Free Student Checking Account…Check it out!

First Federal Bank recently developed a new Free Student Checking Account in an effort to meet the specific needs students have.  Most times, this is their first checking account and their first experience in taking responsibility of their finances.  We kept this in mind when developing the account.

This account features:

• No monthly service charge.
• No minimum balance requirement.
• One overdraft fee waived.
• Unlimited transactions.
• Free Debit MasterCard®.
• Five free foreign ATM transactions per month.*
• Free online banking and bill payment.
• Monthly electronic statements.

This account is offered to students ages 23 and younger.

As an incentive, all new accountholders will receive a $25 iTunes Gift Card.  Hurry in and take advantage of this limited time offer!

For more information on our Free Student Checking Account, call 253-2605 and ask to speak with a  Branch Manager or  Relationship Banker.

*Applies to First Federal Bank fees only.

FDIC INSURANCE COVERAGE

   $250,000 coverage made permanent

The FDIC-short for the Federal Deposit Insurance Corporation-is an independent agency of the United States government.  The FDIC protects you against the loss of your deposits if an FDIC insured bank or savings association fails.  FDIC insurance is backed by the full faith and credit of the United States government.

On October 3, 2008, Congress temporarily increased the basic insurance amount from $100,000 to $250,000 per depositor per insured bank. This increase has been made permanent.   On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act which made the standard deposit insurance coverage amount of $250,000 permanent.

Deposit accounts maintained in different legal ownership categories (such as individual or joint accounts) are insured separately.  You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories.

For Example:

Husband & Wife qualify for $2,000,000.  Here's how:

Individual Accounts:

  Husband  ($250,000)

  Wife  ($250,000)

Joint Tenancy:*

   Husband & Wife  ($500,000)

Revocable Trust Accounts:

   Husband as trustee for wife  ($250,000)

   Wife as trustee for husband  ($250,000)

Certain Retirement Accounts:

  Husband  ($250,000)

  Wife  ( $250,000)

Total Coverage  $2,000,000

*Joint account with right of survivorship.

If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank, you do not need to worry about your insurance coverage - your deposits are fully insured.

For more information on the FDIC, go to www.fdic.gov.

Find us on facebook!

First Federal Bank is now on facebook!  Facebook is another form of communication we can use to connect with our customers.  We plan to share any and all activities First Federal Bank and its staff are involved in from community service projects to events we attend like the recent “What Women Want” Fair.

Facebook will also be used to highlight special products and promotions that we offer and to educate you on financial issues. 

Go to facebook.com and “become a fan” of First Federal Bank!

Why Buying a House Now Could Be a Wise Move

Now could be a great home buying opportunity.  Are you qualified to buy a home?  Does the purchase make sense for your situation?  Are you prepared to live in that home for at least five years?  If so, then there may be several good reasons why buying a house might be a wise move for you.

Mortgage interest rates are at 40 year low.

It’s not just the price of the home that will affect affordability; mortgage rates will also affect your monthly payments.  Earlier this year, rates on a 30-year fixed rate mortgage hit a level not seen in decades and still remain low.  Now may be the time for you to take advantage of these great interest rates.

Large inventory of homes.

There has been an increase in the number of days it takes to sell a home.  This has contributed to an increase of houses available to you – both new homes and existing homes.  This gives you more choices and can help when negotiating the price of a home.

Builders may also be willing to lower their prices to move their inventory.  It helps if you go into the negotiations with a pre-approval for a mortgage loan.

First Federal Bank takes the worry out of home financing.

With a variety of lending programs to choose from, we can help you get the home you want at the terms you need.  We can pre-approve you so you know just how much you can afford.  We will take the guess work out of it for you.

Call today!

For more information on our lending programs, or to get pre-approved, contact a loan originator at (859) 277-5945.

Overdraft Regulation Changes….effective July 1, 2010

The Federal Reserve issued new Regulation E requirements that became effective July 1, 2010.  These new requirements limit the ability of financial institutions to assess an overdraft fee for paying automated teller machine (ATM) and one-time debit card transactions that overdraw a consumer’s account.

Beginning July 1, (August 15 for existing customers) new customers are required to complete a consent form to “opt in” or agree to the terms and conditions of overdraft services.  Or, they will choose to “opt out” where First Federal Bank is not authorized to pay any overdrafts resulting from ATM or debit card transactions.

To consent or continue receiving the benefit of having First Federal Bank pay debit card transactions and ATM withdrawals that take your account negative, you are now required to have a signed consent form on file.

When this regulation becomes effective for your account, should you decide to “opt out” or no longer be covered under our overdraft services, First Federal Bank will no longer authorize and pay for ATM withdrawals and one-time debit card purchases.

If you want First Federal Bank to authorize and pay overdrafts on ATM and everyday debit card transactions, you must “opt in” by signing a consent form.  This formed was included with your July statement or you can stop by any branch location to sign it.

Mortgage Credit Certificate Program

Mortgage Credit Certificate (MCC) reduces the amount of federal income tax you pay.  The tax credit is 25% of the interest paid each year on the mortgage but cannot exceed $2,000.  The MCC is available each year for the life of the loan.

