Keeping Our Word. Conversations Annual Report

Transcription

1 Keeping Our Word Conversations 2012 Annual Report

2 We are a relationship bank. And every good relationship begins with a conversation. That s our philosophy at Mutual of Omaha Bank. We strive to build strong relationships rooted in good communication. Above all else, we keep our word. This report highlights conversations with some of our valued clients. As you read their stories, you ll see the impact of a bank that listens. And delivers. Mutual of Omaha Bank has been a very important ally. They stood strong when other people melted. Arthur Hollingsworth Lone Star Investment Advisors They really listened to what we were trying to do and were very responsive to all of our needs. Emily Nielsen Gallup We have been so pleased to partner with Mutual of Omaha Bank they ve been wonderful to work with. Lisa Lefkow Habitat for Humanity They saw my plan, understood my vision and have become a true partner. Kevin Jones Papa John s Salads & Produce We re providing jobs and economic stimulation thanks to Mutual of Omaha Bank. Arthur Hollingsworth Lone Star Investment Advisors Contents 2 A Conversation with the Chairman 4 Habitat for Humanity 6 Lone Star Investment Advisors 8 Gallup 10 Papa John s Salads & Produce 12 Serving Clients Nationwide 13 Community Partnerships 14 Financial Performance 15 Experienced Leadership 16 Products and Services

3 2 A Conversation with the Chairman and CEO Every day, we work together to build value-added relationships with our clients. How would you characterize the bank s performance in 2012? Our results were strong and continued to prove our strategy. Deposits grew by 8 percent, while our loan portfolio grew by more than 14 percent. Assets and capital both increased as we continued on a path of safe, sound and profitable growth. What were some areas of emphasis throughout the past year? Our commercial bankers partnered with businesses to finance expansion, spurring economic growth and job creation in many of our markets. We closed nearly $1.5 billion in new mortgages in 2012, including loans to many first-time homebuyers. We also focused on enhancing our client experience by streamlining processes, investing in new technology and strengthening our service model. The bank celebrated its fifth anniversary in Were the first five years what you expected? It s fair to say our first five years exceeded even my highest expectations. In 2007, we set out to build a high-performing, best-in-class bank. Five years later, I m proud to say we re achieving that goal. We ve literally grown from a start-up into a $6 billion bank, reaching clients across the country with comprehensive banking solutions. To what do you attribute your extraordinary growth? First and foremost, we ve had a clear purpose from day one. We are a relationship bank. Every day, we work together to build value-added relationships with our clients. Second, we ve assembled a highly talented and experienced team. Third, we ve remained financially strong and secure, offering our clients peace of mind during a challenging economic climate. Finally, our brand and core values which come, in part, from our highly-rated parent company, Mutual of Omaha Insurance Company set us apart from our competition. What s in store for 2013? We will continue to enhance our product portfolio and service model. We will expand delivery channels and use emerging technologies to forge new client relationships. We will focus on our core competencies community banking, mortgage lending and community association banking. We will find new ways to leverage our financial strength and strong brand, which will include a celebration of the 50th anniversary of Mutual of Omaha s Wild Kingdom. Most of all, we will focus on our purpose to build strong relationships with our clients, helping them achieve their financial goals. Jeff Schmid Chairman and Chief Executive Officer 3

4 Partnering to Build Hope Habitat for Humanity of Collier County Naples, Florida Without partnerships like the one we have with Mutual of Omaha Bank, we wouldn t be able to continue our work into the future. Through a collaborative partnership, Habitat for Humanity of Collier County and Mutual of Omaha Bank ensured funds were available to purchase new land and provide future homes. What is Habitat for Humanity s mission? We help families build and purchase a home of their own. Many families come to us from untenable living conditions, struggling with health issues and educational deficits. Our mission is to partner with these families and the community bringing together business partners, volunteers and donors to make sure there is affordable housing available to everyone. How has Mutual of Omaha Bank played a role? Every dollar invested in Habitat for Humanity goes into the purchase of land and the building of homes, which are sold at cost to our partner families. We offer each family an interest-free mortgage to help make the home affordable. Mutual of Omaha Bank purchased a portfolio of our mortgages and liquidated that asset for us. We used those funds to purchase land that will provide as many as 120 families an opportunity to build and purchase their own homes in the future. What long-term impact will this partnership have? We ve been so pleased to be a part of this wonderful partnership with the team at Mutual of Omaha Bank. Their investment in the community through Habitat for Humanity will provide economic stability, will help stabilize the workforce and will provide For more of the conversation, watch the video at mutualofomahabank.com/habitat opportunities for families that would have no other access to affordable homeownership. We are deeply grateful to them for that. 4 Lisa Lefkow Executive VP of Development Habitat for Humanity of Collier County 5

