Sponsored by Bank of American Fork, the Pony Express Century is a beautiful bike ride that celebrates Eagle Mountain’s Pony Express Days. The ride follows the Pony Express Trail beginning in Saratoga Springs and continuing North to Rush Valley. Ride options include a 30 mile, Metric Century, 100 mile, and 100+ mile ride. Riders will be required to bring a non-perishable food donation to start. All food donations will be given to the Utah Food Bank.

$55 Late Registration after May 12

It’s not too late to register at www.epicbiking.com !

CEObuilder and Bank of American Fork invite you to join us on Wednesday, May 22, 2013 to hear a presentation by Val Oveson, CPA, CFF, CGMA and partner at Wisan, Smith, Racker & Prescott, LLP. He is also a former lieutenant governor and state auditor for the state of Utah. Oveson’s presentation will focus on tax reform, the fiscal crisis and what you can do about it.

With frustration in Washington, many are wondering how our elected leaders will deal with the gridlock and problems facing the nation. Oveson will talk about the problems with the U.S. tax code and what we can expect in tax reform this year. He will talk about his experiences in Washington, D.C. as the National Taxpayer Advocate of the IRS and his efforts to simplify the tax system.  He will also give his views on the looming debt crisis and the games that are played with the country’s financial statements. Lastly, Mr. Oveson will talk about our political system and how we can get involved and make a difference.  He may not be able to solve the problems but he will help us understand the system and suggest strategies to do something about it.

Following Oveson’s presentation, the group will participate in a forum to apply principles and ideas to their specific businesses.

This forum will be held at Bank of American Fork, Riverton Branch Conference Room, 2691 West 12600 South, from 8:30 a.m. to 4:30 p.m. on Wednesday, May 22. Please RSVP here or by contacting Heidi at Heidi.carmack@bankaf.com or 801-642-3139.

The content of this presentation should not be considered legal, accounting or tax advice from Bank of American Fork.

Bank of American Fork was established in 1913 as The People’s State Bank of American Fork. The first two decades after opening brought success for the bank and its reputation for being safe and sound was solidified. Challenges came in 1932, when the People’s State Bank of American Fork closed its doors to prevent a run on deposits. While a third of the nation’s banks did the same and never reopened, the People’s State Bank was open for business nine months later after tremendous sacrifice on the part of its management. The 1940s and ‘50s were better years for banking, and the People’s State Bank of American Fork thrived. In the 1960s the name was shortened to Bank of American Fork and proved itself a technological leader when it made a large investment in upgrading to advanced computerized systems. In the ‘80s and ‘90s, Bank of American Fork began to receive national recognition for being safe and strong. It was during this time that the bank began strategic expansion across Utah, finding communities where Bank of American Fork fit and filled needs. Today, we are proud to be a part of 13 communities, and Utah’s community bank leader.

Orem Branch October 4, 1993 In 1993, the bank’s third branch opened in a trailer, then in In 1997 it got its permanent home by University Mall, where tens of thousands of cars pass the blue glass building daily. When it opened as a loan office, Robert Chatfield and Dave Hatton worked tirelessly to grow, sometimes working more than 10 hours a day. They hired an additional loan officer, Lane Wilson. During this period the bank was responsible for financing many projects that developed both Provo and Orem, including apartment complexes near Brigham Young University and Utah Valley State College, strip malls, office parks, government buildings and hospital. The branch first opened in a trailer on the edge of its current lot on the corner of University Mall in Orem and now the blue glass building is a landmark part of Orem.

See the spotlights for American Fork, Alpine, Orem, Highland, Lehi, Pleasant Grove, Spanish Fork, Draper, Sandy, Murray, Riverton and Saratoga Springs! These are in order, so only the ones listed before this spotlight are active posts. If it’s listed after this branch, you’ll just have to wait to see the new spotlight each month! You can also read about the Layton branch we opened in 2012 and our mortgage office in St. George.

This year, to celebrate 100 years of serving Utah communities, Bank of American Fork will give a $100 gift card to every 100^th person to cross the finish line. You don’t have to finish first to be a woman of steel and we want to celebrate women who cross the finish line throughout the race. Awards will also be presented to overall finishers and top finishers in each age group. Every participant with receive a women-specific technical race shirt, commemorative finisher necklace and chocolate at the finish line.

The event honors women who have used fitness to overcome life-changing obstacles. It will also benefit Kids on the Move, a non-profit organization that provides services to families and children with special needs.

