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SPRING CREEK MORTGAGE INC. formed as new division of WILLIAMSVILLE  STATE BANK AND TRUST.

                          The new Spring Creek logo as designed by Scott Richardson

 Spokesman for the Board of Directors, Paul Presney Sr. announced the formation of Spring Creek Mortgage, Inc. as a new division of Williamsville State Bank and Trust . “Spring Creek Mortgage was formed to help make home ownership possible for more individuals. It’s business will be to originate both conforming and non conforming residential mortgage loans, secured by one to four family residences for various lenders.”

 Spring Creek Mortgage specializes in finding ways to say “Yes!” when other lenders and mortgage originators are still gathering application information. Quick turn around technology and excellent knowledge of the lending market will set Spring Creek apart from the standard originators.

 Whether you are a new home buyer or an existing homeowner, a credit superstar or credit challenged, Spring Creek Mortgage has hundreds of home loan options. “To get a FREE no obligation, loan consultation from Spring Creek Mortgage CALL NOW! (217)698-4588.”

**Employment Opportunities**

We are expanding and are looking for

 individuals to grow with us!

Variety of positions available:

Commercial Loan Officer

Customer Service Representatives

We are seeking experienced, outgoing, highly motivated team members that are customer-oriented, have excellent sales and business development skills and the ability to multi-task. 

Generous benefits and competitive salary commensurate with experience.

Send your resume to:

Williamsville State Bank & Trust

Human Resources

3341 Old Jacksonville Road

Springfield, IL  62711

                         From Radio To Television

WSB&T Can Help You Advertise Your Business On Air!

Williamsville State Bank and Trust's media specialist, Paul Presney Jr., is no stranger to the video and television ad process. Way back (...and we are talking really way back...) in his grade school days, Paul was selected for an experimental seminar class where students were given the chance to shoot, edit and present 8 millimeter films. Keep in mind that this was way before the advent of digital film and clips had to be cut and sliced manually by hand to tell a story. Ever since, Paul has always looked at telling stories through a camera lens. In high school, and even into his early business career, Paul made it a habit to be involved as talent in various educational and instructional videos produced by state agencies or the local media department of the SIU School of Medicine. It taught him how to be comfortable in and around a "shoot" and what went into filming and the production of short subject educational films.

"Every film and every stage play is made up of memorable images or pictures which help convey the story or an idea. How you frame and set up the picture, whether it is on film or on stage or in print, encourages the viewer to look at the image in a certain way...that's why some ads are good and some don't hit the mark."

About 4 years ago, WSB&T asked Paul to take his theater direction skills to a new level and oversee the production of a series of ads to launch the WSB&T on television. For the last 3 years, every Williamsville State Bank radio, television and graphic image print ad has been Paul's creation. They are all created by Paul in the Bank's studio located in the Sherman branch.

"A 30 TV second spot can easily involve 2 to 3 days of work. If you are animating or doing lots of digital work or effects, it may take longer."

This fall, Paul was asked to create the commercials for the Springfield Ballet Company's Nutcracker. While the raw footage had already been shot for the ballet company by Umedia during the 2004 production of Nutcracker at Sangamon Auditorium, the ballet company was looking for 30 seconds that would highlight the beauty and energy of the production and sell tickets! After over 18 hours on the computer selecting, adjusting and editing, the commercials were complete. One commercial was designed for the TV 20 market, another contained minor variations to qualify it to air on WSEC, our local PBS station.

Williamsville State Bank and Trust's expertise and "know how" are also available to help bank customers and account holders promote their business over the air waves or in print media... just ask! We'd be happy to help. Just call Paul at (217) 525-0016.

Keep in mind good TV time is expensive and good marketing requires repetition of ads. Here are a few other thoughts from Paul...

"Good advertising means knowing what message you want to convey and then picking the right media to reach that target. Sometimes that's television...sometimes that another medium. Whatever the media form, it takes thought, creativity and a keen critical eye to do it right. Good advertising is a lot more than simply turning on a camera and hoping you've caught the right image...we can help you."

Making Online Purchases Safer With SecureCode

Williamsville State Bank & Trust and MasterCard have teamed together to bring you a safer method for making purchases online.  With the launch of this new level of security called SecureCode, you can be assured that your safety is our priority.

