Condominium Association Banking

Operating Accounts and Deposit Processing

Not-For-Profit Account

At First Bank & Trust we recognize our Condominium Associations benefit from the ability to handle their financial transactions through our Not-For-Profit Account. This account is FREE-it is not subject to monthly maintenance or transaction fees and the first order up to 120 personal size checks is free. That means you may have an unlimited number of deposits or write an unlimited number of checks without having to worry about the impact on your bottom line. The few exceptions that are still subject to the bank's standard fees include overdrafts, wire transfers, stop payments, and advanced banking products such as Lock-Box Service and Merchant Capture.

Commercial Checking Account

For larger Condominium Associations, using our Cash Management products, the bank's Commercial Checking Account is the perfect fit. Balances held in this account receive an earnings credit based on our Earning Credit Rate. This earnings credit may offset any service charge that may be incured.

Cash Management Services

Lock-Box Services

First Bank & Trust offers lock-box services for both Property Management Companies and Self-Managed Associations. At First Bank & Trust we understand the unique needs of our customers and offer lock-box services specifically customized to serve your needs. With this service, unit owners will remit all payments to a PO Box administered by the bank. This process allows for the fastest possible availability of funds and eliminates deposit processing requirements otherwise handled by association board members or management company staff.

Remote Deposit Capture

One of First Bank & Trust’s newest offerings is Remote Deposit Capture. We provide our customers with a check scanner which enables deposits to be made electronically from any location, eliminating unnecessary trips to the bank and speeding up the crediting of funds. An electronic copy of deposit items is retained by the customer.

ACH Services

Through the use of First Bank & Trust's Business Internet Banking Condominium Associations can allow unit owners to pay their monthly assessments through the use of ACH direct debit services regardless of the location of the unit owner's financial institution. This process eliminates the need for the unit owner to write monthly checks and ensures timely payment. The association or management company no longer must physically handle these payments.

Association Reserve Accounts

Money Market Accounts

First Bank & Trust offers a variety of flexible account options to help associations put their excess deposit balances to work. Our standard Money Market Accounts offer competitive interest rates and terms. Interest Rates depend on the average balance maintained in the account, offering higher rates to Associations with higher balances.

Certificates of Deposit (CD)

In addition to the value found in our Money Market accounts we offer a large variety of Certificates of Deposit which offer the opportunity to obtain even higher rates for predetermined periods as little as 30 days or as long as 5 years to match with planned investment needs. All CD and Money Market accounts can be opened with as little as $1,000.

Association Loans

Lending Background

First Bank & Trust has been offering Association loans since opening our doors in 1995. Our vast experience helps us provide a variety of loan options designed to fit the unique needs of each association and timely loan approval and processing upon the receipt of a completed application.

Loan Types

In most cases large capital improvement projects are accompanied by the dreaded Special Assessment! Whether it is regular building maintenance such as tuckpointing or replacing the roof or windows, or a building upgrade or renovation such as adding new decks or porches, the association can take out a customized loan to complete the project. The association can move forward in a timely manner and offer flexibility to their unit owners by allowing unit owners to pay over time instead of having to come up with the special assessment in one lump sum. The commercial lenders at First Bank & Trust will meet with association board members to determine the suite of loan products that best meet the needs of the association, and upon acceptance of the corresponding application your loan will be approved and funded in a timely and professional manner. The collateral for such facilities is generally an assignment of the association's assessments and personal recourse is not normally required.

Loan Fees

In order to discourage associations from borrowing small dollar amounts some banks may charge large up front fees on loans. At First Bank & Trust our fees are consistently lower than the competition.

Loan Application Material

In order to apply for an association loan you will need to submit the following information:

2 years of tax returns.
Interim association financial statements if the application date is greater than six months from the previous fiscal year end.
Budget for the upcoming fiscal year including the expense related to the expected loan payment to show adequate coverage based on projected assessment income .
Declaration of Condominium Association.
Articles of Organization.
Assessment Roll complete with Owners Names and Addresses.
Two months of deposit account statements (non-customers).
Subsequent to receiving the application and prior to loan funding we may also require:
Contract for Improvements.
Copy of minutes approving the authority to obtain a loan on behalf of the association and any special assessments needed to cover the expected loan payments.
Names of signers, titles, copies of drivers' licenses & social security numbers.

Other Financing Options

In addition to providing financing to the association, the bank offers a variety of options for unit owners to finance their special assessment, including cash-out first mortgage refinancing, and second mortgage home equity lines of credit. All products offer competitive rates and terms.

Internet Banking

To accompany the combination of services listed above, the bank offers three levels of Internet Banking services. Most associations will benefit from the services offered in the free FirstBank Express. For associations interested in a greater range of online banking options we have two additional packages for them to choose from.

For More Information

For more information about any of the products and services listed above please contact Dan Burke, Michael Corr, Joan Kelly or Randy Usen at (847) 733-7400. The fax number is (847) 733-7485.