Bank of American Fork is partnering with race organizer TriUtah to produce the race. Athletes can visit here to register for one of the 1,000 triathlon or unlimited 5K spots. Registration is not available at Bank of American Fork branches or via mail. 

It’s not too late to sign up! Visit here to register.

“Graduation is an exciting time for students who are often anxious to gain financial independence,” said Terry Jorde, ICBA senior executive vice president and chief of staff.  “It’s important to remember that the financial decisions you make now will affect your future for years to come, so take a moment to outline your short- and long-term financial goals and come up with a monthly budget that will work for you.  Believe me, this is one simple exercise that will be well worth any recent grad’s time.  You’ll thank yourself a few months and a few years down the line.”

Jorde suggested that students who don’t already have their own individual bank accounts (not cosigned by mom and dad) open one immediately.  “Look to a community banker who can work with you one-on-one to make a financial plan that suits your individual needs,” said Jorde.  Visit your nearest Bank of American Fork branch or find a community bank near you by visiting www.banklocally.org or downloading the free ICBA locator app for your iPhone, Android or BlackBerry.

Other tips include:

• If you don’t have strong financial literacy skills, take some time to educate yourself on money matters, such as credit and ways to save for retirement. There is an abundance of resources available from programs such as FDIC Money Smart. 

• Understand credit, how to build it and what hurts it.

• Set up online banking to help you manage your finances from anywhere.

• Start saving for retirement now even if it does seem like a long way away. Many employers offer investment matching plans to help you get started.

• Set up an automatic savings account that pulls from your account every month as soon as you get your paycheck. Some employers also allow you to defer savings to another account. If you don’t see it, chances are you won’t miss it so much. Having a safety net in your savings account will help you stress less.

• Stay on top of any student loans, don’t miss deadlines and consolidate if appropriate. Some companies will help you pay off your student debt; make sure to ask about this when negotiating your new job.

• Review your banking, credit card and loan statements regularly so you can be aware of any errors.

• If you move, notify your bank, card and loan issuers immediately.

• If closing a bank account, confirm that the account and appropriate lines of credit have been closed by verifying with the bank.

• Take advantage of working with financial planners who can help you create your financial roadmap and a smart monthly budget for this stage in your life.

This stage of a grad’s life is all about empowerment—and financial matters are no different. We congratulate this year’s college grads and wish you a prosperous financial future.  We’re here to serve you in whatever way we can.

To learn more about ICBA, visit www.icba.org.

Bank of American Fork was established in 1913 as The People’s State Bank of American Fork. The first two decades after opening brought success for the bank and its reputation for being safe and sound was solidified. Challenges came in 1932, when the People’s State Bank of American Fork closed its doors to prevent a run on deposits. While a third of the nation’s banks did the same and never reopened, the People’s State Bank was open for business nine months later after tremendous sacrifice on the part of its management. The 1940s and ‘50s were better years for banking, and the People’s State Bank of American Fork thrived. In the 1960s the name was shortened to Bank of American Fork and proved itself a technological leader when it made a large investment in upgrading to advanced computerized systems. In the ‘80s and ‘90s, Bank of American Fork began to receive national recognition for being safe and strong. It was during this time that the bank began strategic expansion across Utah, finding communities where Bank of American Fork fit and filled needs. Today, we are proud to be a part of 13 communities, and Utah’s community bank leader.

Alpine Branch March 8, 1974 Alpine branch opened, one of the first in Utah to provide 24-hour teller services through an ATM. Alpine and American Fork were tied socially and physically and in 1963, the bank learned that 60 percent of Alpine residents already banked with Bank of American Fork. When the Alpine branch opened, its Alpine customers were pleased that they did not need to go all the way to American Fork to deposit checks or withdraw cash, especially since the new branch was the only bank in Alpine. There were only a handful of people who worked at the Alpine branch, so everyone knew each other well. They would often organize potlucks or bring a platter of something to share, which fostered good relationships among employees. Bank of American Fork started in 1913 by investing in its community. Now the bank began extending that to the community it was serving in Alpine, by loaning money to Alpine city to improve the local water system and funding other commercial loans to fix wells, open grocery stores and other family-owned and local businesses.