5 Investing in Job Creation Lone Star Investment Advisors Dallas, Texas Mutual of Omaha Bank has provided the fuel to help us finance expansion and create jobs. In the midst of an economic downturn, they stood strong and were a proud partner for us. Lone Star Investment Advisors isn t your typical private equity firm. Their innovative partnership with Mutual of Omaha Bank is spurring economic growth in low-income communities across Texas. What makes Lone Star unique in the private equity industry? We have a unique dual mission: to invigorate low-income communities and produce attractive returns for our investors. We accomplish this by purchasing and growing companies already located in low-income areas, as well as buying companies and relocating them to low-income communities. Today, we have 18 portfolio companies that employ 5,100 people, all in low-income areas of Texas. What role does Mutual of Omaha Bank play? Our relationship with Mutual of Omaha Bank happens at three levels. First, they re an investor in two of our funds. Second, they lend money to two of our funds. And third, Mutual of Omaha Bank provides financing for one of the companies in our portfolio Concrete Related Products, a steel rebar fabricator in Cleburne, Texas. How has this partnership resulted in job creation? In 2010, our former bank pulled their financing from Concrete Related Products. Even though it was the middle of the economic downturn, Mutual of Omaha Bank stepped up and said, We trust Lone Star, we trust Concrete Related Products and we re going to stand behind you. The best part is, they didn t just make a loan and walk away. For more of the conversation, watch the video at mutualofomahabank.com/lonestar It s been a constant relationship that s really helping the Cleburne community. Cleburne has been economically challenged and now we re providing jobs and economic stimulation, thanks to Mutual of Omaha Bank. 6 Arthur Hollingsworth Founder & Managing Partner Lone Star Investment Advisors 7

6 Emily Nielsen Corporate Treasurer Gallup Empowering Employee Ownership Gallup Omaha, Nebraska Mutual of Omaha Bank has superior customer service. They are very easy to work with and the financial intelligence of their bankers is far above any in the area. Gallup is owned by the people most responsible for its global success its employees. Mutual of Omaha Bank is proud to partner with those employees as their financing partner. Most people know Gallup for polling is that your primary business? Our polling is what everyone sees on a day-to-day basis. We poll about 140 countries, representing 98 percent of the world s population. But the biggest part of our business is strategic consulting. We take the information we learn from our research and we work with Fortune 500 companies to teach them about what makes their employees engaged, to help strengthen their workplace and improve results. What makes Gallup so unique? We have a strong team-oriented, high-achieving, strengths-based culture, and it really comes across when we work with our customers. That s a big part of the reason we are employee-owned. We want our associates to benefit from Gallup s success because they are the ones who have built this place and we want them to reap the benefits of their hard work. What role has Mutual of Omaha Bank played? We decided to partner with Mutual of Omaha Bank to develop a unique program where our associates could borrow money to finance their purchase of Gallup stock. They worked with us for 18 months to develop the program. They really listened to what we were trying to do and were very responsive to all of our needs. 8 For more of the conversation, watch the video at mutualofomahabank.com/gallup 9

7 Financing Expansion Papa John s Salads & Produce Phoenix, Arizona For more of the conversation, watch the video at mutualofomahabank.com/papajohns Mutual of Omaha Bank was there when I needed them. And I m not sure any other bank would have been. They ve been a true partner. Kevin Jones has built his career in his words by teaming with the right people. So when Papa John s Salads & Produce needed a strong financial partner for a large expansion, he called Mutual of Omaha Bank. What niche of the food industry does Papa John s Salads & Produce serve? We re a fresh perishable company, so we have no frozen foods and we make to order. Our customers are primarily retail grocery chains and convenience stores along the West Coast. We make hundreds of food items, including sandwiches, wraps, fresh fruits, vegetables, salads and dips just to name a few. We also make home meal replacement items, which are complete meals that can be ready in minutes. What led to your need for expansion? Our chefs are always developing new products in response to customer needs. But our old facility could only accommodate so much growth. So in 2010, we expanded into a much bigger facility 203,000 square feet in order to continue growing and meeting the demand for new products. Why did you partner with Mutual of Omaha Bank? When I started designing the new facility, I knew it was going to take a strong financial partner to get the job completed. I interviewed many banks, but the people at Mutual of Omaha Bank stood out. They saw my plan, understood my vision and have become a true partner. As a result, I rely on Mutual of Omaha Bank as a one-stop shop for all my business and personal banking needs. Kevin Jones President & Owner Papa John s Salads & Produce 10 11

