Limited $15,000 time home offer. equity See Bank oan of for Springfied a 48 month for further term with detais. 48 monthy A rates subject payments to change. of $ A oans subject A.P.R. to credit appies approva. to customers who choose to have their monthy payment automaticay deducted from a Bank of Springfied deposit account. A $50.00 oan preparation fee wi appy for customers who do not sign up for automatic transfer. Existing Bank of Spring oan baances do not quaify for specia rate. Limited time offer. See Bank of Springfied for further detais. A rates subject to change. A oans subject to credit approva LKCS rcentage Rate (A.P.R.) based on $15,000 home equity oan for a 48 month term with 48 monthy payments of $ A.P.R. appies to customers who choose to have their m omaticay deducted from a Bank of Springfied deposit account. A $50.00 oan preparation fee wi appy for customers who do not sign up for automatic transfer. Existing Bank of s do not quaify for specia rate. Limited time offer. See Bank of Springfied for further detais. A rates subject to change. A oans subject to credit approva. Bank of Springfied P.O. Box Springfied, IL NCAA Bank Shot win with BoS 1,622 peope registered in the BoS NCAA Bank Shot contest. Visit to see the ist of winners.