See the spotlights for American Fork, Alpine, Orem, Highland, Lehi, Pleasant Grove, Spanish Fork, Draper, Sandy, Murray, Riverton and Saratoga Springs! These are in order, so only the ones listed before this spotlight are active posts. If it’s listed after this branch, you’ll just have to wait to see the new spotlight each month! You can also read about the Layton branch we opened in 2012 and our mortgage office in St. George.

This series is written from experience and is part of Bank of American Fork’s management training program. The program embraces the philosophy that management is a skill-based job, and managers need to learn specific skills to be successful.

I am happy that with a title like “effective discipline,” you have made it this far into the article. Let me put the title in a clearer context: effective discipline in the corporate management sense isn’t primarily about punishment; it is about changing behavior to make employees productive.  Yes, there are times when termination is required but let’s start at the beginning.

Set expectations             
The best way to avoid discipline is to set expectations of behavior and communicate them using multiple channels.  Employees should have immediate access to their performance and managers should foster a culture that reinforces expected performance.  Consistently setting expectations helps employees know when their performance is not up to standard and makes the discipline process more manageable.  

Access to performance means that employees are empowered to check on how they are performing at any time.  For example, if John is responsible for performing task X at a 90% accuracy rate on a daily basis, but the reporting is done on a monthly basis, he won’t be able to measure and adjust his performance daily. The process is out of whack. Employees also need to know that managers are monitoring both good and bad performance. Good performance should be praised and rewarded publicly and poor performance should be dealt with privately.

Importance of dealing with performance
Organizational culture is a critical factor in associate performance.  Issues that require discipline are inevitable if the organization’s culture tolerates poor performance. Using the example above, if John is performing at 70% and this poor performance is not addressed and everyone knows, the rest of the organization’s performance will degrade.  For managers, the cost of not dealing with performance issues is very high.  The biggest cost is that managers will be seen as indecisive and the employees lose trust.

Any time you think you have a performance issue, the first stop is your human resource department.  Human Resources will keep you and the organization out of legal trouble and set up a game plan to start the process.  A good manager is consistently documenting both good and poor performance issues with his/her team.  The documentation is necessary for either a promotion or a good review, or written/verbal warning or termination.   

Progressive discipline
Progressive discipline is a process for dealing with job-related behavior that does not meet expected and communicated performance standards.  The primary purpose for progressive discipline is to provide a structured corrective action process to improve and prevent a recurrence of undesirable behavior and/or performance.  Obviously, in certain cases, the offense is serious enough that immediate termination is the appropriate solution. 

The process features increasingly formal efforts to provide constructive feedback to the employee so he or she can correct the problem. The goal of progressive discipline is to improve employee performance.  Evaluate these three criteria when determining the most effective level of disciplinary action:

1. The severity of the offense

2. The employee’s past performance and/or warning records

3. The organization’s past practice when dealing with this situation

Communicating to the employee
An organization reserves the right to determine what discipline will be imposed in each individual situation. A disciplinary procedure should include the following steps if the action does not require immediate termination:

1. The associate must know the nature of the problem or violation.

2. The employee must know the expectations and steps they must take to improve the performance or resolve the problem.

3. The employee must have a defined or ongoing expected date to improve the corrective action.

4. The employee must understand the consequences. For example, failures to address issues as outlined could result in further disciplinary action up to and including termination.

Termination
Consequences for performance that require discipline are either quick or the start of a process.  These may be illegal behavior, immoral behavior, issues that put your business’ reputation in jeopardy or issues that lead to other types of risk.  Every employee must know the behaviors or performance problems that lead to termination.  After a review of the facts and HR’s input, a manager should meet with the problematic employee to discuss termination. 

HR should conduct every termination.  During terminations be careful not to get hooked by the employee’s emotions.  Be sympathetic, but remember that the employee has violated the organization’s trust.  As a manager you need to protect the organization and those employees who are performing well.  For a termination meeting, the objectives to remember are:

• To protect the organization’s legal and moral responsibility

• To ensure the affected employee hears and understands the message, knows what to do next and is treated with dignity and respect

• To minimize the negative impact a termination can have among remaining employees

Some skills Ken has talked about are employee development, communication, coaching employees, managing change and strategic planning. What other manager skills do you want to know more about? Tell us in the comments!

Ken Burnett is vice president/director of training and business development for Bank of American Fork. He is responsible for training more than 300 employees on a variety of topics, including coaching and feedback for dozens of senior managers within the organization.

