| PFI Conversation: "It Builds Our Customer Base" |
The Columbus Bank and Trust, a member of the FHLBank Topeka, is located in east-central Nebraska in Columbus, a community of approximately 22,000 residents. MPF In Focus recently spoke with Executive Vice President/Chief Operations Officer Jeff Johnson who describes the Columbus economic environment as healthy. The area is supported by heavy industrial manufacturing, three public power plants, and robust ethanol production as well as a substantial agricultural yield. Jeff estimates the community’s employers attract a workforce living in a 35-40 mile radius.
The Columbus Bank and Trust, with approximately $100 million in assets, has been owned by the same family since 1935. The bank has been a PFI since 2005 and currently has $22.5 million in loans they service under the MPF Program.
 Jeff's MPF team includes (left to right), Lori Wessel, Michelle McMillan, and Chris Markham. Michelle, Assistant Vice President, joined Jeff in a discussion with MPF In Focus about their MPF Program experiences.
Q: What were the circumstances that led you to begin using the
MPF Program?
Jeff: Back in 2004, we had investors requiring a monthly minimum volume and it became increasingly difficult for us to make that kind of commitment. Michelle brought the concept of the MPF Program when
she joined our team, and I decided it was time to dip into the ocean to explore what MPF could potentially mean for us.
Q: What are some of the benefits you’ve realized through MPF products?
Jeff: It has been phenomenal. Our customers appreciate the fact that we continue to service their loans. They do not want to deal with servicing from a phone. The capability to offer fixed-rate financing is important to us. The MPF product is a vital part of the bank’s income flow.
Michelle: It is nice to be able to offer competitive rates to customers requesting smaller loans as well as larger loans.
Q: How would you rate your experiences with the MPF Program?
Jeff: We’re the poster child for MPF. We know our customers and being able to offer them something local is important.
Michelle: If we have questions, the FHLBank Topeka’s MPF support is quick to respond and provide clarification and solutions.
Q: What do you feel are the best benefits?
Jeff: The ability to offer 15- and 30-year fixed-rate loans. The initial fee income [we receive] and the ongoing income from servicing loans adds to our income stream.
Michelle: Being able to service the loans. We like our customers to stay with us and we can sometimes build relationships that result in car loans and checking accounts. We can offer good, competitive rates.
Jeff: It builds our customer base. |
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