Are Your Customers
Financially Ready For
Happy Holidays?
by Paul Weston — CEO, TCM Bank, N.A.
Many customers feel the economy is looking a little
brighter these days. Tey’re ready to shop and travel more
actively over the holidays, which is good news for us all.
You might consider giving them an early holiday gift: a
tip that they need to be sure their credit card line is robust
enough to support their plans. Many people—I’d even say
“most”—don’t realize that the Dodd-Frank Act prevents
credit card companies from automatically granting a
credit line increase. Cardholders must now request one.
Introducing the topic to a customer
In community bank lobbies during the next few weeks,
the friendly greeting you’re most likely to hear is “Hi!
Getting ready for the holidays?”
If your branches accept credit card payments, it’s easy to ask whether the customer would like us to see if their credit
limit should be increased. Tis is also a natural question when processing a balance transfer request.
In fact, a teller or customer service representative can add value to just about any transaction by saying, “We’re
asking customers who carry our credit card if they would like a free review of their credit limit before the holidays.
Would this interest you?”
Why might a customer want a credit line increase?
A higher limit gives customers more nnancial nexibility, while potentially saving them money and improving their
credit standing. For someone with a substantial balance who plans major purchases or family travel during the
December 2012
voi 1 issui ;
holidays, a credit line increase can pay on in
several ways:
· To provide an emergency hnancial reserve. For
example, if winter weather strands them far from
home, the best solution is often to make alternative
arrangements on the spot with a credit card.
· To avoid an over-the-limit fee and a penalty rate
Cardholders with high balances should consider
giving themselves plenty of breathing room.
Otherwise, new spending or nnance charges may
accidentally bump their balance over the limit.
· To potentially improve their credit score.
Tis third point touches on another little-known
nnancial fact: a consumer’s credit utilization ratio is one
of the most important elements used in determining
their credit score. (Te others are payment history, age
of credit, mix of credit, and number of credit inquiries.)
Your nnancial institution probably uses credit scores to
help decide who will receive the best rates on mortgages,
auto loans, and other types of borrowing.
How credit limits can affect credit scores
Te credit utilization ratio is the ratio of credit balances to credit limits. For example, if the current balance is
$4,500 on a card with a credit limit of $5,000, the credit utilization ratio is 90%. “When a high percentage of a
person’s available credit has been used, this can indicate that a person is overextended, and is more likely to make late
or missed payments,” notes Fair Isaac Corp., issuer of the commonly used FICO credit scores.*
Consumers can improve their credit score by using a smaller portion of the credit available to them, either by
reducing the amount they owe or raising their accounts’ credit limits. Tis latter strategy is a way we may be able to
help cardholders who handle credit responsibly.
Consider suggesting a credit limit review now to help make a dinerence in your customers’ readiness for the
holidays. Even more happily, it may benent their nnancial well-being as we move forward into 2013.
How TCM Bank determines
o cus|omer´s credi| line
Whether the customer is requesting a new
card or a credit line increase, we must
consider their ability to repay. Specincally, the
law says that we must be satisned with their
“independent ability to make the required
minimum periodic payments under the terms
of an account based on [their] independent
income or assets and current obligations.”
In order to determine a customer’s ability to
repay, we compare their debt to their income.
“Debt” is considered to be their obligations
reported to the credit bureau, and “income”
as the income given in the application. Te
actual amount of the credit line we grant
will depend on these factors as well as the
customer’s credit record.
(Continued from page 1)
1ulie´s 1ournol
Credit Cards—A Renewed Focus
by Julie Hanson — VP, Card & Payment Products
Whether to retain customers, oner a competitive product suite, or as a way
to make up for lost revenue, banks are getting back into the credit card arena
and placing a renewed focus on their credit card product. Community Banks
strive and succeed at onering the products and services their customers want
and need. Although many exited the card business years ago, bankers are
realizing that due to lost debit and fee revenue and, a continued demand
for cards— especially with the proliferation of online shopping and mobile
banking – they can no longer let others serve their best customers.
Banks are now analyzing their customer segments and targeting the needs of various groups. Two important
segments include the amuent and the small business customer. Amuent customers (those with a household annual
income of ≥ $100K) have been driving the credit rebound. Visa’s research indicates that approximately 41% of
amuent spending is on a credit card while 9% resides on a debit card. Banks that are onering only a debit program
today are not serving the needs of their most prontable customers. Banks are adding a credit card program, or for
those already issuing, updating their onering and marketing their card to these very important customers.
A second area of renewed focus is on the small businesses customer. Businesses look to their banker as a consultant,
requesting help with their lending needs, but also in managing their cash now. Bankers are realizing the existing
opportunity within their business customer base to replace a small line of credit with a business credit card. While
providing a convenient, cash management tool for the business, the bank capitalizes on the increased income earned
through credit card interchange. If you’re not already onering small business credit cards, contact your TCM Client
Services Representative and add it to your current agent program.
Banks are recognizing that a successful credit card program will generate revenue, engage and retain loyal customers,
enhance a product suite, create a competitive position in the marketplace, and provide constant marketing of their
bank’s brand.
