LSB & Village Merging
LSB Financial, the mutual holding company parent of Laconia Savings Bank, and Village Financial Corp., the parent of Village Bank & Trust in nearby Gilford have signed a merger agreement. The Boards of both companies have already approved the $18.3 billion transaction, and hope to have regulatory approval by the end of September. Village Bank has $81 million in assets and works out of a single office. Upon completion, Laconia Savings Bank would have assets of $835 million and 18 offices throughout the state.
ATM Skimming
Remember the good old days when "skimming" meant riding a snow machine over open water? Now, bank fraud is the first thing coming to mind. The NHBA received many calls from reporters who want to know what banks are doing to protect customers from thieves that attach hardware to ATMs to steal consumer account and PIN numbers. There isn’t a strong answer to give them. We suggest that you inspect the front of as many of your ATMs as possible daily, looking for skimming devices and "spy" cameras. It's in your bank's interest on a couple of levels. First, when a customer’s account is debited fraudulently, the bank (mostly) has to replace the funds and take the loss. Second, the "reputation risk" from having one of your machines skimmed is huge.
FHLBB Asks Chandler to Leave?
A Union Leader political gossip column this week said Former House Speaker Gene Chandler, has been asked to resign from his seat on the Federal Home Loan Bank of Boston Board of Directors. Rep. Chandler recently pled guilty to misdemeanor charges of failing to file reports disclosing money he got from social events held to raise funds for his personal use. Holding the fundraisers was entirely legal, but Chandler admits he failed to file disclosure reports required by state law. The FHLBB will not comment on the matter. We’ll speculate that they wish things could work out otherwise but, Mr. Chandler’s legal woes could slow the Boston Home Loan Bank’s response to requirements of today’s strict corporate governance environment.
Dover Apartment Housed Meth Lab
A meth lab in was found in Dover this week. Meth (methamphetamine) is a powerful drug cooked from cheap, easily attainable materials (drain cleaner, Sudafed and fertilizer). What’s this got to do with banking? Your mortgage collateral may be at risk. Meth labs in the U.S. are found primarily in private residences. The process of cooking meth releases highly toxic, explosive fumes into the air. That’s why police officers entering the Dover apartment this week wore protective suits, and why homes or apartments where meth labs are found are deemed hazardous waste sites requiring clean-up before they can be re-inhabited. The meth problem has been greater in other areas of the country, where bankers know it’s common for borrowers to walk away from meth lab-tainted properties and leave their lender with the problem.
Meth labs have been a big problem in Minnesota. These are the steps their health and human services agency say might be needed to clean one up.
"Sometimes scrubbing and painting is all that is necessary to restore a former meth lab to a safe living environment. Sometimes, contamination is so broad and extensive that the inside of the building needs complete renovation. Across the U.S., the response to cleaning up former meth lab properties ranges from minor cleaning to complete demolition of buildings. Some meth labs require soil and/or groundwater cleanup, depending on the extent of how and where chemical wastes were managed."
New Hampshire Bankers Association 122 North Main Street P.O. Box 2586 Concord, New Hampshire 03302-2586 For more information on above items: call (603) 224-5373, fax (603) 224-3381 or E-Mail jlittle@nhbankers.com. |
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