Issue 11                                         OMB Connections                                          January 2016
Getting Down to Business                                  
Escrow Accounts
What is a mortgage escrow account? For many homeowners that have a mortgage, they are familiar with an escrow account. A mortgage escrow account is an account used to pay a borrower's homeowner's insurance, property taxes, or other mortgage-related items on the mortgaged property. Each month, the borrower pays a predetermined escrow amount along with their principal and interest to the bank. When property taxes, homeowner's insurance premiums, or other items are due, the bank will pay those items from the escrow account.
house_sale_cart.jpgEscrow accounts help homeowners budget their money by setting aside funds to pay their property taxes, insurance, or other mortgage related items when due. Old Mission Bank will pay the taxes and/or insurance on time even if the escrow account is insufficient to cover those bills. The bank will also typically pay the property taxes in the year they are due, which may be included as a deduction on your personal income taxes.
The escrow account is regulated by the FDIC under the Real Estate Settlement Procedures Act (RESPA). The bank is required to review your escrow account annually to adjust the escrow payment based on changes to the amounts paid out each year. There are also restrictions on the escrow balance the bank can maintain in your account.
The annual escrow analysis is often misunderstood because it takes into account many factors in order to adjust your escrow payment. Increases to you escrow payments are most commonly attributed to an increase in you annual insurance premiums or property taxes.
Construction Loans
Thinking of building that Dream Home? Old Mission Bank is ready to assist with your project. It's not too early to start planning what, where, and how much the cost of your new home will be. Old Mission Bank's construction loan is typically a 6 month term loan with interest only payments. This allows you to pay interest only on the money drawn for building project. The terms of your end loan are preapproved up front, so upon completion you can quickly transfer the completed construction project to a pay out mortgage.

home_wood_construction.jpgOld Mission Bank protects your project by following the Michigan Lien Laws and by requiring Title Insurance Endorsements on draws through out the construction project. Title Insurance protects your asset from property title liens by the recording of the Notice of Commencement, preparing of a Sworn Statement, and providing Full and Partial Lien Waivers. Your home is one of your largest assets; insuring the title is as important as Hazard/Fire Insurance. Let us partner with you to protect your assets.

Contact one of Old Mission Bank's lending experts today at (906) 635-9910 to discuss your project so you can enjoy your dream home this year!

Old Mission Bancorp, Inc. 4th Quarter Special Dividend Declared
A special 4th Quarter cash dividend of $.07 was paid on December 14th to shareholders of record date November 18, 2015.  The combined 2015 dividend of $0.30 is an 11% increase over 2014 dividends per share and represents 25% of the company's prior year net income. "2015 is the eighth consecutive year with an increased shareholder dividend. Original investors earned a 2015 return on investment of 3% with recent investors enjoying a 1.82% annual return on a $16.50 share cost" stated David Firack President and Chief Executive Officer of Old Mission Bancorp, Inc. "A consistent approach to risk management, asset deployment and capital growth is reflected in our performance, which has been the basis of our dividend growth. Our Board remains committed to consistent and fair dividends in line with performance, while retaining sufficient capital to support growth and buffer risks", concluded Firack.
In announcing the dividend, CEO Firack reported consolidated corporate 3rd Quarter assets of $109 million consistent with 3rd Quarter 2014, the balance sheet further strengthened by consecutive years of over 7% loan growth year to date. The company posted consolidated 3rd Quarter 2015 earnings after tax of $444,013, providing $1.05 in earnings per share on 563,131 shares, an improvement of 9.6% over 2014. Book value per share grew by 5.5% over 2014 same period, to a new high of $23.64.   
Old Mission Bancorp, Inc. has 308 shareholders with 563,131 shares outstanding, the vast majority owned by area shareholders who recognize the inherent value in a locally owned and controlled Community Bank. The corporation uses Camels Consulting, LLC, an independent bank consulting firm, to perform semi-annual stock valuations, with the June 30, 2015 valuation of $19.30 reflecting nearly a 2% increase over the $18.95 December 31, 2014 value.  "2015 sales activity trails 2014 sales volume, with small block sales of $15.50 and $16.50 achieved. Dividend growth and a community charter are viewed favorably by shareholders who see their community bank as a solid investment, an investment they want to retain" stated President & CEO Firack. "The Eastern Upper Peninsula of Michigan is our home, and as our area grows and thrives, so does Old Mission. New shareholders bring additional demand for banking services and shares, which drives earnings and provides liquidity for existing shareholders, maintaining franchise vitality and viability. We want to grow our shareholder base and encourage investors to contact our executive management team about stock opportunities" stated Tom Robinson, Chairman of Old Mission Bancorp, Inc.
Old Mission Bancorp, Inc., a locally owned and controlled one bank holding company, with Old Mission Bank its $108 million asset operating entity, has its main office in Sault Ste. Marie and a branch in Pickford, Michigan. Old Mission Bancorp, Inc. has a twelve member Board of Directors consisting of Thomas Robinson (Chairman), Carol Brawley, Steven Cannello, Catherine Chenoweth (EVP/CFO) Kevin Cooper, David Firack (President & CEO), Theodore Haapala, Anthony Haller, James Halvorsen, D. Joseph McCoy, Gary Sharp (EVP of Old Mission Bancorp, Inc. & President/CEO of Old Mission Bank), and Frederick Smith. 