Nessie´s Nook
Getting Involved at the Grassroots
by Agnes Nasso — Manager, Marketing and Communications
Tis is the time of year when many community banks collect canned food for
the needy. So do lots of big banks, of course. Maybe you donate to the high
school yearbook, the hospital’s fundraising golf tournament, or Fourth of July
nreworks. But so does the big bank down the street.
What can you do to reach your customers and prospects on
a more personal, grassroots level?
What brought this to mind was recent media coverage of Hurricane Sandy’s
devastating assault on New Jersey and New York with a 13-foot storm surge
and 100-mph winds, leaving hundreds of people homeless and thousands
without power. Banks of all sizes responded by relaxing loan terms for
borrowers. But at least one community bank rallied with ingenuity. Deprived
of electricity, Two River Community Bank of Tinton Falls, N.J., served its
customers in natural sunlight, using manual ledger entries and hand-written
checks to record withdrawals. “Tat is one of the benents of community banking,” said Robert C. Werner, chief
operating omcer of Two River. “We do know all our customers and you can provide that type of service.”*
Tat’s the true spirit of community – but there’s no need to wait for a calamity to make it visible. By becoming an
active member of your community, your bank can be a more important part of it. You’ll increase awareness of (and
preference for) your brand. To young people and newcomers, there may be no clear dinerence between you and a
megabank right now.
Here are some ideas you might consider, if you haven’t already:
· Dehne your community. It’s not just everybody within so many miles of your branches; it’s people with shared
values. What’s important to them? Tis will help you determine what kinds of community involvement may
have the most impact.
· Encourage employees to volunteer in the community, and recognize their eßorts publicly.
· Publicize bank-sponsored community events on your website and in social media.
· Enhance brand awareness by providing shirts with bank logos for employees during an event.
· Look for programs that can help you beneht your community. For example, you might tie in with TCM
Bank’s 2013 Back to School Promotion. TCM will donate school supplies to the bank that wins the promotion,
based on the number of approved credit card applications submitted. When was the last time your bank did
something distinctive for your community? In 2013, try using your grassroots advantage to make your brand
better known – and more preferred.
*“Banks in superstorm disaster areas using ledgers again,” New York Daily Sun, 11/6/12
Evolve Bank & Trust Community Involvement
by Scott Staford — Evolve Bank & Trust, Memphis, TN
At Evolve Bank & Trust, our mission is to make
every customer’s experience positive, memorable and
productive—from the moment they walk into our
doors, to the second they log onto our website. Tat’s
the way we’ve worked for 85 years, and as we grow
into this next century, the customer-nrst pledge will
continue to be our foremost promise.
Evolve began in June 1925 as First State Bank and
quickly became the primary nnancial institution in
eastern Cross County, Ark., providing essential capital
for agricultural growth and development. In less than
30 years, the bank’s resources increased to more than
40 times what they were when it began—proving that exceptional personal service and community involvement are
indeed key for real, long-term progress.
Today, community involvement continues to be our priority. In addition to a full-range of personal and banking
solutions, as well as competitive loan products onered through a network of production omces throughout the U.S.,
Evolve supports many nonpront causes with dynamic, community-focused solutions of their own.
We’ve even gone global. Evolve recently sponsored Haiti 15, a company-wide initiative to provide humanitarian
support, including home construction, soccer camp activities and food donations to families living in a camp in
Tomassin, Haiti.
New to the Neighborhood
Alliance Bank
Citizens Federal Credit Union
Clarke County State Bank
Costal Bank & Trust
Community State Bank of Southwestern Indiana
Cumberland Security Bank
First Bank of Richmond
First Community Bank
First Federal S&L Assn of Mattoon
First Southern Bank
Flatirons Bank
Investar Bank
Landmark Community Bank
Pioneer Bank
State Bank of Bottineau
Te Peninsula Bank of Ishpeming
Te State Bank of Faribault
Te Washington Savings Bank
West Pointe Bank
5 Year Anniversary
BAC Florida Bank
Beartooth Bank
Colonial Bank
Farmers Bank
Firstar Bank
First State Bank
Old Town Bank
United Republic Bank
United Southwest Bank
Warren-Boynton State Bank
Waterford Bank
10 Year Anniversary
Bank of the Orient
Casey State Bank
First National Bank of Bangor
First Security Bank
Manufacturers Bank & Trust Company
Minnesota National Bank
Pittsneld Cooperative Bank
Premier Bank Inc
Provincial Bank
United Savings Bank
Agent Anniversaries
Ge||ing To Know The 5|oll
Welcome New TCM Board Members
Nelony Knillen — Chairman, Southern Commercial Bank
I'm the chairman of Southern Commercial Bank, a $525 million bank with 10 branches
in St. Louis City and Jenerson County, Missouri. And I am also chairman of Bank of
Hillsboro, a $60 million bank with a single location in Hillsboro, Missouri (a town
about 40 miles south of St. Louis). I am on the CFPB Community Bank Advisory
Council and also on the Regulatory Review committee of Te ICBA and am past
chairman of ICBA Reinsurance. Tis year I am honored to be the Chairman of the
Missouri Independent Bankers Association. Before banking, I was the law clerk for a
federal bankruptcy judge in St. Louis for 11 years.