Bank of American Fork was established in 1913 as The People’s State Bank of American Fork. The first two decades after opening brought success for the bank and its reputation for being safe and sound was solidified. Challenges came in 1932, when the People’s State Bank of American Fork closed its doors to prevent a run on deposits. While a third of the nation’s banks did the same and never reopened, the People’s State Bank was open for business nine months later after tremendous sacrifice on the part of its management. The 1940s and ‘50s were better years for banking, and the People’s State Bank of American Fork thrived. In the 1960s the name was shortened to Bank of American Fork and proved itself a technological leader when it made a large investment in upgrading to advanced computerized systems. In the ‘80s and ‘90s, Bank of American Fork began to receive national recognition for being safe and strong. It was during this time that the bank began strategic expansion across Utah, finding communities where Bank of American Fork fit and filled needs. Today, we are proud to be a part of 13 communities, and Utah’s community bank leader.

Lehi Branch December 9, 1996 The Lehi branch opened and was sta­ffed with employees who lived or grew up in Lehi, and interior decorators used a pioneer theme to connect to community history. Board members were eager for new branches to be a part of the communities they served, and not just a transplant branch of an American Fork bank. Before opening the Lehi branch, Steve Swenson and other bankers that were a part of the Lehi community came to Bank of American Fork, and many customers followed. The team garnered enough business to establish a branch in Lehi, and the bank purchased a commercial lot in a shopping development on Main Street. Lehi’s population doubled between 1990 and 2000 and the branch grew to outperform both the American Fork and Alpine branches in its first year.

Don’t forget to stop by the Lehi branch on Fridays in May and grab a cookie!

See the spotlights for American Fork, Alpine, Orem, Highland, Lehi, Pleasant Grove, Spanish Fork, Draper, Sandy, Murray, Riverton and Saratoga Springs! These are in order, so only the ones listed before this spotlight are active posts. If it’s listed after this branch, you’ll just have to wait to see the new spotlight each month! You can also read about the Layton branch we opened in 2012 and our mortgage office in St. George.

Many businesses think they’re too small to participate in global markets, but the SBA can help you get started and succeed. If you own or want to start a small export business, there may be financing available to help you grow your business. Bank of American Fork is a Preferred Lender, which means faster turnaround times and local decision-making authority. We have money to lend and experienced SBA loan staff and lenders.

The SBA wants to support U.S. business production, and is offering the following loan programs to help your business:

1.       Export Express Loan Program

This program offers streamlined financing up to $500,000. It is the simplest export loan product offered by the SBA and allows participating lenders to use their own forms and procedures. The SBA determines eligibility and provides a loan approval in 36 hours or less. Export Express can be a term loan or a revolving line of credit.

Use of proceeds:

• Participate in a foreign trade show

• Support standby letters of credit

• Translate product literature for use in foreign markets

• Finance specific export orders

• Expand production facilities

• Purchase equipment inventory or real estate

Bank of American Fork has Preferred Lender status for this type of loan, so we can provide approval in-house, speeding up the loan process.

2.       Export Working Capital Program

This program offers financing up to $5 million as a credit enhancement. This program is delivered through SBA Senior International Credit Officers located in U.S. Export Assistance Centers. The Export Working Capital (EWCP) loan provides advances for up to $5 million to fund export transactions from purchase order to collections. This loan has a low guaranty fee and quick processing time.

Use of Proceeds

• Finance suppliers, inventory, WIP, or production of export goods or services

• Working capital to support foreign accounts receivable during long payment cycles

• Finance stand-by letters of credit used as bid or performance bonds or as down payment guarantees

This loan must be submitted to the Export Assistance Center in Denver, so the time to complete it is longer.

3.       International Trade Loan Program

This program offers loan financing for fixed assets and working capital to businesses that plan to start or continue exporting, or that have been adversely affected by competition from imports.

Use of proceeds:

• Acquire, construct, renovate, modernize, improve or expand facilities or equipment to be used in the United States to produce goods or service involved in international trade

• Develop and penetrate foreign markets

• Refinance an existing loan

Bank of American Fork will likely operate with Preferred Lender status on these types of loans, so they can be approved in-house.

Bank of American Fork is committed to offering these big-city products with our small-town service. If you are thinking about starting or growing your export business, or have questions, don’t hesitate to contact Richard Gray, senior vice president of commercial lending at Bank of American Fork, at richard.gray@bankaf.com or 801-642-3871.