What is SecureCode?  When making a purchase at a registered website with your Williamsville State Bank & Trust MasterMoney debit card, a window will pop up asking for your personalized alphanumeric SecureCode, just like using a PIN at the ATM.  How do you register for your SecureCode?  Simply click on the icon below to take you directly to MasterCard's secure website for instructions.

How will you know that the pop-up box is secure?  When the box pops up asking for your SecureCode, the Williamsville State Bank & Trust logo will be at the top along with a personalized greeting that you set.  If either of these is missing from the box, do not proceed and call the bank.

Want more information?  Feel free to call Alicia Boesdorfer at (217) 698-9728.  Also, frequently asked questions, lists of participating merchants, and even a demo are all available on MasterCard's website at www.mastercard.com/securecode.

Keep in mind that Williamsville State Bank & Trust will never contact you asking for your SecureCode or any other personal information.  If you suspect your information may have been compromised, call the bank immediately.

1031 Transactions  

IN A VERY SMALL NUTSHELL

 copyright 2005, by Paul Presney Jr.

This article is intended for general information and is not intended to serve as a basis for decision making relative to 1031 transactions. You should consult your attorney or your CPA or other tax professional prior to attempting to undertake a 1031 transaction.

1031 Exchange is a process by which capital gains from the sale of income producing property are deferred. When income producing property is sold, the basis for the sold property (called the Relinquished Property) is made the basis for the Replacement Property which is acquired in the exchange.

The property that is relinquished must be replaced with a like kind property. The IRS regulations and code basically divide properties into classes. Generally speaking, income producing real estate which is relinquished is replaced with other income producing real estate as opposed to stocks, bonds or personal property interests. Like kind does not mean that an apartment building must be replaced with an apartment building. You can sell an apartment building and replace it with a farm or an industrial site. The key for real estate is that it must be income producing.

Like kind exchanges are not applicable to personal residences. Be careful, like kind exchanges are not intended to acquire Florida vacation homes. There are strict guidelines and rules as to what qualifies for a like kind exchange. Generally speaking, if the property is income producing two years before the transaction, you’re headed in the right direction. After the transaction, it should continue to produce income or be held in that manner for at least a two year period. Appreciate the nature and duration of use of the property and any changes in use may affect whether or not the exchange is recognized.

The government permits the like kind exchange on the theory that it doesn't matter what your income producing property is. If you have a piece of income producing property, the government will simply allow you to substitute a different piece of income producing property for it, as long as you keep the manner of ownership and the basis the same. The logic here is the government doesn't care if you have a farm or an apartment building as long as the tax that they are entitled to is still on the books and the records. Ultimately, when you sell that property at the end of time, they will collect their tax. The benefit to the individual, which is simple tax logic, is that if you can't avoid the tax, you delay payment of the tax and that allows the taxpayer to swap in and out properties repeatedly so that he has the effect of a change of ownership without the effect of a tax hit for capital gains. The regulations address how frequently you may “1031” a given piece of property.

A little bit of history of the 1031. The 1031 exchange has been around since the 1930s. In its simplest scenario, imagine two farmers sitting across the kitchen table in rural Illinois and they decide to swap quarter sections of farm ground and exchange deeds. That way, neither of them have to cross a river or a road to get to the rest of the farm and the value of ground exchanged is basically determined by them to be the same. That's the original 1031 exchange.

Now, what happens if one of the farmers wants to swap his ground, but the other farmer doesn't have ground that he wants? In the old days, the other farmer without any ground to exchange might be required to go out and buy the replacement property and take title so he could convey it simultaneously with the receipt of other property taken in trade. The secret in these older delayed exchanges was that the money did not touch the hands of the party seeking a 1031 qualification. The party seeking a 1031 qualification generally takes the role of the seller and is called the Exchanger. It is possible that the buyer may also be structuring a 1031 too, but for our purposes we’ll keep our examples simple. Farmer A wants to 1031 his ground or trade it with Farmer B. In this scenario, Farmer A is the exchanger. In the old days, Farmer B would either buy replacement ground to trade before the exchange occurred or, alternatively as trades became more commonplace, purchase it after the fact and then convey it to Farmer A in consideration for the ground that Farmer A had relinquished. When the exchange or transfer of property from A to B and B to A did not occur simultaneously it was called a delayed exchange, sometimes also referred to as a Starker exchange. Starker is the name of o famous IRS case.