William C. Rosacker — President, United Bankers’ Bank
William C. Rosacker is President and CEO of United Bankers’ Bank, Bloomington,
Minn., Rosacker has been chairman of the ICBA Political Action Committee as well as
a member of several ICBA committees including Bank Services, Bank Stock Financing,
By-laws Review, Long Term Planning and Payments and Technology. He is a member
of ICBA Bancard’s Board of Directors and was a member of the Board of Directors of
ICBA and ICBA Bancard. Rosacker is a member of the Bankers’ Bank Council and
the Independent Community Bankers of Minnesota. Currently, he is on the board of
directors of the bank his wife co-owns, Te First National Bank of Bagley in Bagley,
Minn. Prior to joining UBB, Rosacker held management positions at F&M Marquette National Bank where he was
a member of the senior management committee and led the correspondent banking and the investment divisions.
On top of Rosacker’s 37 years in banking, he has completed advanced banking education through the Minnesota
School of Banking, Midwest Institute of Banking, and the Federal Reserve. Rosacker was a member of the faculty
and advisory panel of the Minnesota Commercial Lending School.
Noah W. Wilcox — President/CEO, Vice Chairman, Grand Rapids State Bank
I am a fourth generation bank owner that is nercely passionate about the preservation
of independent banking. We have been ICBA members for more than 70 years. I have
two young daughters and a wife that I love to spend time with when I am not trying to
save community banking and I am an avid ny nsherman. Having the opportunity to
give back to an industry that has been so good to my family and my community for the
past 98 years has been a career highlight for me.
Up to Date News
TCN´s in·house Cus|omer Con|oc| Cen|er (C³) keoches o Niles|one
Tis September, TCM celebrated C³’s nrst year anniversary and we’d like to thank you for your support. Te Center
has been a huge hit scoring high marks when it comes to the quality of customer service. On a scale of one to ten,
cardholders rated the associates 9.3 CSR rating on level of knowledge, 9.4 CSR rating on professional courtesy
and 9.4 CSR rating on information accuracy
We trust that you are pleased with the high level of service our mutual customers. Please mention C³ when speaking
to customers about the Visa® credit card your bank oners.
TCN Con Underwri|e Non·5ßA Eligible ßusinesses
Great news! TCM is now onering a Company Expense Charge Card for large corporations, non-pront organizations
and municipalities. Tis pay-in-full option is now available in addition to the small business credit card. Te
features include no Annual Fee, higher spending limits, Travel Accident Insurance and much more. If your
customer’s business asset size is greater then $7 million and they employ more than nfty people, this card is for them.
For details please contact your Client Services Representative.
Online Fillable POD Applications
Tis is a reminder that the applications located on your Print-On-Demand (POD) page can now be completed
electronically or by hand. Once the application is completed, it must be printed, signed and faxed or mailed to
TCM. We hope this is a more convenient way for you and your customers to nll out the application.
Compliance Package Update
Te consumer credit card compliance package residing on the TCM website has recently been updated. Te
package includes sample disclosure documents associated with the program. Please make sure to check the website
periodically for up to date documentation: http://www.icbabancard.com/TCMBANK/access. You’ll be required to
login. Tis section of our website is a great source of information anytime examiners have a question about the credit
card service you provide.
Your Visa® Platinum Consumer
and Small Business Cards
Just a reminder that earlier this year, TCM
updated the look of the consumer credit card.
Here’s what the consumer and small business
credit cards look like.
Visa Platinum Consumer Credit Card Visa Platinum Small Business


Karen Stephenson
Marlene Wagner
800-242-4770 ext. 4319
Miriam Funn
800-242-4770 ext. 4373
Myra Kilpatrick
Lisa Walker
ICBA Bancard & TCM Bank Client Relations Staff Regional Assignments
For Cardholders Only
C³ In-House Customer Service:
Monday - Friday 8 a.m. - 8 p.m. ET
Toll Free: (800) 883-0131
After Hours: (800) 883-0131
Outside the U.S.: (727) 570-4881 (for lost/stolen cards)
Online Account Access: www.MyCardStatement.com
Payment Address: Visa P.O. Box 30131, Tampa, FL 33630
Contact Us
C³ Team Members
For Agent Bank Use Only
Monday - Friday 8 a.m. - 8 p.m. ET
Help Line: (888) 582-3375
· Option 1: Client Services
· Option 2: Application Status/Request Guarantee
· Option 3: Bank Assistance/Payment Arrangements
· Option 4: Business Card Management (BCM) Help Desk
Do you have any questions, comments, or suggestions for our
newsletter? Do you want to be featured in our Agent Spotlight?
We’d like to hear from you. Call the agent helpline above and
speak with your Client Services Representative or email us at
TCM Bank’s in-house Customer Contact Center also known as C³, omcially opened for business September 16,
2011. Te center is fully staned and is dedicated to giving customers personal and professional attention, the kind
they receive when they come into your branches.