Reminder

The Bank will be closed

on Thursday, November 27th, for

Thanksgiving Day

On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.

Putting Things in Perspective

A Note from the President of Horizon Bank...

"Many have said that the economic situation of today is a repeat of the Great Depression of 1929.  I’m not even sure it is a near first.  There are some similarities, but there are also many great differences." 

Janet L. Latimer, President & CEO of Horizon Bank

There are lifetime firsts that everyone will remember such as Neil Armstrong’s first step on the moon.  Wow, I remember that evening!  And there are personal firsts - the birth of our first son.  One of the biggest thrills for my husband and me!  And now the United States will have our first African American President.  This is a first for all of us. 

Next, let’s think about what some may call repeats.  Think of space stations where people live for months at a time.  For my family, it was the birth of our second son.  In politics it may be a woman in the White House.  While these are not truly repeats, they bring many of the same feelings as the undisputable firsts. 

Many have said that the economic situation of today is a repeat of the Great Depression of 1929.  I’m not even sure it is a near first.  There are some similarities, but there are also many great differences.   

Banks during the great depression had little capital and reserves.  Today banks have $1.36 trillion in capital plus $120.9 billion in reserves for a total buffer of $1.48 trillion.  Today 98% of the 8,500 banks in the United States are well capitalized.   

In 1929 and 1930 1,300 banks closed.  In 1929 there was no Federal Deposit Insurance Corporation (FDIC) and every depositor lost everything.  Today, the FDIC has reacted quickly.  The deposit insurance is now $250,000 per each account. And with the opportunity to have many accounts in one bank held by related owners, insurance coverage can be well over the $250,000 deposit level.   

In 1929 President Herbert Hoover and the Congress did not step up to address the situation.  With avoidance of the situation, by 1932 the Dow had dropped 90% and an estimated 44% of all first mortgages were in default.  Today, our mortgage mess looks like a disaster, however, only 2.75% of all mortgages are in default and only 6.4% are behind at least one payment.   

These are tough times, but perhaps the following will help all of us cope with it a little better.  The Internet bust was almost as extraordinary as the 1929 crash:  Between early 2000 and late 2002, the tech-heavy Nasdaq index fell almost 80%.  You may recall the speculative real estate lending that resulted in almost 2,000 bank failures between 1987 and 1991, and the Dow plunging 22.6% in one day in 1987.  While none of these were pleasant, you’re still here.    

The economy is stuck in neutral.  Some investments are losing some value.  There are concerns. But, the acknowledgment and the quick action by the Federal Reserve and Congress truly set this situation apart from 1929.  Banks nationwide have capital and reserves.  We have much to be thankful for.  This is not a repeat of the great depression. 

If Life is a Highway - How Far Will Your Savings Take You?

CD Special

18 Month Term

3.35 Annual Percentage Yield

Interest Paid Quarterly

The Annual Percentage Yield (APY) is based on interest being paid quarterly and assumes interest will remain on deposit until maturity.  Penalty for early withdrawal.  Penalties may reduce earnings.  Rate is effective as of October 31, 2008, and is subject to change at anytime.  Minimum initial deposit of $250.00.  Please contact a Banker for complete account terms and conditions.

Horizon Bank Member FDIC  On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.

Looking for other great ways to SAVE?

Let Horizon Bank help you get on the right path to a healthy financial future.  It is never too late to start planning for your retirement or even to teach your children to save.  Horizon Bank offers a variety of products and services to help you save money and improve your financial health.

·    Savings Accounts                         

·    Time Certificates of Deposit

·    IRA Savings and Certificate Accounts                       

·    Money Market Accounts

·    Health Savings Accounts

·    Direct Deposit

·    Automatic Transfers

·    U.S. Savings Bonds

For more information about improving you financial health visit http://www.fdic.gov/consumers/consumer/news/cnspr08/.  The FDIC Consumer News Special Edition: Money Tips for All Ages, provides advice for your finances at different stages of life.