Guest post by Richard Gray, Senior Vice President, Commercial Lending, Bank of American Fork

With the economy leveling out in slow, steady growth, many businesses are thinking about how to grow. After a few years of focus on the basics to keep strong enough to weather the economic storms, business owners are ready to move forward at a good time for expansion, when the market isn’t yet up to pre-recession levels.

However, many businesses don’t have the capital they need for growth, which, combined with low-interest rates, makes it a good time to consider a small business loan. I would recommend reviewing the following to prepare for financing.

Get to know your loan officer. It’s important to develop a relationship with your lender and the loan officer you work with. When your lender knows who you are, they can help you find the financing option that fits your business the best. Find a lender that cares about your business and wants to know more than just the numbers.

Prepare or update your business plan. Lenders want to be sure you have a plan for your business’ success, and they want to know what it is. Update your company’s goals and financial projections and your lender will have something to use when they consider how financing will help you in the long- and short-term future. Your business plan should address the best- and worst- case scenarios. You should include the following elements outlined by the U.S. Small Business Administration:

• Begin with a statement of purpose. You should be able to explain your business in 25 words or less.

• Illustrate how your business will work and why it will be successful. List the owners.

• Describe the company’s products or services, the customers, the market and the competition. List the managers and their credentials.

• Supply three years of projected financial statements. Include income, loss and cash-flow projections.

• Provide supporting documents, such as references from creditors and potential clients and suppliers, and evidence of insurance.

Evaluate your financial fitness. This is an area where your loan officer will be helpful to you. You may not even know what it means to be in good financial shape for a loan. Every business and every borrower has a different situation, so there isn’t a set, simple checklist. Some lenders will look at length of time in business or net worth, but you can find lenders, especially at community banks, that will look at your business beyond the numbers. It will come down to whether or not the applicant is likely to and capable of replaying the loan. Some questions to consider:

• Does the business make conservative or risky financial decisions?

• Is the business owner conservative with personal finance?

• Will the business owner sign a personal guarantee?

• Is there a strong base of capital available for collateral for the loan?

• What is the business’ margin of error for the expected growth?

• What is the back-up plan in case of a situation that threatens the business’ financial structure?

• Have you developed at least two ways to repay the loan?

Know the types of financing available. There are different types of loans commonly used by small businesses. A few months ago, I talked about the benefits of buying your office space, and mentioned some of the types of financing available.

SBA-guaranteed loans are specifically designed to help companies grow and prosper. They are guaranteed by the SBA, meaning the business is more likely to be approved for attractive rates and financing, since the risk is shared between the lender and the SBA. They are less capital-intensive, usually requiring just 10 to 20 percent down, versus 30 to 35 percent down for conventional loans. If you’re worried that your business may be too big to qualify for an SBA loan, know that a small business is defined as having less than 500 employees and less than $7.5 million in annual revenue, depending on the industry. Ninety-five percent of Utah companies are eligible. Look for an SBA Preferred Lender, since these types of lenders can approve your loan faster than non-preferred lenders.

Conventional loans require a larger down payment than an SBA loan, but with historically-low interest rates and property values, now is a good time to consider expanding. A business line of credit is good for short-term cash needs like building up inventory and funding accounts receivable. Business term loans allow a certain dollar amount to be repaid in installments over three or more years, and are commonly used for purchasing equipment, vehicles, furniture, renovations, expansion or commercial mortgages.

Personal lines of credit, like credit cards or home equity lines of credit, are convenient, but can be risky. Credit cards have high interest rates and can negatively impact personal credit. Home equity loans use the borrower’s home as collateral. However, this model allows the company to utilize its capital to grow the business and gives the owners an opportunity to increase and diversify their personal wealth with commercial real estate.

Small business loans are the key to keep communities growing and people working. If you feel overwhelmed by the loan process, use this guide to prepare. Community banks and other lenders want to lend to Utah’s businesses. Loan officers are there to help you figure it all out and grow your business.

This article first appeared in The Enterprise.

Richard Gray is senior vice president of commercial lending and SBA lending at Bank of American Fork, Utah’s community bank leader, an Equal Housing Lender and Member FDIC. Richard also manages the bank’s Murray branch, and he has assisted local small businesses in obtaining SBA funding for more than 25 years. He serves on the board of directors for nonprofit Kostopolus Dream Foundation and was the chairman for nonprofit Utah Microenterprise Loan Fund, Salt Lake City.