8 Serving Clients Nationwide Through a Network of Locations and Representatives Community Banking National Banking Individuals, families and businesses alike count on Mutual of Omaha Bank as their trusted financial partner. We serve these valued clients through two primary channels: community banking and national banking. Community Banking Our geographic footprint includes 49 full-service community bank locations and loan production offices in the following states: Arizona, California, Colorado, Florida, Hawaii, Iowa, Missouri, Nebraska, Nevada and Texas. These locations are staffed by experienced local bankers committed to building long-term relationships and delivering comprehensive banking solutions. National Banking Through a national network of representatives, we are proud to serve homeowners, business owners and property management companies in all 50 states. Our national product portfolio includes: Mortgage Lending Community Association Banking Treasury Management Services Internet Banking Merchant Services Credit Cards Community Partnerships Lending Our Time, Talent and Resources Left to Right: Habitat for Humanity Home Build Shelter Meal Preparation Houston Food Bank Volunteers Susan G. Komen Race for the Cure Investing in our communities was a key priority for Mutual of Omaha Bank in Our employees volunteered their time and talents for a wide range of nonprofit organizations from coast to coast. Whether building a home, serving meals at a local shelter, raising money for cancer research, offering financial mentoring or conducting holiday toy drives, we were committed to lending a helping hand throughout the year. Our support also included financial giving to our community partners. Our dollars were invested in the critical work that strengthens our communities, making them vibrant places to live and work. For a complete list of locations and representatives, visit mutualofomahabank.com 12 13

9 Financial Performance Statement of Condition (in thousands) Experienced Leadership assets Cash & Due from Banks 123, ,817 Investment Securities 1,068, ,994 Total Loans Receivable 4,018,488 4,607,126 Goodwill / Intangibles 199, ,383 Other Assets 147, ,498 Total Assets $5,556,468 $5,922,818 loans liabilities Deposits: DDA 615, ,426 NOW 691, ,504 Money Market 2,095,718 2,218,621 Savings 54,849 60,445 Time Accounts 1,107, ,139 Total Deposits 4,565,368 4,928,135 Borrowings & Other Liabilities 362, ,049 Total Liabilities 4,927,708 5,240,184 Capital 628, ,634 Total Liabilities & Capital $5,556,468 $5,922,818 deposits Board of Directors Jeffrey Schmid Chairman and Chief Executive Officer Mutual of Omaha Bank Frank Hayes Owner and President Hayes & Associates, LLC Edward Keller Former Chairman and Chief Executive Officer JP Morgan Chase Oklahoma Terry Kroeger President and Chief Executive Officer Omaha World-Herald Company George Little Chairman and Chief Executive Officer HDR, Inc. John Nahas President Corporate Management Consulting Executive Management Committee Jeffrey Schmid Chairman and Chief Executive Officer Marjorie Heller Chief Financial Officer Kevin Hale Chief Lending Officer Dwayne Sieck Chief Risk Officer Barry Major Executive Vice President Mortgage Banking Matthew Minchow Executive Vice President National Banking M. Lynn Crane Executive Vice President Bank Operations and Services Enterprise Leaders Robert Blakemore Director Wealth Management Group John Cox Chief Credit Officer Alan DeTata Managing Director Association Banking and CondoCerts Michael Fosdick Managing Director Mortgage Sales Thomas Fridrich Chief Compliance Officer Deborah Pearson Senior Vice President Marketing Sandra Wehrman Director Bank Customer Support State Presidents John Clark State President, Florida Scott Emmer State President, Nevada Kevin Halloran State President, Arizona Michael Homa State President, Nebraska John Krusoe State President, Colorado Greg Peterson State President, California Robert Strong State President, Texas Shared Services Michael Huss Corporate Secretary and General Counsel 2010 $3,163, $4,018, $4,607, $3,953, $4,565, $4,928,135 Financial management reports are prepared in advance of regulatory financial statements and may not include minor adjustments and reclassifications appearing in those statements. Such differences are immaterial where they exist and this report adequately reflects the current financial position of the bank Wendy Wilson Enterprise Director Consumer Banking Michael Lechtenberger Information Services Roseann Neumeyer Human Resources

10 Begin Your Own Conversation Business Banking Grow your business with customized solutions delivered by a team of experienced business experts. Business Deposit Accounts Commercial Lending Credit and Debit Cards Energy Lending Merchant Services Mutual Benefit Banking for Employees Small Business Lending Treasury Management Services Personal Banking Manage your personal finances with a full menu of banking solutions. Certificates of Deposit (CDs) Checking Credit and Debit Cards Home Equity Loans and Lines of Credit Personal Loans Savings and Money Markets Mortgage Lending Finance your home with a loan that best fits your needs from a strong lending partner. Bridge Loans Construction Loans Conventional Loans FHA and VA Loans Home Affordable Refinance Program (HARP) Jumbo Mortgages Refinancing Second Mortgages Wealth Management Build and protect your wealth with tailored solutions and a dedicated advisor. Brokerage and Insurance Services Investment Management Private Banking Trust and Estate Services Mutual of Omaha Bank 3333 Farnam Street Omaha, Nebraska Community Association Banking Streamline your community association finances with the leader in homeowner association banking. Community Association Deposit Accounts Community Association Loans High-speed Payment Processing Internet Cash Management For a complete list of products and services, visit mutualofomahabank.com 16 17

11 MB232_0213 Member FDIC Equal Housing Lender