Employee Spotlight                                            
Nick, Lending Officer: Employee of the Quarter, 3rd Quarter 2015
Nick joined the Old Mission Bank team in May of 2013 as a Credit Analyst. He has since been promoted to a Retail and Commercial Loan Officer. Nick's commitment to Old Mission Bank, exemplary customer service skills, and willingness to do anything asked of him are some of the many reasons he was awarded Old Mission Bank's Employee of the Quarter for the 3rd Quarter of 2015.

Nick was born and raised in Sault Ste. Marie, MI and graduated from Sault High in 2008. He attended the University of Michigan and graduated with a Bachelor's in Mathematics. Shortly after graduation, Nick moved back to Sault Ste. Marie where he currently resides with his wife, Rachel and their three young boys: Zachary, Grayson, and Wyatt.
Nick is an active member of the Sault Ste. Marie Rotary Club and in his free time enjoys basketball, playing guitar, and spending time with his family.
Kara, CSR: Employee of the Quarter, 4th Quarter 2015
Kara is a Customer Service Representative at Old Mission Bank's Pickford Branch. She joined the OMB team 2 1/2 years ago. Kara is described by her coworkers as having a vibrant personality, loved by customers, dedicated and proud to serve Old Mission Bank, and always willing to participate and volunteer for Bank events. For these reasons and many more, Kara was awarded Old Mission Bank's Employee of the Quarter for the 4th Quarter of 2015.
Kara grew up in Pickford, MI and still resides there with her husband of 2 1/2 years, Rob; her step-daughter, Haley (18); her step-son, Tommy (15); and her son, Owen (4).

Outside of work, Kara enjoys being with her family, visiting with friends, boating, fishing, and anything else outdoors.

Deborah, Operations: 2015 Employee of the Year
Deborah joined the Old Mission Bank team in June of 2013, bringing with her 25 years of banking experience. Deborah is described by her coworkers as reliable, friendly, professional, and dedicated. Deborah always has a smile on her face, is a team player, and goes above and beyond the call of duty. She is a true asset to Old Mission Bank and to those who work directly with her. 

Deborah is originally from Mt. Morris, MI; however, she moved to Sault Ste. Marie in 1984. Deborah was voted Employee of the quarter for the 4th Quarter of 2014.
Outside of work, Deborah enjoys kayaking, camping, golfing, fishing, knitting/crocheting, and spending time with her friends and family.
In This Issue
Unwanted Software Can Cause Unwelcome Problems
Does your internet browser ever display ads that just seem wrong--for example, an inappropriate ad on a kid's website, an ad that blocks content on the page, or an ad on a government website? Free downloads sometimes come with hidden software that can:
  • cause your computer to slow down or crash
  • modify your security settings, greatly increasing your risk of viruses
  • inject scammy and inappropriate ads into your browser
  • make it difficult to remove the software
If your computer has symptoms like these, click here for more information.

Did you notice that starting in July, Old Mission Bank employees were dressed down on alternating Wednesdays? For those of you who are not familiar with this trend, we are raising money for our Adopt-A-Family program. Every other Wednesday, employees have the opportunity to pay $5 to wear jeans. For the past 6 years, we have raised enough money to assist two families during the holidays each year. We use the funds collected to provide the families with food, toys, grocery cards, clothing, household items, etc.


Old Mission Bank employees donate year round to a number of charities. So, when you see us in jeans...you know we're doing it for our community!

IRS Urges Public to Stay Alert
The IRS continues to warn consumers to guard against scam phone calls from thieves intent on stealing their money or their identity.  Click here for additional information.
Pack of Facts

Banging your head against a wall burns 150 calories in an hour.


In the UK, it is illegal to eat mince pies on Christmas Day.


When hippos are upset, their sweat turns red.


A flock of crows is known as a murder.


"Facebook Addiction Disorder" is a mental disorder identified by Psychologists.


The average woman uses her height in lipstick/chap stick every 5 years.


May 29th is officially "Put a Pillow on Your Fridge Day".


Human saliva has a boiling point three times that of regular water.


If you lift a kangaroo's tail off the ground it can't hop.


An eagle can kill a young deer and fly away with it.


Polar bears can eat as many as 86 penguins in a single sitting.


King Henry VIII slept with a gigantic axe beside him.


Heart attacks are more likely to happen on Monday.


A toaster uses almost half as much energy as a full-sized oven.


You cannot snore and dream at the same time.


A baby octopus is about the size of a flea when it is born.


A sheep, a duck, and a rooster were the first passengers on a hot air balloon.


Recycling one glass jar saves enough energy to watch TV for 3 hours.


Catfish are the only animals that naturally have an odd number of whiskers.


The Titanic was the first ship to use the SOS signal.


Old Mission Bank
2701 I-75 Business Spur
Sault Ste. Marie MI 49783
Main Office: (906) 635-9910
Pickford Branch: (906) 647-9910