Sept. 19, 2005


  • Our board is committed to providing our core services, savings and loan products without charging fees. However, we are finding that fee income is a growing and necessary component to our profitability. We are trying to increase it using user optional (Overdraft Privilege, Skip-A-Payment), user usage commissions (interchange, insurance) and abuse fees (NSF, late payment). We make every effort to provide the highest savings rates and lowest loan rates in our area on our products. The 40-year low market interest rates and now the regular 25bp market rate increases have provided a challenge for us. Our ALM model has made managing our balance sheet and the associated interest rate risk less of an uncertainty and more of an educated decision-driven process.