The Starker case was a case where the IRS challenged a delayed exchange on the basis it wasn't like the original farmers sitting down, swapping property at the kitchen table. The IRS lost that case for all practical purposes and delayed exchanges starting to come into vogue. You can see under the exchange scenario that we've set out above, there are some risks for Farmer B. If he goes out and buys replacement property and Farmer A doesn't swap as he's promised, Farmer B could stuck with unwanted property. The IRS realized there were some problems in the logistics of delayed exchanges and created a safe harbor process in its regulations whereby a Qualified Intermediary or escrow agent could hold what would otherwise be the proceeds of sale. From this money that would otherwise be proceeds, the replacement property would be acquired. In this fashion, we have preserved some of the fictions that the IRS likes to see. The Qualified Intermediary holds the money so that our relinquishing farmer, Farmer A, doesn't touch the cash that would otherwise be proceeds. Under the safe harbor process, Farmer B generally signs off and it's acknowledged by Farmer B that the proceeds or the money he is giving will be used to purchase replacement property for Farmer A. This essentially completes the fiction that Farmer B is involved in a trade, when all he really does is sign a piece of paper and is essentially absolved of all liability and headache. At first, when this process developed, it was common for the Qualified Intermediary to come into ownership.

Appreciate there were some problems with commercial property that developed in the '80s and '90s — environmental clean up, gas stations, etc., and Qualified Intermediaries didn't want to end up actually owning the property because under other government laws, if you're the owner of a contaminated site, you've got to pay for clean up. In common 1031s today, the Qualified Intermediary rarely acquires title to the property. The Intermediary assigns contract rights, which is a permitted fiction by the IRS. Since only contract rights are assigned, the Intermediary is absolved from liability for clean up, for the most part.

The term "Qualified Intermediary" generally refers to a private entity that is serving as the Intermediary in a 1031 transaction, banks are sometimes referred to as qualified escrow holders or some other synonymous term that means the same as Qualified Intermediary.

The Qualified Intermediary cannot be a disqualified person. He, she or it has to be a neutral third party not related to the transaction and a number of technical rules may disqualify an entity from serving as an Intermediary.

The IRS has also imposed limitations on how long an exchange can be delayed for because they don't want follow it through multiple tax years. The rule is 45 days to identify the replacement property after control is relinquished for the relinquished property. The exchanger then has 180 days from the date of relinquishment of control of the relinquished property to complete purchase of the replacement property. The 45 day period and 180 day period overlap. More detailed regulations here!

The IRS also wants the exchanger to tell or notice the disinterested third party, the Qualified Intermediary, what property he's identified in that period. The IRS has permitted identification to come in by fax machine or any other noticed or timed receipt. If you do not complete your identification within the required time you’re out of luck. No excuses, no bonus days for holidays or other problems. Generally, an exchanger can identify up to three properties for replacement. He does not have to purchase all three. He can purchase just one. If he identifies more than three, there are other requirements that come into play as to what he must purchase.

Some problems with 1031s. Related parties may not be able to exchange…lots of detailed rules. Not all 1031s are what I refer to as "perfect 1031s", totally free of capital gains issues. There are times when the property identified for replacement doesn't cost as much as the property relinquished. The leftover cash is termed boot and that cash is subject to capital gains calculations under IRS rules and regulations. I think of the term "boot" as pirate booty. I have no other idea where the term came from. But "boot" rhymes with "loot" and if you get loot, that part of your 1031 transaction gets the boot.