Who Qualifies?

• First time homebuyers who have not owned a home in the last three years
• Maximum home sales price is $258,000
• Maximum income limits:

1-2 person household:    $52,800— $83,040

3-4 person household:    $60,720—$96,880

• Borrower must occupy home

This program ends at the end of 2011, but the funds may be exhausted prior to that date so hurry in or call a loan originator today!

First Federal Bank Partners to Help Prevent Crime in Senior Housing Facility

First Federal Bank has partnered with Richmond Place Rehabilitation and Health Center (owned by Brookdale Corporation) to bring the Senior Housing Crime Prevention Program (SHCPF) to the residents of Richmond Place. 

Pictured George Clinard, SHCPF Vice President; Bill James, First Federal Bank President;

Jamie Gitzinger, Richmond Place Administrator; Mayor Jim Newberry;  Captain James Turley

The Senior Crimestoppers Program provides on-going crime prevention programs designed to deter incidents of crime in long-term care and senior housing facilities.  The Program will provide the Center a proven system for further preventing crime against its patients and staff including ongoing education for residents and their families and for staff members, lock boxes for the residents’ personal property and medication, access to an anonymous tip-reporting hotline, and cash rewards for information that could help the facility solve or prevent a crime.  “First Federal Bank’s commitment to this program demonstrates their belief in giving back to the community that they serve,” said George Clinard, SHCPF Vice President.  “We do view this partnership as a way for First Federal Bank to give back to the community in a very important way,” stated William W. James, bank president.  “Our commitment in this program will help further strengthen the fight against crime perpetrated on the elderly.”

The SHCPF presented the Charter representing participation in the program to Richmond Place and First Federal Bank on Wednesday, August 12, 2009.  On hand for the event was Lexington Mayor Jim Newberry, Lexington Police Captain James Turly, representatives of SHCPF, Richmond Place Rehabilitation and Health Center, as well as First Federal Bank.  “It’s great to live in a city where there are fine corporate citizens such as First Federal Bank.  We all appreciate the willingness of Bill James and his staff to work in partnership with Richmond Place Rehabilitation and Health Center to bring in the Senior Housing Crime Prevention Program,” stated Mayor Newberry.

First Federal Bank is very excited about this partnership and helping the residents of Richmond Place.  For more information, please contact Kathy Stichnot, Hamburg Branch Manager at kstichnot@ffbankky.com or 859-244-7232.

Main Operations now located on Sir Barton Way in Hamburg.

The main operations of the bank have been relocated to our Hamburg location at 2452 Sir Barton Way.  This three story building was acquired in June of 2008.  We opened a new branch location in this building and transferred the headquarters for our Mortgage Lending division.  In July of 2009, we relocated all Main Office Operations to the second floor of this facility.  Departments affected by this move include….Electronic Banking, Accounting, Loan Servicing, Information Technology, Commercial Lending, Marketing and all Senior Management Staff.

Some changes that may affect you.

Our new general mailing address:   2452 Sir Barton Way

                                                         Lexington, KY  40509

Our general telephone number will remain unchanged.  It is 859-253-2605.

Our new general fax number:   859-264-1322.

Our location at 110 W. Vine Street now operates as a branch office.  The outstanding service you have received at this location will continue.  The direct line to reach this branch is now 859-244-7200.  The direct fax number is 859-244-7222. 

New Bank@Work Program

A new program called Bank@Work has recently been added to our product line.  This program makes establishing a new account easier and more convenient.  Our bank comes to you at your workplace.

Included with it are special benefits offered exclusively to our Bank@Work customers.

How it works!

First Federal Bank staff will meet with a company’s employees onsite.  They will meet one-on-one with them to explain the program and get them enrolled.  Our convenient “Switch Kit” makes changing accounts quick and easy.

Once enrolled, customers receive several benefits and “perks” including…no minimum balance requirements, no monthly fees, discounts on certain loans, discounts on storage boxes, bonus CD rates and much more.  Regular group onsite “needs evaluations” will continue to occur.

If you would like to learn more about this exciting new program or bring it to your workplace, give us a call at 859-253-2605.

FDIC INSURANCE COVERAGE

   Extension of Temporary Increase Amount

The FDIC-short for the Federal Deposit Insurance Corporation-is an independent agency of the United States government.  The FDIC protects you against the loss of your deposits if an FDIC insured bank or savings association fails.  FDIC insurance is backed by the full faith and credit of the United States government.

On October 3, 2008, Congress temporarily increased the basic insurance amount from $100,000 to $250,000 per depositor per insured bank. This increase has been extended through December 31, 2013.

Deposit accounts maintained in different legal ownership categories (such as individual or joint accounts) are insured separately.  You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories.