Not always does boot take the form of leftover cash. The IRS permits certain transactional expenses to be paid from what would otherwise be the proceeds of relinquishment of property without tax consequence. While it will allow some expenses, it reserves the right to question others. There are also areas where advising experts may disagree. Reaching into what would otherwise be the proceeds of sale to pay your mortgage may create a boot issue. Why? Because in the simple scenario of the farmers at the table, you're sticking your hand into the pot of cash and paying off the mortgage before the money gets to the Qualified Intermediary. The same issue may be applicable to the proration of real estate taxes, as well. These are areas for accountants and attorneys, but you need to see the tip of the iceberg. A number of individuals and professionals hold or believe that if replacement property has a higher value and if you have more equity in the replacement property and if your mortgage on the replacement property exceeds the mortgage on the relinquished property, then you are okay to dip your hand into the till and pay off the relinquished property mortgage at the 1031 transaction. I am more conservative. The IRS rules and regulations don't address this specifically. The regulation examples that exist relative to mortgages are where a mortgage on a relinquished property is assumed by the replacement buyer and where Farmer A then purchases a property and assumes the mortgage on the replacement property. He's gotten rid of his old mortgage because Farmer B assumed it and he (Farmer A) has taken a new mortgage on the replacement property and assumed it. The IRS examples deal with assumed mortgages, not paid off mortgages, and well versed experts and books indicate this distinction may be an issue. Clearly, you need to consult your accountant or attorney for advice. Have them review applicable regulations and rulings before you finalize the deal, if possible.

Let's also talk about release and control of funds while in the escrow. Assume our exchanger has a little leftover cash in their 1031 exchange escrow. They've already purchased the only property they want and they've completed the purchase of the property they want 30 days after they relinquish control of the relinquished property. They ask Qualified Intermediary to return the rest of their cash. They're going to pay the capital gains on the returned cash. No problem? Wrong. The safe harbor provisions of IRS require that except for completion of 1031 exchanges themselves, you can't release the 1031 money during that 45 day period or when there are outstanding replacement properties to be purchased. The issue here is control. If the exchanger has the ability to touch and reach his funds at will, he's essentially dipping his hand into the till and it's not an exchange and you've broken the IRS fiction. Yes you’ll get your excess money back, as boot, but it’s a timing issue as to when it can come back. To take it back early may disqualify your 1031.

Reverse exchanges and construction exchanges. What if somebody wants to build replacement property. Will a 1031 work? Yes and no. Appreciate that building materials are not real property when you purchase them. Therefore, using 1031 funds to buy building materials messes up the 1031. The IRS now recognizes through safe harbor provisions something that is known as a reverse exchange. Appreciate the IRS rarely does anything really new, it just twists its permitted fictions so we still look like those two farmers sitting across the kitchen table. In a reverse 1031 exchange, the exchanger finds the replacement property first and has a Qualified Accommodation Titleholder purchase the property and hold it as if it were parked with a neutral third party. While it is parked, the property can be improved, renovated, changed. The exchanger then determines which property he or she wants to sell, enters into a 1031 agreement and the replacement property provider turns out to be the Qualified Accommodation Titleholder, who then transfers title to the exchanger. In its simplest scenario, you go out and find a friend to buy the property for you and when you're ready to do a 1031, the friend sells it to you. Now, the word "friend" is a misnomer because there are qualifications and disqualifications as to who the Qualified Accommodation Titleholder can be, but you get the gist of the idea. A reverse 1031 exchange is a normal 1031, except you've got a friendly agent holding the property who won't sell it to anyone but you at the time you're ready to do the 1031. Appreciate the Qualified Accommodation Titleholder must come into actual title of the property and have all indices of ownership. No contract assignment works here. The Qualified Accommodation Titleholder is potentially liable, like any owner, for real estate taxes, environmental cleanup, liability issues if there is a slip and fall on the property, etc.

I hope this gives you an overview of the 1031 process. It is only that, a quick overview. You now have enough knowledge to be totally dangerous, but, hopefully, you have some understanding of the history, process and basic logic. The logic is to emulate the two farmers at the table in the 1930s as closely as possible under permitted fictions and not to exchange or touch the cash in an unpermitted way. Legal counsel or an accountant should be retained to best advise you. Working for a Qualified Intermediary or 1031 agent, I get loads of questions because everybody thinks a 1031 is now easy to do. A 1031 is not necessarily easy to do. I view it as a noose in which the exchanger places his neck and if he's not careful, he can hang himself. The Intermediary should not give advice…that’s where the Exchanger’s attorney or accountant comes in. We strongly recommend you retain a professional tax adviser, such as a qualified tax attorney or accountant, simply because there are usually myriads of little questions and issues which do arise …all which can effect 1031 status.