For Example:

Husband & Wife qualify for $2,000,000.  Here's how:

Individual Accounts:

  Husband  ($250,000)

  Wife  ($250,000)

Joint Tenancy:*

   Husband & Wife  ($500,000)

Revocable Trust Accounts:

   Husband as trustee for wife  ($250,000)

   Wife as trustee for husband  ($250,000)

Certain Retirement Accounts:

  Husband  ($250,000)

  Wife  ( $250,000)

Total Coverage  $2,000,000

*Joint account with right of survivorship.

If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank, you do not need to worry about your insurance coverage - your deposits are fully insured.

For more information on the FDIC, go to www.fdic.gov.

Telephone Banking Improved!

Telephone Banking at First Federal Bank is now even better. You can enjoy an expanded menu of inquires and transaction options available 24 hours a day, 7 days a week, 365 days a year. Telephone Banking, formally called Direct Teller, gives you the same convenient access to your account information as before along with these improved features:

• Unlimited history of Paid Check items

• Inquire about a specific check amount paid

• Unlimited history of Deposit items

• Inquire about a specific deposit amount

• Consumer loan payoff inquiries

• Make loan payments from deposit accounts

• Place check re-orders

• Place check stop payments

If you're not already using Telephone Banking, call First Federal Bank today at (859) 253-2605 to receive your personal identification number.

Express Checks…Personal Checks in a Hurry!

First Federal Bank's Express Checks can save you both time and money. Express Checks are printed in-house so they're available to you the next business day for pick up. (Allow 3 business days if your order is mailed.) With Express Checks, you're able to save 50% or more on your personal checks compared to national check vendors. And…it promotes security and privacy. Customer information never leaves First Federal for 3rd party handling. When we hand deliver a check order to you, we lower the risk of stolen checks, thus reducing your risk of check fraud and identity theft. Plus we offer a 100% money-back satisfaction guarantee!

Call (859) 253-2605 today for more information on First Federal Bank's Express Checks.

The "Float" will Disappear with Check 21.

When Check 21 went into affect on October 28, 2004, financial institutions began converting checks to electronic images permitting quicker processing of checks. More rapid processing of checks will mean less float…the time between when a check is written and when it clears. You will want to make sure that adequate funds are in your account when checks are written to avoid potential problems. Click here for more information on Check 21.

Checks are Changing with Check 21.

The Check Clearing for the 21st Century Act, "Check 21", went into affect on October 28. The goal of this law is to improve the overall efficiency of the nation's payment system.

Today, most checks are physically transported before they can be cleared. Check 21 provides a new option: legal acceptance of paper reproductions of original checks. This reproduction is called a "substitute" check and is produced from a digital image of the original check. The ability to convert checks to electronic images will permit quicker processing of checks.

How Will Check 21 Affect You?

The "Float" Will Disappear...
More rapid processing of checks will mean less float…the time between when a check is written and when it clears. You will want to make sure that adequate funds are in your account when checks are written to avoid potential problems.

Substitute Checks...
By October 28, 2004, every bank will be required to accept substitute checks, just as they currently accept your original check. If you receive your cancelled checks or electronic images of your cancelled checks with your account statement, you will begin seeing substitute checks after that date. A substitute check is the legal equivalent of the original check and will include all the information contained on the original.

Combat Fraud...
Check 21 includes several safeguards for check writing consumers. Check 21 helps speed check clearing, so check fraud can be discovered faster. Faster fraud detection means faster resolution for customers. Another safeguard: A bank that creates a substitute check must warrant that it is accurate. The bank also has to make sure that the substitute check is produced in accordance with industry standards for quality.

The financial industry is working hard to streamline the check clearing process and make use of new electronic technology. Check 21 allows paper to work in the electronic world allowing you to continue using the familiar paper check to make payments.

Customer Alert-Fraudulent E-mails.

First Federal Bank does not send out e-mails requesting personal information. If you receive an e-mail requesting such information, do not respond. If you have already responded, notify us immediately.

If you need to contact us through the Internet, you may do so through our secure website.

For additional information on ways to protect your First Federal Bank accounts and personal information, call the FTC toll-free at 1-877-IDTHEFT (438-4338) or you can go to the Federal Trade Commission's (FTC) consumer website at www.consumer.gov/idtheft.

Save for your child's education with our Coverdell Education Savings Account.

Our Coverdell Education Savings Account allows you to save for your child's education. The plan offers tax-deferred earnings and distributions may be free of federal income tax and penalties when used to pay for qualified education expenses.*

First Federal Bank offers you several account options to choose from.

• Certificate of Deposit. This account has a fixed rate for the term. You can choose a term from 1-5 years. There is a minimum requirement of $100 to open the account and a $2,000 annual contribution limit for eligible individuals.

• Add-On Certificate of Deposit. This one-year certificate allows you to make additional deposits to your account without extending the maturity date. There is a minimum requirement of $100 to open the account and a $2,000 annual contribution limit for eligible individuals.

• Money Market Deposit Account. This variable interest rate account allows you to make multiple deposits at any time. The minimum requirement to open it is $50 with a $2,000 annual contribution limit for eligible individuals.

Planning for your child's education is an important financial decision. Invest in their future with First Federal Bank's Coverdell Education Savings Account.

*Consult your tax advisor