Williamsville State Bank and Trust, through its trust department, is available to serve in a qualified intermediary capacity. While we cannot provide tax advice, we are prepared to assist you professional tax advisor based on experience in our capacity as an escrow intermediary. Feel free to contact Paul Presney Jr. through our trust department, if you would like more information.

Just phone (217) 698-6355

It's time to sign up for Internet Banking!

Make us as close as your computer...and it only takes a moment!

The question: OK…I’m really not a computer wiz. How easy is it to sign up for Internet Banking?
The answer: It’s really easy!

If you’ve ever loaded a program onto a computer this will seem like a piece of cake. If you’re new to computers it’s easier than opening your regular bank account. Let me tell you what you’ll see when you click Internet Banking…then give it a try yourself! First, go to the Internet Banking section of our site. You can get there by just clicking Internet Banking at the bottom of this web page or on the sidebar. You must have an existing account at Williamsville State Bank and Trust to begin the process. (If you don’t have an existing account, you will need to open an account in person at one of our facilities.)

As you first enter you will see a box for an Access ID and Passcode. Underneath this is a phrase that says Sign Up Today and Apply Now. Click Apply Now. You will get an agreement form to accept. This agreement contains the terms of your Internet Banking arrangement. It’s several pages long and resembles other web or computer license agreements. Review the agreement to your satisfaction. You will need to click acceptance of the agreement to set up the Internet access for your accounts. Next up is a short application form.

On the first page you’ll type in your name and other identification information. You’ll need to complete asterisk marked items. At the bottom of the first page it will ask for account info on the accounts you want to have access to online. So far so easy …right?! There are even instructions right on the form! You can even nickname your accounts (like “vacation”) for easy reference.

On the second page you will choose an Access ID and a Passcode or password. It will also ask a verification question so we can identify you if a Passcode is lost. The third page will show the information you typed on page one and ask you to verify that it’s correct. It will then ask you to submit. The fourth page confirms your submittal.

Regular Internet Banking is a free service to our customers. You can also sign up for Bill Pay, which allows you to pay bills automatically on line. To sign up for Bill Pay, just click or check the box for the Bill Pay option in the application form. There is a small monthly charge for Bill Pay, as the service is handled through our Internet Banking provider and the bank is billed for the service. That monthly fee will be automatically deducted from your account.  However, Williamsville State Bank & Trust is offering the first three months of Bill Pay for free!  That's right, sign up today and try Bill Pay for 90 days free of charge.

Bill Pay saves you time and postage and can automatically pay certain bills as you schedule and instruct. We think you’ll find it is very convenient and takes the hassle out of bill paying! Any questions? We’ll be happy to answer them…just give Jessica Bice or Rick Edwards a call at 566-3387.

To sign up just click here.

Check 21 and Check Imaging

Since September 2004, Williamsville State Bank and Trust has moved to check imaging in order to help expedite check processing under the new Check 21 legislation. Under old banking rules, banks had to receive the actual check paper back in order to complete the checking process and permit payment. The crisis on September 11, 2001 brought about the change as airlines were grounded and checks could not be easily transported from one bank to another. Under the new legislation, banks rely on the images of checks rather than the actual paper.

One of the benefits of the new check imaging technology is the ability to have WSB&T prepare CD image discs of your banking transactions. There is a small charge to help us cover time and expense in creating the disc. Imaging can be done on a time frame convenient for your personal and business needs. We think this service will probably be most helpful to our business customers because it provides a complete transactional record, with check fronts and backs as well as including all deposit and other transactional information. If you’re interested in prepared CD image discs of your banking transactions just give Rick Edwards a call at 566-3387. Rick will be glad to help!

Access your Mastercard Account over the Internet

Now you can access your Williamsville State Bank and Trust MasterCard account over the internet!  You can view account history, pending transactions, and payment activity including any payments due and due dates.  Williamsville State Bank and Trust has partnered with American Monetary Services to offer you this valuable service free of charge.  Signing up is a breeze too.  Simply type in www.monetaryservices.com into your internet address bar and follow the secure sign-in links.  You’ll be taken to a page that will allow you to create a user id and password.  And because security is so important, you’ll be asked to verify certain information to insure your account information is kept confidential.  After you have signed up for this service, you will continue to use this same link to access your account over the internet.

Online access to your Williamsville State Bank and Trust MasterCard – Another service we are pleased to offer our valuable customers!